Eating Disorders

Jim Shannon Excerpts

Tuesday 16th October 2018 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Member for Bath (Wera Hobhouse) on securing the debate and on the compassionate way she introduced it. She clearly cares, and I thank her for that.

I have been involved with this subject with some of my constituents, and I want to talk about two examples. One was not successful, and one was—I use that term loosely. I am my party’s health spokesperson, and I have been directly involved in those two cases. I have knowledge of them, so I want to comment on them.

An estimated 360 adults and 90 children are referred to specialist community eating disorder services each year in Northern Ireland. Those truly monumental and horrendous figures indicate the health problem. The figures for the past five years have increased by 92%, which indicates that we need to focus on this issue through the Department of Health and Social Care. I look to the Minister to make a suitable response that will give us heart.

[Mr Gregory Campbell (East Londonderry) (DUP)]

Does my hon. Friend agree that the startling increase in the past five to 10 years indicates that we need even more research about the underlying reasons for the problem, so we can assess it? We must not have a superficial response to it.

[Jim Shannon]

I thank my hon. Friend and colleague for his intervention. He is absolutely right: we do need to raise awareness, and I think this debate will do that. We also need to raise awareness within health services so that they can give the correct diagnoses earlier for such conditions.

I will give some examples, if I may. During my research for the debate, I was distraught to learn that a young lady from Ballynahinch, whose family are from Killyleagh in my constituency, lost her fight against her eating disorder: in March, she died of a heart attack at age 21. She had been struggling with the eating disorder since 2009—that is horrendous. I will share her mum’s interpretation of it, which I read in an article that she wrote for the Belfast Telegraph; it outlined the problems with treatment in Northern Ireland. I know that that is not the Minister’s responsibility, but I just want to show that our problems are similar to those on the mainland—I do not think location matters much; problems are replicated across Northern Ireland, Scotland, Wales and England.

In the Belfast Telegraph article, we read that beautiful Sophie Bridges was 14 when she was referred to the NHS children and adolescent mental health service. The words of her mother are clear:

“Absolutely pathetic. It’s no reflection on anybody who works there, they try their best, but she was discharged on her 16th birthday. She was no better, she was just above the age for their service. She was still too young, though, for the adult service and had nowhere to go.”

That is one of the problems: moving from child to adult services. My examples will illustrate that very clearly.

[David Simpson (Upper Bann) (DUP)]

I am sorry that I came late to this debate. Does my hon. Friend agree that when we talk about early intervention, we are talking about young people? Schools and social media have a responsibility, as they can be such cruel places for young people who feel that they are not perfect and are forced down the route of eating disorders. More needs to be done in that regard.

[Jim Shannon]

I thank my hon. Friend for his intervention. He is absolutely right: social media have a lot to answer for in many respects, but especially on this issue.

In the Belfast Telegraph article, Mrs Bridges went on to say:

“We just had to deal with it at home. We felt there was only a focus on her physical health, there was absolutely no psychological service.”

We need early diagnoses to ensure that we can deal with the physical—yes—but also the psychological, because that is such a key factor. Sophie spent the first half of 2017 as a hospital patient in a mental health unit. Mrs Bridges said:

“They did their best, but the provision just isn’t there. There are just so many different issues in one unit. There are girls like Sophie in the same ward as elderly people with dementia and others with schizophrenia.”

We can see right away where the problems are. Those problems are not unique to Northern Ireland, but are replicated across the United Kingdom. It is clear that we are letting down people who need help and attention that could make a life-saving difference. That was just one example of a young girl who very tragically lost her life, and our thoughts are with her family—her parents, in particular.

Another example is that of one of my other constituents, whose mum and dad I knew quite well. They were both in the police service, and I knew them when I was a councillor and a Member of the Assembly, long before I came to this place in 2010. Their daughter, whose name I will not mention, had anorexia that was so extreme, as I was telling my hon. Friend the Member for East Londonderry (Mr Campbell), that I spoke to Edwin Poots, the then Northern Ireland Minister for Health, and explained the case to him.

We do not have the self-referrals that the hon. Member for Angus (Kirstene Hair) referred to; patients have to be referred by the Department of Health. I asked Edwin to look at the case because the young girl was very close to death. He referred her to St Thomas’ Hospital, just across Westminster bridge, where they were able to help her; I met her and her parents in the House back in 2010 or 2011. The fact of the matter is that the treatment she got—let us give the NHS some credit for its work—saved her life and turned her around. She is now married and has two children. For her, her parents and her family, that is good news.

Despite our best efforts at addressing nutrition in classrooms and through soaps and other TV programmes, the Eating Disorders Association NI said that the eating disorders most commonly seen in young people under 18 are becoming more common among children between the ages of eight and 14. Let us not underestimate just how early eating disorders can start and how that affects people; the hon. Member for Bath mentioned that in her introduction. Eating disorders in children are becoming more common within that age group, and research shows that boys are at as high a risk as girls. I will share some of the figures on that in a moment.

The society that we live in fixates on skinny living, which is a misguided approach to healthy living. At one stage, I weighed almost 18 stone and risked developing diabetes. I turned the situation around by reducing my weight, which I will hopefully keep down. I did that and stopped once my goal had been achieved. What about people who cannot stop?

Comments in programmes such as “Keeping Up with the Kardashians”—I do not watch it and could not say who any of the Kardashians are or where they are from, but my parliamentary aide does watch it, much to her shame, which she will not mind me saying—fixate on looking skinny; in one clip, being called “anorexic” is even a compliment. That must be addressed.

In fairness, the apology from the Kardashians is wonderful, and they should be commended for realising that their comments came across in an unhealthy way, but the words cannot be withdrawn: young women who want to be more like the Kardashians, who seem to have it all, have already been impacted. I am not saying that we should have censorship, but we must have the common sense to address and not worsen our eating disorder problems. My hon. Friend the Member for Upper Bann (David Simpson) referred to social media, which have a lot to answer for. They set trends and create peer pressure. Sometimes, I wonder whether some of society’s problems—not all, but some—are caused by social media.

Many of us have referred to raising awareness, and the health service ombudsman has also recommended measures to increase awareness of eating disorders among healthcare staff, who have to know what the tell-tale signs are to support early diagnosis. Maybe the Minister can give us an indication of what he can do on that.

I look at my own beautiful granddaughters and sincerely believe that they are perfect. The thought of their view of themselves being shaped by others is frightening. They are young girls—only nine and four—but for some eight-year-olds, eating disorders have already taken hold, so let us address the issue at the earliest opportunity. We must take steps to ensure that the difference between skinny and healthy is taught from a young age.

I have some figures here that indicate the magnitude of eating disorders. Some 725,000 people in the UK are affected. At the time I found the figures, 90% of those affected were female, but the latest figures indicate that 25% of those affected are male. While it is very much an issue for young girls—they make up the cases I am aware of in my constituency—we also have to recognise that there are young men out there with the same problems. Young men are becoming as likely as young women to suffer from an eating disorder, and we must ensure that the message is sent that this is not a teenage girls’ disorder. It affects men and women, old and young, rich and poor. The disorder is life-threatening and we must do more to address it. We must provide more help to beat it and keep beating it every day of sufferers’ lives.

Racehorse Protection

Jim Shannon Excerpts

Monday 15th October 2018 Westminster Hall

[Mr Laurence Robertson (Tewkesbury) (Con)]

It is a pleasure to serve under your chairmanship, Mr Wilson. I declare my registered interests, in that I receive hospitality from racecourses and racing bodies from time to time, and I am co-chairman, with the hon. Member for St Helens North (Conor McGinn), of the all-party parliamentary racing and bloodstock industries group. I very much welcome this debate, which gives us the opportunity to discuss how to improve the welfare of racehorses in the United Kingdom, because I am also the proud Member of Parliament for Tewkesbury, which includes the Cheltenham racecourse—one of the greatest in the world. It generates a lot of income, which helps the whole area. Tewkesbury is a rural area, and horses are very much part of the rural scene. The petition attracted 313 signatories from Tewkesbury, demonstrating that there is a love of horses there and a concern that they should be properly looked after.

I have a personal interest in this issue: my wife owns horses and has done so all her life. She trains them and competes, not in racing but in other sports. I am an animal lover—we keep farm animals as pets, and we have had pets all our lives—so I want to see what we can do to build on the good work that has already been done to ensure that racehorses are well cared for, not only during their racing careers but afterwards.

It will be heartwarming to the BHA, as I do not always agree with it on everything, to hear me say that I believe it is doing a good and improving job of looking after the welfare of racehorses. Although it is involved in racing, it is independent of racecourses, jockeys, owners and the other racing bodies. It does work on the fixture list, the integrity of the sport—it makes sure it is clean—and welfare. It has a board of 10 members. One comes from racecourses and one from another body connected to racing, but the majority are independent of those bodies, so they can carry out their work completely without bias. They investigate jockeys and trainers, and sometimes come down very hard on them. They have demonstrated their ability to do that as well as their independence.

