Oral Answers to Questions

Gary Streeter Excerpts

Tuesday 1st October 2019 Commons Chamber

[Mr Speaker]

We will hear from a Devon knight, I think. Sir Gary Streeter.

[Sir Gary Streeter (South West Devon) (Con)]

Is not the closure of ATMs linked to the decision by high street banks to close their branches left, right and centre? Will the Minister, in his regular meetings with the chief executives of high street banks, remind them that they do have some duty to elderly customers and small businesses?

[John Glen]

I do that regularly. We are also trying to ensure that the transfer of responsibility to the Post Office runs smoothly, because 99% of people live within 1 mile of a post office, so it is a very good alternative for the vast majority of their banking services.

Oral Answers to Questions

Gary Streeter Excerpts

Tuesday 9th April 2019 Commons Chamber

[Robert Jenrick]

My right hon. Friend the Chancellor and other Treasury Ministers are working with the banks, which tell us that they are making funds available to businesses that need support as their cash flow is under pressure and need working capital in the months ahead. Of course, the best service that any of us in this House can do for manufacturers and businesses across the United Kingdom is to support a negotiated exit from the European Union as soon as possible.

[Sir Gary Streeter (South West Devon) (Con)]

Building on the previous question, I am told that manufacturing output in Plymouth is holding up well, but that is partly due to customers purchasing to stockpile because of Brexit uncertainty. That may result in a lack of demand once we get Brexit over the line, if we ever do so. Have the Government given any thought to supporting manufacturing businesses through any short-term downturn that paradoxically might occur once we get Brexit over the line?

[Robert Jenrick]

The Treasury and other Departments have advanced plans to support the manufacturing sector should that be required in the event of a no-deal exit. The evidence we see shows that, if we can secure a negotiated exit, there is a great deal of business investment waiting to go back into the economy. This year could turn out to be a strong one for the British economy, if only we can secure the deal.

Online Gambling Protection

Gary Streeter Excerpts

Tuesday 12th March 2019 Westminster Hall

[Richard Graham]

rose—

[Sir Gary Streeter (in the Chair)]

You do not get a comeback on a 30-minute debate, I am afraid.

Question put and agreed to.

Oral Answers to Questions

Gary Streeter Excerpts

Tuesday 11th September 2018 Commons Chamber

[Mr Gary Streeter (South West Devon) (Con)]

6. If he will provide additional resources to the Department for Digital, Culture, Media and Sport to support the Mayflower 400-year anniversary celebrations.

[The Exchequer Secretary to the Treasury (Robert Jenrick)]

We recognise that the Mayflower commemorations are an important moment for this country to celebrate our tied history with the United States and the unending quest for religious freedom and toleration. The Government gave £0.5 million to the Mayflower 400 project in the 2015 spending review, and we will continue to support it in the years to come.

[Mr Streeter]

Given the significance of the voyage of the Mayflower—in historical terms, it was one of the planet’s most influential journeys and it helped to found our democracy and freedom—will the Minister respond positively to the letter he has received from the all-party parliamentary group on the Mayflower pilgrims requesting that we have sufficient resources to celebrate this amazing event in a spectacular fashion?

[Robert Jenrick]

At the suggestion of my hon. Friend and of my hon. Friend the Member for Plymouth, Moor View (Johnny Mercer), I met Charles Hackett, the chief executive of the Mayflower 400 project. We had a productive meeting, and we are considering the materials that the project left with us. I advise my hon. Friend the Member for South West Devon (Mr Streeter) and the organisers of Mayflower 400 to continue working with the Department for Digital, Culture, Media and Sport and the Treasury as they continue to formulate their plans, which will benefit not just Plymouth but Boston, Bassetlaw and communities across the country.

Leaving the EU: Customs Arrangements

Gary Streeter Excerpts

Tuesday 10th July 2018 Westminster Hall

[Several hon. Members rose—]

[Mr Gary Streeter (in the Chair)]

We have 30 minutes until the Front-Bench speeches begin and three people are seeking to catch my eye. Even I can do the maths: there are no more than 10 minutes each, including interventions.

--- Later in debate ---

[Jim Shannon]

I am sure that the Government will respond in relation to the arrangements that are already in place. I do not have the knowledge of Holyhead and what is going on there to comment; but I am fully aware of what happens in south Armagh and in the Republic of Ireland and Northern Ireland, and I think I speak with some authority about that.

I want to be careful about the time, Mr Streeter; am I allowed some leniency as to extra time?

[Mr Gary Streeter (in the Chair)]

There is a minute to go.

[Jim Shannon]

My goodness! Then I will go on to mention that the Prime Minister said at Prime Minister’s Questions that we are working towards a

“Brexit that ensures that we are out of the customs union, we are out of the single market, we are out of the jurisdiction of the European Court of Justice, we are out of the common agricultural policy, we are out of the common fisheries policy, we bring an end to free movement, we take control of our borders, and we have an independent trade policy, but we are also able to have a good trade arrangement with the European Union, protecting jobs and prosperity for the future.”—[Official Report, 4 July 2018; Vol. 644, c. 315.]

