Public Service Pensions Bill

Debate between Chris Leslie and Stephen McPartland

Monday 22nd April 2013 Commons Chamber

[Chris Leslie]

I am very sorry that the right hon. Gentleman’s true colours have come through in that way. He is clearly not going to support the move to reduce the retirement age to 60. He should, and I will tell him why. The key question was put by Lord Eatwell in the other place, who asked about the different treatment and whether the Government could justify it. He asked:

“In what way is it less onerous, when they”—

that is, the MOD firefighters—

“have to work on military establishments”—

as the hon. Member for Colchester (Sir Bob Russell) said—

“dealing on occasion with extremely dangerous materials, and occasionally also in war zones? How is their job less onerous?”—[Official Report, House of Lords, 12 February 2013; Vol. 743, c. 568.]

Unfortunately, my noble Friend did not receive a satisfactory answer to the question, so I repeat it now to the Minister: what reason is there for that different treatment? Do not Ministry of Defence police officers have to stay fit, remain physically alert and intervene in events of great physical danger? Do not Ministry of Defence firefighters have to be ready to run the gauntlet, endure the exertions of search and rescue in extreme circumstances, take intense risks, prove their stamina and make sure that they can rise to the most testing of circumstances? The arguments that justify excluding the police and fire and rescue workers from the link between state pension age and normal pension age apply equally to the MOD police and the MOD firefighters. Just because they are a tiny number of workers should not mean that Ministers can just turn a blind eye and ignore the issue. We cannot allow it to be swept under the carpet. There is no reason for the difference, and the Government have no justification for opposing the amendments.

[Stephen McPartland (Stevenage) (Con)]

This is a difficult amendment owing to its emotive nature, with a small number of people feeling almost as though they have been victimised. If the Government reject the amendment, can the hon. Gentleman offer those workers some hope that if Labour formed a Government in 2015, it would do as the Lords amendments say?

[Chris Leslie]

I am amazed that hon. Members who are in government refuse to take responsibility for the offices that they hold and for the decisions that they have in their grasp. I said that it is important to admit that a mistake has been made for these 350-odd MOD firefighters and police. Why on earth cannot Members on the Government Benches say the same? [Interruption.] If the Minister wishes to correct me, I shall be delighted to hear.

--- Later in debate ---

[Chris Leslie]

The hon. Gentleman is fortunate—as are we all—to have been elected by his constituents to make decisions, and what could be simpler than this? Essentially it is about whether all firefighters and police officers, whoever their technical employer, should be able to retire at 60. The hon. Gentleman is flannelling around trying to find reasons not to do that, but in his heart of hearts he thinks they should retire at 60—does he not?

[Stephen McPartland]

I genuinely believe that people should have the opportunity to make that decision and consult the Government and the trade unions. I do not want a broad-brush approach to this matter. It is not that I do not trust the shadow Minister, but he is trying to pull me into a political trap. I am not interested in politics in that sense; I am interested in representing my constituents and I do not want to accept an amendment that could technically make those fire and police officers worse off in the future. I would like to know far more about the details behind the amendment and what accepting it would mean.

The Minister mentioned a figure of around 8% that could be a reduction in net pay. If we accept such an amendment, and the mistake made by the previous Government in 2007 is reversed, I think we should negotiate with trade unions and fire and police officers so that we fully understand what its impact will be on their take-home salary at the end of each month, and how it will affect decisions in their careers and moving forward. I want everybody to have a fair opportunity, and as I have said, I am proud of the public sector and the work it does. Although the amendment seems fair, I do not feel that I can support it because of the broad-brush approach that could lead to MOD police officers and fire service personnel having a worse set of circumstances in a year or two, just so that party political points can be scored. Unfortunately, I will not be able to support the amendment, but I urge the Minister to provide us with more detail in his winding-up speech about how he will encourage the MOD to sit down with the unions and ensure that the pension age will not rise above 65, and that any decision on the pension age will be about 65 and downwards.

