David Nuttall
Main Page: David Nuttall (Conservative - Bury North)London Local Authorities Bill [Lords]
David Nuttall Excerpts(12 years, 10 months ago)
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Jacob Rees-Mogg
I am grateful for that intervention. I would be happy to be a car salesman, because that is an honourable and worthy profession. My reason for saying that is because trading cars is the way to starting in business. People can start off in a small way by putting the little Morris Minor that they bought 20 years ago outside their front door with a sticker on it saying, “This car is for sale for £500, with MOT. It has not been clocked or had done to it any of those terrible things that rogues do.” Somebody might then come along and give them £500, so they go out to buy a second-hand Mini Cooper, which they sell for £800. They then buy a second-hand Ford Cortina and sell it for £2,000. Eventually, they are buying Aston Martin DB5s and putting them outside their front door with a price of £150,000—cheap at twice the price, some might say. That is before they have even got on to thinking about Bentleys, great cars that they are, too—although some might say that they are not quite as good as Aston Martins in their style and sleek lines.
We need to get an entrepreneurial spirit and get people starting in business. How are we going to revive this economy if we do not encourage the small business man, and the tall business man, too? I always feel that this “heightism” on business men and business ladies, who should not be excluded, is a bit unfair. We want to help enterprise. We know that job creation comes from small enterprises, not from big business. Historically—very good figures from the United States are available on this—big business has reduced its labour force, year in, year out, and companies that are starting up develop into bigger businesses employing more and more people. A fascinating statistic in this week’s edition of The Sunday Times suggested that an American business, in its first two years of operation, increases the number of its employees by 160%, whereas an Italian company does so by 20%. That is because America, the land of free enterprise, encourages people to set up their own businesses and to do things in a little way without this overburdening, this overwhelming and this overweening regulation that makes it so difficult for them to earn an honest crust.
Clause 9 is where my objections are centred at the moment, but I can assure you, Mr Deputy Speaker, that I have many more objections to certain aspects of this Bill to come. The clause states that “fees and charges” can be levied on people selling their car, but offering it on the internet is illegal and keeping it on the street for the period that it is on the internet is illegal. That is very unfair, because someone can put something up on the internet one week and it can then be cached—it can be caught—and it remains there ad infinitum. Someone could have traded their car and completed the transaction—they could be the new buyer—but the car could still appear on the internet under an historical cache. They may then find that a council busybody—not one wearing a bowler hat, because the councils did not seem enthused by that idea when I gave them it at an earlier stage in the debate—or some odd-bod could come along and say, “This car is now getting you a fine.” That is why I object—
Mr Nuttall
My hon. Friend refers to council officials today as “odd-bods”. When we considered the first group of amendments on 7 December 2011, he referred to parking attendants and council officials as “desperately scruffy tatterdemalions”. Has he subsequently received any adverse representations from any local authority officials?
Jacob Rees-Mogg
I am grateful to my hon. Friend for that intervention. I ought to clarify things. A lot of council officials are splendid fellows. They are good, honest, hard-working people who do a difficult job that I would not particularly like to do myself. I am very grateful that I can find a parking space when I want one, as a resident. Some traffic wardens really are noble fellows. However, notwithstanding that, there are some carrying out these particularly pernicious activities whom I think we should discourage. We should try to persuade them that their career opportunities lie elsewhere. To answer my hon. Friend’s specific questions about tatterdemalions, I have had very little response from councils. I thought that I might be bombarded with letters from councils. Perhaps these might have come from people from the City of London saying, “This is not how we dress in our borough.” Such letters might have come from that other great city of London, Westminster, but no—there was no correspondence from them. None came from Barking and Dagenham; there was not a jot from Barnet; nor from Bexley, Brent or Bromley.
