Oral Answers to Questions

Debate between Alison McGovern and Greg Clark

Tuesday 11th June 2019 Commons Chamber

[Greg Clark]

My hon. Friend makes an excellent point. It is clear that if drivers are to have the confidence that they will be able to charge their vehicles, every part of the United Kingdom needs to be a part of that. My hon. Friends and I have regular discussions with the Welsh Government, and the roll-out of the charging network is in all parts of the United Kingdom.

[Alison McGovern (Wirral South) (Lab)]

The Secretary of State knows that many of my constituents work in the automotive industry and how serious the situation is with Brexit. Constituents are writing to me to ask why there are so few charging points in the Wirral. This is a huge issue. Will he do something that this Government really have control over and take action now on the business rates impact on the automotive industry, so we can at last have some positive news for the automotive industry in Britain?

[Greg Clark]

I think the hon. Lady knows that I have regular discussions with Vauxhall and its owner PSA. In fact, PSA has invested very substantially. One of its most recent major investments in Europe was to strengthen the Luton plant with the next generation of technology. We talked to it about investment in Ellesmere Port, which she knows is important.

In terms of charging points, we have one of the best charging networks in Europe, but we need to expand it further. As the hon. Lady knows, through the automotive sector deal we have a very close relationship with the industry and work jointly with it.

Leaving the EU: Protection for Workers

Debate between Alison McGovern and Greg Clark

Wednesday 6th March 2019 Commons Chamber

[Alison McGovern (Wirral South) (Lab)]

The Secretary of State speaks well and everybody wishes to listen to him. However, not all his colleagues are of the same mind. Before Christmas, the Attorney General stood at the Dispatch Box and boasted that the non-regression clauses in the deal are

“not enforceable either by the EU institutions or by the arbitration arrangements under the withdrawal agreement.”—[Official Report, 3 December 2018; Vol. 650, c. 559.]

So why on earth should we trust these clauses?

[Greg Clark]

The Attorney General was making a statement of fact that the provisions in that agreement are not covered by that arbitration mechanism. That is a statement that accurately reflects the reality, which is one of the reasons why availing ourselves of the opportunity to have a parliamentary mechanism to act on and see implemented that non-regression commitment—putting it in the hands of this House—is especially valuable.

Leaving the EU: Airbus Risk Assessment

Debate between Alison McGovern and Greg Clark

Monday 25th June 2018 Commons Chamber

[Greg Clark]

My right hon. Friend takes too pessimistic a view. We do not want Airbus to be located in this country because it is too difficult for the company to go elsewhere; we want it to be here with enthusiasm because this is a good and profitable place to invest. I am determined that the deal we secure and the investment we make through our industrial strategy will add to our strengths and make us even more attractive. We should have a counsel of optimism rather than defensive pessimism.

[Alison McGovern (Wirral South) (Lab)]

Unlike the right hon. Member for Rayleigh and Wickford (Mr Francois), my constituent Kyle Robinson, a Unite shop steward, works at Broughton every day. He wrote to me this weekend to say that the current situation for him and the families I represent is potentially catastrophic. Will the Secretary of State ensure that when he takes up the invitation from my hon. Friend the Member for Alyn and Deeside (Mark Tami) to meet him and the company, the unions get an invite as well?

[Greg Clark]

The company has good relations with the trade unions and meets them regularly, as indeed do I. The hon. Lady should reflect that when the country took the decision to leave the European Union, there was always going to be a period before the negotiations were concluded when anxieties would be felt. Our purpose and determination is that those negotiations should be concluded so that there will be confidence to invest in the future and we can create many more jobs for her constituents.

Industrial Strategy

Debate between Alison McGovern and Greg Clark

Monday 27th November 2017 Commons Chamber

[Greg Clark]

I am grateful to my hon. Friend for his comments. The role of universities is absolutely vital. They have worked with us very closely on the development of the strategy. They are central to the local economy in almost every part of the country, and not just in educating the population—local people and those who travel to study—but in the research and leadership they offer. I would be delighted to visit Bournemouth’s excellent university with my hon. Friend, to congratulate it and to discuss how we can take its success forward in the local area.

[Alison McGovern (Wirral South) (Lab)]

The Secretary of State answered my hon. Friend the Member for Leeds West (Rachel Reeves) elegantly, but all he really did was restate the premise of her question, so let me give him another chance. Page 202 of the White Paper refers to a

“programme that will target areas where businesses need to improve to match the best in Europe.”

