Public Service Pensions and Judicial Offices Bill [Lords]

Andy McDonald Excerpts

Report stage
Tuesday 22nd February 2022 Commons Chamber

[John McDonnell (Hayes and Harlington) (Lab)]

I declare an interest in that I am a member of the local government pension scheme. I want to address the amendments standing in my name—new clause 10 and amendments 22 and 24—but I would also like to comment on new clause 1.

On the debate about whether or not this is public money, I thought, as a member of the local government pension scheme, that the Supreme Court was pretty clear that this is not public money in the sense that would enable the Government to issue guidance. However, I have to say that new clause 1 goes further than guidance; it actually includes directions as well. I work on the basis, as I did when I was employed in local government, that the money I earned and the money forgone to invest in my pension scheme was my earned income; it was not public money under the control of the Government.

I think there is a lesson for us all here in that I believe that only in extremis—only in extremis—should the state interfere in one’s own privately earned income. I say that because, in the pension scheme regimes we have at the moment, we have an element of representative democracy with the trustees often being representatives of the workforce and other experts. That reassures me that, as a member of the pension fund, I have an element of say in what those trustees do, if they are appointed, and that enables me and other members of the pension fund to exercise an element of control over decision making, but also to exercise an element of conscience.

[Andy McDonald (Middlesbrough) (Lab)]

Does my right hon. Friend agree that the clumsy way in which new clause 1 has been worded will create a chilling effect on risk-averse pension scheme managers in fulfilling their fiduciary duties and other responsibilities? Does he also agree that it will significantly incapacitate the ability of pension schemes to invest ethically, and the rights of pension scheme members and pension schemes to express and have ethical views taken into account in the investment of their own money?

[John McDonnell]

I agree with the first point, but let me take up that last point, because I just want to explain to other Members where I am coming from and get it on the record.

On moral grounds, I have argued very strongly within my own local government pension scheme—so far, I have to say, unsuccessfully—that I do not want the money I have earned, and part of my pension is my earned income, to be invested in a number of states. They include Saudi Arabia, because of its involvement in Yemen. In fact, I have organised demonstrations when there were visits from various representatives from Saudi Arabia to this country. I have argued that I do not want my pension invested in China because of the treatment of the Uyghurs. Again, I have engaged in demonstrations on that, and also on the moral ground that a number of trade union friends I have worked with over the years are currently in prison as a result of the operation undertaken by the Chinese state in Hong Kong. Yes, I have argued against investments going into Colombia because of the murder of trade unionists, and I have also argued against investments going into Israel because I do believe—according to the Amnesty human rights report, and many Jewish institutions—that it is an apartheid state in the way it treats the Palestinians.

That is my position: on moral grounds, I want to be able to influence the investments. I do not want my pension invested in armaments or fossil fuels either, and I believe that that is my right. I do not believe it is the role of the state to ride roughshod over my moral choices without extremely good reason. Given the threat of climate change and other matters, there may well be, in extremis, reasons for the state to act, but I do not think that this new clause is in that context.

Tackling Fraud and Preventing Government Waste

Andy McDonald Excerpts

Tuesday 1st February 2022 Commons Chamber

[Michael Ellis]

I will just make some progress.

I am sorry that Lord Agnew chose to resign from his position as a Minister in the Treasury and in the Cabinet Office, and I want to take this opportunity to thank him very much for the important work he did while he was in government. The Government have been working to achieve better quality government for citizens, with relentless focus on outcomes, ensuring every £1 of taxpayers’ money is spent well; ensuring policy making reflects the communities we serve through, for example, the movement of civil service jobs away from London to Darlington, Stoke, Preston and elsewhere; driving the post-Brexit procurement rules reform to make procurement more transparent, provide better services to citizens and deliver social value; and procuring ventilators at the beginning of the pandemic. We have focused on value for money and supporting the taxpayer.

[Andy McDonald (Middlesbrough) (Lab)]

The Minister is talking about good stewardship of public money, but was he as concerned as I was to read in the press that, under the Tory Tees Valley Mayor, the public share of the joint venture to develop and secure major industrial opportunities, which has had tens of millions of pounds of taxpayers’ money invested in it, has been transferred to JC Musgrave Capital and Northern Land Management? Does that not raise major questions about how public moneys have been spent? Does he agree that, given wider concerns about governance and the vested interests of political donors, what is needed is an independent inquiry into the governance of the Tees Valley Combined Authority and the South Tees Development Corporation?

[Michael Ellis]

What I do know is that Ben Houchen is an excellent Mayor and Labour wishes that it had mayors like him.

