Grassroots Football Funding: Wembley Stadium

Jim Shannon Excerpts

Tuesday 22nd January 2019 Westminster Hall

[Justin Madders (Ellesmere Port and Neston) (Lab)]

I beg to move,

That this House has considered the future of Wembley Stadium and the funding of grass roots football.

It is a pleasure to serve under your chairmanship, Mr Hollobone. Football, as we know, is our national sport. We invented the modern game and have the most popular league in the world, viewed by millions around the globe. I grew up playing and watching the game, and while I still play and watch when I can, I also have an interest in ensuring that our national sport can be enjoyed and participated in by as many people as possible at all levels.

Members will recall last year’s controversial proposals to sell Wembley Stadium to the American businessman, Shahid Khan. At the time, the Prime Minister rather dismissively told me that the proposed sale was a private matter. I have to say that I consider the sale of the national football team’s stadium—the home of the FA cup final and countless other important matches—to be a matter of some considerable public interest.

The deal did not go through in the end, but we need to talk about the consequences. The sale falling through has left a hole where the grassroots strategy was. The main justification put forward by the Football Association for the deal was that it would have enabled the release of hundreds of millions of pounds to fund grassroots football. Although I was a little bit sceptical about the deal and what it would mean in the long term, because sale and lease-back agreements often do not work well in the long run, it was beyond doubt that it would have enabled significant investment in grassroots football. It is important for us to discuss how to replace that funding.

[Jim Shannon (Strangford) (DUP)]

One of the greatest footballers who ever graced the football field in this world, certainly in my lifetime, was Geordie Best. Pelé, another of the greatest footballers in the world, said that his favourite footballer was George Best. Geordie Best was a product of local academies, played his football in the back streets of Belfast and became a world star. Does the hon. Gentleman agree that those are the sort of people we want to encourage?

[Justin Madders]

As a Manchester United fan, I would say that, if we can encourage more George Bests, I will certainly be very pleased to see that. I will talk a little more about how we can encourage more youngsters to participate a little later.

Football in this country is in a very strong position. The premier league is the envy of the world. Most of the world’s top players come here, and England’s youth teams have enjoyed unprecedented levels of success in recent years. Whether those kids who have enjoyed great success with the national team recently get to play at the highest level remains to be seen. We should be concerned about the declining number of home-grown players, such as George Best, coming through the leagues, although I am sure someone with that talent would still make it today.

About 35% of players who started games in the premier league last season were English, on average. That represented a huge reduction on the 69% of English players who started games in the inaugural season of the premier league in 1992-93. There are huge questions about how professional clubs operate and about how our younger players can hope to get a chance against the huge influx of imported superstars, and I also sometimes wonder about the effect of giving a 17-year-old who has never played for the first team 10 grand a week—what does that do to their chances?—but that is probably outside the scope of today’s debate.

What we can do today is discuss how to improve the game below elite level. One in six grassroots matches were cancelled last year, and I recall my own kid’s games getting repeatedly cancelled over the winter period, although I do not think it was a particularly extraordinarily bad winter. Cancellations have a detrimental effect on both an individual’s and a team’s development, and we need to encourage that development. There are of course plenty of distractions and reasons why kids may find something else to do rather than play football, but we should do what we can to support it by encouraging a little bit more of the wealth that flows through the game to trickle down to the grassroots. We cannot expect the superstars of tomorrow to emerge if we are not prepared to invest in them.

One thing we can and, in my view, must do is improve the standard of facilities for younger players of all abilities, and for everyone involved in grassroots football. We should not tolerate second-rate facilities in our national sport. We know the pressure local authorities are under to balance the books and how there is little left for discretionary spending on improving sporting facilities. Pitches are often in poor condition, with poor drainage and areas of the pitch that are more mud than grass. Many pitches have little or no changing facilities connected with them.

--- Later in debate ---

[Mims Davies]

I thank my hon. Friend for that point. As we head towards the spending review, our Department is consistently urged to hold conversations with the Treasury.

The hon. Member for Ellesmere Port and Neston raised issues relating to volunteers. I echo his love for the game. People in our communities give so much to the grassroots, and that should be encouraged because of what it gives to our children and to the game as a whole. My father-in-law did exactly that as a football ref in Wales for many years, and he also organised games for homeless youngsters. It is important that we recognise the volunteering that takes place up and down the country. It is absolutely vital. Football is not just a business; it has a responsibility to the grassroots, as we all do.

I absolutely hear the message regarding the safeguards for Wembley ticket pricing, future purchase and controls. I will come on to some of those issues further into my speech, but as we heard earlier Wembley is iconic in terms of what it means to football and to us as the public. It is important that we have a national stadium that is able to host the biggest sporting events; Wembley has delivered that over many years, and we want it to continue to do so. UEFA’s decision to hold seven matches, including the semi-finals and finals of next year’s European championship, is proof that Wembley remains a top-class venue, hosting some of the world’s biggest and most important sporting events. If we are to bid for any future major sporting tournaments—Members might know what I am alluding to—we will need to make sure that we have the right stadium for World cup finals, one that resonates with the rest of the world. That is essential.

Last year, when the FA said that it was considering selling Wembley Stadium as a means of generating extra funds to re-invest in the grassroots, the Government were, naturally and rightly, keen to listen. Nobody would argue that a sport with more than 2 million regular participants could fail to be further helped by the promise of such additional funding. However, at the same time we recognised that Wembley has a special place in the heart of football fans. When listening to the proposal, the Government’s prime consideration as a public funder of the stadium was to protect the public interest, as is absolutely right. Going back to the hon. Gentleman’s point, custodianship of it would be absolutely important in any future new arrangement, no matter who owned Wembley stadium. The stadium should always be protected for future needs. The fact that the FA executive was considering the sale of its most prized asset raised more than a few eyebrows. In its response, the executive was clear in its view that the sale would free up funds to help provide greater financial support, which it felt was needed to help the sport from the bottom up.