The problem with competing with businesses in Europe is that they will be members of the single market and, according to the Government, we will not. Has he made representations to the Prime Minister, asking her to change her position?

[Greg Clark]

I am interested that the hon. Lady has got to page 202 already—that is high productivity. Of course, as the White Paper makes very clear, we want not only to continue our international collaborations, but to deepen them. That is very important, because the most productive industries are international. A big part of our negotiations, which she knows full well are continuing, is focused on getting a deal that is not just in our interests, because exactly the same logic applies to our European partners; they have no more interest than we do in interrupting those deep and successful relationships. That is why we have made that commitment.

Opel/Vauxhall: Sale to PSA Group

Debate between Alison McGovern and Greg Clark

Monday 6th March 2017 Commons Chamber

[Greg Clark]

I completely agree with my hon. Friend. One of the big advantages of locating in this country is that manufacturers can join a vibrant consortium of people collaborating in a network, as at Warwick, which is recognised as a world-leading place to do automotive research. We want to build on that and attract more businesses to support it.

[Alison McGovern (Wirral South) (Lab)]

I support the Secretary of State’s approach. He is demanding of PSA, so he will understand if we are a little demanding of him when it comes to what he is going to do. May I ask him again—as did my hon. Friend the Member for City of Chester (Christian Matheson)—about the business rates regime as it relates to investment in plant and machinery? Has he asked the Chancellor to change it, yes or no?

[Greg Clark]

As I said to the hon. Member for City of Chester (Christian Matheson), the competitiveness of our automotive sector is high. I will ensure that, across the board, we retain a world-competitive—not just European-competitive—sector, and I will look into any aspect of that if it is brought to my attention.

Vauxhall/Opel: Proposed Takeover

Debate between Alison McGovern and Greg Clark

Monday 20th February 2017 Commons Chamber

[Greg Clark]

The automotive sector has been one of our most successful sectors in recent years. That is partly due to the effective arrangements that have been put in place through the Automotive Council, whereby firms, including small and medium-sized suppliers, can work together to support each other. An example of that is the National Automotive Innovation Centre, which I visited recently, where new facilities are being made available not only for the majors, but for people with new ideas who are setting up new businesses. That can reinforce and continue the success of one of our most effective industrial sectors.

[Alison McGovern (Wirral South) (Lab)]

A number of my constituents work for Vauxhall at Ellesmere Port and Unilever in Port Sunlight. If there are Members who think that everything in our economy is rosy, I invite them to come to Wirral South this weekend and say that. When it comes to the high-value manufacturing that the Secretary of State has talked about, does he realise the importance of the customs union, and has he made a great and important contribution to the Prime Minister’s strategy on Brexit with regard to keeping us inside the customs union?

[Greg Clark]

The automotive sector, like others, trades across borders. That is one reason why the Prime Minister and I have been very clear that we need to be able to negotiate trading arrangements that maintain our access across those borders without tariffs and without bureaucratic impediments—that is clearly understood. Those negotiations have some way to go, but it is important to emphasise, as I and the Prime Minister have done, what our intention is.

Living Standards

Debate between Alison McGovern and Greg Clark

Wednesday 4th September 2013 Commons Chamber

[Greg Clark]

My right hon. Friend is right that there is a global consensus, if I could put it that way, that responsibility in fiscal matters is the necessary condition to revive the economy. The only exception to that consensus continues to be Opposition Front Benchers.

We have cut our structural deficit by more than any G7 country. The deficit is forecast to fall this year, next year and the year after that. We have record low interest rates. We are investing more in infrastructure during this Parliament than the previous Parliament.

It is still a world of economic turbulence—let us be clear about that—but the evidence throughout the past few months is that Britain is on the mend. National income has grown for two successive quarters.

[Alison McGovern]

The Minister is talking about economic success and sound economic policies. Would he like to come to my constituency in the Wirral and tell my constituents why sound economic policy and a successful economy have led to their wages being cut by £30 a week under his Government?

[Greg Clark]

As the hon. Lady knows, I spend a lot of time in Merseyside; we met on the other side of the water in Liverpool recently. I would be very happy on one of my visits to Merseyside to meet her and make the point that making the economy competitive, including in the north-west and her constituency, and getting people into jobs and bringing unemployment down is the best way that people can build living standards that are sustainably high. I will come on to say a bit more about that.

There have been 1.3 million jobs created in the private sector, but what has been the Labour party’s reaction, including today, to that news? The first reaction was silence. The entire Labour Front-Bench team went to ground for the summer, although the hon. Member for Leeds West had an excuse. However, three years have passed since she stated in her excellent maiden speech:

“It would not be responsible or sensible to oppose every spending cut or tax increase.”

