Fuel Prices

Andrew Bingham Excerpts

Tuesday 15th February 2011 Westminster Hall

[Miss McIntosh]

I will come on to that in a moment, but it would be nice to hear from the shadow Minister whether he feels any pain or anguish, or any need to apologise for where we are, particularly as many hon. Members from all parts of the House have today said that we are where we are. We need an all-party approach to get out of this, and since we know for a fact, from reading Lord Mandelson’s book, that the Labour party, had it remained in government, would have been committed to increasing VAT, we will not take lectures from Labour Members today.

Motoring organisations and some road hauliers have set out their difficulties with a fuel duty stabiliser, and perhaps the Minister in her response will tell us what stage we are at concerning the assessment reached by the Office for Budget Responsibility about how the stabiliser will work in practice. Were a stabiliser to be introduced, is she convinced that the reduction would be passed on to the motorist? If the reduction remained with the oil companies, there would be no advantage in introducing a stabiliser.

Turning to the rebate for remote rural areas, I realise the difficulties in persuading the European Union of such a necessity, but having practised the art, both as a European Community lawyer—now a European Union lawyer—and during 10 years in the European Parliament, I am more well-versed than most in how to persuade the European Union and our fellow member states, many of whose citizens live in equally remote areas. People in rural areas should be entitled to a discount on the rate of duty.

With fuel duties, the principle would obviously have distribution effects, given the greater reliance in rural areas on both private and public transport. We can have a debate and an argument about how the reduction in duty can best be administered, and I realise that a differential duty would require special dispensation, but the UK, in looking to apply a derogation for a lower rate of duty for petrol sold in one area—Scotland, for example—fails to recognise areas such as Northern Ireland, where there is a land border with an area selling fuel at a lower rate of duty. Also, remote areas that are particularly rural and do not have large centres of population, where people do not have schools closer than 13 or 15 miles and have to travel some distance to do a weekly shop, will be particularly penalised.

[Andrew Bingham (High Peak) (Con)]

My constituency is very rural and contains a huge amount of quarrying. The quarries are remote, and most of the stone is carted out by road, with hauliers paying high fuel prices. Stone is a building block for much of the economy, so does my hon. Friend agree that if there were a rural consideration, the benefits would descend to people in non-rural areas?

[Miss McIntosh]

My hon. Friend has provided an appropriate example of a business that depends heavily on road haulage to get its product to market, and I am sure that it would be a particular beneficiary if the fuel duty stabiliser or a rural rebate were introduced.

Domestic fuel is a subject that appears in my mountains of correspondence. One or two people have expressed concern about the possible operation of a cartel, particularly in the north of England—Yorkshire, the Humber and the north-east—in domestic heating oil prices. I welcome the fact that the Government have grasped that issue and are looking into it through, I understand, Ofgem, but I hope that one of the purposes of this debate is to push at what might be an open door, to press the Government to, at the very least, examine both where we are and how we got into this difficulty. My constituents have expressed their concerns in fairly strong terms. One stated:

“I like many other people in this country am fed up with having to pay over the odds in tax for what is to many people an absolute necessity rather than a luxury”.

Another wrote:

“I am the owner of a small business and am extremely concerned about increases in fuel duty, which have hit the small business sector the hardest.”

--- Later in debate ---

[Andrew Bingham (High Peak) (Con)]

Thank you, Mr Turner. I, too, congratulate my hon. Friend the Member for Thirsk and Malton (Miss McIntosh) on securing this debate. Much of what needs to be said has already been said, but I would like to make some quick points on rurality.

There are certain goods that can come only from rural areas. I have alluded to stone from quarries, and there is also milk from our farms. Such goods have to go into urban centres, so the people who transport them are based in rural areas. Big haulage contractors are based in High Peak because that is where the product is. The impact on small businesses based in rural constituencies has already been mentioned, and, if we are not careful, the price of fuel will drive such businesses away from rural areas into urban areas, thereby accelerating the demise of rural towns.

The Ferodo brake linings factory is in my village of Chapel-en-le-Frith. Shops in and around the village exist on the back of that factory and the people who work in it. If we drive such companies into urban areas, our small towns will suffer.

The Countryside Alliance has produced statistics showing that people who live in rural areas spend a higher percentage of their income on fuel because of the lack of public transport. Since I was elected to this place, I have been impressed by the transport in London. There are buses and the tube—there are various ways of getting about that are not available to people in rural areas. The bus I use to come here runs every six minutes, but buses in rural areas run every half hour or less, which makes getting around more difficult. Consequently, people spend more of their income on private transport. I believe that the average rural resident travels about 8,700 miles on private transport, whereas it is about 5,000 miles for an urban resident. That equates to an extra £200 in tax in a year.