[Jim Shannon]

I thank the Minister for her response to the debate secured by the hon. Member for Ellesmere Port and Neston (Justin Madders). Does she not feel, as some of us do, that we should not sell our national stadium and that it should be retained because of its importance? What we could do—I believe the hon. Gentleman referred to this—is take a revenue from transfer fees. That would create some money that could then be used for the grassroots football we want to see. There are ways of achieving things without having to sell the national jewels.

[Mims Davies]

I absolutely see the point that the hon. Gentleman is making. Ultimately, we have a stake in the matter and we will very much be keeping it on the radar. We are not in the place he suggests at the moment, but I will continue to make the case I have made so far in my speech. Whatever the FA does, we have a stake in ensuring that it is absolutely right for football as a whole.

We have heard some of the headline statistics. Only one in three grass pitches is of adequate quality and one in six matches is, sadly, called off due to pitch quality. England has only half as many 3G pitches as Germany. Where there is an opportunity to see more coming into the game, it is absolutely right to take it. We should look at the active lives survey and recognise that what has been cancelled this season may impact on the opportunities our youngsters have to participate. The statistics are a harsh reminder that, despite the unrivalled success of our domestic football at the elite level—we cannot forget the premier league, which is the wealthiest and most globally popular league—there is still a way to go in ensuring that we replicate that consistent success in what we provide at the grassroots level. We must and will provide playing opportunities across our towns and cities so that current and future generations can enjoy football.

British Bioethanol Industry

Jim Shannon Excerpts

Wednesday 16th January 2019 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Member for Scunthorpe (Nic Dakin) for securing the debate. He and I have a long friendship in this House: we both came here in 2010; we are both Leicester City football supporters—the last two matches have not been good for us, but we hope for better days, and we are still seventh in the league, which at the end of the day is not too bad—and, I am pleased to say, he raises many issues on which I fully and wholeheartedly support him, as I do on this occasion.

Over the years, many Members have endeavoured to pursue and promote this issue, including the hon. Gentleman. I thank them for those endeavours. We have a new Minister responsible for the subject in the Chamber, which I hope is a chance for a positive response. As other Members have done in their contributions and interventions, perhaps she will plot a way forward that can deliver what we have discussed.

I declare an interest as a member of the Ulster Farmers Union, a sister body of the National Farmers Union. I will make some short comments from the point of view of the farmers union. I am keen to see how we can all benefit from the promotion of the bioethanol industry sector across the whole of the United Kingdom of Great Britain and Northern Ireland, because if we all pursue the policy, we should all get the benefit.

E10 is a type of petrol that contains up to 10% bioethanol. At the moment, E5 is commonplace on UK forecourts, and it contains up to 5% renewable bioethanol. E10 and even higher grades of bioethanol blends are commonplace in other countries around the world, such as E25 in Brazil—Members might have seen correspondence on that in the papers recently.

E10 legislation would increase demand for UK-derived feed wheat through the increased production of bioethanol. That would decrease the surplus in exportable feed wheat and, in turn, increase the amount of the co-product DDGS, or distillers’ dried grains with solubles, received by the livestock sector as high-protein, high-quality feed. At full capacity, the bioethanol industry in the UK would utilise about 2 million tonnes of feed wheat, with about 50% of that intake returned as DDGS. That provides the opportunity to create 1 million tonnes of UK-derived, high-protein animal feed while offering more protection to arable and livestock farmers from the perils of global commodity markets.

When we look at the intricate detail of the proposition, there is a real possibility of deriving benefit in many sectors, and in many ways, from the development of bioethanol. It seems to me that it needs serious consideration. We therefore look to the Minister for a wholesome and full response.

I was heartened by the work of my local council and its recycling endeavours. As an easy-to-grasp illustration of what it had done, for example, it equated its work on increasing recycling and lessening waste to the number of cars taken off the road—it put it in simple language. The UK-wide introduction of E10 would be the equivalent of removing 700,000 cars from the roads, or 3 million tonnes of CO₂. The information provided to me states that the roll-out of E10 would be the fastest and most effective way for the UK to reach its climate change targets, especially as E10 can be used in hybrid electric cars.

Successive Governments have encouraged people to purchase diesel vehicles, and now they tell them not to, so perhaps we have here a method of addressing that. I emphasise to the Minister and other hon. Members taking part in the debate that we need to spread the job opportunities that could come off the back of this industry across the whole of the United Kingdom. We need to encourage the farming sector, too, which has a key role to play. Will the Minister tell us what incentives, strategies or plans are in place to encourage farmers to look more at the bioethanol industry?

Ethanol reduces greenhouse gases emissions by up to 90% compared with conventional fossil fuels. Indeed, the Intergovernmental Panel on Climate Change called for a threefold increase in the use of biofuels in transport by 2030. That briefing went on to note that, at the COP24 summit, renewable ethanol was reported to be the largest contributor to progress in the transport sector, but I believe more can be done.

To conclude, I agree with the hon. Member for Scunthorpe. More needs to be done to understand how best to better use resources to live up to the environmental pledge that we have made, and how to make better use of those resources to benefit us all. It is all about benefiting us all, as well as climate change and addressing those issues. We should be pushing forward with great urgency. I thank the hon. Gentleman again for bringing this issue to the Floor of the House. The debate is much needed and much appreciated, and I look to the Minister to ascertain whether the matter will be acted on in the way that those in the debate wish it to be.

--- Later in debate ---

[Ms Ghani]

That meeting is in place with the Teesside massive, as I am referencing them now. I completely understand the frustration about not having a date, but we need to make sure that we get this absolutely right. A meeting is a place and that can be raised directly with the Minister.

It is not agreed that there is conclusive evidence to show that switching from E5 to E10 will have a significant impact on air quality but I would like to assure Members that, as with all policy on low-carbon fuels, we will continue to assess our policies and support against the ambitious targets we have set to improve air quality and reduce carbon emissions.

