Ukraine
Alistair Carmichael Excerpts(5 days, 7 hours ago)
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Mr Alistair Carmichael (Orkney and Shetland) (LD)
Three years ago, the sale of Chelsea football club realised £2.5 billion, which was to be used for the benefit of Ukraine. Today, that money remains frozen, and as Lyra Nightingale of Redress said this morning, there is a total lack of transparency about who has it and when it is going to be released. Can the Prime Minister tell the House when that money will be released for its intended purpose—to help the people of Ukraine?
The Prime Minister
The whole issue of assets and frozen assets is complicated, but I agree with the sentiment across the House: it is time to look at what options might be available. I do not think we should do that on our own; I think it needs to be done in conjunction with other countries. It is fiendishly complicated, which is why it has not been done so far.
Oral Answers to Questions
Alistair Carmichael Excerpts(1 month, 1 week ago)
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Ellie Reeves
Under the last Government, the former Prime Minister would take helicopters for short journeys at huge waste to the taxpayer. The Prime Minister’s ministerial travel under this Government is always decided with consideration for the most efficient and best use of time and, crucially, in the interests of the taxpayer.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
The Paymaster General and Minister for the Cabinet Office (Nick Thomas-Symonds)
I engage with a range of stakeholders relevant to our relationship with the EU, for example through the UK-EU trade and co- operation agreement’s domestic advisory group, which I last met in September and which includes representatives of the UK fishing industry. The Department for Environment, Food and Rural Affairs is the responsible Department, and has ongoing dialogue with the industry. I recently met my hon. Friend the Minister for Food Security and Rural Affairs to discuss fisheries matters, and I will meet representatives of the Scottish fishing industry in the very near future to discuss their interests in our fisheries relationship with the EU under the trade and co-operation agreement.
Mr Carmichael
I am delighted to hear that those meetings are scheduled, because the review of the TCA is seen by fishing industries around the UK as an opportunity to undo some of the damage that was done by Boris Johnson at the end of the Brexit negotiations. I met the EU Commission official who will be leading the EU side of the negotiations and it is clear that she is informed of their industries’ priorities and has a plan for achieving them. The EU sees this as an important piece of work. The Minister can only do what needs to be done if he is prepared to engage with and listen to the views of our fishing industries and communities.
Nick Thomas-Symonds
I understand and recognise the strong interest in what happens in 2026 when the arrangements that were negotiated by the previous Government end. I say to the right hon. Gentleman that I will listen and engage. We will protect the interests of our fisheries, and also fulfil our international commitments to protect the marine environment.
Oral Answers to Questions
Alistair Carmichael Excerpts(3 months ago)
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Mr Speaker
Order. We have to get through the list. Give me a chance to get through it—we are only on question 6.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
The Chancellor of the Duchy of Lancaster (Pat McFadden)
Genomics is a great British success story, and our genomics databases are vital for world-leading life sciences and health research. The organisations that have such databases have to provide data protection and security training, and have to make sure that researchers can access data only for approved purposes. The opportunities come with risks, which is why the Government will always try to minimise the risks of biological data to protect our bio-economy. We are working on this issue across Government Departments and through our national security structures.
Mr Carmichael
I take it that genomics databases will not be designated as critical national infrastructure, then, which was the question. As the Government seek to reset the relationship with China, will Ministers be mindful of the old maxim that you need a long-handled spoon to sup with the devil, and of the fact that Chinese genomics companies such as BGI do not behave as normal commercial competitors? Will the Secretary of State ensure that the interests of British genomics are not left vulnerable as a consequence of any reset relationship?
Infected Blood Compensation Scheme
Alistair Carmichael Excerpts(9 months, 2 weeks ago)
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John Glen
I completely understand why Paul would want that point to be raised. Those matters go beyond my brief when it comes to compensation, but I think the whole House will recognise that this matter is urgent and that Ministers in other Departments will need to address it properly and in full. I hope that the debate after Whitsun will give us an opportunity to open up all these matters as a House, and that the Government can then respond appropriately as quickly as possible.