[Ian Paisley]

One bus in my constituency comes once a day, and another bus—a charity bus—comes once a week.

[Andrew Bingham]

I am sure that that is right, and I am sure it is the same in other areas. That brings me to considering the solution. I know that the Chancellor is looking at the issue—he said so in the House—and I understand that he is in a very difficult position because of the financial implications. We have spoken about concessions for rural areas. My concern with that is defining what is rural and what is not. I have various small towns and villages in my constituency, such as Glossop, which shares a boundary with Greater Manchester. It may not be considered rural, but one can go a few miles up the road to a little village called Sparrowpit which is very rural. Like my hon. Friend the Member for Carmarthen West and South Pembrokeshire (Simon Hart), I worry that a line will be drawn and people will fall on the wrong side of it.

The answer is the fair fuel stabiliser. I know it is a difficult issue, and I have great sympathy with the Chancellor and the Treasury team who have to determine how a stabiliser would be introduced. Perhaps we need to hold off on the duty rise that is due while we try to get it working. Many of us here are standing up for rural areas. I do not think that people in urban areas really understand how big an issue this is to those in rural areas who fill their car up perhaps two or three times a week if they have to drive here, there and everywhere, and how much that impacts on the household budget.

I thank you for giving me an opportunity to speak, Mr Turner, even though I had not notified you earlier.

--- Later in debate ---

[Mr Hanson]

The hon. Lady might want to, but she cannot hide from the fact that her vote—and the votes of all hon. Members who have spoken today from the Government Benches—has added to the increase in the price of fuel since May last year. That is an uncomfortable fact for them, but that is what they have done. Again, I do not want to focus on the negative, because we have had some positive discussions. However, when attacked, I tend to fight back. Unfortunately, that point was made, so I have to reply on the record.

We have had a number of suggestions, all worthy of consideration. I will look at each in turn. The hon. Lady discussed the issue of the fuel duty stabiliser. The issue was raised during the election, and the hon. Members for South East Cornwall (Sheryll Murray) and for High Peak (Andrew Bingham) also touched upon it today. The fuel duty stabiliser involves some problems, so an explanation from the Minister as to where the Government are on their election pledge from last May would be worth while. The Government’s own Office for Budget Responsibility said recently that the idea of a fuel duty stabiliser is unworkable. I share that view, on behalf of the official Opposition.

In principle, the concept is simple: as oil prices go up, fuel duty will go down; and as oil prices drop, fuel duty goes up. The motorist, therefore, pays more or less the same for fuel and the Exchequer gets more or less the same in revenue. However, in reality, the suggestion is far from simple. On 14 September, the Office for Budget Responsibility published an assessment of the effect of oil price fluctuations on public finances, with the aim of informing the debate. The report found that a temporary rise in oil prices would have a negligible effect on UK public finances, while a permanent rise would create a loss. The Government would find introducing a fair fuel duty stabiliser difficult because, as the head of the OBR, Robert Chote, suggested a couple of weeks ago,

“a fair fuel stabiliser would be likely to make the public finances less stable rather than more stable”.

A 1% reduction in petrol duty would cost the Exchequer around £130 million. The fuel duty stabiliser, depending how it was operated, could cost between £3 billion and £5 billion of public expenditure. The stabiliser was a manifesto commitment, which the Conservative Government wish to carry out, but they need to explain how they will do so and how they will compensate for the loss to the public purse of such a sum. My rural constituents, as well as my urban constituents, will have to find that money from somewhere else, whether in public service cuts or extra taxation. The then Liberal Democrat spokesman, now the Secretary of State for Business, Innovation and Skills, said in opposition that he believed a fuel duty stabiliser would be “unbelievably complicated and unpredictable”, which the OBR has confirmed. We need an explanation of where we are. Is the fuel duty stabiliser still a live option? Do the Government intend to keep their manifesto commitments? What would the cost to the public purse be of the potential loss of income from the stabiliser? Since the election, all we have seen is a rise in VAT to 20%, which has increased petrol prices, not decreased them.

