Finance (No. 3) Bill

Debate between Chris Stephens and Angus Brendan MacNeil

2nd reading: House of Commons & Programme motion: House of Commons
Monday 12th November 2018 Commons Chamber

[Chris Stephens]

I have just given some examples of how broken the UK social security system is. If the hon. Gentleman seriously believes that any devolved Government could address the mess of the social security system in the UK within weeks, he is kidding himself on.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

The hon. Member for Stirling (Stephen Kerr) is clearly unaware that there are 4,000 people, not 400, chasing rather than helping. I heard Gaelic mentioned today, and he should know that the word “Tory” comes from the Irish Gaelic “Air an Toir”—pursuers. That is what they are doing in the DWP—pursuing people mercilessly, rather than helping them, as my hon. Friend pointed out.

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[Chris Stephens]

Thank you very much, Madam Deputy Speaker. Hon. Members can read Hansard tomorrow and come to their own conclusions.

Scottish Conservatives were complaining earlier about office closures. I find that fascinating from a political party that has put a meat cleaver to the jobcentre network and a meat cleaver to HMRC offices across the UK. You really could not make it up.

[Angus Brendan MacNeil]

My hon. Friend makes an absolutely fascinating point about the Conservatives calling for the richest to relocate to avoid tax. Continuing that logic, they should say that those earning less than £33,000 in England should register in Scotland. We know that the many get the deal in Scotland, but they speak for the few, as ever.

[Chris Stephens]

My hon. Friend makes a fascinating observation, but I think he will be disappointed by the response from the Scottish Conservatives. It will not be on their crib sheet, so I am sure they will not agree.

Commonwealth War Graves Commission: Pension Fund

Debate between Chris Stephens and Angus Brendan MacNeil

Monday 29th February 2016 Commons Chamber

[Chris Stephens]

I thank the hon. Gentleman for his intervention, and I agree with him.

To recognise the special nature of the job, the loyalty of staff and the financial sacrifices staff have made over the years, the commission has held a final salary pension scheme, ensuring financial security for staff who have spent their lives in dedicated service to the commission. The terms of this scheme are good with a low employee contribution, a spouse’s pension, death in service and lump sums based on final salary—40/60ths. That reflects the fact that the pension has traditionally been one of the most important conditions of service, recognising years of dedication and loyalty.

In December 2014, however, the CWGC announced the intention to close the final salary pension scheme in April 2016 and move staff to a far less favourable defined contribution scheme, the Group Pension Plan. The terms of this scheme are much higher employee contribution, lower employer contribution and less of a pension pot at the end. The changes will see a drastic reduction in the pensions of 180 long-serving staff, with some losing more than £6,000 for every year that they draw their pension. The introduction of the new pension will also see a reduction in employer contributions from the current 22.4% of salary to a limit of “up to 15%”. On average, employer contributions will likely be much lower as the 15% rate can be reached only when employees significantly increase their contributions in turn. That came just two years after the Commonwealth War Graves Commission had closed the final salary scheme to new entrants, promising:

“Closure of the scheme to new members does not have a negative impact on the funding of the existing pension scheme…The current pension scheme remains in a relatively strong surplus position when assets and liabilities are calculated on a long term actuarial basis.”

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

My hon. Friend is making a profound speech that chimes with some of the history books that I have read. He is right that the Government will find a lot of money for weapons, but they find less money for the wounded, and it is disappointing and sad that for the dead there is less money still. The facts that my hon. Friend is discussing go contrary to the sweet words that are often said about remembering and honouring the dead in Chambers such as this.

[Chris Stephens]

I thank my hon. Friend for that intervention, and I shall come on to say more about the position of the scheme.

The news of the closure of the final salary scheme has come as a terrible shock to long-serving staff, with more than 50% of those affected within 10 years of normal retirement age, leaving little time to readjust. For some, that has meant completely changing retirement plans as they can no longer afford to retire or as key assumptions such as being able to pay off a mortgage are no longer the case. Staff feel betrayed that what was promised to them for years is suddenly being snatched away.

Let us consider the financial position. In the commission’s statement of accounts of March 2014, the key numbers show a surplus of £1.4 million on income of £67 million, with balance sheet reserves up from £4.3 million to £7.2 million and net current assets up from £1.5 million to £2.2 million. The balance sheet shows an improvement in reserves of £2.9 million, due largely to the improvement of £2.6 million in the pension deficit from £8.3 million to £5.7 million. In its 2015 accounts, the position had changed. The balance sheet showed a deficit of £6.1 million, having been in surplus by £6.7 million in March 2014. The reason was a sharp increase in the deficit shown in the pension scheme, a deterioration of £13 million in the year, taking the deficit to £18.6 million. The background is the effect of the recent three-yearly valuation, which reflected a collapse in the forecast interest rates for the pension fund investments.

My first question to the Minister is: what investments resulted in this change from 2014 to 2015? Despite the commission announcing its intention to close the pension scheme in December 2014, formal consultation with the three trade unions representing staff at the commission—PCS, Prospect and Unite—did not start until June 2015. During the consultation period, the trade unions took a reasoned and helpful approach, proposing numerous alternatives in an attempt to find a solution that both recognised the financial position of the commission and mitigated the most detrimental effects on staff. However, the commission rejected all the proposals, remaining resolute on closing the final salary scheme and moving to a defined contribution scheme.