Some of the things that happened were completely against the values of the institutions that those individuals were part of. We need to examine this fully and come to terms with it, and make sure that it can never happen again.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
Can we accept that institutional defensiveness has not gone away, and will only go away when we in this House act to make it go away? For the past few years I have been working with constituents who were victims of a Ponzi scheme. They lost millions of pounds. They were failed repeatedly by, first, the Financial Services Authority and then the Financial Conduct Authority. They have been left out of pocket to the tune of nearly £2 million in legal fees, in which the FCA has no apparent interest. Will the Minister meet me, along with other Members whose constituents have been affected and some of the victims themselves, to see what can be done to deliver for them the good intentions that he has expressed today?
John Glen
I am very sorry to hear about the right hon. Gentleman’s constituents. I know from my prior experience that the Economic Secretary to the Treasury, my hon. Friend the Member for Hitchin and Harpenden (Bim Afolami), is best placed to address any issue related to the FCA. I understand the problems of jurisdiction of the FCA, particularly when it comes to unregulated activities, but I do not think I can help the right hon. Gentleman, and, with respect, I think he should address that question to my colleague in the Treasury.
Access to Redress Schemes
Alistair Carmichael Excerpts(10 months, 2 weeks ago)
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Richard Foord
The hon. Member is exactly right to draw a thread between several of these scandals. That is partly because when a new scandal emerges, the organisation responsible is often the organisation charged with redress. Andrew Bailey, while chief executive of the Financial Conduct Authority, said in 2017 that
“it just does not seem to be sensible that, every time one of these things happens, we have to set up something new.”
Beyond the Post Office schemes, we have heard criticism both here and in the press on the infected blood inquiry, as the hon. Member mentioned, and Windrush. That criticism has pointed to intolerable delays or the problematic features that often let the offending firm or institution off the hook.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
I am interested to develop my hon. Friend’s thought about the Financial Conduct Authority. If I am able, I will speak at greater length about it later in the debate. It administers the Financial Services Compensation Scheme, which is a fund set up by levies on financial services companies themselves. It is the maladministration of the FCA or a lack of proper regulation that often leads to these claims being brought. Essentially, the people paying for the scheme have to do so because of the incompetence of the FCA.
Richard Foord
My right hon. Friend is exactly right. The FCA is not directly accountable to Parliament, but is accountable to Parliament through the Treasury. I, too, have had constituents finding themselves in a David and Goliath scenario, trying to tackle issues of unfairness with the FCA.
Likewise, in finance, we have seen the mis-selling of interest rate hedging products and widespread financial misconduct against small and medium-sized enterprises by the Royal Bank of Scotland, for example. Last year, the all-party parliamentary group on fair business banking conducted the first systematic review of compensation schemes in the UK and found flaws common to several of them. Schemes are frequently blighted by unnecessary complexity, delays and a huge emotional and legal burden on victims. Often schemes are shrouded in secrecy and lack proper independence.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
It is a pleasure to follow the right hon. Member for North Durham (Mr Jones). I do so with a small measure of trepidation, as a recovering lawyer; it is 23 years since I left legal practice, so it gives me a certain perspective. He is right to say that we are talking about the imbalance of power between the big corporates, Government bodies and public bodies, and the individual private citizen. Beyond that, the real problem is about culture, because nothing in nature or law says that a big corporate, public regulator or public body has to treat people badly; that is the choice of the people who make up those bodies.
That problem is not new. As I have been listening to this debate, I have been reflecting on the fact that not long after I was first elected to this House in 2001, one of the first pieces of casework in which I became involved related to 36 residents in the south end of Shetland whose asbestos roofs had all failed following the grounding of the Braer, off the south end of Shetland, some 10 years earlier. The casual observer might think it common sense that those roofs had worked perfectly functionally for decades and then suddenly, after a tanker full of Gullfaks crude was dumped on top of them, things started to go wrong. The problem was that they did not go wrong immediately; it took time for their failure to become apparent. As a consequence, those people were at the tail end of those who were claiming from the International Oil Pollution Compensation Funds. Everybody believed before the Braer that the sum put into the IOPC fund could never be reached, but of course the Braer maxed out the fund.
