Oral Answers to Questions

Debate between Jacob Rees-Mogg and Stephen Hammond

Thursday 24th February 2022 Commons Chamber

[Mr Rees-Mogg]

I do not think we need to go into my personal dietary habits. I have mainly been giving free publicity to Cadbury Creme Eggs over the years, rather than going into the details of whether or not I like foie gras—although people may be able to guess what the answer is.

As for the strategy for procurement of food, one of the things it will do is allow social benefit to be taken into account. It will not just be about value for money, although value for money is inevitably fundamental to all procurement, so it will be possible for people to make decisions on a broader range of issues.

[Stephen Hammond (Wimbledon) (Con)]

I welcome my right hon. Friend’s answer, and the reform that he has promised for contractors, but many large-scale projects suffer because the Government’s ability to procure and contract management have not been as good as they should be. In his role as Minister for Government Efficiency, will my right hon. Friend take that on board, and will he ensure that the Government set out new guidelines for procurement for themselves so that they do not keep changing them and hence building in inefficiency?

[Mr Rees-Mogg]

I am grateful to my hon. Friend for that question. The new procurement rules will make it easier for buyers to exclude suppliers that have underperformed on other public contracts. Currently, that is possible only if poor performance has led to contract termination, damages or other comparable sanctions. We will establish a new, centrally managed debarment register, which will identify any companies that should be banned from any new public contract.

Crucially, though, there has been a change within the procurement from Government to ensure that the management of contracts once they are procured is improved and is the great focus of the energy of the procurement department, because however brilliantly the procurement is issued, if it is not then managed well and effectively the benefits are lost. This is, in fact, an issue that we discussed when I had another role in this distinguished House.

Business of the House

Debate between Jacob Rees-Mogg and Stephen Hammond

Wednesday 20th May 2020 Commons Chamber

[Mr Rees-Mogg]

The hon. Gentleman is, of course, a separatist, and he gives the game away when he refers to “even greater ridicule”, because he does not wish this Parliament to be the Parliament of the United Kingdom. He wants to separate himself from it and therefore uses every opportunity to ridicule it, which I am not sure is entirely helpful or reflects the views of the majority of Members.

As regards remote voting, there was a very clear undertaking that it would be temporary. The consensus reached within the House to allow the hybrid Parliament was based on consent, on the basis of it being temporary. If people want to make an argument for the longer term about remote voting, they are absolutely entitled to do so, and no doubt the Procedure Committee will look at it, but that is an argument for another day. I would be acting in bad faith if I did not deliver on the commitment to those who never wanted remote voting in the first place that it will stop at the point at which we return to a physical Parliament.

As regards how numbers will be kept down, there is a well tried and tested pairing system, and discussions are going on between the Whips. I expect that any Member who is concerned about coming here will not have to attend or will not be whipped to attend.

With regard to Public Health England, Mr Speaker, you and the spokesman for the Commission are probably better placed to answer these questions, but Public Health England has been involved in many discussions. The House authorities have liaised very closely with PHE throughout the whole process. That is why these markings are down on the floor. That is why, Mr Speaker, your plan for effectively a roll-call Division is being tested—it worked rather well yesterday—rather than using the Division Lobbies. That is on advice, which is being followed, and we are acting in line with other businesses that are planning to come back to work. Finally, as regards the hon. Gentleman’s question on whether we are obeying the law, of course the House of Commons and Her Majesty’s Government are obeying the law.

[Stephen Hammond (Wimbledon) (Con) [V]]

My right hon. Friend was undoubtedly correct in his answer to the shadow Leader of the House a moment ago when he said that the Government’s support for employment, business and industry has been extraordinary and hugely impressive, especially the retail, leisure and hospitality industries. However, many companies that supply those industries are not covered by those provisions, which risks risking the future of those industries, because they are experiencing difficulties. Can we have a debate in Government time on the future of the UK hospitality and leisure industries and the companies that supply them?

[Mr Rees-Mogg]

I am grateful for my hon. Friend’s reference to the support the Government have given. I really think that my right hon. Friend the Chancellor has managed to be stunningly innovative in providing support for businesses in a way that, historically, is not what Finance Ministers across the world manage to do. His achievement is of historic proportions, and I am grateful for what my hon. Friend said. As regards a debate in Government time on the hospitality industry, that is one of the great virtues of our coming back to a physical House—there will be more opportunity for debates, and we will have to see whether such a debate can be slotted in or will fit into any of the other discussions that will be taking place.

Business of the House

Debate between Jacob Rees-Mogg and Stephen Hammond

Thursday 12th March 2020 Commons Chamber

[Mr Rees-Mogg]

May I begin by saying how much I enjoy Angus beef and commend the hon. Gentleman’s constituency for the wonderful food it produces? He is absolutely right that the UK has the very highest food standards—higher often than those of the EU. Not only did the UK ban veal crates fully 16 years before the EU; we also want to go further than the EU in banning the live shipment of animals. The UK already ensures that, without exception, all imports of food meet our stringent food safety standards. Our independent Food Standards Agency will ensure that that will remain the case, regardless of trade arrangements. In all negotiations the Government will ensure that any future trade deals live up to the value of farmers and consumers across the United Kingdom.

[Stephen Hammond (Wimbledon) (Con)]

The Government are rightly committed to levelling up and creating opportunities. Two small changes to the admissions code would change the life chances of so many summer-born children. Could we have a debate in Government time on making changes to the admission code, to benefit the summer-born?

[Mr Rees-Mogg]

With children born in June and July, I am well aware of the issue that my right hon. Friend raises. I think an Adjournment debate would be a suitable place to begin, but that is in your hands, Mr Speaker, not mine.

