Wild Animals in Circuses (No. 2) Bill

Andrew Rosindell Excerpts

2nd reading: House of Commons & Programme motion: House of Commons
Tuesday 7th May 2019 Commons Chamber

[Simon Hoare (North Dorset) (Con)]

It is a pleasure to follow the hon. Member for Blaydon (Liz Twist) and to take part in this debate. Times change, and when they do we have to change the rules and regulations to reflect mindsets. To some in this House, it might seem like only yesterday that films such as “The Greatest Show on Earth”, with Dorothy Lamour and Charlton Heston, were great hits because they had the romance and excitement of circus life.

If we fast-forward to just a few weeks ago, as a father I made probably the worst decision I have ever made in my life when I decided to take my three daughters to see the remake of “Dumbo”. My eldest daughter, Imogen, just about managed to survive with some degree of stoicism. My middle daughter, Jessica, cried five times during the film. My youngest daughter, Laura, had to be taken out of the cinema by me, so upset had she become by the film. I have to say I was rather relieved because I, too, was finding the film rather upsetting. The question they asked at the rescue centre afterwards—also known as Pizza Express Dorchester—was, “Why? Why would you have an elephant in a circus? Why would you treat an elephant like that?” I think that just shows the change in our society.

[Andrew Rosindell (Romford) (Con)]

Everyone in the Chamber is completely committed to the welfare of animals, including me, but will my hon. Friend think about what he is saying? If he is saying that an animal does not belong in a circus—I accept that that is what the vast majority of people believe is right—does he think that animals in other contexts should be where they are? Does an animal belong in a zoo? Does a horse belong on a racecourse? Does a greyhound belong in a greyhound stadium? He has to look at the implications and precedent that legislation sets.

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

I think I can help, because what the hon. Gentleman asks would broaden the debate outside the scope of circuses. The Bill is about circus animals. It is not about breeding programmes in zoos or different things. The hon. Gentleman is comparing horses and dogs to a circus, but the Bill is about wild animals in circuses. I would like to keep the debate contained to the subject before us.

--- Later in debate ---

[Sandy Martin (Ipswich) (Lab)]

I have no need to repeat the sound case made by my hon. Friend the Member for Plymouth, Sutton and Devonport (Luke Pollard), or to mention the interventions by other Members that he picked up, other than to reiterate that my party very much supports the Bill. My hon. Friends and I have done what we can to ensure that the Bill is finally before the House.

I understand the point made by the hon. Member for Camborne and Redruth (George Eustice) about other situations in which animals find themselves, but I do not believe that that would justify the House not taking this step. The points he makes provide very good reasons for demanding a coherent, up-to-date and comprehensive animal welfare Bill in the near future to take forward the intentions of the Animal Welfare Act 2006. However, let us not let our anxiety to cover the gamut of animal welfare lead us to rewrite the starting point of this Bill.

[Andrew Rosindell]

Would the hon. Gentleman clarify something? Does he feel that the legislation should be extended to performing animals—animals in adverts or films? Where would he extend it to? At what point would he say it is okay for a wild animal or any creature to take part in something? Would he stop at circuses, or would he go further?

[Sandy Martin]

I thank the hon. Gentleman for his intervention. As I said, we should not allow our wish to have a comprehensive animal welfare Bill to get in the way of our passing this specific Bill, which has the support of the whole House.

The way we treat animals is often a litmus test of how we treat human beings and I believe that the steps we are taking in this country and around the world to show not only kindness but respect to other creatures are important in creating the consciousness we desperately need if we are to protect our planet and all its creatures.

So many people in this country are concerned about our treatment of animals, as my hon. Friend the Member for Blaydon (Liz Twist) emphasised. People have hopes for a better world and a million dreams ride on our better relationship with our fellow creatures. Even if all the animals performing in circuses in this country were healthy and happy, there is something fundamentally demeaning about using animals to do tricks for our entertainment and we should not be encouraging it.

Animal welfare is an ethical issue. Although it is true that only 19 wild animals are currently performing in circuses in England and Wales, this is meaningful legislation. There is no guarantee in the licensing system currently in operation that that number could not grow. Indeed, the licensing regime ends in January next year. Unless we pass the Bill in time, so that it comes into operation in January, there is a danger that there will be no restrictions on the use of wild animals in circuses. We do not want to see the humiliation of lions, tigers and bears coming alive in our circuses once again.

My hon. Friend the Member for Bristol East (Kerry McCarthy) mentioned other countries that have already implemented the ban, but we need to be aware of the appalling cruelty meted out to various animals in other countries, such as bears milked for their bile in China or beach donkeys in Santorini. How can we argue for decent treatment for animals around the world unless we are seen to be above reproach in this country?

Most circuses in this country stopped using wild animals years ago, and I believe that some of the biggest circuses made that decision entirely voluntarily before the licensing system was ever introduced because they recognised from first-hand experience that it is no longer acceptable for circuses to feature such acts. However, unless we act to implement a ban, there is a continuing danger that other less scrupulous circuses will take trade away from those that have made the ethical choice. We need to act now to enable those that have behaved honourably in this matter to flourish.

Above all, I am amazed it has taken us so long to get to this stage. After my hon. Friend the Member for Poplar and Limehouse (Jim Fitzpatrick) introduced his ten-minute rule Bill in September 2014, was it really necessary for hon. Members to object to it 12 times; it was finally dropped in April 2015? And did an hon. Member really need to object to the ten-minute rule Bill introduced by the hon. Member for Colchester (Will Quince) in 2015?

A similar Bill introduced by the hon. Member for Torbay (Kevin Foster) fell due to the general election in 2017. An almost identical private Member’s Bill tabled by the hon. Member for Copeland (Trudy Harrison) was due to be heard in October but, if the Government had not taken it on, it would almost certainly have been blocked by an hon. Member, just as the Bills on upskirting and female genital mutilation were blocked.

It is a great relief that the Government have finally taken on this Bill, but it is a matter of regret that we could not have dealt with this issue before now. I fully agree with the hon. Member for Tiverton and Honiton (Neil Parish) that the Government need to get on with the Animal Cruelty (Sentencing) Bill, too.

