(13 years, 11 months ago)
Commons ChamberI thank you, Mr Deputy Speaker, for allowing me to say some words in favour of the Bill, and I congratulate the hon. Member for Congleton (Fiona Bruce) on a very good maiden speech. The spirit of her predecessor certainly lives in her, and I wish her well in the Chamber.
A society is judged very much on how it treats its young and vulnerable, on how it looks after and cares for the elderly and on how the young are given opportunities. I hope, therefore, that no one is judging us in the Chamber by the standard we have set in the treatment of Equitable Life members, because if they are, they will be sorely disappointed. This debate has continued without redress, at least until now, and with no help from this place, at least until now, and EMAG estimates that about 32,000 policyholders have died since its campaign for compensation began—a stark figure already mentioned today—with members continuing to die at a rate of about 100 per week. Those are stark facts when we realise that these are people’s lives we are talking about.
By the time this scheme starts paying out next year, 13,000 more members will have passed away, bringing to 43,000 the total number of people who have struggled more than is fair or judicious because no solution could be reached or help given by the Government when it was needed. I am glad, therefore, that today’s legislative change is passing through the Chamber, and I look forward to further contributions when the programme goes forward.
I have some concerns, however, about the quantum. Everyone seems to be in favour of the process, but we have not been able to identify the percentage. I have been contacted by Equitable Life members, including a gentleman who is terminally ill—this sort of situation will be replicated across the whole United Kingdom—and is desperate to receive the money so that his wife will be able to live comfortably. Surely, this is the very thing that we should be trying to do; this is the whole purpose behind pension schemes and Governments encouraging people to invest in private pension schemes.
I stand here on behalf of that terminally ill gentleman and others like him. I could do nothing else, because my job as an MP is to fight on behalf of those who come to me. That is what we are here to do, and I urge that a reasonable solution be agreed today, so that people can receive their compensation in time for it to make a positive difference to their lives. I have constituents who were paid half of what they expected on the commencement of their pensions in 1992, when petrol was about 40p a litre. It is now three times that, and the pensions are worth half their value. That is an indication of where their pension schemes are and of how Equitable Life members are losing out. Lives have been severely affected, and it is our duty in this place to redress the balance as much as we can.
Does my hon. Friend accept that it is the duty of the Government to take this matter forward, especially given that when in opposition and during the election the Conservative party pledged to implement the parliamentary ombudsman’s report and recommendations, which for most people meant not a small fraction of their relative loss but substantial payments?
My hon. Friend must have read my mind. The parliamentary ombudsman’s report describes the Equitable Life situation as a decade of regulatory failure, and her second recommendation is that the Government should set up and fund a compensation scheme with the aim of putting people who have suffered a relative loss back into the position they were in before maladministration occurred.
The issue facing us is the percentage of the value of the Equitable Life schemes. A report commissioned by the previous Government suggested that policyholders lost up to £4.8 billion in this debacle and proposed that they should receive a package of about £400 million. However, there is no guarantee of that figure, which has been bandied about by many. They are not new figures, and I am sure that some here could repeat them in their sleep, especially the Financial Secretary to the Treasury, who has been reminded of them several times in letters from constituents of mine, forwarded through my office, yet they bear repetition so that all here will be under no illusion about the situation.
I remind hon. Members that this is not merely a number-crunching game that we are playing; we are playing with the quality of people’s lives, and it is essential that the Bill be subject to any decision reached. In July, the Financial Secretary said in the House:
“Consistent with the ombudsman's recommendation, Sir John has advised that relative loss for an individual policyholder should be capped at the absolute loss they suffered.”—[Official Report, 22 July 2010; Vol. 514, c. 577.]
Yet I remind the Financial Secretary that when he was a shadow Treasury Minister he wanted to ensure compensation for injustice. I ask that this be done and that we compensate for the injustice that all those people have suffered over years of unnecessary struggle.
I agree wholeheartedly with Chris Wiscarson, chief executive of Equitable Life, when he said:
“Let’s not make Equitable policyholders victims three times over. First, at the hands of the regulators, as so clearly articulated by the parliamentary ombudsman”—
as colleague have indicated—
“second, at the hands of the Labour government who failed to bring closure over a decade; and now third, compensation that will be decimated if Sir John Chadwick's advice, meant for the Labour government and slated by the ombudsman, is used.”
