Financial Transaction Tax and Economic and Monetary Union

Debate between Greg Clark and Alison Seabeck

Tuesday 18th June 2013 Commons Chamber

[Greg Clark]

My hon. Friend makes a powerful point. That is precisely why we are challenging the legitimacy of the proposal. The enhanced co-operation procedure is available to member states provided it is legal and compliant with the treaty, and our view is that it is certainly not. In particular, the extra-territorial effects—exactly what my hon. Friend is concerned about—are contrary to article 327 of the treaty on the functioning of the European Union, as it fails to respect the competences, rights and obligations of the non-participating member states. Furthermore, the decision to proceed with the FTT has extra-territorial effects for which there is simply no justification in customary international law. The Select Committee has been prominent in its scrutiny of that, and no doubt its Chair will have something to say about it.

We should consider the economic effects of the tax as well as the legal issues. What we are discussing is obviously very important to the economy of the United Kingdom, where 2 million people are employed in financial and related professional services. That sector has created a trade surplus for the country at a time when I think all nations should be trying to increase their trade, and its activities are highly integrated with those in other EU countries. Our best estimate is that 30% of over-the-counter derivatives trading in London involves a counterparty in a proposed FTT zone country; similarly, about 30% of investors in UK gilts are located overseas, which means that the FTT is even likely to affect UK Government funding costs.

However, it is not only the financial sector that would be affected. The European Association of Corporate Treasurers, which represents those who manage companies' finances throughout Europe, has said, very explicitly, that the FTT

“will fall on companies in the real economy, and compound the negative effects of the financial crisis.”

In this country, the CBI agrees.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

What would be the implications of the UK’s rejection of the FTT? Would the Government raise the bank levy rate for what I believe would be the sixth or seventh time?

Localism Bill

Debate between Greg Clark and Alison Seabeck

Monday 7th November 2011 Commons Chamber

[Greg Clark]

I hope to convince the hon. Lady when I say more on that in a few minutes. As we are considering Lords amendments, I will reflect on the conclusions that were drawn after extensive debates on all these issues in the House of Lords and what its settled view was. Lord Howarth of Newport, a Labour peer, said:

“Like other noble Lords I do not think that it is appropriate to attempt a full definition on the face of primary legislation because… the right place for that is guidance.”—[Official Report, House of Lords, 31 October 2011; Vol. 731, c. 1078.]

The Opposition spokesman, Lords McKenzie of Luton, in summing up, said:

“We accept that definitions are not going to be included in the Bill but I hope that at least we shall be able to get very strong assurances that there will be full definitions in the NPPF.”—[Official Report, House of Lords, 31 October 2011; Vol. 731, c. 1076.]

At the end of the debate, he said that he was happy to withdraw the same amendment because my noble Friend Baroness Hanham had

“given the strongest degree of reassurance I have heard to date on the issue.”—[Official Report, House of Lords, 31 October 2011; Vol. 731, c. 1088.]

A view was reached in the House of Lords on the basis of assurances that my noble Friend gave. I will not quote from some of the other reflections, but some colleagues there said that this went even further than they had expected.

In answer to the hon. Member for Stoke-on-Trent North (Joan Walley), the Government are committed to a clear definition of sustainable development and think that policy is the right place for it. I have said clearly that we have no difficulties with the 2005 definition, which I think is ably reflected in the amendment. Hon. Members will know that I cannot pre-empt the consultation on the NPPF, but in all the deliberations we have had on the Bill my assurances about the Government’s good faith have always been reflected and brought to a final conclusion. I hope that Opposition Front Benchers will bear that in mind.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

I am sorry to say that the frustration I felt in Committee is now overflowing. The Minister is talking about pre-empting things, but surely by having legislation before he has the policy he is pre-empting the whole process. Everything is back to front. How can we legislate without seeing the detail of the NPPF in its final form?

[Greg Clark]

That was considered in the House of Lords. These things have always been captured in policy. I could not have been clearer when I said that we have no difficulty with the 2005 strategy or its wording. A cogent case has been made—let me put it that way—for expanding and strengthening the definition in the NPPF. I hope that that demonstrates, on the basis of this House’s experience of the scrutiny of the Bill and the commitments the Government have made, that there is no difference in our commitment to the matter. Indeed, I have expressed a personal view that I think we could go a little further than the 2005 strategy. We will reflect on these contributions in the consultation on the NPPF and respond in due course.

Let me say something about neighbourhood planning, because from the start we all agreed on our ambition to give communities greater opportunity to provide for a vision of their future at a level below the local planning authority. We had some debate about whether it should apply only in parished areas or whether it should be available to non-parished areas, and there was again a degree of consensus on the idea that it should be available to those parts of the country, including the place to which my hon. Friend the Member for Cleethorpes (Martin Vickers) referred, where there was no appetite for a town council but where, nevertheless, there might be an appetite for a neighbourhood plan.

Oral Answers to Questions

Debate between Greg Clark and Alison Seabeck

Thursday 27th October 2011 Commons Chamber

[Greg Clark]

A visit to the English riviera is an enticing invitation, and I will be delighted to go there. My hon. Friend is right to say that connectivity is a concern for all coastal communities, and I know that he is waiting for a decision on the south Devon link road. I cannot pre-empt that, but I think I will go by train this time to avoid any delays.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

Will the right hon. Gentleman place in the Library a copy of the advice he received from BIS officials—not DCLG officials—on the historical disadvantages that seaside towns and cities face, particularly those relating to access and business failures? Clearly the advice was not forceful enough, because neither Torbay nor Plymouth was successful in this round of bids for local enterprise zones, as he well knows.

[Greg Clark]

As the hon. Lady knows, we have had discussions about Plymouth. I very much hope that all the representatives of Plymouth will join in putting together an area to attract business that is very much in keeping with the enterprise zone proposal. Of course I will put together a package of the research and make it available to her.

Oral Answers to Questions

Debate between Greg Clark and Alison Seabeck

Thursday 25th November 2010 Commons Chamber

[Greg Clark]

We have made a lot of progress already. My hon. Friend is right that localism involves there being greater control of resources locally. A further set of measures will be considered in a review that will start in January, and I will make sure that his proposal is considered in that.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

The Minister for Housing and Local Government was not in the House on Monday to answer questions on the housing consultation paper so, while we are on the subject of devolving powers, may I ask his colleague about this? The Government have repeatedly said that they will not allow social landlords to change the rights of existing tenants, yet question 13 of that consultation leaves the door wide open for them to do exactly that in the future. Can this Minister give the House a personal guarantee that the Government will not now or in the future permit changes to the rights of existing social tenants?

[Greg Clark]

Yes.