Camden was silent and Croydon had nothing to say on the issue of whether council officers should be smart and tidy. Ealing, Enfield, Greenwich—they were all lie-abeds, not a word, not a peep, not an utterance came from them. Hackney, Hammersmith—and Fulham, we must not forget poor old Fulham—Haringey, Harrow, Havering, Hillingdon and Hounslow; all of them were horribly quiet on this important issue. Islington—one would have thought that somebody from Islington might have a word or two—
Mr Nuttall
My hon. Friend will have seen amendment 67, which was tabled by our hon. Friend the Member for Shipley (Philip Davies), proposing that the power be given to the Mayor of London. Would my hon. Friend like to give the House the benefit of his views about the merits of that proposal?
Jacob Rees-Mogg
I am very interested to think about that proposal. The current Mayor of London is one of the greatest men who has ever lived. That is without question. He is a genius par excellence. He is an exciting, charismatic figure who bestrides the nation as a colossus of political affairs. There is a “but” coming, as my hon. Friends probably realised, though it does not relate to the former hon. Member for Henley, Mr Boris Johnson. It relates to who may come after him.
I go back to what I was saying about Lady Thatcher. If it were possible to deify people, Mr Boris Johnson would be next on the list, after the great lady, but he will not live for ever. He will not be Mayor for ever. Indeed, some people think—some people are heard to gossip and to speculate—that the Mayor of London has higher ambitions and is looking to come back into alternative places to carry out his duties. Therefore “the Mayor of London” refers, sadly, not to the individual who currently holds the office, but to the office itself, so I am not entirely supportive of amendment 67 tabled by my hon. Friend the Member for Shipley (Philip Davies). I feel that we would be taking a risk, a gamble.
We would, to use that term that is rarely heard, be playing with fire. We would be risking the happiness of our prospective fellow countrymen, or of our constituents if we represent London constituencies, by putting in somebody who might be a left-wing firebrand—some dangerous socialist figure who wanted only to penalise motor car owners—as the Mayor of London. We might—heaven help us—end up with a Green Mayor of London. The mind boggles at the thought of what a Green Mayor might do—a red one would be bad enough. Therefore, I think that it is safer to leave the power with the Secretary of State, as my amendment proposes.
Mr Deputy Speaker, you might expect me to prefer my own amendment to another Member’s, however wise and good they are, but I fear that we might not always have the Mayor of London that we would want, particularly through a long parliamentary Session. Sometimes the electors become bored with the party in power, and they might elect someone else to the mayoralty midway through the Session just to show the governing party that they can do so. Of course, we are not worried about that happening this time. The great Boris Johnson is so far ahead, by every measure that humanity can discover, that it is extremely unlikely that we will find some red, green or—I will whisper this very quietly—yellow candidate getting close to the mayoralty. If they did, however, we might find that the protection that I am trying to put in the Bill was not there.
Some very fine people have been, and are, Secretaries of State. I am thinking in particular of the Department that is relevant to this debate, which has one of the finest Secretaries of State in Her Majesty’s Government, a man who is hugely respected by everyone, and not only in the Conservative party, but in all parties up and down the country, and probably further afield, but as they do not have votes in British general elections we are not too worried about them for the purposes of this debate.
Amendment 45, which stands in my name and those of my hon. Friends, seeks to ameliorate the pains and penalties of the Bill by giving people a chance to get things right and not to be penalised too quickly. It proposes that they should have 28 days, rather than 14, to abide by the notice that has been issued under the order of the Secretary of State, rather than the council, if my amendment 44 is accepted, or under the order of the Mayor of London if the amendment tabled by my hon. Friend the Member for Shipley is accepted.
It looks as though the cost of a Royal Mail second-class stamp is about to go up to 55p. Councils are rather mean when sending such notices out and are unlikely to use the recorded delivery service. E-mail is no good if the council does not have the individual’s e-mail address, and the Driver and Vehicle Licensing Agency asks only for a postal address, not an e-mail address, when people register with it, so these things have to go through the post. It seems to me that, considering the standard of the postal service sometimes, particularly around Christmas, 14 days is far too short. People might find that they have been penalised extremely unfairly.
