Religious Slaughter of Farm Animals

Jim Shannon Excerpts

Tuesday 2nd July 2019 Westminster Hall

[George Eustice (Camborne and Redruth) (Con)]

I beg to move,

That this House has considered the religious slaughter of farm animals.

Before I get to the issue in the motion, I must say that free votes in the House are wonderful. Those moments when the party structures and the Whips withdraw from the debate—when there are no Whips to point to which Lobby to go through—allow each individual to engage with an issue using their own reason and judgment and can be incredibly refreshing for our politics. Some of the best-quality debates in Parliament take place under free-vote conditions. Cross-party alliances form and, in the end, the House tends to arrive at a sensible and proportionate consensus.

Of course, the party system developed because, if there were free votes on everything, the Government would not be able to get anything done or deliver any of their manifesto commitments, but issues of ethics and religious conviction have always been universally accepted as free-vote issues. For instance, we have free votes on same-sex marriages and on contentious issues such as abortion. My key contention is that religious slaughter should be made a free-vote issue by every party in the House.

Whitehall feels awkward about dealing with this complex issue and it is not sure what to recommend to Ministers. Governments of all shades have tended to leave the issue in the “Too difficult to address” box and have talked themselves into a stance that says, “Now is not the time to deal with it.” If we made it a free-vote issue for the House, we would liberate the Government of that burden of responsibility and, more importantly, liberate Parliament to address the issue.

[Jim Shannon (Strangford) (DUP)]

I spoke to the hon. Gentleman beforehand to get his thoughts about what he was going to say. In my council area of Ards, there was an abattoir that carried out some of the ritual killings and stunned and so on. It created jobs and stability and there was a system in place, which seemed to be acceptable. Is he looking for changes in the methodology of killing or does he want to stop it entirely?

[George Eustice]

I will go on to advocate a package of measures to improve our law, having looked at the issue in some depth. I would stop short of banning it altogether, but we could make major improvements, which I will come to.

The history of our current derogation is long. The first regulations governing abattoirs and the humane treatment of animals in them were introduced through the Public Health Act 1875, which said that all animals should be “effectually stunned”. In 1904, a committee of the Admiralty considered in some depth the right methods of slaughter to deliver humane outcomes for animals and recommended that, without exception, all animals should be stunned. Subsequently, however, the Local Government Board issued a circular that drew on the advice in the 1904 report. It recommended that, as a general rule, all animals should be stunned prior to slaughter, but it created what has become a long-standing religious derogation for Jewish and Muslim communities.

Co-operative and Mutual Businesses

Jim Shannon Excerpts

Thursday 27th June 2019 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in support of the motion standing in the names of the hon. Members for Harrow West (Gareth Thomas) and for Wycombe (Mr Baker). I thank the hon. Member for Harrow West, in particular, for the massive contribution he has made, over the time I have been here but also long before that, to support co-operatives and mutuals. We all appreciate that greatly. I concur completely with the sentiments set out in the motion, especially those relating to the contribution that co-operatives and mutuals play in the economy of the United Kingdom, which I believe is much under-appreciated. I therefore want to add my support to co-operatives and mutuals, with a particular focus on credit unions, which I know best, as they feature greatly in my constituency.

Recent years have witnessed an increase in the number of co-operative and mutual businesses being set up in Northern Ireland, after many years when none was established. Analysis by Co-operatives UK in the early part of this decade found that co-operative enterprises in Northern Ireland contributed £35.6 billion to the UK economy—that is over a period of time, but it is still a massive amount of money.

I want to highlight a couple of examples to showcase the growing strength and vibrancy of the co-operative and mutual sector in Northern Ireland, because sometimes society does not appreciate what co-operatives do. The hon. Member for Stroud (Dr Drew) referred to agriculture. As a Member who represents a largely rural constituency, I know how crucial co-operatives have been to the size and success of our local dairy industry. One example is Lakeland Dairies, which has a factory in Newtownards, the main town in my constituency, and employs more than 220 people there. It is part of a cross-border co-operative business that processes 1.8 billion litres of milk a year. It has two factories in Northern Ireland and two in southern Ireland. The co-operative model has served the farmers, who are its members, well down through the years—they contribute to its policy and vision—providing them with an outlet for their production and, importantly, a say in the overall direction of the business. All that experience and knowledge points to the direction we need to go in.

Perhaps the single best example of the increasingly strong and vibrant co-operative and mutual sector in Northern Ireland is our credit union movement, which is massive. I will give some figures because I am not sure that all Members realise just how important credit unions are in Northern Ireland or the massive contribution they make. Credit unions are, of course, common to all parts of our United Kingdom, but they have woven themselves into the fabric of society in Northern Ireland in a way that has not happened elsewhere across our nation. Credit unions are a feature of my constituency, as we now have three or four of them. When one of the branches closed down in Greyabbey, a village just down the road from where I live—I opened accounts there for my three boys many years ago—it integrated with the branch in Newtownards.

People such as my old running mate Tommy Jeffers in Dundonald have given a lifetime of hard work to establish, run and expand credit unions across Northern Ireland. He was the instigation and strength behind that credit union, and although he is now in his mid-70s and no longer a councillor—that is how I first got to know him, as well as through party connections—he is still involved in it. The movement has been built by hundreds and hundreds of hours of work by volunteers. They have made a massive contribution.

[Gareth Thomas]

One credit union that spoke to me ahead of the debate wants to open more branches on the high street, to help plug the gap left by mainstream bank branch closures, and it wonders aloud whether the Government might be sympathetic to the idea of extending business rates relief to credit unions seeking to open business branches. Does the hon. Gentleman think that could also help facilitate the greater spread of the credit union movement in Northern Ireland?

[Jim Shannon]

I thank my honourable colleague for that intervention. I am sure that the Minister is listening and hope that he will take on board that suggestion, which could be very helpful. I wholeheartedly support that suggestion. This is not the Minister’s responsibility, but I have had discussions with other Ministers about help with high street rates.

It should be borne in mind that credit unions are for their members. The members invest their money to lend their money. It is a fantastic opportunity, and a fantastic example of how lending should be looked upon. The big banks should note that example. It should not be all about dividends for shareholders; it should be about the customers—those who are involved.

The Northern Ireland movement is massive in comparison with its counterparts in Great Britain. Statistics collated by the Bank of England in each quarter show the scale of credit unions in Northern Ireland in comparison with that of their counterparts in the rest of the United Kingdom. Of the 437 registered credit unions in the UK, 145 are located in Northern Ireland. A third of all adult credit union members in the UK are in Northern Ireland, and four in 10 juvenile members are from Northern Ireland. We are encouraging our young people to open accounts early—although, to be fair, that will probably be done by their parents or, perhaps, by their grandparents, who open accounts for them to start them off. It is good to encourage young people to be part of a bank, to save money, and thereby to see the benefits of credit unions. As I have said, it is a fantastic opportunity. If Members have not had an opportunity to investigate or gain knowledge of what is happening in Northern Ireland, I suggest that they should.

[Jim McMahon]

I had the pleasure of being in Belfast over the weekend for a Co-operative party event organised by Tony McMullen, a fantastic advocate for co-operatives. The party has published a manifesto for co-operatives in Northern Ireland. Perhaps the hon. Gentleman will read it and convey to the UK Government what we might take from Northern Ireland’s leadership in this regard.

[Jim Shannon]

I should be more than happy to do that. I read in the paper that the hon. Gentleman was the guest speaker at that event.

