The Economy

Steve Brine Excerpts

Wednesday 26th November 2014 Commons Chamber

[Steve Brine (Winchester) (Con)]

It is a pleasure to follow the hon. Member for East Antrim (Sammy Wilson), who spoke passionately, as always.

I do not pretend to be one of the great economists of the House, but in my four and a half years as a constituency Member of Parliament, I have seen at first hand what a healing economy means in practice on the ground. Interestingly, the motion is all but silent on jobs, as other Members have mentioned. The shadow Chief Secretary referenced the 2010 autumn statement in his opening remarks. Strangely, he did not touch on the response that was given by the then shadow Chancellor, the right hon. Member for Kingston upon Hull West and Hessle (Alan Johnson), which predicted a “jobless recovery” in this country.

My constituency of Winchester has seen a 50% drop in the youth claimant count in the last 12 months and an overall fall of 64% in the number of people looking for work since April 2010, so when the Chancellor talks about hard-working families and people who do the right thing—the Prime Minister repeated those words today—I firmly recognise my constituents in what he says. Yes, Winchester is a wealthy place in relative terms: house prices are well above the national average and we have some high earners working in law, medicine and financial services. That is fuelled partly by our proximity to London and the City. However, there is another Winchester where the average wage is £26,000 per year and where every penny counts.

My constituents are not fooled by political rhetoric. They know what they have seen with their own eyes over recent years. They know that being in work, not so that they can enjoy an extravagant lifestyle where it is a disappointment if they do not ski at least twice a year, but so that they can live their lives and provide for their families, is what actually matters.

The fact that the Government have made it possible for Eastleigh borough council, Winchester city council and Hampshire county council, working together, to freeze council tax over the five-year period is a big deal to my constituents. It has saved about £1,000 for a family living in an average band D property in my constituency. The fact that the Government have frozen fuel duty has not gone unnoticed, either. That move has hit the bottom line of family finances, in a positive way, to the tune of some £570 for those who fill up an average family car once a week. My constituents also know what security in retirement means. Again, it does not mean having the means to spend half the year cruising the world, perhaps from nearby Southampton; it means being able to enjoy good health and to help their grandchildren with their swimming or ballet classes on a Saturday morning. They know that it is those things that really matter.

The working families I represent remember the last Government. They see that it is a Conservative Prime Minister, a Conservative Chancellor and a coalition Government who have raised the personal income tax allowance to £10,000. In my constituency, that means that about 40,000 people on lower and middle incomes are keeping more of their money in their pocket each month. As we know, a typical taxpayer saves about £800 a year under that policy.

The decent retired folk I represent in places such as Chandler’s Ford remember the last Government, with the 75p increase in pensions and the £5 billion a year raid on their pension pots, which was one of their first acts in office. More than ever, those constituents are not tricked by the sleight of hand of politicians in Westminster. They have seen this Government introduce the triple lock pension guarantee, they have seen the largest ever rise in the state pension and they have seen that those important universal pensioner benefits have been protected throughout the lifetime of the Parliament, exactly as we promised.

I spent a year working at the Department for Work and Pensions with my right hon. Friend the Secretary of State for Work and Pensions and our superb Lib Dem Pensions Minister. I know, as do the people I represent, that this is a Government of work and pensions. That is very important. The employment figures that I read out earlier represent real people’s lives. The youth claimant count is especially pleasing because, as well as representing many people with families who are at the same age and stage in life as me, I represent many young people. There is a thriving university in my constituency and there are thousands of young people who need a bit of help.

The “dinkys”—dual income, no kids yet—are benefiting big-time from a growing economy that is creating jobs for them to find and settle into. They have the most to lose if this country goes backwards again next year. They have aspirations, such as owning their own home, driving a nice car and being able to afford a season ticket down at Southampton—although that would not be my choice—and I do not resent them for that. I do not scoff or sneer at their ambition just because that is not what everyone can afford.

Those people, whom I represent, are well educated, global in their outlook and highly mobile. They love the fact that Winchester is now the self-employment capital of England, according to a recent study. It is a vibrant place, where start-ups are at a record high. Centres such as Basepoint in Winnall, which I opened early in my time as an MP, are full of new businesses that are bursting with energy. People commute to London when they have to, but they recognise that the city council has an ambition to reduce outward migration each day for work by keeping big companies, such as Denplan, in the city. They do not dismiss out of hand the redevelopment of Station approach in Winchester because they know that it will provide new commercial space so that employers can come to the city and provide new jobs.