By the time the asbestos roof claimants came along, there was no money left to pay the compensation. However, money was left to defend a court action, which is what happened when my constituents raised one. I have never understood the judgment in the case, but my constituents lost and, as a consequence, were left having to carry their own losses. I am certain that had there been more money in that fund at the start, their losses would have been met. So, yes, this is about the imbalance of power, but it is also about the culture of the organisation concerned. An understanding is required on the part of these bodies, be they corporate or public, of the purpose for which they are there. That is what I wish to draw the House’s attention to today.
Last night, I was fortunate to host a showing upstairs of a BBC documentary entitled “King of the Swindlers”, and the parallels with the Post Office Horizon scheme and its victims are there for all to see. There were only a couple of hundred victims of the “King of the Swindlers”, whereas, as we know, thousands of sub-postmasters were affected by Horizon. The “King of the Swindlers” concerned a Ponzi scheme perpetrated by a financial adviser in the north-east of Scotland, Alistair Greig. He was eventually convicted of fraud and sentenced to 14 years’ imprisonment, which was later reduced to 10 on appeal. The victims came from everywhere from Shetland in the north, down through Orkney, along the highland east coast and the Moray coast, through Aberdeen and down into Angus. They were all people who had lived and worked as builders, tradesmen or shopkeepers, saving a bit here and there. They put their money into this Ponzi scheme and lost out. The constituent who first brought this to my attention lost out to the tune of £130,000, and his mother lost £37,000.
Alistair Greig was responsible for his fraud, but he was able to carry it out as a consequence of the serial ineptitude and incompetence of the Financial Services Authority, later the Financial Conduct Authority. A journalist, Dale Haslam of Aberdeen’s Evening Express, who has done tremendous work exposing what went on, pointed out to me last night that if the FSA had got it right the first time Greig’s wrongdoing was brought to its attention, he would have been stopped after only one victim. However, it missed the opportunity not once, not twice, but three times to stop what he was doing. As a consequence, the number of victims ran to hundreds.
Those who lost out were all small business people who had worked hard, saving £100 here and £1,000 or £1,500 there. They put all that money together and trusted it to Alistair Greig, usually on the recommendation of friends, family and others, because that is how business is often done in such communities. These people did not make that money by flipping properties or coming up with a great wheeze in the City; it was all hard won. Eventually, in desperation, they raised a legal action against Sense Network Ltd, the company that stood above Greig in the financial food chain, but they lost twice: in the first instance, and at appeal.
The legal action pursued by the 95 victims who had the determination, courage and stubbornness to pursue it did serve a purpose: eventually all the victims were allowed compensation from the Financial Services Compensation Scheme. That of course comes with an £85,000 cap, so my constituent who had lost £130,000 was immediately £45,000 down. However, those 95 victims of Alistair Greig who supported the legal action and made the compensation for everybody possible are left with a legal fees bill of £1.9 million; they are having to pay some £30,000 each, although the exact number varies. So my constituent started with £130,000, came down to £85,000, and is left with something in the region of £50,000. Let us not lose sight of the fact that Alistair Greig was able to do what he did only because the Financial Services Authority and the Financial Compensation Authority were poor at doing the job that this House charged them to do.
I invited various people to the screening of “King of the Swindlers” last night. I invited the legal team, including the solicitor who acted for the victims. I will be happy to introduce her to the right hon. Member for North Durham, because she is a sterling example of what good people in the legal profession can do, as a member of what I would still regard as a caring profession.
Mr Kevan Jones
I hate to think that I have given the impression that I am down on all lawyers; some of my best friends are lawyers. If the system is implemented fairly, people can get proper legal advice without it costing a fortune.