If we were to mandate E10, it could give suppliers an opportunity to meet those carbon budget targets in a more cost-effective way. That is why the Department has consistently made clear its desire to work with industry in considering an E10 roll-out. The Government are mindful that rolling out E10 is a huge change to the UK petrol market. If such a roll-out were not managed well, it could impact on motorists across the UK. It is important that we prioritise consumer acceptance and ensure the vehicle fleet, consumers and retailers are ready. As was raised throughout the debate, that is a big responsibility for Government to undertake. We need to make sure that everybody is ready and any decision we make is not rushed.

I would like to thank everyone who contributed to the debate for taking the time to further inform our thinking on E10. I must not forget the intervention made by the hon. Member for Strangford (Jim Shannon).

[Jim Shannon]

It was a speech, actually.

[Ms Ghani]

Forgive me. I know that the hon. Gentleman has spoken very positively about the bioponics of E10. The bioponics will be accounted for in our response to the consultation when it is published.

I thank everyone for contributing to the debate. The use of biofuels is and will remain a challenging policy area. However, this must never stop us from finding the right balance between maximising the contribution that low-carbon fuels can make to reducing greenhouse gas emissions and taking into account the interests of consumers.

Pubs: Business Rates

Jim Shannon Excerpts

Tuesday 15th January 2019 Westminster Hall

[Mrs Main]

I have not calculated that, but if my hon. Friend waits for the rest of my speech, he will hear how the huge hikes in business rates mean that pubs would have to sell so many extra drinks that they cannot possibly make up for those hikes. The fact that some people are declining to go to our pubs is one issue, but I am talking about successful, thriving pubs.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Lady on bringing this issue to Westminster Hall for consideration, and I support her entirely. With some small pubs experiencing a rate increase of some 80%, does she agree that we are at risk of losing the independent retailer—the one who takes the keys off the customer and will ring somebody to come and get them, and says when enough is enough? Does she further agree that this is something that is not provided by the off-licence or the supermarket chain, and that society will lose out if we lose the restraining hand of those small local pubs?

Long-term Capital for Business

Jim Shannon Excerpts

Tuesday 15th January 2019 Westminster Hall

[Stephen Kerr]

I am grateful to my hon. Friend for that timely intervention. That is the very point I will come on to. Let us examine the critical reason for our lack of national productivity, again comparing investment in our economy with that of the world’s leading economies. A good indicator is the level of gross fixed capital formation as percentage of GDP, which is the value of the acquisitions of new or existing fixed assets in the economy less the disposal of fixed assets. It is just a single measure.

In 2017—the most up-to-date World Bank figures are for 2017—we invested 16.8p for every £1 of GDP. The Chinese invested 41.8p for every £1 of their wealth. We also lag significantly behind developed western economies. For every £1 of GDP, Italy invests 17.5p, Poland 18p, Germany 20.3p, Denmark 20.4p, Spain 20.5p, France 22.5p, Finland 22.6p, Canada 23p, and Belgium 23.3p. That is but one measurement of investment, but it says something about future business activity and also about our confidence in the future. It is my firm belief that much of our productivity gap in this country is due to that indicative investment gap. We are simply not investing enough, and I contend that that is because there is an insufficiency of quality patient capital in our economy.

It is a much-worn anecdote that, while we come up with great ideas, breakthrough technologies and transformative product concepts, all of that good stuff ends up being commercialised somewhere else by someone else. As a young Scot, my pride in being a Scot was spurred by the great stories of our inventors, scientists and engineers. I believe it is a valid contention—one I am prepared to stand by—that the modern world was largely designed by the Scots. The litany of great Scottish contributors include James Watt, Alexander Graham Bell, John Logie Baird, James Chalmers and John Dunlop. I am delighted to give way at this point to the hon. Member for Strangford (Jim Shannon).

[Jim Shannon (Strangford) (DUP)]

The world may have been designed by the Scots, but it was built by the Irish, especially the Ulstermen.

[Stephen Kerr]

A timely intervention, as ever, from the hon. Gentleman. These British Isles are a crucible for invention. The genius of the people of these islands, their creative free thinking and their imagining of the unimaginable has created whole new branches of sciences and technology and whole new categories of product. That native, creative, entrepreneurial spirit is alive and kicking.

Entrepreneurs are among us in abundance. The number of start-ups in this country is at an all-time high. Entrepreneurs are launching themselves and their ideas on to the high seas of enterprise in greater numbers than at any time in our past. Our universities and other research institutes are brimming with exceptional people having very bright ideas. Some of those ideas, if carefully nurtured through the commercialisation process, will not only continue to change the modern world for the better but will be the source of the wealth of this nation for generations to come. However, they must be nurtured, and that nurturing relies, in substantial part, on the availability of long-term patient capital.

All too often at present these small to medium-sized businesses fall prey to predators, who invest in them for the short term and then sell on without having made the necessary long-term commitment to bring the businesses to their full potential. I am not arguing against the importance of short-term investment or venture capitalism, but I argue that it is wrong to surrender our whole economy to that model of capital. Some 650,000 new companies were formed in Britain last year, but the number that scale up is relatively small. Some of those are lifestyle businesses that suit the people running them, but many business owners are driven by a sense of purpose—to build a growing, successful business—and they very often come up against the obstacle of the limited availability of patient capital.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

Thank you, Mr Walker, for calling me. I congratulate the hon. Member for Stirling (Stephen Kerr) on securing the debate. In the short time in which he has been a Member of Parliament, he has made a name for himself on the issues that he brings to this Chamber. Well done to him. It is also good to see him back to health after the illness he had just before Christmas.