Fraud is unacceptable wherever and however it is perpetrated. The Government remain determined to stamp it out. I can say that as a Minister and a former Attorney General, and as someone who prosecuted such cases in an earlier life—

Downing Street Parties: Police Investigation

Andy McDonald Excerpts

Tuesday 25th January 2022 Commons Chamber

[Andy McDonald (Middlesbrough) (Lab)]

My Middlesbrough constituents have obeyed the rules, done exactly what the Prime Minister demanded of them and abided by the laws that he initiated. Does the Paymaster General not understand that the continued refusal to do the right and decent thing only serves to damage our democracy and tarnish our reputation across the world? That will not be turned around until such time as the Prime Minister goes and brings this shameful business to an end.

[Michael Ellis]

No, I do not agree with the hon. Gentleman’s characterisation.

Downing Street Garden Event

Andy McDonald Excerpts

Tuesday 11th January 2022 Commons Chamber

[Michael Ellis]

I think the hon. Lady is fair—I am sure she is fair—and I think she does clearly know that no disrespect is intended, but what she does not recognise is that what is also fair is the proper administration of justice, and one of the fundamental tenets of fairness, a pillar, is to allow investigations to continue. She wishes to prejudge; she wishes to cast stones before she knows what has exactly happened. The fair thing to do would be to await the result of any investigation that has been commissioned.

[Andy McDonald (Middlesbrough) (Lab)]

If ever there was a time to be candid with this House, it is now. I am asking the Paymaster General a question, not anybody else. He did not answer my hon. Friend the Member for Garston and Halewood (Maria Eagle), so I will give him another go. Has the Paymaster General been told whether the Prime Minister attended the Downing Street party on 20 May or not? If so, what was the answer?

[Michael Ellis]

I am not going to discuss in this House what private conversations take place between Government Ministers.

[Andy McDonald]

You have a duty to this House.

[Michael Ellis]

I know my duty to this House, and the reality of the matter is that the hon. Gentleman wishes to prejudge the matter. He is wrong to do so. It is not a matter for me—I am not conducting the inquiry—but a matter for Sue Gray. Sue Gray and her team will be investigating the matter and will come to the due conclusion. He should wait patiently for that. I think the predecessor question was about when that answer will come. I do not know the answer to that, but we have asked that it be done swiftly, and as soon as that is possible, it will be given.

Downing Street Christmas Parties Investigation

Andy McDonald Excerpts

Thursday 9th December 2021 Commons Chamber

[Michael Ellis]

I do not understand the nature of the hon. Lady’s question—[Interruption.] She does not know the Prime Minister. I do know the Prime Minister and have done for many years. He is a friend of mine and I know him to be a man of honour and integrity who is working hard in the interests of the people of this country, and she should reflect on the public service that all in the Government and the Opposition do to the best of their abilities.

[Andy McDonald (Middlesbrough) (Lab)]

From Collette in Middlesbrough:

“During lockdown, my 74-year-old mam was really lonely and depressed, but obeyed all the rules, as we all did. She sadly passed away in January 2021 alone in her flat. We were only allowed 30 people at the funeral so lots of mam’s friends and family were unable to attend. Nor were we able to have a wake to celebrate her life afterwards and comfort us. The government robbed us of that. So how dare they break the rules and hold a Christmas party. I’m crying as I’m typing this email, been crying since I watched the news yesterday. People must be held accountable and police action taken. We cannot let them get away with it.”

So instead of Allegra Stratton carrying the can, will the Prime Minister for once in his privileged, narcissistic, cheating existence do the right thing and resign?

[Michael Ellis]

My condolences to the hon. Gentleman’s constituent. The Prime Minister has said, as I have said from this Dispatch Box, that disciplinary action will be taken if appropriate. I hope that the hon. Gentleman’s constituent can be reassured by that. As to the course of action the police choose to take, if any, that is a matter entirely independent of Her Majesty’s Government; it will be up to the police as they are operationally independent. We have said that the Cabinet Secretary will involve the police if, during the course of his investigation, he uncovers any criminality.

Oral Answers to Questions

Andy McDonald Excerpts

Tuesday 7th December 2021 Commons Chamber

[Rishi Sunak]

My hon. Friend makes an excellent point about the Welsh Government. This Government are supporting hospitality businesses with a lower rate of VAT till spring worth £7 billion and a business tax cut next year that has Barnett consequentials for the Welsh Government, so hopefully they can do the same.

[Andy McDonald (Middlesbrough) (Lab)]

T2. New research from the TUC shows that 647,000 workers in sectors such as hospitality, retail and entertainment do not qualify for statutory sick pay. Before the Chancellor points to the Government’s temporary support scheme, 64% of people who apply for it are told that they do not qualify. The Government have been quick to hand massive contracts to their friends, so why can they not improve statutory sick pay for workers so that more people can afford to self-isolate and recover from illness when they need to?