Mr Carmichael
I do not disagree with that. I saw enough of that in my time in practice. The right hon. Gentleman knows of my experience with the historical shortfall scheme, and of going into hand-to-hand combat with the lawyers who were instructed by the Post Office. In that case, we were able to make progress for my constituent. A local solicitor, Anne Robertson, a sole practitioner operating in Orkney, took on one of the three biggest firms in London and left them running for cover.
The victims were left with a £1.9 million legal fee because the inadequacy of the regulators left them with no option but to do what they did. We invited the regulators to the showing last night. I invited them in the middle of March; they replied last week in a letter, saying, “No, sorry. We have nothing to add. We are not going to come.” Foolishly, the FCA gave me time to reply, and I had a telephone conversation on Friday night, as I left Shetland on a ferry to go to Orkney, with Chris Wilford, the head of public affairs, and Mark Francis, the director of enforcement and market oversight. Apparently, that is a proper job title; I thought it was some sort of ironic term, but that is what is in his contract. The response was, “Of course we are accountable, but we don’t like being accountable to you. This was an informal process.” All I was asking was for them to come along, sit in room and watch a documentary, along with the people who had lost their life savings to this man, and explain the decision that they had taken. That was all they had to do. They could walk out of the room at the end of the night, and I would be able to ask no more of them, but they were not even prepared to do that. I thought I would be up against some really slick types, but I have rarely come across two more nervous-sounding individuals.
Mr Carmichael
That could be right, but I doubt it. My reputation is as a friendly and approachable character. We went through the process and eventually I said, “If these people had not taken that court action, how much would any victim of Alistair Greig have got back?” The silence was absolutely deafening. I let it run for as long as I could, and eventually I said, “Well, I think I understand now why you are so reluctant to come to the House of Commons next Wednesday.” The call did not go on much after that, but I did say that I thought that the matter required escalation, and asked them to call back on Monday with arrangements for me to speak to the chief executive. I did not get a call, but I did get an email on Monday saying that they had nothing further to add.
The chief executive of the Financial Conduct Authority is Nikhil Rathi. Interestingly, a couple of years ago that job commanded a salary of £455,000 per annum. I calculated that the Prime Minister’s salary is about 37% of what we pay the chief executive of the FCA. For jobs like that, it often feels that the more you pay, the less you get. I contrast the lack of moral courage of people like that, who will not sit in a room with the people whose lives have been affected by the decisions they have taken, to that of some of the people who were in the room last night, including the solicitors Philippa Hann and Robert Morfee. At first, the judge in the Sense Network case was not going to turn up, but he was there in the room. We expect judges to plead the independence of the judiciary, and rightly so, but out of respect for what these people had been though, he was prepared to turn up, watch the documentary and share the space with them. That spoke well to his strength of character.
Another person who was in the room was Judy Greig, the ex-wife of Alistair Greig, who was responsible for the scheme. She divorced him after his crimes came to light. He made himself bankrupt, but she refused to do that, so she has ended up carrying some of his debt. She is now 72 years old. She is working in a supermarket and still supporting the victims of her husband’s criminality. Her remarkable strength of character is in contrast to that of people like the chief executive of the FCA who, despite the very well-funded taxpayer salary that they get, simply lack the decency and moral courage to sit down in a room with their victims.
That is why I think that the question of culture is at the root of the issue. Since I became interested in the last few days in the detail of what was going on in the FCA, I have found very little to offer me comfort. Apparently, the FCA said that 60 of its staff were earning salaries below the £29,500 per year set by the Joseph Rowntree Foundation as the minimum amount that people need to earn to reach an acceptable standard of living. It is a possibility that the FCA will establish its own hardship fund in 2024, if there is enough demand among staff. This is an organisation where the chief executive is paid £455,000 a year.
Some of the commentary on the culture in the FCA is pretty damning. In one anonymous online report, a former colleague described the CEO as
“a very high IQ, but not as much EQ”—
emotional quotient. As we know, culture comes from the top of an organisation downwards. Unite, the union that represents many FCA workers, talks about the “toxic” environment for staff representatives, who have been given “minimal information” by their bosses. Again, this comes down to culture. How the FCA treats its staff reads across to how it treats people like my constituents, who find themselves in need of its services.