I am aware of the financial position. We all know that we have to make hard decisions over the next few years about how the money will be spent. We are not running away from that. Indeed, I am fighting against reductions in grants that mean that Northern Ireland Housing Executive constituents are living with damp in their homes; that worthy disability living allowance recipients are being stripped of their support; and that roads are ruining cars because there is no money to fix them. I see all of that, and everybody else sees it, but I accept that we must take into account the fact that the money is unavailable. However, to compensate Equitable Life members with 10% of their investments is scandalous and can never be acceptable.
Today, it is my desire, and that of many in the House, that reasonableness be made the basis of any decision.
I wonder whether the hon. Gentleman is in the same position as I am. I have a family of constituents—two generations—affected by this problem, and the desperation of those who write to, e-mail and meet me in my constituency is phenomenal. Has he found that in his constituency too?
Yes, it is replicated, right across the United Kingdom, for families, individuals and others. Indeed, there is sometimes a whole string of people affected, including people with different jobs. It does not matter what their jobs are: they can be fishermen owning their own boats or bin men collecting bins and getting rid of the rubbish. Those are the ups and downs—the highs to the lows, and everywhere in between—so the hon. Lady is absolutely right: everyone is affected.
What really worries me is that those who are affected have reached the golden age of retirement, when their mortgage has been paid off and when they know that they do not need to work any more or slog their guts out—if I can use that terminology in this House—but have time to enjoy the finer things, such as laughter and joy with their families. The terrible, horrendous situation in which they find themselves has stripped too many of our pensioners of their joy and placed on their shoulders both financial worry and a burden that should be long behind them. Today is the day for us to shoulder some of that load and burden, and to help them along life’s road. That is our purpose as MPs in this House. Today is the day for us to step up to the mark and reset the balance for those who have waited for help for some 10 years. Today is the day for action. Let it be the right action.
I finish with a quotation from a letter from one of the many people who wrote to me:
“I, like many others, in fairness expect and deserve compensation, as recommended by the Parliamentary Ombudsman and promised by the coalition Government, and not a figure based on the Chadwick advice, which the ombudsman himself described as an unsafe and unsound basis on which to proceed”.
With that in mind, I would urge hon. Members to support the legislative change and the amendments that will arise from it. In my book, Mr Deputy Speaker, that is worth fighting for.
(13 years, 11 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
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It would seem that the left hand of HMRC does not know of the information held in the right hand. What assurance can the Minister give to members of the public that such information can be better co-ordinated to ensure that such mistakes do not happen again?
The hon. Gentleman makes a good point. To be fair, the NPS system brings the information together, but unfortunately, that has highlighted more difficult cases. In fact, as we move forward with the NPS system and—potentially—further reforms, HMRC should have more accurate information and so be able accurately to assess the level of tax due.
(14 years, 2 months ago)
Commons ChamberThank you for calling me, Mr Deputy Speaker. May I, too, congratulate you on being elevated to the position of Deputy Speaker?
Before I came to the House today, I thought about what was I going to say, and I was mindful of that saying, “Whenever the clouds are on the horizon, you can either shelter from the storm or run with the wind.” I am conscious that this Government are doing more sheltering from the storm. The question for us, as elected representatives at Westminster, and for our constituents is: is there somewhere to shelter? That is what I shall comment on, but I am also conscious of the comments that I make. I always try to make constructive comments, because that is my nature, but I shall also underline some concerns that I, as an elected representative and MP, believe I am duty bound to mention.
In Northern Ireland, and in Strangford, which I represent, there is a very clear tightening of the belt. The marks are already there, and I just wonder how tight the belt will be by the time the Budget is eventually farmed out to all parts of the United Kingdom and all Departments. We in Northern Ireland are mindful of that in relation to the block budget.
