(6 years, 12 months ago)
Commons ChamberMy hon. Friend makes a good point. The Government are a large employer. I am pleased to say that all Government Departments are Disability Confident employers. One of the points that we make in the Command Paper is that, as an employer, it is important that the civil service leads by example in terms of how it operates and the support that is provided to disabled people.
I thank the right hon. Gentleman for his statement and welcome the passage in which it sounds as though he will introduce significant improvements to the Access to Work programme. Does that include abolishing or raising the cap on support for deaf people that was introduced in March 2015?
(7 years ago)
Commons ChamberI am pleased to follow the hon. Member for South Cambridgeshire (Heidi Allen), who has established a very positive reputation on these issues. I thank the Backbench Business Committee for the opportunity to debate universal credit again, and I congratulate my right hon. Friend the Member for Birkenhead (Frank Field), who has had a reputation for campaigning on these issues for slightly longer than the hon. Lady.
I hope that the Minister might be able to confirm, although I suspect he will not, that the media reports are true that the Chancellor will take action in next week’s Budget to reduce the waiting time for universal credit, and that other changes might be made, because it is clear from the contributions we have heard so far that the problems with universal credit are not just about waiting time.
I want to refer to statistics and individual cases from my constituency. Citizens Advice East End tells me that analysis suggests that 22,000 families in Poplar and Limehouse will be in recipe of universal credit by 2022, half of whom will be in work. It has dealt with hundreds of cases already, half of which relate to the claiming process. One involved a young mother with a five-month-old baby who was refused universal credit due to an incorrect decision on her right to reside.
On rent arrears, I am grateful for information supplied by Andrea Baker, director of housing at Poplar Harca. She tells me that of its 372 residents claiming universal credit, 98% are in arrears. That cannot be right. Something is going wrong somewhere in the system as the statistics on the benefit cap, housing benefit and the bedroom tax are less than half that figure.
Andrea says:
“Whilst there are still relatively few households transitioning to UC, the average 10 week wait for the first payment has pushed 98% of them into rent arrears. We anticipate it to be very difficult for the majority of UC households to make-up the accrued arrears. When the payment is finally received, they are likely to also owe others money, family, friends, utilities, credit cards, payday loans, loan sharks etc. And whilst we advise that paying rent should always be a priority, most know we are likely to offer time to pay in a way other creditors won’t.”
I have had similar reports from Stuart Veysey of Eastend Homes, and Mick Sweeney, former chief executive of One Housing Group.
My team, Louise Leak and Joytera Khanum, have supplied statistics from their casework. For example, a 61-year-old man, Mr M, was made redundant last year after working in a mental health facility for 22 years, following funding cuts. He was unable to find work, and with his savings depleting, he made the decision to claim universal credit in August. His claim has been continually refused on grounds of missing documentation, but in September he was informed his housing benefit would be stopped. With no universal credit or housing benefit, Mr M has now fallen into £700 of rent arrears with his housing association. He is left with no living family and £200 to his name, and now fears eviction and homelessness, despite still—unsuccessfully—trying to claim universal credit and attending five job interviews. Mr M writes:
“After 4 decades of almost continual employment I find it utterly incredible to find myself in this parlous state and faced with possible homelessness.”
There are a number of other cases involving, for example, someone on low pay whose monthly income has been incorrectly calculated, and someone with a partner who is a full-time student whose eligibility has been incorrectly assessed because of the minimum income floor, which suggests that self-employed people are calculated as earning £1,000 a month regardless of what they are actually earning.
A lady, Ms K, attended my advice surgery in a very fragile state, both emotionally and physically. She initially made a claim for universal credit in August. She is unable to manage her affairs because of her medical and mental issues, and she missed a vital meeting, which led to her claim being closed. Her benefit was finally paid after 10 weeks, with only a small interim payment, and she had to access help from our excellent local food bank, the First Love Foundation. This case was resolved quickly, but only after the intervention of my team, who stated how concerned they were for Ms K’s wellbeing. The First Love Foundation says that universal credit referrals this year to the food bank are at 25% when they were only 4% last year.