That is what I wanted to hear, and I will support her to achieve that.

My party’s leader, Arlene Foster, has said:

“People voted to take back control of their laws, borders and money, not to make Northern Ireland’s constitutional framework resemble the backside of a tapestry.

To create some kind of hybrid status for Northern Ireland where we would be subject to laws and regulations set by others over which we would have no say, whilst setting us apart from our biggest market in the rest of the UK, is sheer madness. It would be the road to economic ruin and the beginning of the constitutional break-up of the United Kingdom.”

People cite the Belfast agreement as a reason to retain a special status in the Union. They say that the terminology that asks for the encouragement of cross-border trade means that we must continue the status quo. That is not the case. The only say that the Belfast agreement has in the matter is the fact that any calls for unification with Ireland must be done through a border call. That has not been done. A back-door unification through a segregated UK is not acceptable. Let us make it clear what we are saying. I look to the Minister in this matter. This customs arrangement must ensure that the integrity of the UK is retained, and that is not simply for the benefit of Northern Ireland—it is for all of us, the United Kingdom of Great Britain and Northern Ireland. As I often say to my Scottish National party friends, we are better together.

--- Later in debate ---

[Jonathan Reynolds]

My hon. Friend is absolutely right. I say to all Ministers that, for many of us, this matter is not an abstract question. I am a little younger than my hon. Friend the Member for Bishop Auckland (Helen Goodman), but I grew up in the north-east in the 1980s, not far from her constituency. It was clearly a time of substantial turmoil. We had the miners’ strike and the shipyards closing. The modern prosperity of those areas has been built around a relationship with the single market, the European Union and inward investment. Many of my schoolfriends work in that Nissan plant, which is the most efficient car factory in the world. There is a plant in Mexico that disputes that, but we are pretty sure we have got it. The Government should not underestimate just how willing many of us are to fight to ensure that the next generation do not have to undergo the kind of economic turmoil that many of grew up within. They should recognise the benefits that have been brought from that relationship.

The Taxation (Cross-border Trade) Bill—many of us here are veterans of its Committee—ostensibly sets out from the Government’s point of view how we will create a functioning customs framework for the United Kingdom once we leave the European Union. Many of us have read all of that Bill, and there is nothing in it that guarantees frictionless trade through UK ports from the moment of exit. There are no measures that properly resource Her Majesty’s Revenue and Customs for the task ahead. There is nowhere near sufficient detail on the powers and provisions of the Trade Remedies Authority, which will be charged with securing vital British interests.

Frankly, it is just an enabling Bill. The political decisions that will be required to decide whether we use the powers within that Bill have not yet been taken. They may have been taken at Chequers, but we will need to see more detail on that and the political fallout. It is still fair to say that the Government have failed to offer specifics on what the new customs system will look like, how it will work and, crucially, whether it will be ready on time. Huge underlying questions remain about whether the current customs declaration service programme can deal with the sheer workload and pressure coming its way post-Brexit.

Everyone in the House agrees that we must avoid the nightmare scenario of gridlock at UK ports with lorry queues stretching as far as the eye can see, yet the Government continue to refuse to acknowledge that HMRC has had its staffing levels cut substantially—they have been cut by nearly a fifth since 2010. There are still plans to close 137 HMRC offices across the country. HMRC has 2,000 less staff today than it did on the day of the referendum. That has to bring into question our ability to deal with a future customs regime.

In contrast, we recognise the urgent need to hire and train more customs officers and HMRC staff, particularly if the Government are to meet their ambitious target of a fully operational customs system by 2019. In addition, the Public and Commercial Services Union only last week warned that strike action looks increasingly likely after the Treasury announced without consultation that the pay cap would be lifted only through cuts and increased workloads across Departments. That is not an ideal position to be in, based on where we are today.

Post-Brexit, we will need the ability to enforce against the dumping of unfairly priced goods. At the moment, those remedies are provided in conjunction with the EU, but on leaving the UK will have to enact and manage its own trade remedies. The measures are spread across a number of pieces of legislation and are of great interest and importance to UK manufacturers. The manufacturing industry remains an indispensable part of the UK economy. Some of the speakers today, particularly my hon. Friend the Member for Bishop Auckland, articulated just how specific and detailed the questions are that we are receiving from constituents on how the system will work. The complexity of modern manufacturing does not seem to tally with some of the Government’s aspirations for how the system will work going forward.

