Amendment of the Law
Baroness Laing of Elderslie Excerpts(10 years, 6 months ago)
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Chris Kelly (Dudley South) (Con)
The Secretary of State is talking about energy-intensive industry and there is still a great deal of that in my constituency. Does he agree we do not want these industries going offshore where environmental legislation may not be as stringently enforced as it is in the UK? We need to keep those industries here in the UK, and yesterday’s Budget helps us to achieve that. [Interruption.]
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Before the Secretary of State answers the intervention, I should say that there are far too many conversations on the Back Benches. The House is getting restless. If the House does not calm down and let the Secretary of State get on with it, he will never come to the end of his speech.
Vince Cable
I am trying very hard, Madam Deputy Speaker, to take as many interventions as Members wish to throw at me.
In relation to Dudley and manufacturing, my hon. Friend is right that it is not sensible to lose manufacturing overseas as we will get carbon leakage and lose the production and the jobs. It is very much in our interests to stop that happening and we are doing so. There is a lot of evidence of the reshoring of production, including to the industries in the west midlands to which my hon. Friend refers.
The priority the Chancellor has given to manufacturing, to investment and the savings that lie behind investment, and to exports through the expansion of export credit are absolutely appropriate to getting long-term growth and the productivity that that entails. There is a lot more to be done. We still have serious constraints in terms of skilled labour. There are still problems in opening up business finance. We have to invest much more in science and innovation, although we are doing that. However, the themes that run through yesterday’s Budget of support for investment, for savings and for exports are absolutely right and they will take this country to the right place.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. It will be obvious to the House that a great many Members wish to speak and there is very limited time available. I must therefore impose a formal time-limit of five minutes per speech. I appreciate that if Members take interventions—which of course is necessary in a lively debate—that five minutes is likely to grow to seven minutes, but if Members wish to be courteous to fellow Members, as I hope they will, they will remain within the five minute limit.
Budget Resolutions and Economic Situation
Baroness Laing of Elderslie Excerpts(10 years, 6 months ago)
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Madam Deputy Speaker (Mrs Eleanor Laing)
Order. The enthusiasm for interventions has meant that most Members have spoken for considerably in excess of the eight minutes allotted. Therefore, I have to reduce the time limit to seven minutes.
Fairness and Inequality
Baroness Laing of Elderslie Excerpts(10 years, 7 months ago)
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Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Before I call the next speaker, it may help the House to know that we have plenty of time left for this debate. I consider it important, however, that the parties that tabled the motion should have adequate time to complete a proper winding-up speech. I therefore propose that Back-Bench speeches should finish at about 6.30 pm. If every hon. Member who is still to speak speaks for approximately 10 minutes, that will give all their colleagues and fellow Members an equal opportunity to make their points.
Jim Shannon
I know that, of course, but it would not have been a team without the Ulstermen, and that—
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. It may help the hon. Gentleman to know that if he mentions the Calcutta cup on Saturday, he will be in big trouble.
Jim Shannon
Who am I to get on the wrong side of you, Madam Deputy Speaker? Of course I will not mention it.
We are coming out of a recession, and times are tough for many people throughout the whole of the United Kingdom, but may I point to the fact that there have certainly been some successes? I am thinking of the recent contracts and job creation secured in Northern Ireland, thanks in no small part to the tremendous work done by the Minister of Enterprise, Trade and Investment. Yesterday, for example, she secured a contract in Singapore to supply defibrillators to the Singapore army, and she has secured a new contract through her “Going Dutch” campaign. Of course, everyone here knows that Northern Ireland has a strong relationship with Holland—something to do with the 16th and 17th centuries—but we have relationships across the whole of the United Kingdom and into Europe, where Northern Ireland can have influence and be better for it.
Pub Companies
Baroness Laing of Elderslie Excerpts(10 years, 8 months ago)
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Jenny Willott
I congratulate the hon. Gentleman on giving probably the best plug to his business, which has been mentioned four or five times in today’s debate—crowdsourcing will clearly not be a problem from now on.