This Bill is long overdue, and it has the full support of every party and of the campaigning groups that have worked to get us to this point. I look forward to it passing into law at the earliest possible moment.

--- Later in debate ---

[Dr Coffey]

My hon. Friend raises an important point about the state of biodiversity in the world. I was privileged to be at the G7 summit when we had a presentation from the intergovernmental science-policy platform on biodiversity and ecosystem services on this issue, and I can assure her that the leading countries of the world are actively working together and have declared the Metz charter on biodiversity. She is right to stress the importance of wild animals being in their normal places, rather than providing unusual forms of entertainment, which is what the Bill seeks to address.

[Andrew Rosindell]

I wholeheartedly endorse the comments of my hon. Friend the Member for Taunton Deane (Rebecca Pow). Can the Minister tell the House how we will define “wild animal”? That is central to this Bill and we need a clear definition of where we stand, as some countries have definitions that are different from what we may be considering.

[Dr Coffey]

I can answer my hon. Friend directly, because clause 1(5) states that

“‘wild animal’ means an animal of a kind which is not commonly domesticated in Great Britain.”

I hope that answers his point.

The Scottish Government’s 2014 consultation ahead of their ban showed similar figures in support, and last year’s consultation by the Welsh Government on a proposed ban found some 97% in favour. As my hon. Friend the Under-Secretary of State for Environment, Food and Rural Affairs said earlier, this is an outdated practice that no longer reflects the views of modern society, and I am pleased that we have started the Bill’s passage through Parliament.

My hon. Friend has already replied to some of the points raised in this debate, and he was generous in saying that some of the issues that have been raised can be considered in Committee, and it is important that they are.

On the European Union and the limits of legislation, there was a legal challenge to the ban introduced by Austria under the European services directive. I am confident the Government did not say a ban could not be introduced, but we had to wait for the outcome of that challenge to understand how we can properly legislate to do this. The legal challenge failed, which has given us confidence to bring this Bill forward.

It is also worth pointing out to the House that, although we have heard about a number of countries that have banned wild animals in circuses, many of the exemptions are a lot more generous than the Bill allows for. We have come up with an exemplary Bill that will be more comprehensive than the legislation in other countries.

Are birds included? If they meet the definition of “wild animal” in clause 1(5), they will be included.

My hon. Friend the Member for Tiverton and Honiton (Neil Parish) and a number of other Members mentioned the Animal Cruelty (Sentencing) Bill, and my hon. Friend the Under-Secretary is conscious of that. He is responsible for animal welfare—I tend to deal with wild animals—and we are both committed, as is my right hon. Friend the Secretary of State, to making sure that we find the appropriate parliamentary vehicle to do so.

The hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) asked about Northern Ireland, and the Administration have been consulted on this issue. As it stands, the Administration do not believe it is appropriate at this point to join in this Bill, recognising it is a significant policy decision and would need to be devolved.

I assure the House that we have been told by the owners of the two circuses that they will not be putting down any animals as a consequence of this Bill. Indeed, their retirement plans are already in place, as my hon. Friend the Under-Secretary made clear.

A variety of questions have been asked about the potential definitions and about the amendments that might be tabled, such as on powers to seize an animal. Where any evidence is found of a wild animal being mistreated, the Animal Welfare Act will, of course, apply and provides powers to seize animals should there be grounds to do so. The Dangerous Wild Animals Act 1976 also provides powers of seizure and, depending on the species of animal, may also be applicable. We have not provided powers to seize animals where it is demonstrated that an offence has been committed, but inspectors have powers to video or photograph an animal to provide evidence of such an offence.

Several Members mentioned the national wildlife crime unit, for which there is funding here, but I am sure the House understands that the Government will shortly be starting their spending review. I have no doubt that my Department will be pushing for the unit to continue being funded because we believe it has an important role in tackling wildlife crime. Indeed, the unit received additional funding from the Department to address new avenues of wildlife crime.

The Conservative party introduced the most important piece of legislation, on which we still heavily rely, the Wildlife and Countryside Act 1981. We have had additional legislation specific to badgers and wild mammals in 1992 and 1996. The Animal Welfare Act 2006 was another milestone in making sure that appropriate legislation was put in place.

On biodiversity, I am pleased about our position on international obligations; I genuinely believe the passing of the Ivory Act 2018 will be a significant element in that.

On the welfare of pets such as snakes, we were asked why it is okay to have no regulations. In fact, there are regulations; these animals are covered by the Animal Welfare Act, as they are seen as animals that are cared for, as opposed to other kinds of animals that may be used in so-called performances, be it in Santa’s grotto or elsewhere. The new Animal Welfare (Licensing of Activities Involving Animals) England Regulations 2018 apply to those, and there is a specific reason in respect of what is happening in circuses. This Bill does not seek to prohibit wild animals in other activities; it is not a loophole. Those regulations specifically require those activities to be licensed.

There has been a lot of discussion about ethical and welfare matters, and why one thing is happening and not the other. The Government are clear, and have been for some time, including under previous Administrations, that the scope of the 2006 Act did not give the necessary powers in this regard. Section 12 provides powers only to regulate to promote the welfare of animals. I appreciate that people, including hon. Members, may have different views on this. No robust scientific evidence is available to indicate that the basic welfare needs of wild animals cannot be met in a travelling circus environment. Moreover, the review of the Department’s interim circus regulations found that the regulations were successful in establishing an effective licensing scheme to promote and monitor high welfare standards for wild animals in travelling circuses in England.

[Andrew Rosindell]

I wish to clarify something for the benefit of the whole House and everyone outside who works with animals, including performing animals. The Minister mentioned Santa’s grotto, and we have all seen animals in our constituencies for different special events. Can she tell the House how this new law will affect such events? In line with the question I posed earlier, may I ask where the ultimate end to this is? Is she saying that, ultimately, animals will not be able to take part in any kind of performance, be it a film, special activity or outside event? Where will this conclude?

[Dr Coffey]

This is specifically about circuses, and the basis for it is the itinerant nature of such events and what happens when these animals are moved. Falconry and displays have been mentioned. Typically, a falcon returns to its principal place of residence after such a display, so the effect is not the same. I assure my hon. Friend that mobile zoos will still be mobile, but of course licensing is undertaken, through the 2018 regulations.