I reiterate that everything I am trying to do with this batch of amendments, as with others, is alleviate the penalties, pains, powers and restrictions of freedom set out in the Bill. It might not be the will of the House that I get rid of the entire clause, but at least the House will understand why it is important to ensure that people have justice. The great call of this House over many centuries has been to provide people with the justice they need to protect them from an over-mighty state that wishes to interfere in their liberties.
The next set of amendments relate to clause 14. I do not wish to sound like a broken record or for people to say, “Turn to the flip-side”, or whatever it is they say when they want the tone to change, but I believe that clause 14 ought to go in its entirety, and that is what amendment 46, which I and a number of hon. Friends have tabled, would do. Once again, we are dealing with the power to take people’s goods without the judgment of a court, and that cannot conceivably be right, just or in line with our understanding of the historic liberties of the individual, which should be protected.
Clause 14 applies to the city of Westminster; it is not a general clause. It states:
“An authorised officer of the Council or a constable may in the Borough seize any receptacle or equipment (other than a motor vehicle) which… is in a street”.
We could have someone wandering along the street who can seize a receptacle without so much as a “by your leave”, an order of a court or, at this stage, any proof that something is going on. The clause continues that the authorised officer may do this if he has “reasonable cause to suspect” that the receptacle is intended to be used in connection with unlicensed street trading. Who knows what could happen? Someone could be pushing a pram along the street and taking goods home in it while their baby was at nursery school, and the pram and goods could be seized because it might look as though they could be used for trading. Indeed, people might start trading their goods in prams because that might be a way of getting around the rules. The provision is so broad that all that it requires is for the officer to have “reasonable cause to suspect” that the receptacle is intended to be used in connection with unlicensed street trading. What if someone had been shopping and perhaps bought a few saucepans and a barbecue set and was wheeling it home? Would a council officer suddenly pounce on them and say, “I’d rather like that for my own home. I think I’ll take it, thank you so much, because you look like you’re about to do a little unlicensed street trading.”
It comes back to this desperate opposition to free trade, free markets and enterprise and a belief that regulating everything will create a perfect world. I am sorry to disappoint you, Mr Deputy Speaker, but however much we regulate, we will not create a perfect world. It simply will not happen, even in the great, noble and wondrous city of Westminster.
What are my various proposals? My first proposal is to get rid of the whole beastly clause. I understand that people do not like the smell of onions outside their front door when people are trading, and I know that one of the front doors in question is that of Buckingham palace, a front door that I think should be particularly protected from the smell of onions when people are doing a bit of street trading. Perhaps even this place should be protected in that way, although I do not think that it would do MPs any harm to walk past the smell of onions on their way to work in the mornings. I appreciate that that is unpleasant. I also understand that criminal gangs might be involved but, if they are, they should be got for serious criminal crime—that is a bit of a tautology, even when speaking so briefly—rather than for an invented crime of just looking as though one might want to sell something in the street.
What about Big Issue sellers? Will their copies of the Big Issue be confiscated because they might be doing a bit of unlicensed street trading? Some of them of course have licences. I hope that all the people who give out the Evening Standard have licences—they can hardly sell it, now that they give it out for free. This is just another attack on trade, and we need trade. We need people to be in employment and to work and we need the economy to boom. We will never get the boom back into Britain without some street trading or if we have some terrible and draconian regulations. I do not think that Draco would ever have thought up such regulations—I am not sure that there was a lot of street trading in Athens when he was around, but there might have been for all I know. They are draconian regulations that seek to discourage trade and penalise the entrepreneur and those who are trying to do their bit for society, rather than those who want something for nothing.
