UK Steel Industry

Debate between Huw Irranca-Davies and Sajid Javid

Monday 29th February 2016 Commons Chamber

[Huw Irranca-Davies]

I apologise for having to whisper again. On rebar and other important products in south Wales, what tariff is the Secretary of State pushing for and when does he want it imposed?

[Sajid Javid]

I hope that the hon. Gentleman respects that it is not for us or any other state to say what the tariff should or should not be. These are European-wide tariffs. Under the existing rules, it is possible to have higher tariffs, and that should certainly be the case if the dumping does not stop.

[Huw Irranca-Davies]

I realise that there will be a negotiation process. As somebody who has been involved in European negotiations in a different sphere, I know that it is perfectly within the Secretary of State’s gift to tell us what the UK’s negotiating position is. What should the tariffs on the different products be, and when is he arguing for them to be imposed?

[Sajid Javid]

When it comes to the steel industry, there are many different types of products and there is no one single tariff that we are looking at. Where appropriate, we are pushing the EU Commission where we think it has not applied the existing rules properly, not just for higher tariffs, but for much speedier action.

Enterprise Bill [Lords]

Debate between Huw Irranca-Davies and Sajid Javid

Tuesday 2nd February 2016 Commons Chamber

[Sajid Javid]

I will come on to one of the measures we will put in place to make sure that the GIB keeps its mission—something the bank itself has come forward with—but I do really think this move will mean more green investment, because the bank is restricted by being on the Government’s balance sheet. If we can take it off that, it will have its own freedoms and ability to raise capital, whether equity or debt, and that will lead to more investment.

[Huw Irranca-Davies (Ogmore) (Lab)]

I wish to ask the Minister a legal and technical point. Did he and other Ministers challenge the advice they received about retaining even a minority share? Would that approach in any way compromise the bank’s ability not only to retain its green credentials, but to borrow openly and thrive and prosper, as we all want? Have they just accepted the one piece of advice they have been given, or have they challenged it, asking whether they could retain a minority stake?

[Sajid Javid]

The hon. Gentleman raises an important issue, and what I am about to come on to perhaps addresses some of the concerns. Similar concerns were raised in the other place, as I am sure he was aware. The GIB will create a special share, which will ensure that its green mission is guarded by an independent party once the bank is sold, and that share will be put in place without legislation. Mandating that in legislation is entirely unnecessary and it is unlikely to work, but the GIB has assured us that that will happen.

--- Later in debate ---

[Sajid Javid]

The ONS does not need to approve anything that the Government do, but I am comfortable that the structure I have just mentioned allows the Government to meet their objectives for the GIB.

[Huw Irranca-Davies]

I thank the Secretary of State for his generosity in giving way and regret that I will not be able to speak at length today. It will be interesting when the Bill goes to Committee. The cross-party Environmental Audit Committee, which, until recently, I chaired, made several recommendations, the detail of which I cannot go into because of the time constraints. One was:

“The Government should provide an evaluation of whether a ‘phased approach’ involving alternative recapitalisation options would be possible. This could allow for greater consultation, transparency and market testing on the form of any eventual privatisation.”

Is the Secretary of State open to alternative options being proposed in Committee or not?

[Sajid Javid]

I am aware of the Committee’s recommendation. Some of the work that I have just announced that will be done by GIB will help to meet some of those concerns. I will not pretend that all the Environmental Audit Committee’s recommendations will be met, but I hope that the hon. Gentleman is reassured that we have considered them carefully and that as we proceed with the Bill we will take many of those issues into account.

Oral Answers to Questions

Debate between Huw Irranca-Davies and Sajid Javid

Tuesday 15th September 2015 Commons Chamber

[Huw Irranca-Davies (Ogmore) (Lab)]

1. What recent assessment he has made of the UK’s membership of the EU on businesses.

[The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)]

The UK was the fastest-growing major advanced economy in 2014. The OECD forecasts that that is to continue in 2015. This Government’s ambition is for Britain to be the most prosperous major nation in the world by the 2030s, and free trade with the rest of Europe has a very important role to play in that.

[Huw Irranca-Davies]

I welcome those words. The First Minister of Wales, Carwyn Jones, was in Japan only last week, building on our strong cultural, economic and social ties with that country, which have developed over a long time, and promoting our exports, which increased by 27% in Wales last year, building on the work of established companies such as Toyota, Sony and Sharp. Those companies view Wales and the UK’s membership of the European Union as key to the trading relationship and the thousands of jobs it underpins. Does the Minister agree with them?

[Sajid Javid]

I respect the hon. Gentleman, but given the utter shambles of his party’s EU policy I am surprised that he wants to ask that question. It is clear that free trade is hugely important to the prosperity of our nation, and that means working with our EU partners on more free trade agreements. That is at the heart of our renegotiation, because we want more free trade with an EU that is outward looking, not just inward looking.

