Paris Climate Change Conference

Debate between Helen Goodman and David Mowat

Thursday 19th November 2015 Commons Chamber

[Helen Goodman]

I admire the hon. Lady for the energy she shows in this debate, but we have heard people in the sector say there is a problem—I will give a couple more examples—because 30,000 jobs are now being lost in small-scale solar and wind, which is very significant.

[David Mowat (Warrington South) (Con)]

I want to go back to the point about gas and coal because it really is not good enough to leave it where we have. If the world did what we have done and removed coal from the system, it would be equivalent to increasing the current amount of renewables in the world by a factor of five. To pretend that that does not matter is to mislead us all.

[Helen Goodman]

It is good to remove coal—there is no contention about that—but it would be better to replace it with more solar and more wind. That is the simple proposition I am making.

Bankers’ Bonuses and the Banking Industry

Debate between Helen Goodman and David Mowat

Wednesday 25th February 2015 Commons Chamber

[Helen Goodman]

My hon. Friend makes a powerful point. That is why people watching the debate will find it absolutely incredible that millions of pounds have been paid to bankers in bonuses.

I should like to come back to the central points in the motion. Pay should be a reward for good performance, but we have seen a disconnect between bank performance and the pay of many senior executives and traders. We have discussed whether or not there is improved accountability in the banking system. At the Dispatch Box, the Minister tried to persuade us that that was all sorted and that everything was fine and good. However, the argument that it was right for the Government to resist the EU cap on bonuses because if bankers did not receive bonuses they would just receive higher pay reveals that accountability mechanisms have completely failed. If those mechanisms were working properly, shareholders would be able to prevent that abuse and something that is in effect a loophole. [Interruption.] I thought that the hon. Member for Warrington South (David Mowat) would intervene, as that was a point that he made.

[David Mowat]

I thank the hon. Lady for encouraging me to speak. I agree with her. The issue is not about whether to have bonuses or not; it is about absolute levels of remuneration in banks. I do not understand why the Labour party is not trying to address that. There is a good point to be made about why Barclays needs 1,000 people who earn £1 million a year while other organisations do not. The only explanation in the end is that the market is not working properly, which is why we must have more challenger banks to compete that away.

[Helen Goodman]

The hon. Gentleman, if I may say so, makes a fair point. One of the regrets of Opposition Members is that not all the recommendations of the Parliamentary Commission on Banking Standards have been implemented. The weakness of the arrangements set up by the Government was illustrated only this week in the statement by Mr Gulliver, who now heads up HSBC. He said that he could not possibly be expected to know what his many thousands of staff were doing. If we are to have a proper accountability mechanism looking from the outside in at what the banks are doing, we need proper internal management systems; otherwise, the whole thing becomes meaningless. Mr Gulliver is therefore hoist by his own petard.

[Helen Goodman]

That is common sense, and that is why the right culture was not encouraged when the Chancellor toddled off to Brussels to defend high bonuses. That did not engender the kind of attitude that we want to see.

[David Mowat]

The hon. Lady made an important point about Gulliver and the management philosophy that he appeared to espouse. We could call it something pretty close to plausible deniability: “I don’t know what they’re doing in Mexico—it’s a long way away. I don’t know what they’re doing in Switzerland—we’ve only just bought it.” If that is the management model, that is a better advert for the banks being split up than the retail/investment dichotomy that we have spent so long discussing.

[Helen Goodman]

That is another good point from the hon. Gentleman.

What will our constituents think of the fact that last year we saw an increase in the level of bonuses paid by the banks? What is happening at the top of the banks is not the same as what is happening for the ordinary people whom we meet behind the counter. It does not seem reasonable that bonuses are high when we have had high-profile scandals with LIBOR and forex fixing and with the revelations about tax avoidance through Switzerland.

One thing that particularly concerns me about HSBC is the disconnect between the amount of time and energy the bank is clearly prepared to put into setting up special arrangements for its private clients overseas, turning a blind eye to aggressive tax avoidance, and its attitude to my constituents when it wanted to close the branch in Shildon. We have a serious problem with financial exclusion and the major banks are taking themselves out of the poorest communities, leaving them prey to the Wongas of this world. When I wrote to HSBC saying that that was very regrettable and would mean that there was no longer anywhere for people even to access cash in a town with nearly 10,000 citizens, it would not even give a contribution to the local credit union. That shows a degree of arrogance and a lack of social responsibility that I am sure every Member of the House would deplore. I see that even the Exchequer Secretary is shaking her head in disappointment at hearing that.