We want the Government to set out a clear path to our mutual objective of creating a functioning institutional framework for the handling of customs once we leave the European Union. Crucially, we must recognise that the final customs regime post-Brexit will be a result of the deal we strike with the EU, not the deal we strike among ourselves in Parliament or between different factions of the Conservative party. We must be ready for that regime, but we feel that the overwhelming evidence favours the UK entering into a continued and renewed customs union with the EU. The Government perhaps moved some way towards that last weekend. Perhaps they will go just that little bit further to get us the post-Brexit customs regime that this country needs.

[Mr Gary Streeter (in the Chair)]

Before I call the Minister to respond, I ask him to leave two minutes for Mr Hammond to have the final word.

--- Later in debate ---

[Mel Stride]

My hon. Friend is right inasmuch as that is potentially the case if there are any inconsistencies—we might otherwise have varied our rules accordingly to accommodate an FTA. However, the Government have made it clear that although we will have total alignment at the start, we will not seek an arrangement where we will be unable to deviate from that in the future, albeit we recognise that there will be consequences for doing so.

A number of hon. Members raised the issue of preparedness, and I assure them that we will be in a good position and ready on day one if we have a no-deal situation. The Chancellor allocated £3 billion for Brexit preparations in the last Budget. Her Majesty’s Revenue and Customs received £46 million last year and around £250 million in this financial year. We have already recruited, or have in train the recruitment of, around 1,000 new staff going into HMRC with a focus on borders. We have said that we will move that figure up to between 3,000 and 5,000. Some Members mentioned the customs declaration system. The National Audit Office has suggested that we are broadly speaking where we need to be to ensure that that system comes online and live before March next year.

The hon. Member for Streatham (Chuka Umunna) asked why the EU would allow us to collect EU tariffs when there are no such arrangements with any other trading partner. We are in a unique situation. We are a very large trading partner with the European Union. We have complete alignment at the moment in regulations with that market, so we start from a position that is not occupied by others.

I think I have gone through most of the points raised by the hon. Member for Bishop Auckland (Helen Goodman). I am grateful that she said that initially she broadly welcomed the proposals, and we should all do.

My hon. Friend the Member for Eddisbury (Antoinette Sandbach) made the very important point that we are seeking an arrangement that can command the broad support of the British people—an arrangement that ensures that the UK and the EU have frictionless access to each other’s markets for goods; that provides regulatory flexibility in the way that I have described; that enables commitments to Northern Ireland to be met and the Good Friday agreement to be honoured; that sees us leave the common agricultural policy and the common fisheries policy; that allows us to deliver an independent trading policy; that ensures that, in future, all laws in the UK will be legislated for by our Parliament; that restores the supremacy of UK courts; and that ends the free movement of people and vast payments to the EU. The broad majority of people in our country will welcome that achievement.

I hope that, particularly in the debate on Monday, Parliament as a whole comes together. This is a moment in our history where there are undoubtedly significant opportunities, but also a number of challenges. I hope we see the debate through that prism, rather than through anything that is rather more narrow and party-political. On that note, Mr Streeter, I gladly give the Floor to my hon. Friend the Member for Wimbledon.

[Mr Gary Streeter (in the Chair)]

Thank you very much. Mr Stephen Hammond will have the final word.

Budget Resolutions

Gary Streeter Excerpts

Thursday 9th March 2017 Commons Chamber

[Mr Jackson]

While we are asking questions, is the hon. Gentleman embarrassed about the fact that a Conservative Government have brought about a situation in which 1% of taxpayers fund 27% of tax revenues? At the same time, £140 billion in uncollected taxes that the Labour Government did nothing about have been collected in the past seven years to fund our public services.

[Mr Streeter]

We are one of the richest economies in the world. The distributional analysis published alongside the Budget by the Treasury is embarrassing. The picture that plays out across this Parliament as a result of the tax, spending and welfare decisions made by the Chancellor and his predecessors is very clear. The poorest households and, on an unprogressive gradient, those from lower income households, are absolutely clobbered by this Government.

Only the very richest decile are worse affected than the very worst paid and the least well-off. Someone who is paying the very highest rate of tax will pay more than the very poorest as a percentage of their income, but for some of those people, a tax increase of thousands of pounds a year is relatively small change compared with a £20, £40 or £50 increase for the very poorest. What would be marginal increases for hon. Members are huge for people who are just about managing to pay the bills or, more likely, people who are among the millions turning to credit cards and fuelling a record boom in unsecured household debt. That is what Tory Chancellors always fail to understand. They have no understanding and no conception of what it is like to go without, or of having to cut corners between either heating or eating. That is why, for the past seven years of Tory Budgets, those are the people who have been most left behind.

[Norman Lamb]

Did the hon. Gentleman pick up the comments of Charlie Bean, formerly of the Bank of England and now of the Office for Budget Responsibility, who said that consumer spending is unsustainable and based on record debt that is going back to the levels we saw before the crash?