Oral Answers to Questions

Debate between Huw Irranca-Davies and Sajid Javid

Tuesday 30th June 2015 Commons Chamber

[Sajid Javid]

It is right that LEPs are business-led, but it is also important that they include democratically elected people, and that is how they are working. It is important to review LEPs after a few years of operation and to ensure that they are truly accountable.

[Huw Irranca-Davies (Ogmore) (Lab)]

5. What steps his Department plans to take to improve productivity in businesses and industries.

[The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)]

Productivity growth ultimately comes from business and the hard-working people of Britain, but the Government can, of course, help. That is why my Department is working closely with the Treasury on a forthcoming productivity plan.

[Huw Irranca-Davies]

The Minister is right about the reliance on individual workers to drive up productivity and about what the investor community can do as well, but he will know that the Office for Budget Responsibility has said that if productivity per worker was 4% higher during this Parliament, that would have a significant effect on reducing the national debt, and correspondingly, that if it was not, the national debt could rise. Does he agree with this rather gloomy assessment and, if so, what does he think the figures for individual growth per worker will be by the end of this Parliament?

[Sajid Javid]

The hon. Gentleman will know that the UK has had a long-running productivity challenge, which was made all the worse by Labour’s great recession. An increase in productivity is the surest way to raise real wages and I can assure him that it will be a major focus of this Parliament. We will shortly publish a productivity plan which I hope will reassure him that the Government take this very seriously.

Oral Answers to Questions

Debate between Huw Irranca-Davies and Sajid Javid

Thursday 3rd July 2014 Commons Chamber

[Huw Irranca-Davies (Ogmore) (Lab)]

7. What steps she is taking to ensure that mothers' names are included on marriage certificates; and if she will make a statement.

[The Minister for Equalities (Sajid Javid)]

The content of marriage registers has not changed since civil marriage was introduced in 1837, so it is about time we took a further look. I have discussed this matter with my right hon. Friend the Home Secretary, and we are currently considering a range of options.

[Huw Irranca-Davies]

The Minister has referred to a range of options. Given that Labour changed the law in respect of same-sex couples and adoption back in 2002, what consideration has he given to ensuring that any changes that may be made to marriage certificates reflect the fact that many individuals now have legal parents of the same sex?

[Sajid Javid]

I agree with the hon. Gentleman, who has raised a very important point. When the rules were drawn up in 1837, equality was not a priority for our society. Today, thankfully, it is, so those are just the kind of changes that we are considering.

Rothschild Bank and Mortgage Equity Release (Spain)

Debate between Huw Irranca-Davies and Sajid Javid

Wednesday 22nd January 2014 Westminster Hall

[The Financial Secretary to the Treasury (Sajid Javid)]

I welcome you to the Chair, Mr Turner. It is always a pleasure to serve under your chairmanship. I thank the hon. Member for Ogmore (Huw Irranca-Davies) for making a powerful case on behalf of his constituents. I assure him that I have listened very carefully.

Some of us will have constituents affected by these products who now face an uncertain financial future instead of the comfortable retirement they thought they had earned. As the hon. Gentleman said, the equity release products in question were sold to some UK pensioners resident in Spain. It seems that they were sold by independent financial advisers operating in Spain who suggested that they release equity from their houses and invest the loan in a fund, often claiming that that would have inheritance tax benefits. The products were then provided by a variety of banks, mainly based in Scandinavia, but including Rothschild bank.

With the onset of the financial crisis, those investments did not perform, so many of the investors breached the terms of the loan they were given. That has left many expats in Spain, including those from the UK, with significant financial losses. Some of the banks involved, many of which were facing their own financial difficulties, have sought to repossess the properties on which the loans were secured. That has left some pensioners facing not only large losses, but the threat of repossession, which is a stark contrast with the comfortable retirement they had planned.

Of course, I am sympathetic to the difficulties that these people are facing. Many of them have lost a great deal, but I am afraid that the Government’s ability to act in this case is limited. The products were not sold in the UK or by UK companies and the loans were not secured against properties located in this country, so the UK authorities do not have any jurisdiction over that activity.

What I have said will be frustrating for the individuals involved, but the same rules allow our own regulators to protect our domestic consumers from foreign banks operating here in the UK. I realise that some banks in Europe were involved in providing the products sold by independent financial advisers in Spain. The hon. Gentleman highlighted Rothschild bank specifically. It has strong historic connections with the UK.

I have looked into the matter further, and I understand that Rothschild sold around 130 of the products between 2005 and 2008. However, that activity was carried out by its Guernsey-based entity and, as the hon. Gentleman knows, the Channel Islands do not come under the jurisdiction of the UK Government or UK regulators. The Guernsey regulator may have some jurisdiction over the design and distribution of the product, but that is not for the UK authorities to establish. I understand that some of those who have lost out have taken the case up with the Spanish authorities, and that may be an appropriate option for them.

