Banking Union and Economic and Monetary Union

Debate between Brian Binley and Nigel Evans

Tuesday 6th November 2012 Commons Chamber

[Mr Brian Binley (Northampton South) (Con)]

I remember well those long-gone days when we were told that monetary union would bring strength to the EU, be enduring and serve to bring our economies together. By golly, how time does fly, and how truth changes the vision. Recent experience has shown that political ambitions exceeded economic reality, and fault lines were built into the single currency from the start. Structures have been put to the test and, quite frankly, been found wanting.

The problems facing the euro might not have started in financial services, but the crisis has certainly highlighted those fundamental flaws. Sovereign debt might not be limited to the eurozone, but its constraints within the economic and monetary union exacerbated the crisis. Unless Europe gets to grips with those problems, the entire project could disintegrate before our very eyes. That is the situation we are facing. We are debating a desperate attempt to apply sticking plaster to a serious wound. The flaw is inherent; the mistake already made. Membership of the single currency was extended way beyond that initially envisaged, and therein lies the fault, which is not dealt with by any of the measures proposed today. Banking union may sound like a measured response, but the creation of a European banking union is a world away from a co-ordinated international response. President Barroso revealed his agenda in his “State of the Union” speech, raising the issue of banking union in the context of a push towards a federal European state. That is the truth of the matter.

Our first priority must be to resist any financial transaction tax. That is not a new idea; in 1984, Sweden introduced a 0.5% tax on the purchase or sale of shares. By 1990, 30% of all Swedish equity trading had moved offshore—more than half of it to London—and the volume of bond trading had declined by 85%. That is the damage that a financial transactions tax can do to this country. It is vital that the Government have the courage to resist it.

Will the Minister expand on the references to fiscal probity that allow for spending on social fairness? Is that a get-out clause for grossly indebted Governments who want to keep spending they do not have? It sounds very like it to me.

The report on EMU accepts that public opinion is key, but that is another way to justify spending taxpayers’ money on propaganda. Our Government have stopped the money-go-round in local government and quangos. It would be totally inconsistent to allow Eurocrats to deploy hard-earned taxpayers’ money to propagate grand visions that have already proved to be failures.

Earlier comments on the document made it clear that fiscal integration is about a continued movement to a federal Europe. I could quote page after page, but I will not bore the House. The truth of the matter is that we need to be sure that our Government’s promises to us are absolutely watertight, fast and hard-held. If they are not, the House will be doing a massive disservice to our children and grandchildren. That is what this measure is about.

I noticed a slight smile on the face of the Minister when I made a point about social well-being. If he looks into it a little more, he might begin to agree with me. If I had the time, I would explain.

Finally, as my hon. Friend the Member for South Northamptonshire (Andrea Leadsom) said, we need to take this opportunity as a base to renegotiate—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order.

Legal Aid Reform

Debate between Brian Binley and Nigel Evans

Thursday 3rd February 2011 Commons Chamber

[Mr Brian Binley (Northampton South) (Con)]

I had hoped to speak for about 25 minutes, but I find that I have to cut my speech down to four minutes, so I shall be to the point and abrupt.

I wish to make a plea to the Minister about lawyers who fight against corporate, local government and Government bodies that are under serious pressure to make serious cuts and sometimes get things wrong to the detriment of the most vulnerable in our communities. I wish to set out a particular case to the Minister, because I believe that the Legal Services Commission is already taking action to cut expenditure sizeably, but should not be doing it in quite the way that it is.

I wish to talk about a company called Hossacks Solicitors, which is one of the 78 legal companies that fight on behalf of community services. It has done a tremendous job—I have been on the wrong end of it on occasions in the past. However, in 2010 the LSC, which had granted a contract to Hossacks to fight a legal matter, said that it had issued the contract in error. The company disputed that fact on the grounds that it had entered into a binding legal contract with the LSC. The LSC replied on 6 January this year, terminating the contract in its entirety. The company appealed and was told that the appeal would be heard within two weeks. It has now been told that it will not be heard until the end of March, by which time many of the budgets will be set and many of the cuts will be beginning to bite. That is too late for the vulnerable people Hossacks was going to represent.

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Is the hon. Gentleman talking about a live case?

[Mr Binley]

No, I am not, because it has been stopped by the LSC.

I simply want the Minister to look into the matter to see how many more vulnerable people are being affected by decisions taken by the LSC that are premature given the debate that is currently going on.