The hon. Members for High Peak, for South East Cornwall, for Montgomeryshire (Glyn Davies), for Carmarthen West and South Pembrokeshire (Simon Hart) and for North Antrim (Ian Paisley) suggested that we look at the idea of a rural derogation, which the Liberal Democrats proposed in their manifesto. The idea seems to have been adopted by the coalition. However, the pilot at the moment is simply for the Northern Isles and for the Isles of Scilly. We have also had representations today for the “island of Ulster”, as the hon. Member for North Antrim called it, as well as from Cornwall and mid-Wales—a very rural area, I know, as pointed out by the hon. Members for Brecon and Radnorshire (Roger Williams) and for Montgomeryshire—and from the hon. Members for High Peak, for Thirsk and Malton and for Skipton and Ripon (Julian Smith). Such areas should be included in such an issue.

How would the Government define a rural area, given the issues raised? Half of my constituency is extremely rural and half extremely urban. Throughout the Chamber, we have had discussion about where the border falls. The difficulties are real. First, why have the areas chosen for the pilot been selected? I could make a strong case for parts of Northern Ireland, where I served as a Minister, parts of mid-Wales, which I know very well, or parts of North Yorkshire.

[Andrew Bingham]

The right hon. Gentleman called for the rural derogation, which I am not against. However, that worries me, because I sort of agree with him. My constituency is rural, but includes two fairly sizeable towns, so where the lines are drawn would concern me. We could have that same problem of people shipping petrol across the lines.

[Mr Hanson]

The issues are real. Again, in response, can the Minister tell me why the pilot areas were chosen? What is the assessment of rolling out a rural derogation throughout the United Kingdom? What are the cost assessments for the pilot areas and, indeed, for the other areas bidding today? How do we change the current scheme of taxing oil when it leaves the refinery, rather than at point of sale?

Oral Answers to Questions

Andrew Bingham Excerpts

Tuesday 8th February 2011 Commons Chamber

[Mr Osborne]

We are absolutely committed to creating the green investment bank. Indeed, we set aside money in the spending review to achieve that, and we will have an announcement in due course.

[Andrew Bingham (High Peak) (Con)]

T5. As the rising cost of motoring and fuel has such a significant effect on rural constituencies such as mine, can my right hon. Friend update the House on any consideration he is giving to mitigate such problems as part of next month’s Budget?

[Mr Osborne]

I completely understand the pressure that motorists in my hon. Friend’s constituency and others are facing, partly due to the increase in the oil price. We have a proposal, in the Budget introduced by the last Labour Government, for an increase on 1 April. As I have said, we are looking at that. We are also considering the case for a fuel duty stabiliser, and we will have announcements on this, potentially at the Budget.

National Insurance Contributions Bill

Andrew Bingham Excerpts

Thursday 13th January 2011 Commons Chamber

I commend the amendment to the House. I hope that the Minister has reflected over Christmas and new year on the arguments that we made in Committee, reflects on those that we have made today and either responds positively to them or at least explains why my right hon. and hon. Friends and their constituents should lose out on the scheme.

[Andrew Bingham (High Peak) (Con)]

I support the general idea and hear the points that Opposition Members make, but we have to remember that in High Peak setting up a business is not easy. It is not easy anywhere in the country, but we need to look at rebalancing the economy, and in the north-west, or in the east midlands where High Peak is, we have to contend with such issues as rurality and communication links that are not of the same gravity in the south-east. Members might recall how I went on about the Mottram-Tintwistle bypass, but that road link in and out of High Peak makes it difficult for businesses to get going and to survive.

I remember setting up a business years ago and how difficult it is. On transport costs, we used to deal predominantly with south-east companies. We had to get goods up from the south-east and deliver them around the country, which created extra costs. Hon. Members might smile, but one of the things I have noticed since being elected to the House is that it is so much warmer in the south. I can assure hon. Members that it is cold in High Peak and that there are extra heating costs and numerous other extra costs and overheads. The measure is an incentive to business men and, importantly, new business men to start their businesses in the north.

[Dr Creasy]

I draw the hon. Gentleman’s attention to the fact that business men and women in the south-east may well be familiar with a concept called the living wage, which reflects the high cost of living in London and therefore some of the difficulties that new employers might face in attracting staff because they have to pay a higher wage in the south-east. It is not all grim up north.

[Andrew Bingham]

We have expensive houses in High Peak—I have seen something on my BlackBerry today about house prices being expensive. We have issues, but it is not grim up north. Speaking as someone who is technically the Member for Royston Vasey, as the programme concerned was filmed in my constituency, I implore all southern MPs to come to High Peak. It is not grim. [Interruption.] It is beautiful. Thank you; we agree on something.