I am sorry to report that the UK Government have limited influence over this case. I understand that Rothschild has provided affected customers with some flexibility. For example, it is my understanding that it is not repossessing the properties of those that have been affected. That, of course, is welcome. As I said, the UK authorities do not have any jurisdiction over this activity. However, I appreciate that Rothschild has major operations in the UK, so I am happy to write to it to pass on some of the concerns that the hon. Gentleman has raised. I will also raise the matter with my counterparts in Spain and Guernsey to bring it to their attention. I will be more than happy to meet the hon. Gentleman and his constituents if he would find that useful.

The hon. Gentleman may be interested to know that the UK ambassador to Spain wrote to the Spanish regulator about this issue in 2012. Following that exchange, the Foreign Office published advice for people considering taking out equity release products in Spain. It highlighted the importance of checking that the company offering the mortgage is registered with the Spanish financial regulator, known as the CNMV. The publication explains that consumers unhappy with the product should first complain to the company responsible and that, if they are still dissatisfied, they can complain to the Spanish financial regulator.

In a broader context, my hon. Friend the Member for South Derbyshire (Heather Wheeler) gave sensible advice for people who are thinking of taking out similar equity release products in the UK.

In summary, I fully understand and support the hon. Gentleman’s concerns for his constituents affected by these products.

[Huw Irranca-Davies]

I thank the Minister for a very positive, full and helpful response. He may not be able to answer this question now, but does he think that there is any scope within European legislation or elsewhere to avoid this situation happening in the future? In this situation, a UK-based company that has a subsidiary in Guernsey operates in Spain, and people assume that it is applying the same ethical and moral standards elsewhere. Let us lift the debate above Rothschild for a moment. Any company doing what has been described could, within the European Union, be brought to book in one way or the other. Does the Minister think that there is something there that we should be exploring?

[Sajid Javid]

When I first looked into the issue, I thought about that. Unfortunately, I do not think that there is such an avenue through European Union institutions. I am happy to explore the matter further; perhaps when we meet, I can give the hon. Gentleman more information. He may be interested to know that there is currently a mortgage market directive. It is in its final stages in the European Union, but I think that I am right in saying that it does not include equity release products. Obviously, it would not have helped the hon. Gentleman’s constituents anyway; it is for the future.

I am happy to raise the issue with people in the way I have explained to the hon. Gentleman and I thank him again for bringing up this case. I will be happy to report back to him.

[Huw Irranca-Davies]

The few minutes remaining provide an opportunity to get more issues on the record. The Minister may be interested in responding to some other people who have written to me subsequently, when they learned of the debate. One of them wrote:

“When my wife and I met Mr Dewsnip”—

who came up earlier in the debate—

“at one of his public presentations and had a private chat with him after the main event, he most certainly did advise us as to the suitability of the investment fund and assured us that Rothschild would be working on a daily basis with the fund managers to ensure that it was meeting expectations and performing as expected.”

I could cite other examples that imply an intimate, daily, minute-by-minute relationship, but I have yet to discover whether that also means that Rothschild or anyone who worked for Rothschild was financially benefiting from it. That would be interesting and it may figure in a subsequent meeting that I have with Rothschild.

[Sajid Javid]

The hon. Gentleman is right to ask such questions and to raise them in any meeting that he may have with Rothschild and with the relevant regulators for the entities that we have discussed today. I will report back to the hon. Gentleman in due course. I thank him again for raising this important issue.

Question put and agreed to.

Banking

Debate between Huw Irranca-Davies and Sajid Javid

Wednesday 15th January 2014 Commons Chamber

[Sajid Javid]

Again, my hon. Friend makes an excellent point.

[Huw Irranca-Davies]

The Minister is understandably making a case for the financial sector, as he also should for manufacturing and all other sectors. What my constituents fail to understand is why, when public and private sector employees over the last few years and now have accepted pay restraint and real-terms squeezes on their earnings, and we in this House, including Ministers, are facing public demands to accept pay restraint on our pay and conditions as well, top bankers are immune from those constraints.

[Sajid Javid]

I will come on to that topic shortly and share with the hon. Gentleman some numbers that show what has happened to the pay of top bankers.

Oral Answers to Questions

Debate between Huw Irranca-Davies and Sajid Javid

Tuesday 25th June 2013 Commons Chamber

[Huw Irranca-Davies (Ogmore) (Lab)]

Does the Minister see any correlation between wages being £1,300 a year less than they were at the time of the election and the number of people who are in work turning up at food banks?

[Sajid Javid]

What I see is jobs being created in the private sector at a record rate in this country—1.3 million jobs in the past three years; a faster rate of job creation than any other G7 country last year. If the hon. Gentleman really cared about his constituents, he would welcome that.