European Union (Referendum) Bill

Debate between David Rutley and William Cash

Friday 5th July 2013 Commons Chamber

[Mr Cash]

Indeed; I note what my hon. Friend has said. This issue is about political union. If we strip away all the arguments about repatriation and renegotiation, there is no doubt whatsoever for anyone—I go to COSAC, which is the meeting of the chairmen of national scrutiny committees on European affairs throughout Europe; 27, now 28, chairmen joined together—that this is about political union. We should be under no illusion about that. It is not about anything else now. We had Mr Barroso telling us recently in the blueprint paper that the European Parliament is the only Parliament for the European Union. It is categorical, and I will challenge any Member of Parliament to get up and suggest that this is not embedded in the Maastricht treaty. That is what it was all about—creating a new European Government, and it has grown exponentially ever since.

My right hon. Friend the Foreign Secretary is right. We said that we wanted to have a referendum on several of those treaties. Indeed, the Conservative party was united in voting for a referendum on the Lisbon treaty. However, we have now reached a different situation. That is why it is important for the House to bear in mind that it is not a question of what may happen between now and 2017; it is happening already. There is clear evidence of the development, endorsed by the other member states, of a two-tier Europe between the eurozone and the European Union itself. That is the fundamental change that is already taking place, without a treaty.

We know from the discussions that are going on in Europe that there is much talk of moving forward without another treaty. That is why we need to have a referendum. That is why the Government are right to promote the circumstances in which my hon. Friend the Member for Stockton South, who came first in the ballot, has the opportunity to introduce his Bill. That is why the Prime Minister and the Foreign Secretary have taken part in the debate, and that is why it is so essential that we get it right. This is about political and economic freedom.

[David Rutley]

My hon. Friend is making a powerful case. I think he is coming on to the point that there are not just political reasons, but clear-cut economic reasons why we need to have a referendum, not least of which are the fact that 70% of the regulations that are an unacceptable burden on our businesses and their employees emanate from Europe, and the fact that there is 55% youth unemployment in Spain and in Greece, which is blighting a generation. Does my hon. Friend agree that there are economic reasons for a referendum?

Professional Standards in the Banking Industry

Debate between David Rutley and William Cash

Thursday 5th July 2012 Commons Chamber

[David Rutley (Macclesfield) (Con)]

Many years ago, when I was at business school with my hon. Friend the Member for Bedford (Richard Fuller), I took a summer job in Wall street. I shall never forget the occasion on which I was interviewed by a certain individual who sat with his feet up on his desk, wearing big red braces, smoking a huge cigar, and chewing gum. The interview was for a job in leveraged buy-outs. Before even introducing himself, that individual said to me, “David, how greedy are you?” I do not remember what my response was, but in my head it was pretty clear: “Not greedy enough to take this job.”

My interest in investment banking evaporated pretty quickly after that experience of outrageous behaviour and outrageous remarks. Behaviour of that kind on the part of a few bankers has led to investment banking in particular, but banking across the board to some extent, being given a very bad review by many of our constituents, and it has failed to build the trust that is so badly needed.

I went on to spend most of my career in retail, much of it at Asda, building its financial services business. There was a stark difference between supermarkets and banks when it came to levels of trust—and that was back in 2002; I hate to think what the difference is nowadays. Every day the supermarkets had to go out and compete for the right to earn the trust and loyalty of their customers, so that they would shop there every week. The lifetime value of those shopping baskets was vital. The supermarkets knew that if they captured that loyalty, it would lead to profits on the bottom line. In banking, by contrast, the focus is so much on short-term profit that the banks lose sight of the customer side of the equation. That was brought home to me starkly when I spent a couple of years working for Barclays before the election, trying to address some of the effects of the credit crunch on its business.

My work in retail financial services highlighted the need for change, and also how difficult it is to bring it about: to break with accepted norms, and to move on from rules of the game that people have previously regarded as being quite acceptable. The LIBOR-fixing scandal has highlighted the desperate need for root-and-branch change in investment banking. That change is needed, and it is needed sooner rather than later.

It is hard to believe that it is five years since the collapse of Lehman Brothers, and five years since we saw the queues outside Northern Rock. The public expect change, and they expect it quickly. It is for that reason—the need for urgent action—that I support the call for a parliamentary inquiry. We cannot wait until 2015 or 2016 to secure the answers and, more important, the solutions. A properly resourced parliamentary inquiry with full access to papers, officials and Ministers, with evidence given under oath, could make much-needed progress.

[Mr Cash]

Does my hon. Friend agree that we could also adopt the system applied to hybrid and private Bills, with a cross-examination carried out by a fully forensic Queen’s Counsel, so that we could get to the root of what is really going on? Could we not have specialist advisers on the Committee as well?

[David Rutley]

I am not familiar with that approach. As a former member of the Treasury Committee, however, I should like to say that I have worked with my hon. Friend the Member for Chichester (Mr Tyrie), and that I have a huge amount of respect for his knowledge and experience in Treasury-related matters, and also for his independence of mind and personal integrity.