I reiterate the point that there are challenges to setting up businesses outside the south-east—for example, slower broadband. That is another hobby-horse of mine. The measure is an incentive. It will get local people setting up local businesses in the north and outside the south-east, which will rebalance the economy. I hope that more businesses will flow up north to High Peak and other constituencies. The measure is an excellent policy. We hear all about the cuts, but they are having to be made because of the economic carnage left by the Labour party. If we acknowledge that, we might get somewhere.

[Stephen Timms (East Ham) (Lab)]

I am very grateful to my right hon. Friend the Member for Delyn (Mr Hanson) for tabling the amendment and for the fact that he has already referred to the Thames Gateway. I want to refer to issues associated with the Thames Gateway area and the borough I represent, Newham, together with my hon. Friend the Member for West Ham (Lyn Brown) who is in her place.

It is clear that the Government have simply got this wrong. If we consider the criteria that the Government have said should be applied to choosing where this incentive is available, as my right hon. Friend has said it is in those parts of the country where the proportion of public sector dependence is high that we need to encourage new businesses to start up and take on employees. Of course that is exactly the situation and is what is required in the Thames Gateway area on the east side of London. It is absurd to omit from the scope of this initiative areas that the Government have themselves identified for the promotion of new business growth.

I put it to the Minister that he is not being invited to support the policies of the Labour party or, indeed, any other institution; he is being invited to support the policies of the Prime Minister. It is extraordinary that the one area of the country where the Prime Minister has called explicitly for the creation of Silicon Valley-style economic regeneration based on high-tech start-ups is being missed out from the initiative. Let me refer the Minister to the speech that the Prime Minister gave in east London on 4 November—his east end tech city speech—and point out some of the comments he made. The Prime Minister said:

“Only three years ago, there were just fifteen technology start-ups around Old Street and Shoreditch…it’s clear that in East London, we have the potential to create one of the most dynamic working environments in the world. And I believe we can really turn this vision into a reality.”

I agree with the Prime Minister. I am baffled by the fact that in this Bill the Prime Minister’s initiative is being undermined, and I want to find out from the Minister why that is so. I hope he will accept the case that my right hon. Friend the Member for Delyn has made and, even at this late stage, accept the amendment.

Independent Financial Advisers (Regulation)

Andrew Bingham Excerpts

Monday 29th November 2010 Commons Chamber

[Guto Bebb (Aberconwy) (Con)]

I congratulate my hon. Friends the Members for West Worcestershire (Harriett Baldwin) and for Wyre Forest (Mark Garnier) on instigating this debate. I was unable to attend the Westminster Hall debate on 20 October, but the transcript indicates the quality of debate that we have in this House on occasion.

Many issues have been discussed at length, so I will attempt not to repeat what has been stated by other hon. Members. However, I will highlight some areas of concern. I concur with hon. Members who believe that the FSA is taking a sledgehammer to deal with problems that are not great enough to warrant it. The FSA’s proposals will damage choice and result in small businesses being forced out of trading. It will affect the choice available to people who live in rural communities in particular. As has been stated, the proposals discriminate against older members of the financial advice community. There will be an effect on the availability of advice and support for those who are less wealthy in our society. All those problems must be addressed.

On damage to choice, Ernst and Young estimates that as a direct result of the proposals, there might be a reduction of about 50% in the number of financial advisers who are willing to carry on trading and that there might be as few as 10,000 fully accredited financial advisers with about another 10,000 providing restricted services. Such a reduction is unacceptable. Even the FSA states that there might be a loss of as much as 25% in smaller firms who are willing to provide this service. It is difficult not to conclude from those figures that the proposals will affect choice. I find it hard to accept the FSA’s argument that it is bringing forward the proposals to serve consumers and give them more protection and choice.

[Andrew Bingham (High Peak) (Con)]

Does my hon. Friend agree that as well as removing choice, the proposals might lead to people not bothering to save—at a time when people need to save—because they cannot get advice on how to do so or on where to put their money?

[Guto Bebb]

I accept that point. In particular, I believe that those who are less wealthy in our society will be discriminated against, even though there should be greater encouragement for them to save than other people. That issue relates directly to the damage to choice.

Although I share the Treasury’s view that there is a need to ensure that advice is of a high quality and accept that there has been mis-selling and bad advice—I do not argue against the need for a degree of regulation—it is difficult to accept proposals that even the FSA accepts will result in a reduction in the services that are available to the public. In particular, I remain unconvinced of the merits of the examination process being the be-all and end-all. Are structured learning and examinations really a substitute for experience, integrity and honesty? If I were looking for a financial adviser, those qualities, rather than an exam, would be the first on my list.

