Finance Bill

Debate between Drew Hendry and Patrick Grady

Committee of the whole House
Wednesday 10th January 2024 Commons Chamber

[Patrick Grady (Glasgow North) (SNP)]

Is this not the problem? If we do not invest in people’s health and wellbeing, in the long term it will cost the NHS, social services and the Department for Work and Pensions even more to support people as they continue to spiral down. Does that not contrast with the preventive approach that the Scottish Government take, with such innovations as the baby box and the child payment?

[Drew Hendry]

My hon. Friend is right: the on-costs of not doing so lead to further problems, and to higher costs not only to the public purse but to the mental and physical wellbeing of those who are impacted by the cost of living crisis.

These major fiscal events serve as a tangible example of the total mismatch between the values of the UK Government and the people of Scotland. The things that the UK Government choose to spend money on and the tax measures that they have chosen to leave out of the Bill, such as abolishing non-dom status, are a clear reminder of that. It is abhorrent that at the same time as announcing cruel measures to force ill and disabled people into work, the UK Government did not include any provisions on making the tax system fairer. There are countless examples of the UK Government wasting money and then attempting to claw back the funds by targeting groups who are the least well off. The return to draconian measures forced on ill and disabled people is just the latest example. The stark difference between the Bill and the Scottish Government’s Budget, which prioritises ensuring that everyone in Scotland can have a decent standard of living, is a timely reminder of why we need independence.

The SNP believes that building a strong economy starts with giving people a decent standard of living, and our most recent Budget reflected that, as my hon. Friend the Member for Glasgow North (Patrick Grady) mentioned. The Scottish Government’s Budget reflects the people of Scotland’s shared values and speaks to the kind of Scotland that we want to be. It is important to remember that the Scottish Government have achieved that against the backdrop of their very limited ability to raise additional revenue through taxes, and having to work largely with a fixed budget. Despite those very difficult circumstances, the Scottish Government have once again shown their commitment to protecting the NHS from strikes, as well as investing in it and shielding the most vulnerable people, as far as possible, from the impact of regressive Westminster policies.

While the Tories have just delivered a 3% real-terms cut to England’s NHS in their autumn statement, the Scottish Government announced an increase to the frontline NHS budget in real terms. They also remain committed to helping those most impacted by the cost of living crisis. In their Budget last month, the Scottish Government increased the game-changing Scottish child payment in line with inflation to £26.70 a week, giving more support to the more than 323,000 under-16s who receive it. They maintained their commitment to invest £1 billion over the course of this Parliament to tackle the poverty-related attainment gap, with £200 million to be distributed in 2024-25. They are committed to funding the £12-per-hour real living wage for adult and child social care, and early learning and childcare workers in the private, voluntary and independent sectors that deliver funded provision. They have helped households through the cost of living crisis by making available an additional £144 million of funding to councils that agree to fully fund a council tax freeze in 2024-25—the funding equivalent of supporting a 5% increase. Those are just the latest measures the Scottish Government have taken to promote equality.

The Scottish Government have of course introduced landmark policies to ensure that everyone in Scotland has access to a decent standard of living. If Westminster was in charge, Scotland would lose things like free university tuition, free school meals, free period products, free bus travel for under-22s and free childcare for three and four-year-olds, as well as eligible two-year-olds. All that is possible because the Scottish Government take a different approach to a Budget than this place, and we need to ensure that we can do that in a much more effective way through the powers of independence.

Energy Suppliers: Customer Credit

Debate between Drew Hendry and Patrick Grady

Wednesday 22nd February 2023 Westminster Hall

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I beg to move,

That this House has considered regulation of customer credit retained by energy suppliers.

It is a pleasure to serve under your chairmanship, Mr Betts. In this debate, I am not going to focus on what I have focused on many times in the Chamber, which is the myriad failures of the UK Government in dealing with the energy cost crisis for people in their homes and the cost of living crisis. That is well documented, and it was underlined by a poll yesterday showing that nearly 70% of people across the nations of the UK feel that the Government are failing on this. That is not what this debate is about. The issue that I want to highlight is something that affects many people in their homes and is manifestly unjust.