[Richard Graham]

Does my hon. Friend agree, as a fellow cathedral city MP, that there is a huge amount that can be done on the ground to help the growth in his city? He has done a lot to make the cathedral city of Winchester come alive with markets and skating rinks around the cathedral. Similarly, there were 200,000 people at Gloucester Quays last weekend for the Victorian market. Those are all ways in which growth can appear in our constituencies, but they are not recognised by speakers such as the right hon. Member for Oldham West and Royton (Mr Meacher).

[Steve Brine]

Absolutely. We have such a positive go-ahead outlook in the Christmas city, which is how Winchester has branded itself. Judging by the number of people skating and shopping at the Christmas market, it is the Christmas city. I urge Members to come.

We might have had some fun with the Opposition motion, but I applaud them for putting the economy at the head of an Opposition day. I would argue that every Opposition day that they have called during this Parliament has been about the economy. In my constituency, Help to Buy has helped 65 families to buy a home and get themselves on the housing ladder, which is fantastic. School places were the biggest issue in my constituency when I became the Member of Parliament. Some £10.2 million of investment later, we have Hampshire’s first all-through school and new primary places. The local NHS in my constituency has an investment of £25 million coming down the line, which will bring world-class, 24-hour consultant cover for my constituents.

None of that, as the Prime Minister said today at Prime Minister’s Question Time, would be possible without a growing economy. That is what is at stake in our country next year. There is a pledge of much more to come because we will further raise the personal income tax allowance and change the 40p tax threshold if we are re-elected next year. Finally, Bill Clinton has been mentioned once today and here is something else that he said. When he was seeking re-election, he said, “What is our opponents’ case against us? It is that we’ve only cleared up half the mess they left behind.” We know how he felt.

Oral Answers to Questions

Steve Brine Excerpts

Tuesday 2nd September 2014 Commons Chamber

[Mr Osborne]

Interestingly, a lot of Labour MPs have regularly asked about long-term youth unemployment during Treasury questions over the past couple of years. I bring that up because the hon. Lady asks about this, but long-term youth unemployment is now lower than it was when this Government came to office. We heard a lot of complaints about long-term youth unemployment over the past two years, so let us have some Labour Members congratulating the Government now.

[Steve Brine (Winchester) (Con)]

7. What measures he has introduced to reduce the level of tax paid by households.

[The Chief Secretary to the Treasury (Danny Alexander)]

The Government have done a vast amount to reduce the tax burden on working people. By the end of this Parliament, without the Government’s changes to the tax system, 3.2 million low-paid individuals whom we have lifted out of income tax would still have been paying income tax, it would have cost the typical motorist £10 more to fill up their petrol tank following the rise that the previous Government planned would take place yesterday, and the council tax bill for a family in a band D property could have been up to £1,100 more. This is all part of our long-term plan to build a stronger economy in a fairer society.

[Steve Brine]

Around 40,000 people in my constituency will benefit from the Government’s decision to raise the tax limit. That helps those on low and middle incomes to keep more of the money they earn in their pocket each month, which shows the Government’s good values in action. Will my right hon. Friend confirm how much more someone in my constituency on the minimum wage will save as a result of our actions?

[Danny Alexander]

My hon. Friend is absolutely right to stress the importance of lifting the income tax personal allowance, which was a Liberal Democrat manifesto commitment for working people in this country. A full-time worker on the minimum wage will pay three quarters less income tax than they would have done in 2010. A typical basic rate taxpayer will save £800 in cash terms in the next financial year.

Holiday Pricing

Steve Brine Excerpts

Monday 24th February 2014 Westminster Hall

[Jenny Willott]

I must confess that as an MP representing a Welsh constituency, I benefited significantly last week when Parliament was in recess because it was half term in England. When I went home to Cardiff, all the places I took my small children were mercifully empty because half term in Wales is this week. There is already a difference between some areas, and it is possible to enable that on a broader basis in order to extend the peak period, which would hopefully bring down prices across the sector.

To conclude, the Government are not convinced that higher prices in school holiday periods are the result of market abuse by the holiday industry. Rather, they reflect market forces in a very competitive sector, and are made worse by the fact that there is international competition as well. I recognise the fact that family holidays can be incredibly valuable, but they should not be at the expense of a child’s education. School attendance throughout the school year remains critical—we know that pupils who stay at school for longer do much better in their final exams.

