Co-operatives

Debate between Gareth Thomas and Philip Hollobone

Thursday 14th July 2016 Westminster Hall

[Mr Thomas]

Having ruined my own career, and probably his too, by praising the hon. Gentleman, let me move on to other areas that we have not discussed prior to the debate.

One of the things that many co-operative businesses active in their communities point out is the way that the internet is changing the nature of retailing. By definition, many internet retailers do not have large property footprints in particular communities and therefore pay substantially less in property tax than those who are offering a direct service on high streets in communities up and down the land. I support the call of many in the co-op retail movement for a review of the business rates they have to pay by comparison to the taxes that online businesses such as Amazon have to pay at the moment, which are substantially less.

In my earlier intervention on my hon. Friend the Member for Cardiff South and Penarth, I raised the potential contribution of the military credit union. I hope Ministers in the new Government will go further than just support for a military credit union and will recognise the huge benefits of trying to extend credit union membership. In particular, I would like to see a right to save, so that anybody who wants money deducted at payroll and sent to their credit union should be allowed to make that request and have that implemented without question. At the moment, it is at the discretion of the employer. Everybody knows that this is a service that can be offered incredibly cheaply by employers, but it is a matter of will. The very best employers do it, but sadly too many do not. Perhaps putting a right to save on the statute book could help to boost membership of credit unions.

I have always very much supported the idea of a British version of the Community Reinvestment Act, which would place a requirement on major banks to account for the services that they provide to the communities from which they take deposits. When those major banks leave those communities and shut branches, there should be an obligation on them to continue to work there, albeit perhaps through credit unions or other community banks operating there. That legislation works extremely well in the United States and is long overdue here in the UK.

I add my voice to those who have called for a profit-sharing requirement on big companies. There is merit in the French idea that 5% of profits should be shared among those employees who have helped to create that profit in the first place. That would seem to be one further way in which we could create an economy that works for all. I commend my hon. Friends and other hon. Members who have participated in this important debate.

[Mr Philip Hollobone (in the Chair)]

We now come to the first of the Front-Bench speeches. The recommended guidelines are 10 minutes for the SNP and for the Opposition, and if the Minister could end his remarks at 2.57 pm, we can then allow the hon. Member for Cardiff South and Penarth (Stephen Doughty) to wind up the debate.