Connaught Income Fund

Debate between Harriett Baldwin and David Nuttall

Tuesday 12th January 2016 Commons Chamber

[Harriett Baldwin]

I have so little time.

The FCA is now conducting formal investigations into the activities of the two operators of the fund, Capita Financial Managers Ltd and Blue Gate Capital Ltd. My hon. Friend questions the length of time that the FCA is likely to take in order to conduct and conclude its investigations. Although it is too early to give a reliable estimate of the likely time frame for their conclusion, the FCA has assured me that it intends to progress the investigations efficiently and effectively. The length of time it will take to complete the investigations is affected by, among other things, the level of co-operation received from those under investigation and any related third parties.

As the FCA is in the process of carrying out its investigations it is, of course, not possible to comment on their likely outcome. The FCA is unable to provide any comment on what the level or form of compensation to investors may be if it is found that the operators have contravened any regulatory principles or rules.

[Mr David Nuttall (Bury North) (Con)]

Will my hon. Friend please give way?

[Harriett Baldwin]

I have so little time, but I will try to make progress and then give way.

The FCA is an independent, non-governmental body, so I am sure my hon. Friend the Member for Aberconwy will agree that for me to interfere in its investigations in any way would not be appropriate.

My hon. Friend raised the question of whether the Financial Ombudsman Service has indicated a pre-determination to find against independent financial advisers, regardless of the allegations of fraudulent behaviour within the fund. It is important to note that like the FCA, the Financial Ombudsman Service is an independent, non-governmental body. It provides an independent dispute resolution service for consumers with individual complaints against financial services companies. In view of this independence, it would not be appropriate for the Government to comment or intervene in the Financial Ombudsman Service’s work on complaints against advisers who sold the Connaught Income Fund.

However, although I cannot provide comment on these details of these investigations, I am assured that the FCA has put considerable resources, time and effort into trying to achieve a good outcome for the investors affected by the failure of the fund, and that it continues to act in the best interests of the investors.

--- Later in debate ---

[Harriett Baldwin]

The hon. Lady has been assiduous in tabling a number of parliamentary questions. I think I am right in saying that they have been put on the record in the Library. I encourage other hon. Members to have a look and see the record that she has managed to get from the FCA in writing.

I am sure that other hon. Members who have constituents who have suffered losses in the Connaught Income Fund will welcome the reassurance that the FCA is doing its utmost to secure the best possible outcome for investors, and that they will support the FCA in its current investigations.

[Mr Nuttall]

I appreciate that the Minister does not want to comment, but given the strength of feeling this evening, will she please pick up the phone in the morning to Tracey McDermott, the interim head of the FCA, and make it absolutely clear that we want some action on behalf of our constituents and we want this matter sorted out now?

[Harriett Baldwin]

I am sure my hon. Friend would not want me to interfere in a number of different FCA matters, but I am quite sure that the FCA will have seen the strength of feeling in the Chamber this evening.

I have one minute left so I will take a quick intervention.

Oral Answers to Questions

Debate between Harriett Baldwin and David Nuttall

Tuesday 21st July 2015 Commons Chamber

[Harriett Baldwin]

We can see the disarray in the hon. Gentleman’s personal life, given that he walked through the Lobby to support one leadership candidate last night, while publicly backing another who abstained. He mentions the importance of exporting to emerging markets. I can confirm that UK exports to China have increased by 72% since 2010, while exports to South Korea—many of them in the creative industries—are up by 148% and to Hong Kong by 63%.

[Mr David Nuttall (Bury North) (Con)]

Does my hon. Friend agree that British business would find it easier to export to the rest of the world if it did not have to comply with the red tape imposed on it by Brussels bureaucrats?

[Harriett Baldwin]

My hon. Friend is an example to Opposition Members in the consistency of his political viewpoint. He is right to point out that the euro area has indeed been sluggish. One of the reasons we are experiencing slow growth in the euro area is that our goods exports have been falling to that part of the world. That is why it is so important that we refocus British businesses on exporting to some of the faster growing parts of the world.