[Steve Brine (Winchester) (Con)]

I absolutely agree with the Minister, but although we know that school attendance is important, we also know that parents are not daft. A constituent of mine who is a governor at a primary school in Winchester said to me that the changes to the rules are an insult to his intelligence and discretion—he would never dream of taking a child out of school at a crucial time. I find it perplexing that a Conservative Government are meddling in this area full stop, but we should think especially about the early years—reception and year 1. Does the Minister have a view on whether there should be more discretion during a child’s early years in primary school? Do we really need to come down on head teachers and question their integrity in the way that we appear to be doing?

[Jenny Willott]

I completely disagree with the hon. Gentleman. The Government are actually ensuring that head teachers have the discretion to make a decision in exceptional circumstances. Clearly, the decision that a head teacher makes will involve looking at the child’s age, the circumstances under which the parent has applied and so on. The point of the regulations that the Government have put in place is that we are leaving it to the discretion of head teachers to take into account individual circumstances and make a judgment. That is exactly the reverse of Government meddling. However, the issue is not just the effect on a child’s education. As I and a number of other Members have already said, when a child is taken out of school in term time, that does not just affect that child’s education; it has a broader impact on the school, the teacher and other pupils in the class. We must take that into account as well, and I am sure that head teachers will consider that when making decisions.

Finally, I congratulate the House on this very lively debate. It has been a really good example of a debate in which a number of different views have been put forward but the tone has remained extremely pleasant. I have an awful lot of points to feed back to the Department for Education, and I am sure that Ministers have been listening carefully and will respond to Members’ concerns. Thank you very much, Dr McCrea, and I congratulate Members again on a really good debate.

Banking

Steve Brine Excerpts

Wednesday 15th January 2014 Commons Chamber

[Sajid Javid]

I think the hon. Gentleman has a challenged memory of events. I am sad to see that he had an opportunity to apologise, but did not take it.

Let us look at the facts. At the time of the changes Labour was making to the financial sector, my right hon. Friend the Member for Hitchin and Harpenden (Mr Lilley) warned the then Government in November 1997:

“The process of setting up the FSA may cause regulators to take their eye off the ball, while spivs and crooks have a field day.”—[Official Report, 11 November 1997; Vol. 300, c. 732.]

Let me share another quote, in this case from the current shadow Chancellor from a speech he made as City Minister in 2006:

“Nothing should be done to put at risk a light-touch, risk-based regulatory regime.”

What we are hearing from Labour is the same old headline-chasing nonsense that we have come to expect and no answers at all to the problems they created.

I agree with the hon. Member for Nottingham East on one thing: public confidence in the banking system and in bankers is still low, just as—let us be honest—public confidence in the political system and the people in this Chamber is still low. That is precisely because, five years ago, partly as a result of the irresponsible decision of some bankers, but largely as a result of the policies of the then Labour Government, our country found itself in a huge mess. When trust is lost on that scale, it is not won back overnight.

[Steve Brine (Winchester) (Con)]

Perhaps the Minister can answer this question because the shadow Minister did not give way to me. The shadow Minister said that restricting the number of branches that banks can hold will not close branches, but of course it will. What does he think closing branches will do to people’s faith and belief in the banking sector. I have three branches of Barclays in my constituency—in Chandlers Ford, Alresford and Winchester—so if, God forbid, a Labour Government were ever elected, which one would they propose to close?

[Sajid Javid]

My hon. Friend highlights the fact that the Labour party has no ideas about how to increase competition in the banking sector, and any kind of approach that includes arbitrary quotas will clearly lead to the sort of problems that my hon. Friend outlines.

Interest Rate Swap Derivatives

Steve Brine Excerpts

Thursday 24th October 2013 Commons Chamber

[Guto Bebb]

My hon. Friend mentions the sophistication test, and I will be coming to that; it is indeed something that concerns me and the all-party group.

We have found consistently that banks are admitting a mis-sale in about 93% of cases. Had we found, in the consumer mortgage market, that 93% of mortgages had been mis-sold, would we have allowed nine months to pass between those findings and the situation we now face? We have to ask the question: is it right that these businesses should be treated differently because they are small businesses, when we have found that there has clearly been mis-selling?

