Oral Answers to Questions

Debate between Guto Bebb and Mark Tami

Wednesday 26th April 2017 Commons Chamber

[Guto Bebb]

I thank my hon. Friend for the question. She correctly says that Wales and Cornwall have a lot in common, not least in terms of language. Businesses in Cornwall should do the same as those in Wales: engage with the Department for International Trade; look at the opportunities to go on trade missions; and identify new markets. Opportunities are there for businesses from Cornwall and Wales, and we need to exploit those.

[Mark Tami (Alyn and Deeside) (Lab)]

What guarantees can the Minister give companies such as Airbus, which rely on British employees moving and working across Europe, when we leave Europe?

[Guto Bebb]

The guarantee we can offer to any company that wants to work across Europe is that this Government will listen to them and act on their behalf. We have absolutely no interest in doing anything other than fully supporting companies such as Airbus, which is such a key component of the economy of north-east Wales.

Oral Answers to Questions

Debate between Guto Bebb and Mark Tami

Wednesday 25th January 2017 Commons Chamber

[Guto Bebb]

It is very important to state that the industrial strategy in a Welsh context must be a partnership between the two Governments that Wales has—we have the UK Government and the Welsh Government—and Wales will succeed and prosper if those two Governments work together. I am glad to be able to say to the hon. Lady that in relation to skills for the energy sector, support for the car manufacturing sector and support for the steel sector, the two Governments are working together to ensure the best for Wales in terms of industrial strategy and developing new opportunities for the people of Wales.

[Mark Tami (Alyn and Deeside) (Lab)]

As the Minister has said, we have many important employers on Deeside—Airbus, Tata, Toyota—but we also have many companies in the supply chain that are very important. We must not only keep those companies post-Brexit, but encourage more to come in.

[Guto Bebb]

I agree entirely with the hon. Gentleman. Deeside is a great success story for the UK economy, not just for the Welsh economy. He is absolutely right that we need to build on that success by drawing in more investment, and that is why the Secretary of State and I will be holding a summit with the Department for International Trade in Wales in the very near future.

Employment in Wales

Debate between Guto Bebb and Mark Tami

Tuesday 27th January 2015 Westminster Hall

[Guto Bebb]

No, I do not think I will—I shall retaliate in kind. The hon. Gentleman had his opportunity.

[Mark Tami]

Will the hon. Gentleman give way to me?

[Guto Bebb]

Of course.

[Mark Tami]

Does the hon. Gentleman not agree that, even if we do accept that more jobs are coming in, we are also losing jobs? A few days ago, we had the announcement that 120 jobs were going at the Shotton paper mill. Although I welcome all jobs, replacing those quality, highly skilled jobs with minimum wage jobs is not the same thing.

[Guto Bebb]

I accept entirely that we would be disappointed to see job losses in any part of Wales. I know full well how the north Wales economy works, and a number of people who work in the hon. Gentleman’s constituency live in mine. People travel to work down the A55 corridor, whether that is from east to west or west to east. Even though the road makes that difficult, I often meet people who work in Chester or in Alyn and Deeside when I am out canvassing. I accept that any job lost is a concern, but it is important to remember that although the Labour party has been highlighting the doom and gloom, and saying that Wales will never recover from public sector job cuts, the number of jobs created in the private sector in Wales has far exceeded the number lost in the public sector.

In that respect, we need to respond to the slur made by the hon. Member for Vale of Clwyd regarding Government Members’ attitude towards public sector workers. I have never heard a Government Member criticise anybody who works in the public sector. The one simple point we have made is that we need to have fairness between those who work in the public sector and the majority—even in Wales—who work in the private sector. Do public sector workers have gold-plated pensions? No, they do not in terms of what they get out of their pensions, but in comparison with the situation for somebody in my constituency who is self-employed, “gold-plated” is a fair description. The changes the Government have brought in simply move the balance of pension contributions slightly from the taxpayer to the recipients of the significant pensions in the public sector. The Government’s changes on pensions are to be applauded because they have ensured that we retain a degree of support for those who opt to serve in the public sector, and that support is well beyond what is available to those who work in the private sector.

The hon. Gentleman should remember a simple point: even on trade union figures, the average public sector pension is about £8,000, and that is equivalent to a pension pot of roughly £120,000. If Labour Members do care about people in Wales, they should be aware that the average pension pot for somebody in the private sector in Wales is £30,000. Even the trade union figures still imply that people in the public sector have a fund that is four times more than that of somebody in the private sector, but I see no concern among Labour Members about the situation faced by the vast majority of Welsh workers.

It is important to highlight that Labour Members have said time and time again that there is concern about youth unemployment. What we have seen, however, is that there is a difference between what happens when Labour is in power and what Labour thinks happens when it is in power. In my constituency, for example, youth unemployment has fallen by almost 50% since 2010. That fantastic achievement is the result of this Government’s attitude that people are better off in work than not working. Under the previous Government, youth unemployment went up and the benefits system picked up the strain. Nobody who is young should be on benefits; they should be able to be trained and to get work, and that is exactly what we are seeing in Aberconwy as a result of the Government’s changes.