I am very conscious also of the serious economic state that we are in. I am not ignoring it, and neither are the people of the United Kingdom. We all recognise that drastic measures need to be taken, but I have to ask: are they being taken in the right place and taken correctly, and will they adversely affect my constituents and, indeed, those of many other hon. Members who have spoken today? I recognise the need for health and perhaps international development to be ring-fenced, and that the Budget will not necessarily affect those areas. There is some talk about education, or at least some parts of it, remaining untouched as well, but in that case there will have to be cuts in other Departments.
I recognise that this House is very supportive and proud of the armed services as they fight in Afghanistan, Iraq and all over the world. Is a 25% cut in defence fair? The Prime Minister has given a commitment to the soldiers on the front line, wherever the war is taking place. However, if there is to be a 25% cut in defence, someone has to feel the pinch and the pain, and if it is not the soldiers on the front line—and it should not be—it has to be those at home. I am pleased that the cut will not affect the front line, but concerned about how it will affect other areas. Will it mean that commanders are pensioned off? Will it affect the MOD in buying equipment? The MOD will look for the best prices, as it probably should, but we do not want spending to be diminished in such a way that its position is undermined.
The cadet forces make a significant contribution across the whole United Kingdom, but particularly in Northern Ireland. It is very important for us in Northern Ireland to have cadet forces that bring the communities together. We have tried to achieve that for years, and we are now seeing the partnership begin to work better than it ever has before. Cadet forces, by their very nature, are drawn from both communities. There are more people from the Roman Catholic side of the community in the cadet forces in Londonderry, which the hon. Member for Foyle (Mark Durkan) represents, as well as in Limavady, Enniskillen and Strabane. That has come about because joining the cadet forces has been attractive to young boys and girls, who recognise that some day they will want to serve in the British Army and the other services, including the Royal Air Force.
I want to highlight lone parents. I welcome the fact that the Government want to encourage them back to work; I think we all want to do that. However, when they have the opportunity to do so, we want them to have the jobs to go to. It is great to have this support in theory, but how does it come about in reality? Do the people have jobs, and are there opportunities and options? I am not sure that there are. I am concerned about the Government’s position.
The hon. Gentleman makes an important point. Does he accept that many of us represent constituencies with large numbers of single parents who are doing valiant work as parents, and that for them the problem is not a lack of work ethic but a lack of work?
I thank the hon. Gentleman for his intervention; I wholeheartedly agree with his comments. It is all very well to have the theory of getting lone parents back to work, but if the jobs are not there, that theory is undermined. The Government must consider that.
In Northern Ireland, some 60% of jobs are in the public sector or public sector-dependent. I said this in my maiden speech a fortnight or so ago, but I will say it again because it is very important. I understand that the Government’s pledge is to increase private sector jobs and build up that area. However, before anything changes in the public sector, there has to be a private sector that fills the gap, so that those opportunities are there.
I turn to the 2.5% rise in VAT. In the area that I represent, there are a great many small and medium-sized businesses, which by their very nature create a lot of jobs collectively. Individually, that may amount to three, four or five jobs in a family business, but collectively they run into many hundreds, probably thousands. Although the rise is not going to kick in until January 2011, it causes great concern for the area that I represent, and specifically for businesses. Some small businesses may be hanging on by the skin of their teeth, and finding it very hard to get through difficult times, while looking ahead to perhaps another two, three or four years of austerity and the associated difficulties. Many businesses will try to absorb the VAT increase rather than pass on the extra prices, which they cannot do—not because they do not want to, but because they cannot do it in the competitive market that they are in. They have to try to take on large multinational businesses that have a bigger market and can therefore absorb such costs.
Does my hon. Friend agree that one of the biggest hindrances for small businesses across the whole United Kingdom, including Northern Ireland, is the level of bureaucracy and red tape that they have to handle, as they are very much hands-on operations? The new coalition Government have promised to remove that, and we need to see the evidence very quickly.
I thank my hon. Friend. I wholeheartedly agree, and I can give examples. I represent a very rural constituency. A questionnaire was recently put out to the farming community asking people about the biggest problem they had. They said that it was red tape and bureaucracy. The same applies to those in the fishing industry and those who have small businesses. It seems to be coming at them left, right and centre. Europe has an influence as well. That issue must be addressed very soon.