We set up the FCA for a reason, and the FSCS for another reason. The FSCS was only supposed to be there in case the FCA failed in any way. It is paid for by companies in the financial services sector, which are regulated, so they pay for the regulation, and for the failure of that regulation. This is something that the Government seriously need to look at soon. In the meantime, if the FCA wants to do anything to persuade me or anybody else in this House that I am wrong about the culture within that organisation, it can put the final sum of £1.9 million in a cheque to the 95 claimants who were the victims of Alistair Greig and Midas Financial Solutions.
Iran-Israel Update
Alistair Carmichael Excerpts(10 months, 3 weeks ago)
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The Prime Minister
My hon. Friend is right to highlight Iran’s influence, including its missile shipments on the surrounding seas, and I am pleased that the United Kingdom is playing its part in doing something about that. HMS Diamond is bolstering our maritime presence in the region as we speak, and the UK has previously interdicted the supply of Iranian missiles being smuggled to the Houthis and others, both last year and the year before. We will continue to be vigilant in the area.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
I hope the Prime Minister has heard the very strong and broad consensus in this House on the need for stability and de-escalation. When he speaks to Prime Minister Netanyahu, will he make it clear to him that if Israel were now to proceed with its much-anticipated attack on Rafah, it would be not only a humanitarian catastrophe for the 1.5 million Palestinians who are sheltering there and make the release of the hostages more difficult, but make that stability and de-escalation more difficult to achieve and, as a consequence, would not have the support of this Government?
The Prime Minister
We have repeatedly raised humanitarian concerns with the Israeli Government. Just the other week, the Foreign Secretary set out our views on the situation in Rafah.
Extreme Weather Events: Resilience
Alistair Carmichael Excerpts(1 year, 1 month ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Alex Burghart
As the hon. Lady will have heard me say earlier, the Cabinet Office has a co-ordinating role that brings together lead Government Departments and local responders. It would be under that guise that different Government Departments would meet to discuss issues of the sort that she describes.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
Even by the standards of what we are accustomed to in the northern isles, the last week has been exceptionally disruptive. I associate myself with the previous expressions of gratitude to the road staff, electricity engineers and others who have gone about their jobs, and to those who are responding even though it is not part of their job. The response of farmers, who just get on with clearing the snow with a bucket on the front of their tractor, has been phenomenal. Is this not a moment to pause and reflect that some of the changes proposed in other parts of Government could weaken our resilience? The switch-off of the copper wire network for telephones and the proposed increase in the response time of the search and rescue helicopter provided by the coastguard from 15 minutes to 60 minutes will leave us in a worse position if they are allowed to happen. Can the Cabinet Office do something to ensure that they are not?
Alex Burghart
I have landed at Tingwall airport in a storm in the summer, and that was frightening enough.
Alex Burghart
No. One can only imagine what it has felt like in the Shetlands over the past week or so. My sympathies are with the right hon. Gentleman’s constituents. To his point about general resilience, the Government are trying to take a whole-system approach to understand exactly how we can work with emergency responders and those who are responsible for our national infrastructure. We are making progress, but there are always areas in which we can do more work.
Oral Answers to Questions
Alistair Carmichael Excerpts(1 year, 1 month ago)
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Mr Alistair Carmichael (Orkney and Shetland) (LD)
The Parliamentary Secretary, Cabinet Office (Alex Burghart)
The Cabinet Office does not hold data centrally regarding personal smartphone use. We are committed to ensuring that Government business is conducted securely and to supporting individuals in meeting their security responsibilities. In March last year, we published guidance concerning the use of non-corporate communication channels for Government business, which set out considerations around the use of private devices.
Mr Carmichael
I may be part of a very small and shrinking group, but I think it is sensible that Ministers, officials and advisers should be able to share their thinking and thoughts in private on occasion. However, the truth of matter is that the constant drip of stories—whether about Boris Johnson, Nicola Sturgeon or anybody else—and WhatsApp messages not being available to hold people accountable, is harming public confidence in government and politics. Will the Minister look again at this to see how we can have good, accountable and transparent government?