[Steve Brine (Winchester) (Con)]

I have many constituents, some of whom are outside this place today, whose businesses are in limbo while they wait for this interminable delay to be sorted. They are unable to press on and employ the people they want to, to grow their businesses, pay their taxes and help to grow the economy, which is what we all need to happen. That is the bigger point in this debate: the impact on the wider economy.

--- Later in debate ---

[Natascha Engel]

That is right and this whole scandal has shown how it has been possible to pass the blame between banks, the FCA and the Treasury, and nobody will take any responsibility for what has been an absolute scandal.

I have seen this in my casework. Mr and Mrs Chadwick buy and sell homes and their business has been very successful. These small and medium-sized companies are not just viable; they are successful. It is only because of this mis-selling scandal that they are going bust. I cannot understand the logic of this: what interest does a bank have in a business going bust and losing all its money? The logic of that is beyond me.

I am also concerned about banks that have taxpayer funding, such as RBS, which has a lot of these cases. We must look much more carefully at the link between the regulator, the banks and the Treasury.

I agree that proper criminal penalties must be imposed on those banks, individuals and organisations that have been proven to have been part of this injustice, and I also agree with the call for a moratorium.

[Steve Brine]

The issue of suspensions and the length of time this has all taken was raised with me at a business breakfast in Winchester last week. This has generated so much anger. While it was understandable that there were no suspensions while things were supposed to be done on a shorter time scale, it has now taken 16 months in some cases. That is why it is causing real hardship and anger, and I hope that point comes across loud and clear to the FCA, which I know is listening to every single word this morning.

[Natascha Engel]

I could not agree more. I do not know whether other Members have received a letter from Barclays today outlining, in not very easy-to-understand English, what it is doing and proudly proclaiming how “tightly controlled” and “heavily scrutinised” the review is

“whereby all the banks involved are required to develop a detailed methodology for agreement”,

blah, blah, blah. It goes on and on and on. If this is phrased in anything like the same way as the products individuals were sold, I am not surprised they did not understand what was going on.

--- Later in debate ---

[Sajid Javid]

I agree. The banks should move much faster. Today’s announcement from the two banks is welcome, but other banks should take a serious attitude to not only the amounts but the timing of redress payments.

Hon. Members have also voiced concerns about the large number of businesses that have been assessed as sophisticated and so fall outside the scheme. My understanding is that the FCA used as a starting point the criteria for non-sophisticated customers set out in the Companies Act 2006. As such, the test reflects the fact that larger businesses would have greater resources to seek advice on the products in question, both at the time of sale and subsequently. Moreover, I understand that the FCA then amended the sophistication test in January to ensure that certain companies, which were classified as sophisticated under the Companies Act test but which might reasonably be considered to be non-sophisticated, were also brought into the scope of the review.

Throughout this debate, the Government have been clear that when a business lacked the necessary skills and knowledge to understand fully the risks of the products, it should receive the appropriate redress. We do not agree that all businesses should have access to the FCA review; there needs to be a defined cut-off point beyond which more sophisticated businesses take responsibility for understanding the products that they entered into. I am confident that the FCA has found the right balance to ensure that all non-sophisticated businesses fall inside the scheme.

I will not be able in the time available to address all the questions raised, but I might be able to help with a couple in particular. Some Members asked whether insolvency could be a reason for banks to try to delay the redress process. I assure the House that that could not be a reason. No one wants businesses to go insolvent, but if, sadly, they do, they will still be part of the review process. If mis-selling is found to have happened, banks will still be liable and on the hook—they will gain no advantage from the insolvency of a company.

Hon. Members, including the shadow Minister, asked whether the FCA could consider setting a deadline. There is a good case for the FCA to consider that, but it would have to be its independent decision. Due regard must be taken of the fact that it might take longer to sort out the most complex products, but it would be good for the FCA to consider whether setting a deadline would help to speed up the process.

[Steve Brine]

A number of colleagues have mentioned this. Does the Minister have a view on a truly independent appeals process? Given that 93% of the cases looked at thus far have been non-compliant, the number involved would not be massive.

[Sajid Javid]

As my hon. Friend will know, there is a necessary degree of independence in the process. However, he raises a good point, which, as he said, has been raised by others today. It is important to make sure that there is confidence in the process. If confidence does not come about in the coming months, the FCA may have to review things and the process that my hon. Friend suggests could be taken forward.