Our credit unions are clearly punching well above their weight, as so often happens in Northern Ireland. This is yet another example of what we do well there. I know from experience in virtually every corner of my constituency how vital credit unions are in helping some of the most marginalised in our society to save their money and borrow at very competitive rates. As was pointed out by the hon. Member for Harrow West, they have often filled the gap left by bank closures. They filled that gap when banks closed in Newtownards, and they filled it by opening a brand-new office in Kircubbin on the Ards peninsula—where there had previously been a branch of the Danske Bank—to supplement the branch in Portaferry.

Credit unions fill the gap on many occasions, and have a great interest in the community. A recent article in the Financial Times recognised the role that they play in our community beyond simply lending money and providing facilities for saving, explaining how they can and do help to squeeze out loan sharks, who cause a great many problems in Northern Ireland. They lend money and then take exorbitant interest rates from the backs of people. They are a scourge on society, including my Strangford constituency. They prey on the most vulnerable among us, and have ruined countless lives. I want to place on record my thanks to the credit unions throughout the United Kingdom of Great Britain and Northern Ireland whose service is helping many to break away from the grip of criminal moneylenders.

Despite the apparent strength of loan sharks, however, there are still significant opportunities in credit unions in Northern Ireland. Again, I agree with the motion: we must look to Her Majesty’s Government to work with the credit union movement, and the co-operative and mutual sector as a whole, to fulfil that untapped potential. More can be done with a little help. We have heard two suggestions in interventions, and other ideas are being presented.

The regulation of Northern Ireland’s credit unions moved from Stormont to the Financial Conduct Authority in 2016. I ask the Minister to engage with the credit unions in Northern Ireland—and, indeed, throughout the United Kingdom—and to help them to, in turn, work with the FCA to help them to grow further, and, furthermore, to help us to deal with problems such as financial exclusion.

Let me say in conclusion—and I realise, Madam Deputy Speaker, when I hear that cough I must take note of it—that there is an increasing desire across our nation for a different growth model for our economy. The hon. Member for Stroud referred to an alternative. We need a good alternative that can be successful, and this is the one: one in which the interests of workers and people are not overlooked, but rather are to the fore; one in which there is a greater sense of partnership between all the actors in our economy. Co-operatives and mutuals are already an incredibly important part of our economy, and they can be greater still. Northern Ireland is an example of their importance. I join Members in all parts of the House in recognising their existing contribution, and calling on the Government—and the Minister in particular—to work with the sector and help it to grow even more and benefit more people.

--- Later in debate ---

[John Glen]

As ever, the hon. Gentleman has anticipated my future remarks. I have met representatives from those institutions on several occasions recently.

The examples given today show that regulation and innovation are not mutually exclusive, and that building societies are able to adapt to serve the changing needs in our society. Members have highlighted the need for a proportional regulatory approach, so that building societies can effectively compete with the big banks. The Government are committed to ensuring that capital requirements are implemented proportionately in order to support smaller lenders, such as building societies. The recent updates to the Basel international standards are a clear positive step towards more proportional capital requirements.

The Government have a clear commitment to implementing those standards and refining capital requirements in the UK. That is demonstrated by the inclusion of the capital requirements regulation II in the Financial Services (Implementation of Legislation) Bill. Where we identify other barriers holding building societies back, we have acted to remove them. For example, one of the first pieces of legislation that I brought forward as Economic Secretary was to enable building societies to join central clearing houses.

I know how vital credit unions are for the people and communities they serve, and I am pleased to see the strength of support across the House today. Building up savings with a credit union, or having the opportunity to take out a reasonably priced loan, is one way that we can prevent people from having to turn to high-cost credit or loan sharks. The Government have acted to support credit unions by legislating to increase the common bond from 2 million to 3 million potential members and raising the cap on the interest rate credit unions can charge from 2% to 3%.

The hon. Member for Harrow West asked about insurance mediation and the provision of hire purchase, and my hon. Friend the Member for Stafford referred to the impact of regulation on credit unions. ABCUL, the largest credit union trade body, is currently carrying out a sector-wide consultation on the future of credit unions and will complete its work in September. The consultation will consider the legislative framework and opportunities for further change. I will consider the outcome of that consultation with interest. I visited ABCUL’s conference in March and have had an active dialogue with the organisation while in office. The co-ordination of its requests has been somewhat fragmented over multiple trade organisations, but it has been helpful in conducting the consultation, and I look forward to taking things forward.

In last year’s Budget, we announced an affordable credit package to support social and community lenders. The package included a £2 million affordable credit challenge fund designed to generate innovative FinTech solutions to address challenges faced by social and community lenders, including credit unions, as they try to match the broader innovations in financial services. It also included a measure to make it easier for registered social landlords to refer tenants to credit unions, and a two-year pilot of a new prize-linked savings scheme offered through credit unions. The package is designed to support the credit union sector through increased membership, awareness and deposits, as well as encouraging participants to build up savings to help them cope with financial shocks. We used examples from other jurisdictions —the US in this case—to inform that policy.

I am pleased to announce today that we have selected 15 credit unions from across Great Britain to take part in the prize-linked savings pilot. They are East Sussex, Lewisham Plus, London Capital, Clockwise in Leicester, Nottingham, 1st Alliance, Merthyr Tydfil Borough, Riverside in Liverpool, South Manchester, Central Liverpool, Bradford District, Westcountry in Portishead, Commsave, Police, and Plane Savers. I congratulate the successful credit unions and look forward to seeing the pilot up and running as quickly as possible.

[Jim Shannon]

I am sure that I must have missed it—I hope I have—but did the Minister mention whether Northern Ireland is in the pilot scheme?

[John Glen]

I did not mention Northern Ireland in that list, but Northern Ireland obviously has a strong tradition in this area. There was a competitive process, and I would be happy to talk to the hon. Gentleman about a specific credit union.

Members from across the House have spoken of the benefits of the co-operative model and its potential to improve our public services and strengthen our communities. This Government have a strong track record of support for co-operatives. We passed the Co-operative and Community Benefit Societies Act 2014 to reduce legal complexity for co-operative and community benefit societies. My hon. Friend the Member for Wycombe spoke about the apparent inadequacy of that legislation, but we have introduced a range of legislative measures in addition to the consolidation Bill since 2014, including making it easier to register digitally as a co-operative.

We have also reduced red tape by equalising the audit treatment between small co-operatives and small companies. I am pleased that the Financial Conduct Authority, which runs the UK mutuals register, recently made several practical changes to support mutuals, including simplifying the forms, creating an online portal and removing the fees to access documents. Members also raised the challenges that co-operatives face when raising capital. We recognise that that can be an issue, which is why in 2014 we increased the amount of share capital that an individual member can put into a co-operative society from £20,000 to £100,000, and I am happy to consider further proposals. We have looked at some proposals before, but I am happy to re-examine them.

Some Members called for changes to social investment tax relief, which is designed to incentivise investment in social enterprises that are constituted to provide a social or community benefit. Community benefit societies, a form of mutual, may therefore be eligible, as their purpose is to benefit the wider community. Although other forms of co-operatives and mutuals may have a wider community benefit, it is not central or essential, and their primary purpose is to benefit their members.

The Government are currently conducting a comprehensive review of social investment tax relief to better understand what impact it has had on access to finance for social enterprises. The public call for evidence is currently open, and it closes on 17 July. We will publish a summary of responses later this year.

I recently met representatives from across the mutual sector at a session hosted by Co-operatives UK and Nationwide. We discussed some of the opportunities and challenges facing mutuals, many of which have been raised by Members today. Following the session, Treasury officials will host a mutuals workshop with Co-operatives UK in July to investigate in more detail some of the barriers faced by mutuals. This will be a good opportunity to explore how the sector and the Government can work more closely together and, importantly, how mutuals can build closer links across the sector.