Let me return specifically to the evidence. My understanding is that after the 2006 Act came into place, the academic lawyer Mike Radford was appointed to chair a circus working group. His report concluded that there were no welfare concerns over and above those applying to animals kept in other captive environments, and therefore any attempt to take forward a ban on welfare grounds under the 2006 Act would fail the test of proportionality and primary legislation would be needed. I should also point out to the House that that is also the legal position of the Scottish and Welsh Governments, and that the bans that have been brought forward have been justified on ethical, not welfare, grounds.

Let me deal with some other aspects of questions that have been asked. I think I have addressed the questions asked by the hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron), and I welcome the fact that the legislative consent motion will go through to make sure that the amendment is passed and the legislation has a smooth passage. I have already addressed the question about animal sentencing and when that can be undertaken.

I am very conscious of the strong support given today by hon. Members, including the hon. Member for Poplar and Limehouse (Jim Fitzpatrick), my hon. Friend the Member for Copeland (Trudy Harrison), the hon. Member for Blaydon (Liz Twist), my hon. Friends the Members for North Dorset (Simon Hoare), for Romford (Andrew Rosindell), for Tiverton and Honiton and for Taunton Deane (Rebecca Pow), the hon. Members for Ipswich (Sandy Martin) and for Plymouth, Sutton and Devonport, and my hon. Friend the Member for Camborne and Redruth (George Eustice). A variety of people have decided to attend this debate and support this Bill. I hope that that support will continue in Committee. It is an honour to have closed this debate. We care passionately about this and I am sure the same spirit will continue as the Bill makes its passage through the House.

Question put and agreed to.

Bill accordingly read a Second time.

Wild Animals in Circuses (No. 2) Bill (Programme)

Motion made, Question put forthwith (Standing Order No. 83A(7),

Committal

(1) The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Thursday 23 May 2019.

(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.

Proceedings on Consideration and up to and including Third Reading

(4) Proceedings on Consideration and proceedings in legislative grand committee shall (so far as not previously concluded) be brought to a conclusion two hours after the commencement of proceedings on Consideration.

(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion three hours after the commencement of proceedings on Consideration.

(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and up to and including Third Reading.

Other proceedings

(7) Any other proceedings on the Bill may be programmed.—(Jeremy Quin.)

Question agreed to.

Santander Closures and Local Communities

Andrew Rosindell Excerpts

Thursday 14th February 2019 Westminster Hall

[John Glen]

I will take that matter away and respond to the hon. Lady by letter.

The Government recognise that there are people who are struggling to adapt to new ways of banking or just prefer to carry out their banking in a more traditional way, over the counter. Members made powerful representations on behalf of constituents who find the closure of their local branch an inconvenience at best and a severe obstacle to their daily business at worst, so I want to take the time to reassure them that there is support available to minimise the impact and disruption of those changes.

I recognise the points made by the hon. Member for Ealing Central and Acton (Dr Huq), the hon. Member for Argyll and Bute (Brendan O’Hara) and others about the access to banking standard, which I mentioned in a previous debate. The access to banking standard is an important tool for ensuring that customers feel informed and supported when a branch closes, and all major high street banks are subject to it. It is my view that Santander adhered to the letter and the spirit of the standard when providing support to customers. I cannot account for every individual branch, but I am sure Members will be able to take that up with Santander, who were here to hear their representations.

I recognise that it is important that the standard is adhered to in both letter and spirit, and that support is given, but the Post Office’s commercial agreement with 28 high street banks and building societies enables 99% of personal banking customers and 95% of small business banking customers to carry out their everyday banking at one of the Post Office’s 11,500 branches, which provide an excellent alternative to a bank branch. Everyday essential banking services, such as cash withdrawals and deposits, cheque deposits and balance checking, are all available in every Post Office branch, including those located in retail facilities. Since 2010, the Government have invested close to £2 billion in the Post Office, and we have provided an additional £370 million from April last year until March 2021 to ensure the network can continue to modernise and maintain suitable coverage across the UK. That has meant post office numbers have been at their most stable in decades.

This issue is not just about individual customers; it is about businesses, too. Santander has long had an arrangement with the Post Office for its business customers, who currently cannot deposit cash at a Santander branch and must use the post office instead. Indeed, a third of SMEs visit post offices every week, highlighting the Post Office’s value for business banking. The Government believe that too few customers know about those excellent services, so, at my predecessor’s request, UK Finance and the Post Office worked together to launch an action plan to raise awareness of Post Office banking services. I encourage every Member to support their local post office and make their constituents aware of those banking services.

I also hear Members’ concern about the depletion of the high street. That is why, in the last Budget, the Government introduced a £675 million future high streets fund—not another review but a fund—that seeks to make high streets and town centres fit for the future. Alongside that, we are helping smaller retailers by cutting their business rates by a third for two years from April 2019.

I am conscious of the time, so I thank all Members for taking the time to speak in the debate on behalf of their constituents and local communities. I fully respect the fact that bank branch closures are a symptom of wider changes in our economy. It is important that, in response to those changes, we strike the right balance between promoting a dynamic and competitive financial services sector and ensuring that customers are treated fairly. I take my responsibility for supporting the development of alternatives to banks across the United Kingdom very seriously.

[Andrew Rosindell (in the Chair)]

I call David Linden.

Economies of the UK Islands

Andrew Rosindell Excerpts

Wednesday 9th May 2018 Westminster Hall

[Alan Mak]

We have had a very good and wide-ranging debate. I thank all right hon. and hon. Members for contributing. The right hon. Member for Orkney and Shetland (Mr Carmichael) was right to highlight the opportunities and strengths of islands in addition to the challenges. In an excellent speech, my hon. Friend the Member for Isle of Wight (Mr Seely) emphasised what special and unique places our islands are. My hon. Friend the Member for Ayr, Carrick and Cumnock (Bill Grant) gave us an excellent perspective from Scotland, and I commend him for his service as a fire officer on Argyll and Bute.