This issue is very important to me. The banking and financial conduct industry is increasingly interesting to me. Many of the debates today reflect that. What began with constituents highlighting cases that concern the individual have, after many hours, left me increasingly concerned about the entire sector. I believe it is entirely right and proper that we bring this to the Minister’s attention, so that he can act. I look forward to the Minister’s response at the end of the debate.

I read the “Patient Capital Review: Industry Response”. I completely agree that there is an urgent need for a mechanism to realise three aims: first, unlocking institutional and retail investors’ capital; secondly, increasing the number of venture capital funds that can deploy patient capital at scale; and, thirdly, increasing returns to scale up investments.

I wholeheartedly agree that the United Kingdom is, in many respects, a great place to start and grow a business. In recent years, successful Government policy interventions such as the enterprise investment scheme and the venture capital trusts have helped to develop a thriving start-up community. Northern Ireland has become the world capital for cyber-security, due to investment in skill provision and adjustments for businesses to invest in the Province. We welcome that, and we are pleased and proud to say that.

Only in December, US cyber-security firm Imperva announced that it would create 220 jobs within its new Belfast base—job improvements and opportunities are coming all the time—which is expected to bring the total number of cyber-security jobs to over 1,500 for the first time. That is a 15-fold increase in the past 10 years, so it is really good news, which I am pleased to report to the House.

That investment is due to the concerted effort to find space in the market and to provide all that is needed. We have businesses that seek to make the most of that, but are prevented from doing so by the lack of affordable capital investment. I believe Government must invest in the long game and make provision. We all know the phrase, “speculate to accumulate”—how real and true that is.

Mr Walker, I am no man’s fool, as you and other hon. Members know. I well understand that funding capital should ideally come through the private sector, but to build in a post-Brexit age, it is imperative that we put our money where our mouths are and invest in ourselves, in order to establish and encourage international confidence in the United Kingdom outside Europe.

I support the panel’s suggestions for addressing those issues, such as the creation of the patient capital investment vehicle, to enable the aggregation and deployment of both retail and institutional capital for investment in UK scale-up businesses and capital-intensive research and development-based businesses. We have to invest, so that those sectors do better. The vehicle would invest £1 billion annually, primarily in UK venture capital funds and other investors in high-growth businesses, and catalyse an additional £2 billion of private investment by providing up to only 30% of the equity capital. Perhaps that is a bit technical. None the less, it explains how the system works.

The vehicle would be a new entity, independent of the UK Government, but with a Government-defined mandate, including some Government investment to signal strategic intent to build this. I ask the Minister, what are the Government’s intentions on that? If they can help—I think if they can, they will—it will be a step in the right direction. We will all benefit across the United Kingdom of Great Britain and Northern Ireland. In order to attract institutional capital, investments in the PCIV might receive favourable capital treatment, similar to the Prudential Regulation Authority’s treatment of bank investments in the Business Growth Fund—the BGF. The phrase “go big or go home” seems to be in operation here, but the gains are as necessary as oxygen. The message is clear: this nation believes in its worth and ability, and this nation backs itself as a global leader.

I use the phrase again: we must speculate to accumulate. Businesses are ready and waiting. We have proved in Belfast and Northern Ireland that if we plan ahead and fill the skills pool, investment, jobs and a boost to the economy will most certainly follow. I believe in this wonderful United Kingdom of Great Britain and Northern Ireland. We are better together. That is a fact. I ask the Minister, do the Government believe that, too? If they do, show it and sow it, so we can all reap the harvest.

[Several hon. Members rose—]

HBOS Reading: Independent Review

Jim Shannon Excerpts

Tuesday 18th December 2018 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Member for Thirsk and Malton (Kevin Hollinrake) on securing the debate. He has been really engaging on the subject and he has been thorough in his investigation. We all appreciate his efforts. It is also a pleasure to follow the hon. Member for East Lothian (Martin Whitfield), who made a valuable contribution to the debate. The hon. Members who are present are the ones who are usually present when there is a debate to do with banking. It is also good to see the Minister in his place. We have met and discussed these matters on many occasions. We have had copious correspondence—maybe enough to destroy a rainforest in Brazil or something, the letters have been so numerous. It is important that we discuss these matters and bring them forward.

I am conscious of the time, so my comments will be brief. I want to talk about the key point of the debate, which, for me, is in the final substantive paragraphs of the Minister’s letter of 3 December to the hon. Member for Thirsk and Malton. The letter states:

“From conversations, meetings, and debates over the course of my tenure, I have seen that there are a number of businesses who feel that they have not already had access to a process which can address their complaints. This is why I am glad that the banking industry propose to put in place a method of addressing unresolved historic cases. Established independently of the banking industry, and overseen by a former senior judge, the scheme to consider these cases will make decisions on a ‘fair and reasonable’ basis, be adequately resourced to deal with more complex disputes, and operate in a transparent manner. The industry have also committed to producing proposals on the implementation of the voluntary scheme for future complaints from larger businesses, and I look forward to the next steps in this work. I trust that you welcome these developments, and will continue to work constructively with UK Finance on the delivery of these schemes by September 2019.”

I have two observations on that letter, which I hope the Minister will take note of. My first observation was expressed in part of my published statement that went to The Times’ journalist James Hurley last week, on Monday 3 December, following the publication of the UK Finance report. The article states:

“The Democratic Unionist Party”—

which I am privileged to be a member of, and which has been clear about where it stands—

“is among those who still believe a tribunal is needed.”

I was quoted as saying that my concerns about UK Finance’s exclusion of the tribunal were

“compounded by the legitimate concerns of many SMEs about the independence of past bank-led redress processes”.

This debate is founded on exactly that concern about the Griggs review. Many right hon. and hon. Members have already spoken, and probably will speak, here and elsewhere about the substantive evidence on that matter, including legal opinion, as referenced in The Times. I will return to that shortly.

My second observation is that the Minister clearly believes that the APPG on fair business banking and finance is being actively involved in the process of the development of these schemes with UK Finance. Page 4 of the UK Finance report states:

“UK Finance has been working with member firms, the Government and regulatory authorities to consider the proposals set out in the Walker Review and to consider how the industry can address the important issues raised.”