Commonwealth War Graves Commission

Gary Streeter Excerpts

Tuesday 10th May 2016 Westminster Hall

[Kirsten Oswald (East Renfrewshire) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Streeter. I commend the right hon. Member for Broadland (Mr Simpson) for securing this important debate and for his interesting opening speech. It is timely, given that so many of us are focusing on the events of a century ago and on the immense sacrifices made by so many around the world in the two great wars of the last century, among other conflicts that have secured the freedoms that we take so much for granted today. It has been interesting to hear about the personal links that remain. Like the right hon. Gentleman, I have a grandfather, Ed Oswald, who made a contribution in the Royal Navy during the second world war. Such circumstances make this matter very personal for many of us.

We in the Scottish National party believe firmly that the Government should continue their support for the commission so it can continue to meet its important obligations and objectives. We fully support and commend the commission’s work. As my hon. Friend the Member for Stirling (Steven Paterson) said, it is only right that people who died while serving in our armed forces are commemorated properly, and that there is a lasting historical legacy as well as a memorial for the generations coming after. The work of the commission is also important in highlighting to those who choose to serve today that we recognise and understand the dangers inherent in the job that they sign up to do.

Scotland, the UK and nations around the world suffered devastating losses of life in the world wars. I spent many hours as an undergraduate studying those particular wars, but no matter how dispassionately and academically one tried to look at what happened, it was and remains impossible to be anything other than devastated by those young lives lost and wasted by the thousand upon thousand. The only thing that we can do now is remember those who were lost and learn the lessons from the conflicts in which they perished. The Commonwealth War Graves Commission plays a vital role in allowing us to do so.

I was interested to read on the Commonwealth War Graves Commission website—I echo hon. Members’ comments about its excellence—significant reference to the Scottish national war memorial. Although the memorial is not owned by the commission, it is clear that there are strong links and a unity of purpose between those organisations that the names of each person killed in each specific locality during the first world war should be remembered forever.

I was fortunate to visit the Scottish national war memorial recently and see the care taken to remember each individual person and commemorate their life. People are named individually, and it is a peaceful, beautiful and fitting memorial. On the way out, there is a statue titled “Reveille” commemorating the end of war and symbolically looking forward to a new peaceful dawn. I was struck by that beautiful representation of the importance of looking forward peacefully as a means of remembering the fallen. I have a picture of it in my office. It sends a powerful message of remembrance.

I join the hon. Member for North Durham (Mr Jones) in commending the dedication of the founder of the Commonwealth War Graves Commission, Fabian Ware. A century has passed since the commission’s inception. Clearly, the 1,300 staff of the commission have cared tirelessly for the cemeteries and memorials of those who died in the two world wars. It bears repeating that the commission is working in a staggering 23,000 locations, in no fewer than 154 countries, to commemorate all those men and women of the Commonwealth forces who died. The scale of that work really is immense and the work involved in managing it must be recognised.

As the right hon. Member for Broadland noted, under its royal charter obligations, the commission is responsible not only for the care and commemoration of the graves and memorials of the members of the Commonwealth armed forces who died, but for the protection of their remains in perpetuity, where their final resting place is known. The commission commemorates those with no known grave on stand-alone memorials, such as screen walls erected in burial grounds and elsewhere. Casualties interred in common graves may not always have a headstone marking the grave, but in that case they will be commemorated appropriately, away from the burial location.

The commission continues to develop and progress its work in remembering those who have fallen, with appeals still going out today using the latest social media and web technology, as opposed to the very immediate personal appeals made at the time. I know that, because the commission office, which is not far from my own constituency, at Gartmore parish church, is still looking for the relatives of soldiers who perished a century ago, including Private James Cameron of the King’s Own Scottish Borderers, who died in June 1917, and Private James Graham of the Gordon Highlanders, who died in June 1918. That kind of dedication to remembering those who lost their lives is clear; it is what the commission is all about.

It is heartening that the commission is embracing technology. It is using apps and its excellent website very effectively to engage with schools and community groups to encourage them to visit the memorials, so as to bring this particular aspect of history much closer to people individually.

We have heard that legislation allows the commission to ensure that war graves and memorials are protected as far as possible. The commission clearly spends significant time inspecting and maintaining war graves via its own maintenance teams. It is a huge undertaking. There are over 100,000 war memorials in the UK. The commission currently cares for approximately 21,000 graves and memorials in more than 1,200 sites across Scotland, whether they are local cemeteries, churchyards, dedicated military cemeteries, or single graves in burial grounds.

I would be surprised if anyone here has not seen graves cared for by the commission. I remember as a child visiting Shanwell cemetery in Carnoustie and looking at the beautifully kept Commonwealth war graves. In my travels around my constituency, I see that there are Commonwealth war graves in cemeteries in Barrhead, Eaglesham and Newton Mearns, marking the sacrifice of young men and young women—and there are graves of young women, among those of the young men, who were also cut down in their prime.