All those cases tell me that universal credit is not working, for a variety of reasons. I hope the Minister can offer some expectation that things will improve for my constituents, as well as others whose Members of Parliament are making the case for them this afternoon.
(7 years, 9 months ago)
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I pay tribute to my hon. Friend for the very good work he has done in his time in the House on mental health. He is absolutely right. A core tenet of PIP’s design is the principle of equivalence between physical and non-physical conditions. The whole House ought to welcome this move. It is why, as he has explained, it is a better benefit than DLA. Rolling PIP out in this way and attempting to improve the assessment process in the way we are is the best way for us to help people with all kinds of disabilities, specifically those with mental health conditions.
I received an email following the remarks of the No. 10 adviser over the weekend. My constituent wrote:
“As someone who has been diagnosed with PTSD and phobic anxiety, I am deeply distressed and angry about his remarks. Considering the current lack of funding and social stigma that mentally disabled people already have to suffer, this is beyond the pale.”
Do the Government recognise the offence these remarks caused, and will they dissociate themselves from and apologise for them?
The hon. Gentleman talks about a Government adviser. I assume he is talking about my hon. Friend the Member for Mid Norfolk (George Freeman), who has apologised for his remarks and who has, as it happens, also done a lot of work on mental health issues. As he has explained, he has a personal and family history that makes him particularly sensitive to mental health issues. I hope that the House can accept his apology.
(9 years, 4 months ago)
Commons ChamberThat is right, because the commitment that was given to the Scottish people after the no vote at the referendum last September was that we would create one of the strongest devolved Parliaments in the world. In order to be able to do that, we have to give the necessary tools to the Scottish Parliament to determine not only its own direction in welfare and a host of other policy areas, but the finances it raises to pay for that. Accountability comes with that kind of financial responsibility and that is what, according to Smith, the Scottish Parliament was missing before the Scotland Act 2012 and the Scotland Bill before us today.
The Scottish Parliament needs to be given the ability to make its own decisions. Using terms such as “short-term”, “discretionary” and “on a short-term basis” do not give that flexibility. If someone were putting forward a new system of welfare in Scotland, it would be up to the electorate to decide whether they wanted that and wanted to pay for it.
I now come to arguably the most important amendment to this part of the Bill, new clause 31, which broadens the circumstances under which the Scottish Parliament can create new benefits, and brings it more into line with what I believe the Smith agreement intended. It has been co-signed by SNP Members and for that I am very grateful. Due to its significance we should be able to use it to transform this part of the Bill.
New clause 31 creates a new exception 9 in section F1 in part 2 of schedule 5 to the Scotland Act 1998—I know all Members will have read that and will know exactly what I am referring to—which allows for the creation of any benefit not currently in existence, payable by or on behalf of a UK Minister of the Crown, or otherwise a reserved benefit. In essence, this would allow the Scottish Parliament to create any new benefit which is not in existence on the date on which this Act is passed. This, I believe, goes significantly further than what is currently in the Bill.
I will be grateful if the Minister responds specifically on why this, in his view, would not be desirable or practicable, because it ensures that the power to create new benefits in Scotland rests with the Scottish Parliament and therefore the Scottish people, and that it has the flexibility and autonomy to exercise this power free from unnecessary restraint, in keeping with the spirit and substance of the Smith agreement. Of course, there will have to be joint working between the Governments to ensure that it is deliverable, and that brings me to an important common theme that has run through these Committee debates so far: the need for both Governments to work much closer together in partnership for the benefit of Scotland. We cannot emphasise that enough. We must have a much more solid partnership working and relationship to make these provisions work.
Let me be absolutely clear on this point so that there is no ambiguity: I believe in the fundamental principle that the final say on the creation of new benefits, the type of benefit created, whom it is paid to, and how long and how often it is paid, should reside with the Scottish Parliament. That is my view, and that is the view of the Labour party across the UK.
On the exchange my hon. Friend had with the hon. and learned Member for North East Hertfordshire (Sir Oliver Heald) on the impact of the Government policy of cutting tax credits, which will hit people who are in work more than people who are simply on benefits, will these amendments, many of which have the support of the SNP, give any extra protection to the people in Scotland against the impact of cutting tax credits that will happen in England, or not?