There seems to be an undertaking and a willingness from the Minister to do that. UK Finance refers to working with the Government, but, respectfully, that comment does not seem to underpin any active recognition or involvement of the APPG and parliamentarians in the development of the process. The hon. Member for Thirsk and Malton has put that forward clearly in his correspondence. It is my view and that of the Democratic Unionist party that it is a fundamental error to exclude parliamentarians and that it will not help the development of a sound, independent solution. So we look to the Minister to address that issue. He appears to share my view and that of many others that the APPG and other parliamentarians should be actively engaged with UK Finance in compelling a fair solution. When he responds today in this debate, I urge him to reinforce his position for the public record in Hansard.

Finally, I come to my key point. Let me put it to the Minister today that we need a decision in his response to this debate on independent redress. Will the Government fully support the involvement of a truly independent public body—the Chartered Institute of Arbitrators—as central in these voluntary redress schemes? For the DUP and—I believe—the public interest, that makes considerable sense, and should both allay SME victims’ legitimate concerns and receive public support from UK Finance, as the institute will be truly independent and competent in considering this subject matter.

The institute would be available for all the historical cases and would be an available choice for complainants in the future, where they prefer not to proceed to an ombudsman for cases below the £600,000 limit, inclusive of the maximum claim limit of £100,000 in consequential damages. So a three-person tribunal is what we are seeking. It could hear cases with an upper compensation limit of the £10 million set out in the APPG’s position statement on 14 November. That is what I would like to see and I believe that is what the hon. Members for Thirsk and Malton and for East Lothian want to see. Indeed, I believe that it is what all of us in this Chamber want to see.

I look forward to hearing the Minister’s affirmative response in support of the Chartered Institute of Arbitrators today, so that we can all—please—move forward with confidence and belief that we can actually get somewhere, and so that this particular subject of truly independent redress is finally behind all of us.

I am very conscious of some of the headlines that we have seen recently, such as “Lloyds’ compensation scheme ‘defective’”. The article continued:

“A compensation scheme set up by Lloyds Banking Group for small business owners ruined by a banking fraud has been labelled ‘defective’, based on a ‘flawed’ methodology and ‘partial’ to the bank’s interests.”

It went on to say:

“Legal advice prepared…says that…the level of compensation being paid out ‘gives rise to a real sense of injustice’.”

I will finish with a last comment. The ombudsman-led approach would ensure that small businesses were able to challenge the banks for their past mistakes, while also protecting them in the future, and without the added costs of a tribunal. That is why I believe that it would be the best approach to rebuild trust between business owners and their bankers.

I support what the hon. Member for Thirsk and Malton has put forward and I seek a positive response from the Minister; I am sure that it will be forthcoming. However, after all these years of ill-doing—for want of a better word, and I am trying to be very careful with my words—or wrongdoing against people, almost putting them to the wall in banking deals, what I want to see, and what I think our constituents want to see, is a compensation scheme that fully enables people to seek full redress for what they have lost. Those who carried out these despicable acts also deserve to be made accountable for their indiscretions and criminal behaviour.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 11th December 2018 Commons Chamber

[Robert Jenrick]

My right hon. Friend is nothing if not persistent, but we are not able to vary air passenger duty under EU state aid rules for different regions of the United Kingdom, including the south-west. That will change, or may, depending on the final state of things once we have left the European Union, but we have taken action in government: we have frozen short-haul rates for eight years in a row and exempted children going on family holidays, including to the south-west.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his response. He is well aware of the issue for Northern Ireland—the disadvantage that we have and the advantage that the Republic of Ireland has. Dublin airport has grown tremendously over the last period of time, so has he had any opportunity to speak to those in charge of Belfast International airport or Belfast City airport to gauge their opinion on how we can grow the economy?

Private Parking: Ports and Trading Estates

Jim Shannon Excerpts

Tuesday 11th December 2018 Commons Chamber

[Dr Poulter]

I agree entirely with my hon. Friend. I shall give the House one more example on exactly that point. The issue for the Government to consider is that the actions of Proserve and companies like it are not isolated to Felixstowe. This is occurring throughout the United Kingdom. Specifically in Felixstowe, however, we know that jobs are reliant not only on the port and that many other jobs in Suffolk are linked through the haulage industry. As we look towards Brexit, the position of Felixstowe as the UK’s premier container port and the importance of Britain’s trade and its exporting and importing capacity is something that the Government should take into account. The behaviour of Proserve is undermining the competitiveness of Felixstowe, and it is potentially putting jobs at risk in Suffolk and elsewhere in the UK that are linked to the port. This is something that needs to be addressed as a matter of urgency.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on bringing forward this debate. He is right to say that these things are happening not only in Felixstowe; they are happening elsewhere as well, and clearly no one is safe. Does he agree that excessive private parking enforcement carried out with no sensitivity can cause great distress in what can already be distressing circumstances? One of my constituents was hounded by a private parking company for a fine that was incurred when she was parked at a commercial harbour in Northern Ireland. She had had a heart attack and was taken away by ambulance, so she could not move her car. Does the hon. Gentleman agree that that example and others like it show why people and companies get annoyed and angry? These private parking enforcement companies should not be a law unto themselves. They need to be brought under the control of legislation and the rule of law.

[Dr Poulter]

I entirely agree with the hon. Gentleman. We know from the behaviour of Proserve and from the example that he has just raised that these companies are often operating without any legal framework, and that there is no proper appeals process available to the victims of those companies. I have been talking about the commercial environment, but I believe that he was talking more from a private citizen’s perspective. However, the examples are certainly comparable. This is borne out even further by my next example.