[Rishi Sunak]

At the beginning of the crisis, we improved how statutory sick pay works, making it payable from day one. We also changed some things in universal credit and indeed expanded its definition. We also put in place self-isolation payments to help.

Budget: Pre-announcement of Provisions

Andy McDonald Excerpts

Tuesday 26th October 2021 Commons Chamber

[Mr Clarke]

I would be happy to look at the hon. Gentleman’s recommendation, but there will be further announcements on the community ownership fund tomorrow.

[Andy McDonald (Middlesbrough) (Lab)]

Mr Speaker, you may have read in the press that the Chancellor is preparing to tell us tomorrow that the national minimum wage will increase to £9.50 next April, but that remains way below the income that a worker can live on. Worse still, the savage age discrimination will carry on, with young people in Middlesbrough, across Teesside and across the country having to suffer appallingly low pay. The current rate for under-18s is £4.62 an hour. That is an increase of just 98p since 2010, meaning that their wages have gone down in real terms. Will the Government stop treating young people with such disdain, commit to scrapping the age bands and uplift the national minimum wage to £15 an hour, so that all workers can live fully flourishing lives?

[Mr Clarke]

I thank the hon. Gentleman for his point. Clearly, he might want to take this matter up with the leader of his own party, as I understand that it has been the subject of some disagreement. The Government are of course committed to ensuring that younger workers get fair pay. We obviously have to balance that against the wider commitment that we have to ensuring that we do not perpetuate the serious situation of youth unemployment that we inherited from the last Labour Government. There will be good news for younger workers in the Budget tomorrow.

Flybmi

Andy McDonald Excerpts

Monday 18th February 2019 Commons Chamber

[Andy McDonald (Middlesbrough) (Lab)(Urgent Question)]

To ask the Secretary of State for Transport to make a statement on airline Flybmi going into administration.

[The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)]

On 16 February British Midland Regional Limited, the east midlands-based airline which operates as Flybmi, announced that it had ceased operations from that date and filed for administration. The group has surrendered its licence to operate in the United Kingdom, which means that it is no longer able to operate flights.

There has already been significant speculation about the reasons behind Flybmi’s failure. Ultimately, this was a commercial matter for the airline. Flybmi operated in a very competitive industry and was exposed to wider pressures faced by the global aviation industry, such as increasing fuel prices. It is very disappointing that it has gone into administration, and we know that this will be a very difficult time for those who have lost their jobs as a result. Many of those affected are highly skilled. We are confident that they will find suitable employment opportunities, and we welcome the moves by the sector to offer such opportunities.

The Insolvency Service’s redundancy payments service is working with the administrators of Flybmi to ensure that former employees’ claims from the national insurance fund, which may include redundancy pay, holiday pay, arrears of pay and compensatory notice pay, are assessed as quickly as possible. However, given that the sector is ready to recruit, I hope that new jobs will be found soon.

I also recognise that this is a disruptive and distressing time for passengers, and the Government’s immediate priority is fully focused on supporting those affected. We are in active contact with airports, airlines and other transport providers to ensure that everything possible is being done to help them. We and the Civil Aviation Authority are working closely with the travel industry to ensure that the situation is managed with minimal impact to passengers.

There are enough spaces on other flights for passengers to return home on other airlines, and we welcome the sector’s move to offer rescue fares for affected passengers. For example, Flybmi has codeshares across the Lufthansa group and passengers on these flights will be subject to the EU passenger protection rules. They will be provided with assistance and rerouted to their final destination. Travel insurance and credit card bookings are worth noting here, and most passengers were business travellers so will be covered through their work. In addition, the Civil Aviation Authority is providing detailed information for affected passengers on its website, including how people can claim back money they have spent on tickets.

The Government recognise the importance of maintaining regional connectivity, which is why we fund a public service obligation route from Derry/Londonderry to London, which was recently extended from 1 April 2019 for a further two years, the norm for PSOs. The chief executive of Derry council has the power to transfer the PSO contract to another airline for up to seven months to allow for a new procurement process to be conducted. Subject to due diligence we expect the council to sign contracts and appoint an airline later this week, and we expect services to resume swiftly. Derry City and Strabane Council takes forward that part; it is its responsibility.

All affected regional airports have been contacted, and while they are disappointed, we are confident that this will not cause them significant issues. A number of airlines have already indicated that they will step in to replace routes previously served by Flybmi. For example, Loganair has publicly announced that it will cover routes from Aberdeen, Bristol and Newcastle. Our priority is to protect employees, passengers and local economies. We are fully focused on supporting those affected and remain in close contact with the industry and the CAA to ensure that everything possible is done to assist.