[Jim Shannon (Strangford) (DUP)]

As the hon. Member for Hartlepool (Mike Hill) mentioned, the Irish racehorse sector already has self-regulated through law. Does the hon. Member for Tewkesbury (Mr Robertson) feel that, to safeguard the lucrative racehorse sector in the United Kingdom, it is vital that we follow the Republic of Ireland’s lead?

[Mr Robertson]

I will come to that issue in a minute, but the hon. Gentleman makes a very good point. Everybody in racing wants horses to be protected, largely because they love them. Owners pay a lot of money for racehorses, and training fees are some £20,000 a year, so purely from a financial point of view the last thing they want is for anything bad to happen to their horses. That is not what motivates them, but they put an awful lot of money into the sport.

The hon. Member for Hartlepool (Mike Hill) said that racing is a rich industry, but those of us who know it know that it is impoverished. The top 1% are rich, but lots of trainers and jockeys earn very little. Owners get back an average of 23% of the total cost. That is not a return—they lose 77% of everything they put in. They do it for the love of the sport, and it costs them a lot of money, so the last thing they want is for horses to be treated badly on the racecourse or in the stables. They simply would not allow that to happen.

A number of charities care for racehorses, some of which might have been involved in motivating this petition, and the all-party parliamentary group, which I have co-chaired for a number of years, raises money for some of them at a charity dinner in the House of Commons. Retraining of Racehorses, which is not one that we raise money for, does an excellent job of looking after racehorses after they have finished their racing careers. Greatwood—from memory, I think we raised about £50,000 for it in this place a few years ago—does great work in bringing retired racehorses together with disadvantaged young people. It is unfortunate that that work is not recognised as often as it should be.

Even people who are not as into racing as me are captured by the excitement, particularly that of the big race meetings. I mentioned the Cheltenham festival, but there is also the Grand National, Royal Ascot and the Derby. Those races capture the imagination of people not just in this country but across the world, who take a great interest in it. I have travelled the world to watch racing—I was in France just the other week—and, without question, British racing is the best in the world, although Irish racing is also extremely good. In this country, racing contributes some £3.5 billion to the economy and £275 million in tax. Some 17,400 people are directly employed in the industry full time, and another 85,000 are indirectly employed. It really does do a lot for this country, particularly in rural areas.

I am concerned to ensure that we do the absolute best for racehorses, so I am not instinctively against having an extra body to look after them, but I wonder if it is the best way forward. As I have said, the BHA, which is independent of other bodies in racing, is doing a good and improving job. One of the problems in racing is that there are already too many bodies. As well as the BHA, there is the Horsemen’s Group, the Racecourse Association, the Racehorse Owners Association, the Professional Jockeys Association, the National Trainers Federation, racecourse groups and probably a few other organisations that I have not remembered. I am not convinced therefore that bringing in another body would help and I am not sure to whom it would report or how independent it would actually be.

That goes back to the point raised by the right hon. Member for Warley (John Spellar), who asked whether it is not better for people with long-standing expertise in racing and caring for horses to carry out that overview and supervise the work with racehorses. I am persuaded that that is probably the best way to continue, but that is not to say that improvements cannot be made. They have been made over the past few years: the number of fallers has, on average, been reduced, the fatality rate has thankfully been reduced, and there have been changes to the layout of racecourses, to the fences, and to whip regulations. Although those big improvements have been made, I emphasise that I am not satisfied with where we are. We must continue to move forward and I certainly want to continue working with the BHA in order to help it to do so, but that is the best way forward rather than creating another body.

Cheltenham spends hundreds of thousands of pounds a year on veterinary and welfare fees, and other racecourses spend an awful lot of money ensuring that the horses are properly checked and fit to run and that there are no problems. I accept that there is some way to go, but I think that racing is a very clean sport in this country. There are very few examples of drugs being given to horses, of any wrongdoing in betting, or of race fixing—they all happen very rarely. It is a good and clean sport but one that can and should improve, and I believe that it is doing so.

I should like to hear the Minister’s opinion. My view is that the BHA should take the issue forward and, perhaps, its structure could be altered or it could report more to the Government. I am not saying that changes are not needed in that respect, but I think that is the way forward. I am very grateful to the hon. Member for Hartlepool for introducing the debate in the way that he did, and I look forward to hearing what other hon. Members have to say.

Business Rates: Small Retail Businesses

Jim Shannon Excerpts

Tuesday 9th October 2018 Commons Chamber

[Rachael Maskell (York Central) (Lab/Co-op)]

Will the hon. Gentleman give way?

[Jim Shannon (Strangford) (DUP)]

Will the hon. Gentleman give way?

[Sir Geoffrey Clifton-Brown]

My golly! I will give way to both hon. Members, but I will give way to the hon. Lady first.

--- Later in debate ---

[Sir Geoffrey Clifton-Brown]

Yes. The whole thrust of my speech is that we shall ultimately need to reform the rates system, but it will take time. The Government have to be very careful to guard the huge amount of revenue that they gain from the rates in any change that they make. I am sure that my right hon. Friend the Financial Secretary will have something to say about my proposals in that respect.

I have a problem in the Cotswolds. The rents are very high, which influences the rateable value. It takes time to deal with that when there are a number of empty units, such as the ones in York that the hon. Lady mentioned. When the rents are lowered the rateable values follow, but the district valuers are, of course, reluctant to lower the rateable values, because they do not want to lose revenue. That problem is increasing, as I shall explain shortly. Offline businesses, IT businesses and so on, do not need premises as large as those required by some of the businesses in the hon. Lady’s constituency. For example, furniture shops, bed shops and cycle shops need large premises, which inevitably means large rateable values, but they do not necessarily have the turnover to match those rateable values. The ability to pay is not necessarily reflected in the rates that must be paid. However, I sympathise with the hon. Lady.

[Jim Shannon]

I thank the hon. Gentleman for raising this issue, which is a problem in my constituency as well as others. He referred to a national decline, and the evidence of that is very clear: planning portals in local areas show a downturn in the number of businesses applying for extensions and renovations. Does he agree that that is because businesses cannot expand because of costs, and does he agree that a review of business rates might just allow some companies to take the plunge, upgrade their businesses, sow into them and, hopefully, reap the benefits, rather than continually treading water—as they often do—just to keep afloat?

[Sir Geoffrey Clifton-Brown]

I entirely agree, and I will shortly demonstrate the way in which the current rates system is a disincentive for small businesses to expand. Surely what we should be doing, in the entire economy, is encouraging small businesses that will one day become medium-sized businesses, and will hopefully one day become large businesses, employing more people, selling more goods, and exporting more goods around the world. That is exactly what we want to see in a dynamic UK economy, particularly in the post-Brexit era. We need to look very carefully at the rates system, which is why I initiated this debate.

The hon. Member for York Central (Rachael Maskell) Lady was talking about the relationship between the ability to pay and the rates payable. I do not want to knock the banks as I have great regard for them, but I was shocked to hear that HSBC has six banks in London alone that qualify for small business rate relief. I am sure that HSBC would not have those banks open unless they were making a good profit. That is an excellent demonstration of how the rates payable are not related to the profits a business makes.

I am not for one second questioning the importance of competition in the marketplace, but to reverse the decline of our high streets we must ensure that competition is fair in every respect, and if the rates system is making it unfair, we should look at reforming it. There is a stark example in my constituency in the beautiful town of Stow-on-the-Wold. The large edge-of-town Tesco store is excellent; I go there myself to shop. It is only a five-minute walk from the town centre and pays business rates of £220 per square metre. However, a small independent delicatessen, with much higher costs because it occupies a listed building and which, no doubt, as the hon. Member for York Central says, will have to pay considerably more rent per square metre than the Tesco store would pay if it were not the owner of the store, has to pay £500 per square metre as opposed to £220 for the out-of-town supermarket. I cannot believe that that system is fair, and that, of course, is what is leading to a decline of some shops in our high street. It is therefore imperative that we support our small businesses through these measures.

However, sadly, the Federation of Small Businesses small business index for quarter 3 of 2018 showed that small business confidence has fallen into the negative for only the third time since 2013. Small retailers continue to report the lowest confidence level of any sector. That has to be a worrying trend for all of us.

Another concerning consequence of the current business rates system is the penalties that businesses face when expanding under current rules, which is the point made by the hon. Member for Strangford (Jim Shannon) made. The majority of small businesses growing from one premises to a second will lose the existing small business rate relief, which has a negative effect on business growth. This quirk in the rules means that a business can receive full relief if it has a single property with a rateable value of £12,000 or less, but a business with two properties each with a value of £3,000 would not receive any relief. That is clearly unfair and discourages businesses from expanding to more than one site.