Bartrums is a large haulage company in Eye, in the north of Suffolk. Andrew Watton, its chief executive officer, has told me:

“For a number of years, Bartrums haulage have been dogged by over-zealous parking enforcement to the point of almost extortion”—

by Proserve in Felixstowe.

“This enforcement company is not part of any parking enforcement association and therefore has no appeals process to the fines for which they impose. The fines and charges are excessive and when you complain or challenge the penalty via Bidwell’s”—

the managing agents—

“you are then charged an additional management fee. Hauliers who fail to make payment of the fine imposed are then banned from site (an area which makes up a substantial proportion of Felixstowe Port). The fines are imposed for stopping anywhere on the carriageway across the controlled area. The fines are in the region of £250…This is under the offence of trespass. Many hauliers across the UK are victim to this sharp practice and growing in number. We have now got to the point of taking group action against Trinity College directly, as previous legal actions against Proserve have failed. This is a restrictive practice, and some select local hauliers in the local area are exempt from these fines, which is anti-competitive.”

As I mentioned earlier, companies may be exempted from these fines because they pay Proserve a fee in order to be given better treatment. That does not sound like a fair or ethical way of running a parking enforcement company in a port the size of Felixstowe. It sounds like extortion, because if the hauliers do not pay, they get fined. I hope that the Minister will be able to look into this.

Andrew Watton continued:

“Trinity are obliged to look at mitigating these charges, which they have failed to do.”

Trinity College’s failure to engage with the process throughout has been woeful.

I want to give one last example. FTS Hatswell Ltd tells me:

“Proserve is a company who work on behalf of the landowners at Trinity Distribution Park…They are issuing trespass notices and heavy fines even if you stop to ask for directions. Last week I got a call from another Haulier whose driver stopped as he had hit something lying in the road”.

Yet he still got a fine and a trespass notice. The company continued:

“FTS Hatswell Limited are currently banned from both sites”

that Proserve runs,

“and even the BP garage by the estate. They are not able to obtain owner details from the DVLA as they don’t belong to a parking enforcement body.”

The challenge for the Minister is to meet the three tests that I have set out. Clearly, a parking enforcement company is behaving unethically and affecting hauliers all over the UK. It affects the productivity and functioning of Felixstowe port, which is the biggest container port in the country. I know that the Government will want to address that, given the looming decisions on Brexit and the importance of overseas trade.

Setting aside the inertia and disappointing behaviour of Trinity College and its agents, Bidwells, there are many concerns that need to be addressed. First, the Government need to ensure that all commercial car parking companies are properly regulated and signed up to a trade body and an appeals regulator, who can consider their actions fairly and ensure fairness and transparency in the appeals process. Secondly, we need to ensure that Suffolk Trading Standards is supported to take appropriate action against Proserve, and Bidwells and Trinity College. Thirdly, we should investigate setting up a proper regulatory system for commercial parking enforcement to support the haulage industry and prevent the unethical and anti-competitive behaviour of companies such as Proserve.

I look forward to the Minister’s response and thank her for taking the time to listen to the points I have raised on behalf of the haulage industry in Suffolk and elsewhere.

Cat Welfare

Jim Shannon Excerpts

Tuesday 11th December 2018 Westminster Hall

[Rehman Chishti]

I am so glad that I gave way, because the hon. Lady talked about Cats Protection, which I have met with and which has written to other Members and me. I was delighted to attend its Christmas parliamentary reception, along with other colleagues here. It does amazing work, and it is important that we work with it to ensure that we get the right kind of framework.

I was making the point that we could look at several cat welfare issues, but I will focus on two: the compulsory microchipping of all cats and reporting after an accident.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on securing the debate. When I got married some 32 years ago, my wife loved cats but I perhaps did not. However, as I continued to love my wife, I continued to love her cats as well. That is how life is. She is a volunteer and worker at the Assisi Animal Sanctuary, which does excellent work for cats and dogs. Does the hon. Gentleman agree that charities such as Assisi do a phenomenal job in caring for stray cats and in providing sterilisation and other deterrents that he referred to? No matter how good a job it does, we in the House must do ours, and to an equally high standard. Unfortunately, I believe that thus far we are not achieving that.

[Rehman Chishti]

I completely agree. The Secretary of State for Environment, Food and Rural Affairs has done some brilliant work, but we have an immense amount more to do. I also agree on the first point. The hon. Gentleman has an amazing wife, who made him become a cat lover and animal lover. I am not married yet, but if I get married, I will need somebody who likes cats, so that we can get a cat. Coming in and out of London, I do not have time to have a cat; we are talking about animal welfare, and cats must be given time. That is key. His point about supporting and doing the right thing as parliamentarians—not simply talking about something but pushing for the right framework to be put in place—is absolutely right.

European Union (Withdrawal) Act

Jim Shannon Excerpts

Thursday 6th December 2018 Commons Chamber

[Mr Davis]

That is hardly surprising, given that we have the biggest aviation hub in Europe and one of the biggest in the world.

[Jim Shannon (Strangford) (DUP)]

It was said earlier that all the regions in the United Kingdom would support the backstop. Members of the Democratic Unionist party in the House do not support the withdrawal agreement. Does the right hon. Gentleman recognise—I suspect that he does—that Unionists feel alienated by proposals that will weaken our position in the United Kingdom of Great Britain and Northern Ireland, because the EU will have the final say on what happens in relation to the single market and the customs union over Northern Ireland?

[Mr Davis]

Let me reinforce the point that I made to the hon. Member for Bishop Auckland (Helen Goodman): I told the Prime Minister that last December, as everyone now knows.

I do not take a utopian or a dystopian view of the WTO option. There are Conservative Members who think that it will be the best option in the long run, because it is the freest in terms of outcomes, and there are those who fear it as a complete disaster. I think that it is neither. There has been an enormous amount of black propaganda about the outcome of the WTO proposal. A month or two ago, we heard that the supplies of insulin would dry up. No, they will not. We talked to pharmaceutical companies and to the NHS, and they did their checks. No drugs will dry up, full stop. My hon. Friend the Member for Mid Bedfordshire (Ms Dorries) mentioned aviation. We were told that planes would be grounded, but a European Commission briefing document showed in January 2018 that there would be EU-wide contingency measures ensuring no stoppage of aviation.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

It is always a pleasure to follow the hon. Member for York Central (Rachael Maskell).