Last year, it was an honour to attend many memorial services around East Renfrewshire. As well as attending the opening of an outstanding community-funded war memorial at Neilston, I was privileged to march with the Jewish veterans in Newton Mearns and to meet a veteran in Barrhead, of whom I have spoken in this House before, and who cycled to Clydebank from Barrhead during the blitz to put out the fires there. That is the kind of sacrifice that people were prepared to make and that we should commemorate.

As the hon. Member for Strangford (Jim Shannon) noted, the commission’s current Living Memory initiative, to encourage people to visit the sites in their local areas and learn more about the stories of those who are buried there, will undoubtedly lead to greater knowledge and understanding of those who died and the circumstances of their deaths. These graves and memorials can help people to connect with those who were involved in past conflicts, as well as giving us a local connection, a real human connection with history, and, as my hon. Friend the Member for Stirling said, a desire to learn very important lessons from the past.

The commission also tends a number of architectural structures, from the imposing India Gate in Delhi to tiny cemeteries containing just a handful of graves. It does that work around the globe, ensuring that the sacrifices of the very brave servicemen and women from countries all around the world are noted and remembered. I was very pleased to see a feature on the commission website highlighting service personnel from Canada, South Africa and India, among other countries. I am very pleased to hear of the ongoing work of the commission in relation to Indian families who may have connections to our service personnel in the past.

From the trenches of the western front to the deserts of Mesopotamia, over 1.1 million Indian soldiers served in the first world war. By November 1918, over 60,000 men from the subcontinent—who were diverse in culture, language and faith—had given their lives. In death, these men were treated according to their respective religions. As the right hon. Member for Broadland indicated, while Muslim soldiers were buried and their graves marked by headstones, the remains of Sikh and Hindu soldiers were cremated, with their ashes being scattered and their names engraved on cremation memorials around the globe.

In Eritrea, nearly 1,000 Commonwealth war dead from the second world war are buried or commemorated. The hon. Member for North Durham spoke of the astonishing range of locations all over the world. As we have heard, the member Governments that make up the commission reflect that kind of geographical diversity and the truly global nature of the conflicts that the commission commemorates. Those Governments contribute proportionately to the commission.

Clearly, there are ongoing discussions about whether to transfer the responsibility for the maintenance of war graves of military personnel who have been buried in the UK since 1948 from the commission to the Ministry of Defence. The key point is that these graves must be maintained and looked after properly, and that there is a clear responsibility for doing so. It is important that the Government continue their support of the commission and that discussions are facilitated in order that these obligations and objectives can be met.

Like the right hon. Member for Broadland, we on the Scottish National party Benches pay tribute to the very hard work undertaken by the commission’s staff in the UK and across the globe, who maintain the commission’s reputation for providing such a high standard of maintenance. He also made valuable points about the contribution of so many countries, where so many of these graves lie, and I agree with that.

[Mr Gary Streeter (in the Chair)]

Order. The hon. Lady has had her 10 minutes.

Bank of England and Financial Services Bill [Lords]

Gary Streeter Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 19th April 2016 Commons Chamber

[Helen Goodman]

I am pleased to follow the hon. Member for Broxbourne (Mr Walker) who made an excellent speech on an important subject. He showed his characteristic bravery and forcefulness in addressing an issue that many other hon. Members wanted to address, but were unenthusiastic about putting themselves in the firing line.

The Minister said earlier that everybody is happy with this Bill, but now that we are discussing the regulation of financial services, she may discover that Labour Members are not quite so happy with this part of the Bill. I wish to speak in support of amendments 8 and 9, and I am also sympathetic to amendment 2 tabled by the Scottish National party. Getting the senior management regime right is vital for reducing the risk of further irresponsible behaviour in financial institutions, particularly the banks. We all know the devastating impact that the behaviour of the banks had on rest of the economy—anyone who is in any doubt about that should see the film “The Big Short”, which wonderfully describes that episode, albeit from an American point of view.

The clauses on the senior management regime are a retreat from the sensible legislation introduced in 2012, following the Parliamentary Commission on Banking Standards, which recognised that one way of changing behaviour and culture is to make those people at the top of the banks accept their full responsibility. The clauses in the Bill no longer do that. It is completely sensible for people to be expected to have the same responsibility for the behaviour of those who work for them that other institutions have for health and safety.

We have heard a number of arguments for the Government’s decision to reverse the reversal of the burden of the proof—rather an awkward mouthful—and one of the main arguments is that the regulatory approach that was legislated for in 2012 is too burdensome. This, however, misses the whole point, which is that we want people to spend more time looking at how to reduce risk rather than spending a great deal of time on how to make lots and lots of money irrespective of the risks posed to the economy. The risk does not apply ultimately to themselves on their own account, but it infects all other financial institutions.