I have another constituency example. The beautiful village of Guiting Power contains two pubs: The Hollow Bottom and The Farmers Arms. You might like to come and sample them, Madam Deputy Speaker, to see whether what I am saying is true. The Farmers Arms recently invested a significant amount of capital into the business and is now a very nice gastropub. However, The Hollow Bottom remained a traditional Cotswolds pub, much loved by many of my constituents. Unfortunately, even though The Farmers Arms and The Hollow Bottom started as the same size and as roughly similar businesses, because they are both in the same village only The Hollow Bottom now receives business rates relief because it is not possible for two pubs in the same village to receive the relief whatever the circumstances, and The Hollow Bottom is regarded as the smaller of the two pubs and is therefore the pub designated for relief. It would be helpful to understand why this inequality exists and how business rates could be reformed to promote, rather than penalise, investment.

It is troubling that the current rates system in certain respects discourages, and even stifles, investment by penalising ratepayers who invest in their business, as I have just demonstrated with The Hollow Bottom pub. For example, if a business owner were to add an air conditioning unit or CCTV cameras to their business, their rates bill would increase. To tackle this, time-limited exemptions for new store developments should be provided. I am keen to understand from the Minister what steps the Government are taking in linking business rates more closely to a company’s turnover, not just its physical size. As I indicated to the hon. Member for York Central, I find the example of a large IT firm pertinent. Such a business requires, by turnover, much less space compared with a cycle shop, a furniture shop or a bed shop, which would inevitably have a lower turnover but require more space.

In the last revaluation announced by my right hon. Friend the Chancellor, the Government did offer some help to smaller businesses by doubling the threshold from £6,000 to £12,000, and I want to make it absolutely clear to my right hon. Friend the Minister that I am not carping about the reliefs that are currently available. Many of the small businesses in my constituency, and in those of other hon. Members, benefit from small business rate relief. However, this does not help the majority of my retailers, who are above that level. The average rateable value in this country is £34,000.

To provide further detail, the new allowance proposals that I support—as opposed to the relief that businesses have to claim—would be based on the same principles as the personal allowance currently applied to income tax. This is a pragmatic, pro-business solution that would simplify the tax system and significantly cut the burdensome tax levels that small retailers are facing. A simple allowance, ahead of a full review of the system, would see a reduction in rates for the majority of those small businesses that qualify for the relief and that are struggling with their tax. All those below this allowance—for example, £12,000—would be out of the system entirely, because they would not have to claim the allowance. This would cut down on the resources required to process these claims. Perhaps my right hon. Friend the Minister has a figure in mind for the Government’s current compliance cost for processing small business rate relief claims. That compliance cost affects not only the Government; in percentage terms, it is even more burdensome for the small businesses that have to claim the relief, because they often need to employ specialist professional practitioners to enable them to claim the tax satisfactorily and not have their claim disallowed.

An additional benefit of introducing such an allowance, as opposed to a threshold, would be the simplification of the relief system. In other words, there would no longer be any need for small business rates relief as there would be a standard application for all small qualifying businesses across the country. Furthermore, the small business relief system currently costs the Government £2.6 billion. Introducing such an allowance and erasing the £2.6 billion in rates relief—even though we would be redeploying it as an allowance—would result in businesses reducing their compliance costs. Perhaps the Minister can tell me what the compliance cost is for the Government. If not, perhaps he could ask his officials to look it up. We could then redeploy the money involved in that compliance cost—and in the bureaucracy involved in administering the system—and perhaps consider raising the £12,000 threshold and introducing the allowance that I would prefer, so that even more small businesses could benefit.

I, and I am sure all hon. Members, want to see this country’s small businesses thriving in post-Brexit Britain, and we should be encouraging small enterprises, not penalising them for wanting to expand and grow further. We should cherish the fact that 500,000 new businesses have been created under this Conservative Government in the past five years and under their predecessor coalition Government. That shows the strength of the British economy. That is why we have such full employment rates, and we need to keep it that way. We need to keep employing as many of our constituents as possible, particularly the youngsters, and to encourage them to consider forming their own businesses. As I have said, from small businesses come medium-sized and large businesses. This country has always been full of entrepreneurs. I have great optimism for the future, post-Brexit, but we need my right hon. Friend the Minister and his team in the Treasury to consider the fairness of the current rating system. I am grateful to you, Madam Deputy Speaker, for allowing me to say these few words tonight.

Business Banking Fraud

Jim Shannon Excerpts

Tuesday 9th October 2018 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I, too, congratulate the hon. Member for Hazel Grove (Mr Wragg) on securing the debate. He is right that we have discussed the subject many times, as the hon. Member for Thirsk and Malton (Kevin Hollinrake) also mentioned. We look to the Minister, who understands the issues that we bring forward very well, for a substantial response. I am grateful to other right hon. and hon. Members for their contributions to the debate about the mis-selling of interest rate hedging products since 2001.

It is important to say, as the hon. Member for Thirsk and Malton did, that my relationship with the banks has been good. My mother and father’s relationship with the banks was also good, because in those days banks were easier to get on with. The borrowing of money was probably very simple. To be fair, the sums involved then were not the large sums that are involved today. Nevertheless, as elected representatives, issues and complaints come forward to us, and in the Gallery behind us there are many constituents who have been wronged, abused and disenfranchised by the banks, and we are here to put their cases forward.

Some of my constituents have been appallingly and despicably treated. I will mention a couple of them, without giving too much detail, just to put their cases on the record. As Members will know, the Democratic Unionist party has consistently said that there is a role for a financial services tribunal and a competent ombudsman service for banking complaints, which would follow the parliamentary intent that such cases should be treated fairly and reasonably, and with timeliness.

In Northern Ireland, we use the terminology of “keeping people’s feet to the fire”; we do not want them to get burnt, but we want people to feel the heat of what we are saying in this Chamber. So I look to the Minister to ensure that the people involved feel the heat, and will thereby respond and look after the people in the Gallery today, as well as my constituents who have been disenfranchised despicably.

The small and medium-sized enterprises are the ones feeling the pain. I will name two in particular in my constituency: the Armstrongs and the Semples. Their cases have been recorded in Hansard before and in the short time that I have today I could not do either of them justice, but Hansard will record the fact that I have put their cases in the main Chamber on two occasions in the past.

The Semples are large dairy farmers who had borrowed a lot of money. They were then squeezed to the point where they had to pay back almost a million pounds. The Armstrongs had made some land acquisitions, but the banks involved squeezed them. They offered them the money and then squeezed them to a considerable extent. The effect on these people’s health, their families and their relationships has been absolutely enormous—we cannot begin to understand that. Without mentioning the person specifically, one of the people I have referred to has serious health issues. Family relationships become strained or break down; they do at the best of times.

Very quickly, I just want to say that we believe that in the discussions about this issue a broad consensus has emerged, similar to that concerning the Financial Conduct Authority consultation.

I will refer to the issue of compensation, because it is very important that the Minister takes it on board. An upper level of £600,000 is appropriate where the complainant is still trading and has a choice of which route they wish to pursue. Latterly, a few people sought the view of the DUP and that of a few other parties on the idea that there should be lower and upper limits of compensation. After much research and reflection, we now believe that Her Majesty’s Government should consider that claims of less than £25,000 should only be eligible for an ombudsman-type service and that the upper limit should be £600,000, which is the figure I mentioned earlier. For those affected businesses that are still trading, the lower limit for a financial services tribunal should be £25,000 and the upper limit should be £5 million. Those are the changes we ask the Minister for in respect of compensation.

For those businesses that are now insolvent as a result of alleged bank conduct and behaviour, the upper claim limit should be £10 million and of course such cases can only be dealt with by a financial services tribunal. In all cases where there are claims above that sum, it should be a matter for the commercial courts.

We have met the Minister who is here today, and tomorrow the hon. Member for Thirsk and Malton will meet the Chair of the Treasury Committee. I met a former Chair of the Treasury Committee some time back, and we have met the FCA and the Financial Ombudsman Service as well. We have done all the door-knocking that we can possibly do and what we need, with respect to all those people we have met, is not to hear words; we need to see action and that action has to come from the Minister who is here today.

Once again, I will just reiterate our view in the DUP that all legacy complaints should be the subject of a voluntary review in the first instance by the bank concerned, with priority given to those complaints that Members of Parliament have already brought to the attention of the House—every Member in this Chamber today has done just that—or to the attention of the FCA or the FOS, as set out in early-day motion 1162 in April 2017.