The latest estimates show that public service mutuals in healthcare and other sectors are delivering more than £2 billion-worth of services across England. They are driving innovation, too, with two thirds saying that they have created new products or services over the past year. Over the last three years, the Office for Civil Society has been delivering a £3.5 million programme to help new mutuals to emerge and existing ones to thrive. It has run several roundtables to create a proposal on the future definition of public service mutuals, which is planned for launch this summer.

I thank all Members for their contributions today and for their ongoing support for the co-operative and mutual sector. I am pleased to see that the sector continues to thrive, from the building societies that can trace their origins back hundreds of years to the newest entrants to the market. I recently met the executive director of South West Mutual, who is from Plymouth and is working with the Royal Society for the encouragement of Arts, Manufactures and Commerce to develop proposals for regional co-operative banks across the UK.

The demand for a new form of co-operative finance is a good sign, and the public appetite for co-operative and mutual services remains strong. This Government will continue to be a strong supporter of the mutual sector. Like hon. Members present today, I will continue to advocate for the sector’s considerable contribution to ensuring that our economy serves the needs of everyone in society.

Disabled Access: Thirsk Station

Jim Shannon Excerpts

Wednesday 26th June 2019 Commons Chamber

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I am grateful to you for granting this important debate, Mr Speaker, because train travel has never been more popular or important. Around 20,000 miles of railway track criss-cross our island, and altogether we made 1.8 billion rail journeys last year—a 3% rise on the previous year. I am a frequent rail user, boarding a train every week at York or Thirsk that whisks me to Westminster to represent my constituents, and then boarding another to return home to glorious North Yorkshire in time for my surgeries and visits at the weekend. Importantly, this week the Government legislated for a target of net zero carbon emissions by 2050. Using public transport is one way that we can help to tackle climate change and improve air quality.

[Jim Shannon (Strangford) (DUP)]

This week, most Members across the House took the decision to drive for that net zero carbon outcome for the UK, but that can be achieved only if more people make use of public transport. The fact that those who are disabled are precluded from using many railway stations, such as Thirsk, due to the lack of facilities is absurd. Does the hon. Gentleman agree that the Government must, in future policy relating to climate change targets, enable all people to travel on public transport, not just those who are able-bodied?

[Kevin Hollinrake]

The hon. Gentleman is absolutely right. As I will say later, around 40% of stations do not have access for disabled people, and we know that disabled people are accounting for a greater and greater proportion of our population, so this is hugely important. I am grateful for his intervention.

We need to encourage train use for all users and facilitate access to stations. Trains allow us to commute and explore the length and breadth of our country, from Thurso in the very north of Scotland to St Ives in Cornwall, both of which, I must mention, are replete with step-free access for disabled passengers. This is the essence of the problem: these essentials cannot just be for those who are in the physical prime of their life. Trains and the 2,500 stations that they pass through should be made more accessible for everyone. Everyone, including disabled people, the elderly and parents pushing prams, should have the same opportunity to travel by train.

In particular, Thirsk railway station in my constituency is in need of accessibility improvements, which will make a real difference to people’s lives. As with most stations, trains travel through Thirsk extremely quickly—I have stood on the platform when trains come through at over 100 miles an hour—but Thirsk is unique in that it has an island ticket office and platforms stationed between the tracks. Concrete steps are the only way to access the ticket office and platforms. Passengers must reach the ticket office and both platforms by navigating a barrow crossing the high-speed railway line. This can be a very difficult and even traumatic experience for the elderly, disabled passengers, parents with pushchairs or people heaving heavy suitcases. Thirsk is not alone: 40% of railway stations in England, Scotland and Wales do not have step-free access, and research found that over a third of working-age disabled people had experienced problems using trains in the last year as a result of their disability. A solution is much needed.

The railway industry is on the right track: it is encouraging more people to travel by train using the disabled persons railcard; carriages have been adapted; and I regularly see ramps on platforms, and kindly staff going above and beyond to facilitate access for passengers. Information is also improving and becoming more widely available to disabled users. National Rail has published an access map online, which is a great resource for disabled passengers, but it also highlights the limited access they have to railway stations in my constituency. I quote the entry for Thirsk station:

“customers should note that access to all platforms is via a barrow crossing”—

Gambling Levy: Online Gambling and Greyhound Racing

Jim Shannon Excerpts

Tuesday 25th June 2019 Westminster Hall

[Neil Parish (Tiverton and Honiton) (Con)]

I beg to move,

That this House has considered the gambling levy from online gambling and racing greyhounds.

It is a pleasure to serve under your chairmanship, Mr Paisley, and to lead this debate. In 2016, as Chair of the Environment, Food and Rural Affairs Committee, I led an inquiry into greyhound welfare. At the time, we found that there was a distinct lack of data, the regulation was not strong enough, the inspection regimes were insufficient, and there was poor welfare in parts of the greyhound racing industry. We recommended improvements in each of those areas, but funding continues to hold the key to lasting improvements.

I compliment the industry on going forward in many ways. Today’s debate is not about finding fault with the industry; it is about concentrating on the betting industry and the £2,500 million a year that is bet on greyhound racing, and ensuring that enough of that gets to animal welfare charities and the industry in order to make the life of retired greyhounds so much better.

[Jim Shannon (Strangford) (DUP)]

My grandfather kept greyhounds, so there is a particular interest in them in my family. I agree that these dogs are not simply assets; they are living and breathing, and deserve a minimum of care. A small statutory levy may well bring about that standard of care. Does the hon. Gentleman agree that a 1% levy will not break the bank for the bookies, but will help a poor animal to avoid a broken leg from inadequate nutrition and the strenuous nature of the races it is involved in?

[Neil Parish]

My hon. Friend—I believe him to be my hon. Friend—raises a very good point. Not only would 1% not break the bank for the betting industry, but without greyhound racing the gambling industry would lose £2,500 million a year. I will be quite blunt: I think it is criminal that the industry does not pay 1% or more—1.5% or even 2% if necessary. There is no point in imposing a levy for the sheer sake of it, but we have to remember that back in 2008-09 we were on some £14 million. Since then, the amount has probably halved. We are building it back up to £10 million now, but I would like to see around £20 million going towards rehoming greyhounds.

The public demand good welfare—it is also in the interests of the industry—and for the betting industry to deliver that money. Otherwise, there will be huge pressure not to have greyhound racing at all. That is the point I stress. The amount of welfare funding at the moment is a voluntary 0.6%. I will talk about the good companies that come up with that. Previously, too few betting companies have coughed up the cash, and there are still a few more to go—especially online betting companies based overseas.

I congratulate the Minister, and her predecessor, my hon. Friend the Member for Chatham and Aylesford (Tracey Crouch), on getting the bookies around the table, and on getting them to contribute to the British Greyhound Racing Fund, which was set up to protect greyhound welfare. I also congratulate the betting companies themselves—Betfair, Betfred, Sky Bet and William Hill—that have committed to meet the 0.6% target in January in this year, raising a projected £3 million a year. That will take the total amount raised up from £7 million to £10 million.

However, too many companies still do not contribute. Many independent bookmakers, and a growing overseas betting presence, do not pay their fair share. Not only is it wrong from the point of view of the greyhounds’ welfare, but it is wrong for the rest of the betting industry, because if some companies are making that donation so should they all. Bookmakers profiting from greyhound racing have a responsibility to support it, whether they trade on the high street or online. Of course, high street bookmakers have contributed and still do.

When we consider that £2,500 million is staked annually on live greyhound racing in the UK, the welfare conditions of some of those animals remain shocking. They are improving, but with more money they could be much better. Greyhounds bred for racing are animals, not assets. They are gentle, athletic breeds. They feel pain, whether due to damaged limbs or dental problems, and they need love like any other dog. We must ensure that all kennels are up to scratch.