Banking in Scotland

Debate between Chris Leslie and Stephen McPartland

Thursday 14th October 2010 Westminster Hall

[Chris Leslie]

Much as we in politics might like to think that everything done in the political game shapes society at large, my view is that the economy and society around us—not only in this country but in the world at large—suffered from too much exuberance when it came to the allure and attraction of profitability in that sector. We should have taken a far more hard-headed approach all round. Much as I congratulate the hon. Gentleman on trying to make a party political point about the root cause of the global credit crunch, it would not be fair to pin it on one or two politicians in one or two countries. The problem was systemic and we must all learn the lessons from it; otherwise it will be repeated—and that will affect Scotland as well as the rest of the world.

HBOS was merged with Lloyds TSB to form Lloyds Banking Group, and subsequently took advantage of Government capitalisation, which led to 43% public ownership. RBS received public funds resulting in 63% public ownership, rising to about 84% with subsequent injections of new capital. Special liquidity support and a number of other instruments created circumstances where the Government were very much foisted into the driving seat of our financial services industry.

The Government set a number of conditions, and I am glad that the present Administration have maintained a number of them. They include urging the banks to maintain competitive lending to retail and business customers at 2007 levels and encouraging the banks to deal with several of the failings that they experienced, including issues of remuneration, restricting dividend payments, helping people struggling with mortgage payments and so on. Of course, experience tells us that we still need to hold the feet of the banks to the commitments drawn out of them in exchange for the resources that were given to save their very existence. We should certainly ask the Government and the Minister to what extent they are succeeding.

[Stephen McPartland (Stevenage) (Con)]

I congratulate the hon. Gentleman on his new role as shadow Minister. Does he agree that some of the rhetoric used, such as “holding the banks’ feet to the fire”, has created an awful situation for many of those working on the front line in the banks, who receive abuse or suffer the emotional difficulties that some Members have described today? We need to move away from that rhetoric and towards the understanding that only a small group of people were involved. The main reason for the banks’ difficulties was the lack of regulation in the past 10 years or so. The banks became such complex organisations that they almost lost control over what they were doing. Unfortunately, it is those now on the front line who are taking abuse for what was done by those who have now moved on to other highly paid roles.

[Chris Leslie]

I understand where the hon. Gentleman is coming from. It would be unfortunate if a cashier or teller was wrongly blamed by a member of the public for something that their bank or institution had done. I know that only a small number of individuals were involved in what happened, but this is an institutional problem and not just a personalised one. We cannot just change the faces of the directors at HBOS or RBS and expect that all the problems will be ironed out. Although we must consider the regulatory environment, we should understand that the problem is more the culture of the companies in that sector in general. As we know from other circumstances, Government can cajole and set the rules, but ultimately they are not the ones who should be running those firms responsibly. Good corporate governance should have taken a different path; it did not in the credit crunch. I hope that we can get things back on the rails, so that we have a sustainable and solid—perhaps some would say boring—financial services sector in future, and regain some of the trust that the City and the financial services industry both here and in Scotland truly deserve.

The report raises issues that definitely deserve attention. My hon. Friend the Member for Glasgow South West talked about the bonuses paid to high earners and the juxtaposition between ordinary front-line staff and the well paid senior executives. I am glad that the previous Chancellor instituted that one-off bank bonus levy of 50% on discretionary bonuses above £25,000. It yielded £2 billion, which was far more than expected. It will be interesting to watch how the current Administration and the Minister seek to deal with the ongoing concerns of the general public about excessive remuneration. Those concerns are legitimate and need to be addressed to rebuild the trust that is much deserved by those who are genuinely working hard to do their best in a very complex industry.

The hon. Member for Argyll and Bute (Mr Reid) mentioned the willingness of banks to lend to businesses. Discussions are under way with the British Bankers’ Association and others, and reports have been published today. We are hearing many conflicting reports. The banks themselves are adamant that money is available, yet the reports that we consistently receive in our surgeries across the country is that small and medium-sized enterprises are finding the hurdles that they have to jump over too high and that, too often, banks are not willing to do business with them. That exerts a lag effect on our economy in general and the problem definitely needs the Minister’s attention. We want the commitments that were given at the time of the rescue of the banking sector to be properly enforced. We should also see the public stake in our banking sector activated. Given that the public own that stake, they, like any owner of any company, should be able to ask that lending arrangements are fulfilled in the best interests of our economy.