It was in that same maiden speech that she told the Chamber that she would

“encourage this Government when they get it right”.—[Official Report, 8 June 2010; Vol. 511, c. 239.]

Now would be a good time for her to do what she promised. I would be more than happy to give way to her if she acknowledges that the hard work of the British people is showing success that she did not predict. No answer.

Cyprus

Debate between Alison McGovern and Greg Clark

Monday 18th March 2013 Commons Chamber

[Greg Clark]

The agreement that was reached at the weekend was an agreement between the Government of Cyprus and the eurozone members. The ECB has said clearly:

“It’s the Cyprus government’s adjustment programme. If Cyprus’ president wants to change something regarding the levy on bank deposits, that’s in his hands. He must just make sure that the financing is intact.”

The Cypriot Parliament will, quite properly, be discussing and debating this matter. It has some influence, and indeed some control, over how these measures are levied.

[Alison McGovern (Wirral South) (Lab)]

As the Minister made clear, whether in the eurozone or not, what affects one country in Europe affects us all. Will he therefore answer the question asked by my hon. Friend the Member for Bolsover (Mr Skinner) and give us his view on this levy on deposits?

[Greg Clark]

The Government of Cyprus agreed to this proposal. The spokesman for the German Government was very clear that how Cyprus makes its contribution—how it makes the payments—is up to Cyprus. If the Government of Cyprus, recently elected by their people, make this decision, it is for them to justify it to the Cypriot Parliament.

Financial Services (Banking Reform) Bill

Debate between Alison McGovern and Greg Clark

Monday 11th March 2013 Commons Chamber

[Greg Clark]

I should have thought it was reasonable for the Financial Secretary to the Treasury to introduce a Bill on financial services.

Let me continue to make my point. The financial services sector is of great importance to Britain, but that importance carries risks for this country. At their peak, the banks’ balance sheets amounted to 500% of UK GDP, compared with 100% in the US and 300% in France and Germany. In 2008, for example, the Royal Bank of Scotland was the biggest bank in the world and, as we all know, Britain also witnessed the first bank run for more than a century, with depositors queuing in the streets to get their savings out of Northern Rock. RBS and HBOS had to be bailed out, with £65 billion of taxpayers’ money needed to shore up the banks.

The system of regulation failed, as did the culture of the banking sector, in not preventing and resolving the crisis without recourse to taxpayers’ money or otherwise putting people’s deposits at risk. That is why fundamental reform was needed, the first pillar of which has been put in place through the passage of the Financial Services Act 2012, which received Royal Assent in December and establishes a clear and distinct role for prudential regulation and conduct regulation, a role that was blurred and ineffective.

The Bill is the second pillar of those reforms and it reflects the considered views of no fewer than two expert commissions. The first, chaired by Sir John Vickers, was the Independent Commission on Banking, whereas the second, chaired by my hon. Friend the Member for Chichester (Mr Tyrie), was the Parliamentary Commission on Banking Standards, on which many Members of the House have served.

Let me say something about the process we followed, briefly summarise how the Bill reflects the recommendations of each commission and then explain in some detail the rationale for the few remaining areas in which the Government’s proposed approach differs.

[Alison McGovern (Wirral South) (Lab)]

In his discussion of the process, will the Financial Secretary explain why, given that the crash in 2008 to which the Bill is a response was one of the most momentous economic events in my lifetime and the lifetimes of many people, and given the importance of its proposals, the Chancellor did not see fit to lead the debate today?

[Greg Clark]

I am disappointed that my presence here does not satisfy the hon. Lady. The Chancellor trusts his Financial Secretary to speak at the Dispatch Box. I do not know how it is in the Opposition.

Banking Reform

Debate between Alison McGovern and Greg Clark

Monday 4th February 2013 Commons Chamber

[Greg Clark]

My hon. Friend is absolutely right. One of the real tragedies, and one of the things that makes me most angry about the declining reputation of banking in recent years, is that the reputations of many hundreds of thousands of people who work in banks up and down the country and who have chosen banking as a career because of its associations with probity and respect in the community have been besmirched by the actions of a very small number of people. Our purpose in restoring the reputation of financial services in this country is also to allow those people to go to the pub without being teased and ribbed because they work in a bank, which is something that should never have happened to them.