I thank the Greyhound Board of Great Britain for all the work that it does inspecting and helping to raise standards, and I thank the Kennel Club, the Greyhound Trust and other welfare charities for the great work that they do in rehoming greyhounds. An increase in cash for the British Greyhound Racing Fund would make a great difference to greyhound welfare. Even the commitment made in January for the betting companies to reach 0.6% merely reverses a decade-long trend of drastically declining income from the voluntary levy paid by bookmakers.

Income for the British Greyhound Racing Fund has fallen by half in the last 10 years, from £14 million in 2008-09 to just £7 million last year. While online betting continues to thrive, retail betting is suffering. Some 60% of BGRF funding currently comes from retail betting, but the introduction of the £2 maximum stake for fixed odds betting terminals which, by the way, I am very much in favour of, will result in a decline in the amount of money received. That is why we need to increase the percentage of the levy.

A statutory levy that targets greyhound betting equally, levied on all bets placed on UK greyhound racing, will be fair on betting companies and on greyhounds. A strong greyhound welfare system requires strong long-term financing. Take horse-racing as an example. The horse-racing betting levy covers the gross profits of all gambling operators offering bets on horse-racing in Great Britain. Last year alone, the 10% statutory levy on profits generated around £100 million to support infrastructure improvements, a reduction in injuries, better data and higher prize money.

A similar statutory levy on greyhound racing, but based on 1% of gross turnover, would generate £11.6 million for greyhound welfare. A levy of 1.5% would generate £17.5 million. That is where I would like it to be at the very least, because I do not believe that it would affect the industry very much at all. In fact, it would make for a stronger industry. Immediately, the money would provide a more stable income stream for animal welfare activists and charities that improve kennelling standards, pay for veterinary bills and rehome greyhounds. It would also create an even playing field between contributing bookies.

As the sixth most-watched sport in Britain, the welfare and care of all racing greyhounds, from registration to retirement, must be a fundamental part of its successful future. Last year, 4,963 injuries were sustained by dogs in the greyhound racing industry. We welcome the industry giving those figures, because that was something that we put in our report. Almost 1,000 died or were euthanised. I do not want greyhounds to be euthanised because it is not economic to keep them going. That simply should not happen. Enough money should come from the betting industry to rehabilitate those dogs and get them rehomed.

A campaign is under way to ban greyhound racing altogether. I believe a statutory levy will better protect welfare and the industry in the long run. The industry should embrace that—if it does not, greyhound racing will be under pressure in future. It is wrong of the companies not to embrace the levy and pay more. I congratulate the Minister and the gaming companies that have contributed a voluntary levy on their hard work, but I urge her to do more and greater things to get more money out of the gaming industry.

After Brexit, the Government should come forward at the earliest opportunity with primary legislation to introduce a statutory levy, to equalise welfare contributions and protect greyhound racing. Believe it or not, the statutory levy on horse-racing was introduced before we joined the EU, and it is quite difficult to introduce a levy under EU law. As we leave the EU, we can put a statutory levy on online gambling and racing greyhounds. I would very much welcome that, because putting it in place would bring into line a lot of the gambling companies that are not paying at the moment. We in this House, and people across the country, all want our greyhounds to have a good retirement. Let us ensure that those that can be rehabilitated after racing have a good life. We can then have a good industry that is well run with good welfare conditions that are well funded by the gaming industry.

Pet Identification

Jim Shannon Excerpts

Monday 17th June 2019 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Member for Linlithgow and East Falkirk (Martyn Day) for bringing forward the debate and setting the scene so well, and I thank the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) for his contribution.

I am well known as a dog lover. I cannot remember not having had a dog as a pet since I was very young, many years ago in Ballywalter. My wife has volunteered at Assisi Animal Sanctuary for many years and often sees the effects of unwanted and abandoned pets. It breaks her heart and brings a lump to her throat—and perhaps even to mine—to tell me some of those stories. My wife has had cats nearly all her life. I never had a cat until we married. My dogs and her cats came together as she and I came together. I am not sure whether that is why we did so, but that is the way it happened. As a result, we have always had a love for cats.

We live on a farm. Because we own the land, whenever our animals or pets have passed away, we have been able to bury them on the farm, but that is not the case for everyone. I believe that when we are able to bury our dogs and cats on the farm, they may still roam the fields—not physically, but perhaps in their afterlife, wherever that may be.

Microchipping has helped with the abandonment of animals on some scale, but certainly more needs to be done to ensure that those who keep animals are able to do so. I have heard a few people say that homing an animal is as difficult as adopting a child. That is said tongue in cheek—let us be honest—but I am glad that it means the decision to house a pet is measured and well thought out. Assisi, where my wife volunteers, does not allocate a pet—a dog or a cat—to any home without first doing a home visit to ensure that the person is ready to give a home to a dog or cat, is in the frame of mind to do so and, let us be honest, has a home that can give the pet the freedom it needs. For many elderly people, pets can be companions, but it would not be fair for someone disabled or elderly to have a springer spaniel—a very energetic dog—that would run them off their feet. Therefore, pets must be allocated. My wife does home visits, so she knows how important they are.

Some 140 of my constituents signed the petition, which is the reason I am here today, but I am confident that I represent many more people who did not sign the petition but agree with its sentiments. Many people want to see the issue addressed appropriately. Although the law says that people do not need to report hitting an animal with a car, the reality is that that leaves a family heartbroken, not knowing what has happened to their beloved pet.

Many years ago, I was out doing deliveries for the business that I used to have and I came up the Darragh Road in Comber. A cat had been killed that morning and the woman was standing at the side of the road in tears. She asked me whether I would scoop it up and put it in a bag, which I was happy to do. The problem was that, as I was doing that, people thought that I had run it down, which I obviously had not. I was trying to be a good Samaritan and respond to that lady. I understood how heartbroken she was, however, because that was her pet—her cat, her love and her companion.

The petition provides a simple solution. If an animal is found, an effort should be made to find the family and allow them to deal with it. To do that, we need to push for people to get their cat microchipped to ensure that any new regulations are worth it. I am glad that Cats Protection in Northern Ireland has a scheme that enables cats to be neutered for £5—many other schemes across Northern Ireland and the United Kingdom are run by volunteers and charitable groups. The offer is open to owners who are receiving state benefits, who are on a low income, who are students or pensioners and who live in Northern Ireland. Microchipping is also available under the campaign at some participating veterinary practices, which may incur a small additional £5 fee. Assisi, the charity that my wife works for, also has a policy of neutering all cats, so there is some control. We cannot ignore the good work that charity groups do across the United Kingdom of Great Britain and Northern Ireland.

Those who microchip their cat obviously care for the animal and deserve a modicum of care in response from their council. I have written to my local council—Ards and North Down Borough Council—to ask whether it will co-ordinate the effort put forward by Cats Protection. I served on the old Ards Borough Council for 26 years and came off it when I was elected to this place in 2010. To be fair to the council, when it is asked by the general public to call out and collect a dead dog or cat, it does so without any coercion as part of its commitment to local pet owners, not because there is a written rule, but because it wants to respond to the general public. I congratulate it on being so responsive and community-based on the matter.

In our house, we have three cats and one dog, which all came from charities. The dog came from a bad relationship and had been abused as a pup. It was nervous when it came to us, but it is now very confident and sees the house as its house, rather than anyone else’s. The cats were all strays or from charities. The hon. Member for Plymouth, Sutton and Devonport referred to the name of his cat earlier. Ours are called Nicholas—I am not sure why; it sounds very royal—Muffins and Podge. The three cats are totally different and have different personalities. Two of them stay in the house all day while the other one hunts all day. Living on a farm, I get quite annoyed when the cat brings home some of its trophies, and my wife hates it more than anybody, but that is their nature—they hunt.