Bank of England (Appointment of Governor) Bill

Debate between Jacob Rees-Mogg and Stephen Hammond

Friday 6th July 2012 Commons Chamber

[Stephen Hammond]

I am grateful to the hon. Gentleman.

The Bill is supported by large numbers of Members from both sides of the House, including many right hon. and hon. Friends whose judgment and intellect I respect and admire. However, let me start by setting out the four points on which there are internal contradictions in the hon. Gentleman’s argument or where there are reasons to oppose the Bill. First, the role is unique, and its extension increases that uniqueness. Secondly, the Government are already putting safeguards in place through the Financial Services Bill. Thirdly, despite what the hon. Gentleman has argued, a lot of people would accept that what he proposes is a fairly major constitutional change. Moreover, an underlying point he made is that this Bill somehow fits with the principle “for the people, by the people” so that anything other than that would be unacceptable.

I recently participated in a transport debate and gave what I thought was a fairly good detailed speech; indeed, one or two people were kind enough to say it was useful. I was pleased to note that my hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) who was the duty Whip at the time, said something like, “That was one of the dullest speeches I have ever heard; more time limits, please”! I hope the Whips will find my speech today to be equally dull; perhaps there is a case for time limits in debates such as this.

It might bring a little colour to the debate as well as a sense of purpose if we look at one or two of the Governors of the Bank of England over the last century who have been extremely powerful figures on the economy and powerful figures in respect of their independence from Government. We could reflect on how their appointments were made. Montagu Norman, for example, the Governor of the Bank of England from 1920 to 1944 was described by many as more of a bohemian artist than a banker. He liked to wear Sherlock Holmes-type clothing, was prone to nervous breakdown, regarded politicians as asses and openly said so. I just wonder what the Treasury Select Committee might have said to him when he was appointed.

[Jacob Rees-Mogg (North East Somerset) (Con)]

When Montagu Norman was Governor of the Bank of England it was a private company, so I do not think it would have been right, prior to nationalisation, for a Select Committee to have had any involvement in the appointment.

[Stephen Hammond]

Indeed. We could have a long discourse about the fact that Montagu Norman was the initiator of sound monetary policy, but in view of the strictures set out by the hon. Member for Hayes and Harlington, I shall not go down that course today.

It might be worth referring to two more modern Governors. Lord Kingsdown, who was Robin Leigh-Pemberton at the time he was Governor, was in some ways a classic figure. He had been a lawyer for many years and had no banking experience. He was appointed chairman of Nat West bank and was then invited to become Governor of the Bank of England. I am sure we could envisage the Treasury Committee saying, “But you are a lawyer, and we want a banker or someone with financial services experience”. The current Governor’s predecessor, Baron George, went from Cambridge to the Bank of England and never left it. Again, can we not hear the Treasury Committee saying, “But you are an insider in the Bank of England. You have no experience anywhere else. How on earth”—

--- Later in debate ---

[Stephen Hammond]

I bow, of course, to my hon. Friend’s greater knowledge of this matter. My key point was that the Bank of England and its family, cousins and outside friends will now have a much greater role at the centre of the regulation of our financial system and, indeed, of our overall economy.

It is in some ways understandable that the immediate drive of the Bill before us is to increase the powers of parliamentary accountability, but I think there is some confusion between accountability and independence. Parliament will gain further powers of control, scrutiny and accountability under the Financial Services Bill. The exact powers are clearly defined, with reference made to the new financial stability objective, to the position of the deputy governor and the Financial Policy Committee, to the Governor’s appointment for eight years and to the fact that the Treasury Committee and, indeed, Parliament can hold the Bank of England to account. That being so, it is not necessarily the case that giving the Treasury Committee the power of veto over the appointment of the Governor would enhance that accountability, although it might impede the Governor’s independence. It is right for Parliament to have greater accountability and greater scrutiny, but we need to be clear that the Governor, who is at the centre of the operation of macro-economic policy and macro-financial and prudential control, must be independent.

The Bill before us contains not only a power of veto but a power of appointment, which could be seen as a step backwards in the whole argument about independent policy making. The Bank of England Act 1998 took a momentous step forward in respect of the independence of the Bank and the Governor by giving the power of decision over interest rates to the Monetary Policy Committee. That was, and will remain, the historic achievement of the Labour Government. It followed from and was a continuation of what the previous Governor had introduced, in tandem with the then Chancellor, my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke), with the publication of the minutes of the interest rate-setting committee.

[Jacob Rees-Mogg]

Does my hon. Friend believe that the conduct of monetary policy from 1998 to 2008 was any better than it was when the Bank of England was not independent and when previous Conservative Governments from 1979 onwards were interfering in monetary policy very considerably?

[Stephen Hammond]

Again, my hon. Friend presents me with a tempting line of debate. It is reasonable to suggest that the period between May 1993 and May 1997 will be regarded as one of the golden eras of the operation of monetary policy. It was the period that drove the first 12 quarters of growth before 1997, and it was the period during which my right hon. and learned Friend the Member for Rushcliffe and Baron George—who, as I said earlier, might not even have been appointed by a Treasury Committee—operated monetary policy. I am sure that my hon. Friend and I could enjoy a happy morning discussing monetary policy, but, as I have said, I will not go down that line.

The protections and requirements introduced by the Financial Services Bill seem to me to be exactly the same as those introduced by the Bank of England in terms of independence. What concerns me is that if the Treasury Committee can hold the Bank responsible for its actions in the past as well as its immediate decisions, it does not necessarily need a power of veto over the Governor’s appointment. It has the power of accountability and of scrutiny.