Transatlantic Trade and Investment Partnership

Debate between Guto Bebb and Mark Tami

Tuesday 25th February 2014 Commons Chamber

[Guto Bebb]

I accept that we must ensure that a treaty requires a level playing field for food producers. The Farmers Union of Wales and the National Farmers Union in Wales have certainly been very supportive of such efforts. Indeed, Hybu Cig Cymru, which promotes Welsh meat, has been to Washington in anticipation of the potential impact of the treaty on the Welsh food sector.

We need to make sure that there is a level playing field, but it is worth recalling the words of the Governor of Delaware when we were in America. That state is a huge producer of chickens, which it cannot export to the EU marketplace. He made a very fair point when he highlighted the fact that 96% of Members of the European Parliament have voted for a ban on American chickens, but that he had not met a single MEP visiting Delaware who said no to a club sandwich. When we talk about a safety issue, it is important that the issue is genuinely one about safety, not about a regulatory requirement that damages free trade.

[Mark Tami (Alyn and Deeside) (Lab)]

Is that not the key point? Without agreements such as this one, we will not have a level playing field, but will go backwards to having more barriers across the piece.

[Guto Bebb]

I could not agree more. It is a shame that my hon. Friend the Member for Richmond Park (Zac Goldsmith) is no longer in his place. On the regulatory burden in relation not to the food industry but to the automobile sector, which would undoubtedly benefit from a TTIP agreement, Jaguar Land Rover—a huge investor in our manufacturing base—has highlighted the regulations on airbags. It has to insert different panels and dashboards in its vehicles for the American market, because airbags in America have to work on the basis of people not wearing a seatbelt, while those in the European Union do so on the basis of people wearing a seatbelt. That leads to extra cost, and it is a disincentive for trade. We could certainly benefit consumers by dealing with such regulations, which seem to have no purpose whatever, except to add cost and possibly to create extra employment for health and safety experts on either side of the Atlantic.

Another scare story that I should mention is the one about these agreements bringing no advantage to consumers. Anybody who has listened to Which? would be hard pressed to conclude that no consumer would benefit from such a trade agreement. When people argue that consumers will not benefit from free trade, there is something important to bear in mind: I find it very odd that the very people who make that argument do so by sending me e-mails from iPads manufactured in China or from Samsung telephones manufactured in Korea. They are quite willing to use the advantages of free trade to communicate their concerns about free trade, which puts them in a very odd position.

Another key issue about which I am seriously concerned is how the national health service is again being used as a political football in this debate. I want to state on the record that nobody can outflank me in supporting the concept of a health service free at the point of use for those in need. Somebody whose family has needed the support of the health service, as mine has, would never not support the concept of a free health service. However, the mere concept that American companies accessing the health sector in the United Kingdom is somehow different from European ones doing so is very odd.

I simply do not get another of the arguments in relation to people being so concerned about the involvement of private companies in our health service. Ever since the instigation of the NHS in 1948, the most respected part of the health service has been the traditional GP surgery. That is a robust private sector initiative within the health service. The issue is not about whether doctors make a profit because of their work, but about whether they offer patients a good service. I would be very comfortable with American companies delivering medical services, provided that those services are of a very high standard, are in tune with United Kingdom regulations and, more importantly, are delivering good patient care. Surely that is the issue. It is a pedantic view that any private involvement is simply wrong. We need to challenge that view. We need to be honest about the way in which the private sector adds value to the health service. We should reject the use of the health service to attack the TTIP.

Interest Rate Swap Derivatives

Debate between Guto Bebb and Mark Tami

Thursday 24th October 2013 Commons Chamber

[Guto Bebb (Aberconwy) (Con)]

I beg to move,

That this House considers the lack of progress made by banks and the Financial Conduct Authority on the redress scheme adopted as a result of the mis-selling of complex interest rate derivatives to small and medium businesses to be unacceptable; and notes that this lack of progress is costly and has caused further undue distress to the businesses involved.

I am surprised to be back here 15 months after the first debate on this important issue. I appreciate the Backbench Business Committee—the Chair is in her place—once again offering time to debate it. The first debate made a significant difference. Prior to that debate, the Financial Conduct Authority and the banking sector were refusing to acknowledge that there was an issue that needed to be dealt with. A few days after the first debate, that changed and a pilot scheme was announced.

Members who have followed this issue carefully are aware that the pilot scheme found that approximately 91% of cases investigated between July 2012 and January 2013 had a technical mis-selling, so the process has highlighted the mis-selling of these products. The House should take some comfort in knowing that securing the second debate has also resulted in a significant concession from the banking sector. Members of the all-party group on interest rate mis-selling have argued long and hard that the redress scheme had a central flaw, which is that the technical redress for the mis-selling of interest rate swap derivatives and the consequential losses were linked within the redress scheme. That gave the banks in question a significant advantage, because small businesses facing heavy cash-flow problems were inclined perhaps, under the scheme as it stood, to accept an offer of technical redress without fighting hard over consequential losses, simply because they were desperate for the cash.

