Debate on the Address

Jim Shannon Excerpts

Wednesday 9th May 2012 Commons Chamber

[Mr Amess]

I remember that only too well because I happened to be in Japan with the now Foreign Secretary who was then the parliamentary private secretary to the Chancellor; I was the PPS to Michael Portillo, and we got called back. The hon. Gentleman wants to lead me down a track to do with Europe and shadowing the Deutschmark, but I shall not succumb.

I congratulate the Government on the banking reform Bill. Shortly after the election, the Chancellor announced the creation of the Independent Commission on Banking, which was asked to consider structural and related non-structural reforms to the UK banking sector to promote financial stability and competition. Any reforms should be implemented by 2019. No doubt there will be lots of discussion about this legislation, which I hope will at long last bring about fundamental reform of the banking system. It will include the ring-fencing of retail banking and measures on capital adequacy requirements. There will be radical reforms in the Bill which are needed entirely because the Labour Government and the previous Prime Minister completely destroyed the banking sector through what went on with the Financial Services Authority. They should be absolutely—[Interruption.] Some Labour Members, although not all, have a very short memory about what happened at that time. The financial crisis originated in the financial sector and so I believe that regulation is very important. London is the capital of the financial world and we need to lead the globe in these reforms.

[Jim Shannon (Strangford) (DUP)]

The hon. Gentleman has mentioned the legislation on changes to banking, which we agree with and look forward to. Does he think the banks should be listening to what is happening now so that they can make changes in anticipation of the legislative changes to enable small and medium-sized businesses to acquire the money they should already be able to get but which is being denied them at the moment? We hope the new legislation will give those businesses that opportunity.

[Mr Amess]

I absolutely agree with the hon. Gentleman. Some of the banks have forgotten everything that happened. They are not lending particularly to small businesses and I agree with him that they should act now rather than wait until the Bill becomes an Act.

The right hon. Member for—it is a Welsh constituency —[Hon. Members: “Dwyfor Meirionnydd.”] Well, it is in Wales. I am glad that the right hon. Member for Dwyfor Meirionnydd (Mr Llwyd) mentioned the draft Groceries Code Adjudicator Bill. In 2008, the Competition Commission conducted an inquiry into the UK grocery market, because of concerns that supermarkets were exploiting their supply chains. The right hon. Gentleman was spot-on with the points he raised. The draft Bill was published last year and will establish an adjudicator. The right hon. Gentleman expressed some concerns about the powers, and another Member—I think it was the hon. Member for Luton South (Gavin Shuker)—asked whether they should be in the Bill. It is good that an adjudicator will be appointed, with the power to investigate a grocery firm with revenue in excess of £1 billion if it is suspected of breaching the code relating to its suppliers.

It is vital that we do everything we can to help small businesses in these troubling times of austerity. That certainly includes grocery suppliers that are often family-run local businesses. There is no doubt that the major supermarkets have a monopoly in the United Kingdom grocery market, so I welcome any steps to prevent them from using their powers to leave their suppliers out of pocket.

[Jim Shannon]

The hon. Gentleman is right to mention the importance of having a grocery ombudsman. Over the last three years, 3,000 small businesses related to farming and the supply of large stores have gone out of business. That is a real concern. Does he feel that legislative change will prevent that and does he think it will come quickly?

[Mr Amess]

I believe that the Bill will achieve that end and that it will be effective. I know how tough things have been for farmers, particularly in Northern Ireland.

It is important to have a balanced grocery market, where suppliers get a fair deal. There will be further benefits for consumers, because they will be able to buy the best of British produce, which will make the market more sustainable.

The hon. Member for Hackney South and Shoreditch (Meg Hillier), among others, mentioned adoption and family matters. Pro-life Members will have been sad to hear that Phyllis Bowman died at the weekend. With the late Lord Braine, she did iconic work on pro-life matters and I pay tribute to her.

I was delighted to see that there will be a Bill on adoption and family matters. Some years ago, my hon. Friend the Member for Canterbury (Mr Brazier) introduced a measure on adoption, but we badly need updated legislation. It will remove the absurd barriers that make the adoption process difficult. A new six-month limit on care proceedings will be introduced in England and Wales, and the law will be changed to ensure that more children have a relationship with their father after family break-up. All Members get letters from constituents about that difficult issue.

I welcome the provision for mothers and fathers to swap their parental leave allowance after the birth of a child. The Leader of the Opposition said that the Opposition would support the measures. The Prime Minister is right to be passionate about giving children a good start in life.

I welcome the measures to deal with the royal succession that were announced by Her Majesty in the Gracious Speech. Very much in the future, when there is a change of monarch we shall have King Charles, but if Princess Anne had been the oldest child she would not have succeeded. Anyone who knows Princess Anne applauds her hard work; she does a wonderful job. I am delighted that there will be a change to the law on royal succession. As a Catholic, I suppose I am biased, but I am also delighted that Catholics will finally be allowed to marry into the royal family.

I am already sick to death of hearing about Lords reform, even before we spend 18 months going on about it. If anyone wants to know what is wrong with the House of Lords, I can tell them that it is the Labour party, which completely messed up the House of Lords without a plan for dealing with it. I do not address my remarks to Labour Members elected in recent years, but it was a bit rich to listen to speech after speech from Labour Members who condemned the House of Lords and everything it stood for, and the next minute accepted a peerage. There is no consistency.

When the Labour Government took office in 1997, they thought for narrow class reasons that they would get rid of the House of Lords—all those hereditaries, all terribly posh—but there was no actual plan for reform. As a Conservative Member of Parliament, I am totally against the Americanisation of our system, so I am opposed to a wholly elected second Chamber, which would definitely be in competition with this place. I agree with the hon. Member for Hackney South and Shoreditch, who asked how it could be fair to have Members elected for 15 years. It certainly is not fair. I hope that we shall not waste hours and hours of precious time arguing about House of Lords reform. I know that the Liberals are keen on it—