As with clause 10, I have looked at clause 14 in detail and thought that, although it is a nasty and pernicious clause—one might say that it is so nasty that it smells of rancid onions—if we are not to get rid of it in its entirely, let us at least try to ameliorate some of its faults and see what we can do to make it more reasonable and in line with our great traditions. Therefore, I have made certain suggestions. Amendment 47 would leave out “an authorised officer” and replace it with “a magistrate”. The magistracy really is the foundation of our courts system. It has a wonderful history and tradition. The lay magistracy has been particularly important in protecting our freedoms and bringing people from the community with a degree of wisdom and understanding of their local area to enforce the law there. The stipendiary magistracy, now called district judges, has formalised that, and in an urban setting it would more usually be a stipendiary magistrate who would have that responsibility, but Magna Carta still ought to count.
In these few words that is the third time I have mentioned Magna Carta—that was the fourth—but it is very important, because that document is what set us on the path to freedom, rights of property and the rule of law, which has led to the prosperity not just of this nation but of the United States and of Commonwealth nations that have had the benefit of that great history and tradition.
For some reason, and I think it is to do with the European Communities Act and the administrative approach taken across the Channel, in recent years we have removed the protection of the court from our subjects, and that is wrong. If we can put it back, we ought to put it back.
Mr Nuttall
On residents’ parking, is it not the case that, whether or not a car is being offered for sale, it will still be taking up space on a road? Whether or not it has a little sign in the back window, all that would happen is that it would be displaced somewhere else; therefore, the problem that our hon. Friends are describing is really one of lack of space in total.
Mr Chope
Either that or there are too many cars—that might be another interpretation. Or, there are too many people—I should perhaps plead guilty to this myself—who aspire to sort out the car that is firing on only two cylinders, but in the meantime they get another car and keep the car that is not working very well, thinking that at some stage it will be useful to them, so they end up with more cars than they really need. The Government are dealing with that problem by increasing car tax well beyond the rate of inflation.
However, I return to the point that if there is a scarcity of on-road parking space, that is for the local authority to deal with. If somebody has a lot of cars on a space, they can remain there provided they are licensed. However, if the local authority introduces a rule saying that a resident can have only one parking permit, for example—I am sure that is the situation in quite a lot of London boroughs, and certainly Lambeth, which I know for these purposes—that means that each resident in a household can have only one car with a residents’ parking permit. Therefore, introducing a residential control zone will sort out the problem of vehicles being sold on the internet for street trading purposes.
Mike Freer
I have no doubt that the police commissioner is trying to deal with the gangs behind this activity. Members will know that in organised crime as soon as one captain is removed another steps forward. It is an ongoing battle. The battle takes many forms, not least through the police dealing with the crimes, but also through dealing with the symptoms on the streets of London. That is why I do not seek to trivialise the issue and make it just about the aroma of onions, although I am sure that that may weigh heavily for some of the good residents of Westminster. This is about public health and public safety, about the cost to the taxpayer and about dealing with a criminal activity that needs to be dealt with at all ends. I therefore hope that the House will support my amendments.
Mr Nuttall
I start by thanking my hon. Friend the Member for Finchley and Golders Green (Mike Freer) for his great patience and unfailing courtesy in facilitating the progress of this Bill, albeit progress at a speed that must appear to many people to be that of a particularly sluggish glacier.
Mr Peter Bone (Wellingborough) (Con)
Is this not what Parliament should be doing, including with Government business, too? Should we not be properly scrutinising things?
Mr Nuttall
I entirely agree. The quality of the legislation that passes through this House would be enormously improved if it was subjected to the sort of Report stage that this Bill is enjoying, when we have the time to examine each clause and, to be fair, the promoters listen to the argument and, where necessary, make amendments, accepting amendments that they find agreeable in this place rather than in the other place. Such amendments improve the quality of the legislation, so I am grateful to my hon. Friend the Member for Finchley and Golders Green for his patience in this matter.
I congratulate my hon. Friend the Member for Christchurch (Mr Chope) on his comprehensive and detailed analysis of the merits of the various amendments in this third debate. He built on and developed the excellent critique offered by my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg), who continued where he left off on 25 January, with his customary erudite evaluation and critical assessment of street trading. It is a matter of regret that on this occasion we are not able to hear from my hon. Friend the Member for Shipley (Philip Davies), who always speaks with such common sense on these matters. We hope that even in his absence our deliberations will not leave any stone unturned.