I thank the Minister for his thoughtful response and his commitments, on behalf of the Government, to increase productivity and living standards on all the islands of the United Kingdom, including Hayling Island. I would very much welcome his visiting my constituency. I thank both Opposition spokespeople for their responses, the hon. Member for North Ayrshire and Arran (Patricia Gibson) in particular. She, too, is welcome on Hayling Island anytime. Thank you, Mr Rosindell, for chairing the debate.

To conclude, we are all islanders and must all work together to ensure that all the islands of the United Kingdom, whether large or small, have a bright economic future. I am glad that the House, through this debate, has committed to ensuring just that.

Question put and agreed to.

Resolved,

That this House has considered the economies of the UK islands.

[Andrew Rosindell (in the Chair)]

Order. The sitting is suspended for three minutes to allow broadcasting to switch their feeds to facilitate simultaneous transmission.

Oral Answers to Questions

Andrew Rosindell Excerpts

Tuesday 19th January 2016 Commons Chamber

[Mr Alan Mak (Havant) (Con)]

7. What fiscal steps he is taking to support businesses.

[Andrew Rosindell (Romford) (Con)]

11. What fiscal steps he is taking to support small business owners.

[The First Secretary of State and Chancellor of the Exchequer (Mr George Osborne)]

The Government are backing businesses by cutting their taxes. We have given Britain the lowest corporate tax rate in the G20, and we are cutting it further. To support small businesses, the employment allowance will rise by 50% in April, and we are doubling small business rate relief. This Government understand that we create jobs and raise money for public services by backing companies, not by punishing them with the kind of anti-business, anti-enterprise nonsense that we hear from the Labour party.

--- Later in debate ---

[Andrew Rosindell]

What steps does the Chancellor intend to take to ensure that the quarterly tax returns that are made in 2020 will not harm small businesses in constituencies such as mine by affecting their productivity and their ability to make profits?

[Mr Osborne]

My hon. Friend is right. Our objective is to make it easier for businesses, and indeed individuals, to complete their tax returns by making use of modern digital technology, and we are introducing a simple and secure personalised digital tax account. We estimate that that will reduce the administrative cost to businesses by £400 million.

Inward Investment (Wales)

Andrew Rosindell Excerpts

Thursday 29th November 2012 Westminster Hall

[Mr Williams]

I am grateful for that endorsement. Of course, there are Dylan Thomas connections, as well, if we go a bit further down the coast to New Quay—Cei Newydd—in my constituency. I thank the hon. Gentleman for that intervention.

I was disappointed when the Select Committee went by train to Aberystwyth a couple of weeks ago. I was grateful that the Chair encouraged the Committee to go, but when the Welsh Government Transport Minister, Carl Sargeant, came to see us, he confirmed that we would not see the hourly service until 2015, despite the fact that we had been promised it for 2014, and despite the fact that all the infrastructure has been done.

On broadband, I very much welcome the £425 million agreement between the Welsh Government and BT to deliver next-generation broadband to 96% of Welsh homes and businesses by 2015. I am glad that my hon. Friend the Member for Monmouth mentioned that rurality is important. This is not just about the M4 corridor or the A55. There is a bigger picture, which some of us will not stop talking about. There is real potential across Wales to attract businesses, but the proof of the pudding is in the eating. We need hard, imaginative, bold targets, but we also need to see the reality.

Finally, the inquiry clearly identified that the Welsh Government need a dedicated trade promotion agency. The evidence shows that, since 2004, investment opportunities have been missed because of this omission, and Wales branding has taken a knock since the days of the Welsh Development Agency and the loss of the Wales Tourist Board. Branding Wales is hugely important; it is tough out there, but we have a strong product that makes Wales stand out from the crowd. I am thinking particularly of culture, outdoor pursuits, tourism, the creative industries, and the potential jobs and wealth created by holding events such as the Ryder cup. There are huge opportunities for us and, in that context, the Select Committee report was highly valuable. In particular, the sections on infrastructure and higher education resonate strongly in terms of the future development of my area.

[Andrew Rosindell (in the Chair)]

I invite Jonathan Edwards to resume his speech, which was interrupted by the Division.

Turks and Caicos Islands

Andrew Rosindell Excerpts

Friday 3rd December 2010 Commons Chamber

[Andrew Rosindell (Romford) (Con)]

I refer the House to my entry in the Register of Members’ Financial Interests.

The Turks and Caicos Islands are a territory of the Crown for which we in Parliament have ultimate responsibility. During the past few months, I have spent considerable time dealing with the multitude of issues relating to the Turks and Caicos islands, in my capacity as chairman of both the Turks and Caicos Islands all-party parliamentary group and the British overseas territories all-party parliamentary group, as well as in my capacity as a member of the Foreign Affairs Committee. I am thus extremely grateful for the opportunity to address the House this afternoon on this most pressing of subjects.

The Turks and Caicos Islands are a territory of some 26,000 inhabitants situated just south of the Bahamas on the cusp on the Atlantic ocean. They have been British in one form or another for several hundred years and were a dependency of Jamaica until 1962, when they became a Crown colony or British overseas territory, as we now call them. The islands that encompass the territory are well known for their award-winning beaches, world-class hotels and spectacular climate. Indeed, the tagline of the islands, “beautiful by nature”, could not be more appropriate. These aesthetic factors, coupled with a prime location for tourism, an English-speaking populace and a British constitution and judicial system made the islands one of Britain’s most successful territories.

However, the Turks and Caicos Islands of the present set a far more sombre scene. Endemic corruption, economic turmoil and violent crime are rife. The people of the Turks and Caicos Islands are currently hard pressed for optimism. Sadly, these previously dynamic islands have been in more or less perpetual stagnation for the past 18 months. The questions we all have to ask are: how has that been allowed to happen under the British standard, and why is so little being done to rectify that unacceptable situation?

The issues stem from the previous Administration, who presided over systematic corruption, selling off vast swathes of Crown land and running the islands as a personal fiefdom, despite the protestations of the resident populace, who fruitlessly whistle-blew to the UK Government. Finally, on 18 March 2009, after almost seven years of systemic corruption and on the advice of her UK Ministers, Her Majesty the Queen issued an Order in Council, giving the Governor the power to suspend the constitution. In August that year, the order was enacted.