I want to start by saying that I am grateful to the Minister for graciously taking the time to discuss this with me before the debate; it says a lot that she was willing to be informed about the perspective that I want to bring to this. I am hopeful that she will work with us to try to sort this and that we will be able to work together to aid people.

I have been asked to feel sorry for energy suppliers. I have been asked by energy suppliers to think of them and their financial position, as they are keeping customers’ money in their bank accounts that they are not due through bills because it aids their business. I do not feel sorry for energy companies. I cannot imagine any other industry where companies are allowed to keep customers’ money without any accountability and think that that is okay or, indeed, that we should feel for them. I understand their wish to protect themselves. For example, Octopus told me that it holds £660 million of customers’ money in credit, but because of the outstanding balances, only £150 million of that is a cushion for them. I am sorry, but that does not cut it—it is not the company’s money to do that with.

I am more concerned about people facing the fear of the cost of living crisis. I am more concerned about people’s frustration over their household incomes and the hardship that they are expected to face in these times. People are turning off appliances and heating when it is cold to save money, because that is what they have been told they have to do, when all the time, energy companies are keeping vast amounts of their money in their bank accounts while people struggle.

[Patrick Grady (Glasgow North) (SNP)]

I congratulate my hon. Friend on securing the debate. Does this not speak to a need for wholesale reform of how people are charged for and pay for their electricity? He is right that customers who pay by direct debit build up significant credit balances, and the energy companies can earn interest on that, but customers who pay by prepayment meters are paying up front for energy that they have not used, and they often pay a higher premium and higher standing charges. The people who can least afford it, which is often customers on prepayment meters, are paying the most. This is another injustice that has to be resolved.

[Drew Hendry]

My hon. Friend is exactly right. It speaks to the way the cards are stacked against consumers and users in favour of the energy companies. The position that people find themselves in does not seem to be met with any sympathy across the industry—it is just a fact of life; they are collateral in the game of business. That is not the way we should look at people. As I said, people are turning appliances off even when they are in credit with the energy companies.

[Drew Hendry]

The hon. Lady is absolutely right. I will spend a bit of time later talking about Ofgem and powers that the Government might take forward in relation to working with Ofgem.

As I said, people are turning things off even when they are in credit. I believe every Member of this House should be more concerned that the property of customers of energy companies is being held hostage, without the explicit permission of those customers; the money does not belong to the energy companies. Things should and must change.

I started this campaign in January. By coincidence, Alex Lawson, a Guardian journalist, did some research into the subject and uncovered the fact that

“suppliers had hoarded an estimated £9 billion of customer cash by November last year”.

In his investigation, he pointed out that Centrica had £400 million of customer deposits; Octopus Energy had £660 million; and E.ON, OVO Energy, EDF and ScottishPower refused to say how much money they had from customers whose accounts were in credit. It is not the energy companies’ money.

I contacted the suppliers in preparation for the debate. The response I received from Utilita about high credit balances defended its customer service and the way it looks after its customers, but I was struck by a paragraph in which it said:

“Other companies such as Ovo, Octopus and Bulb have significant customer credit balances in their accounts. Indeed Octopus recently published its accounts for the year ending March 2022 in which it shows £221 million—strange to have such high credit balances at the end of winter! Perhaps their ‘innovative practices’ are not working as intended. The article by George Nixon that appeared in the Times on Saturday 28th January 2023, ‘How to get your money back from your energy supplier’ mentioned virtually all the larger suppliers (all of which had either minor or no weaknesses in their direct debit processes according to Ofgem).”

I am not giving Utilita a free pass, but it is telling that it is willing to make that comment.