I agreed with all the points made by my hon. Friends the Members for Christchurch and for North East Somerset, but one or two further areas of concern and perhaps unease need additional examination this evening. As you will have seen, Madam Deputy Speaker, this group is very large, comprising no fewer than 53 amendments, and my hon. Friend the Member for North East Somerset managed to deal with each one in slightly more than a minute, and my hon. Friend the Member for Christchurch dealt with each of them in less than one minute. I shall try to be as quick.
The lead amendment relates to clause 9. My concern is not primarily on my own account. My principal concern is that the provisions may have an effect on my constituents living in Bury, Ramsbottom and Tottington. When many people hear the word “London”, particularly those living outside the capital, they concentrate their minds on the centre of London, where the principal tourist attractions are located. Of course it is much more than that; it is home to millions of people.
Jacob Rees-Mogg
I am extraordinarily grateful to my hon. Friend for giving way; he is most generous. I am concerned about who would decide whether it was a trade. Would it simply be a council flunkey or would there be any form of appeal to protect an individual who was not really trading but might be accused of trading?
Mr Nuttall
My hon. Friend makes a very interesting point. As we shall see in some of the later provisions—if time permits—the Bill seems to be trying to establish local authorities as judge and jury in their own case.
Mr Bone
I am grateful to my hon. Friend for giving way. I realise that he is going through his speech rapidly so that we have a chance to get to Third Reading this evening, but I wish he would slow down a little and think about the point in a bit more detail. Surely, there is only one institution that decides whether a person is trading—Her Majesty’s Revenue and Customs.
Mr Nuttall
Her Majesty’s Revenue and Customs may well have reached a conclusion about the activities of an individual who is engaged in what might in another sphere be called hobby trading, in the way that many people engage in what is known as hobby farming by keeping a few hens, a couple of sheep or some cattle. But someone who sells two or three vehicles a year, having repaired them as a hobby, would probably not be regarded and ought not to be regarded as being engaged in a business.
Jacob Rees-Mogg
The position from HMRC’s point of view is interesting and important. Motor cars are exempt from capital gains tax. Therefore, if somebody was selling just one, it would not be subject to a profits tax and would be exempt from capital gains tax, so it is quite a good thing to do from a tax point of view.
Mr Nuttall
My hon. Friend makes a good point. If the Revenue decided to investigate such matters and concluded that the profits were taxable, there would be the difficulty of ascertaining what was taxable profit, because much of the cost would be for materials expended on the vehicle. In any event, unless it was the type of vehicle that my hon. Friend mentioned in his speech—an Aston Martin or a Ferrari—I suspect that the “profit” would be less than the annual personal allowance for capital gains tax purposes, which would probably mean that although it ought to be properly disclosed to the Revenue, no tax was payable.
Mr Bone
My hon. Friend is talking about a new subject which has not been discussed tonight. I am glad we are exploring something new, but is it not the case that whether or not the person in the example pays tax, he will be regarded as trading? It is the Revenue that will make that decision.
Mr Nuttall
Even if that were the case and Her Majesty’s Revenue and Customs decided that trading had taken place, it might well be too late. HMRC may not consider the matter until some time after the event. It could be as much as 10 months after the end of the tax year before that taxpayer was required to file an income tax return. The local authority official would be trying to make up their own mind on a fairly random basis, which might differ from borough to borough, whether trading had taken place.
I shall touch briefly on another way in which the Bill would impinge on traders at the other end of the scale who take the plunge and open their own large or medium-sized lot, selling cars as a genuine business. They are quite open about it and have established their business with a trade name, they advertise in the newspaper and they have all their cars together on a car lot. It is often the case with such businesses that from time to time their stock overflows the land that they have, and they must temporarily resort to placing vehicles outside their premises—on the street, perhaps. They would be caught by the provision, even though for the rest of the time they were good, law-abiding citizens. It is very much a case of the law of unintended consequences when we pass such legislation, because the regulations might catch people who were perhaps not at the forefront of our minds when we considered these clauses.