I attended a seminar in the City last week, and senior practitioners from law firms, accountancy firms and from some of the big asset managers were in attendance and proved to be supportive of the original parliamentary commission approach. I expressed my feeling that it was disappointing that the Chancellor was going back on this, and suggested that he was not doing it as a whim, but because he had been lobbied to do so. I asked why they thought he had been lobbied in this way. It was, of course, a naive question, and I had no idea what the answer would be. They all roared with laughter and said, “Well, it’s obvious. It’s a way to facilitate people making millions of pounds without facing any downside risks.”

We cannot put ourselves in that situation again. The cost of the bail-out in 2008 was £133 billion. We really must take seriously the lessons that can be learned from that, which is why the amendments tabled by my Front-Bench team and by the SNP should be taken seriously and accepted by the Government.

[Mr Gary Streeter (South West Devon) (Con)]

I should like to take this opportunity to introduce my new clause 10, which is aimed at safeguarding the free debt management sector. Let me reassure the Minister that this is very much a probing amendment; I know she is looking forward to responding to it.

There has been a long debate over the “fee versus free” principle in the provision of debt management plans for indebted consumers. It is not my intention to re-open that debate now, although my concern is about free providers that are facing a looming capacity crisis.

Organisations such as PayPlan and Christians Against Poverty operate the “fair share” model of free debt management that sees creditors covering the cost of customer plans on a polluter-pays basis—in other words, through schemes that are free to the debtor. These organisations are facing increasing pressure as a consequence of fee-charging firms leaving the marketplace after failing Financial Conduct Authority authorisation. In one recent case, this left 16,000 debt management clients unsupported, and these customers are now being are being signposted to free providers. The last thing people want to happen when they are caught up in the desperation of heavy debts and are trying to slog their way out of it is, of course, that the person advising them suddenly disappears so that they have to start again with new people.

The debt management sector is nearing a desperate point, and the market is becoming increasingly inefficient, with consumers treated badly in many cases. The fair-share operators I mentioned have seen their revenue reduce as a consequence of consumers’ disposable income falling. As more and more fee chargers leave the market, we will soon face a situation in which fair-share operators are unable to provide economically viable plans. Plainly, we now face a situation in which consumers will be charged higher fees and their options for free debt management services will be severely limited—again, we are going in the wrong direction.

There were considerable and commendable efforts over the course of the last Parliament aimed at safeguarding free debt management provision, most notably on the creation of a voluntary protocol. Members of all parties have tried to make similar long-term changes, reflecting the cross-party nature of this issue. More recent efforts have come from the parliamentary debt management working group, of which I am a member. I see in her place our chairman, the hon. Member for Makerfield (Yvonne Fovargue), who is poised to speak in, I hope, support of my new clause.

Recent efforts have been aimed at establishing an industry-wide offering of free consumer debt management services. I accept that, while desirable, such an approach may not be feasible at this time. The new clause provides for a small tweak to the Financial Services and Markets Act 2000, mandating all creditors, via an FCA rule change, to fund free-to-consumer debt management plans under the “fair share” model. Many large creditors—banks and credit card companies—do accept a reduction in the amount due in exchange for the establishment of a coherent plan, but some still do not, and the new clause is intended to tackle that. While it falls short of outlawing the provision of fee-charging plans, it provides a strong safeguard for the “fair share” model, ensuring that customers can continue to access free debt management plans.

I am certain that this is a robust mechanism for desperately needed reform in the debt management sector, and I hope that, subject to Members’ approval, it can be implemented without delay. I thank the Economic Secretary for her interest in the matter, and for her helpful guidance behind the scenes.

Every age has its challenges, and it may well be that historians will look back at our era and marvel at the levels of unsustainable personal debt that were carried by so many people. Such debt may arise from grave misfortune, poor choices or the actions of others, but whatever the reason, it is vital that the right help is at hand to help people to step their way out of debt, and the FCA can assist that process by making the rule changes I have proposed. I thank the Economic Secretary again for her patience and kindness, and commend the new clause to her and to the House.

[Yvonne Fovargue (Makerfield) (Lab)]

I am afraid that I cannot support new clause 10. While I have great sympathy with the aim of the hon. Member for South West Devon (Mr Streeter) to keep the free-to-consumer plans going, I do not feel that his new clause will achieve that.

I am slightly unclear about the use of the term “fee”. As the hon. Gentleman said, this is currently a voluntary arrangement. I am a little concerned about what public benefit would result from his proposal. Would it merely ensure supplier revenues for certain service providers? If so, is that really a legislative issue? I have wider concerns. I feel that too few debt providers give advice on debt, but I also feel that the current landscape is fairly confusing. I do not think that introducing a statutory funding mechanism for one debt solution—a debt management plan—is the right way forward. Plenty of options are available to people in debt, including bankruptcy, debt relief orders, debt management plans, administration orders, debt consolidation, and individual voluntary arrangements.