New clause 31 allows the Scottish Parliament to top up any reserved benefit in the UK and create any benefit in devolved areas, so there would be an ability to create a system that mitigates the reduction in tax credits. As I understand it, tax credits are not a benefit in terms of the system; they are done through the income tax system, so topping up tax credits would be outwith the scope of this arrangement, but there is no reason why under new clause 31 an additional benefit could not be put in place for people who are in work and have children, for example.
I am very pleased that we have managed to get cross-party support for new clause 31 and if the Government agree it, it would give the Scottish Parliament full autonomy on the welfare state, which I think is what the Scottish people and Scottish Parliament want. If the Government are going to support any amendment, I urge them to make it new clause 31, although I also recommend our other amendments.
I welcome the huge transfer of welfare and tax powers set out in the Bill, but I want to make one point about conditionality. Over the past 15 years or so one of the insights that has struck in the field of work and pensions and welfare is the idea that tackling poverty is not just about benefits; it is also about helping people into work, education and skills and removing barriers to work. Conditionality is part of that process, and it was introduced by Labour. It says to the taxpayer and benefit recipients, “Look, if we pay huge amounts of money to train a cadre of people in the jobcentres, if we hire expert companies to advise jobseekers and if we involve the disability groups in the process, as taxpayers we are making a big investment in trying to help people into work and end the dependency culture.”
Therefore, is it really right for somebody who has been offered an opportunity to go to the jobcentre for an advice session or training not to attend and not to explain why? When they are sanctioned, is it really right for us to say, “Oh, that doesn’t matter, because the taxpayer can just pay the bill and there will be no consequences at all”? That would be the effect of the two amendments that would take out the guts of clauses 22 and 23 and remove conditionality.
Does the hon. and learned Gentleman not accept these two points? First, 55% of people in receipt of benefits are already working, so they do not need help into work. They are on benefits, doing the right thing and trying look after their families, but they are the people who will be hurt by the reductions that the Government are proposing. Secondly, although I accept that those in receipt of benefits have responsibilities, the Work and Pensions Committee has said on two occasions, as the hon. Member for Banff and Buchan (Dr Whiteford) mentioned, that the sanctions regime is too fierce and needs to be adjusted. Does he not accept the Select Committee’s findings?
As the hon. Gentleman knows, I served on the Select Committee for many years. I accept that the sanctions regime needs to be reviewed and that it needs to work properly, but that is not the same as scrapping it. The amendments would undermine the regime so severely that it would be fatally damaged. I am not saying that there should not be a wide transfer of powers; I am simply asking Opposition Members to think about their taxpayers, about those people who are investing in services for jobseekers and all that help. Is it really right that there should be no conditionality?
(10 years, 11 months ago)
Commons ChamberI am grateful to have been called to speak so late in this debate. I apologise to both Front Benchers, and to most of the speakers who preceded me, for not having been here throughout the debate. I declare an interest as a former asbestos worker. I suspect that not many former asbestos workers have spoken in the debate. If they have, I suspect that they were from the Labour Benches. No disrespect to Government Members, but hearing from such speakers gives us greater insight into the issue.
I am a former fire brigade worker, and I suspect that I share the same background as the Minister of State, Department for Work and Pensions, the hon. Member for Hemel Hempstead (Mike Penning)—or is he right hon.?
He has not been promoted yet. When we worked in the fire service, we used asbestos anti-fire equipment; we had asbestos hoods and gloves. We are lucky: having worked for local authority fire brigades, we know our employers, know that they are insured, and can trace them. Should anything happen to us —goodness forbid—our families could track back and seek appropriate compensation for our early demise. Clearly, that is not the situation for thousands of other asbestos workers, especially those who worked in industries and businesses that have gone out of business or become defunct.
On the comments made by my hon. Friend the Member for North Durham (Mr Jones) about being able to track people, when I was the senior health and safety official at London fire brigade, I got management to agree that every member of London fire brigade who served before the withdrawal of asbestos equipment would have “asbestos-exposed” on their personal record file, so thousands of firefighters are covered. London fire brigade was great in making sure that that happened.