In the highlands and islands, a great number of people subscribe to what used to be called the hydro board. When Scottish and Southern Electricity Networks took that over, many accounts simply transferred, and OVO Energy recently took over all those accounts. Because of that, I may receive a particularly high number of complaints about practices at OVO, so I state that at the outset. At the start of the pandemic, OVO received an £8.9 million fine for communication and billing issues. As mentioned, OVO has declined to give an average customer credit balance. Again I state: that is not its money and it is refusing to tell us how much it has.

My inbox shows that constituents’ problems with OVO are manifest regarding billing and metering. I have picked a sample of messages from people who have come to me, one of whom has allowed me to use their name and details, for which I am grateful. To get through to OVO, many of my constituents have had to spend up to

“4.5 hours on hold on the telephone.”

This is a company that says there are simple things people can do to sort their accounts.

OVO will not send some customers monthly bills, insisting that “Total Heating with Total Control” bills are provided quarterly. One constituent received three bills in one month: one showed that they owed £680, which they paid; one showed £300 in credit; and another in the same month said that they owed £1,000. I will return to this issue, because it is an important factor in the way these companies work with people’s money. They have consistently failed to fix faulty meters, with 18 months of changed dates and timeframes in one case.

The constituent I mentioned, to whom I am very grateful, is Mrs Frances Raw, who is a widow on a state pension. The Minister will be aware that the state pension is £611.64 per month. She has been asked to pay more than £236 a month, and the company wants to raise her direct debit. It thinks that she is going to use more energy, which is the justification for putting up her direct debit, but Mrs Raw is sitting on a credit balance of £1,796.36.

By any measure, it is a disgrace to put somebody under that kind of pressure. It is a failure in a duty to care, and a failure to do good business; and it is a failure that it is not being properly regulated, as we need to prevent that happening to people such as Mrs Raw. She has been brave enough to allow me to use her name, and I thank her one more time. I know how difficult it is for constituents to come forward and say they have an issue, and that it is okay to talk about it. It is very rare for people to do that, and I am extremely grateful to her.

Mrs Raw’s problems do not stop there. OVO keeps delaying changing her Total Heating with Total Control meter as well. This is destined to continue. I met Mrs Raw and she asked me if it would be possible to get some of her money back. I said, “No, Mrs Raw, you are entitled to all of your money back.” That is what everybody should get in these circumstances. It should not be a matter of someone begging to get their money back; it should happen automatically.

[Patrick Grady]

I thank my hon. Friend for giving way. The £,1000 or more credit balance on his constituent’s account is not just sitting there doing nothing. It is sitting in a company’s bank account earning interest, and contributing to the profits of that company. I wonder how the companies would feel if they were required to apply interest to customers’ credit accounts. Perhaps they would suddenly be incentivised to support the customers.

[Drew Hendry]

My hon. Friend makes a terrific point, which has been running through my mind. When these companies hold customers’ money, they are using it for whatever purpose they might have, rather than the customers being able to earn interest or pay their bills. These companies may well be using it for gaining their own interest. Some people might consider that theft. Some people might consider that using other people’s money to benefit themselves, without the permission of the people who own the money. That is not good enough. It is not their money; it is the customers’ money and it belongs with them.

Benefit Cap

Debate between Drew Hendry and Patrick Grady

Tuesday 1st March 2022 Commons Chamber

[Patrick Grady (Glasgow North) (SNP)]

Will my hon. Friend give way?

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Will my hon. Friend give way?

United Kingdom Internal Market Bill

Debate between Drew Hendry and Patrick Grady

Tuesday 15th September 2020 Commons Chamber

[Drew Hendry]

Dame Rosie, it is a pleasure to serve under your chairmanship. I rise to talk to amendments 28 to 30 in my name and those of my right hon. and hon. Friends.

When the Institute for Government warned that

“it is not clear how disputes around the functioning of the internal market will be managed”,

it opened up the yawning and damning gap in the plans for the governance of the internal market. As a result of ditching co-operation over common frameworks, this Government propose to fill the gap with an Office for the Internal Market—an unelected quango. I will return to the composition of that body shortly. The Office for the Internal Market will have an effective veto over the Scottish Parliament, and the subsequent result is that devolution will be hamstrung. This is yet another step in introducing a system where standards are set by Westminster and they must be accepted by Scotland in devolved areas.

Analysis by the Scottish Government has revealed that successful Scottish policies such as alcohol minimum unit pricing, our policy on tuition fees and the ban on smoking in public places would be among the Bills referred to the Office for the Internal Market. That has been opposed by many bodies who have shone a light on this. The National Farmers Union Scotland has raised a series of concerns about the function of the Office for the Internal Market’s dispute resolution mechanism in managing policy differences, ensuring that the UK Government do not have the final say on areas of devolved policy, including agriculture, and enabling the devolved Administrations to act where it is considered that a policy aligning in a particular manner is unfavourable to devolved interests such as agriculture.

Of course, it would not have to worry about that if the UK Government had simply continued work on common frameworks. Common frameworks are designed to manage cross-UK divergence where EU law and devolved competencies intersect, including in relation to the functioning of the UK domestic market, together with existing processes for regulatory impact assessment and existing structures for regulatory co-operation and information sharing. Let us be clear: they do not need to be supplemented or undermined by a new, unelected body.

[Patrick Grady (Glasgow North) (SNP)]

Does this not get to the crunch? Government Members keep asking what powers are being taken away from the Scottish Parliament. My hon. Friend is outlining it—the power that is being taken away is the power to make all these decisions. The Scottish Parliament is going to be trumped by an unelected, unrepresentative body, instead of having agreements between the devolved Governments and the UK Government on the framework basis, which should be being implemented.

[Drew Hendry]

I could not agree more. This simply does not have to happen. Scotland does not need it, and Scotland does not want it.

Scottish Affairs Committee

Debate between Drew Hendry and Patrick Grady

Monday 2nd March 2020 Commons Chamber

[Patrick Grady]

What is surprising is that things have not been like that. We have reached arrangements and worked well together. My hon. Friend the Member for Perth and North Perthshire has been the acting Chief Whip on a number of occasions for the Scottish National party since 2015, and we were able to come to these arrangements, so it is disappointing that this has ended up coming to the Floor of the House.

As my hon. Friend the Member for Edinburgh North and Leith (Deidre Brock) says, it has been a very effective Committee—so effective that my hon. Friend the Member for Perth and North Perthshire has already been on the front page of The National about this precise issue. If Government Front Benchers had read that publication at the weekend, they would have seen this coming and could have avoided this debate on the Floor of the House and the issue of whether we will get to the moment of interruption without a Division.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

The SNP won more than 80% of seats in Scotland in the recent general election. The make-up proposed for the Committee does not go even halfway to realising that representation and giving the people of Scotland the voice they should have as a result of that outstanding win.

[Patrick Grady]

My hon. Friend is absolutely right. The Scottish National party increased our number of seats in the House—our representation here—by more than a third, yet our representation on the Committee is going to remain static. Meanwhile, the Conservative party’s number of seats in Scotland has gone down by more than 50% and its representation is going to increase. That simply denies and defies democracy and absolutely gives the lie to the notion that Scotland has a valuable role and that its voice is going to be heard.

NHS Funding Bill

Debate between Drew Hendry and Patrick Grady

Legislative Grand Committee & 3rd reading: House of Commons & Legislative Grand Committee: House of Commons & Programme motion: House of Commons & 3rd reading & Programme motion
Tuesday 4th February 2020 Commons Chamber

[Patrick Grady]

It really does not feel like that at the moment, does it? Hear no EVEL, see no EVEL, speak no EVEL should be the mantra, because my hon. Friend is right; this might not be the last time.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I am grateful to my hon. Friend for allowing me to speak in the English Parliament for the first time. Does he agree that one way to get around this whole EVEL conundrum is simply for the English Parliament to be made officially an English Parliament and then we can all have our own national Parliaments in our own countries?

Oral Answers to Questions

Debate between Drew Hendry and Patrick Grady

Wednesday 27th March 2019 Commons Chamber

[Patrick Grady (Glasgow North) (SNP)]

9. What recent discussions he has had with the Scottish Government on the UK leaving the EU.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

15. What recent discussions he has had with the Scottish Government on the UK leaving the EU.

European Union Citizenship

Debate between Drew Hendry and Patrick Grady

Wednesday 7th March 2018 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

May I, too, warmly thank my hon. Friend the Member for Arfon (Hywel Williams) and Plaid Cymru for bringing forward this timely and important debate?

Before I begin my remarks, I would like to declare a non-financial interest. For many years, I have been an honorary consul to Romania for the highlands and islands. I will come back to that later. It seems to me, as we are discussing the rights of European citizenship, that we should all declare our financial interests, as well as many more interests.

The concept of European citizenship was introduced in the 1992 Maastricht treaty, affording rights, freedoms and legal protections to all citizens, as well as giving a legal basis to European identity. Many of those rights are tied up with the four freedoms of the single market, as we heard earlier. European citizens have the right to live, work and study across the EU and associated countries. European citizens are free to trade and transport goods, services and capital through EU borders as in national markets, with no restrictions on capital movements or duty fees. Citizens have the right to vote and run as a candidate in local elections in the country where they live and in European elections, and to participate in the European citizens’ initiative. Citizenship of the EU confers the right of consular protection by embassies of other EU member states when a person’s country of membership is not represented by an embassy or consulate in the country in which they require protection. EU citizens have the right to vote for and petition the European Parliament, and the right to address themselves to the European ombudsman and EU agencies directly in their own language if the issues raised are within their competence. Finally, EU citizens enjoy legal protections under EU law, specifically through the charter of fundamental rights of the European Union and through Acts and directives regarding the protection of personal data, the rights of victims of crime, the prevention and combating of trafficking in human beings, equal pay and protection from employment discrimination on the grounds of religion or belief, sexual orientation, age and other characteristics. Those are substantial rights for European citizens.

I was privileged to serve as the vice-president of the Conference of Peripheral Maritime Regions, a fantastic organisation that brings together local authority areas from across Europe as far apart as Finland and the Azores. We discussed common issues across the European Union in order to get our points made as citizens of the EU about policy. It was a great privilege to do that. I travelled to that group as a European citizen with the rights I have outlined. I was never treated as an outsider or a foreigner, and none of the people I met during that time were ever foreign to me.

As an honorary consul, I have helped Romanian citizens in the highlands and islands, directing them to the support and services they might need. It has never involved my doing anything other than my job of helping people as an MP. It would be the same, and it is the same, for constituents who are Polish, French or German. I am sure we would all do the same. That point of contact has allowed me to build social and economic ties with our Romanian neighbours.

[Patrick Grady (Glasgow North) (SNP)]

I pay tribute to my hon. Friend’s work to support Romanians and other European citizens in my hometown of Inverness. I welcome the fact that Plaid have brought this debate today, especially as I am a member of Plaid Cymru, as well as a member of the Scottish National party.

[Patrick Grady]

Exactly! In that sense, I am a dual citizen as well. It just shows that we can all get along and perhaps these principles should be extended to everybody.

[Drew Hendry]

Absolutely. On the principle of extending European citizenship, this is deeper than just a set of rights. This is an historic tie, which we should cherish. That identity is very important to Scotland. We have always been a European nation and we continue to be a European nation.

European Union (Notification of Withdrawal) Bill

Debate between Drew Hendry and Patrick Grady

Committee: 2nd sitting: House of Commons
Tuesday 7th February 2017 Commons Chamber

[Patrick Grady]

First, I am not convinced that the words “import” and “export” are the right ones to use when we are talking about human beings—some of the most capable and talented human beings in the world. [Interruption.] Secondly, I hear my hon. Friend the Member for Motherwell and Wishaw (Marion Fellows), who is on the Education Committee, saying, “So is the rest of the United Kingdom.” Finally, we want to welcome people to Scotland. If the Government want to devolve immigration policy to us as part of the Brexit process, they should feel free to. As has been pointed out many times in these debates, the right hon. Gentleman himself has said that immigration policy should come to Scotland so that we can attract the brightest and the best, and we are not afraid to do so.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Having grown up in Inverness, my hon. Friend will remember the Kessock bridge well. When people come over it now, they can see the shining example of the new University of the Highlands and Islands campus there. Thanks to £200 million-worth of EU structural funds over the past 20 years, we have been growing our own scientists and academics in the area. Does he agree that it is absolutely scandalous that up to 2022 an estimated £19 million will be lost, with no impact assessment?

[Patrick Grady]

My hon. Friend is absolutely right. This is exactly what we are trying to achieve.

Paris Agreement on Climate Change

Debate between Drew Hendry and Patrick Grady

Wednesday 7th September 2016 Commons Chamber

[Patrick Grady (Glasgow North) (SNP)]

I am particularly grateful to have caught your eye, Madam Deputy Speaker, having missed the start of the debate. I apologise to the Front-Bench speakers for that, but I was detained in the Procedure Committee, where we were taking evidence on the effectiveness or otherwise of our EVEL—English votes for English laws—procedures. I look forward to that issue returning to the Floor of the House in due course.

I was particularly inspired to try to catch your eye, Madam Deputy Speaker, by the comments of the hon. Member for Wirral West (Margaret Greenwood) about the impact of climate change on people in developing countries. As she said, and as I said in my intervention on her, the poorest and most vulnerable people around the whole world, who are often those whose historical carbon emissions have done the least to cause climate change, are feeling the impact of climate change first and hardest. That is why, in this debate and in the negotiations that took place in Paris, the concept of climate justice is so important. As I said in my intervention, the Scottish Government have really embraced that concept, as can be seen in a range of policy interventions. The former First Minister, my right hon. Friend the Member for Gordon (Alex Salmond), spoke about this concept at the central party school of the Communist party of China in Beijing, no less, which shows the Scottish Government’s ambition in this area.

Along with this Parliament, the Scottish Government have set some of the most ambitious carbon reduction targets anywhere in the world. Earlier this year, we were able to announce that the commitment to reduce carbon emissions by 42% on 1990 levels by 2020 had already been met this year. Of course, 42 is the answer to the ultimate question of life, the universe and everything, according to “The Hitchhiker’s Guide to the Galaxy”, but I am sure that it was just a coincidence that that was the target.

The other innovative approach the Scottish Government have taken is through their climate justice fund. I have had the privilege of seeing that in action at first hand in Malawi, a country with which I have become very familiar over the years. I have seen the impact of climate change in that country, as rain patterns change significantly from what people were used to. Periods of drought are followed by periods of intense rain, which makes the cultivation of crops incredibly difficult. Of course, most people in that part of the world rely on their crops as they are subsistence farmers. The changing weather patterns that result from climate change are having a huge impact on the day-to-day lives of the population of that country and the wider region. The region is, of course, facing a drought at the moment.

The climate justice fund has been able to help people to adapt to the impacts of climate change, often by using innovative methods that are energy-efficient and environmentally-friendly in their own right. For example, I visited a community in Dedza where people were able to irrigate their crops thanks to a reservoir built at the top of a hill. Without the need for any kind of electricity or pumping—just through the force of gravity—that irrigation allows people to grow crops and cultivate their food, whereas previously that would not have been possible because of drought or the erratic rain patterns. Likewise, in Chikwawa, in the south of the country, a solar pump is harnessing the extreme power of the sun that is felt in that area and turning that into green energy which, again, has allowed crops to be irrigated and food to be grown.

[Drew Hendry]

My hon. Friend mentioned innovation, particularly in a country such as Malawi. Does he agree that there is an opportunity for hydrogen technology and storage to be deployed to meet some of these ambitious targets? Many of us here hope to be around in 2050 and the Scottish Government have targets for emissions up to then. We have not heard a lot about hydrogen today, but it could also be used in vehicles, as we are doing in Aberdeen, where hydrogen buses and council vehicles are running now.

[Patrick Grady]

I wholeheartedly agree with my hon. Friend. That is an example of the kind of innovation we see in small countries such as Norway, which was mentioned earlier, Malawi and Scotland. What is particularly important about the Scottish Government’s climate justice fund is that it is additional to the international development fund that they make available for mainstream international development programmes. It is encouraging that the Minister for Climate Change and Industry was formerly a Minister in the Department for International Development. I hope that will mean that there will be joined-up conversations across the Government as we take forward these important concepts.

The other matter on which I wish to reflect briefly, which I mentioned in an intervention, is the message from Pope Francis about climate justice and tackling climate change, and our own personal responsibilities to take action in our daily lives to reduce our footprint on the planet. Much of this has already been discussed in terms of where our energy comes from in the first place and clean electricity generation, but we have a responsibility to drive demand reduction through the more efficient use of electricity and by purchasing more efficient electrical appliances. We do not need to live in the stone age, but we should make much more efficient use of the energy that is generated, hopefully in a clean manner. The idea of climate justice is due to the fact that people who have contributed the least to climate change and can least afford to deal with it are experiencing the greatest impact.

UK's Nuclear Deterrent

Debate between Drew Hendry and Patrick Grady

Monday 18th July 2016 Commons Chamber

[Drew Hendry]

Thank you, Mr Deputy Speaker. I have lost a wee bit of time, but I will be as quick as I can.

[Patrick Grady (Glasgow North) (SNP)]

Does my hon. Friend share my concern about the spiralling cost, which is even more difficult to calculate because of the massive fluctuations in the currency market as a result of the Brexit vote?

[Drew Hendry]

I can only agree with my colleague. I was about to make a point about the vulnerability of the military systems. The Defense Science Board report states:

“The United States cannot be confident that our critical Information Technology (IT) systems will work under attack from a sophisticated and well-resourced opponent utilizing cyber capabilities in combination with all of their military and intelligence capabilities.”

We face the prospect of investing in a military dodo, but the situation is even worse because it can be hacked and used against us, and the Government plan to spend up to £205 billion on it.

I will not vote for Trident renewal tonight, for all of the good reasons that have been laid out, one after another, by my colleagues, but the main reason is that it is an obscenity.

Cost of Public Transport

Debate between Drew Hendry and Patrick Grady

Tuesday 19th January 2016 Commons Chamber

[Drew Hendry]

The Labour party has put me in the position of having to agree with a member of the Cabinet. Imagine that—what an absolute shambles!

The Labour party spent 13 years in government without ever changing the situation, even though it heavily amended the 1993 Act with the Transport Act 2000 and the Railways Act 2005. Even though it had the power, it did absolutely nothing to repeal the 1993 Act.

This is not the first time we have heard such nonsense from the Labour party. Its leader is not so new to his position now, but not long after taking the leadership he told Marr:

“Listen I’ve been in Scotland a lot of times during the leadership campaign…I’m going to be in Scotland a great deal as leader of the party.”

We shall see whether that happens. He went on to say:

“Yes the SNP have a headline of being opposed to austerity—fine. The SNP are also privatising CalMac, also were behind the privatisation of ScotRail”.

What a pile of nonsense! Like successive Scottish Executives before them, the Scottish Government were simply following the tendering process that they are required to follow in EU law.

[Patrick Grady (Glasgow North) (SNP)]

Does my hon. Friend recall that, once upon a time, the Labour party was in power in Scotland as well as down here? At no point did it make any effort to allow the Scottish Parliament to take the railways into some kind of public ownership.

[Drew Hendry]

My hon. Friend is exactly right. Labour made no effort in government either here or in Scotland to do anything about that and, as I have said, it knows very well that the 1993 Act forbids the Scottish Government to do it.

As I have said, there was a fabrication by the Labour leader. He said that the SNP was behind the privatisation of ScotRail. Did he mean the 1993 Act introduced by John Major? There was not even a Scottish Parliament at that time, but let us not let the truth or the law get in the way of anything.

The Labour leader says that his party supports rail renationalisation, but where was that support when every single amendment that the SNP tabled to the Scotland Bill was voted down in this House? Clause 54 of the Bill will allow for the Scottish Government to consider bids from public operators. That was included in the SNP-Scottish Government submission to the Smith commission, but we tried to go further. We tabled a new clause to devolve rail services in Scotland, giving Scottish Ministers full powers and the flexibility to decide who would run such services. Like every other SNP amendment to the Scotland Bill, it was voted down by English MPs.

That new clause would also have disapplied the provisions of the 1993 Act and allowed for direct awards to be made for the operation of rail passenger services to the fullest extent permissible under the law. It would have allowed us to adjust the current ticketing system, which over-subsidises profits while having—to put it mildly—an arcane and unintuitive fare system.

An anytime single ticket from London to Edinburgh costs £140.50, while one from London to Newcastle— 100 miles south of Edinburgh—costs £138, £2.50 less. A similar ticket from London to Aberdeen, which is 100 miles north of Edinburgh, costs £157.50. That means that one journey of 100 miles costs £2.50, while another costs £9. It just does not make sense. Frequently, it is cheaper to split a ticket than to buy a direct one. A single from King’s Cross to Edinburgh costs £95, while often, but not always, a King’s Cross to York ticket and a York to Edinburgh ticket cost £66 in total. We could have done something to sort that out.

Let me just say that the Scottish Government and the SNP will take no lessons from the Labour leader when it comes to investing in Scotland. With such a lack of understanding, even of the basics, it is no wonder that, according to a recent Survation poll, his approval rating in Scotland is minus 17%, while that of the First Minister, Nicola Sturgeon, is plus 27%.

As we have already established, the issue of public ownership is out of the hands of the Scottish Government, so I want to finish by talking for a moment about the rail franchise in Scotland. The Scottish Government welcomed Abellio to the ScotRail franchise because it has moved its UK headquarters to Glasgow—creating 50 new jobs, in addition to securing another 150 jobs from First. As a result of the new deal, passengers and staff will enjoy a range of benefits: advance fares from £5 for journeys between Scottish cities; a commitment to earnings of at least the living wage—the living wage in Scotland, by the way—for all staff and contractors; at least 100 apprenticeships; a guarantee of no compulsory redundancies; protection for rail staff pensions and travel rights; free wi-fi on trains; a new approach to cycling, with more than 3,500 parking spaces, and bike hire at a number of stations, which should be compared with Southern; 80 new trains due to arrive at start of December 2017; and 23% more carriages across the network.

The Scottish Government’s record on rail consists of a commitment to a £5 billion programme of investing in Scotland’s railways over the five years to 2019, including £170 million on the Aberdeen to Inverness rail upgrade and £300 million to open the Airdrie-Bathgate rail link in 2010, which will provide a passenger service between north Lanarkshire and west Lothian for the first time in 54 years. Since privatisation, rail fares have been regulated by the Government to limit the size of increases on key tickets, but they have increased in real terms since the early years of this century. In January 2013, fares across all operators were 23% higher than they were in January 1995, with an average annual increase of 1.2%.

I will finish on this point. [Hon. Members: “Hooray!”] It is nice to be appreciated. This is the story of a Government who invest in public transport for their people. The Scottish Government’s budget has been cut by £12.5% since 2010—£1 in every £8 has gone—for unnecessary ideological austerity. Despite that, the SNP Scottish Government are still investing in infrastructure. Having already invested £15 billion in transport since 2007, they are committed to the largest transport investment programme that Scotland has ever seen, despite these relentless Westminster budget cuts.