Proposals were numerous and wide reaching and included increasing member contributions to enable the scheme to stay open. The initial proposal put forward by the trade union side, a proposal that directly addressed the commission’s concerns about the pension scheme deficit and about future risk in the scheme, was as follows. First, it proposed a cap on pensionable earnings for future service with effect from 1 April 2016, which would immediately address the pension scheme deficit by enabling a downward revision of the actuarial costs of the scheme. Secondly, it proposed to increase member contributions from 1.5% to 5%, phased in over the next two years. Thirdly, it suggested that the decision on the closure of the scheme should be postponed for three years, linked to a further valuation of the scheme during 2018. That would enable a considered and measured review of the scheme’s funding, taking account of the previous two proposed measures, both of which would have a positive impact on past service deficit and future service costs. These proposals were rejected almost immediately, with no costing done by the commission, leading the trade unions to believe that the consultation was hollow and the commission was intent on closing the final salary scheme regardless.

The final proposal from the trade unions was the option of CWGC UK-based staff transferring to the civil service Alpha pension scheme, as provided for under the Cabinet Office’s new fair deal. We are aware that many scheduled bodies including English Heritage, the Churches Conservation Trust, the Royal Botanic Gardens, the Imperial War Museum and the British Council have been permitted to join the new civil service pension scheme.

Trade Union Bill

Debate between Chris Stephens and Angus Brendan MacNeil

Tuesday 10th November 2015 Commons Chamber

[Lucy Frazer (South East Cambridgeshire) (Con)]

I would like the answer to a question. If the amendments that would allow the Scottish Government to give their consent were accepted, would you drop your—[Interruption.] Sorry, Madam Deputy Speaker. In those circumstances, would the SNP drop the other amendments as it would have a say in its own Parliament?

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

Collective bargaining!

[Chris Stephens]

Collective bargaining, indeed.

It is important that public bodies across the United Kingdom have a say and give their consent as to whether provisions in the Bill should be passed. I also believe that if a public body gives its consent, it should be possible for that consent to be taken away on a future occasion. The Mayor of London, to use an example that was given earlier, is perhaps the best example of that.

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[Chris Stephens]

The last time I looked in the mirror, yes, I am a real person, like many other trade unionists in this country.

I am pleased that Labour amendments seek to restrict the application of provisions relating to facility time and check-off, and they will get our support. Once again, alongside the principled and substantive arguments that will no doubt be presented, it will come out that there is no mandate across the public sector for the Bill.

[Mr MacNeil]

Is it not strange that a Tory party that always talks to us about regulation and red tape is today introducing more regulation and more red tape, and “choking the arteries of commerce”, as was once said in a famous TV programme in Scotland? We are looking at Tory dinosaur behaviour that goes back to the 1970s.

[Chris Stephens]

I think it is perhaps worse than that because such behaviour comes from a political party which has a laissez-faire attitude to the economy until it comes to the trade union movement. It goes from laissez-faire to Stalinism with no intervening periods whatsoever.

Trade Union Bill

Debate between Chris Stephens and Angus Brendan MacNeil

Monday 14th September 2015 Commons Chamber

[Chris Stephens (Glasgow South West) (SNP)]

I rise in total opposition to this Bill. Let me declare my Unison membership and my 20 years of trade union activity before my election. In my maiden speech in this place, I said:

“The trade union movement gave me a political education and the confidence to stand for election, and I know that this experience is shared with other Members who did not have a privileged start in life.”—[Official Report, 4 June 2015; Vol. 596, c. 832.]

I will never be ashamed of being a trade unionist.

The irony of this Bill is that it comes from a political party that believes the answer in today’s world is to deregulate—except in the case of the trade union movement and trade union law. The unions are subjected to heavy regulation, which the Tories bitterly oppose in other circumstances. This is a timely reminder that this Government fear the trade union movement and that this Government know they can be defeated. That is because the trade union movement is the largest group in civic society that stands up against exploitation. The Bill will lead to a deterioration of good industrial relations and it has no support within public opinion. It is designed to reduce civil liberties and human rights.

The Bill also displays a remarkable ignorance—we have heard about that from several speakers already. The Government attempt to justify this Bill by citing industrial action that actually meets the thresholds. The Bill seeks to introduce the 40% rule, but I think it is dangerous for this Government to introduce that rule because the last time a Government tried to introduce such a rule, which affected Scotland, they had a low majority and they ended up being kicked out in a vote of no confidence. We will have the situation where dead people will be described as “not supporting” industrial action. That is why the thresholds are dangerous.

[Mr MacNeil]

Does my hon. Friend not think it even stranger that the 40% threshold is demanded by a Government who got only 24% of the electorate vote overall and only 10.5% of the electorate vote in Scotland? They were rejected by 90% of the voters of Scotland.

[Chris Stephens]

Yes, I agree. In Scotland, at the last election, the Conservative party received its lowest share of the vote since universal suffrage began. If the Government are going to introduce thresholds, they need to consider securing workplace balloting, which could be easily sorted out by Electoral Reform Services, or online voting. Political parties use online voting when selecting their candidates, so the suggestion that there might be fraud is nonsense.