[Alison McGovern (Wirral South) (Lab)]

My constituents want banks to serve industry and our community, not themselves. May I try the Minister yet again on the question of full reserve powers? Why should the evidence of one institution hold sway over that expert commission?

[Greg Clark]

It is the hon. Lady’s objective that banks should serve businesses and their customers, and that is precisely what Sir John Vickers has in mind. That is the purpose of the exercise, and it is exactly what I want to achieve. Any ring-fenced bank that strays from that purpose and neglects its core customers—its retail depositors and the other people who bank with it—by taking their money and playing with it in the casino will be broken up.

Financial Services Bill

Debate between Alison McGovern and Greg Clark

Monday 10th December 2012 Commons Chamber

[Alison McGovern]

I thank the hon. Gentleman for his intervention, which was characteristically well made. I share his fear, and his point about the G8 is absolutely correct. It will be great to have the G8 summit in Northern Ireland. I am sure that the Minister has heard the hon. Gentleman’s point and will duly feed it back to the Prime Minister, because there is no doubt that it is important.

In conclusion, underlying what we are trying to achieve is a financial system that has appropriate oversight. Given the importance—we now know this—to our everyday well-being and comfort of what appear to be financial technicalities and bits of information that people do not necessarily connect with the realities of life, I hope that the Government will pay the most careful attention to the results of the consultation on commodities, because we might have a genuine opportunity to set in train rules that will help us to spot the awful crashes and difficult phenomena of the future.

[Greg Clark]

It is a pleasure to respond to this short but important debate.

The hon. Member for Nottingham East (Chris Leslie) referred to the heated exchanges before the summer. They were necessarily heated because they concerned a major scandal that did great damage to the country’s reputation. The whole House feels strongly about this matter because the industry is vital to the country’s economic future. About 2 million people are employed in the financial services and related industries, most of them in capacities far removed from the ability—and still more the inclination—to engage in the kind of behaviour that came to light in the LIBOR scandal. It is a particular source of outrage that many ordinary working people across the UK with careers in the banking industry have been besmirched by the behaviour of people far from them. As a result, in their ordinary working lives and in conducting their activities, they found themselves bracketed with people who were shaming an industry that they were proud to work in—an industry associated with high standards of sobriety and propriety—and it is particularly important that we act decisively and firmly against the perpetrators of the manipulation that came to light in the summer.

The amendments do precisely that. All Members will recognise the pace with which we have responded, given that the allegations came to light in late June. We immediately asked an independent reviewer, Martin Wheatley, to look into the allegation. He conducted his work over the summer and reported in September. The Government considered all his recommendations and have adopted every one of them. The fact that we are here, in early December, reaching the final stages of legislation to act on those recommendations shows that the Government and the House have taken the allegations very seriously and are acting to restore the reputation not only of the City of London, but of the financial services industry in this country. I hope that the world will see that, when something comes to light that objectively is scandalous, we will not stand by and watch it happen, but will take legislative action immediately.

I shall refer to some of the points made by the hon. Members for Nottingham East and for Wirral South (Alison McGovern). Let me deal first with the independence of benchmark providers. There are, of course, lots of different benchmark providers, not all of which—it is important to say—were associated with the problems that LIBOR and the British Bankers Association had. The Wheatley review recommended that the BBA step aside from setting LIBOR. Future administrators, which may be private, commercial or otherwise—there is no restriction—will be subject to the type of regulation powers contained in these amendments. On LIBOR specifically, the tender committee chaired by Baroness Hogg is in its early stages. We will of course update the House on the progress it makes when it considers who will operate the LIBOR benchmark in future.

Oral Answers to Questions

Debate between Alison McGovern and Greg Clark

Thursday 21st October 2010 Commons Chamber

[Greg Clark]

My hon. Friend asks a very important question. I think neighbourhoods, parish councils and town councils, which intimately understand their areas, have been cut out of the planning process for too long. We will introduce rights in the localism Bill for neighbourhood plans to have statutory force so that people can actually have a say in how their communities develop.

[Alison McGovern (Wirral South) (Lab)]

Bromborough Dock landfill site in my constituency desperately needs sustainable development. The Forestry Commission had a plan to turn it into a publicly accessible park, but that plan has now been withdrawn, following the abolition of the Northwest Regional Development Agency. What advice can the Minister give me about how to turn this former industrial site into a beautiful green riverside park, given the actions of his Government?

[Greg Clark]

I am very happy to take forward the hon. Lady’s suggestion, and I will follow it up after this. I will make my team of civil servants available to her, to see whether we can help her with any barriers that might be preventing that from happening.