We need accountability in this process; we need those who have been guilty of criminal acts, as has been alleged, to feel the punishment for their wrongdoings; and I believe that the responsibility that I have as the Member of Parliament for Strangford is to speak up for the Armstrongs, the Semples and for many others in my constituency. There are at least half a dozen others who I cannot mention because they are embarrassed; they are in business and they do not want to have their names mentioned. People should be sure that when we mention names, it is like an iceberg, with nine tenths of the people affected not being mentioned, and they are not being mentioned because of the embarrassment. The enormity of this issue must not be underestimated. However, I have already spoken for too long, Mr Robertson.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 11th September 2018 Commons Chamber

[Mr Hammond]

Of course. We have sought, despite the very difficult fiscal circumstances, to address drivers of cost for households, for example by freezing fuel duty and alcohol duty. On the other side of the equation, we have reduced the tax that people are paying on their wages and raised the earning of those on the lowest wages by introducing and then increasing the national living wage.

[Jim Shannon (Strangford) (DUP)]

Despite the freeze in fuel duty, diesel is currently at £1.33 a litre. Rural communities in particular are finding it very difficult. Will the Chancellor indicate the help he can give to rural communities that are dependent on their vehicles to get to work and have a life?

[Mr Hammond]

Many people are dependent on vehicles for everyday living and for work. As I have already said, we understand the pressure that higher oil prices and their feed-through to the pumps presents for individual consumers. We take all such matters into account when setting future policy.

Summer Adjournment

Jim Shannon Excerpts

Tuesday 24th July 2018 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

After such an introduction, I am almost overwhelmed. Thank you so much, Madam Deputy Speaker; you are very kind.

I wish to raise a topic that is very important to me: homelessness on our streets, and what we as communities can do to help. I do not have not enough time to go through this, but I will briefly summarise where we are.

All this started with a discussion in my office during the harsh storms at the end of March. My office manager and a number of friends in Belfast took it on themselves to cook up hot meals and soups, and distribute them to those who were on the streets. We can always measure a nation, a people or an individual by their compassion for others. It is my firm belief that in this developed nation, which seeks to help the poor in developing countries, there must always be a way of ensuring that we take care of our own. Charity must be abroad, but also evident at home.

I put on record my thanks to charities such as the Simon Community that help the homeless. The individuals involved are so kind-hearted as they set out to make the small difference that they can with all that they have.

I want to tell a quick story. A fellow I know quite well from my constituency, who is doing a doctorate in Irish history, recently told me that he had been going down from Ards to Portaferry, admiring along the way all the culture and the rich historic artefacts that we have. It was night-time, so he got on to a bench and went to sleep. Next morning he was woken by a gentleman shaking his shoulder, who gave him a hot coffee and a warm breakfast. In my constituency we have compassion for other people, and I believe that that clearly shows the nature of Strangford. Are we in this place doing enough, like that gentleman, to ease the burden for individuals we perceive as needing a little help?

The Northern Ireland Audit Office says:

“Contrary to popular belief homelessness is not restricted to people who sleep rough, it encompasses a much wider range of individuals in a variety of circumstances”.

We must acknowledge that mental health certainly plays a role. The fact is that, as a result of the troubles, the prevalence of mental health issues is 20% higher in Northern Ireland than elsewhere, and that has a knock-on effect on our homelessness. Indeed, we have a higher proportion of homelessness than any other region of the United Kingdom, so the issue is extremely important. I was startled by the fact that the number of people deemed homeless has increased by 32% in the last five years. Some 12,000 households—individuals and families—were accepted as homeless in 2016-17, and between 2012 and 2017, homelessness in Northern Ireland cost some £300 million. That focuses our minds on the clear issues that we have in my constituency of Strangford and also, I believe, throughout Northern Ireland.

I want to put on record my wonderful relationship with those at the local Housing Executive, who work tremendously hard to secure appropriate housing for needy people as quickly as they can source it. In particular, I want to put on record my thanks to the regional manager for the Housing Executive—Owen Brady, certainly a man of action. He may be small in stature, but I tell you what: he is a man who makes up for that in his energy. Although he is unable to meet the needs of every person who presents themselves to the Housing Executive as homeless, his team works hard to do its best for those who need that the most.

There are simply not enough available houses for those in need. Last year, the Simon Community in Northern Ireland made 369 warm beds available in Northern Ireland, accommodating some 2,391 people. It is increasingly concerned about the high prevalence of mental health issues such as self-harm and suicide attempts among those experiencing homelessness. With mental health issues affecting one in five people in Northern Ireland, that homelessness charity wants to draw attention to mental health issues as both a cause and an effect of homelessness. We must do more in this place to offer and deliver mental health support—not simply to those in the street, but to those who are at risk of shortly finding themselves living in a sleeping bag in our city centre. Do I believe we have got it right? No. Do I believe that we have an opportunity to stop doing the same thing and do it differently? Yes. Do I believe that we must do this urgently? Yes, we must. It is incumbent on us to make changes to the level of housing and mental health needs that are found on our streets in every corner of the United Kingdom of Great Britain and Northern Ireland.

To you, Madam Deputy Speaker, and to Mr Speaker and the other Deputy Speakers, thank you for your kindness, your compassion and your help to Back Benchers. It is always good to speak in this House. I thank my family and my staff, and the good people of Strangford. It is truly the most beautiful constituency—I believe this with all my heart—in the whole of the United Kingdom of Great Britain and Northern Ireland. Come to Strangford for your holidays! I think no matter who you are, you will enjoy it, and I will be there to welcome you.

Madam Deputy Speaker, I wish you and your staff a happy recess. To everyone here who makes our lives much easier—to the Hansard staff who try to understand my Ulster Scots, to the security staff who give us such service, and to those in the Tea Room who look after me with my coffee every day—I say thank you very much.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I thank the hon. Gentleman for his good wishes.

Just before I call the Front Benchers, it might be helpful for the House to know that, following the point of order raised earlier by the hon. Member for City of Durham (Dr Blackman-Woods) about the availability of copies of the national planning policy framework, I can tell the House that the framework has now been laid before House and copies are available in the Vote Office.

Office for Budget Responsibility

Jim Shannon Excerpts

Tuesday 24th July 2018 Westminster Hall

[Luke Graham (Ochil and South Perthshire) (Con)]

I beg to move,

That this House has considered the remit of the Office for Budget Responsibility.

It is always a pleasure to speak under your guidance, Mr Gray. I thank those who have turned up on the last day of Parliament before recess; I know that we are all keen to get back to our constituencies, but the opportunity to debate the remit of the Office for Budget Responsibility was evidently too good to turn down. Before I begin, I would like to acknowledge the OBR, the Congressional Budget Office and the CPB in the Netherlands, as well as the House of Commons Library, as the key sources of my speech.

Credibility has become an enormous problem in modern-day politics—the credibility of not only individual politicians but policies and the numbers in our political discourse. The old adage rings true: Members often use numbers as a drunk man would use a lamp post—as a prop, as opposed to for illumination. We need to get back to numbers helping to illuminate our debate. They should help to inform decision making to bring a degree of objectivity to our debate—in this Chamber and the main Chamber.

I will start by looking in depth at the OBR’s current powers, in order that Members better understand why I believe we should expand its remit. First, I want to provide a brief overview of what the OBR currently does. The OBR was created by the coalition Government in 2010 to provide independent, authoritative analysis of the UK’s public finances, on the back of the 2008 financial crash. It has five main roles, and I will look at each of them, starting with economic and fiscal forecasting.

Twice every year—for the Budget and for the spring statement—the OBR produces five-year forecasts of the economy and the public finances. Forecast details are set out in the “Economic and fiscal outlook”, while the annual “Forecast evaluation report” it publishes each autumn compares the forecasts to the subsequent out-turns and draws lessons for future forecasts. The forecasts also incorporate the impact of any tax and spending measures announced in the two statements by the Chancellor.

The OBR also has a responsibility to evaluate the Government’s performance against targets, using the public finance forecast to judge the Government’s performance against their fiscal and welfare spending targets. Furthermore, in the “Economic and fiscal outlook”, the OBR assesses whether there is a greater than 50% chance of hitting the targets under the current policy measures.

For example, in March 2014, the Government set a self-imposed cash limit on a subset of their social security and tax credit spending. In the 2016 autumn statement, the Government redefined the cap to apply only in 2021-22, preceded by a pathway to that fixed date. The charter for budget responsibility requires that the Government set a new welfare cap in the first Budget of a new Parliament, so the cap was adjusted in the 2017 autumn statement, which applied to 2022-23. It is the OBR’s responsibility to monitor the Government’s progress against that pathway and to assess in each “Economic and fiscal outlook” report whether they are on course to meet the cap in the target year.

The OBR’s annual “Welfare trends report” also examines the drivers of welfare spending, including elements inside and outside the cap. Those represent just some examples of how the OBR continues to monitor and evaluate the Government’s performance against their own targets.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on bringing this matter to Westminster Hall for consideration. Does he agree that the OBR’s team has withstood internal and external scrutiny and audits extremely well? There is certainly scope to expand its remit, to deliver a high level of accountability across the wider region. In other words, what the OBR does now could go further. Does the hon. Gentleman agree?