Many saw the UK Government’s intervention as a necessity, and on the day of the suspension people walked down the street waving Union Jacks, with every faith that, in true British spirit, Her Majesty’s Government would restore the territory to its former glory. So, where has it all gone wrong? How has this proud and loyal British territory found itself in an arguably worse position than before the UK Government took direct control? I am sure the Minister will tell us shortly.

I intend to outline the issues facing Turks and Caicos, the root causes of those problems and how I feel Her Majesty’s Government can address the urgent matters at hand. Let me preface that by paying tribute to the current governor, His Excellency Gordon Wetherell, and his team. I have seen at first hand the terrific challenges that they face, and I do not envy their task. They do a sterling job, and given the conditions we could not expect more of them.

There are, however, failures, and they are the fault not of the interim Government but of the completely insufficient support that they have been afforded by Her Majesty’s Government and, moreover, the previous Labour Government, in particular, who grossly under-resourced the Administration and expected the impossible.

In August, I was fortunate enough to visit the Turks and Caicos Islands, where I met hundreds of local people, businessmen, politicians, Government officials, community workers and church leaders. All of them were desperate to have their voice heard, frustrated by the lack of action and deeply concerned about what the future might hold for them. The islands are truly in crisis.

On one afternoon during my stay at the Governor’s residence, “Waterloo”, on Grand Turk, there was an armed robbery only a stone’s throw from the property. Violent crime has completely spiralled out of control; guns and illicit substances are being smuggled over on sloops from Haiti, and there is no way to enforce the borders or territorial waters. There is, however, a $2.5 million radar system that would significantly alleviate the problem, but for more than 18 months it has sat in a crate deteriorating, while sheer bureaucracy prevents its installation. Already, the storage fees exceed $50,000, and that is a disgrace.

Meanwhile, the once sound infrastructure of the islands is crumbling, education is declining and illiteracy is rampant. Schools and teachers have their limited resources stretched to capacity, and there is no meaningful approach to vocational training, with only 2% of students going on to college.

The prison on Grand Turk is desperately overcrowded, with minors and adults sharing cells, and it was called little more than a “training college to harden criminals” by some of the community leaders I met. That problem is compounded by a severe backlog in the justice Department, with courtrooms in meltdown and the local magistrates simply unable to deal with the backlog. I believe that many problems can be attributed to the civil service of Turks and Caicos, which needs to be completely rebuilt. There have been no audited financial records since 2006, and there are an untenable 2,300 people on the payroll. A large proportion of the civil service has been compromised by corruption, yet there is little attempt at reformation. It currently takes about six months to process a driving licence and 11 months for a work permit. The level of “pay to play” bureaucracy is utterly unbelievable. At the same time, the islands are, as one resident put it, “being micro-managed into oblivion”. Layer upon layer of legislation is bottlenecking the last vestiges of enterprise. Until the civil service is reformed, the work of the interim Administration will continue to be undermined. That must be a priority.

Even with all those problems, the islands are primed for investors. I have it on good authority that there are businesses and individuals waiting in the wings to plough investment back into TCI. Turks and Caicos desperately needs to bring that business back. Business built the islands and it has been their lifeblood over the past three decades. To put it simply, if the Government continue to allow an unfavourable climate for private enterprise, the islands will not recover.

The people of Turks and Caicos have not given up; they will do everything possible to put their islands back on track and we have a duty to help them. The overwhelming majority of people want to create a climate of genuine partnership. The interim Administration and the Governor’s office can depend on assistance from the private sector in almost every aspect of restructuring. Those in the private sector have offered office accommodation, professional services and even their own money to assist, but they are continually met with barrier after barrier. Their frustration is completely understandable. They appreciate that finances and resources are tight, and that we live in a climate of austerity. They are looking not for handouts or bail-outs, but for stability and economic security. Her Majesty’s Government have a duty to provide that.

Hanging over all these matters is the remorseless task of discovery by Helen Garlick and her officers, who compose the special investigation and prosecution team that has spent the past 18 months uncovering the web of scandal, fraud, bribery and corruption that silently choked the islands into their current condition. Although I appreciate that their task is complex, there have been no prosecutions. Given that the cost of the investigation is about $500,000 a month and that it is funded exclusively by the Turks and Caicos interim Government, people on the islands are understandably in uproar. It is in everyone’s interest that there should be prosecutions imminently, that the uncertainty is cleared up and that a line is drawn so that the territory can move forward. Clear and concise parameters must be set. The people of Turks and Caicos cannot be expected to entertain open-ended speculation about when the problems will be resolved.

Finally, the constitutional reform process is one of the more emotive problems. It has been met with fierce hostility by the “belonger” population and the political parties, which have conducted their own review. All I will say is that the Government need to remember that a political system cannot and should not be imposed on an unwilling population. Such reforms must be conducted in conjunction with the people—there is no other way to go about it in a modern democracy. The next election in the Turks and Caicos Islands has been announced for 2012. That deadline must be met so that democracy is restored to the people of the islands by that time at the very latest.

The perpetuation of the current situation is unthinkable. Turks and Caicos is in crisis and if immediate action is not taken by Her Majesty’s Government, the territory will continue to deteriorate. A letter dated 4 February 2010 from the Foreign and Commonwealth Office to a resident on Grand Turk stated:

“Whilst UK Ministers are keenly aware that the TCI Government has severe difficulties in meeting the liabilities it has inherited from the previous administration and that significant challenges remain, they are of the view that it would be inappropriate for UK taxpayers money to be used to fill a deficit created by the financial mismanagement of the previous administration.”

That is an appalling and inexcusable stance. The people of the Turks and Caicos are British, too, and they deserve our support. The previous Government should be ashamed of how they handled the situation there, and of the relationship that they fostered with the overseas territories in general.

