Oral Answers to Questions

Barry Sheerman Excerpts

Thursday 4th July 2013 Commons Chamber

[Mr Paterson]

My hon. Friend is right to raise that point. I have said on many occasions—I frequently repeated myself during the negotiations—that we must ensure that the way in which we impose CAP reform is simple and easy to understand. We will not make the mistakes of the previous Government, who caught us up in a horribly complex system that cost us €590 million in what the EU calls disallowances but in what I would call a fine.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

May I urge the Secretary of State to be a champion of joined-up government? The G8 settlement on social impact investment was a breath of fresh air; can it link to anything in the CAP settlement, so we can get some serious social impact investment in the rural economy?

[Mr Paterson]

As I told the hon. Member for Bristol East (Kerry McCarthy), we intend to modulate 15% into pillar two, and there are real benefits for the rural economy, the rural environment and rural society from our rural development programme for England schemes.

--- Later in debate ---

[Sir Tony Baldry]

I agree with my right hon. Friend. The Anglican Mutual credit union is raising capital from a number of sources to increase its capacity. I have been checking, and I think that practically every book in the Old and New Testaments exhorts against usury. In the other place, the Archbishop of Canterbury wisely stated:

“The Financial Services Act provides for a study of the consequences of a cap to be looked at and then for the cap to be brought in at an appropriate level. Caps are needed at a sensible level that does not choke off supply and send people into the hands of loan sharks…Caps are there to prevent usurious lending…We need to…cut out legal usury from our high streets.”—[Official Report, House of Lords, 20 June 2013; Vol. 746, c. 485.]

I entirely agree that we need to work out how we can prevent legal usury from continuing in this country.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

May I press the hon. Gentleman on this matter? Surely what was said at the G8 about social impact investment is manna from heaven for the Church of England, because it can be used to provide an alternative for social enterprises at the heart of the community. This is not just about payday loans; fixed-odds betting is the curse of our urban communities.

[Sir Tony Baldry]

I am not entirely sure where the hon. Gentleman seeks to differ from me on this. I certainly think that we need to sort out legal usury, and I hope that my right hon. Friend the Member for Bermondsey and Old Southwark (Simon Hughes) and I will form part of an all-party delegation to discuss with Ministers how we can cap those rates of interest that seem somewhat usurious.