[Luke Graham]

I agree, and I will go into more detail later on exactly how I propose the powers should be extended and how to move forward.

The OBR provides sustainability and balance sheet analysis, which assesses the long-term sustainability of the public finances. The OBR’s “Fiscal sustainability report” sets out long-term projections for different categories of spending, revenue and financial transactions, and assesses whether they imply a sustainable path for public sector debt. That has arguably been a particularly important metric as we have sought to make the public finances more manageable and sustainable after the financial crash in 2008. There was a kick there aimed at the last Labour Government, but I will resist that for now.

The “Fiscal sustainability report” also analyses the public sector’s balance sheet, using both conventional national accounts measures and the whole of Government accounts, prepared using commercial accounting principles. Since 2016, the “Fiscal sustainability report” has been published once every two years, reflecting the frequency with which the Office for National Statistics updates its population projections.

The OBR evaluates fiscal risks every two years by publishing a comprehensive review of the risks from the economy and financial system in its “Fiscal risks report”. The first was published in July 2017, and the OBR analysed tax revenues, public spending and the balance sheet and included a fiscal stress test. Furthermore, the OBR produces central forecasts and projections for the public finances, while the “Economic and fiscal outlook” and the “Fiscal sustainability report” include discussion of the risks—both upside and downside—to those forecasts and projections.

The whole of Government accounts provide further information on specific fiscal risks, notably contingent liabilities such as Government guarantees, and that is in the “Fiscal sustainability report”. As a member of the Public Accounts Committee, I have the joy of taking part in, and leading on, the inquiry into the whole of Government accounts. The Committee recognised the fine work of the Departments and the civil servants that pull together those accounts, which really are of a very high standard and are certainly world leading.

--- Later in debate ---

[Jim Shannon]

I thank the hon. Gentleman for the very detailed, comprehensive speech that he is making. He has outlined clearly the issues in relation to this organisation; I just wonder whether he has given any thought to the idea that teamwork makes the dream work. Does he agree that there is a need to ensure that there is constant training of team members, so that the natural ingoing and outgoing nature of the job that they do does not affect the high standard of work being provided by the office? In other words, it is important that the staff are trained and kept up to date with all things that are happening in order for a good organisation to work better.

[Luke Graham]

I do agree. As I have mentioned, a hallmark of the CBO is the high standard of staff it employs. That is based on their expertise and ensuring that the right people are hired for the right role and that training is maintained in the office as well, so that expertise is not lost with standard staff turnover.

The CBO maintains its objectivity through a rigorous system of checks and balances. All the CBO’s cost estimates and reports are reviewed internally for objectivity, analytical soundness, and clarity. That process involves many people at various levels in the agency. Analysts’ consultations with outside experts help them to hear all perspectives on an issue.

Furthermore, the CBO evolves as the needs of Congress evolve. It has remained true to its original mission, but, as legislation has grown more complex, it has found itself spending more time providing preliminary analysis and technical assistance during the drafting stage of laws. The CBO is being asked more often to prepare cost estimates for Bills that are heading for votes without being marked up by committees first.

I emphasise that the CBO is strictly non-partisan. It conducts objective, impartial analysis, and importantly that analysis is accepted among economists and, consequently, by both parties in Washington. The CBO has historically issued credible forecasts of the effects of both Democratic and Republican legislative proposals.

That brings me to the last thing that I want to propose for the OBR. It is crucial that the independence of the Congressional Budget Office is accepted and beyond reproach, because it monitors and marks the policies and proposals of not only the Government, but the opposition. The independence of the Office for Budget Responsibility is, I believe, beyond reproach, but it only monitors Government policies. The Budget Responsibility and National Audit Act 2011, which founded the OBR, states that where any UK Government policies are relevant to the performance of the OBR’s duty of examining and reporting on the sustainability of the public finances, the OBR

“may not consider what the effect of any alternative policies would be.”

That rules out analysing Opposition spending plans.

My proposal, therefore, is to extend the powers of the Office for Budget Responsibility to create a body that replicates the function of the CBO in the United States, providing independent analysis to hold spending commitments to account. The aim of my proposal is to extend the powers of the OBR, providing it with additional responsibility to assess, analyse and score every piece of legislation that goes through the Houses of Parliament for financial or fiscal impact. It will maintain its strict independence, making it acceptable on both sides of House, regardless of which party is in government.

The purpose of my proposal is to enable the OBR to provide independent information and analysis, in order to combat “fake news” and misinformation being circulated on Government and Opposition spending plans. Wild spending commitments have been made, particularly by Opposition parties in the past, for example over the abolition of tuition fees, with no responsibility to deliver while out of office and, therefore, no accountability.

Let us look at the Brexit debate. How much better could the debate have been had there been an independent body, such as the OBR, providing accurate analysis of the impact of the costs and opportunities of Brexit? It would have taken the pressure off the Government and given us analysis that would be accepted by all parties. We could then have debated how to make the best of Brexit—or not—rather than the endless debates we have had over bus-side promises, scaremongering over power grabs or whether the Brexit deal was sufficiently hard, soft or anywhere in between.

Homelessness among Refugees

Jim Shannon Excerpts

Tuesday 17th July 2018 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Member for Stretford and Urmston (Kate Green) on setting the scene for us very clearly. There have been some significant and helpful contributions on an issue that we all feel strongly about. I have been very clear about the need for a manageable number of vetted refugees. It is not enough to tell people that they are free to live in the UK without also giving them the tools to begin their new life, find work and integrate into the community that they have been moved to. For every refugee whom we agree to take, there must be funding and the will in the community to integrate those people. If those things are not there, we are failing them, and we need to do something about that. I am clear that we have a duty to help, which does not mean simply moving them from a refugee camp in Europe to one in the UK. We must move them into communities, and we cannot do that when we oversubscribe.

I recently spoke to the inspector who had the task of settling refugees in my area. He said they integrated into communities best when they were in small family units that the neighbourhood wanted to help. An example of that is happening in my town, Newtownards. Four Syrian families were relocated together. It was important that they were together; they were clustered in one area, and had houses together where they had contact with each other. My colleague and hon. Friend the Member for East Londonderry (Mr Campbell) referred to the importance of faith groups, and they are important in my constituency. It was faith groups who came together to help the refugees when they arrived in Newtownards. It was the Minister and people of Strean Presbyterian church, and the Link group in Newtownards, which brings together a number of churches. Whenever—I say this gently—Government Departments were not as quick off the mark as they perhaps should have been, Link helped, physically, with getting furniture and giving clothes and food, and with being someone to talk to.

I met the Syrian families. I thought it was important to do so, first to welcome them to the area, and secondly to show them that politically they had support at the highest level. There was no bother about relocation in Newtownards. There never would be; but there is a language barrier and it is important to deal with that early on. Other hon. Members have referred to it and I know how important it is. Being able to speak the language is necessary to get a job and do the shopping, and so that children can go to school. The children are going to school, and we have many good people working together to make those things happen.

My hon. Friend the Member for Belfast East (Gavin Robinson) has a Red Cross group in his constituency. It does excellent work. I met someone from the group at Westminster last week, and have met others locally. They do tremendous work on integrating people and helping them to settle across the area.

[Gavin Robinson]

I am glad that my hon. Friend has mentioned the role played by the Red Cross across Northern Ireland. It is still a profound regret to me that not one of the Syrian refugees who relocated to Northern Ireland has been housed in East Belfast. There is a barrier to the provision of houses to those individuals, who desperately need them. There is a welcoming community that wants to host them if they come to my constituency. Does he agree that the situation needs to change?

[Jim Shannon]

I am almost flabbergasted by that news, Sir Henry. Given that we have been able to relocate four families close together in Newtownards, with the support of the local churches in making it happen, I am really disappointed by that. It is a big issue to be addressed, and that should be happening now. I am sure when my hon. Friend phones those concerned to remind them about it, their ears are burning.

I thank the many sterling workers who think long and hard about, and put hours into, making the transition into British life easier for those who come, and the community where they are placed. The hon. Member for Stretford and Urmston mentioned Law Centre NI, and I shall quote a briefing it produced. It is important to set out the changes that it wants, and how they would make integration a wee bit easier. I promised that I would raise the matter on its behalf, and bring it to the attention of the Minister, whose response I look forward to. Refugees are given 28 days to leave Home Office accommodation and find housing, benefits and employment. If it had not been for the people of Newtownards—the churches, committee groups and Link group—coming together for local individuals, we would not have had the smooth integration that was needed, when it was needed. If people are far from home in a community that they are not familiar with—a different culture and tradition—they will all of a sudden feel very much on their own. What has helped those people has been their faith and their integration into church life in Newtownards town.