There are heartbreaking posts on Facebook, in the local papers, in the provincial papers and in shop windows that ask, “Have you seen this cat?” The children get so upset, but something can be done. That is why I am happy to speak in the debate and add my voice, along with the hon. Members who have spoken and those who will speak, to the 107,062 signatories of the petition. I ask the Minister to begin the work that needs to be done to ensure that the petition’s calls are answered and that people know their loved ones have been respectfully put to rest and are not lying in a dump somewhere.

The Minister has always been responsive to our proposals. Our personal discussions with him, and the discussions of others, have indicated that he will probably give us the response that we wish for, which I look forward to. I support the petition’s calls and look forward to hearing how the Government intend to respond positively and definitively to make them happen, and to let all those 107,062 signatories of the petition know that the Government work for them.

Local Bank Closures

Jim Shannon Excerpts

Wednesday 12th June 2019 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this debate, Ms Ryan, and I congratulate the hon. Member for Moray (Douglas Ross) on having secured it. While I am always pleased to support any debate that the hon. Gentleman secures, I have a deep interest in this particular topic.

I used to come to these debates and talk about my rural areas and social isolation. As I did that, bankers nodded at me, all the while pushing on with their plans to close rural banks, which succeeded. The last banks in the Ards peninsula in my constituency closed over a year ago, although to give a bit of credit to Ulster bank, I highlight the fact that it provided a mobile bank and a customer adviser on a weekly basis. That has been useful, so some of the banks—one of the banks, anyway—took the opportunity to do something.

These closures mean that much of my constituency has no local branch. When that is paired with the fact that some areas of the peninsula are using dial-up internet, the isolation becomes incredibly clear. However, according to the banks, the numbers did not tally, and the customers could be relocated to another branch—how frustrating it was to watch that. It was fine until the closures started hitting the main town, Newtownards, which has a population of some 30,000 and serves the Ards peninsula. We saw the First Trust bank close, as well as the Bank of Ireland branch. Someone from Portaferry, some 30 miles down the road, has to travel to Bangor or Belfast simply to speak to their local bank.

I thank God for Danske bank, Ulster bank, Santander and Nationwide, which have carried out enhancements to their Newtownards branches. Those enhancements show their dedication to the local area, and I highlight them to anyone who asks me about those banks. I much prefer to work and do business with those who are prepared to have a local branch, paying rents and providing a service. Most people now are doing things online, which is phenomenal for the people whose lives are made easier by doing a lot online. My parliamentary aide is at that all the time—she is always on the app, moving her money around to cover bills, which is great—but at lunch time she goes down to Nationwide to lodge money in the children’s accounts; she has access to the banks and can do transactions there. How much more is this a case of enforced technology for people my age or older?

I will give Members a real example: in the six months before the consultation on closing one of the banks in Newtownards, a staff member had been designated to stand in front of the counter and ask people in the queue if they could help get them online and do their transactions online for them. The bank then raved about the uptake of online banking. That is a slight false economy when a staff member had to stand patiently with the customer, who got to jump the queue and get what they wanted if they had talked to that staff member. In addition, the banks began to say, “We have to charge a fee, but if you do it online yourself, it is free.” Explaining all that to the customer took longer than carrying out the transaction would have done, but that would not provide the same excuse to say that the branch had become obsolete.

I read a story in the paper at the weekend, which is a true story. I am rather loath to use the bank’s name, although anyone who reads The Mail on Sunday can find out which bank it was. The headline states:

“As banks continue to axe branches around Britain and force firms to go cashless, this furious baker”—

who is one of the bank’s customers; not a banker, but a baker—says that her bank

“‘talked me into a pricey card reader…then shut down my branch’”.

Wow! Listen to this one: she pays £39 a month for a debit card reader, and 1.85% of every transaction goes to the bank. If cash disappears, there is a danger that contactless card payment fees will soar. That is the bottom line and the unwritten rule: whenever they get control of your assets, they will screw you a wee bit more.

The next one comes from a lady in a village—this is an absolute cracker. Her bank boasts that it is “by your side”. It was so much by this person’s side that it closed down her branch last year. That illustrates what the issues are.

I have constituents who do not know how, or have the facilities, to carry out their banking online, and even those who do still frequent their bank regularly. People need that service and pay for that service; that must be the priority, not simply giving shareholders a bigger dividend. No one expects the banks to be charities, but providing a service to those who pay is not being charitable. Let us bring back the banks, the local branch manager and the forgotten ideal of being part of a local community. That is what banks should be, and very often now they are not.

Social Mobility: Treasury Reform

Jim Shannon Excerpts

Tuesday 11th June 2019 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I thank the right hon. Member for Putney (Justine Greening) for securing this debate and for setting the scene so well. It is always a pleasure to speak on matters of such importance, and I support and sympathise with her remarks. I am pleased to see that the Democratic Unionist party is the second-largest party represented in the Chamber today, just slightly behind the Conservative party numerically.

I thank the right hon. Lady for her hard work on this issue and for the work she did as a Minister. I completely agree with her assessment of the Augar review, and I enjoyed reading her piece in the Financial Times earlier this month on that very topic—it was helpful for a better understanding of the debate, for which I thank her. Something that jumped off the screen was this:

“Its figures show that graduates going on to earn the highest salaries among their peers will see their overall repayments reduced by £18k—a third compared with now. However, for lower to middle-earner graduates, it is the opposite—Augar raises their overall repayments by £12k, almost double.”

I sincerely believe that that reinforces the view that the rich get richer at the expense of the lower class, who become stuck in a mire, as the right hon. Lady mentioned. We should also put on the record our thanks to the Library for providing a briefing pack with information and examples of the issue to help us.

It is important to look at the different opportunities for social mobility for women compared with those for men. There have been changes, which we must recognise, but later I will give an example and tell the story of a constituent who I think exemplifies the issue from a gender point of view. We must also address the fact that ethnic groups have experienced differing life chances over time. In her concluding remarks, the right hon. Lady referred to the need to give everyone the opportunity to maximise their potential, and I want to see that as well. There is also the issue of social mobility opportunities across the country in business and industry.

I am not here to play party politics—that is not my job in this place or what I am about—but it is only fair and right to recognise that Tony Blair’s Labour Government committed themselves to social mobility. At that time—before my time in the House—Blair also committed himself to addressing the issue of poverty, because social mobility and poverty were interlinked. To be fair, it is only right to recognise those commitments. The Conservative-Lib Dem coalition Government also had a clear strategy to improve social mobility. The then Deputy Prime Minister, Nick Clegg, said, “fairness means social mobility.” Clearly, he looked at that too.

The right hon. Lady referred at some length to human capital—it is important to put that on record—which I think is the crux of the matter. The Organisation for Economic Co-operation and Development defines human capital as the

“knowledge, skills, competencies and attributes embodied in individuals that facilitate the creation of personal, social and economic well-being”.

Clearly, we should never underestimate human capital if we want it to arrive at where its potential allows. In an October 2018 release, the ONS indicated that the total stock of human capital in the UK in real terms was worth £20.4 trillion in 2017, slightly down from £20.6 trillion the year before. It is good to recognise human capital.

Earlier, I mentioned a young lady in my constituency who I believe would fit into this category. She is an example of someone who, through social mobility, tried to advance her status and position in life, and succeeded. It is important to mention someone who achieved her potential when the regime was perhaps not set up to let her do so.

[Mr Gregory Campbell]

Does my hon. Friend agree that part of what we need to do is to further incentivise people, particularly young people, through the tax system, so that they can save? Personal allowances, for example, have risen in recent years, but we also need a rise in the national insurance threshold, so that people—particularly young people and those in part-time employment—can earn a higher net income, then work through the system with greater training and skills, and enter a higher earnings bracket.