I share the Labour Front Benchers’ five key concerns about the Bill: that the level of compensation is lower than it should be; that other asbestos-related diseases have been excluded; the decision on the cut-off date; the clawback of benefits; and, most importantly, the level of research into asbestos-related diseases. We have some very strong points to make. It is clear that there is support in the other place, especially from senior Members on the Government Benches. I would be very surprised if Government Front Benchers in this House did not have great sympathy with a number of the points raised by the British Lung Foundation and other charities that provided briefings for today’s debate.
I look forward to the Bill going into Committee and to having discussions with Government Front Benchers. I look forward to them being as accommodating as they can be, because bringing the Bill forward is a great signal of their intention to deal fairly with the victims of asbestosis and those suffering from mesothelioma. I think that the Bill can be improved and hope that the Government see it that way, too.
(11 years, 6 months ago)
Commons ChamberI am sure that the trade unions play a part in bringing this matter to the attention of the authorities. Every complaint is investigated. Some come from the trade unions and I welcome the role that they play.
Further to the point that most activity surrounding non-payment of the minimum wage is conducted in the civil, rather than the criminal, courts, has the right hon. Gentleman’s Department made that information publicly available? If not, will he do that so that people can see, and a message can be sent, that the Government will not tolerate people trying to undermine the national minimum wage?
The hon. Gentleman makes the same point I was making. The Government are pursuing that matter through the civil courts and there are substantial penalties. It is an HMRC task, but I take the point that we should perhaps make the message more easily available. Employers should not get away with the idea that they should ignore this.
Let me say a bit about a difficult area of policy in which issues of unemployment and low pay intersect: migration, which is one of the most important reforms that the Government will introduce. I was hesitant about raising the subject because it is essentially covered by the Home Office, but substantial economic issues are also involved and it is important to refer to them. I was provoked into feeling that we should debate the issue in this context because a couple of days ago I was on the radio on the “Jeremy Vine” programme. I was following a female voice that was ranting on about millions of illegal immigrants and the negligence of the Government in letting them all in and not deporting enough people. I thought at the time that it was some fringe party that regarded Mr Nigel Farage as a sort of soggy, left-wing liberal, but I then realised it was the Labour shadow Home Secretary, and I tried to understand where she was coming from. It says quite a lot about the Labour party’s current values that it feels it necessary to apologise for letting in foreigners, but is still reluctant to apologise for wrecking the economy.
I vividly recall a conversation I had with a constituent, shortly before the last general election. She was taking me to task for what she said were millions of illegal immigrants in the country and, rather recklessly perhaps, I decided to debate the subject with her. I asked, “How do you know?”, and she said, “Well, I see them in the high street the whole time.” I said, “Okay, but how do you know they are illegal?” She looked at me and said, “Mr Cable, why are you being so difficult? You know exactly what I mean”, and pointed up the road to the Hounslow mosque. Unfortunately, beneath a lot of the arguments about numbers, that is the prejudice we are trying to confront. We must, I think, make the case—I certainly intend to make it—for managed immigration that has a positive impact on the country, while at the same time providing the necessary level of reassurance.
It is a pleasure to follow the hon. Member for Tamworth (Christopher Pincher), and I am pleased he had more time than his usual three minutes. Given that he agrees with the Opposition policy on national insurance contributions for small and medium-sized enterprises, perhaps he should be allowed to speak for longer more often. I also agree with him about shale gas. He made some excellent points, and it is good that the Government are moving on that. I would take him to task on his points about immigration, however. From my understanding of yesterday’s debate, of the five proposals in the immigration Bill, three are already law and two are going to be put out to consultation. I assure him that we will look very closely at the immigration Bill.
I join the hon. Gentleman in commending my hon. Friend the shadow Business Secretary for his trademark cool, thoughtful and constructive contribution. It was a perfect counter to the misplaced quiet optimism of the Secretary of State; I commend him on his quiet optimism, but I do not think there is evidence to support the idea that the proposals in the Gracious Speech will bear fruit.