I can assure the House with certainty that the bill for the UK taxpayer will be far greater in the long run if urgent action is not taken now. I have every faith that our new Conservative-led government will do everything in their power to ensure that the current wrongs are righted and that the failings of the past are corrected. We need to deploy more civil servants from the UK to reform the TCI civil service and more police to crack down on crime, and we need to draw a line under prosecutions to ensure that the full weight of the law is brought down on those who were deceitful. We also need to ensure that more funds are made available to the TCI, and not simply to tide the islands over for a few more months. It must be enough to stimulate the economy back into action radically.

I speak frankly when I say that there is no use in a package of support that is aimed merely at maintaining the status quo. I recognise that in the current climate of austerity no decision on finance is taken lightly, but I put it to the Government that they have committed to giving millions of pounds in aid to foreign countries, and yet let poverty and despair be fostered on our very own soil. Her Majesty’s Government now have an ideal opportunity to change that in the Turks and Caicos, and with the right attitude and approach we can show our citizens overseas that they are not on the periphery of government and that no matter where one is in the world, British is British is British.

The Government need to show the global community that just because someone happens to live in a different time zone from London, it does not make them any less British. With that in mind, the people of the Turks and Caicos should be afforded the full support of the Government to ensure that they realise a secure and prosperous future. They will not be impressed by more rhetoric.

At this point, I wish to commend Her Majesty’s Government in Canada, who, despite having no responsibility for the Turks and Caicos, are sending over members of the Royal Canadian mounted police to help us rescue the situation. Should that not be our responsibility? It is, after all, a British territory, not a Canadian territory.

The people of the Turks and Caicos islands want to see fast and radical action from Her Majesty’s Government here in London to restore to their homeland the governance that one would expect for a British overseas territory, a territory of the Crown.

Banking in Scotland

Andrew Rosindell Excerpts

Thursday 14th October 2010 Westminster Hall

[Mr MacNeil]

I hope the hon. Gentleman went to Norway as well.

[Andrew Rosindell (in the Chair)]

Order. The hon. Member for Na h-Eileanan an Iar (Mr MacNeil) will have a chance to contribute to the debate later. Perhaps Mr Davidson would like to continue.

[Mr Davidson]

If people just mention the arc of prosperity the nationalists tend to become somewhat overexcited. I understand that and accept that it was my responsibility. I will try not to say anything else that might prove unduly provocative.

Visiting Ireland was interesting because—

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[Mr Davidson]

I thank the hon. Gentleman for giving me the opportunity to mention that. Whether Bermuda should join the UK or cease to be an overseas territory is a matter for the people of Bermuda.

[Andrew Rosindell (in the Chair)]

Order. I think a debate on the overseas territories would be very useful, but this is not such a debate. Perhaps we can get back to the subject.

[Mr Davidson]

Indeed, Mr Rosindell, I was led astray by bad boys.

I was asked about conclusion 3. The Committee stated in its report:

“We welcome the optimism of those working in the financial services sector who believe that the reputation of that sector in Scotland has not been permanently damaged by the difficulties experienced by two of Scotland’s, and the UK’s, largest banks. We are reassured that the quality of the location, the lower costs and the depth and diversity of its labour pool remain attractive to global corporations.”

That is particularly welcome in view of one of the Committee’s anxieties. We asked everyone we saw whether they believed at that time—the hearings took place in December 2009 and January 2010—that the financial crisis that had arisen from the activities of those working for the Bank of Scotland and the Royal Bank of Scotland would have a long-term impact on the finance industry in Scotland. It was reassuring and supportive of what we were seeking to do to have a clear view from virtually everyone we spoke to that there was no doubt about that. A few people had some doubts, but we subsequently spoke to some of them informally and were reassured that they believed that the waters had calmed and that the Scottish finance industry, although shaken, had not been brought tumbling to the ground. I am glad to see the Government’s response to that conclusion, which is:

“The Government will continue to work with the Scottish Government to ensure that the financial services and banking sectors remain strong in the future.”

I hope that they are also prepared to continue working with the Scottish Affairs Committee, as well, to ensure that, as we monitor, we try to pull things together as far as possible.

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[Mr Hoban]

Indeed. I am very grateful to the hon. Lady for mentioning that point, because one of the commitments in the coalition agreement is, of course, to foster diversity and ownership in the financial services sector, including strengthening the mutual sector. The hon. Lady’s intervention also reminds me that she raised issues about set-off. I know that set-off is very important to many consumers and she will be pleased to know that the Financial Services Authority is reviewing it at the moment.

I was talking about reducing risk and the role of the Independent Commission on Banking. The debate about how we reduce risk is not just a UK debate. We have been at the forefront of developing common international standards of regulation—for example, in Basel and through the capital requirements directive negotiations in the EU. In addition, we have led the way in developing approaches to minimise the risk of failure and to ensure that, when failures do occur, the call on the taxpayer is minimised. Of course, it was the previous Government who introduced the special resolution regime, which we supported, and “living wills”—the recovery and resolution plans that were in the Financial Services Act 2010. We also supported that measure.

We will continue to work with international colleagues to ensure that the implementation and sequencing of regulatory changes are taken forward in a way that balances the need to act now on the lessons of the crisis with the need to maintain the competitiveness of the industry.

A number of hon. Members talked about the regulatory framework. Clearly, the reputation and long-term success of Scotland’s banks also depend on trust. Customers need to know that they will be treated fairly and appropriately by all financial institutions. The robust regulatory framework that we are creating will help to cement the attractiveness of Scotland’s financial sector, by providing certainty for banks and confidence for consumers without stifling innovation and growth.

We have learned the lessons from the financial crisis and set out a radical reform to the architecture of financial regulation that we inherited. Earlier this year, the Chancellor announced that the Government will legislate to create a new prudential regulation authority as a subsidiary of the Bank of England. The PRA will be responsible for prudential regulation of all deposit-taking institutions, insurers and investment banks. It will cover all issues affecting the safety and soundness of individual firms, including remuneration. It will have the focus, expertise and mandate to ensure effective prudential supervision and regulation of individual firms, thereby strengthening the UK’s financial system and its resilience to future crises.

We will ensure that financial regulation delivers financial services and markets that are secure and within which private individuals, small businesses and multinational firms have all the information available to them to make the right choices, as well as the right level of protection if things should go wrong. That is crucial.