I end by reiterating that the Government take extremely seriously the abuse that has taken place in very many cases. I sympathise wholeheartedly with campaigners in the Chamber and beyond. I am determined that any wrongs inflicted on businesses should be put right and want a quick solution to the mis-selling of interest rate hedging products.

Small businesses are the backbone of our economy and they should be allowed to draw a line under this issue and get back to what they do best—working hard, creating jobs and creating growth for the UK economy. Once again, I thank hon. Members, particularly my hon. Friend the Member for Aberconwy, for bringing the issue to the attention of the House. I assure them that I will make sure that the issue continues to receive the highest level of attention from the Government.

Oral Answers to Questions

Steve Brine Excerpts

Tuesday 10th September 2013 Commons Chamber

[Mr Gauke]

The hon. Gentleman will be aware that some of the construction numbers of late are much more encouraging, and the Government are taking action to improve house building, including our Help to Buy proposal. Believe it or not, not every problem this country faces can be solved by another tax.

[Steve Brine (Winchester) (Con)]

5. What recent steps he has taken to support small businesses.

[Dr Phillip Lee (Bracknell) (Con)]

13. What recent steps he has taken to support small businesses.

[The Chancellor of the Exchequer (Mr George Osborne)]

This year the Government are taking further steps to help small businesses. We have increased the investment allowance tenfold, and from next April we will introduce a new employment allowance worth £2,000 for every small employer, taking around one third of small employers out of employer national insurance contributions altogether. From next Monday we will help small businesses get the best deal from their banks by guaranteeing that they can switch their accounts within seven days. That service will also be available to families, which is real choice and competition in banking being introduced by the Government.

[Steve Brine]

I thank the Chancellor for that answer. I know he will want to welcome the new business centre I opened recently in the centre of Winchester, which is part of our plans to find and develop new start-ups. That is all happening in the light of increased business confidence, increased takings and reduced vacancies on the high street. Will he therefore join me in backing Winchester city council, which is working strongly in partnership with the business improvement district to help drive recovery in my area?

[Mr Osborne]

I certainly welcome that. I met members of my hon. Friend’s local authority who came to Downing street to tell me about the business improvement district. That involves the local council, the local MP and local businesses working together to attract jobs and investment to Winchester. I congratulate him on the leadership he has shown.

Oral Answers to Questions

Steve Brine Excerpts

Tuesday 29th January 2013 Commons Chamber

[Mr Osborne]

There is no complacency about dealing with the mess that the right hon. Gentleman left behind. He talks about the economy over the last couple of years. Let me tell him what has happened in the Morley and Outwood constituency. In his area, the unemployment claimant count went up 190% under the last Government; it has fallen by 7% under this Government. The youth claimant count was 161% up under his Government; it has come down by 10% under this Government. We are fixing the problems that he created. The only job that he is interested in saving is his own. The truth is that while he remains in the post that he is in, he is a reminder to everyone of all the mistakes that Labour made when it managed the economy.

[Steve Brine (Winchester) (Con)]

T4. A number of my constituents—[Interruption.]

[Mr Speaker]

Order. This is a considerable discourtesy to the House. The hon. Gentleman must have his question heard.

[Steve Brine]

Thank you very much, Mr Speaker.

A number of my constituents have been caught out by the high interest rates charged on payday loans. At a time when many families are struggling with high levels of personal debt, what are the Government doing to ensure that consumers are protected against bad practices in that industry and the often extremely high interest rates that are charged on such loans?

[The Economic Secretary to the Treasury (Sajid Javid)]

I know that my hon. Friend is passionate about this issue, and he is right to raise it today. The Government are committed to ensuring that people who borrow from payday lenders are protected against bad practices. Last January, we announced our intention to transfer the regulation of consumer credit from the Office of Fair Trading to the new Financial Conduct Authority. The FCA will have powers and sanctions to address consumer detriment in the consumer credit market, and we will shortly be publishing consultation on this very issue.

Oral Answers to Questions

Steve Brine Excerpts

Tuesday 11th September 2012 Commons Chamber

[Mr Gauke]

We believe that tax simplification is important. A simpler tax system makes it easier for taxpayers to see how much they are paying, easier for businesses to comply, and easier to tackle avoidance. It is something the Government believe in.