Mr Chope
My hon. Friend makes a good point. Clause 9 states that the provisions should include any vehicle that is
“kept on a street during the period when it is so exposed or offered for sale”.
He is basically saying that that should be changed to being throughout the period when it is so exposed or offered to sale, because a short period could still make the owner vulnerable to being charged with an offence.
Mr Nuttall
My hon. Friend makes a good point. It again comes down to the precise wording of clause 9, and I think that that change would be beneficial and would clarify the danger I have identified. Amendment 24, which I will move on to later, might well deal with the matter.
Jacob Rees-Mogg
It occurs to me that a trader could be caught out by accident simply if someone took a car for a test drive and stopped by the side of the road. Suddenly, hey presto, the car would appear to be on the side of the road at the same time as being offered for sale on the internet and so could then be confiscated. That would be absolutely terrible.
Mr Nuttall
I am grateful to my hon. Friend for that intervention. There is a risk that an over-zealous tatterdemalion—I have finally used the word—who was keen to impress his local authority superiors might be driving down that road and could photograph the vehicle and take action under this provision, should it pass into law.
The other, more fundamental, point about the clause is that it might prevent young entrepreneurs from setting out to make a living. I see car salesmen not as street traders but as entrepreneurs. One of the reasons I came into politics was that I wanted to encourage people to become entrepreneurs, to believe in the free market and to sell their goods and be buyers and sellers. We do not want a situation in which local government sticks its nose into every aspect of people’s lives.
Mr Bone
We now get to the nub of the matter. What we are seeing tonight is regulation being brought in for apparently good reasons, but that is what happens all the time. Parliament continually brings in regulation, but then we say that there is too much of it. We should be looking at entrepreneurs and saying that what they are doing is right, not adding regulation. That is what is wrong.
Mr Nuttall
My hon. Friend is absolutely right. One of the dangers of these provisions, and one of the ills that the amendments seek to address, is that they send out a very negative message about entrepreneurship. It sends out the message that if someone tries to use their initiative and start off in the motor trade we will jump on them, try to put an end to it and stop them starting out in life.
Sir Peter Bottomley
Regrettably, I suspect that our hon. Friend the Member for Wellingborough (Mr Bone) has misled our hon. Friend the Member for Bury North (Mr Nuttall).
Sir Peter Bottomley
Unintentionally. If the entrepreneur were selling soap from a stall with four wheels on the public highway, with or without the use of the internet, that would normally be caught by local government regulations. The fact is that selling a car with four wheels on the highway, using the internet, is not the same as selling soap. One can either ignore the fact that the internet has been developed since previous local authority powers over selling cars on the highway were introduced, or say that the internet needs to be taken into account. If a local authority is saying, “We would like to have the same power to deal with trading on the public highway using the internet for advertising as we have for trading using the local newspaper,” I am not absolutely certain that a single sentence of the speech of my hon. Friend the Member for Bury North is directed at what the power in clause 9, or clause 10, are aiming to do.
Mr Nuttall
I see where my hon. Friend is coming from, but clause 9 does send out a message, because I do not see such people as street traders. They may well have just one vehicle to sell, and they have to put it somewhere, but, as we have seen from the case to which I referred earlier, there is a danger that it would be caught by the clause.
I also draw the attention of the House to another problem that I have identified with the clause. The clause is headed, “Street trading: vehicles and the internet” and deals specifically and only with
“exposed or offered for sale on the internet”,
in subsection (2). It does not deal with the many other ways in which a vehicle might be offered for sale in the modern world without actually being said to be “on the internet”. Perhaps the biggest example is when a company has an intranet. An intranet is by all definitions, as far I have been able to check in my research, not regarded—
Mike Freer
claimed to move the closure (Standing Order No. 36).
Question put forthwith, That the Question be now put.