Lord Swire
Main Page: Lord Swire (Conservative - Life peer)Department Debates - View all Lord Swire's debates with the Northern Ireland Office
(11 years, 10 months ago)
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Mark Durkan (Foyle) (SDLP)
3. What discussions he has had with his ministerial colleagues on the likely implications for Northern Ireland of banking reform and financial service regulation.
The Minister of State, Northern Ireland Office (Mr Hugo Swire)
My right hon. Friend the Secretary of State and I have been in discussion with ministerial colleagues about this matter. The action plan announced by my right hon. Friend the Chancellor on Monday will drive up standards and bring much-needed and long overdue regulation to the sector.
Mark Durkan
The Minister will recognise that Ulster bank customers are currently experiencing a third-class, poor standard of care. Does he feel that there is some risk of a similar syndrome whereby Northern Ireland is only an afterthought in the hierarchy of consideration when it comes to wider banking regulation and reform? We all rightly ask about the banking of business, but should more active consideration be given to the future of the business of banking in the region, particularly given the compound implications of reform and regulation from London and the changing Irish banking landscape, including moves on banking union?
Mr Swire
The hon. Gentleman makes a fair point, as was recognised in his exchange with the Chancellor on 28 June, when the Chancellor acknowledged that
“Northern Ireland has suffered enormously from the failure of banks in the UK and in the Republic, and it has paid perhaps a heavier price than anyone else”—[Official Report, 28 June 2012; Vol. 547, c. 476.]
On the specific point about banking reform, the hon. Gentleman will be aware that there is a Banking Reform White Paper, the consultation period for which closes in September, so I urge him to contribute. On Ulster bank, I think we should be clear that this is not a failure of banking, but a failure of IT, and we should not confuse the two.
Mr Nigel Dodds (Belfast North) (DUP)
On that point about Ulster bank and the failure of IT, I have listened carefully to what the Minister has said, but is it not frankly outrageous and unacceptable that 15 days after the problem first appeared, individuals, households and businesses still cannot access their money in the normal way? Can he outline in more detail what he and his colleagues in the Treasury are doing to provide a little more flexibility for those facing cash-flow problems?
Mr Swire
I understand that the right hon. Gentleman and some of this colleagues are meeting Ulster bank and RBS this afternoon to represent the views of their constituents, and rightly so. Let us not underestimate this. There are people in the Northern Ireland Office who cannot get money either, so this is something very close to many of us. He will be aware of the press release that RBS issued this morning. It is fair to point out in my conversation yesterday with Sir Philip Hampton, the chairman of RBS, he told me that they would
“treat our customers properly and fairly”
and that the bank will
“compensate fully for financial loss”.
We shall hold the bank to that undertaking.
Mr Dodds
I am grateful to the Minister for that answer and for raising the issue of compensation, but does he agree that, as well as reimbursing customers for direct costs, Ulster bank and RBS must ensure that where financial damage and loss has occurred, whether to a customer, either an individual or business, or a non-customer who has suffered loss as a result of the crisis, compensation in full must be paid in all those circumstances? I would welcome his support in lobbying RBS on that point.
Mr Swire
The right hon. Gentleman will certainly have the support of the Secretary of State and myself in ensuring that no one loses out as a result of this IT failure. I was specific on that point to Sir Philip Hampton and I cannot do more than repeat the words he said to me, as I have just done. I will also check with him on Monday to ensure that the bank is making progress in clearing up this sorry mess, which it says it will do over the weekend.
Vernon Coaker (Gedling) (Lab)
Does the Minister agree that the ongoing problems at Ulster bank underline the need to look at how banks operate? Frankly, this is a crisis. Many families cannot pay their mortgages or rent, get their groceries, buy food or put petrol in the car, and older people cannot get access to their pensions. The Minister has told us what he has done, but what is he doing to try to sort this mess out?
Mr Swire
I have a transcript of the shadow Secretary of State’s two interviews on the “Nolan” show, and I have read them carefully, but I am none the wiser as to what he is suggesting. When he was asked about the solvency of some businesses and about liquidity, he said that
“I would expect that government here in Westminster but also government at Stormont needs to consider what to do in those particular circumstances.”
Mr Nolan then asked:
“What could they do?”
The hon. Gentleman replied:
“I don’t know the answer to that”.
If he does not know the answer, we do: it is to make sure that this sorry debacle, involving an IT problem with the Royal Bank of Scotland and Ulster bank, which, let us face it, affected the whole UK, is cleared up quickly so that people can go about their normal business in Northern Ireland.
Vernon Coaker
What we have heard there is a complacent answer that does nothing to say to the people of Northern Ireland what should be done. What the Secretary of State and the Minister should have done, and what they should be doing now, is call an emergency summit—get a summit together—of all the people who are responsible for the situation, including the Treasury, Treasury officials and RBS senior management, and to get them to recognise the seriousness of the problem, get it sorted and get a grip. That is what the Minister should do.
Mr Swire
I am not an IT expert, but I think that appearing on the “Nolan” show twice and saying absolutely nothing does not show tremendous activity. On the shadow Secretary of State’s further point about banking reform, he will be pleased that this Government have set up an independent commission on banking reform to look at the future of banking and to clear up something that his Government failed to do over 13 years—
Julian Sturdy (York Outer) (Con)
4. What recent discussions he has had with Ministers in the Northern Ireland Executive on attracting inward investment.
The Minister of State, Northern Ireland Office (Mr Hugo Swire)
I have regular meetings with the Northern Ireland Minister for Enterprise, Trade and Investment to discuss how best we can support the Northern Ireland Executive in attracting inward investment and promoting growth. We have jointly agreed to invite ambassadors from the Gulf states, for example, to visit in the autumn in order to explore how we can promote investment and increase export opportunities.