[Steve Brine (Winchester) (Con)]

9. What plans he has to maintain low market interest rates.

[The Chancellor of the Exchequer (Mr George Osborne)]

My hon. Friend is right: low interest rates are secured by credible, economic and fiscal policy, and delivered by the independent Bank of England. Sir Mervyn King has been an outstanding Governor of the Bank, and has helped set monetary policy to support our economy through one of its most challenging periods in modern history. He is serving his second and final term as Governor, and will retire on 30 June 2013.

I can tell the House today that I have decided that the appointment of his successor will be conducted through fair and open competition. For the first time in history, the post will be advertised and the advertisement will appear in the press later this week. As with Mervyn King, we are seeking a Governor of intelligence, independence and integrity, and we intend to announce the successful candidate by the end of the year.

[Steve Brine]

I thank the Chancellor for that response, and I welcome his announcement.

Those looking for a home in my Winchester constituency want to know that their Conservative council is building new council homes for the first time in 25 years. Those looking to buy in the private sector want to know that they can get on the housing ladder and get a mortgage, with some certainty that they can repay the money over the years to come. Will the Chancellor reassure my constituents that, unlike the Labour party, he understands that even a small rise in interest rates will have a punishing effect on family budgets?

[Mr Osborne]

My hon. Friend is absolutely right. Low interest rates are crucial to the recovery, and a loss of confidence in the UK’s ability to pay its way in the world will lead to an increase in market interest rates, an increase in mortgage costs for millions of families, and, of course, an increase in borrowing costs for businesses. It would be a disaster, and that is why the Government do not take the path advocated by the Labour party. We also want to ensure that low interest rates are felt by families, which is why the funding for lending scheme announced jointly with the Bank of England is already leading to banks offering cheaper mortgages. The combination of our Firstbuy and NewBuy schemes is also helping families to buy their first home.

Financial Services Bill

Steve Brine Excerpts

Tuesday 22nd May 2012 Commons Chamber

[Mr Hoban]

That is why the Government have embarked upon a consultation to look at ways to enhance the accountability of boards to their shareholders, looking particularly at the issue of executive pay. That is a welcome move and the Government will shortly respond formally to the responses to that consultation. I agree with the hon. Member for Nottingham East that shareholders must play a more powerful role in these issues, and in recent months they have put across their views more powerfully.

The hon. Member for Nottingham East spoke about the disclosure of voting patterns. As he mentioned, there is provision for such a power in the Companies Act 2006. The previous Government made it clear that they would use the power only if market practice did not improve. The outcome of the stewardship code has been to encourage institutional investors to vote more and to disclose that. The latest Investment Management Association survey of institutional investors shows that 66% of those surveyed now publish their voting records. That is up from 21% in 2004. Professor John Kay, in his review of equity markets and long-term decision making, is considering the issue and will report in the summer.

Let me move on to Government amendments 7 and 8 and Opposition amendment 73. Amendment 8 makes two minor technical corrections and allows firms and the Financial Ombudsman Service to make referrals to the FCA on matters of mass detriment. Amendment 7 deals with super-complaints. The new provision in the Bill for the FCA to receive super-complaints from designated consumer bodies has been widely welcomed. I am grateful for the scrutiny provided in Committee and in particular for the arguments made by the hon. Member for Makerfield (Yvonne Fovargue), who is in her place, who tabled an amendment in this connection.

It has never been the Government’s intention that the super-complaints mechanism could be made available to bodies whose purpose is to represent professional investors, but the debate in Committee highlighted the fact that the drafting would allow that. The amendment therefore revises the definition of “consumer” used in the super-complaints mechanism to exclude representatives of authorised firms.

Amendment 73 seeks to require the Government to introduce a provision allowing for collective proceedings for small and medium-sized firms and to give them access to super-complaints. The amendment has created confusion in the minds of hon. Members about the rights currently available to businesses to make complaints. Paragraph (b) of the amendment suggests that small and medium-sized businesses cannot make complaints. That is not the case, but I shall return to that.

I deal first with collective proceedings. The Government are consulting on a range of proposals to make it easier for consumers and small businesses to bring private actions in competition law, including on whether to extend to businesses the current right of consumers to bring a collective action following a breach of competition law, and whether to make it easier to bring such actions. We should take the opportunity to learn from the outcome of that consultation and reflect on what the implications might be for the financial services sector before proceeding to legislation. It would not be appropriate to legislate today in haste, without having consulted.

