Home Affairs

Andrea Leadsom Excerpts

Thursday 9th May 2013 Commons Chamber

[Yvette Cooper]

The Home Secretary is targeting net migration, which she knows is affected by British people leaving the country—by people leaving as well as people arriving. I state the figures again: a 72,000 drop, 27,000 more Brits leaving the country and 20,000 fewer coming home. People obviously do not want to come back to Britain under her Government. That is the problem that she has to face.

[Andrea Leadsom (South Northamptonshire) (Con)]

Does the right hon. Lady accept that it is utterly astonishing that she is not apologising to the British people for creating such an enormous amount of heartache and grief for them? Rather than encouraging my right hon. Friend the Home Secretary in her attempts to put right the failings of the right hon. Lady’s Government, she is standing there and criticising. Should she not be apologising?

[Yvette Cooper]

Nice try from the hon. Lady, but the facts show that there is a series of problems in this Government’s measures on immigration. I agree that we should have had transitional controls on migration from eastern Europe. There are things that the Labour Government should have done but which did not happen. They should have happened.

We should have people working together. There are many areas on which we agree with the Government and will support the measures that they are taking, but look at what has happened, particularly on illegal immigration. The number of people refused entry dropped by 50%. The number of people absconding through Heathrow passport control trebled. The number caught afterwards halved. The backlog in finding failed asylum seekers has gone up. The number of illegal immigrants deported has gone down. This is not a catalogue of success on immigration from the right hon. Lady’s Government.

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[Andrea Leadsom (South Northamptonshire) (Con)]

It was a great Queen’s Speech. It was succinct and focused, and I hope that my speech follows suit. It is fantastic that we get the opportunity, during the debates on the Queen’s Speech, to have a free-ranging discussion. I want to cover four specific proposals in Her Majesty’s speech, the first of which is High Speed 2.

My views on HS2 are clearly on the record, so I will not go into them now. However, I hope that the thoughts, feelings and concerns of my constituents will be taken into account in the new consultation on compensation. I urge those on the Front Bench to consider seriously the merits of a property bond. The high-speed link will be a very long time in coming. Unfortunately, too many of my constituents are trapped in their homes and unable to move. It is not that their house prices have dropped in value—they cannot sell at any price. The advantage of a property bond, whereby the Government underwrite any loss once the line is built, is that it would enable them to get on with their normal lives in the interim. I therefore urge the Government to consider this option seriously.

The Anti-social Behaviour, Crime and Policing Bill is vital. It is all about the quality of life of our voters in this great country. It is true to say that antisocial behaviour utterly destroys quality of life, whether it is violence, bullying, littering or dangerous dogs. All too often, antisocial behaviour is carried out by kids who have had the worst start in life. I have spoken many times on this subject in this Chamber. If we really want to solve antisocial behaviour we have to focus on the earliest years. In all of our rehabilitation and youth policies, we need to focus on getting the very youngest a good start in life, as this will mean that they do not join the conveyor belt to antisocial behaviour and crime. We need a revolution in support of the perinatal period. We need to work far earlier with those who are pregnant to help them deal with poor maternal mental health and, later, problems relating to poor attachment with their babies.

As I have said before in the Chamber, all of a baby’s brain development takes place in the first two years of life. In the first year, it builds 1 million neural connections per second, while its entire lifelong emotional resilience—its ability to deal with the things that life throws at us—is largely determined by the age of two. Anything we do later to rehabilitate offenders—for instance, to sort out speech and learning difficulties, attention deficit hyperactivity disorder or any of the problems that lead young people into a life of antisocial behaviour and crime—would be much better done through prevention policies in the earliest years. I urge again the Front-Bench team to work closely with the Department of Health and the Department for Education to consider a revolution in the perinatal period.

I want to talk briefly about the immigration reform Bill. The Opposition caused these problems. It was undoubtedly their failure to put in place proper transitional controls that caused the heartache, the sense of injustice and the resentment of immigration that we see today. I agree with hon. Members who have said that immigration has been good for this country. I absolutely accept that point. EU immigration has been good for this country, but it has gone too far, too fast, without any controls and, specifically, without a close focus on fairness for the existing population as against fairness for those who would join this country. The right hon. Member for Normanton, Pontefract and Castleford (Yvette Cooper) ranted that it was not the time to ramp up the rhetoric on immigration. I could not agree with her less. It is essential not just to talk about it, but to act on it, and that is why the Bill is vital.

[Ms Abbott]

Does the hon. Lady accept that there has never been a time when immigration was not discussed, whether in Parliament or the media? Every day for years, there has been a story in the tabloid press. We have had major immigration and nationality Bills in every Parliament. Furthermore, we know where over-heated rhetoric on immigration goes in a time of recession, and it is not a nice place.

[Andrea Leadsom]

I am grateful to the hon. Lady for that comment, because it highlights precisely my point. She is subliminally implying that this generates racism, and that has been the problem with the debate for the past decade. Particularly under her Government, anybody who wanted to talk about the problems of uncontrolled immigration was somehow racist. I have just said that immigration has been of huge benefit to this country—I hope she was listening to that—but at the same time fairness is vital to the interests of this country.

I will now address that fairness aspect, which is where I think the Bill is incredibly important. It should ensure that those who have paid into the system benefit more than those who have not. This is not just a problem that concerns Britain; it also concerns Germany. The Fresh Start project, of which I am a founding member, recently went to Berlin to talk to German politicians and businesses. They feel that immigration has benefited the German economy, but that the fact that people can migrate there for the sole purpose of claiming benefits is simply unfair and generates resentment.