Consequently, alongside the PRA we will establish a consumer protection and markets agency, which will be a new and integrated conduct regulator. The CPMA will take a tougher, more proactive and more focused approach to regulating conduct in financial services and markets. That will ensure that the behaviour of firms—whether they are based in the high street or trade in high finance—is placed at the heart of the regulatory system, giving consumers greater clarity. The CPMA’s primary objective will be to ensure confidence in financial services and markets, with a particular focus on protecting consumers and ensuring market integrity.

Appropriate regulation is vital to instilling confidence in financial services, protecting customers’ interests and ensuring clean and efficient markets, where both retail and wholesale customers can engage confidently and with the degree of protection appropriate to their needs.

Regulators are continuing to monitor firms for poor practice and they will develop new initiatives to ensure that consumers are treated fairly. A specific focus will be given to cases of unarranged overdraft charges. Working alongside the industry, the Office of Fair Trading has developed commitments on unarranged overdraft charges. They include an agreement that consumers should be able to opt out of unarranged overdraft facilities and minimum standards for how that process of opting-out should work.

Furthermore, earlier this week we laid the regulations to turn on the new section 404 powers—a provision in the Financial Services Act 2010, which was passed just before the election—that will enable the FSA to require firms to establish consumer redress schemes. We believe that it is right to turn that provision on.

However, we also need to ensure that consumers have advice at their fingertips. We have already announced the introduction of an annual financial health check. That check will help families and individuals to get into the habit of taking a thorough look at their finances. It will show them where they are most at risk and how they can regain control of their finances and plan for the future. It will give people a “prescription” that will offer clear advice on what they can do to improve their financial situation now and for the years ahead.

My hon. Friend the Member for Milton Keynes South (Iain Stewart) and the hon. Member for Kilmarnock and Loudoun talked about the importance of inculcating the habit of saving among children early on in their lives—indeed, the hon. Member for Nottingham East also highlighted that issue. It is absolutely vital. Of course, it is a responsibility that we all share and it is an idea that is supported by a number of financial services bodies.

The hon. Member for Kilmarnock and Loudoun mentioned the Cumnock and Doon Valley credit union. Across the UK, credit unions play an important role in this area of education. I have been to see a project that HSBC sponsors in primary schools; I saw it in the Wallisdean infant school in my own constituency. It was quite interesting to talk to children between five and seven about the importance of saving and spending. Clearly, even at that early age they have thought about this issue very carefully.

The new consumer financial education body will roll out the national financial advice service, which will be free and impartial. Of course, that service will be funded by the industry through a social responsibility levy. The cost of the service will not be picked up by the taxpayer; the service will be industry-funded, as part of the industry’s contribution to tackling some of these issues. I think that the service will help consumers throughout the UK to get the best from their financial providers and to give them the information that they need to manage their finances responsibly. The service will be further complemented by the simple products initiative that we announced in July.

The hon. Member for Glasgow South West raised the issue of repossessions. I say to him that in 2009 47,700 homes were repossessed, compared with an estimate that 75,000 would be repossessed. In the first quarter of this year, 9,800 homes were repossessed and in the second quarter 9,400 homes were. In part, that is due to the forbearance of lenders, but clearly the low interest rate environment has made it possible for more people to stay in their own homes. That is to be welcomed. [Interruption.]

[Andrew Rosindell (in the Chair)]

Order. There is a Division in the House. Would the Minister like to finish his comments now, or shall I suspend the sitting?

[Mr Hoban]

I would like the sitting to be suspended, please.

[Andrew Rosindell (in the Chair)]

Okay. The sitting will be suspended for 15 minutes. Order.

Offshore Financial Centres

Andrew Rosindell Excerpts

Wednesday 21st July 2010 Westminster Hall

[Mr Field]

I agree, and that is greatly to the credit of the British Virgin Islands and other overseas dependencies, as well as some of the Crown dependencies to which I have referred. They have played an important role and led the way in the transparency agenda.

One of the great myths to have grown up is that small offshore centres do not benefit developing countries. Small IFCs have been accused of supporting capital flight out of developing countries, but the Commonwealth secretariat is publishing a new report this month to illustrate the importance of the role played by IFCs in helping developing countries, by enabling them to rent financial expertise from other countries while they develop their own financial centres. Crucially, they also offer investors greater protection of their property rights against domestic political uncertainty.

It is no exaggeration to say that without smaller offshore financial centres many developing countries would not secure key funding for project finance, which makes a substantial improvement to the lives of some of the most vulnerable global citizens. Furthermore, the financial action task force gives many IFCs a positive assessment in meeting its 49 rigorous recommendations on anti-money laundering and terrorism finance. Centres such as the Channel Islands perform better in fighting financial crime compared even with bigger countries such as France, Italy, the US or—dare I say it?— the United Kingdom.

Finally, the UK’s Crown dependencies are often accused of being fiscally unsustainable. Again, nothing could be further from the truth. The debate within the UK Government has, naturally, been framed by events surrounding the collapse of Iceland’s banking system. When the Icelandic banks imploded in September 2008, it quickly became apparent that the contagion would spread to British savers and ultimately to British taxpayers. Furthermore, the role of the Isle of Man as a core financial intermediary between British savers and Icelandic borrowers illustrated the UK’s exposure to offshore centres.

However, the subsequent Treasury review went some way towards allaying the two main concerns. In particular, the worries over the fiscal sustainability of UK Crown dependencies proved to be massively overstated. Throughout the years, IFCs such as Gibraltar, the Isle of Man, Guernsey and Jersey, have amassed large budget surpluses while actively diversifying their tax base, as Foot recommended. Indeed, the Foot report commented on the fact that none of Britain’s Crown dependencies has taken on significant levels of borrowing.

It is important that the G20 summit in Korea later this year is made aware of the beneficial role that small IFCs play in the global economy. Above all, we must stand up to misinformed or narrow views of the valuable contributions that small IFCs can offer to the world economy in terms of liquidity, efficiency, investment and economic growth. Let us make no mistake: ensuring that the voices of small IFCs are heard in Korea is very much in our national interest. If we look at the example of Jersey and its positive effect on the wider UK economy, we see that the island provides a conduit through which mobile capital from around the world can be aggregated and invested, primarily here in London.