On access to super-complaints, the provisions in the Bill will not prevent bodies representing small and medium-sized enterprises which fit the relevant definition of consumers from making super-complaints. Within the new statutory framework the issue of what type of consumer body should have access to super-complaints is complex and will require more detailed criteria than can be set out in the Bill. These criteria will be of interest to parliamentarians and to organisations seeking to become super-complainants. I can therefore announce to the House that the Treasury will publish draft criteria for consultation later in the year.

On paragraph (b) of amendment 73 about the rights of small and medium-sized businesses to make complaints to the FSA, there has been much discussion about the mis-selling of interest rate hedges. I do not want to comment on that directly, as it is a matter for the FSA. However, I can point out that the FSA already has a powerful toolkit that can be very effective. That includes its powers to establish industry-wide or firm-specific redress schemes under section 404 of FSMA, which was recently used in the case of Arch Cru. The FSA is consulting on such an arrangement to help people who lost out as a consequence of the issues at Arch Cru.

The FCA will have the powers that the FSA already has to refer firms to enforcement, to use supervisory measures, to agree with or require a firm to undertake the necessary remedial action, including carrying out a past business review, and the payment of redress, or obtaining redress for firms through their use of their restitution powers under section 384 of FSMA. There are therefore provisions in place that will help the FSA to tackle complaints of mis-selling that businesses as well as consumers have brought to it. I hope that provides the clarity and reassurance that my hon. Friends are looking for.

My hon. Friend the Member for Warrington South (David Mowat) picked up in his interventions the confusion that amendment 73 has created. The FSA has the power to take action to help businesses which feel that they have been mis-sold products and to ensure that restitution can take place.

[Steve Brine (Winchester) (Con)]

I am listening carefully to what the Minister says, and I agree that paragraph (b) has caused some confusion and may have planted some hope that did not need to be planted in some of my constituents, who have some sympathy with amendment 73, as do I. The Minister said that the FSA or FCA has a toolkit at its disposal, and I am sure it has been listening carefully to what he has said at the Dispatch Box this afternoon. Will he consider writing to the FSA to make that crystal clear, giving clarity to Members and constituents listening to the debate today?

[Mr Hoban]

I would not say that amendment 73 sowed seeds of hope. Rather, it sowed seeds of doubt by suggesting that those powers were not available. Of course they are available. I have written to hon. Members in respect of Arch Cru and also about interest rate swaps recently, setting out the work that the FSA is doing in this regard. It is looking carefully at the sales practices of a number of institutions in respect of interest rate swaps and will take action, as appropriate. I can reassure my hon. Friends and those who take a close interest in these matters on behalf of their constituents and businesses in their constituency that the FSA has the powers that it needs to tackle these issues properly and fully and to get to the bottom of them.

Finance (No. 4) Bill

Steve Brine Excerpts

Thursday 19th April 2012 Commons Chamber

[Mr Chope]

My hon. Friend makes a really good point, which was also covered in the recent Adjournment debate on this subject, which received what I can describe only as a rather woolly response from the Exchequer Secretary to the Treasury, my hon. Friend the Member for South West Hertfordshire (Mr Gauke). He said that, basically, something was going to happen in this Parliament but the Government were not quite sure what or when. That was not good enough. We need an opportunity to look at the whole issue of transferrable tax allowances, and allowances in the tax and benefit system that recognise the family and marriage.

Returning to the issue of fairness, two people on £50,000 a year with children will not have to pay the high income child benefit charge, whereas a family with children with one person earning over £60,000 will have to pay it.

[Steve Brine (Winchester) (Con)]

On the issue of fairness, would my hon. Friend have any truck with the idea of limiting child benefit to, say, the first two or three children, regardless of the parents’ income, which would retain the universal element?

[Mr Chope]

There is a whole host of ideas going round. There was a time when no child benefit or allowance was payable for the first child, on the basis that parents should take responsibility for that child and bear the costs themselves, but, if they had any more, they could expect the state to help them. My hon. Friend’s point illustrates further the fact that this measure should have been the subject of proper consultation and draft clauses, so that we could have had a debate on it in the wider context of universal benefits. Instead, it was announced at the party conference and implemented in this way.