As a result of the announcement of this debate last week, HSBC said on Tuesday that it was separating the technical redress from the consequential losses, and other banks have followed. My first call today, therefore, is for the rest of the banks involved in the redress scheme to follow HSBC’s and RBS’s lead. It is several months too late, perhaps, but it is the right decision, and we want to see the other banks following.

[Mark Tami (Alyn and Deeside) (Lab)]

Does the hon. Gentleman agree that the FCA is still dragging its feet and that this has gone on for far too long? I am helping Ged Fitzpatrick, who has a care home in north Wales and who recently suffered a heart attack. I am sure that that had something to do with the stress of this process, which has gone on for far too long.

[Guto Bebb]

Bully-Banks surveyed its members and found that the health impact on them had been significant. I accept that the FCA still has ground to make up, but despite its stating in September that linking both payments was the right thing to do, I am pleased that yesterday it welcomed the decision to separate them. I would rather see a sinner repent, even late in the day, than no changes whatsoever.

Interest Rate Swap Products

Debate between Guto Bebb and Mark Tami

Thursday 21st June 2012 Commons Chamber

[Guto Bebb]

That is an important point. As many of these products were sold from 2006 onwards, many affected businesses are now watching the clock run down on their opportunity to take action. That crucial point should resonate within the Chamber and outside.

In addition to the two duties I have mentioned, advisers must also take reasonable steps to show that the client understands the product and the risks involved. The bank must also take steps to ensure that the product is suitable. Mr Jones was sold a product by RBS. I wrote to RBS on his behalf, and was shocked that, in one transaction, I could highlight seven breaches of conduct of business sourcebook regulations. I cannot take the time to go through all seven examples, but I shall give a few. For one, RBS never sought to quantify the termination costs for the swap, which is a pretty severe piece of negligence, in my view. Neither did it take reasonable steps to ensure that it was in possession of sufficient personal financial information about Mr and Mrs Jones, which is also a big issue. It did not take reasonable steps to ensure that they understood the nature of the risks involved or provide a suitability letter. These are breaches of COBS rules and should be taken very seriously. To break seven such rules in one case raises the question: what were the banks doing?

I can highlight a number of general mis-selling examples. In some cases, businesses have been provided with a product not suitable for them and products have been described as similar to fixed rate mortgages, as I have already mentioned. There are also numerous examples of no opinion analysis being provided, meaning that a business was offered one product alone. I challenge the banks to state that that was not because of commission issues.

[Mark Tami (Alyn and Deeside) (Lab)]

That is the key. Many businesses have contacted me about that very point. It was a case of, “Take it or leave it.” Only one product was offered, and obviously people who needed finance for their businesses took it, with the dreadful consequences we have seen.

[Guto Bebb]

I agree wholeheartedly with the hon. Gentleman.

Policing (North Wales)

Debate between Guto Bebb and Mark Tami

Tuesday 31st January 2012 Westminster Hall

[Guto Bebb]

It is interesting that the hon. Gentleman says that the increase in resources is necessarily the reason why North Wales police have performed well. The hon. Member for Clwyd South (Susan Elan Jones) said that higher police numbers equated to falling crime. It is tempting to say that that must be so, but during Labour’s time in office there was a significant period when the number of police officers in north Wales increased but crime increased and a period when the number of police officers declined and crime declined.

There is a perception that more officers working will have an impact on crime levels, but statistics from the Labour party’s period in office do not necessarily support that view. My view is that the use made of those officers is just as important as the number of officers. Similarly, getting rid of waste and double practices, such as having three areas in north Wales that did not work together, is just as important as the numbers.

The number of police officers in north Wales has been reduced by 108, according to statistics that I have seen from North Wales police, but the chief constable has also said that it is looking to recruit an extra 72 officers in the next financial year. There is a tendency for the Opposition to portray everything as bad and fragile, when in the year to September 2011 there was a 1% decline in the total number of crimes committed in north Wales.

It is dispiriting for officers in north Wales, who are working hard to try to deal with these issues, to be told that the police service in north Wales is failing, when we have seen a decline in police numbers.

[Mark Tami]

The hon. Gentleman mentions the morale of front-line officers, but what does he think of the constant attack by the Government on those working in the back office, as if they do no work whatsoever and can be dispensed with just like that?

[Guto Bebb]

Again, I am surprised by that comment, because throughout this debate I have heard Opposition Members saying that we must put the resources on the front line. There is a choice to be made. If the number of officers increased by 13% in the Labour years, is there a justification for an increase of 84% in non-police officer staff at that point? That question should be asked. This is not an attack, in any way, shape or form, on any individuals working within the system, but we need to ask whether an 84% increase in those numbers was justified, when the number of front-line police officers increased by only 13%.