Like the hon. Member for Tamworth, I hope not to detain the House for too long. I am grateful for being called to speak, particularly as I was not present for the Queen’s Speech itself, and nor was I here in the afternoon for the speeches that addressed it, as I had a health appointment in the morning and then attended one of the inaugural events for the commemoration of the battle of the Atlantic in the afternoon. As a former Vice-Chamberlain of Her Majesty’s Household, however, in years past it was part of my duty to the House not to be here for Her Majesty’s speech. It is therefore not unusual for me to be absent when Her Majesty turns up. I should tell the House that my experience of being held hostage in Buckingham palace—on behalf of Members, and in order to protect the safety of the sovereign—was slightly unnerving. When I discussed that with the head of the armed forces at the time, Sir Mike Jackson, and expressed the anxiety I had felt about the experience, he said to me, “Jim, you shouldn’t have worried.” I said, “Shouldn’t I have, Mike?” He said, “No, no; if anything had happened to Her Majesty, we would have made it quick—we would have just shot you.” That was not the most reassuring message I have had from Her Majesty’s armed forces, but I am sure he was being entirely serious and would have faithfully carried out those actions.
I missed yesterday’s debate as I was on an Industry and Parliament Trust visit to the ports of the great river Humber. I visited Hull, Immingham and the other Humber ports and heard about the plans for them. There is a planning application with the Secretary of State and I wish them well with that, because Green Port Hull is a very important piece of our shipping infrastructure, and is important for the development of wind farms in the North sea. It will be extremely important, and it is one of the projects that we want to see progressing as quickly as possible.
To try to catch up on what had been happening during my absences, I naturally turned to The Daily Telegraph, which is my usual paper of choice, of course—as we all know, we have great newspapers in the UK, but the Telegraph is my paper of choice. I was somewhat shocked when I read the column by the deputy political editor, Mr James Kirkup, which said this of the Gracious Speech:
“If politics is the art of the possible, then the Queen’s Speech makes clear just how little is possible for a coalition Government entering its fourth year”.
The article concluded:
“This low-key Queen’s Speech is a taste of things to come. The Coalition’s high noon moment has passed: the sun is now setting on this Government.”
I wish that were so, but sadly we have at least another two years of them to come.
Mr Kirkup was not outdone, although Louise Armistead reported in the “Business” section of The Daily Telegraph that the Prime Minister
“was accused of squandering his ‘last chance’ to unleash growth measures…The Institute of Directors (IoD) said the Queen’s Speech was a ‘missed opportunity’ for the Coalition to kick-start the economy”.
Especially from The Daily Telegraph and the IoD, who one would have thought would be cheerleaders for the Government, those are not the most complimentary comments.
I am very pleased to be here to raise some constituency issues and to support Labour’s alternative Queen’s Speech. For Poplar and Limehouse, the three big issues are employment, housing and the cost of living—which are very close to three of the six measures in our alternative Queen’s Speech, along with our plans for finance, banking and immigration, all of which were covered so ably by my hon. Friend the shadow Business Secretary.
On jobs, in my constituency there are 1,320 young people under 25 years of age claiming jobseeker’s allowance. The recent rise in long-term youth unemployment saw an extra 40 people out of work for more than a year in Tower Hamlets. In total, that is 275 local families who are concerned about their son or daughter being on benefits and not in work. My hon. Friend outlined the measures that would be in the jobs Bill we want to introduce, with a compulsory jobs guarantee paid for by a bank bonus tax. That could help 275 young people in Poplar who have been out of work for more than two years. As has been said from our Front Bench on a number of occasions, people would have to take up those jobs or lose benefits.
On housing, Tower Hamlets has more than 23,000 people on its waiting lists. It is one of the most overcrowded boroughs in the country. I was at an event this morning organised by Curtin and Co. at which Professor Tony Travers from the London School of Economics delivered a speech on London’s housing economy. Curiously, the event was held at the Savoy, somewhat in contrast to the topic under discussion. Professor Travers said the private rented sector is in need of “pretty significant regulation”. I have dealt with casework in Poplar and Limehouse about landlords who have withheld deposits, rented accommodation that has been far below standards and tenants who have been caught in financial difficulty due to hidden fees. That is one aspect of housing. More importantly, using housing and house building to kick-start the economy would provide jobs and address the real needs in my constituency and across the country.