[Andy McDonald]

It will not have escaped anybody’s attention that the Transport Secretary is sitting on the Treasury Bench yet has not come to this House to make a statement. He seeks to hide behind his Minister; she has been dropped in it. Perhaps he has been dealing with the bombshell dropped by Honda this morning.

Eighteen months ago Monarch Airlines left taxpayers with a bill for more than £60 million. Clearly the Government have failed to learn the lessons from that disaster. In fact, the Transport Secretary has dithered and delayed for nearly a year, allowing Loganair to cherry-pick the profitable parts of Flybmi before putting it into administration. The Government have clearly done nothing to stop a repeat of Greybull’s asset-stripping of Monarch.

Flybmi has been in difficulty for some time, so what plans did the Department for Transport have for an airline’s collapse? Have not the Government left both Flybmi’s passengers and staff high and dry? Why was the airline allowed to sell tickets only hours before administration? Why are the Government not helping people get home this time?

On Thursday last week, the Government agreed to extend the subsidy for Flybmi’s London to Derry route. Was the DfT aware that the airline was about to collapse when it agreed this commitment of public money? What checks did Ministers do on the airline prior to agreeing this? The Government’s aviation Green Paper boasts of growth and connectivity; in reality, Flybmi is the second UK airline to fail within months, while the UK’s direct connectivity has declined.

The Government’s complacency is staggering. Flybmi has said that

“the challenges, particularly those created by Brexit, have proven to be insurmountable”,

and:

“Current trading and future prospects have also been seriously affected by the uncertainty created by the Brexit process, which has led to our inability to secure valuable flying contracts in Europe and lack of confidence around Flybmi’s ability to continue flying between destinations in Europe.”

So when will this Government wake up to the undeniable truth that their shambolic handling of Brexit is leading our country into an economic disaster?

[Ms Ghani]

I have never been a woman who has been “dropped in it”; it is my job and I am disappointed that the shadow Transport Secretary wanted to see a he and not a she at the Dispatch Box, but hopefully I can respond to his questions in the best way I can. I am also a little disappointed that the shadow Front-Bench team are all in their seats today considering the bold decisions their colleagues have taken to leave the Labour party because of a number of issues, including leadership and institutionalised antisemitism. We are talking about disappointment, but we should focus on the passengers.

We were made aware of Flybmi going into administration at the weekend. A number of conversations have been taking place. The Aviation Minister has spoken to the Cabinet Secretary responsible for transport in Scotland.



The Secretary of State has spoken to the Northern Ireland Secretary and to the local MP, the hon. Member for East Londonderry (Mr Campbell). Information is being made available on the Civil Aviation Authority website to alert passengers about how they can get home. We must focus on the passengers who may be struggling to get home, but there are lots of alternative flights and that information is being made available. More than 300 staff have been impacted, but it is interesting to note that Loganair and Ryanair are making jobs available and recruiting heavily. The British Airline Pilots Association is also exploring options for pilots with partner airlines.

The hon. Gentleman noted the business case for Flybmi. It was possible to recognise, looking at its accounts, that it had been struggling for a while, including before Brexit and before the referendum. It is not an easy market for airlines to be in, especially regional and local airlines. He mentioned Brexit as a reason for Flybmi going into administration, but it is important to note that several other smaller airlines in Europe have also gone into administration, including Germania, VLM, Cobalt and Primera, and there are lots of different reasons why this takes place. We cannot always blame Brexit when we do not understand the business case.

The hon. Gentleman mentioned the public service obligation and wanted to put the blame at the door of the Department for Transport. In case I did not make myself clear in my opening statement, Derry and Strabane Council is responsible for maintaining and managing the contract. We of course support the route via the public service obligation because it is a lifeline route. I know that that reply must come as a disappointment to him, but that is where the responsibility lies. Derry and Strabane Council has made it clear to the press and to us that it is very positive that an alternative airline will be in place soon enough. It is important to note that the aviation sector in the UK is thriving and that passenger numbers have gone up by almost 60% compared with the numbers in 2000, but it is a very tricky sector to be in, especially for the small regional players in this very large market. I hope that those responses will not be too disappointing for the hon. Gentleman.

The Economy and Work

Andy McDonald Excerpts

Thursday 26th May 2016 Commons Chamber

[Mr Osborne]

Labour had the worst results for an Opposition party in more than 30 years and were reduced to third place in Scotland. And Labour Members think that that is a good set of results! As far as we are concerned, if they want to carry on in this parallel universe that suits us just fine. Meanwhile, we are going to get on with governing the country, improving the economy and reforming our society.