[Jim Shannon]

My hon. Friend and colleague so often brings to debates an overarching view of where we and young people in our constituencies and across the whole of the United Kingdom need to be.

I will give an example that came my way only last week—although I know the young lady concerned—while I was researching for this debate. She has four children, works in retail, and her husband works in manual labour. Both are on low incomes and receive tax credits to supplement their income. Tax credits have been a great boost for many people. They are okay as long as they are going all right, but whenever they go wrong—if there is an overpayment, for example—they become a real noose around recipients’ necks. When done right, they are a bonus.

The young lady’s eldest child suffered a traumatic brain injury a number of years ago—he survived, thank God, although his life is altered as a result. The reason she came to my staff was to ask for help understanding the benefits system. Probably for all MPs, including the Minister, the most important issue in our constituency office is benefits—it outstrips by far all other requests to our office.

My constituent had decided that she would like to go back to college to get the qualifications necessary for her to enter higher education, with the goal of being an intensive care unit nurse providing the assistance for which she was so grateful in her life. That lady is everything that we might associate with the job: caring, compassionate, intelligent and dedicated. I believe that nursing is a calling, and she certainly has it. She just needs the opportunity—the social mobility for the human capital referred to earlier, to get the opportunity to advance herself and to do well.

In order to answer that call, however, my constituent needs to have her children minded. Her parents have passed on and her in-laws are both still working full-time. She gets tax credit for the few days that she works to help. That would all change if she became a student to provide a better life for her family. This young lady wanted to do better, but found herself in a system that almost holds her back, as my hon. Friend the Member for East Londonderry (Mr Campbell) was saying. What the right hon. Member for Putney said in her introduction is therefore exactly the issue that we have to address.

“Treasury reform” is included in the title of the debate, and clearly the Treasury has to take the issues on board—giving people opportunity and the chance to do better. My constituent, however, would have her tax credits cut if she was on a course, which she would therefore be unable to afford. That was her predicament. The system as designed does not allow for change, but ties us to where we are. Knowing the young lady as we do, she is a loss to the medical profession. If she wanted to claim housing benefit to offset the loss of tax credits, she would have to go on universal credit, and she simply could not afford the five-week lead-in because she has four children and rent to pay.

My constituent is stuck, and my fear is that the Augar review does not help people like that—the right hon. Member for Putney referred to that in her introduction, I refer to it now and others who speak afterwards will no doubt do the same. Such examples perpetuate the idea that university is only for the young and for the middle and upper classes, and that those who are called to do different things with their life cannot do it all. That frustrates me and, for the record, I would like to see the change proposed by the right hon. Lady, because it would be helpful.

My staff have made inquiries about the help available to get my constituent to the stage at which she can go into nursing with the bursary that being a student nurse brings. As for making education accessible to working-class people, however, we clearly have not achieved that. We sincerely need to work harder to do that. That is why I am supportive of my colleague, the right hon. Lady, and her desire to ensure that those in need of help and support to reach their goals can get it, regardless of the social structure into which they were born.

This debate is about giving opportunity and about ensuring that those who need help can achieve it. At the present time, our system does not help such people in the way that it should. The days of education only for the privileged are, and should be, a thing of the past, and the days of further education only for the young or privileged also need to be a thing of the past. This Government and the Minister must understand where people are coming from and help them to get to where they need to be.

My mum and dad sent me to boarding school. I know, honestly, that that was a big step for them to take. Those five years when I was in boarding school meant that my working-class family had to keep the same car for years, had no holidays, and so on. I am therefore deeply indebted to my parents for giving me that educational opportunity. They worked, scrimped and saved to make it happen. What I want to see in the society I live in and represent is everyone having the same opportunity. I do not see that now, unfortunately. That is why this debate is so important—I thank the right hon. Lady for securing it and for airing the issues so well today. By doing so, she has done a favour and sought justice for people across all of the United Kingdom of Great Britain and Northern Ireland, where opportunity and equality should be there for all.

Mortgage Prisoners

Jim Shannon Excerpts

Thursday 6th June 2019 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

It is always a pleasure to speak in these debates on the banks, and I have spoken in every one. I am sure that my constituents are more than glad to know that, on banking issues, I am here to bring their cases to the attention of Ministers. The Minister has always been responsive to my queries and questions on behalf of my constituents, and I look forward to his response not just to me but to everyone else. That is why we are here.

I congratulate the hon. Members for Dover (Charlie Elphicke) and for East Lothian (Martin Whitfield) on securing this debate. They have been engaging on this subject, and they and the Treasury Committee are to be congratulated on sustaining their interest and effort here. We all appreciate their considerable efforts on behalf of all our constituents across the whole United Kingdom of Great Britain and Northern Ireland. I believe that the solution requires a collective and collaborative effort by the regulators, Parliament and the Government. As others have, I call on the Government and the regulators to hold an urgent inquiry into the sale of debt to unregulated entities.

It is a pleasure to follow the hon. Member for Sutton and Cheam (Paul Scully). He makes a valuable contribution to every debate he speaks in, but his contribution to this debate is especially valuable. It is always a special privilege to follow him. A number of Members have spoken on behalf of the mortgage prisoners, and I add my and my party’s support to the House’s calls for Her Majesty’s Treasury and the FCA to redouble their efforts to address this serious subject properly.

I will mostly speak about the sale of debt by banks, through private equity investors, to third-party funds such as those described as vulture funds. Put simply, these banks generally made judgments to lend and then decided to change their business strategy—every Member who has spoken has given such examples—away from these customers whom they had previously regarded as credit-worthy, often for 10 to 15-year loans. They were often happy to make supernormal profits or bonuses, and then abandon their customers through a form of grooming process, turning these long-term loans into on-demand overdraft facilities; they were basically screwing these people as much as they could. It seems obvious that private equity can make the returns they want only through buying or collecting the debt through substantive write-downs of debt and/or at the expense of those customers who trusted their bank—and they do trust their banks, or at least they used to. They do not trust them any longer. From what I have seen, these former customers are the real losers. The hon. Member for East Lothian estimated that there are some 400 of these customers per constituency, and I know some of the ones in my constituency and am well aware of the problems they have had in trying to get beyond where the banks and the companies that took on their overdrafts and mortgages were.

From the Minister’s response to an urgent question in March 2019 about the hunger striker in Scotland, it seems that some lending bank standards are now in place. However, the evidence we have looked at suggests that the banks have little or no control in respect of, or interest in, those customers once there has been a sale to a third party; it seems that they are impotent, or unable or unwilling to help. As the House and the Minister know, we in the Democratic Unionist party have taken an active interest in pressing for the banks to bring forward a dispute resolution scheme—DRS—for historical banking cases. We are keen to have those matters addressed. To my knowledge, none of the seven participating banks in the current UK finance scheme believes that cases sold on to third party vulture funds are eligible for the past or future DRS. What is the Minister’s understanding about this specific area in relation to, first, eligibility and, secondly, any retroactivity in relation to the lending standards he mentioned in March?

After the Minister’s remarks then, I wrote to Richard Donnan, head of Ulster bank, which is RBS in Northern Ireland and our state-owned bank, saying:

“Secondly I enclose a part of the Urgent Question information from Hansard in relation to a moratorium for current cases from Cerberus whilst the DRS scheme comes in to effect.

Can I have your confirmation that the Ulster (and indeed RBS) are ensuring that Cerberus are staying all legal proceedings (such as those within project Aran?) as set in that exchange with the EST. ”

I left my office on Monday night to come here, but on Tuesday my constituency office received a call from Mr Donnan’s office in response to my original letter to him back in March/April. I look forward to his written reply, especially as the bank is largely owned by us as taxpayers. It is always good to remind the banks that the taxpayers—we in this House and everyone else across the nation—are ultimately the people they should be responsive to.