Many of those plans are not funded sustainably. I think that one organisation that offers them is paid £35 for each order that it issues, and that is not a sustainable solution. I do not want providers to offer plans on the basis of how they are funded rather than on the basis of what is best for the individual, but I fear that the new clause could lead to their doing so. I am sure that many would not, but the new clause might lead to more providers’ choosing to offer the “fair share” solution because it is statutorily funded, whereas they make a loss on every debt relief order that they issue. That is not the best solution for the individual who is in debt.

I think that we need a proper review of the current debt solution landscape. I believe that it is too complex, and that it is not properly costed. I also believe that the providers have insufficient funding. As the hon. Gentleman said, there has been a problem with the debt management plans. In fact, a review of the fee-charging debt management companies found that 60% of their clients were put in a worse position. That cannot be allowed to continue, and I am pleased that the FCA is cleaning up the market. However, I worry about what will happen to people who come off debt management plans. They took a big step to deal with their debts—and facing up to the fact that you cannot pay your bills is a difficult decision to make—and went to a provider. Now they have been told, “Actually, your provider was not providing a good service. Go and find somebody else.” I worry that those people will not look around, and I hope that the Minister will look at ways of promoting opportunities for them to go to other providers.

Local Government: Ethical Procurement

Gary Streeter Excerpts

Tuesday 15th March 2016 Westminster Hall

[Several hon. Members rose—]

[Mr Gary Streeter (in the Chair)]

Order. Nine colleagues wish to catch my eye and have roughly 40 minutes in which to do so. Perhaps I could impose a voluntary restraint of four minutes each, and we will see how we get on.

--- Later in debate ---

[Dr Matthew Offord (Hendon) (Con)]

It is a great pity that this has been promoted as a debate about local government when in reality it is just a thinly disguised attack against the legitimate and democratic state of Israel. Why has there been no discussion about the repression in other middle eastern nations such as Saudi Arabia and Iran? Why does the Boycott, Divestment and Sanctions organisation spend all its time demonising Israel and ignoring Hamas and Hezbollah as they pour rocket fire down on Israel? The premise of the debate has more to do with cheap political point scoring than with the lives of individuals. Palestinian workers would risk losing their jobs if such actions by BDS were successful and economic sanctions were directed against Israeli firms that employ them. [Interruption.]

[Mr Gary Streeter (in the Chair)]

Order.

[Dr Offord]

Those Palestinian workers are paid on average three or four times more than they could earn elsewhere. About 500 Palestinians lost their jobs in October 2015, when international pressure from the BDS movement led to the closure of SodaStream’s factory in Ma’ale Adumim. That demonstrates that the BDS movement only seeks to harm Israel, with little consideration of how its actions will affect the livelihood of Palestinians, even though Palestinians employed by Israeli companies enjoy substantially higher wages and improved living conditions than those employed elsewhere.

--- Later in debate ---

[Dr Offord]

No. In fact, the BDS movement has an anti-Semitic foundation. [Interruption.] No. One of its co-founders is on record as rejecting the right of a Jewish state in Israel—[Hon. Members: “Give way!”] No.

[Mr Gary Streeter (in the Chair)]

Order.

[Dr Offord]

Indeed, reports of anti-Semitic attacks being perpetrated in Europe can be directly linked with the hateful rhetoric espoused by many BDS campaigners, and BDS founder Omar Barghouti has repeatedly expressed his opposition to Israel’s right to exist as a state of the Jewish people. But most telling of all is that the Palestinian Authority themselves do not support a boycott.

[Dr Offord]

No.

[Mr Gary Streeter (in the Chair)]

Order. A point of order from Andy Slaughter. Let us hope it is a point of order.

[Andy Slaughter]

The subject of this debate is local government and ethical procurement. We have got so far from that subject as to be ridiculous, in my opinion.

[Mr Gary Streeter (in the Chair)]

If the hon. Member for Hendon (Dr Offord) was out of order, I would have called him out of order. It is actually the point that has been raised by the opening speaker, so I call Dr Matthew Offord.

[Dr Offord]

Thank you, Mr Streeter, for your wise words.

In December 2013, Mahmoud Abbas stated that, with the exception of settlement goods, the Palestinian Authority do not support a boycott on Israel. He said that

“we do not ask anyone to boycott Israel itself. We have relations with Israel, we have mutual recognition of Israel.”

I and my constituents welcome the Government’s announcement of new rules to curtail silly left-wing town halls and all publicly funded bodies from adopting politically motivated anti-Israel boycott and divestment campaigns.

[Dr Offord]

Apology accepted. The BDS movement says that having such interests makes companies “complicit in war crimes”, as they help to entrench the occupation and settlements. If that was the case, why did not BDS and its supporters seek a ban on British goods and services when Tony Blair decided to invade Iraq? The simple reason is that British goods and services had no influence over British foreign policy, as indeed academics and universities and goods and services in Israel have no influence over Israeli foreign policy.