--- Later in debate ---

[Nia Griffith (Llanelli) (Lab)]

I recently met a group of independent financial advisers who serve Llanelli and the surrounding area. They fully understand the need to have a properly regulated industry, and the need to improve consumer confidence. They want high standards, and I can assure hon. Members that they simply would not get away with it if they did not have high standards, particularly in a close-knit community, where everyone knows whether they have done well or badly in their last transaction. Their next custom really does depend on that. They also made the point that they already have certification. In addition, many of them have a great many years’ experience. They also accept that new entrants to the profession need proper qualifications and training.

A number of difficulties have already arisen with the new scheme. The first relates to the availability of slots to take the exams at the examination centres. One independent financial adviser in my constituency is waiting for a slot to take an exam in January in Bristol. Now, Madam Deputy Speaker, there is nothing wrong with Bristol, except for the fact that it is some considerable distance from my constituency. There is also the inconvenience of having to travel there in the winter, to fill a particular slot for a particular examination. If that slot were not available, they would have to go somewhere else.

[Andrew Bingham]

Does the hon. Lady agree that, if grandfather rights were to be introduced, as many of us wish, it would not only be fair to existing IFAs but release more slots so that new ones could come into the market, thereby increasing competition and choice for consumers?

Independent Financial Advisers

Andrew Bingham Excerpts

Wednesday 20th October 2010 Westminster Hall

[Harriett Baldwin]

I thank my hon. Friend for that helpful suggestion.

I would also like to ask the Minister how changing from commissions, which are currently exempt from VAT, to advice, which will attract VAT, will not add a further cost for consumers.

[Andrew Bingham (High Peak) (Con)]

On the subject of commissions, the IFAs in High Peak who have spoken to me are concerned that removing the option of commission and replacing it with up-front charges will prevent people from getting the independent financial advice they need. Conversely it will prevent IFAs from taking the exams, because of the downturn in work. That means many people will not get the independent financial advice they will need.

[Harriett Baldwin]

Yes, that is a question to be considered as well.

Does the Minister really believe that consumers should not be allowed to choose whether they pay explicitly for advice or whether they pay through commission? Does he believe that it is consistent with UK legislation retrospectively to change the qualification regime for a whole class of practitioners? Finally, does he agree with one commentator, who described the RDR as

“a sledgehammer to miss a nut”?

Equitable Life (Payments) Bill

Andrew Bingham Excerpts

Tuesday 14th September 2010 Commons Chamber

[Andrew Bingham (High Peak) (Con)]

I am conscious that many Equitable Life policyholders will be watching this debate this evening. Consequently, it is worth reiterating that the purpose of the Bill is to facilitate and enable the making of payments to those who have been affected. That is a fact of which we on the Government Benches can be proud. In just four months we have progressed more than the Labour party managed in 10 years. I am also pleased to hear that all parties will support the Bill this evening—although we should not be too self-congratulatory just yet.

Equitable Life members will be greatly heartened to learn that payments now seem to be imminent, but they are equally concerned about the likely level of those payments. I, along with many others, signed the EMAG pledge before the general election. Many Government Members are in the Chamber this evening because we signed that pledge, and because we are determined to prove our intention to try to honour it in the best way we can.

[Bob Stewart (Beckenham) (Con)]

When we gave that pledge, we gave our word. It is difficult for all of us who signed the pledge not to give Equitable Life members—often people who will have put in their life’s savings—fair, decent treatment and a proper compensation package. Does my hon. Friend agree with that?

[Andrew Bingham]

I do agree with that; indeed, that is the point that I am making. We signed the pledge and we are here to try to deliver on it. However, as we try to deal with the economic carnage left to us by the Labour party, the fact that we always said—I think that this was the exact phrase—that whatever scheme was put in place would be subject to the impact on the public purse has become a more stringent condition and more restricting than we ever believed possible.

It is a crying shame that the Labour party did not deal with the issue earlier, before—to quote the right hon. Member for Birmingham, Hodge Hill (Mr Byrne)—there was “no money left”. Had the previous Government done so, it would have been easier to make a more generous and just settlement. The decent thing at the right time would have saved so much pain and heartache for so many of my constituents in the High Peak and so many constituents of fellow Members. We find ourselves in a position where we wish to honour our promise—our pledge—yet we are hampered in our efforts by the rashness of our predecessors.

I am conscious that many of my colleagues wish to speak in this debate. In accordance with your earlier wishes, Mr Deputy Speaker, I am determined to be extremely brief. However, I would ask the Minister to remember the pledge that we all signed. EMAG and the Equitable Life members are realists. They understand the difficulty that we face, given the economic carnage, as I have described it. They find it difficult to accept the recommendations of the Chadwick report. I would therefore ask that when the comprehensive spending review is complete, Equitable Life should be given a special place.