A number of Members who have spoken have previously worked in the licensed trade, so they have been speaking from knowledge not only as constituency Members but as former licensees and so on, which has lent weight to the debate. My thanks go to the members of the Business, Innovation and Skills Committee and their Chair, the hon. Member for West Bromwich West (Mr Bailey). He and his predecessor, my hon. Friend the Member for Mid Worcestershire (Sir Peter Luff), have done crucial work over the years to raise awareness of this issue. I congratulate my hon. Friends the Members for Northampton South (Mr Binley) and for Leeds North West (Greg Mulholland) on their tireless work over a number of years.
Finally, I thank the wide range of people who responded to the Government’s consultation, including tenants, brewers, pub companies and their employees, interest groups, trade bodies, supply chain companies and consumers. Indeed, a number of Members from all parts of the House also submitted their views.
We have heard a number of stories from Members whose constituents are facing real hardship and adversity, which is clearly worrying. In his opening remarks, the hon. Member for Chesterfield (Toby Perkins) name-checked a large number of pubs that have been mentioned in previous debates, so I will not do the same. I would, however, like to highlight some of the Members who have given a passionate defence of pubs: my hon. Friends the Members for Leeds North West, for East Hampshire (Damian Hinds) and for Norwich North (Chloe Smith), the hon. Member for Huddersfield, my right hon. Friend the Member for Hazel Grove (Sir Andrew Stunell), the hon. Member for Clwyd South (Susan Elan Jones), my hon. Friend the Member for Tewkesbury (Mr Robertson), the hon. Member for Plymouth, Moor View (Alison Seabeck) and my hon. Friends the Members for Romsey and Southampton North (Caroline Nokes) and for Burton (Andrew Griffiths). That illustrates how important pubs are to a diverse range of communities across the UK. The constituencies about which Members have spoken today range from the urban to the rural and have very different issues, and that shows just how important pubs are.
As many Members have mentioned, over the course of a decade there have been four Select Committee investigations into the relationship between pub companies and their tenants and into whether a tied model causes an imbalance in bargaining power. The Government have received a large amount of correspondence from tenants about problems in their relationship with their pub company as well as from many hon. Members writing on behalf of constituents.
Although many pub companies behave well and some tenants have written in support of the tie, many others tell us that the tie arrangements with their pub companies are unfair and that a lack of transparency in particular causes a severe imbalance in negotiating power. Another issue that has been highlighted during today’s debate is the research commissioned by CAMRA based on self-reported income, showing that more than half of tied tenants earn less than £10,000 a year compared with only a quarter of those who are free of tie. The problems faced by tenants are real and clearly something needs to be done.
The Government consulted on the creation of a statutory code of practice to govern the relationship between large pub companies and their tenants and of an independent adjudicator to enforce the code. As a number of Members have highlighted, the proposals would represent a real step change for the industry, offering tenants the protection of a code of practice enshrined in statute and an independent and reliable body to which they could turn for assistance—[Interruption.]
The proposed code has at its core two important principles: the principle of fair dealing and the principle that a tied tenant should be no worse off—[Interruption.]
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. This has been a very important debate and everyone has been listened to quietly and with respect. There are far too many conversations going on and I cannot hear the Minister, who is speaking perfectly clearly. If Members are in the Chamber, they should be listening to the Minister. If they want to talk to each other, they should go outside.
Jenny Willott
Thank you, Madam Deputy Speaker. I completely agree; I have to say similar things to my children when they are bickering, as some Members appear to be today.
The two core principles at the heart of the code are fundamental. As the consultation made clear, there is a problem in the relationship between pub-owning companies and their tenants, and that was backed up by pretty much every Member who has spoken today.
Payday Loan Companies
Baroness Laing of Elderslie Excerpts(10 years, 8 months ago)
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Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Before I call the hon. Member for Worcester (Mr Walker), it will be obvious to Members present that everyone who has spoken has gone to the wire and taken every second, or more, of the eight-minute time limit. It is not really meant to work like that, and it would have been helpful if hon. Members had sometimes limited their remarks, rather than going absolutely to the cliff edge. After the hon. Gentleman has spoken, I will reduce the time limit for speeches to seven minutes.
Banking
Baroness Laing of Elderslie Excerpts(10 years, 8 months ago)
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Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Before I call the next speaker, I should say that obviously a great many Members wish to contribute and there is limited time available. I am therefore imposing a limit of eight minutes on Back-Bench speeches. If a Member takes an intervention, the eight minutes is increased by one minute, of course, and I urge Members to take that into consideration when deciding how long to speak for; otherwise, I shall have to decide for them. I call Michael Connarty.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. It will be obvious to the House that every speaker has taken their full eight minutes or more. I therefore have to reduce the time limit for Back-Bench speeches to seven minutes.
Mr Gauke
No, I shall make some progress.
We did not hear anything about the bankers’ bonus tax from Labour today—at least we do not see much about it in its motion—although it is customary on these occasions for Labour to identify yet another spending programme to be funded by it. [Interruption.] I wonder whether there was no mention of it today because the Opposition are embarrassed by previous occasions when they have claimed that more would be paid—[Interruption.]
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. This has been a quiet and dignified debate. Members who were not present during it have now come into the Chamber. I ask them to have the courtesy to listen to the Minister.
Mr Gauke
Thank you, Madam Deputy Speaker. I do not know whether the Opposition are embarrassed by previous occasions when they claimed more would be paid from a bankers’ bonus tax than was actually paid in bankers’ bonuses. Perhaps they have noticed that if they cap bonuses they will get less tax from them. They may want to revise their numbers on that.
It has to be pointed out that it has been estimated that City bonuses in 2012-13 were more than 85% lower than at their peak in 2007-08. I know there is genuine concern about bank bonuses encouraging short-term high-risk behaviour, but it is not just the amount that matters; it is also the structure of the bonuses. There is a difference between cash bonuses and bonuses paid in shares with the opportunity for clawback if there is bad behaviour or a need to rebuild regulatory capital. Under the PRA remuneration code, large parts of bonuses must be deferred and paid in shares, aligning the interests of the employee with the long-term interests of the bank. The implication of many of today’s comments is that there is a concern about total remuneration, yet the motion and everything we have heard from the Labour Front Bench is about only one part of remuneration: bonuses. The reality is that the European directive and the policy pursued by Labour will drive up salaries. It is not clear why the Opposition are interested in only one aspect of remuneration, and we have certainly not had an explanation of that. It is also worth pointing out that the Governor of the Bank of England was critical of a cap in his evidence to the Treasury Committee this afternoon.
I am pleased that Labour appears to support the virtues of competition, but that was not its record in government. There were 10 banks in 1997, but that figure reduced over the following 13 years. The Cruickshank report, produced in 2000, was supposed to encourage more competition, but it was blocked by the Treasury and nothing was done. Our record has involved a much greater focus on competition, and it is a primary objective of the Financial Conduct Authority and a secondary objective of the Prudential Regulation Authority. We have a payment systems regulator, which makes things easier for small businesses, and we have changed the application process to make it much more proportionate for new businesses. Furthermore, the regulators indicate that 22 new banks are interested in acquiring authorisation in the UK.
On empowering consumers, our new switching policy saw a 54% increase in switching in December, compared with the year before. We have heard Labour’s proposals for a quota system. We do not have the details, of course, but simply reducing the number of branches of one bank will not create huge new levels of competition. There are concerns about branches being lost under Labour’s proposals. Most significantly of all, the Governor of the Bank of England told the Treasury Select Committee this afternoon that that would not help with competition. One other person has been critical of that policy in the past. In April 2011, the shadow Chancellor said that
“there is no need to break up institutions”.
The last Labour Government’s record on the banking sector was lamentable. Their regulatory system failed, and their attempts to ensure that individuals were held to account also failed. They tried to ensure that bonuses did not create perverse incentives, but that failed. They tried to encourage more competition; that failed. They tried to protect taxpayers’ money, but that failed too. Their record is one of failure, and until they acknowledge that, there is no reason why the British people should take anything they say on this matter seriously again.
Question put.
National Minimum Wage
Baroness Laing of Elderslie Excerpts(10 years, 8 months ago)
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Madam Deputy Speaker (Mrs Eleanor Laing)
I must advise the House that Mr Speaker has selected the amendment in the name of the Prime Minister.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. The Chair has noted that the hon. Member for Skipton and Ripon (Julian Smith) has departed immediately and too soon.
Mr Newmark
I fear that the hon. Lady’s answer might have frightened my colleague away. I promise that I will not run away after she answers me. Will she at least acknowledge that this Government, by raising to £10,000 the level at which tax hits, thereby taking 2.7 million people out of taxation altogether, have indeed helped the low-paid?
Financial Services (Banking Reform) Bill
Baroness Laing of Elderslie Excerpts(10 years, 9 months ago)
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Sajid Javid
I thank the shadow Minister, the hon. Member for Kilmarnock and Loudoun (Cathy Jamieson), for her comments and all other—
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. With the leave of the House, Minister.
Sajid Javid
Thank you, Madam Deputy Speaker. With the leave of the House, I thank the shadow Minister for her comments and all other Members who contributed to the debate. In particular, I thank my hon. Friend the Member for Chichester (Mr Tyrie) for the work that he has done in this area, especially in chairing the Parliamentary Commission on Banking Standards. I have listened to all hon. Members with great interest over the past couple of hours, but in particular to my hon. Friend. I thank him for all his efforts and also for his supportive comments, which I take as broad support for the Government’s amendments.
In the time available, I shall deal quickly with some of the key issues that came up. The shadow Minister raised the issue of timing and her understanding that there was not enough time to scrutinise the Bill and the amendments. She will know that the Bill started with the recommendations of the Independent Commission on Banking, which were scrutinised extensively in the House and in the other place, including the recommendations of the PCBS. The Government produced their response as quickly as they reasonably could to the PCBS, which was in July, in advance of the Commons Report stage so that it could inform debate as soon as possible.
The shadow Minister also asked why the Government resisted Opposition suggestions on improving professional standards. Again, she will know that because the PCBS had been set up and had been asked specifically to look into this area, the right thing to do was to listen to the commission and take its views into account when drafting amendments, before anything was settled upon. She asked about minimum standards and competence. She is right to do so, as we all recognise the importance of those. It is worth pointing out that, because of Government amendments that were introduced, banks will be required to check all new applicants to ensure that they are fit and proper, and not just at the point that they start with the bank; annual checks will have to take place and regulators will have important powers to specify any qualifications that they believe are required for the job.
A number of hon. Members raised the issue of a code of conduct. The regulators, both the Financial Conduct Authority and the Prudential Regulation Authority, will have broad powers, including the ability to set up a code of conduct for banks in general or for a particular bank, as they see fit. These are the kind of powers that regulators can use in future. My hon. Friend the Member for Redcar (Ian Swales) asked how we could scrutinise regulators. He is not in his place, but he will know that an annual report produced by the regulators about how they discharge their functions will be provided to Parliament, where it can be given proper scrutiny.
There was a discussion about remuneration. Hon. Members will know that the PCBS made recommendations on remuneration which the Government have accepted, particularly on longer deferrals and clawbacks, including a full clawback if a bank ends up receiving state aid. I understand that the PRA will make further recommendations on that next year.
I have time only to touch on Lords amendment 41 which, as I said, the Government oppose. It is worth taking into account the comments of my hon. Friends the Members for Chichester and for Wyre Forest (Mark Garnier) that, although the amendment is well intended, it will lead us back to a box-ticking culture and confuse regulation and professional standards. Both are necessary, but it would be wrong to conflate these—
Madam Deputy Speaker (Mrs Eleanor Laing)
With this it will be convenient to discuss the following:
Lords amendments 64 to 154.
Lords amendment 155, and amendments (a) and (b) thereto.
Lords amendments 156, 161 to 163, 169 to 172, 175 to 180 and 182 to 184.
Sajid Javid
The second group of amendments introduce substantial changes that will ensure that consumers get a fair deal. They will drive up competition and improve outcomes for consumers. Amendments 63 to 134 introduce a new competition-focused, utility-style regulator as a separate legal entity established under the FCA.
The Government have concerns about the payment systems market, with particular problems in three main areas: competition, innovation and responsiveness to consumer needs. Under the current arrangements, there is nothing holding big banks, payment scheme companies and infrastructure providers to account for consumers. The regulator will therefore have strong powers and objectives: to ensure that the operation of payment systems promotes fair and open competition in banking; to promote innovation in payment systems, for the benefit of consumers; and to support the interests of end users.
The regulator will have bespoke objectives and powers to address problems particular to the market for payment systems, allowing for the benefits of close co-ordination with the FCA. Once a payment system is brought into scope, the regulator will have powers over the system’s operators, infrastructure providers and providers of payment services using the system.
The payment system regulator will be equipped with a broad range of regulatory powers, enabling it to address the significant issues causing problems in the market for payment systems. To open up access and encourage greater competition, the regulator will be able to intervene and require changes to any anti-competitive fees or terms and conditions of an agreement for access to regulated systems. It will have powers to require the provision of access to payment systems. The regulator will also have competition powers exercisable concurrently with the Competition and Markets Authority.
My hon. Friend the Member for South Northamptonshire (Andrea Leadsom), who is in her place, will be pleased to know that the regulator will examine the case for full account number portability within 12 months of its establishment—although, with the successful seven-day switching service, which was launched by banks in September, hon. Members should know that they do not have to wait until then if they want to switch their account quickly.
Cost of Living
Baroness Laing of Elderslie Excerpts(10 years, 10 months ago)
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Sajid Javid
I am sure that question will be looked at further during the Co-op inquiry. The number and nature of meetings between the Leader of the Opposition, the shadow Chancellor and Co-op representatives will also be looked at—[Interruption.]
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. The House cannot hear the Minister. If hon. Members want to argue with him, they must hear what he has to say first.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. The hon. Gentleman is making a brief intervention, and he must be heard.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Before I call the next speaker, the House will be aware of the high demand for time to speak and the lack of supply of it before we reach the end of the debate. I therefore impose with immediate effect a limit of eight minutes on speeches from Back Benchers.
The Leader of the House of Commons (Mr Andrew Lansley)
On a point of order, Madam Deputy Speaker. I am sorry to interrupt the debate, but have you have had any indication from Mr Speaker whether he intends to make any statement to the House about his speech to the Hansard Society this evening, in which he proposes to announce the establishment of a Speaker’s commission on digital democracy? Furthermore, briefing of the media on the speech and the announcement within it has been taking place for some four hours already without any announcement being made to the House.
Madam Deputy Speaker (Mrs Eleanor Laing)
I am not aware of any such plans for any such statement and, as the right hon. Gentleman knows, that is not a matter for the Chair.
Women and the Cost of Living
Baroness Laing of Elderslie Excerpts(10 years, 10 months ago)
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Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Before the hon. Member for Ashfield (Gloria De Piero) progresses, I gently remind her that one does not refer to Members of the House by their names. The Prime Minister is “the Prime Minister” and the Chancellor of the Exchequer is “the Chancellor of the Exchequer”.
Nicky Morgan
My hon. Friend is absolutely right, and it is a critical point. The tax-free child care policy that we have announced will, for the first time, benefit self-employed women, and that is something that the current voucher system does not do.
In conclusion, it is clear that, despite some of the claims put forward by the Opposition, the Government’s plan for recovery is the only plan that will create sustainable long-term growth for our country. It is the only plan that will support employment. It is also the only plan that not only puts faith in the abilities of the women and men of this country to help us work our way back into prosperity, but puts money, through our rise in the personal allowance, back into their pockets. I, like the hon. Member for Ashfield, want to see even more women working, setting up businesses and rising to the top of businesses. The Government want to make that happen, so I ask the House to reject the motion before us.
Several hon. Members rose—
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Before I call the next Member to speak, I must tell the House that, as there has been a large amount of interest in this debate and there is only a limited time available, I have had to impose a seven-minute limit on speeches from the Back Benches.
Alison McGovern
I am glad that the hon. Gentleman intervened to patronise me and say that I do not like to hear facts—[Interruption.] I am glad that he intervened to patronise me in that way, because—[Interruption.]
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Gentlemen, the hon. Lady must be heard.
Alison McGovern
Thank you, Madam Deputy Speaker.
The hon. Member for Braintree (Mr Newmark) tells me that I do not like to hear facts, and then he confuses the population of women in employment with the unemployment rate. I am sorry—[Interruption.] Madam Deputy Speaker, it is incredibly frustrating in this House when people shout things like, “More women in work than ever before,” when we all know that the rate of unemployment is what matters. I suggest that the hon. Gentleman acquaints himself with some of the facts. If the population increases, that will increase the population in work. It is the unemployment rate that matters, most importantly the long-term unemployment rate. That is the most damaging thing, as I know from communities such as mine. Long-term unemployment has increased eight times as fast for women as it has for men, so I would instruct the hon. Gentleman to acquaint himself with the facts rather than coming to this House to patronise me.