Constituents have said to me at surgeries that it is totally unfair that they, having potentially paid into the Exchequer coffers for years, get so little back if they lose their job. The Fresh Start project has assessed what happens on the continent. Many countries, including Germany and the Nordic countries, have a far more Bismarckian system of benefits payments, which means that if someone who has paid into the system for years loses their job, they can, for a period, generate half of their previous income while they get themselves back on their feet. The system in the UK is very different.

If we are to address the resentment over access to benefits for migrants, and access to benefits for those who have paid in versus those who have not, we need to look seriously at reducing benefits for those who have never contributed either because they have never worked here or because they have recently migrated here. Those who have paid in, as well as school leavers who have not yet got a job but whose parents have paid in, should get a higher level of benefit. That would be fair. In dealing with the impact of immigration on voters’ quality of life, fairness is key.

[Helen Goodman]

The hon. Lady exaggerates her point about what she calls benefit tourism, but to say that she has got it out of perspective is not to say that there are not significant economic incentives for people to come to this country. Surely, immigration has more likely been fed by the fact that if someone comes here and works hard for, say, three years and saves up £3,000, they have enough to put down a deposit on a house in an eastern European country, but not here. The disparity in exchange rates means that the incentives are totally different.

[Andrea Leadsom]

I completely agree that the vast bulk of people who come to this country come here to work, but equally the hon. Lady must agree that more than 40,000 EU immigrants are claiming child benefit here for children who do not live in this country. If she wants to write that cheque herself, she can then claim that it is a trivial sum, but to my constituents, who are writing those cheques—they are the taxpayers—it is utterly unacceptable and unfair.

Finally, I would like to deal with an excellent Bill introduced in the last Queen’s Speech. The purpose of the Financial Services (Banking Reform) Bill is to address the institutional failure of the banking system. Recent scandals such as LIBOR rigging and swaps mis-selling have left voters utterly disgusted and contemptuous, not just of the culture of banking, but of the seeming immorality of those at the top. I know that the Government have made great efforts, as has my hon. Friend the Member for Chichester (Mr Tyrie) through the Banking Commission, to weed out the culprits and to put in place reforms that will minimise the chance of a repeat of this nightmare.

In my opinion, however, another reform is long overdue. We need to spark a revolution in bank competition to facilitate the widest range and type of new financial services entrants and to force the big oligopoly banks to reprioritise excellence in customer service. That revolution is bank account number portability, which would make it possible for us all to switch banks instantly, taking our bank account numbers with us, and would remove the need to fill out endless new forms and re-establish new standing orders and regular payment instructions.

Bank account portability would have four key advantages. First, it would lead to a revolution in competition and bring in new entrants. At the moment, 80% of small and medium-sized enterprises and personal current accounts are banked with the big four oligopoly banks, so new competition—new entrants—is essential. Secondly, it would spark a revolution in customer service and product innovation in the payments sector. Thirdly, it would impose a significant reduction in fraud resulting from systems failures due to the out-of-date legacy systems in the oligopoly banks. I ran an investment banks team during the ’90s when there was a massive merger of banks, broker dealers and funds managers. Each of the oligopoly banks has up to 20 legacy systems. It is unbelievable. The recent failures of RBS-NatWest systems to make even simple payments highlighted that these systems are held together with string and sellotape.

Fourthly, a means of resolution is terribly important in banking. If we have another financial crisis and bank failure, rather than people lining the streets to take out their money, we need a means of instantly transferring bank accounts from a failed bank to a survivor bank. Cyprus is a case in point. The British Government decided to underwrite customer deposits in London branches of Cyprus banks, but we had no means to move customer bank accounts elsewhere. Bank account number portability would solve the very significant issue of resolution.

I am delighted that the Financial Secretary to the Treasury is consulting on introducing a new payments regulator in a Government amendment to the Financial Services (Banking Reform) Bill. An independent regulator would deal with the big problems that the Payments Council and VocaLink—the two bodies governing and providing the infrastructure for payments—are governed by the oligopoly banks themselves. It is the most astonishing closed shop. However, I urge the Government to go further and require the new regulator to evaluate bank account number portability properly. Seven-day switching is just more string and sellotape on an already broken system.

This is a positive and optimistic Queen’s Speech, focusing on a small number of high priority Bills for this Government. I believe they will make strong improvements to the quality of life for our voters, which is what it is all about. However, I hope that Back Benchers such as myself will be able to contribute our ideas to making the legislative programme even stronger.

--- Later in debate ---

[Mr Llwyd]

Perhaps not.

Much of the debate on immigration is dictated by the drumbeat of the United Kingdom Independence party. Why should we spend hours discussing this issue, just because Farage and his bunch think that they are on a roll? There was one council election in Wales last week. It was on Ynys Môn—Anglesey—and UKIP stood in every ward. It did not take a single seat, however. Plaid Cymru took four times as many seats as Labour, and the Conservatives failed to win even one. The Lib Dems, God bless them, took one.

[Andrea Leadsom]

I want to make it clear that this legislation has nothing to do with UKIP; it has everything to do with fairness for the people of this country who pay their taxes day in and day out and who do not see why someone who has never contributed should come here and use our services. What does the right hon. Gentleman have to say to that?

[Mr Llwyd]

I heard the hon. Lady make that point in her speech, and I did not agree with everything that she said. That was one of the points that I was unsure about, and I am equally unsure about it now. We must look at the issue carefully, but we need to detoxify the debate. We need to forget about UKIP, the Daily Mail and the Daily Express, and get stuck in and have a sensible, cool-headed, factually informed debate. We would do our constituents a great service if we were to adopt that approach. That is probably what the hon. Lady is saying and, to that extent, I agree with her.