What Labour and the Scottish National party failed to achieve in the general election—a majority or coalition Government to decide foreign policy—we will not let them seek to achieve at local level. Such policy is made in this House. There is no place for that in town halls, whose duties are simply to deliver local services and not to make foreign policy.

[Mr Gary Streeter (in the Chair)]

I call Owen Thompson —who is not present. I call John Mc Nally.

--- Later in debate ---

[Richard Burgon]

The hon. Gentleman’s comments from a sedentary position and when he stood up to speak. His comments were an affront to local democracy.

[Mr Gary Streeter (in the Chair)]

As we move towards the Front Bencher’s speeches, may I thank you all for your co-operation in getting us through in time for the wind-ups?

--- Later in debate ---

[Jonathan Ashworth]

It is not for me to criticise Mr Speaker and his team of Deputy Speakers on the selection of urgent questions. That is not in order—is it, Mr Streeter?

[Mr Gary Streeter (in the Chair)]

Certainly not.

[Jonathan Ashworth]

But I have a suspicion that Members requested urgent questions.

Bank of England and Financial Services Bill [Lords]

Gary Streeter Excerpts

Monday 1st February 2016 Commons Chamber

[Mr Gary Streeter (South West Devon) (Con)]

I, too, will be brief, as I wish to catch the eye of the occupant of the Chair during the next debate.

I am pleased to be able to support a Bill that, in my view, takes our regulatory system in the right direction. However, the Bill does not deal only with the Bank of England. It also contains clauses relating to related personal finance matters, and I want to focus on those.

Last week, I met colleagues in the cross-party debt management working group to discuss the growing problem of consumer debt, which currently stands at 142% of overall household income. I believe that the Bill provides an opportunity to effect what would be a small legislative tweak to bring about an urgently needed change in the sector. The Minister gave me some hope that she was thinking along the same lines when, towards the end of her speech, she spoke of taking more action on behalf of consumers, but we shall have to see what happens in Committee.

Debt management is becoming an increasingly inefficient industry, and consumers are getting a bad deal more often. Some debt management schemes charge the debtor, while others are free to the debtor and charge the creditors. The quality of service offered by debt advisers varies greatly, as do the costs. As we know, most people, when they reach the point of desperation and realise that they have a problem and need help, do not sit down and research the sector in depth for 24 hours, but opt for the first helper who crosses their path. If it turns out to be a provider whom they must pay, that is often because they do not know that free help is available.

Free debt management plans, such as those offered by organisations such as PayPlan and Christians Against Poverty, may not be the solution for everyone, but their availability to those who can and want to repay their debts is important, and is becoming increasingly threatened. “Fairshare operators” such as those whom I have just mentioned have arrangements with creditors providing voluntary contributions that allow services to be provided for consumers without charge. Fairshare revenue, which is paid as a percentage of the debt repayments, has reduced as a consequence of a fall in consumers’ average disposable income, which has restricted the capacity to take on more economically viable cases. Those operators will ultimately have to reduce the number of new cases that they take on as funding become increasingly unsustainable.

Unless we correct the position, consumers who get themselves into difficulty will inevitably need to increase their use of providers who charge high fees for the same service, which may amount to up to half the debt repayment. If the plan provides for someone to pay £70 a month, a further £35 may have to be paid to the debt management plan company rather than reducing the debt. That significantly increases both the time and the cost involved in solving the problem. One solution would be the introduction of a new system—as the Minister knows, a small amendment has been tabled to this effect, which could perhaps be considered in Committee —whereby all debt advice operators must offer a sustainable debt management plan that is free to the consumer and funded by creditors at a lower cost than is the case at present.

[Louise Haigh (Sheffield, Heeley) (Lab)]

It is vital that we tackle the debt advice and lending industries. We have a fantastic “buddy” in Sheffield called Sheffield Money, which is trying to do just that. However, the Office for Budget Responsibility has estimated that the measures in last year’s Budget will increase unsecured individual lending by £40 billion by 2020. Does the hon. Gentleman share my concern about that?

[Mr Streeter]

Regardless of the amount by which personal lending increases, what is important is the availability of help for those who get themselves into difficulty, and we may see an increase in the number of people in difficulty if interest rates rise towards the end of the year. I know that that would cause pain to a great many of our constituents, so it is important to get the system right now.

With a supportive FCA framework already in place, a fairly minor amendment to the Bill could effectively set a fee structure that would activate the provision of free debt management plans by authorised firms. I hope that my Front-Bench colleagues agree that action is needed soon, and that the Bill represents a timely vehicle for the necessary change.

I believe this to be a truly cross-party issue, and that the Bill needs to be amended to give people in debt more security and access to free, high-quality plans that help them to manage their finances. If interest rates do go up any time soon, the debt management sector may be called on to give even more support than it provides now, and this is therefore a good time to strengthen the system.