Royal Bank of Scotland

Debate between Harriett Baldwin and David Nuttall

Thursday 11th June 2015 Commons Chamber

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. Mr Gardiner, you must come back and wait for the next Member to speak. You know the courtesies of the House. Members must not do that. It is all about respect, and we must have tolerance as well, on all sides.

If the Minister has finished her answer, I will call David Nuttall.

[Mr David Nuttall (Bury North) (Con)]

The Minister experienced the singular disadvantage of being my Whip in the last Parliament. I am pleased to welcome her to her new position.

I regard this share sale as a tremendous opportunity for the Government to widen share ownership, just as the Government of the late Lady Thatcher did in the 1980s. May I urge the Minister to make as many shares as possible available to small investors, to make the application process as simple as possible, and to set the minimum level as low as reasonably possible?

[Harriett Baldwin]

I welcome my hon. Friend back to this place. Let me say what a joy it was to be his Whip for so many years. One always knew where one stood with him, and that also applies to the very sensible question that he has just asked. I think, though, that he needs to hold his horses in relation to RBS. As he will know, the manifesto on which he stood committed us to a wide retail offer of Lloyds Bank shares at some time in the not too distant future, and we will be dealing with that sale first.

School Admissions Bill

Debate between Harriett Baldwin and David Nuttall

Friday 7th November 2014 Commons Chamber

[The Lord Commissioner of Her Majesty's Treasury (Harriett Baldwin)]

It is a great honour for me to respond to the Bill on behalf of the Secretary of State for Education, who specifically requested that I do so. I thank my hon. Friend the Member for Christchurch (Mr Chope) for raising what is a very important issue. His constituents in Christchurch and Mudeford are fortunate to have as their MP someone who is a doughty champion of local issues on their behalf. We heard evidence of that in his opening remarks; he has already achieved a fantastic result for his constituents, Mr and Mrs Amey. I am sure they are delighted that their son, George, has been able to join his sibling at the Mudeford junior school, and I am pleased to hear that that constituency case was resolved on appeal.

I must also pay tribute to my hon. Friend for being legendary in this House for using the vehicles available to all Back Benchers in the form of private Members’ Bills to raise substantial and important issues on behalf of his constituents. Even today he has demonstrated his ingenuity in this regard by having not just this Bill on the Order Paper, but several further Bills: the Illegal Immigrants (Criminal Sanctions) Bill, whose Second Reading debate was adjourned on 24 October; the House of Lords (Maximum Membership) Bill, which he hopes will have its Second Reading today; and the EU Membership (Audit of Costs and Benefits) Bill, which is also due its Second Reading. That is just a small sample of the various different Bills on important issues he has been able to raise on behalf of his constituents through his great knowledge and understanding of parliamentary methodology.

As my hon. Friend said, the Bill before us is fairly short even by the standards of brevity we often see with private Members’ business. In its two short clauses it makes

“provision to ensure that pupils with a parent with a terminal or seriously disabling illness receive priority in the admissions process to maintained schools in England.”

The word “England” is used because my hon. Friend makes very clear in his Bill that his proposed changes would extend to England only. It is important to highlight that, as it shows how much proposed legislation, particularly on education, now comes forward that covers only England. I know he shares my enthusiasm for ensuring that we as a Parliament are in future able to ensure that those who represent English constituencies, such as Christchurch, can carry forward legislation that applies to England only.

I would like now to set out the Government’s views on the Bill before us. We believe my hon. Friend’s proposals are already covered by the existing provisions in the statutory schools admissions code and its supporting legislation. I have with me a copy of that code, published in February 2012, and I would like to draw his attention to paragraph 1.16, as it is important that we look at exactly what the code currently says. This effectively gives some discretion to local authorities but encourages them to take into account social and medical need in a situation such as the one he so eloquently described, where a particular set of circumstances needs to be taken into account.

Paragraph 1.16 of the school admissions code states that, if admission authorities decide to use social and medical need as an oversubscription criterion, they

“must set out in their arrangements the criteria against which places will be allocated at the school”.