The Minister has my sympathy as he tries to perform this most difficult of balancing acts—but I have to tell him that most of the sympathy goes to my constituents in the High Peak, so let us not implement Chadwick without serious thought. I know that we want to expedite full and final payment swiftly. However, if a way could be found to increase payments, even if it meant spreading them across a longer period—albeit in a way that ensured that the administration costs did not eat up huge amounts of whatever funds were available—I feel that that could be made acceptable to Equitable Life people, who have waited too long for what I hope will not be too little.

Parliament has undergone a difficult year for its reputation. This Bill gives us a chance to start salvaging that reputation, but if we get it wrong, we will drive it further into the dust.

Equitable Life

Andrew Bingham Excerpts

Thursday 22nd July 2010 Commons Chamber

[Mr Hoban]

I welcome my hon. Friend’s comments. Many people’s confidence in saving has been shaken as a consequence of what happened at Equitable Life, but she will recall that last month, my right hon. Friend the Chancellor announced reforms to the regulation of financial services, which will include a new consumer champion—a consumer markets and protection authority. That is one way to help to improve regulation and to give people confidence about saving for their future.

[Andrew Bingham (High Peak) (Con)]

I congratulate the Minister on the speed with which he has dealt with this matter compared with the previous Labour Government. He is looking to make payments in mid-2011, which is a great deal better than the other lot led us to believe, but winter is coming up—winters tend to be a bit colder in the High Peak than in other constituencies—so is there any opportunity to make interim payments?

[Mr Hoban]

That suggestion has been made on a number of occasions, and I thought very carefully about interim payments. It is difficult to make an interim payment before the scheme is designed. Such payments would add complexity and delay to the creation of the scheme. When the commission considers its findings, I hope it may well decide that certain groups should receive payments in priority to others.

Equitable Life

Andrew Bingham Excerpts

Tuesday 20th July 2010 Westminster Hall

[Nicola Blackwood]

Yes, and that speaks to the earlier comments on the need to protect and enhance the saving culture and on sending the right message to people that they can put faith in how we regulate savings.

Could the Minister comment on two proposals that might address the concerns about the Chadwick process which EMAG has raised with all of us? First, the Chadwick report should not be the foundation of a payment scheme but, rather, one of the resources used in creating an independent payment scheme. Secondly, the final assessment of losses should accurately reflect the cost that Equitable Life members have borne.

[Andrew Bingham (High Peak) (Con)]

We have all received lots of letters from EMAG, as candidates and as Members of Parliament, but two things have not been mentioned today—the dependants of policyholders who are now deceased because there has been such delay, and the issue of not means-testing such people. Does my hon. Friend agree?

[Nicola Blackwood]

I believe that those issues were raised on 17 March and that there might have been a subsequent commitment. However, hearing the Minister’s confirmation would be helpful.

Two issues are at stake in the process. The first is purely financial.

Budget Resolutions and Economic Situation

Andrew Bingham Excerpts

Thursday 24th June 2010 Commons Chamber

[Nick de Bois (Enfield North) (Con)]

Thank you, Mr. Deputy Speaker. I shall do some immediate live editing to meet your request.

As a relative newcomer to the Chamber, let me say that we need to remember that there is no such thing as free money. The vast sums that we are discussing have had to be earned by people, and those same people will pay the price for the failed policies of the previous Administration. We should bear in mind the fact that they will be making sacrifices because of Labour’s mistakes.

In a former life, I was fortunate enough to be able to run my own business. During 20 years in the private sector, I have enjoyed the ups and downs that go with that territory, as well as sharing the challenges and opportunities that all families face. Given that reality, I recognise that this Budget, and the legacy we have inherited, will hurt people, and will hurt some in their pockets. Obviously, no Chancellor would wish to give such a Budget, but it is the one that any responsible Chancellor would have to give.

We are like the receivers coming in to clear up the chaos left by the previous owners. It falls to us to tell the shareholders, the staff and stakeholders what must be done to save them from bankruptcy. In government, Labour Members were always keen to hold company directors to account for their mistakes, and would often pursue criminal prosecution. I notice that there is not the same alacrity to do so with the right hon. Members for Kirkcaldy and Cowdenbeath (Mr Brown) and for Edinburgh South West (Mr Darling).

In the limited time available, I want to focus on enterprise in the Budget, because my constituents in Enfield North will welcome steps to protect jobs and create an enterprise environment that can create new jobs—and why not? Given the 15% annual increase in the number of jobseeker’s allowance claimants under 24 and the 30% drop in the number of vacancies, jobs are clearly a key issue in our area.