Another problem that we have—unsurprisingly it is not exclusive to Poplar and Limehouse—concerns consumer issues. High energy costs and rail fares are two issues that affect people across the country. Our consumer Bill, outlined by my hon. Friend the Member for Streatham (Mr Umunna), would create a tough new regulator, abolishing Ofgem, and would require the energy companies to pool power, to open up the market and put downward pressure on prices. It would force energy companies to put all over-75s on their cheapest tariff, helping those who benefited to save up to £200 a year. It would introduce a new legal right for passengers to get the cheapest ticket for their journey and introduce strict caps on fare rises on every route. Those are basic protections for the consumer that are long overdue.
Like other right hon. and hon. Members across the House, I have received countless e-mails from constituents over many months on issues that did not appear in the Queen’s Speech, such as the plain packaging of cigarettes. The Under-Secretary of State for Health, the hon. Member for Broxtowe (Anna Soubry),was in her place at the beginning of the debate. She has championed that measure and strongly supported it whenever it has been debated, and many of us wish her success in trying to persuade the Government to introduce plain packaging for cigarettes, as that would undoubtedly save lives, as it has elsewhere in the world.
On international development, the absence of any legal status for the figure of 0.7% of GDP as aid is disappointing. UK taxpayers are very generous, but they want transparency, accountability and the targeting of aid.
Does my hon. Friend agree that that it is a touch suspicious that Lynton Crosby becomes the Prime Minister’s chief political adviser, Lynton Crosby’s consultancy firm was on a retainer from British American Tobacco to fight plain packaging, and plain packaging, which the Minister responsible for public health supports, disappears from the Queen’s Speech?
I have read the reports referred to by my hon. Friend about the connections of the Prime Minister’s adviser. My hon. Friend is very experienced at being attacked in the media, and I am glad that she has decided to have a go at the Government’s attack dog, because he will perhaps focus on the fact that she raised the issue and I did not. She makes a very good point, however, and I am sure that it has not been lost on many people out there that there might be a connection, although No. 10 says that that is a load of nonsense.
I was talking about international development aid and the expectation that the coalition might have enshrined in law spending 0.7% of GDP as our aid budget. I commend the coalition for sticking to the target. Many of us, perhaps unfairly, were surprised, but this is one of the coalition’s big successes, and I commend the coalition for it. I also commend the Government for the fact that we are trying to focus and target the aid and to use UK non-governmental organisations. We have some fantastic NGOs in the UK, including War on Want, Oxfam, Christian Aid, Muslim Aid and others, that we can use to ensure that the aid gets to where we want it to go and reaches people in need, rather than Governments who might want to spend it on other projects. The coalition is on the right track, but we would have liked the 0.7% figure to be enshrined in law.
Let me mention two other minor issues, which are perhaps less significant but are none the less constitutionally important. A register for lobbyists is missing from the Queen’s Speech, but it has been promised by the Government for some time. The public want to see greater transparency and accountability in this House and there is some disappointment that that measure has not been introduced.
Finally, a measure on the recall of MPs has been promised by the Government on a number of occasions. Such a measure would be supported on both sides of the House and would reassure the public that they have greater control over their elected representatives. I do not think that we have anything to fear from that, but the one or two Members who cross the line ought to have something to fear. Such a measure would easily get cross-party support and would not be difficult to pass into law.
I shall draw my remarks to a close; I said that I did not want to retain the House for too long, and I do not want this to be another broken political promise. As I said at the beginning, The Daily Telegraph and the Institute of Directors said that this was a missed opportunity—it is another missed opportunity. As my hon. Friend the Member for Streatham said, the economy is flatlining. Growth is much slower than is needed, borrowing is way up and, with the greatest of respect to the Secretary of State for Work and Pensions, the welfare bill is still rising.