Let me turn to the position of pensioners. As representatives, we have an opportunity to really feel for people and to see issues they face. My area, like many others, boasts an increasing population of elderly people, and will have its greatest ever number of pensioners in coming years. I am very conscious of how pensioners budget, and how they will cope with a VAT increase on the products that they buy just to keep living. That is extra money that they have to find. Has consideration been given to how the increase will affect pensioners specifically?
There has to be good news in everything, like the curate’s egg that is good in parts. It is hard to find enough good parts in this curate’s egg, but that is by the way. The fact that the income tax threshold has been raised by £1,000 is good news—I give credit where credit is due. It will benefit some households to the tune of £175, at least, and perhaps more elsewhere.
At the same time, however, there is a negative factor: child benefit will not rise for three years in line with inflation. People will say, “Well, that’s how things are, and that’s how it has to happen.” As someone who keeps his ear close to the ground and understands how these things work—I was not born with a silver spoon in my mouth, and I know how difficult it is for people to make do—I understand that the child tax credit and the working tax credit are critical. Many people visit my office and advice centre, just as they visit many other Members, and I can see what is involved in balancing the books and working out the weekly family budget. These people do not live beyond their means by any standard, but they require tax credits just to survive.
My provincial press today—I bought the papers this morning—gave five or six examples of people who will be affected. They included families with four children, single parents with two children, and some who are self-employed. Those people recognise the need for something to be done, but they do not feel particularly in tune with its impact on them. That concerns me, and I have to put it on the record. None of those half a dozen examples in the provincial press or the Belfast Telegraph involved people who would not feel pain over the coming period.
The Government encouraged people to take up tax credits, and they enjoyed a certain quality of life as a result. All of a sudden, that could change. I should like to say something about those in the middle class bracket. When someone is on £35,000 to £40,000 a year, we sometimes think they are doing all right, but half that income might go on their mortgage, and people’s hopes for their children and communities are in their houses. I am concerned about the impact on such families of reducing or freezing working tax credits or child tax credits over a three-year period.
The one great commodity over which international wars have been fought—there will probably be many more of them—is oil. The price of oil today is $77.55 a barrel, and prices for oil, diesel and petrol were at their highest three years ago, when a barrel cost $147. Who makes the extra money and extra profit, and how? Clearly, someone is making it. The hon. Member for Caithness, Sutherland and Easter Ross (John Thurso) referred to the concessionary fuel scheme in his area. I represent a rural area, so I would be keen to know how that works. Perhaps the Government should consider reducing fuel duty to enable people to get over the hard times much more easily than in the past. Elderly people struggle to fill their tanks with oil.
For the fishing industry at Portavogie, which is an important part of Strangford, fuel costs represent 60% of the boats’ running costs. A great many of those fishermen are having difficulty getting through the times they face at this moment. There is some talk about European funding, but there have been delays. The hardships that the fishing industry faces are critical, and it may not survive.
I welcome the Government’s commitment to reduce corporation tax from 28% to 24%, which is significant. Last week, I met bank officials in my town, and they outlined the measures they would like. By and large, the Government have reflected what the banks wanted. However, what the banks want is not always best, as we have seen over the past year or two. The reduction in corporation tax is good news. The Government have realised that businesses need that help. The Chancellor stated that that is the lowest rate in any major western economy and the best rate in the G20, but the Republic of Ireland’s corporation tax is 12%. As Northern Ireland has a land border with the Republic, I suggest that corporation tax should be looked at more sympathetically for us than elsewhere.
Businesses are very conscious of corporation tax. I have met a number of business people in my area recently. Pritchitt Foods in Newtownards is one of the largest employers in the area, and corporation tax is the biggest factor for that company in trying to make its business work. It is a go-ahead, progressive firm that creates significant employment in my area. It feels that the 4% reduction will go part of the way to addressing its concerns. I have asked the Government about this matter, and I understand that they will be making a statement in October about corporation tax in Northern Ireland. I look forward to seeing whether we can have a further reduction, which would help us. We also have the largest energy costs in the whole United Kingdom. I suggest that that also needs to be offset and considered.
I could not let this occasion pass without commenting on child poverty. Wearing my other hat as an Assembly Member in Northern Ireland, I had the opportunity to contribute to an inquiry on the underlying issues. Some 20% of children in Northern Ireland are deprived through poverty. What will happen to those who find themselves in child poverty over the next couple of years? There is some £80 per household for children in Northern Ireland, as against £600 in other parts of the United Kingdom, so child poverty will be much more important to us.
The next days and months will tell us clearly what impact the Budget will have. I am concerned that the welfare savings of £11 billion will devastate the poor. Will the Chancellor look seriously at that?
I think that England and Slovenia have been playing for 15 minutes—I do not know what the score is—and am mindful that some Members will wish to see what is happening, but I want to make one last point, on disability living allowance. When I read of the DLA changes, I was exasperated and deeply concerned, because I felt that they were a direct attack on those who can least face up to such an attack. There are some delays in relation to how the system will be run. Many of the cases that I have fought as an elected representative have been on behalf of those who need DLA—those who have mobility problems, who are getting over cancer operations or who have immobilising diseases. Such cases have involved those with heart problems, and many involve people who have extensive care needs.
Why target a section of the community who basically need that money more than anything else? Do the Government see savings? They may see savings, but I see the people and their needs, as a great many other hon. Members do. I ask the Government to reconsider, and to look carefully at whether they should pursue savings from those who receive DLA. Doing so will impact on a group of people who can least respond and deal with the financial implications. People who are on DLA focus on their health and how to get through the day, as do the people who care for them. If the Government add to that a financial burden by making it hard for them to receive their benefits, their health will be affected. I am not in the business of doing that, and I hope the Government are not.
I rest my case on that point, and I hope that my comments will be taken on board. The Budget delivers some things for us. I am not being critical of all of it, but I am critical of some measures. I ask the Government to take those matters on board. I hope that they will have some better ideas on DLA. We all have to work with the Budget—we cannot do so individually—but the Government need to take on board the needs of those who are less able to face the financial burdens that will come upon them.
(14 years, 2 months ago)
Commons ChamberThank you, Mr. Speaker, for calling me to make my maiden speech. I thank hon. Members for their speeches beforehand—including the hon. Member for High Peak (Andrew Bingham). We look forward to visiting High Peak as a holiday destination. If we go to all the places that hon. Members have spoken about in the House, we will not have to go abroad this year to get the sun. I thank the right hon. Member for Oldham West and Royton (Mr Meacher) for his comments on the social politics. There are many bread and butter issues there to interest us. I thank the hon. Member for Loughborough (Nicky Morgan). We have something in common. I am a Leicester City football supporter and have been for umpteen years. I do not know whether that is a good or a bad thing, but it shows how loyal I am anyway.
One of the things that I wished to speak about in the Chamber was my Ulster Scots. I did get permission to do this, so I hope hon. Members will bear with me.
Thaur is monies a guid thang at A cud sae aboot tha fowk o mi Baille-Wick bot yince an firmaist A coont it a muckle oaner tae spake oot oan thair ahauf in tha Hoose O Commons. Tha Strengfird fowk ir tha satt o tha grun, an in thenkin thaim fer thair support A wud promis thaim at A’ll wrocht an dae fer thaim aa at A caun.
For those who did not understand me, and there may be some here who did not, I will translate that for them. There are many good things that I could say about the people of my constituency, and first of all is that it is a great honour to speak on their behalf in the House of Commons. The Strangford people are the salt of the earth and in thanking them for their support, I also assure them that I shall work and do for them the best I can.
A hard-working MP is nothing new to the people of Strangford. My predecessor, Iris Robinson, was known for years as a conscientious worker. John Taylor was the MP for many years before that, and I had my first meeting with him and his wife Mary in the House of Commons some 20-odd years ago. Before that we had Jim Kilfedder, who represented the area of Strangford within North Down. We have been blessed over the years to have a number of good MPs. I can remember placing my X for the first time ever next to Jim Kilfedder’s name many years ago.
Those former MPs all had one thing in common—a love for Strangford and its people. I represent a new constituency of Strangford as the boundaries have changed. Whether it be from Portaferry to Carrowdoor, from Comber to Crossgar, Ballynahinch to Ballywalter, Newtonards to Grey Abbey, I would urge any of those in the Chamber to see the unparalleled beauties of my constituency and I defy them not to fall in love with it, as I have.
Today’s debate focuses on the economy and on work and pensions, and I wish to outline a number of opportunities to build the economy of Strangford and the whole of the United Kingdom in areas such as tourism, manufacturing and agriculture. Since 2008, unemployment in Northern Ireland has risen by 18,000 and too many able-bodied people are out of work. I urge the Government to do something about that. The solution requires a cross-sectoral and cross-Government approach.
Tourism offers a first clear opportunity. It is my belief that Northern Ireland will be able to carve out a niche in the global scene in tourism. The Lonely Planet tour guide praised Northern Ireland as
“abuzz with life: the cities are pulsating . . . and the people”—
the people are very important—
“the lifeblood that courses through the country, are in good spirits”.
Ulster, and Strangford in particular, has the unique combination of a beautiful landscape and coastline, a land steeped in history and a welcoming and diverse people who cannot help but draw others to our shores. Yet it seems that the only people who are fully aware of all that Strangford has to offer are those who are blessed enough to have been born there or passed through it. This is a loss not only to the people of my constituency, but to the people of the United Kingdom. I am in the business of changing that impression.
If Strangford was marketed to its full potential it could deliver significant benefit to local and visitor alike. For the cyclist, the walker and the nature lover, there is abundant bird and wildlife along the coast and lough shores. Short-break visitors can shop, be pampered and enjoy our excellent restaurants and entertainment. Strangford is the perfect base for those who wish to explore towns, the countryside, the coast or all of them together.
One sector which clearly demonstrates this is country sports. The game fair at Ballywalter attracts a record number of people, and this is an area in which Strangford has the potential to excel. For example, five American shooters came to the constituency on a five-day trip to Northern Ireland. They spent some £50,000 in the local economy—high-value tourism. I understand that country sports in Northern Ireland employ some 3,000 people. Again, there is opportunity. When I was elected, the people of my constituency were glad to have me in the House of Commons to work for them. It is also rumoured that the pheasants and the ducks of Strangford were looking forward to at least two free days a week when I would not be about. That is probably good news as well.
Northern Ireland’s private sector is underdeveloped but at its core is the manufacturing sector. It contributes around 25% of the gross value added to the Northern Ireland economy. Therefore, the Government’s recent commitments to bolster regional economies and manufacturing are of deep interest. However, the lack of detail is concerning, especially in comparison with their clearer plans to cut public expenditure. I want to put my concern about that on record.
The urban and rural mix of my constituency also means that the farming and agri-food sectors are a key component, possibly more so than in other parts of the United Kingdom. I am well aware of the push that there has been to encourage local Northern Ireland businesses to compete on the global stage. We have various international exporters in the constituency. I want to plug the humble Comber potato and the Portavogie prawn, because they are world leaders. Many people enjoy them as delicacies.
The family farm is important to us in the constituency. There are those who have diversified into the ice cream business or adapted unused barns and land for quad bikes and crazy golf, all of which are advertised in our local paper, the Newtownards Chronicle. Commercial fishing is also important, a once proud industry. Fishing boat numbers have been halved, due to EU regulation and scientific information. The common fisheries policy needs to be right for the people of my area. It needs to restore confidence and give people viability and jobs. I hope the Government will work towards that.
In conclusion, Winston Churchill is one of my heroes and always has been. He had a good grasp of the English language, and he was a good historian and also a good soldier. He said:
“This is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.”
I stand in this place humbled and honoured at the fact that the voters of Strangford have elevated me from the Northern Ireland Assembly to the House of Commons. The Assembly was my beginning, but my election to the House is certainly not the end of the matter. That quote from Winston Churchill reminds me of another of his. I have made it to the end of my maiden speech with no heckling from Irish Nationalists or anyone else, something that I am exceedingly grateful for. I hope this will be the first of many speeches in the House.