In the 28-day period, people are expected to apply for social housing, but single adults are rarely found to be in priority need and there is a shortage of social housing, as my hon. Friend the Member for Belfast East said. If they want to find private rented accommodation, they have in reality less than 28 days to arrange it. There can be delay in relation to their notification of status. We can see how problems multiply. The law centre said:

“The move-on period for people granted status should be extended from 28 days to at least 56 days to reduce risks of homelessness amongst refugees and bring Home Office policy in line with changes recently introduced under the Homelessness Reduction Act and that the impact of procedural adjustments within the move on period introduced in recent months are unclear so a full evaluation of the Post Grant Appointment Service and the pilot that preceded it should be published urgently.”

Law Centre NI is clear about what is needed:

“Learning from this should shape the support that refugees receive around housing and benefits across various government departments.”

Its experience, and the importance of that, are clear.

People who have been financially supported by the Home Office on £37.70 per week during their asylum claim, and who have not been permitted to work, will have been unable to save the funds needed to access private rented housing in advance. Having been placed in no-choice accommodation during the asylum process, they will also often have limited networks to rely on after they move in. There are significant obstacles to getting access to essential support such as benefits and universal credit, such as proof of address and incorrect advice from the jobcentre. Law Centre NI points out that integration loans should be adjusted and monitored to reflect the private rental market more accurately. It refers to the

“public body with a duty to refer”

refugees to local housing authorities under new regulations under the Homelessness Reduction Act 2017.

There are those who say that we can help, and clearly we must. We must help and put our money where our mouth is, like the man with the starfish. We all know that story, about the man picking up stranded starfish and putting them back, who when told “You can’t help them all,” says “I can help this one.” That is what we are doing—“Helping this one.” It must be done in a manner that provides security, hope and a future. If that means that we limit the numbers that we have, to ensure the care that we give people is appropriate and worthy of the British name, that must be the case. Homelessness in the UK is not what we want to offer; we want to offer hope, community, education, healthcare, friendship and freedom to live and work. We must seriously consider the requests of Law Centre NI on behalf of the Refugee Council, the No Accommodation Network, Crisis and Asylum matters.

Air Passenger Duty

Jim Shannon Excerpts

Tuesday 10th July 2018 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is always a pleasure to follow my hon. Friend the Member for Belfast East (Gavin Robinson), who made a detailed, informative presentation about air passenger duty. I commend him for his choice of tie colour. There is no better colour to wear as we approach 12 July than the one he is showing, not only to Westminster Hall but to the world. Well done to him. I hope he will be wearing the same tie—perhaps not exactly the same tie—in the run-up to the 12th.

I thank my hon. Friend for obtaining this debate and for his detailed presentation. The Democratic Unionist party has been trying to make progress on this issue for many years. He has outlined the facts. He is correct that the stats are sometimes a bit turgid, but they underline the importance of this issue. UK air passenger duty is currently the highest tax of its kind in the EU. That causes us some concern—not because it is about the EU, but because it gives us a comparison across the whole of Europe. The next-highest air passenger duty in the EU is Germany’s, which is half the UK’s. That indicates how far we have to go even to make a small difference. The Minister must respond to that. APD is the highest European aviation tax for short-haul and long-haul flights. For long-haul flights, APD is the highest rate of tax in the world. Again, that illustrates how important this issue is.

Most countries do not have a tax on air travel, and many countries that did have an equivalent tax abolished it due to the negative impact it had on competitiveness, connectivity and the wider economy. They recognised that change was needed. If we need an incentive, we should look at what other countries have done and do likewise.

APD harms UK connectivity, and we are losing out to our European neighbours, particularly in respect of the emerging markets with which the UK should be strengthening its trading relationships after Brexit. We have seen the new flight connections with China advertised in the tube stations; Chinese airlines are trying to build up such connections. That is another part of the world with which we can have connectivity through air flight connections, and we should be looking at that.

My hon. Friend and I were talking before the debate about the figures for our neighbours in the Republic of Ireland. This year, Dublin airport had its highest ever number of passengers—29.6 million. Can we catch up with that? I am not sure we can, but we should at least try to respond in a way that enables us to get some of that passenger potential and retain it for ourselves.

[Mr Gregory Campbell]

My hon. Friend is outlining the numbers for Dublin airport—it will probably breach the 30 million mark this year—but is he aware that Dublin is constructing an additional runway to take advantage of the nil rate of APD? It is not only getting 30 million passengers; the number will go way up beyond that. Northern Ireland’s hospitality and tourism industry needs a competitive advantage to compete with that.

[Jim Shannon]

My hon. Friend always brings intelligent thought to his interventions. I confess that Dublin gives me easy access to the States every year. It is the airport that my family and I use whenever we go on holiday. One of the reasons why we do that is the customs connection. We do our customs clearance in Dublin, and when we get to the far side, we get off the plane, get our baggage, and we are away. With great respect, if we go from Heathrow to New York, we spend an hour in the long customs clearance line.

[Nigel Dodds]

My hon. Friend points to an important factor, but it has been proved that the single biggest factor that causes people to travel through Dublin airport is price. One fifth of all visitors to Northern Ireland use Dublin airport. The trouble is that many people who arrive at Dublin airport from the States and elsewhere do not, unfortunately, leave the greater Dublin vicinity or southern Ireland. They do not come north; that is the reality. Price is the crucial point. My hon. Friend refers to another important aspect, but air passenger duty means that he and many of my constituents are being directed—almost shown the road—to Dublin airport.

[Jim Shannon]

My right hon. Friend clearly states the real issue, which is price. He is absolutely right. I was just saying that one of the other advantages is customs clearance, which probably suits many, but the thing that puts people there first is price. Customs clearance is an incentive but an extra which makes things a wee bit easier. My right hon. Friend is also right about Tourism Ireland needing to ask how better to connect passengers who come into Dublin airport so that they do not stay in Dublin but go north. To be fair, Tourism Ireland does things well when I go every year to the Milwaukee Irish Fest in Wisconsin, but we can and should be doing a lot more. My right hon. Friend is absolutely right about that. First and foremost, people are attracted by price. That can be applied to many facets of life, such as shopping trends or changing shopping practices.

According to a report published by Airports Council International, this year the UK was the only European nation to see a decline in its direct connectivity. That is worrying. If that is happening and a trend shows that, we need to do something positive and constructive about it right away. The reason for our focus on APD is that we believe in Northern Ireland’s ability to compete with the rest of the UK, and any area, to attract and secure global business. Belfast has clearly become the cyber-security capital of the UK and has the potential to do even more than it has so far. Why is that? Look at the reasons to learn how important it is for us to have the APD issue addressed, which would be of advantage to other parts of the UK as well.

In Belfast and other cities in Northern Ireland, global tech names such as Citi or Allstate work in the sector with silicon valley firms such as BDNA, and they are all recognisable. Not only does our highly skilled workforce attract global investment, but our indigenous tech firms such as Kainos, Novosco and First Derivatives grow in size and are becoming global leaders, all in a region of Northern Ireland. We must pay tribute to the Department of Enterprise, Trade and Investment and to the Ministers—when the Assembly was working—for their hard work, which is still delivering today, even though the Assembly is not functioning as it once was—the seeds were sown and the dividends are being paid.

Much of our attraction is the skills base, supported by international-standard research facilities, with education and big business working together. We have the education, the big business, the opportunities, the quality of graduates and all those things together—Northern Ireland again leading the way for the UK to follow. That is how things happen and benefits are achieved.

Northern Ireland is consistently the top-performing region of the UK in national exams at age 16 to 18. The fact is that we have the graduates, and that encourages the investment, which is perhaps why we have done so well. Digital firms want to invest because the skills base is there in Northern Ireland, and still available, because we continue to produce graduates to build above and beyond where we are. We have the highest percentage of qualified IT professionals in the UK and Ireland, with more than 77% holding a degree-level qualification.

I say with respect to the Minister and all other regions, Northern Ireland is leading the way. From a small base of 1.8 million people—although the latest stats tell us we are nearly at 1.9 million—we are up there with London and other parts of the United Kingdom. Post Brexit, therefore, we are in a position to do great good for the United Kingdom of Great Britain and Northern Ireland. This is an opportunity that we should be taking advantage of. Some 77% of post-A-level high school graduates in Northern Ireland go on to further and higher education, compared with the UK average of 71%. Again, Northern Ireland is leading the way.

All such things make it attractive to come to Northern Ireland. Furthermore, labour and property costs for a 200-person software development centre in Belfast are 36% less than in Dublin, 44% less than in London and 58% less than in New York. We can see the benefits of coming to Belfast and Northern Ireland. Improved connectivity, which is central to this debate, will only enhance our global potential. How can we build on our base and our level of delivery in Northern Ireland and across the whole of the United Kingdom? The motion seeks to highlight the importance of the ability to hop on a plane and get anywhere in the world quickly—the need for competitive APD, to allow us to show the world that we are only a short, cost-effective flight away.