The Government have made huge progress in the past six years. We inherited one of the weakest economies in the advanced world, which had had one of the biggest crashes. It is now one of the fastest-growing economies in the advanced world. We inherited an economy in which millions of people risked losing their job, and hundreds of thousands had. We now have a record number of people in work. We reduced the budget deficit. Our commitment to the northern powerhouse has seen investment projects in the region increase by 120% in the past two years. The verdict of the IMF in its recent examination of the British economy is clear:

“The UK’s recent economic performance has been strong, and considerable progress has been achieved in addressing underlying vulnerabilities.”

It said growth was robust and that

“the unemployment rate has fallen substantially, employment has reached an historic high, the fiscal deficit has been reduced, and financial sector resilience has increased.”

That is the independent verdict of the IMF. In the past, article IVs have been critical of the British economy; now they celebrate what we have achieved.

Many challenges remain, of course, and that is what the economic reforms in the Queen’s Speech will address. There is the immediate crisis in the global steel industry. My right hon. Friend the Business Secretary has just outlined to the House all our efforts to secure jobs here at home. There is a long-term challenge facing western societies of how we increase productivity growth. Improvements in productivity drive lasting improvements in living standards. That is a challenge for all countries. Indeed, the latest figures today from the United States show that productivity is set to fall this year for the first time in 30 years.

[Andy McDonald (Middlesbrough) (Lab)]

The right hon. Gentleman mentions the steel industry. The judgment of the people of Teesside is not as favourable as he seems to think it might be. There is a nationwide proposal for innovation, research and development on the table from the Materials Processing Institute that would propel our steel industry through the creation of academy centres. Will the Chancellor encourage the Business Secretary to attend the site and examine the proposal for himself? It would benefit the whole industry,

[Mr Osborne]

It has been a very difficult time for steelworkers and their families on Teesside. We have provided financial assistance to those families. We have worked with local Labour authorities to help to remediate the site and bring more jobs and opportunities into the area. I will take a very close look at the proposal. As part of the Government’s industrial policy, we are supporting research and innovation through such things as the Catapult centres, which have been a real success.

Draft Disclosure of Exporter Information Regulations 2015

Andy McDonald Excerpts

Wednesday 9th December 2015 General Committees

[Damian Hinds]

I thank the hon. Lady who speaks for the Opposition for her, as ever, constructive and insightful contribution to the debate. She asked a number of questions and raised several issues for clarification, some of which we have covered and others of which I will try to respond to now.

The measure is all about the Government’s commitment to UK growth and giving exporters and their customers the right information at the right time to allow them to prosper and increase their business. It adds to the range of tools at their fingertips. Exactly how it will be used remains to be seen. Companies and intermediaries tend to be creative, and people operating online tend to be even more creative, so they will probably come up with ways of leveraging data that were not anticipated when the dataset was created.

The hon. Lady asked about the safeguards and opt-outs, and about whether concerns that are less serious, as she put it, but still significant and legitimate will be taken into account. I set out the current safeguards to protect commercial and strategic confidentiality and the measures proposed by HMRC to ensure confidentiality of businesses in the future with the new exporter dataset, which will be fully in line with those currently in place for importers’ details. I should clarify that it is about non-EU trade.

The arrangements for importers have been in place for many years. They have a high level of usage and industry is highly confident in them. No significant issues about disclosure have arisen.

[Andy McDonald (Middlesbrough) (Lab)]

When we look at the explanatory notes and the consultation outcome and hear that there were only five respondents—

[Damian Hinds]

Fifteen.

[Andy McDonald]

The figure is very small. We were told that a small number are concerned that the publication of their identity and the sensitive nature of the goods that they export might attract adverse interest, and that measures will be put in place to address their concerns. Can the Minister say a little more about the nature of the businesses that are so concerned about this measure, given that it must be a pretty targeted and focused group of activities?

[Damian Hinds]

I do not have the names of the individual respondents or the details of their business, but clearly businesses in sensitive sectors are more likely, first, to be concerned and, secondly, to respond to a consultation on the issues. We think that we have created a sufficient framework of opt-out and of mitigating measures to protect confidentiality and that we have got the balance right. Clearly, there is a value to the dataset and to promoting trade, but there are also the legitimate concerns and reasonable requirements of certain businesses to keep their details confidential. We have to find the balance, and we think that this one is reasonable.

[Andy McDonald]

I am grateful to the Minister for giving way. We are talking about the “sensitive” nature of some businesses—are we talking in particular about people dealing in arms? What are we talking about? What are the specific trades that cause concern?