This will be a lost decade without a change. We need a new direction, we need new policies and, in reality, we need a new Government.
Indeed. It is even worse because those who are graduating now are burdened with the debt of student loans, which the Deputy Prime Minister, when he was fighting the general election, said he would not bring in. I worry about those individuals. In the north-east of England, after the destruction of heavy industry under the previous Conservative Government, I saw how whole communities were written off. My fear is that we are writing off a whole generation of young people to long-term unemployment amid low levels of economic growth.
In the Queen’s Speech, as in much that the Government are doing, one has to look at the detail of the proposals. A lot of that is presented for the headlines, but it is worth looking at some proposals which do not have a great deal of substance to them. I shall refer first to the Mesothelioma Bill. Before I was elected to the House, I was a full-time trade union official and legal officer for the GMB. I dealt daily with people who were suffering from the effects of exposure to asbestos. It is heartbreaking to speak not only to the individuals who know there is a death sentence hanging over them, but to the families that they leave behind. Some of the victims are older, but many are young. It is a terrible disease. Some people can be exposed to quite high levels of asbestos and not have long-term health effects, but others are affected.
This country’s approach to asbestos-related issues has been a national scandal. After the second world war the Government wrote to employers organisations saying that exposure to asbestos was dangerous to health. Was anything done? No. We continued for many decades to deny that there would be any health effects. Successive Governments’ response to the issue is a shame and a scar. If the disease had affected middle-class communities in leafy Surrey, for example, it would be a front-page headline in every paper—it would be a national scandal. But because it is concentrated in the north-east and other poor communities who do not have the strong voice that other communities have, the victims have been overlooked.
The Bill builds on what the previous Government intended. We proposed setting up the employers liability bureau and a tax on insurance companies to pay for the individuals who developed asbestos-related disease and who could not trace the insurance companies of now-defunct employers. The Bill was trumpeted as a great step forward. Even a great journal such as The Shields Gazette announced:
“Asbestos victims across South Tyneside are set to share in a £355m compensation bonanza.”
Well, I just wish that local papers would write stories the old-fashioned way by having a journalist who actually understands the issue, rather than, as seems to be so common now, simply responding to press releases.
If we look at what is proposed, we see that it is nothing of the sort. First, it covers only those individuals who developed mesothelioma after 24 July 2012, so a whole group of mesothelioma victims and their families will get no compensation at all. Secondly, it does not cover other asbestos-related diseases like lung cancers, asbestosis and pleural plaques, so there is a group of individuals who, even after that date, will get no compensation at all. Even for the victims who will qualify for the scheme, there will only be a flat fee of 70% of the average compensation payout.
Also, the scheme will take no account of an individual’s circumstances. One of the youngest victims I dealt with as the union’s legal officer was 46 years old and had three young children. Under the scheme, if he could not prove who the insurance companies were, that would not be taken into consideration. That needs to be amended as the Bill goes through. It is important to remember that it is the trade unions that have fought over many years to ensure that those individuals get the compensation they are entitled to.
One wonders whether this scheme does not represent a very good deal for the insurance companies—I think that it does. The Union of Construction, Allied Trades and Technicians has worked to expose the fact that, simply by coincidence, from October 2010 to September 2012 Lord Freud, the Minister responsible for the scheme, met the Association of British Insurers, Aviva, Royal Sun Alliance and Zurich on no fewer than 14 occasions. That shows how effective their lobbying has been in limiting their exposure to the scheme, and that needs to be changed.
My hon. Friend makes an important point. As a former asbestos worker, from my time in the London fire brigade, I know a number of former colleagues who have died as a result of this disease. The medical evidence on asbestos has been known since 1928. I am very disappointed by what he is saying, because I did not realise that there has been some attempt to manipulate the story. When I read the headline about a compensation Bill, I thought that it was good news, but he is suggesting that it might not be as good as it is being presented in the media. We will have to look at that very carefully.
Like a lot of the things the Government do, we have to take the shiny wrapping off carefully and look at the contents. In so many areas we find that there is either very little in it, or a stinking mess of incompetence, which is now becoming a trademark of the Government.