Members will have noted during this week’s business a most sincere and clear lack of pleasure from the Democratic Unionist party in what is happening. I was not pleased to learn that the legal opinion of the Attorney General was not to be made public; I was not pleased to learn that the Attorney General shares my concerns about the undesirable features of the backstop; and I had no pleasure in the vindication of our demand for the legal opinion, as it backed up my biggest fears.

The legal opinion is clear that the protocol is

“binding on the United Kingdom and the European Union in international law… NI remains in the EU’s Customs Union, and will apply the whole of the EU’s customs acquis… Northern Ireland will remain in the EU’s Single Market for Goods and the EU’s customs regime, and will be required to apply and to comply with the relevant rules and standards.”

It is little wonder that constituents in my fishing village of Portavogie have always been clear that they want fewer restrictions and they want to be less encumbered and less prevented from fishing in their own waters. In Portavogie, Ardglass and Kilkeel we have been on the frontline of EU aggression and bureaucracy.

About the insurance policy, Ministers have told us, “We don’t want it and they don’t want it.” Well, if none of us really wants it, why is it there? That is the question I ask myself.

[Mr Simon Clarke]

Will the hon. Gentleman give way?

[Jim Shannon]

No, I will not give way.

Why is the insurance policy almost the only thing that has been agreed? If it will not be necessary, why have we spent 18 months discussing this and little else? I am not a fisherman by nature, but I know codswallop when I see it, and that is what this is. And for good measure there is the £40 billion. My goodness, who in their right mind would do that? It is unbelievable.

What rational person would think that Europe, which has fought so hard for this and which has pinned all its bargaining and all its red lines on this one insurance policy to ensure there is no legal form of leaving this international treaty unilaterally without consent, will ever decide to allow us to walk away when there is no mechanism legally to compel it to come to an agreement? Not me and, let us be honest, not anyone in this House. Please forgive me for expressing some disgust in a promise made by some in this House that has then been denied us—those Members, and the Government, know exactly who I am referring to.

We are small but we are part of this wonderful United Kingdom of Great Britain and Northern Ireland. I sincerely believe that we can and will survive the Brexit process, but only if we stand together. The Belfast agreement clearly says that Northern Ireland remains in the UK until a majority vote to leave is plain. It states:

“Northern Ireland in its entirety remains part of the United Kingdom and shall not cease to be so without the consent of a majority”.

Yet the Attorney General clearly states that we are now a third country. So can that be legally acceptable? I say no.

The red line that my party has—I have heard Members referring to this—is not in red pen; it is in the blood of family members, people such as my cousin Kenneth Smith, of neighbours, of colleagues and of constituents—of your constituents and mine. They have shed blood to defend the right to democracy and to determine that nothing can enforce a united Ireland other than the will of the people. The Government have created the potential for an all-Ireland. Members must be very clear about what I am saying here, as I mean this. They must see the mistrust I have for the Government at this moment in time. They have drawn a dust sheet over the lines drawn in the precious blood of so many I loved. This Government are proposing to allow my beloved Northern Ireland to become a violated, voiceless, vetoless victim of Europe’s desperate grasp for control over our UK.

So next Tuesday, I am going to stand up for my people, and I urge others to do the same. I will stand up for our own nation and for our own good. I urge the Government to go back to Europe with the courage of their conviction that this UK will be no one’s vassal state and that Northern Ireland’s blood-bought birthright is not for sale.

--- Later in debate ---

[Dr Fox]

It is certainly true that there has been some movement on this issue. Originally it was envisaged that the backstop had to be permanent. Now the agreement is clear that it is designed to be a temporary measure. We should understand that, if we do not like the whole concept of the backstop here, it is also not liked in continental Europe. That should be the biggest incentive we have to never get there and to reach a trade agreement on a future partnership.

I was struck by the contribution of my hon. Friend the Member for Morecambe and Lunesdale (David Morris), who made a point that is worth reflecting upon. Had David Cameron brought this country back a deal that said, “You can be outside the single market, the customs union, the common fisheries policy and the common agricultural policy, make no contribution and end free movement,” I wonder what the reaction would have been at that point in history. That is the agreement we are talking about today. I know that I, for one, would have been biting his right hand off for an agreement like that.

[Jim Shannon]

In December 2017, I sought assurance from the Prime Minister and her reply to me was:

“I am very clear that we will not be a member of the single market or the customs union, and we were not proposing that any part of the United Kingdom will be a member of the single market or the customs union separate from the rest of the United Kingdom. The whole of the United Kingdom”—

that is the United Kingdom of Great Britain and Northern Ireland—

“will be out of the internal market and the customs union.”—[Official Report, 11 December 2017; Vol. 633, c. 48.]

It is understandable why, when I see the legal agreement, which says something completely different, I greatly mistrust what I am told by those in government at this moment in time.

[Dr Fox]

The Government have the best interests of the whole Union at heart, which is why, for example, when we negotiate trade agreements, they are for the whole United Kingdom and not partial. The question was raised yesterday at the International Trade Committee whether the Government would implement during the backstop any trade agreement with the rest of the United Kingdom but not Northern Ireland. That would be very difficult to justify, exactly on the terms that the hon. Gentleman mentioned.

One of the most interesting speeches of the day was that of the shadow Chancellor, the right hon. Member for Hayes and Harlington (John McDonnell). In reply to the hon. Member for North Antrim (Ian Paisley), he said that the backstop would not be needed under Labour’s plans because there would be a customs union. That is patently untrue. The regulatory gradient that would exist would not remove the need for a border and would address neither the anxieties of the Irish Government nor those of us in the United Kingdom who believe in the integrity of the Union.