Alex Burghart
The right hon. Gentleman raised important points. I draw his attention to the document we published last year: “Using non-corporate communication channels (e.g. WhatsApp, private email, SMS) for government business”. I think he will be particularly interested in the summary table on page two.
Oral Answers to Questions
Alistair Carmichael Excerpts(1 year, 3 months ago)
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Saqib Bhatti
As I said, there will be a duty on the largest social media platforms that will require them to tackle fraudulent adverts. That will have a significant impact in preventing a range of online frauds, including romance scams and scam ads. I will also talk to the Economic Secretary to the Treasury on the hon. Member’s behalf, because the Government have a fraud strategy.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
The Minister for Data and Digital Infrastructure (Sir John Whittingdale)
We have regular meetings with Ofcom and telecommunications providers to discuss the migration from analogue to digital, and in due course the retirement of the copper network. Ofcom has set out high-level conditions for the gradual deregulation of BT Group’s copper-based network in the future, but it is too early to determine the process that will trigger the complete deregulation. Ofcom will consider that in the next regulatory review period.
Mr Carmichael
Last year, some of my constituents in Shetland were without electricity for six days. Moving to voice over internet, they will have a resilience of one hour. What assurance can the Minister give me that my constituents will not be left cut off without communications after the copper network is withdrawn?
Sir John Whittingdale
The decision to migrate from the public switched telephone network to voice over internet is one for the industry, but nevertheless we are following this very carefully. Ofcom has regular discussions, and I, too, have been meeting Ofcom. The right hon. Gentleman is right that we need to make it certain that vulnerable consumers are protected. Ofcom will ensure that providers give them back-up in the event of a power outage, and it will be their duty to ensure that that is sufficient.
Andrew Griffith
The Government are committed to ensuring that the UK has talent that supports research and innovation and drives growth. That is why we are investing millions in the brightest researchers through scholarships, PhD placements and fellowships in technologies such as artificial intelligence and quantum.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
Sir John Whittingdale
I can tell the right hon. Gentleman that the counter-disinformation unit is there to flag up to platforms potentially misleading information, but it has no power to have it removed. I can give him an assurance that it does not identify any Members of this House or professional journalists.
Security Update
Alistair Carmichael Excerpts(1 year, 5 months ago)
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The Deputy Prime Minister
I do not think I have had chance from the Dispatch Box to pay a genuine, heartfelt tribute to my immediate predecessor as Deputy Prime Minister. Having done the job for a few months, I have a particular appreciation of all the work that my right hon. Friend did when he was in that post.
In respect of the volume of prosecutions and convictions, we seek to be as transparent as we can be with the House. I am sure it is something that we can take away and look at with a desire to do as my right hon. Friend asks. I cannot give him a firm commitment at the Dispatch Box, but if it is possible, I shall seek to do so.
We keep the MOU with the ISC under review. We do not have any current plans to change it, but we keep it under review.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
Yet again, we are watching the horse disappear over the horizon and shutting the stable door behind it. Every time we act to take on China, everything the Deputy Prime Minister boasts about is always stated reactively. Just for once, could we get ahead of the curve and take action in relation to genomics and, as I and others have been urging for months now, designate it as part of our critical national infrastructure, so that in a few months’ time, we are not again having to explain another failure?
The Deputy Prime Minister
I say gently to the right hon. Gentleman that he did serve in government and in Cabinet for five years, from 2010 to 2015, so he and other Members of his party need to bear some responsibility for the decisions made, although I would think that they would take pride in the decisions that we took. More recently, under this majority Conservative Government, we have taken a huge range of steps, including passing the National Security Act and the National Security and Investment Act.
The right hon. Gentleman raises a legitimate point about genomics and its relevance to critical national infrastructure. It is not currently designated as such, but in my role in the Cabinet Office, I keep the register of critical national infrastructure under review, and I am exploring the matter.