Only aviation can connect the United Kingdom with existing and emerging markets vital to our post-Brexit future, producing and maintaining thousands of jobs, and indeed the thousands more jobs to come. At the moment we have a competitive disadvantage that we cannot afford: we pay more than double the aviation tax of our nearest European trading rival, Germany. The tax on trade hits UK businesses as they seek to expand international trade essential to our post-Brexit future. It acts as a brake on airlines’ developing new routes to the very markets that UK businesses need to reach.

If the Government want to signal that Britain is truly open for business as Brexit approaches, what better way could there be than to cut this tax on trade by at least 50%, to bring us in line and give us an advantage? The high rate of APD is a brake on expanding links with the world, meaning that the United Kingdom of Great Britain and Northern Ireland loses out on connectivity opportunities, and it is one of the main reasons why Germany is better connected to South Korea, Japan, China and Brazil than the UK. It should be the other way around and we should be doing something to address that.

[Mary Glindon]

Does the hon. Gentleman agree that this is not only about Germany and further abroad? Under the Scotland Act 2016, Scotland is able to go ahead with its air departure tax proposal, which is a reduction of 50%, and that will affect the north-east, with a further bad effect on Northern Ireland in addition to the Dublin effect.

[Jim Shannon]

I thank the hon. Lady for her intervention and her wise words. The Minister has heard what she said, and I agree with her, as others do. We need to have a strategy and policy that move us forward together, so that we can all take advantage of what happens, rather than efforts that are divisive—perhaps the wrong word—or different ways of trying to achieve the same goal. I therefore wholeheartedly support the A Fair Tax on Flying campaign and its call for at least a 50% reduction in air passenger duty. I urge all Members to support the AFTOF campaign.

My mother often urged me not to be penny wise and pound foolish. Many people would say that that is the Ulster Scot in her, and in me—every pound is a prisoner, and we were told to look after it and to look after it well. There is nothing wrong with that: thriftiness is good—my children comment on that to me, but that is by the way, and I hope that they learn the lessons that my mother taught me, and that I have tried to teach them. The point is this: we need to focus on the immediate penny, but sometimes we forget the value of the pound. That was what my mum was telling me. We need to look at how we spend better to grow our economy.

From the Minister’s response to various comments, I know that he is sympathetic to our point of view. It has been outlined to me that up to £175,000 can be generated through trade from a high-growth market per average flight added. That is a massive amount of money per flight added, and gives us an idea of our potential to grow.

[David Simpson]

I am sure my hon. Friend will be as surprised as I was to hear that within five years it is reckoned that Dublin airport will be a strong competitor of Gatwick. At one point that was unimaginable, and it is simply because of APD.

[Jim Shannon]

My hon. Friend is absolutely right. Those are all the arguments and the evidential base from places around us. We should be looking at how such places advance and how we can do so alongside them or do even better.

New daily flights to the eight largest high-growing economies could generate as much as £1 billion in additional trade per year for the economy—that figure multiplied up from the one flight to all the flights together. The economic value of new connections to five Chinese destinations, which I mentioned earlier, will add £16 million to GDP and 530 new jobs. That alone gives an idea of the advantage to be gained there.

I do not want to make a pun, but I urge the Government to consider a pilot scheme—for a methodology whereby we can move things forward. Research by PwC shows that more tax revenue would be raised from other taxes than would be lost from abolition of the APD, with a net £570 million in extra tax receipts in the first fiscal year. Positive benefits through to 2022 could add up to as much as £2 billion in tax receipts additional to the total in the status quo. These are not just enormous figures; they represent our potential growth and what we can do. APD abolition could boost UK GDP by almost 0.46% in the first year, with ongoing benefits up to 2022. The increased economic output associated with abolition could lead to the creation of 61,000 jobs by 2022, which is not very far away. At my age, the years seem to go by quicker, but the fact of the matter is that we would quickly see the advantages.

I join the calls to sincerely urge the Government to reduce APD by at least 50%, to ensure that the United Kingdom of Great Britain and Northern Ireland, better together, is more connected to the world, including emerging markets, so that there is increased choice for holidaymakers and to demonstrate that a truly global Britain is open for business. After Brexit, we should be even more open than we are now.

--- Later in debate ---

[Anneliese Dodds (Oxford East) (Lab/Co-op)]

It is a pleasure to speak in this debate with you in the Chair, Sir David. I congratulate the hon. Member for Belfast East (Gavin Robinson) on securing the debate, which has been very inclusive and interesting, and on his illuminating speech.

Many of these issues have been discussed before, as the hon. Gentleman mentioned. They were foreshadowed in our debates about recent Finance Bills, in which I spoke on behalf of the Opposition. Labour argued in those debates that the Government need to be clearer about their long-term plan for APD. There have been a number of reviews of APD’s efficacy, proportionality and impact on competitiveness since its introduction in 1994, and we need to situate this debate in that context. However, despite those reviews, a number of questions still have not been answered, so I hope the Minister provides some indication of the Government’s thinking.

As has been indicated in previous debates on this topic, the Government estimate that APD contributes about £3.1 billion to general taxation. I am well aware that the hon. Gentleman and others suggest that, if one takes a holistic view of its fiscal impact, APD may be fiscally positive on the ledger. It would be helpful to hear from the Minister whether the Treasury is conducting a 360° review of APD’s fiscal impact. I understand that PwC has carried out research, but it would help if the Treasury were focused on this issue, too.

In response to the comments by the hon. Member for Shannon, I cannot resist—

[Jim Shannon]

For Strangford—that’s a step too far!

[Anneliese Dodds]

I beg the hon. Gentleman’s pardon. I am very sorry about that. He will perhaps be even more perplexed when I mention that, rather than pound pinching, my family talked about looking after the pennies and the pounds looking after themselves. Perhaps that reveals a psychological difference between lowland and Ulster Scots. Of course, we need to look after the pennies and the pounds—that is the whole point. We need to trace exactly the impact of APD.

Studies suggest that the evidence about APD’s impact on passenger numbers is mixed. As many Members said, such a duty is unusual in the international context, but the number of passengers using UK airports has increased by 15%—a substantial increase—in the past five years. Of course, APD needs to be considered in the context of there being no tax on aviation fuel and no VAT on domestic or international flights. There are also different levels of APD for different kinds of flights, and exemptions for children were introduced in 2015 and extended in March 2016.

I will focus on four issues: the long-term viability of APD, regional competitiveness, the unequal impact of APD on different groups of Britons, and environmental issues. From a revenue point of view, there are clearly significant concerns about APD’s long-term viability. The Government have moved to provide industry with earlier notice of APD changes. The rates for next year were announced last autumn. That is surely positive for industry but, as I mentioned, we have had no indication of the Government’s view of the long-term trajectory of the tax, particularly in the context of the race to the bottom occasioned by internal competition in the UK. The tenor of this debate demonstrates that the starting gun has been fired on that race—it has begun, and we need to know the Government’s response.

We must view increases or reductions in APD in the context of taxation generally across income levels. It is notable that, given the increasing popularity and accessibility of air travel, many more people pay APD. As my hon. Friend the Member for North Tyneside (Mary Glindon) said, many more people enjoy hard-earned holidays abroad, and there are also people who need to travel abroad for family or work reasons.

Equally, APD is far less significant for household incomes than VAT, another transaction-based tax, which Members touched on. We would be in a different situation if the potentially regressive impacts of consumption taxes as a whole were cancelled out by progressive income taxes, for example, but of course the Government reduced the top rate of income tax. The latest Office for National Statistics figures suggest that overall, unusually in Britain’s history—at least in recent times—people in the least well-off decile pay a greater proportion of their income in tax than those in the most well-off decile. That is a peculiar situation.

Another concern we must note is about APD’s impact on regional competitiveness, which has been a focus of the debate and was perhaps its motivation. As we have discussed, APD levels were devolved to the Scottish Government in the Scotland Act 2016 and initial suggestions were that it would be halved and then potentially removed altogether.

We have discussed at length changes mooted in Northern Ireland, where there has been a call for evidence. We got useful detail about the operation of that from the hon. Member for Belfast East. As I understand it, the Government stated in February 2015 that they would also consider the case for devolving APD to the Welsh Assembly. We have therefore seen much change in relation to this duty.

All those changes naturally raise questions for airports contiguous to other airports not subject to the same APD levels, whether they are contiguous to Scotland or to the Republic of Ireland. We heard interesting thoughts on that from the right hon. Member for Belfast North (Nigel Dodds) and the hon. Members for Upper Bann (David Simpson) and for East Londonderry (Mr Campbell). Of course, the hon. Member for Strangford (Jim Shannon) —I have got it right this time—gave us a typically passionate and inclusive speech and a glimmer of his holiday plans. I hope they are more sedate and relaxing than those of the hon. Member for Henley (John Howell), whose itinerary of recent movements sent my head into a bit of a spin.