By reducing the burden of taxation and regulation, the Budget will give business the confidence to invest in the long term, which is crucial. The hon. Member for Chesterfield (Toby Perkins) suggested that the tax cut for companies would be of no value and would do nothing except, perhaps, create extra profits for those involved. That is nonsense. According to a survey of its members by the Federation of Small Businesses, 42 per cent. of small firms will use savings from tax cuts to invest in growing their businesses, 20% will use them to employ more staff, and some 22% will try to invest in new services and products. We must allow our companies to invest and, in doing so, create jobs.

I welcome the benefits to increase the level of business rate support temporarily for new businesses. We are trying to introduce help in the regions, and the exemption from national insurance for the first 10 employees will certainly be welcome. Let me, however, introduce a note of caution, and ask my colleagues to bear it in mind. I do not want to see the emergence of a series of phoenix companies that may wish to take advantage of the exemption as an aside. This is not the occasion on which to discuss the merits of phoenix companies, but they have the potential to abuse what is otherwise a very welcome policy.

Above all, I welcome the Government’s commitment to urging banks to promote small and medium-sized enterprises in particular. That too is crucial. Many people in my constituency and—I declare an interest here—in my own experience have seen the abject failure of banks, some of them owned by the people, in that regard. Many pursue a twin-track approach: they tell us that they are publicly committed to lending to SMEs, while in the real world actively discouraging them from applying for loans. Such disgraceful behaviour should not be allowed to continue without comment. I for one will be watching the banks carefully and holding them to account in the future. Their behaviour explains why, according to the FSB report, only 18% of its SME membership apply for loans, and only 9% are awarded them. SMEs are being discouraged from applying, and that is distorting the certificates.

[Andrew Bingham (High Peak) (Con)]

I agree with what my hon. Friend has said about the banks. Will he also acknowledge that hard-working counter staff are being criticised by members of the public although they are not to blame for the difficulties that the banks have caused? They have been working very hard, and they are being unfairly criticised.

[Nick de Bois]

I thank my hon. Friend for highlighting that distinction. Indeed, it does not apply only to those working on the shop floor. Many senior managers are clearly being directed to follow a policy which—I am extremely pleased to note from the Budget—we are prepared to challenge. The Red Book refers to a review of the way in which banks should respond to the need to lend in the future. I realise that Britain needs its banks, but the banks need to play their part openly and honestly, and I look forward to seeing that happen. It is a key part of the proposals outlined in the Red Book.

This is a necessary Budget. It is a tragedy for our country that every 20 years or so Conservative Chancellors must make difficult decisions and accept public unpopularity for sorting out the mess left by their opponents. That has now happened again. I dislike many of the measures in the Budget, but I support them because I dislike even more the idea of our country literally going bankrupt. I hope that many of the tax rises that have been announced will eventually be reversed as our economy grows over the coming years, but our priority now is to stop the country slipping into a spiral of debt-driven decline, to rebuild our businesses, and to create jobs and opportunities to turn our economy round.

Economic Affairs and Work and Pensions

Andrew Bingham Excerpts

Tuesday 8th June 2010 Commons Chamber

[Andrew Bingham (High Peak) (Con)]

Thank you, Mr Deputy Speaker, for allowing me the opportunity to deliver my maiden speech in the House. May I compliment preceding speakers from across the country who have given their own maiden speeches today? The right hon. Member for Oldham West and Royton (Mr Meacher) did not make his maiden speech, but I compliment him on a speech he made in the House some time ago on post offices, and on speaking against the then Government.

I begin my speech by acknowledging and paying tribute to my predecessor, Tom Levitt, who was MP for High Peak for 13 years from 1997. In my seven years as a candidate in High Peak, he always treated me with the courtesy befitting a Member of the House. A steadfastly loyal Member of Parliament, and an assiduous attender of debates, he took the decision late last year not to stand for re-election—an action to which he referred in his maiden speech 13 years ago as “the chicken run”.

I am especially proud to represent High Peak, not just for its beauty and its many attractions, but as someone born and bred in the area. As we move towards the summer recess, I would like to recommend High Peak to fellow Members as a wonderful place to take their summer holidays. It is a large constituency covering over 200 square miles and containing some of the most beautiful countryside in Britain. I have listened to many maiden speeches over the past few days: everyone proclaims that the represent the most beautiful seat in Britain, but they are all welcome to challenge for second place.