In particular, we have been watching and involved in how the Clydesdale and Yorkshire bank, which was formerly owned by National Australia Bank—it also owned the Northern bank in Northern Ireland, now Danske, until 2004—has been addressing the mediation/remediation efforts on a number of cases involving Cerberus. From my most recent briefing, it seems that those mediation efforts in working with the victims group CYBGCSG, and CYBG top management on 14 cases have been futile, as there appears to have been no active follow-up process. We have asked for the process and it seems that they have not got off their backsides—it is disgraceful that they have not done so. I understand that our involvement in those informal mediation efforts will lapse imminently, as I have learned that in addition to the legal claim filed by RGL Management last month, an additional legal group claim will be filed for an initial 50-plus cases centred on the CYBGCSG victims group this month. It is unfortunate that no resolution was found to any of those 14 cases, with further peaceful yellow vest protests and potentially hunger strikes across the country now seemingly inevitable.

I will, however, provide some potentially good news, as it is always good to give a bit of good news in a debate that can save us from a bit of doom and gloom. The Minister may recall that I first raised the Danske bank case of the Armstrongs a year ago. He knows about this because I have written to him about it, and he has seen the case paper with the all-party group on fair business banking and finance analysis. I understand that following their yellow vest protests from December 2018 to April 2019 at Danske banks in Northern Ireland and at Danske bank Northern Ireland-sponsored events, and with the upcoming DRS, the bank solicitors have now asked to engage with them. It has taken a long time, but hallelujah for that! At least they are answering and some correspondence is now taking place. I hope and pray that this proves to be a useful process with a positive conclusion, and that my constituents, the Armstrongs, do not feel that they need to resume their peaceful “yellow vest” protest from July, with the attendant publicity, at a time when Danske bank just happens to have won the top award in Northern Ireland this week, as a responsible company.

Following correspondence, I am aware that other banks, such as Santander, have agreed to look into some cases prior to the DRS process for SME Alliance members, and that is to be commended. As a party, in the past year we have raised in the House two other cases in which Danske opposed the Financial Ombudsman Service’s considering the complaints on a time-bar basis. Danske can quite easily allow the FOS to consider those complaints now, as I understand that those customers are willing to have their complaints considered by the new FOS team, which was effective from April 2019.

I hope that Danske and the other participating banks will collectively allow those 396 and 447 complaints from 2008 to November 2018, from across the United Kingdom of Great Britain and Northern Ireland, to be considered by the FOS, as part of the overall recognition of the need to deal with historical complaints, which it is important we do, and that the Minister will today add his support for their inclusion in the FOS or DRS processes, as a matter of fairness and equality across the historical scheme from January 2000. I understand that both the DRS chair, Lewis Shand Smith, and Mr Andrew Bailey at the FCA believe that to be appropriate, and I know that the matter was raised earlier this week with UK Finance, so there is endorsement and support from very responsible people. Hopefully, a positive response is imminent from all the stakeholders and participating banks.

Finally, the subject of third-party debt is not solely a UK matter; in our neighbouring jurisdiction, the Republic of Ireland, there was a debate on a private Member’s Bill on vulture funds in the Dáil on 28 May, and the Republic of Ireland Parliament also took useful evidence on accounting and auditing in a Select Committee in the same week. Perhaps the Minister can look into what happened there.

I finish by supporting the motion, and call on Her Majesty’s Treasury and the FCA to follow up with a proper inquiry on debt transfer to third parties and to actively consider changes to the law and regulation in this crucial policy area. Most mortgage prisoners and SMEs deserve better from us all. I thank every Member for their contribution and look forward to the Minister’s response.

Consumer Access: Financial Services

Jim Shannon Excerpts

Thursday 6th June 2019 Westminster Hall

[Nicky Morgan (Loughborough) (Con)]

I beg to move,

That this House has considered the Twenty-ninth Report of the Treasury Committee, Consumers’ access to financial services, HC 1642.

It is a pleasure to serve under your chairmanship, Mr Walker. The Treasury Committee’s report “Consumers’ access to financial services” was published last month, its conclusions having been agreed by the Committee unanimously. The inquiry was launched in November 2018 to assess whether certain groups of consumers were excluded from getting a basic level of service from financial services providers, whether the regulatory landscape provided sufficient enforcement to ensure that customers could access financial services, and, if not, which remedies were needed.

Our report covered a lot of ground, so I will focus on four of its main conclusions. First, financial exclusion or vulnerability can affect us all at some point in our lives. Secondly, the Post Office alone is not a solution to banks closing their branches. Thirdly, a legal duty of care for financial services providers towards their customers is needed if the Financial Conduct Authority cannot make firms act in their customers’ interests at all times. Fourthly, at present the Equalities and Human Rights Commission does not have the resources to enforce financial services firms’ compliance with the Equality Act 2010, and therefore the Financial Conduct Authority should be given the power to do so.

Before I go into more detail on those four main conclusions, I will give a brief outline of the inquiry’s scope. We received almost 80 written evidence submissions, and we held five oral evidence sessions and two outreach events with members of the public and local charities—one in Waterloo, London, and one in Newcastle. I put on record the Committee’s thanks to everybody who sent us evidence and took part in those events. When I was elected by the House as Chair of the Treasury Committee, I was determined that our inquiries would not just talk about things that affect the City of London and our large financial institutions, but would concentrate on issues that make a real difference to consumers’, and our constituents’, lives. I hope that we have been able to do that in this inquiry.

The oral evidence sessions were held with advice groups and charities representing different groups in society, Members of the House of Lords who had previously carried out work on financial exclusion, representatives from banks and the Post Office, and the regulators with the power to make the changes needed—the Financial Conduct Authority, the Equalities and Human Rights Commission, and the Equality Advisory Support Service, which offers support to individuals with a disability dispute.

It is worth stopping to think about why financial inclusion matters. It is something that many of us will take for granted, perhaps until a time in our lives when we are excluded or suffering, or until we come across a constituency case of somebody struggling. Eleanor Southwood, the chair of the Royal National Institute of Blind People, said in her evidence:

“People experience enormous frustration. But it is also about financial literacy. It is about financial independence. It is about not being more vulnerable to any kind of financial abuse, because you are entirely on top of and aware of your own financial arrangements and situations.”

She went on to say that it

“comes back to the fundamental issues about confidence, the loss of confidence, the loss of confidence in yourself to understand the information.”

I remember the oral evidence that I heard from one of the charities at our roundtable in Waterloo, not very far from here. In this Chamber, we probably take financial inclusion for granted, but an inability to be in charge of one’s finances is sometimes a precursor to an inability to participate fully in society. That is something that we should all be concerned about.

There are many different elements to how consumers access financial services and, as the Committee heard, there are many ways in which people can be excluded. We started by trying to establish which customers we were most concerned about, but the reality is that access to financial services or financial exclusion is not limited to those we might naturally associate with being vulnerable, because vulnerability can happen to any of us at any stage of our lives. The FCA told us that its definition of vulnerability as

“someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care”

could include up to half the population at any one time.

[Jim Shannon (Strangford) (DUP)]

I commend the right hon. Lady, who came into this House at the same time as I did; indeed, she made her maiden speech just before I made mine, so we have had that relationship in Parliament for a long time. She is aware of my constituents the Armstrongs. I have written to her, the Minister and the Department about them. They ended up in company insolvency and then personal bankruptcy, despite repeatedly advising their bank and lawyers that Mr Armstrong was very unwell over a sustained period.

The right hon. Lady referred to vulnerability, and paragraph 179 of the Treasury Committee’s report refers to it very clearly, stating:

“We therefore support the FCA’s intention to do so through a more balanced definition of ‘vulnerability’”.