We also heard from my hon. Friend the Member for North Tyneside, who pointed out research suggesting that the duty has a significant impact on people living in her area. She is always a doughty supporter of their interests.

The Treasury published a discussion paper on options to support English regional airports in July 2015, but it is difficult to find out what concrete steps have occurred since then. Furthermore, the Government have said they will look at the matter once legislation concerning state aid changes is produced. An indication from the Minister of the Government’s thinking on that would be helpful; it is particularly important, given the points made by the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) about the situation for the highlands and islands.

There is often confusion in this place, though certainly not on the hon. Gentleman’s part, about the impact of EU state aid provisions in general. Of course, they prevent the provision of arbitrary support, but, as he suggested, low levels of population could be a feasible basis for such an exemption.

Leaving the EU: Customs Arrangements

Jim Shannon Excerpts

Tuesday 10th July 2018 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is always a pleasure to speak in debates, Mr Streeter, no matter what the issue may be, but, as a Brexiteer, I will give an opinion that might not go down well with others in this Hall. However, it is my opinion and that of many in my party. We are where we are and we have to try to find a way forward. I am very much one of those guys who tries to find a way forward. Coming from Northern Ireland and from a political background, and understanding the political process of where we have got to, I feel that if there is a will to find a way forward, we can find it. I want to express my thoughts in a constructive fashion, and hopefully other Members will appreciate what I try to say.

First, I thank the hon. Member for Wimbledon (Stephen Hammond) for securing this debate and allowing me the opportunity to speak in it. He succinctly and purposefully put forward his viewpoint, as other Members have done. With the increased uncertainty regarding the bill for our leaving Europe, it is more important than ever that we remember what people voted for when they voted to leave in June 2016. I am clear about what I and the constituency of Strangford voted for: we voted to leave by 56% to 44%. I am very clear about that.

I asked the Prime Minister a question yesterday on fishing, which is important for my constituency, and she answered it. I hope Members get a chance to read it. One could not be anything but clear about what the Prime Minister said in relation to fishing. I am reassured by her response to my question. The Minister’s Parliamentary Private Secretary, the hon. Member for North Cornwall (Scott Mann), is interested in fishing issues and I know he will have taken note of that. That is something on which he and I would be on the same wavelength; we are probably both encouraged by it.

People did not vote to straddle the EU and the UK, for outside influence in law making to be countenanced, or to retain residual membership of Europe. They voted to leave. I voted to leave, and my constituents voted to leave. That is the principle on which everything we do must be based. I understand that the complexities are incredible. I look on everyone in the Chamber as friends and colleagues, and sometimes we differ in our opinions and the way we look at things, but the right hon. and hon. Members present want, as I do, to find a way to an agreement and understanding with Europe.

[Heidi Allen]

The hon. Gentleman is right that a 52% to 48% result has to look like a compromise that the whole country and Parliament can somehow find a way to get behind, so does he agree that the Prime Minister’s outline proposals from Chequers go some way towards that? They would satisfy him as to what is needed for the fishing industry; but I will never forget the unemployment figures given by the hon. Member for Bishop Auckland (Helen Goodman). Surely the hon. Gentleman must agree that the right proposals will safeguard all the industries in question, and that they must include close alignment to something like the customs union.

--- Later in debate ---

[Jim Shannon]

I have some concerns about the customs union; but the hon. Lady will know that. We need to focus on how to get a workable relationship with the EU, where it understands that it needs us and—I have to say—that we need it. There is a need for us both to find a suitable—perhaps complex—way forward, ensuring that trade can continue. Like the hon. Lady I am concerned about how business will be affected. We cannot ignore the comments made by big business this last while; but many other businesses are quite confident about the future. I would rather there was a clear agreement and understanding. I take my opinion from Northern Ireland and the Republic of Ireland; I am conscious of that perspective, and where we are.

[David Linden (Glasgow East) (SNP)]

I am grateful to my hon. Friend—he is truly a friend. He speaks about the importance of listening to business. Last week the Financial Times carried a report suggesting there were fears about food rotting in ports as a result of the Government pursuing a no-deal Brexit. The hon. Member for Strangford and the small group of 10 MPs that he is in have considerable power with the UK Government. Will he use that to impress on the Government the view that we cannot have a no-deal Brexit, as it would be so bad for ports, including those of Northern Ireland?

[Jim Shannon]

I do not believe there will be food rotting at the ports. I am more of an optimist about the future. Forgive me for saying it, but I always see the glass as half full rather than half empty. I look positively for the way to achieve our goals. I read the same press report as the hon. Gentleman, but we need to focus on where we are.

The Prime Minister has set out her stall clearly. I am a confirmed Brexiteer—it is not a secret, and hon. Members will know it. I feel that we would be better out of the EU, and I want to be out of it. The Prime Minister has made it clear where we are going; but I feel we need an agreement with the EU, to move forward. I hope that the Prime Minister can achieve that and I support her in trying to do it; but I am a single voice in the Democratic Unionist party. There are 10 of us, with a collective voice, and the 10 of us together will support the policy we agree on. I suppose that at this moment we may not be altogether sure what the Prime Minister’s policy is; but I hang on to the assurance that she gave me yesterday about fishing. I want to hang on to her other assurances as well.

I understand that the divorce settlement is onerous and acrimonious, but there is a way forward and we must find it. How are we, in the Republic of Ireland and in Northern Ireland, to achieve it? Last year I spoke at Irishfest in Wisconsin. It was a very good event. The Culture Minister of the Republic of Ireland spoke about Brexit from the Republic’s perspective, and I spoke about it from the Northern Ireland perspective. When the debate was over there was not that much difference between what we were trying to achieve. It meant we both had a mind to find a way forward. I want the border as it is. Administratively there must be a way we can get that.

We must also be ever conscious and mindful of the security and safety of the United Kingdom of Great Britain and Northern Ireland. As is true anywhere, the Government have a responsibility for the safety of every citizen. How are they to go about that? It will be done in the same way as the Garda Síochána, the Police Service of Northern Ireland—and before that the Royal Ulster Constabulary—MI5, MI6, and all the other bodies involved have done that work over the years. That is quite easy. Vehicle number registration is something that perhaps we have not done much with. The agri-food sector is very important for my constituency and it can be considered as an example, administratively; milk products cross the border three times and that happens easily because we are in the EU. However, we will be out of the EU on 31 March, so we must look towards that time.

[Hywel Williams]

The Exiting the European Union Committee visited south Armagh at the end of last year and of course the border we saw then is the one that the hon. Gentleman wants. Everyone we spoke to in the north and the south wants it—that is, virtually no border. Does the hon. Gentleman agree that it is also desirable to have a similar border between Dublin and Holyhead?

[Jim Shannon]

I am sure that the Government will respond in relation to the arrangements that are already in place. I do not have the knowledge of Holyhead and what is going on there to comment; but I am fully aware of what happens in south Armagh and in the Republic of Ireland and Northern Ireland, and I think I speak with some authority about that.

I want to be careful about the time, Mr Streeter; am I allowed some leniency as to extra time?

[Mr Gary Streeter (in the Chair)]

There is a minute to go.

[Jim Shannon]

My goodness! Then I will go on to mention that the Prime Minister said at Prime Minister’s Questions that we are working towards a

“Brexit that ensures that we are out of the customs union, we are out of the single market, we are out of the jurisdiction of the European Court of Justice, we are out of the common agricultural policy, we are out of the common fisheries policy, we bring an end to free movement, we take control of our borders, and we have an independent trade policy, but we are also able to have a good trade arrangement with the European Union, protecting jobs and prosperity for the future.”—[Official Report, 4 July 2018; Vol. 644, c. 315.]

That is what I wanted to hear, and I will support her to achieve that.

My party’s leader, Arlene Foster, has said:

“People voted to take back control of their laws, borders and money, not to make Northern Ireland’s constitutional framework resemble the backside of a tapestry.

To create some kind of hybrid status for Northern Ireland where we would be subject to laws and regulations set by others over which we would have no say, whilst setting us apart from our biggest market in the rest of the UK, is sheer madness. It would be the road to economic ruin and the beginning of the constitutional break-up of the United Kingdom.”

People cite the Belfast agreement as a reason to retain a special status in the Union. They say that the terminology that asks for the encouragement of cross-border trade means that we must continue the status quo. That is not the case. The only say that the Belfast agreement has in the matter is the fact that any calls for unification with Ireland must be done through a border call. That has not been done. A back-door unification through a segregated UK is not acceptable. Let us make it clear what we are saying. I look to the Minister in this matter. This customs arrangement must ensure that the integrity of the UK is retained, and that is not simply for the benefit of Northern Ireland—it is for all of us, the United Kingdom of Great Britain and Northern Ireland. As I often say to my Scottish National party friends, we are better together.