In Buxton, we have numerous architectural delights, including the crescent, the Devonshire dome and the renowned Buxton opera house, which is a fabulous example of a Matcham theatre—one of the finest in the country—and the venue for the Buxton festival, which is an opera and literary festival to rival anything Glyndebourne has to offer, and one graced only last year by my right hon. Friend the Prime Minister. Buxton is also the home of the world famous water, which is oft seen being consumed at major sporting events across the world, and more recently by President Obama. If he continues to consume Buxton water and benefit from all its life-giving properties, he may well live up to his election slogan, “Yes we can.”

In the north of High Peak, the town of Glossop has a different character from Buxton, but it is its equal in every way. With its industrial architecture, it shows a different face of High Peak, and one that tourists all too easily miss. The neighbouring village of Tintwistle gave us Vivienne Westwood. It has distinct problems with traffic—something to which I shall return before I conclude. Glossop has the proud distinction of being the smallest town to have a team in the highest level of English football. At the time, Glossop North End—last year’s Wembley finalists in the FA vase championship—was owned by Mr Samuel Hill-Wood, a former member of the House and predecessor of mine, who eventually left the town to concentrate his efforts at Arsenal, where his family still retain a considerable interest.

I would add at this stage, for those Members who are fans of “The League of Gentlemen”, that that television programme is filmed in Hadfield in my constituency, so therefore I assume I am by default the member of Parliament for Royston Vasey. The Hope valley covers a large area, arguably the most beautiful area of all, against very strong competition, all of it contained in the Peak District national park, which is the oldest national park in the country, and reputedly the second most visited in the world after mount Fuji.

The caves of Castleton, which are the source of Blue John stone—unique to those caves and mined since Roman times—and the southern end of the Pennine way in Edale are particular delights. It is an area in which the farming community plays a crucial part in making High Peak what it is. They have suffered much in recent years, and they are a group whom I hope to stand up for in the House. I could go through High Peak village by village, as they all have their own attractions, but the tradition is to be brief—I am conscious of that, and there are lots of other nervous people trembling in the wings—so I will just mention that my home village of Chapel-en-le-Frith is the birthplace of Ferodo brake linings, and that New Mills is the home of Swizzels Matlow, which makes the famous loveheart sweets. Containing messages such as “Want you”, “Need you”, and “Be mine”, they are very much the flavour of the new coalition.

It would not be right to mention High Peak without reference to its famous limestone, which is quarried in great quantities in the south of the constituency, providing jobs and economic benefit for the whole community. Indeed, my right hon. Friend the Secretary of State for Work and Pensions remarked on the vastness of the quarries on his visit to the constituency several years ago.

As we move into the stormy waters ahead caused by the deficit left by the Labour party, I commend to the House the actions of the local High Peak borough council which, when it entered a strategic alliance with the neighbouring Staffordshire Moorlands district council, has driven out over £1 million of saving, yet managed to maintain and improve front-line services for its residents. The strategic alliance continues to make strides forward under the leadership of Councillor Tony Ashton, together with his team of Conservative councillors and supported by the excellent and determined staff of that council. This small borough council has shown the way to us all. The savings are there to be made, and we should heed its example.

As the coalition embarks on this Parliament, and as I embark on my first but I hope not last term as the Member for High Peak, we are aware of the tough times ahead. I am and always will remain aware of the problems facing my constituents. In Glossop and Tintwistle, the Tintwistle bypass is an issue that has meandered on for many years. It was promised by my predecessor 13 years ago but has still to be built. It is a difficult issue. There are difficult environmental consequences to be considered but something needs to be done to alleviate the traffic problems suffocating Glossop. Tintwistle shudders and resounds to the thundering of wagons as they cross the Pennines. I know that money is tight and will be for some time, but if money becomes available a workable solution may be achieved.

Both Buxton and Glossop have health service issues. In Glossop, where the Tameside and Glossop primary care trust prevails, my residents are reliant on Tameside hospital, the subject of much debate locally. In Buxton and the remainder of the constituency, Derbyshire County PCT is responsible for provision. I will meet the PCT to discuss provision for hospitals in Buxton and care outside the hospital in the central area.

I shall deal quickly with another issue—pensions. I have made many efforts over several years to help the members of the Turner and Newall pension scheme and I will continue to make those efforts, as it is still in assessment for the Pension Protection Fund. I have met the PPF and will meet the independent trustee, and I hope to get the best result for my residents.

In summary, the High Peak is a beautiful place to live, and I hope that I can make the residents of the High Peak as proud of me as their MP as I am of them and the constituency.