Will that new recommendation ensure that we have the chance to protect people such as those I mentioned, whom she is aware of through her position as Chair of the Committee? Also, does she agree that not only the UK financial services industry but regulators at the FCA and the Financial Ombudsman Service must be part of any future work—

--- Later in debate ---

[Nicky Morgan]

I thank the hon. Gentleman. He is a legend for speaking in so many debates in this House, and I would feel rather excluded if he were not here today. I am grateful to him for raising those issues. He is a passionate advocate for his constituents, and has raised a number of cases with me as Chair of the Treasury Committee. He is right that a broad definition of vulnerability is important. People will be vulnerable at different times of their lives. He knows that in a separate inquiry we have been looking at the finances of small and medium-sized enterprises, many of which are almost no bigger than retail customers, and may be exposed to the same vulnerabilities.

My understanding on the definition is that the FCA has published its consultation and is asking about vulnerability. In the inquiry, we wanted to ensure that when we talk about vulnerability, we are not limited to a narrow definition, and that when those working in financial services think about vulnerability, they do so in the broadest possible sense, realising that people come in and out of being vulnerable.

In the case of the hon. Gentleman’s constituents, it is worth re-asking the question about how customers appear to those who advise them. We must also recognise that some people will not identify themselves as vulnerable. That is another thing that we heard during the roundtable. People do not want to tell their bank that they are vulnerable because they are concerned that it might lead to higher charges, or even losing an account or not being offered insurance.

[Jim Shannon]

With your permission, Mr Walker—

[Mr Charles Walker (in the Chair)]

You can make as many interventions as you like, Mr Shannon—make 10 —but brevity is the key. The Floor is yours.

[Jim Shannon]

This intervention will be brief, unlike the last one—apologies for that. Regulators at the FCA and the FOS need to do more to ensure that the most vulnerable in our society are afforded the appropriate response and interactions. Does the right hon. Lady agree that those regulators must do better?

[Nicky Morgan]

I do. I think the FCA is very aware of that, and wants to do better. That is why it has published the consultation on the definition of vulnerability. The hon. Gentleman and I have had previous conversations about the Financial Ombudsman Service, and I have had correspondence with other Members of this House. We all know that the FOS can sometimes struggle to offer the remedies and the speedy service that people are looking for. The FOS performs an important function, and its new leadership is very aware of the challenges. In particular, more and more of us are aware of the ability to go to the Financial Ombudsman Service, which puts pressure on it. However, the basic conclusion of our report is that everybody involved in financial services could do more.

Financial exclusion is a broad issue that can and does affect us all in many different ways. The key areas that the Committee chose to look at were why financial inclusion matters, which I hope I have already captured in my earlier remarks; the many issues that vulnerable consumers face, such as being able to understand their bank statements and communicate with their service providers in the way that they want to; and the closure of local bank branches and the use of post offices as a replacement.

Funeral Plans: Regulation

Jim Shannon Excerpts

Wednesday 5th June 2019 Commons Chamber

[Neil Gray (Airdrie and Shotts) (SNP)]

I am grateful to you, Mr Deputy Speaker, and to Mr Speaker for granting me this opportunity to raise the important issue of funeral plan regulation again in the House. Much has changed since the last time I brought a debate on funeral plan regulation to the Chamber. I will go into more detail regarding what has happened in the industry shortly, but first I want to explain why this is such an important issue and why action is so important.

Pre-paid funeral plans allow consumers to save for a funeral. If they are sold and handled appropriately, they are a good thing. They allow people to purchase a funeral and secure it at today’s prices. They can avoid the double-whammy shock of losing a loved one and dealing with the financial consequences of a funeral at the same time. Alongside appropriate regulation of the funeral industry itself and the wider anti-poverty work that is required, funeral plans are the best route to avoiding funeral poverty.

I proposed a ten-minute rule Bill in December 2016, as I want to see better regulation of this market. The debate in 2016 followed a report from Citizens Advice Scotland that same year, commissioned by the Scottish Government, on funeral poverty. It made a series of recommendations regarding the action required to stop funeral poverty. Many of them were devolved responsibilities that are now being pursued by the Scottish Government, but some were issues reserved to Westminster, including this one of the regulation of funeral plans. That report, with its case studies of people being mis-sold funeral plans, and representations made to me by constituents prompted me to ask this Government whether they should be doing more. According to UK Government figures, about 200,000 funeral plans are sold each year, and I expect that figure to continue to rise.

[Jim Shannon (Strangford) (DUP)]

Will the hon. Gentleman give way?

[Neil Gray]

By all means. [Interruption.]

[Jim Shannon]

Mr Deputy Speaker, I did seek the hon. Gentleman’s permission beforehand, so I have done this the right way.

I congratulate the hon. Gentleman, who so often brings to an Adjournment debate many important political issues that we are all involved in and which I am aware of as well. I know of many people who immediately began a funeral payment policy when they retired, yet this has proved to be a negative move for many families. Does the hon. Gentleman agree that, while it is admirable that 95% of funeral plan providers are signed up to regulation by the Funeral Planning Authority, the fact that this is completely self-regulated takes some of the sting out of the tail? I believe there is also a role for the Government to play, perhaps in stronger legislation to protect the elderly and the vulnerable from being taken advantage of as they come towards the end of their life.

[Neil Gray]

I thank the hon. Gentleman for his intervention, and it would not be an Adjournment debate without his intervening.

The hon. Gentleman raises an important issue, which is the current status of the Funeral Planning Authority, which I will come on to discuss in greater detail in my speech. He is right that it is a voluntary body at the moment, and there has been much debate about whether the best route of regulating this market is through putting the FPA on a statutory footing or through Financial Conduct Authority regulation. The Government appear to be looking at FCA regulation, which I am happy enough with, although I do have some concerns about the direction of travel, which I will ask the Minister to look at. The hon. Gentleman is right. At the moment, the FPA perhaps does not have the teeth to regulate the market properly. It would acknowledge that although it has done a great deal of work in this area since my ten-minute rule Bill was introduced, if it were to have a full suite of powers to regulate the market properly, that would require it to become a statutory body.

--- Later in debate ---

[Jim Shannon]

The hon. Member for Airdrie and Shotts (Neil Gray) referred to compensation. I want to ask Minister about this because it was discussed at the working group today. If someone pays for a funeral plan and the firm that takes the money goes bust or ceases to operate, will there be a method whereby people can get their money back?

[John Glen]

That would be resolved by the process in which we are currently engaged—the consultation process, and the proposals for legislation in the autumn—and my expectation is that that is what we shall be aiming for.

We should set the framework for a market that functions more fairly and in the interests of consumers. The future regulatory framework for funeral plans was set out, in detail, in a consultation that I launched on Sunday. The consultation will run for 12 weeks, and it will give stakeholders an opportunity to comment on the proposed legislative framework before the Government consider the responses and finalise their proposed approach.

The hon. Member for Airdrie and Shotts asked an important question about what would happen during the gap between now and the introduction of the full new regulations. Whatever regulatory route is chosen, a transition will be necessary. FCA regulation can be carried out via secondary legislation and will therefore be quickest. The membership of the existing regulatory authority—the self-defining one—clearly has some reputational benefits in the interim, and I would encourage consumers to use the FPA-regulated providers during that period. I recognise that there is a dispute about the most appropriate way forward. That is what the consultation will be about, and the Government will reflect carefully before presenting proposals.

I hope that I have responded adequately to the points that have been raised. I thank colleagues on both sides of the House for their contributions to the debate. This is a very important issue involving real human misery, and as the hon. Gentleman has said, what was happening was an outrage. I am determined that we will get this right for our constituents across the country and leave the market in a far better state.

Question put and agreed to.