Connaught Income Fund

Debate between Jim Shannon and Guto Bebb

Tuesday 12th January 2016 Commons Chamber

[Guto Bebb (Aberconwy) (Con)]

Before we get into the detail of the questions I want to ask the Minister, I think it is important for me to provide some context and background on the issue.

The Connaught Income Fund Series 1 was established in April 2008. The aim of the fund was to invest in bridging loans, primarily through a company called Tiuta International Ltd. Regulatory demands resulted in the fund being operated by a Financial Services Authority-regulated firm. In the case of Connaught the initial operator was Capita Financial Managers Ltd.

Capita issued the first investment memorandum as the fund’s promoter under section 21 of the Financial Services and Markets Act 2000 in April 2008. In September 2009 Capita Financial Managers resigned and the role of the operator was transferred to Blue Gate Capital management. At the time this decision was taken, a meeting between representatives of Capita Financial Managers and Capita plc was held. Minutes of this meeting, which are in the public domain, confirm that Capita was, at the very least, concerned about Tiuta’s financial viability and was aware of the false representations promoted to investors within the information memorandum. However, despite this level of knowledge and concern about the viability of Tiuta and the improper use of moneys invested in the fund, Capita, upon transferring the operator status to Blue Gate Capital management, did not inform existing investors of its concerns. That is despite the fact that Capita did write to existing investors informing them of the change of operator.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on securing this debate, and the number of Members who are present is an indication of the interest in this issue. Does he agree that the Financial Conduct Authority should publish the issues that resulted in it withdrawing from negotiations with Connaught and other parties so that, importantly, those who lost out in the collapse of this fund can know who they have cause to claim against and to blame?

[Guto Bebb]

The hon. Gentleman makes an important point that I will come on to. Indeed, the need for information as to why that decision was taken is something I will be asking the Minister to comment on.

Royal Bank of Scotland

Debate between Jim Shannon and Guto Bebb

Thursday 5th November 2015 Commons Chamber

[Guto Bebb]

I would certainly say there is a need to look in detail at the way RBS is performing. There are questions still to be asked about the corporate culture within RBS and questions raised by the Banking Commission need to be looked at.

It is important to state that this is not a left-right political argument. There are think-tanks on the right that think we should look again at the UK banking model. There was strong agreement when my hon. Friend the Member for Wycombe (Mr Baker) stated that the loss of the mutual in the 90s was a mistake for the financial structure of the UK. This is not a left-right argument; it is about trying to get things right and ensuring that, as a result of intervention in the market that we did not want to make, we deliver a better banking system. It is important to state that the reason for intervention in the market was much wider than making a profit for the taxpayer: it was to ensure the UK economy was protected at a very difficult time.

[Jim Shannon (Strangford) (DUP)]

I have been listening to the debate in my office. One thing that has not been mentioned yet is the position of Ulster Bank customers. The first time the computer glitch happened, the Democratic Unionist party went to meet the chief executive officer of the bank. For a number of days, people had no access to money. That has happened not once, but at least three or four times. Ulster Bank customers had no access to their bank or credit cards for days and sometimes whole weekends—no money. Does the hon. Gentleman not feel that the banks need to sort out their systems? Let us make sure they have a system that works and that customers have the quality service they deserve.

[Guto Bebb]

I am absolutely aware of the problems with Ulster Bank—not only computer glitches but undoubtedly questionable past behaviour—and I associate myself with the hon. Gentleman’s comments.

When hon. Members talk about the need to sell RBS shares at a profit, it is important to bear in mind the context. The intervention was not just to make a profit; it was an intervention to ensure that we protected the UK economy. It gave people confidence in the financial system.

We need to address some of the concerns specific to RBS from a small business perspective. I speak as the former chair of the all-party group on the mis-selling of interest rate derivatives, which now has the much snappier name of the all-party group on small business banking. I would be delighted if I never had to speak about RBS again in my entire life. I would delighted if I did not have to talk about the mis-selling of financial products for small businesses ever again. Yet again, as I mentioned earlier, I was with the FCA for three hours. I spent four hours in a redress meeting between a small business and RBS, and I have had various meetings with RBS staff in relation to some of the articles that have appeared in the press during the week. There are still issues that need to be resolved. The Treasury needs to have confidence that when it talks about moving RBS back into the private sector, it does so with a full grasp of the problems that RBS still faces.