The right hon. Gentleman said that Labour would negotiate a “comprehensive customs union”, with a say in future trade agreements. Let me tell him what nonsense that is. Under EU law, the EU has exclusive competence over its common commercial policy, which includes trade agreements under article 207. The EU treaties set out clear provisions for concluding EU FTAs that provide a role for EU member states and the European Parliament. Those treaty provisions do not permit a non-EU member state—even one in a customs union with the EU—to play a decision-making role in concluding EU trade agreements. That was nonsense. It was another piece of ill-conceived Labour fantasy.

What we have heard today from those on the Labour Front Bench is an ill-researched, ill-understood, unrealistic and incredible policy. As we all know, Labour—to the great irritation of their socialist allies across Europe—are simply playing politics with this issue, at a time of great national decision making. They are out of their depth and not up to task.

--- Later in debate ---

[Mr Speaker]

I am grateful to the hon. Gentleman for his point of order. He is entirely correct in recalling what I said at the outset of the debate. That was a repeat of what I had said yesterday, which could brook no misunderstanding. Off the top of my head, and I do not think it is proper to air it here on the Floor of the House anyway, I am not sure to whom he is referring. Suffice it to say, unless there is a peculiarly compelling reason why somebody has to absent him or herself, and can therefore not be present for the wind-up speeches, Members who choose to speak in a debate should then be present for the wind-up speeches. The hon. Gentleman has registered his point with some force and obvious sincerity, and I respect what he has said.

[Jim Shannon]

On a point of order, Mr Speaker. How do we put on record our thanks to you for your perseverance in chairing three days of these debates and, I have to say, for your incredible bladder? Mine would never be as good as yours.

[Mr Speaker]

I am extraordinarily obliged to the hon. Gentleman for what he has said. As far as I am concerned, it is a great honour and privilege to occupy this Chair. The matter that we have been discussing is perhaps the most important and momentous subject that we have debated in decades, and it may well prove to be the single most important issue that we will discuss here in the course of our careers, so for me as Speaker to seek to ensure that the maximum number of colleagues can participate and to have the opportunity to listen to all the points of view is, as I say, an honour and a privilege. I do not look for any thanks, but the hon. Gentleman is characteristically gracious, and I accept his warm remarks in the spirit in which they are intended. Thank you. We come now to the Adjournment—

Affordable Credit for People on Low Incomes

Jim Shannon Excerpts

Wednesday 5th December 2018 Westminster Hall

[Frank Field]

Indeed; we will try to draw the Minister on that. Part of the leaflet concerns short-term loans, saying that the APR is 535.3%; I hope Members of Parliament know what APR—annual percentage rate—is. I will not press the question, but the Minister has one degree from Oxford and one from Cambridge, so I wonder, if we were looking at a £300 loan and had to pay it back within three months, what the loan would cost and what the rate of interest would be. I am not going to pause; I will give the answers. It is one of those very easy quiz games, but a horror quiz game, because if the repayment is over three months, Provident wants £429 back at an annual interest rate equivalent to 1,557.7%. That is just one example. Constituents borrowing £350 and paying it back over 12 months have to pay back £655.20.

[Jim Shannon (Strangford) (DUP)]

I commend the right hon. Gentleman for all the hard work he does and the high regard in which he is held in this House when it comes to poverty issues for people across the whole of the United Kingdom of Great Britain and Northern Ireland, not just in Birkenhead. I thank him for that. Does he agree that there must be a viable alternative to the payday loans he is referring to? Could the credit union, which is growing in my constituency and has been extremely helpful to people on low incomes, be the safe and regulated alternative, bearing in mind that it encourages responsible lending and responsible saving hand in hand?

[Frank Field]

I totally agree with that. I suggest that there is no silver bullet. Clearly, credit unions have a part to play, but they are not as thriving in Birkenhead as they are in others parts of the country. Therefore, we need a whole strategy of policies, so that the geographical chance of life neither protects people nor leaves them vulnerable and unprotected. If someone has a really good, strong credit union and they are a member of it, that is good news, but if there is no credit union, or if their pattern of behaviour does not easily fit into what the credit union requires, it is difficult for them. I want to draw the Minister on that later in the debate.

The leaflets that are now going out in our constituencies claim that there are no late payment fees. I am pleased to be able to say that, unlike other companies that lend people money when they are extremely vulnerable, there is no evidence at all that the people coming for repayment come with baseball bats to enforce that repayment. But of course, Provident has another strategy, so it does not have to do that. To use another example, one of the volunteers in the Feeding Britain network tells us that one of her friends who got close to paying off her debt with Provident was immediately offered another loan. If someone has problems repaying, they are offered other loans, so the loans mount up and become very substantial, and if they are towards the end, Provident tries to make it part of their working-class economy that they should have loans, by suggesting that they should take another loan.

I thought that, before I come to what I would like to see as part of the Government’s strategy, I would talk about the hard sell. One mother went on to the website to see what the loans prospects were. Having merely gone on to the website, she said that she was being called up eight times a day until she took out a loan. There is quite a hard sell here. As well as picking on areas that are vulnerable because universal credit is being rolled out and picking on the vulnerable areas across the country in periods such as Christmas and the summer holidays, there is a real danger that merely inquiring about a loan means that people then get the hard sell.

What about the strivers? For example, we had two people in work and two children who borrowed £100 from Birkenhead, and they were anxious about paying bills and feeding those children. They ended up having to pay back a few pennies less than £500. We have also seen the Scarlet Pimpernel effect in Birkenhead. If someone googles loans, Google throws up, in the first instance, those loan companies that are likely to cost them the most to borrow from. Will the Minister look at whether there is a case for saying that Google should display what we could all agree are the best companies to deal with, not those with the highest charges?