[Andrew Rosindell (Romford) (Con)]

My hon. Friend’s speech is very welcome. People from overseas territories and Crown dependencies will thank him for raising these important matters. Does he agree that one issue that is always ignored, and which is linked to what he is saying, is that we, unlike other countries with overseas territories and dependencies, do not allow the Governments or people of those territories any say in this place? They have no way of being represented or of speaking up for themselves. They depend on Members of Parliament to raise issues. Does he also believe that, as with other countries with overseas territories and dependencies, there should be some way for those people to be able to speak and to raise their concerns here, in the Parliament that makes laws on their behalf?

[Mr Field]

I have some sympathy with my hon. Friend’s view. This debate is an example of the way in which we are to do that. If he is suggesting that we have a constituency, similar to the French system, that takes in Gibraltar, Jersey and Guernsey, I am sure that he would be only too happy to be a Member. Most people in Gibraltar already believe that my hon. Friend is the Member who looks after their interests. He makes a serious point, and the tremendous contribution that our Crown dependencies and overseas territories make to this country should not be understated. I hope that this debate plays a small part in addressing some of the myths that have arisen.

I want to speak about Jersey, which is a significant provider of administrative and legal services to international businesses that are active in the City of London and help to make it a more attractive place to do business. For example, Vallar plc successfully raised more than £700 million in an initial public offering in London earlier this month, and used a Jersey structure. That showed the respect that investors, professional advisers and companies have for Jersey as a jurisdiction. It also provides banking services to a large number of UK expatriates who are unable to access the UK banking system because they do not have a UK address.

The Crown dependencies also provide an important platform from which to learn about and access the British economy. For example, the Isle of Man acts as the No. 1 jurisdiction for the incorporation of Indian businesses listed in London, and has been identified by a Chinese Government economic unit as an important link in China’s “going out” strategy in relation to Chinese businesses setting up in the EU.

The Isle of Man plays an important and symbiotic role in London’s shipping and insurance markets, inter alia by having such a successful white list ship registry, as well as its fast-growing aircraft registry. Similarly, with satellite, space and film business, the Isle of Man brings into a British sphere of influence important strategic global businesses that might otherwise be drawn to a competitor such as Singapore, Hong Kong or the US. The Crown dependencies are keen to continue acting on this hub-and-spoke basis with the UK and adding value to Britain’s international offering in a proper and transparent way.

Small IFCs desire fair recognition for their high regulatory and supervisory standards and therefore wish to make policy makers from all G20 member countries aware of their true operation, as well as allowing them an effective voice at the table. In that regard, it would be helpful if the Minister gave an indication of what measures the Government can take to ensure that the G20 process is more inclusive, and that policy prescriptions that aim to restore financial stability strike the right balance between the onshore and offshore financial communities and recognise the mutual interests that exist between the two. It would also be helpful to have an update on progress in meeting the Foot recommendations and information on the progress being made through EU and OECD efforts to assist the overseas territories in meeting their own international requirements.

In conclusion, too few people who now seek to impose rigorous regulation on offshore jurisdictions truly understand how those jurisdictions operate. They fail to understand their positive rankings of compliance with major regulatory standards or their beneficial role in promoting investment and growth in the widest elements of the global economy.

It is inevitable that Governments will attempt to prevent further financial crises from occurring—and so they should—and I fear that that will result in the development of global standards that may have an unintended impact on all jurisdictions. It is critical that politicians and policy makers should not depart from the need to formulate and implement policy in an informed, consistent and balanced way. When it comes to our naked self-interest, it would be foolish at this juncture if the UK ignored the proven benefits provided by small international financial centres as part of the City of London’s world-class operations.

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[Mr Hoban]

Indeed. My hon. Friend makes an important point. Adherence to the standards makes the case that offshore financial centres should be part of the global network of financial centres and that they are valued. It is also important to ensure that when people talk about offshore financial centres, the debate is proportionate and evidence based. That is the best basis for debate in the UK, EU and G20. My hon. Friend made important points in that respect in his remarks.

The Foot review recommended that Crown dependencies and overseas territories should have to meet key international standards on tax information exchange, financial regulation, countering the financing of terrorism and anti-money laundering. The review strongly recommended that British Crown dependencies and overseas territories need to diversify their tax bases in a way that helps to secure their long-term economic sustainability. My hon. Friend made the argument that a number of territories had already done that and had withstood the financial crisis.

[Andrew Rosindell]

My hon. Friend the Minister talks about long-term stability. Does he agree that any attempt to undermine the ability of Crown dependencies and overseas territories to be self-sufficient and to look after their own affairs would in the end rebound on the British Government, with the possibility that we would have to finance some of those territories, so it is vital that policies from here, from Brussels or from anywhere else do not undermine the ability of our territories to be self-sufficient for the long term?

[Mr Hoban]

My hon. Friend makes an important point, but what he refers to must be done within the context of adhering to the highest possible international standards. We need to ensure that that international framework exists and that the territories comply with it; otherwise they are open to attack by other nations. Yes, it is important that the territories are economically sustainable and are not dependent on the UK, but at the same time they must meet those international standards, and a number of territories have made quite significant progress towards that goal.

With regard to the sustainability of overseas territories, they were encouraged to improve the management of their public finances to ensure that they were well equipped to withstand unexpected economic and financial shocks without external fiscal assistance. We need to recognise the progress that has been made to comply with the standards. I understand that 28 jurisdictions—almost exclusively tax havens and offshore financial centres—have moved into the category of jurisdictions that have substantially implemented international standards on tax transparency. That shows that overseas territories are taking the measures seriously, and we encourage them to continue to do so. Over the next three years, 100 jurisdictions will be peer reviewed, which will be an important part of the process to give confidence in how the standards are being implemented.

I recognise the importance of the role that offshore financial centres can play. They are an important contributor to the City of London. They provide services to UK citizens, whether at home or abroad. However, it is vital that they comply with the highest international standards on tax transparency and dealing with terrorism financing and money laundering. Adhering to those standards would be the best safeguard for their future prosperity.