One concern is that the excellent Treasury Committee report into small business banking and finance for small businesses has not, as yet, received a response from the Treasury. I asked a question about this, but as yet no response has been forthcoming. The report makes very critical comments about RBS, among others, and the potential liabilities still faced by RBS, among others. I am therefore at a loss as to why the decision has been taken to return RBS to private hands when the Treasury has not even responded to the concerns raised by the Treasury Committee. I would like to see that issue at rest.

Regional Pay (NHS)

Debate between Jim Shannon and Guto Bebb

Wednesday 7th November 2012 Commons Chamber

[Guto Bebb (Aberconwy) (Con)]

It is a pleasure to follow the hon. Member for Hartlepool (Mr Wright), although I am concerned about his claim that regional pay is being introduced by the back door. The Government have made no change to the legislation, so I suspect that the change taking place is a result of policies and Bills passed by the previous Administration.

I speak in this debate as a Welsh MP—perhaps my red plaster cast gives that away, although I stress that I have it because the plaster technician at my local hospital wanted to give a Conservative MP a red cast in which to go to the House of Commons and make an impression.

I must take issue with the right hon. Member for Leigh (Andy Burnham), who stated that he was responsible for the national health service in England. I accept that devolution has changed and complicated the situation, but when my constituents in north Wales think of the national health service, they do not think about what happens in Wales and what happens in England, because that is not how it works. The health service in north Wales is regularly dependent on specialist services offered in north-west England, and when we think of the health service, we think of it as one body.

There is no doubt, however, that the differences between what is happening in England and in Wales should be taken into account. It is all well and good to carp that figures suggest that spending on the health service in England is more or less flat in real terms—that was the claim made by the right hon. Member for Leigh—but that should be contrasted with actual and significant cash cuts to the health service in Wales that are being implemented by the Labour Administration as a choice. Those cash cuts would have been implemented in England too if the right hon. Gentleman and his party had won the last election.

When trying to ensure best value for money within the NHS, it is crucial to take into account that the health service in England is facing real challenges while maintaining a position that takes inflation into account. In Wales, however, the hospital staff who serve me, my family and my constituents are facing significant cuts as a result of decisions by the Welsh Assembly Government. That is the context and it is important to make that point.

The hon. Member for South Down (Ms Ritchie) made the important point that public sector workers have recently been facing difficult situations due to a pay freeze and increases in pension contributions. Those two provisions, however, were implemented in an equitable manner throughout the United Kingdom. People may disagree with the changes to pension contributions in the public sector, but there is no doubt that workers in Wales, Northern Ireland and south-east England have been treated in the same way. People might complain about the freezing of public sector pay, but that too has been done in an equitable manner throughout the United Kingdom.

There is real concern in constituencies such as mine that a change to regional pay—which is not being implemented by the coalition Government, merely consulted on—would be inequitable. Somebody in my constituency would be paid at a different rate from someone doing exactly the same job 40 miles down the road in Chester, for example. That is the difference between the pay freezes in the public sector and the pensions changes—those were difficult choices but were implemented in an equitable manner throughout the United Kingdom—and moving forward with regional pay, which would be damaging.

[Jim Shannon (Strangford) (DUP)]

I appreciate this opportunity to make a quick intervention. As the hon. Gentleman rightly said, the four regions of the United Kingdom have parity and equity. Will he explain what will happen when it comes to retrospective payments? In Northern Ireland, a number of retrospective payments have had to be made. Are the same retrospective payments applicable in Wales as in Northern Ireland, for those who have been upgraded and should therefore get more money?

[Guto Bebb]

I am not sure whether I am qualified to answer that question in detail, but perhaps the Minister will respond from the Dispatch Box in due course.

The changes in the south-west are taking place under current legislation and without any changes to the law, and we must be careful. We are proud to have a national health service and national public services that we take seriously. Although sacrifices are asked of people in the public sector, it is important that they are requested on the basis of equality throughout the United Kingdom. Ultimately, I am concerned that we are discussing a Labour motion that contradicts a lot of what has happened over the past few years.

I recently took part in a television debate on regional pay in Wales with a Labour Member who said that the changes to HM Courts Service pay rates were not about regional pay but about zonal pay. As it happens, zonal pay in Wales is lower than in other parts of the United Kingdom. I am sure that workers in Wales were cheered that they were subject not to regional pay in that context, but zonal pay, which made it all right.

There is a degree of opportunism from the Opposition Benches in initiating this debate at this time, and there is no recognition that many of the issues that have given rise to concern are a direct result of policy changes that the Labour party implemented when in power. I accept, however, the need to ensure we get the best possible value for money for the taxpayer from public services, and it is important to look at the degree to which we can be flexible in the way we deliver public services, whether in England or Wales. My view is that a person should not be discriminated against in pay if they are doing a similar job in the same manner as someone within 40 miles of them. The Government should take that extremely seriously.

The economic argument for regional pay is difficult to make by a party that claims to believe in the Union. One advantage that a rural, low-pay area such as mine derives from the relationship with the UK is the transfer of money from richer to poorer parts of the country. We could argue for a stronger regional policy and that we need to do more in that respect, but it would be difficult for me, as someone who believes that the Union brings a great deal of benefit, to argue that workers in my part of the world should be given a different degree of support from the state from workers doing exactly the same job in other parts of the country.

I find it difficult to disagree significantly with the motion, but I welcome the Government amendment. The one thing we can say about the coalition Government is that they are willing to throw difficult, controversial matters out into the open—that often creates problems for MPs because we need to sell those policies on the doorstep. I feel comfortable with the amendment. Ultimately, when Members are elected, they have a responsibility to look into issues carefully, to read around them and take on board the evidence. The amendment states:

“there will be no change unless there is strong evidence and a rational case for proceeding”.

I can live with that—it is great deal better than the Labour motion. Labour Members are basically hiding behind a discussion in the coalition. The fact is that the changes are happening as a result of legislation they proposed and voted for, and now regret.

Israel

Debate between Jim Shannon and Guto Bebb

Wednesday 14th December 2011 Westminster Hall

[Guto Bebb]

I am grateful for that intervention; indeed, I suspect I can now throw away two pages of my speech. The Camp David accords of 2000 were a major offer for peace by Israel. I think I am right in saying that if the offer had been accepted, something like 97% of the land in the west bank and Gaza would have been available to create a viable Palestinian state. Indeed, in that regard, the highlight of my visit to Israel and the west bank was my visit to Ramallah, which was not the third-world enclave I had been told to expect, but a vibrant city that was growing and clearly prospering. It was perhaps not growing to the extent it should have been, but it was growing by 10% per annum, and I am sure the Chancellor would be delighted to swap.

The point I raised about the Camp David accords is extremely important, because the offer of 97% of the land in return for peace stalled on Israel’s demand that the Palestinian Authority included in the agreement a statement that the agreement would end the conflict. When the British Government say that Israel has to make a generous offer, we in the UK must be very aware of its demand for an end to the conflict. After 30 years of waste and loss of life in Northern Ireland, we managed to bring all the parties, including the British Government, to the negotiating table, and a key element was the demand that the republican movement in the north of Ireland accepted that there was an end to the war. In terms of creating trust, it is imperative that both parties feel that the negotiation will finish the conflict, and that the option of going back to the conflict is not allowed.

The Camp David accords failed on Israel’s claim that the Palestinian Authority would have to agree that there was an end to conflict, and it is extremely disappointing that that did not happen. In addition, of course, the Israeli Government took the decision to move out of Gaza in 2005. Time and again we are told that the crisis and problems in the middle east—

[Jim Shannon (Strangford) (DUP)]

The hon. Gentleman mentioned the Northern Ireland situation. Clearly, there had to be an understanding from all parties on both sides of the community that violence does not work. Perhaps there was an understanding, after 30 years of campaign and conflict; perhaps people realised that the gun, the bullet and the bomb do not work. That is a key aspect of what is happening. Is there a realisation among the Palestinians—perhaps there is among the Israelis—that that should happen?

[Guto Bebb]

I sincerely hope so. Certainly there is a difference between the Palestinian Authority in the west bank and the attitudes of some organisations who were in control in Gaza. That issue is vital.

Seaside Towns (Regeneration)

Debate between Jim Shannon and Guto Bebb

Wednesday 8th December 2010 Westminster Hall

[Guto Bebb (Aberconwy) (Con)]

It is a pleasure to contribute to this important debate, and I congratulate my hon. