European Union (Withdrawal Agreement) Bill

Debate between George Howarth and Stephen Doughty

Committee stage & Committee: 1st sitting: House of Commons & Committee: 1st sitting
Tuesday 7th January 2020 Commons Chamber

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I thank you, Sir George, and the many Members who have made contributions today. Some really important points have been made on all the amendments on this crucial subject, which many of us who served on the Home Affairs Committee in the previous Parliament examined in great detail. The Minister gave a rosy depiction of how the scheme is working and how everything will function. Of course, we would all like to see people register for the scheme and get the right information, and we would all like to see more digital systems that work for everybody. The reality, though, is somewhat different, as those of us who have regular daily experiences with the immigration system on behalf of our constituents, and who have seen the many pieces of evidence that we took on the Home Affairs Committee, recognise.

The amendments that have been tabled, including by my party’s Front-Bench team, which I support, are there to improve the system and ensure that it actually delivers the rights that were promised to EU citizens and EEA citizens who have been resident in this country for many years and who have, as many have said in this debate, made huge contributions to our communities and to our country as a whole. Certainly in my own constituency, the contribution of EU citizens over many decades has been immense. Over the past few years, many constituents have come to me with concerns about the scheme, including those that are reflected in the amendments that many of us are supporting this evening.

We are not scaremongering if we look at the record of the Home Office and its continued failures on a series of issues. We have only to look back to 2017, when the Home Office sent letters to 100 EU citizens telling them that they had to leave the UK immediately—an episode for which the then Prime Minister, the right hon. Member for Maidenhead (Mrs May), had to apologise in 2018. Members of Parliament were sent letters about the importance of applying for the EU settlement scheme, even though they were not EU nationals. It was an extraordinary situation, which the then Home Secretary had to explain.

One has only to look at the regular monthly statistics from the Home Office to see the number of cases of wrongful deportations and wrongful detentions as a result of the hostile environment policy and as a result of mistakes and problems. That is why appeal rights are so crucial. If we look at the compensation pay-outs that are being made when the Home Office makes mistakes, we can see how much this is costing the Government. We have all those examples and, of course, the example of the Windrush scandal, which was so shocking and so shaming to our country. People who had contributed to our country over so many years were treated in such an incredible way. With all those examples ringing in our ears, we should be taking these issues incredibly seriously. I urge the Minister and the Government, and those in the other place when they are examining these parts of the Bill, to look seriously at ways in which this legislation can be improved, so that we can deliver on the commitments that have been made. I do not doubt the Minister’s intent. I am sure that he is sincere in wanting to provide EU citizens with the rights that they deserve, but the reality is often different.

I want to raise with the Minister the specific point about physical documentation. Of course we all want to see digitalisation; we all want to see more efficient systems. We all want to see a system where we can quickly get information—whether that is employers, housing providers or other providers of services—to ensure that people receive the things that they are entitled to under the law. But the reality is, as we all know, that these systems break down. There are mistakes in them and names are often rendered incorrectly. What is the back-up? What will happen when somebody is trying to apply for a house, access medical services, apply for a job or apply for an education that they are entitled to in this country and the system breaks down? The computer may say no, or the blue screen of death may come up on the computer. Whatever the problem, we all know that these things fail.

When we are talking about such a fundamental thing as the right to live, work and exercise rights in this country, which many EU citizens should have under this legislation and deserve, we have to ensure that there is back-up. We have our birth certificates and passports—physical documents for the most crucial aspects of our rights and citizenship rights in this country. I caution the Minister: when the mistakes happen—the inevitable breakdown, a cyber-attack on the system or the system becoming unavailable—what will happen to the people who get caught up in them? All those mistakes will generate not only a huge cost for the Government in rectifying them in due course, but great harm and concern to the individuals involved. Anyone who deals with the immigration system on a weekly basis, as many of us do, can point to myriad examples.

There is also the crucial issue of numbers, which the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald), who served with me on the Home Affairs Committee, mentioned. No exercise on this scale has been attempted before the registration of millions of individuals under this system. Problems are inevitably going to occur, not least when the Government themselves cannot tell us exactly how many EU and EEA citizens are lawfully resident in the UK. They also cannot tell us—this has been asked on a number of occasions—how many people they estimate will not have applied by the deadline that is now being put in place. I find it deeply worrying that the Government propose to implement a policy without even knowing the number of people that it is going to affect. We do not want to see the unlawful detentions and deportations of individuals that we have sadly seen in the past, nor the harm they cause to the individuals whose rights are affected.

This issue goes back to some fundamental promises that were made—not only by the current Prime Minister, but by the previous Prime Minister and by those who advocated leaving in the first place. The3million campaign, which has done so much good to highlight the concerns of those affected by these changes, rightly points out that it was made clear during the 2016 referendum that there should be

“no change for EU citizens already lawfully resident in the UK…EU citizens will automatically be granted indefinite leave to remain in the UK and will be treated no less favourably than they are at present.”

That was a clear promise and a solemn undertaking, and it is one that has been repeated by the Prime Minister and Ministers since. I have no doubt that the Minister intends these measures in good faith, but the reality of accessing the scheme, demonstrating those rights and being able to prove that they are being lawfully exercised will be very different. I think we will be picking up the pieces of this in years to come, so I urge the Minister to look carefully at these amendments.

[The First Deputy Chairman of Ways and Means (Sir George Howarth)]

I call Sir Desmond Swayne, who is known for many things in the House, not least his brevity.

Cardiff Coal Exchange

Debate between George Howarth and Stephen Doughty

Wednesday 20th April 2016 Westminster Hall

[Stephen Doughty]

If I may, I will not. We have limited time and I have already taken one intervention, but I might take another later if we have enough time.

The financial model that Mr Kenwright proposes to use for the building is the BPRA—business premises renovation allowance—scheme. That was introduced in the Finance Act 2005 and was intended to bring derelict or unused properties back into use. The scheme gives an initial allowance of 100% for expenditure on converting or renovating unused business premises in a disadvantaged area. However, the Chancellor of the Exchequer has announced the end of the scheme from the end of this financial year, after a raft of concerns, and investigations by Her Majesty’s Revenue and Customs.

The council has claimed to me that Signature Living has told it that it has secured an “approved £12 million” and up to a further £30 million. However, Lawrence Kenwright told me that only one of his previous schemes had received full approval from HMRC. I am deeply concerned. Given the investigations into these schemes in the past and the risk of their not being approved, where does the liability lie? We also ought to ask, given the current climate and concerns about tax avoidance and transparency: is this the right scheme to be funding this sort of building? Should we be assisting wealthy individuals and shadowy funds to avoid tax in this way? The Treasury has decided that it will end the scheme, which I think shows what it thinks of it.

The Financial Times reported on 14 July 2015:

“HM Revenue & Customs indicated it saw problems with arrangements involving BPRA, drawing parallels with abusive avoidance schemes, and a year later added them to its public ‘Spotlights’ list of arrangements it said taxpayers should avoid.”

A range of concerns were raised. The FT continues:

“Where tax relief was not granted to taxpayers before 2013, the Revenue has in most cases withheld it, said Mr Avient”—

he comes from UHY Hacker Young—

“‘The Revenue clearly saw a situation where certain structures were stretching the rules too far’...it has issued a raft of accelerated payment demands to repay disputed tax to BPRA scheme investors. These tax bills cannot be appealed.”

Interestingly, on 21 April 2014 the Liverpool Echo revealed the problems with the Stanley Dock regeneration scheme, funded in the same way. Builders were left unpaid; the council was left having to provide a significant amount of grant—multi-million pounds—and there was a complete lack of transparency. That involved another Liverpool company called Harcourt, which incidentally, as I said, was the previous preferred partner of Cardiff Council. The Liverpool Echo reported that it was

“surprisingly difficult to pin down the developers and owners”,

which I think exposes the difficulties and concerns about the transparency of these schemes and their solidity.

I also have concerns about what the building will be—what is the proposal on the table? We have heard about it being proposed as a hotel. It is clear that Signature Living is a hotel developer. I am not opposed to a hotel development and I am sure that many other people in the community are not, but it is still, as of this date, unclear what parts of the building will be used for what. At various times, in various meetings, we have been told of residential, part-hotel and normal hotel usage. In fact, Mr Kenwright suggested to me that it might be a third, a third, a third—or, as he put it, “as much as the council let me get away with”.

We need to be very clear—we need to know—before accepting or agreeing that this scheme is a good thing what the building will be used for. Tenants and businesses in the area and residents in the square—it is already a significant residential area—need to understand what will be there. Will there be lots of big parties coming there? Mr Kenwright has a hen and stag business in his hotels in Liverpool. Will lots of people be living there and will there be parking issues and all the other things associated with that? None of those schemes is necessarily wrong, but the public have a right to know what the building will be.

I come now to community benefits and issues. First, the Save The Coal Exchange campaign has listed a whole series of issues that it would want to be included in a section 106 agreement. It would want to see those outlined and agreed to. We have had promises of jobs and apprenticeships, although Lawrence Kenwright told me that the company would “bring their own people in”. Where are the clear assurances on jobs and apprenticeships?

Secondly, there are existing tenants—nearly 40 tenants —in the building. What assurances have they been given? They are deeply fearful that the council may step in, given its history, issue prohibition notices and see them evicted once building work starts. Where are the assurances for them?

We also have concerns about engagement with the local community in the square. There has not been serious consultation with local residents or businesses. Signature Living has been advertising major changes to Baltic House, home of the Wales Council for Voluntary Action. Is it aware of those; has it been consulted?

I have had an exchange of letters with the council about this matter and have had some assurances, but the letter from Neil Hanratty on 8 April confirms only that

“commitment to the above will be secured formally through the planning process”

and merely that Signature Living has “agreed in principle”. We should be having cast-iron guarantees for a building of this nature, with this kind of expenditure and the potential impact. These are really serious issues and we want to ensure that there is that community benefit, quite apart from all the other issues about access to the building.

Finally, heritage was one of the most positive aspects of the Signature Living proposal but, even so, there are concerns. In March 2016, the Victorian Society wrote to City of Cardiff Council officer Pat Thompson, copying in Neil Hanratty, saying that it had heard nothing from the council for 20 months and that

“the lack of communication from Cardiff Council is both disappointing and concerning… we are concerned that without close scrutiny, and clear direction from the local authority, aided and informed by a proper assessment…an acceptably sympathetic scheme, might…prove difficult to achieve. In 2013 and 2014 the Society was involved in consultations with Signature Living over its proposed hotel conversion, of Albion House, Liverpool, a Grade 2* Listed Building by Richard Norman Shaw.”

That building will, of course, be of interest to those of us in this Parliament. The letter continued:

“From our point of view the process was far from ideal. Plans were drawn up hurriedly and without any evidence of the sort of high quality, detailed heritage assessment a Grade 2* Listed Building demands. Perhaps unsurprisingly therefore, the conversion involved some alterations and additions that we as well as Historic England advised were unsympathetic and harmful. These were undertaken regardless, some seemingly prior to receiving the necessary consents… None of this is to suggest that Signature Living is incapable or indisposed to deliver a high quality sensitive scheme, rather it is to demonstrate that without proper guidance...in the form of a Conservation Management Plan and a structural survey, a less sympathetic and unnecessarily damaging conversion scheme is the likely outcome.”

I conclude by identifying a few key areas. First, the questions about the financial background are deeply concerning. What does the Minister think? I want Cardiff Council to be clear about its due diligence process in that regard, particularly on the sureties around the BPRA scheme, given the concerns that have been raised. What happens if that goes wrong? Who will bail this out? Who will deal with the financial consequences?

Secondly, on heritage and planning, there is a clear need for strict oversight from Cadw, the Victorian Society and others, for conservation management plans and for surveys, whatever developer comes in. Thirdly, we need guarantees in writing, not assurances that mean nothing, on the community issues and on access to the building. We need guarantees for the tenants of the building as it is, and we need an inquiry into the overall process over a number of years. The process has been deeply unsatisfactory and has involved the use of health and safety powers and the spending of public money in a deeply non-transparent way. We should put a halt to the proposal, re-engage with the community and other stakeholders and act in the national interest to save the coal exchange.

[Mr George Howarth (in the Chair)]

I put it on the record that I had no foreknowledge of what the hon. Member for Cardiff South and Penarth was going to raise. I raised some issues about one of the developments he mentioned on behalf of some constituents many years ago, and I would not want it to be thought that I had any prior knowledge that he would mention it, otherwise it might not have been appropriate for me to take the Chair today.