They must state how they will define the need and give clear details of any supporting evidence that will be required, such as a letter from a doctor or social worker. They must then make consistent decisions based on the evidence provided. In the example given by my hon. Friend, I believe it would have been possible for Mr and Mrs Amey to provide that level of medical detail in order to support the case of their son, George.

As I have said, the school admissions code was published in February 2012, and the Government consulted on further, limited revisions to the code this summer. I note that one of the respondents to the consultation was my hon. Friend’s own county council. He did not respond to the consultation in person, however, and I regret to tell him that it closed on 29 September. I confess I do not have a copy of the response of Dorset county council children’s services in front of me, but evidence will be available on the Department for Education’s website. I would be happy to let my hon. Friend know what his county council’s response was, if it did not send him a copy at the time, in order to reassure him that it is engaging fully with the Department and is keen to ensure, as he is, that his constituents are able to access their preferred school.

[Mr Nuttall]

My hon. Friend mentioned the fact that the Government carried out a consultation on the content of a revised code between 22 July and 29 September. Given that the Bill was ordered by the House of Commons to be printed on 7 July, which I think would have been the date of its First Reading, will she tell us whether the consultation took its content into account?

[Harriett Baldwin]

I thank my hon. Friend for his pertinent question. I understand that the Bill received its First Reading earlier this year. One would like to think that, although the views expressed in the Bill were not formally a part of the 444 responses to the consultation, they would none the less be taken into account by the Department. I am sure that my hon. Friend the Member for Christchurch will also have sent a letter on behalf of his constituents under the previous Secretary of State. The 444 responses are listed in the back of the Government document. I looked through it earlier to see whether the Bill was included in the responses, and I can confirm that it is not specifically mentioned in the Government’s documentation. However, he has used the mechanism of this proposed legislative change to make his views known.

I can summarise the results of the consultation for my hon. Friend. They have resulted in the Government proposing specific, limited revisions to the admissions code. As I have said, 444 written responses were received by 29 September, and the Government have held discussions with interested groups. The hon. Member for Cardiff South and Penarth (Stephen Doughty) asked whether discussions had taken place with people with specific caring responsibilities. Having looked through the list of 444 responses, I note that none of the organisations stood out as the kind of organisation that he would put into that category. I can assure him, however, that discussions are ongoing with all the interested groups with a view to meeting their needs for the admission code. I hope that that answers his question.

The overriding aim of the code is to ensure that admission authorities have clear, objective and fair oversubscription criteria. It is for the authorities themselves to decide which criteria to adopt, but the code sets out the most common ones, including giving priority based on social and medical need. I have drawn the House’s attention to the fact that that is set out in paragraph 1.16 of the code.

The Government want children to be able to attend a school of their parents’ choice whenever possible but, when a school receives more applications than it has places available, we believe that those places must be allocated in accordance with the school’s published oversubscription criteria. I am pleased to say that the vast majority of parents are offered a place for their child at their preferred school. In the most recent entry year, 2014, 86.5% of parents in England were offered a place at their first preference school. In addition, 95.6% of children—so nearly 97%—were offered a place at one of their top three preferences, and 96.6% were offered a place at any of their preferred schools.

The Government have just agreed to some specific, limited revisions to the code. They are designed to improve the fair and open allocation of places and, it is worth emphasising, to support fair access for the most disadvantaged children and provide additional clarity to some provisions that had not been found to be completely clear. The limited time scale did prevent more substantial changes from being considered but, subject to parliamentary approval, which we hope is imminent, the revised code will come into force on 19 December.

Antarctic Bill

Debate between Harriett Baldwin and David Nuttall

Friday 18th January 2013 Commons Chamber

[Mr Nuttall]

I am grateful for that intervention, because it is important not to look at the Bill just in financial terms. We need to look at it more widely. The whole purpose of the Bill is to protect the environment of the Antarctic continent. We cannot assess the value of the Bill just in pounds, shillings and pence, as we used to say—I suppose we would say “pounds and pence” nowadays. We have to look at the overall impact of the Bill and ask whether it is achieving what it set out to achieve, which is to protect the environment of the Antarctic. The thrust of the Bill is to bring into UK law the environmental protection provided by the protocol on environmental protection to the Antarctic treaty, so the analysis should be wider than simply a financial analysis.

[Harriett Baldwin (West Worcestershire) (Con)]

Further to an earlier intervention, can my hon. Friend explain exactly how we would measure the benefits under his new clause?

[Mr Nuttall]

That is a very good point. It would be up to the Secretary of State at the Foreign Office to consider what would be the best way. My view is that we would have to consult the scientists who are there now, at the Antarctic bases, and ask the travel companies that want to carry out tourism in the area. We would also need a wider consultation, because others may be put off from carrying out scientific experiments or visiting as a result of the Bill. We are therefore talking not just about those who are doing good, but about those who might be put off, and whom we will have to contact in other ways. In effect, there might have to be a call for evidence towards the end of the three-year period, so that we can assess whether people have been put off—although I will mention that later.

--- Later in debate ---

[Mr Nuttall]

The reality is that the duty in clause 5

“to take preventative measures and make contingency plan”

is at the heart of what the Bill is all about. It makes sense for someone visiting the Antarctic region to do some forward thinking and sit down with a pen and paper to produce a plan relating to what might happen if something goes wrong, bearing in mind that the general thrust of environmental protection legislation in this area is to leave the Antarctic environment completely pristine. Nothing should be left behind at all.

[Harriett Baldwin]

My understanding is that as a result of this Bill, which I sincerely hope will become an Act during today’s proceedings, we will preserve the British heritage in Antarctica, including the historic huts built by Captain Robert Scott and Sir Ernest Shackleton. Surely such heritage is priceless; for the purposes of the new clause, how can we put a price on that?

[Mr Nuttall]

I am grateful for my hon. Friend’s intervention. I think I made it clear in response to an earlier intervention that although we will need to assess the financial costs stemming from the Bill, I anticipate that the review should go wider than the financial effects alone. As she rightly says, we cannot put a price on the Antarctic environment. We need to look at much wider matters; indeed, she touched on the historic sites on Antarctica. I shall return to this issue when we look at my amendment 1, which is designed to protect “Historic Sites and Monuments” that are indeed part of this nation’s heritage and need protecting.

Independent Financial Advisers

Debate between Harriett Baldwin and David Nuttall

Wednesday 20th October 2010 Westminster Hall

[Harriett Baldwin]

My hon. Friend, who is also a member of the Treasury Committee, makes an extremely important point, which I will mention in a moment.

The impact of the proposals has been brought to my attention by a range of independent financial advisers, who are also constituents. Acting independently of one another, they all came to see me in my advice surgeries. Under the RDR proposals, each IFA should pass a set of exams and then spend at least 35 hours per annum on continuous professional development. Hon. Members should note that the requirement is 35 hours and that 34 hours would not be acceptable. IFAs also need to obtain a statement of professional standing from an accredited body. Someone who, today, is a qualified and approved IFA but who does not meet those requirements by 31 December 2012, will no longer be able to practise his or her profession, despite many years’ experience.

[Mr David Nuttall (Bury North) (Con)]

Is not the problem with the RDR that many of our constituents will be left without appropriate financial advice because of the introduction of the new rules? Often it is the most experienced IFAs, with the most years of experience, who will be forced out of the profession.

[Harriett Baldwin]

My hon. Friend makes a good point, which I am about to make myself, so I thank him for his helpful intervention.

Advisers will have to charge explicitly for their services and will not be able to accept commissions. Oxera, the market research firm employed by the FSA to assess the costs and benefits of the changes, expects the net present value of the compliance costs to the industry to reach between £1.4 billion and £1.7 billion. Worryingly, the estimate in 2008 was £600 million. That cost will be passed directly to consumers. The latest estimate represents an astonishing 180% increase.

Oxera expects the increase in compliance costs to be passed on to consumers, so they will pay for the changes. Charges will be higher, so sales of financial products will decline. The majority of adviser firms expect a reduction in turnover. Consumers with smaller amounts to invest are much less likely to seek advice if they have to pay for it explicitly. Smaller firms of IFAs are the most likely to exit the market.