We need a banking system that provides banking facilities for everybody in this country and for the whole community. Speaking as the Member of this House who was responsible for handling financial exclusion at the end of the previous Government, I think that it is fine to encourage credit unions, which are very nice institutions, but I do not believe that it is credible to believe that they could set up the kind of national network needed to fill the gaps. That is why, once upon a time, we had a more effective post office banking arrangement. We already have an infrastructure, and we already have institutional arrangements. We would do much better to build on them.

Finance (No. 3) Bill

Debate between Helen Goodman and David Mowat

Tuesday 3rd May 2011 Commons Chamber

[Helen Goodman]

I entirely accept your guidance, Mr Hoyle.

There is obviously a supply chain for the oil and gas sector. Equally obviously, if we damage the financial viability of the oil and gas companies, there will be an impact further down the supply chain. It is worrying that the industry is predicting that 40,000 jobs will be lost. Those are 40,000 jobs that we can ill afford to lose at this time. This is absolutely typical of the measures being taken by the Government that, across the board, are not being thought through. The statement by Statoil that it is going to put on hold a $10 billion investment is very worrying.

We also need to pay attention to the fact that the North sea province is different. It is not only a mature province—we all understand what that means—but it is in a very competitive arena. The Government do not appear to understand what being in a competitive arena means, or that those companies have a choice about where they invest.

[David Mowat (Warrington South) (Con)]

At the current price of $120 a barrel, the average return on capital employed for a medium-sized field is roughly 40%. Do Labour Members think it right that oil companies should be making 40%?

[Helen Goodman]

I do not have the precise figure at the back of my mind and I am not going to pluck out of the air a particular number, which would be to behave as foolishly as Ministers. It is obviously necessary to look at the returns across similar fields in other countries and to consult the industry on the implications. I am sure that that will not have satisfied the hon. Gentleman, but I am afraid that it is my view.

--- Later in debate ---

[David Mowat]

The point about petrol prices has often been raised. The hon. Lady has mentioned both Centrica and Statoil. Does she believe that these are major petrol suppliers in the UK?

[Helen Goodman]

No, Centrica is a gas company. Oil companies, even if they do not have petrol companies within them in the UK, are selling their oil and gas to people who are delivering in the retail market. I would have thought that the hon. Gentleman understood that if something is being done with prices and taxes in one part of the market, it could have an impact on the prices charged in another part of the market. That was my point.

Let me deal now with the drafting of the Bill. Will the Minister explain why the $75 a barrel limit is not specifically mentioned in clause 7? As already mentioned, if we are to make any sense of what is going on here, we will need to look at clauses 61 through to 64 and at schedule 15 alongside clause 7. I would like to pay tribute to Rob Marris, the former Member for Wolverhampton, South West who always enjoined us to read the explanatory notes. The explanatory notes on clause 61, which deals with decommissioning, are particularly interesting. Has the Treasury or Revenue done any analysis of the impact on the environment of the changes to the rate of decommissioning relief?

The amendments in the group are also interesting. As I have said, the amendments tabled by Liberal Democrat Members are clearly aimed at improving stability, predictability and transparency. The amendments tabled by my hon. Friend the Member for Bristol East (Kerry McCarthy) are designed to review and understand the situation better. The most interesting amendment before us, however, is amendment 11, tabled by the Chancellor of the Exchequer. It is designed to insert the following provision into clause 7:

“But if the basis of apportionment in subsection (4)(b) would work unjustly or unreasonably in the company’s case, the company may elect for its profits to be apportioned on another basis that is just and reasonable and specified in the election.”

This is the most extraordinary amendment that I have seen in six years as a Member of Parliament. It seems that every company can say to Her Majesty’s Revenue and Customs, “The impact on another company might be ABC, but in our case it would be XYZ.” Every company will be allowed to negotiate not simply the interpretation of the tax code, but its own tax code.