Julian Sturdy
As with other parts of the UK, including my home city of York, Northern Ireland’s lower operational costs make it an attractive location for investment, but does my right hon. Friend agree that we must do more to promote such areas if we are truly going to rebalance our economies?
Mr Swire
Indeed. My hon. Friend makes an ingenious connection between York and Northern Ireland—the only connection that attracted investment before was probably with the Vikings, who took an early interest in both areas.
There are clearly tremendous advantages in Northern Ireland: it is not in the euro; it is extremely good in terms of education; it is a great place to live; and it has low costs, good IT, good connections and good transport connections. Yes, we can do more, but let us just look very carefully at how well Northern Ireland has done to date in attracting inward investment.
Stephen Pound (Ealing North) (Lab)
If we can move on from the battle of Clontarf, I must say that the Secretary of State is getting the reputation of being something of a one-club golfer when it comes to the Northern Ireland economy. When even yesterday’s Belfast Telegraph referred to a putative corporation tax as “an economic disaster”, one has to ask: does the Secretary of State have another driver in his bag, and will he or his caddy whip it out and show it to us?
Mr Swire
It is not a disaster; it is what we have been looking at very carefully.
There are other things that we need to do to rebalance the Northern Ireland economy, which both Governments over a successive number of years allowed to become far too dependent, for obvious reasons, and we will use any club available in our or anyone else’s bag to bring that about.
David Simpson (Upper Bann) (DUP)
On a recent visit to my constituency, the Minister will have seen some of the inward investment there, but does he agree that it is imperative that Northern Ireland retains its 100% status for regional aid?
Mr Swire
What is key, as I saw when I was with the hon. Gentleman, is planning, among other issues, which needs to be speeded up to facilitate inward investment and private sector investment, such as in the new supermarket in his constituency. Northern Ireland had automatic assisted area status, but that is not going to continue, and people in Northern Ireland mainly agree that other areas in the UK are now worse off than Northern Ireland.
Dr Alasdair McDonnell (Belfast South) (SDLP)
I inform the Minister that that is not agreed in Northern Ireland; all political parties there unanimously want Northern Ireland to retain 100% regional aid status because of the special circumstances and the poverty, under-employment, under-achievement and poor prosperity. Can the Minister assure us that he will persuade his colleagues at the Department for Business, Innovation and Skills to support that programme?
Mr Swire
I do not think that I said that regional aid was not important; I merely said that, as part of rebalancing the economy and encouraging inward investment, we need to make sure that the 2014 map covers the areas of Northern Ireland that do need assistance. We no longer believe that it is justifiable, however, for Northern Ireland as a whole to have 100% automatic coverage.
Lady Hermon (North Down) (Ind)
In evidence to the Northern Ireland Committee, we were told by one witness—I should point out that it was only one witness—that we had one airport too many and that, instead of having both Belfast International airport and Belfast City airport, we should have only one. If such a daft idea were implemented, what impact does the Minister think it would have on economic investment coming to Northern Ireland?
Mr Swire
A very negative one. The hon. Lady is absolutely right. Northern Ireland justifies two airports. They are both thriving concerns and we have had some good news on air passenger duty. [Interruption.] The hon. Member for Foyle (Mark Durkan) is saying that I should not forget Eglinton airport either, and possibly others. We should certainly have Aldergrove and George Best Belfast City airports, which should thrive. The Department of Enterprise, Trade and Investment Minister and I are very positive and optimistic; we are trying to attract more airlines to fly in and out of Northern Ireland to grow the economy. The hon. Lady is spot on.
Alok Sharma (Reading West) (Con)
5. What recent discussions he has had with Ministers in the Northern Ireland Executive on economic development.
Oliver Colvile (Plymouth, Sutton and Devonport) (Con)
7. What assessment he has made of the likely effect on Londonderry of becoming the UK’s first city of culture; and if he will make a statement.
Mr Speaker
Order. The hon. Member for Ealing North (Stephen Pound) aspires to be a statesman; he should not be yelling across the Chamber—yes, you!
Oliver Colvile
I thank my right hon. Friend for that answer. May I also ask him what lessons the city of Plymouth can learn from the city of Londonderry-Derry in its bid to be the city of culture in 2014?
Mr Swire
Of course, as a west country Member of Parliament I am hugely supportive of Plymouth. The whole issue of whether the city should be called Londonderry or Derry seems to be resolved, as we are now going to call it Legenderry. Plymouth is already legendary, not least on account of its excellent Member of Parliament. My hon. Friend should get his councillors to come over to Londonderry during its year as the city of culture, and I will introduce him to all the key players who are going to make it the most happening place in Europe.
Mr Gregory Campbell (East Londonderry) (DUP)
In promoting Londonderry as the first UK city of culture, does the Minister agree that job retention and job maintenance is a crucial factor? In that context, will he speak to the Under-Secretary of State for Transport, the hon. Member for Hemel Hempstead (Mike Penning), who I assume will make an announcement on this in a written statement today, to ensure that the Driver and Vehicle Licensing Agency offices are preserved in Northern Ireland so that 260 jobs are not lost in my constituency?
Mr Swire
On the latter point, I understand that the Minister is putting out a written statement today, and I do not want to prejudge what he might say in that.
On the longer-term economic benefits to Londonderry, yes, that is a vital issue. Of course, there will be a lot of prosperity around in the year that it is the city of culture, but that should be the building block to cement the renaissance that has gone on in the city, not least with the regeneration of the Ebrington barracks site and the peace bridge.
Nick Smith (Blaenau Gwent) (Lab)
8. What recent assessment he has made of the security situation in Northern Ireland; and if he will make a statement.