Financial Services Bill (Second sitting)

Debate between Gareth Davies and Angela Richardson

Committee stage & Committee Debate: 2nd sitting: House of Commons
Tuesday 17th November 2020 Public Bill Committees

[Angela Richardson]

Thank you.

[Gareth Davies]

Q My understanding is that the British Government have so far filled out something like 2,500 pages of questions from the European Union, all of them to strict deadlines. What do you think has caused the delay in the EU granting equivalence or making any public statement on that? Clearly the UK is equivalent, so what is causing the delay?

Adam Farkas: I do not know. What I can say is that the equivalence determination process consists of two stages. One is a technical assessment that involves a detailed assessment of the rule book for the set of regulations, with questions and interactions. In every jurisdiction there is a second stage, which is the determination itself after the technical assessment. That stage is a much more political decision, or is a decision of a more political nature; it considers other aspects in addition to the interests of the jurisdiction making the determination. The answer probably lies there, but I have no information on why equivalence decisions have not yet been made on the EU side. It is not true to say that no equivalence decisions have been made; some have been determined and published, even if on a temporary basis.

Co-operative and Community Benefit Societies (Environmentally Sustainable Investment) Bill

Debate between Gareth Davies and Angela Richardson

2nd reading & 2nd reading: House of Commons
Friday 11th September 2020 Commons Chamber

[Gareth Davies]

I thank my hon. Friend for his intervention. I will not repeat what I said to my hon. Friend the Member for Milton Keynes North (Ben Everitt), but to take an example, the French Government under the leadership of President Emmanuel Macron have now issued more than €22 billion of sovereign green debt. Of their first issuance, I believe that 28% was funded by British investors. So again, I would like to see British investors investing in British renewable infrastructure.

There is an opportunity for co-operatives to issue green debt and bring in private capital, which is exactly what the hon. Member for Cardiff North intends to achieve, but it would also increase the level of pounds sterling issuance in the green bond market, so perhaps that is an idea for her next private Member’s Bill.

As I said, I support the spirit very much of what the hon. Lady is seeking to achieve. However, I do not believe that the Bill is the right tool to help co-operatives and to help us move them forward and address climate change.

[Angela Richardson (Guildford) (Con)]

In the spirit of talking about the climate and all the things we want to do, and building on the excellent point made by my hon. Friend the Member for Clwyd South (Simon Baynes) about the hybrid nature of this Bill, does my hon. Friend agree that by bringing in this outside investment, we are potentially creating a risk for co-operative members?

[Gareth Davies]

I thank my hon. Friend for her intervention. I will comment on the protection of members’ rights shortly. It is not just me who is critical of the detail of this Bill. As my hon. Friend the Member for Hertford and Stortford (Julie Marson) noted, Co-operatives UK said that the Bill is “impracticable and counter- productive”. The hon. Member for Cardiff North did intervene on my hon. Friend to note that Co-operatives UK said that detail should be filled in at a later stage, but I would have liked to have seen the detail at this stage.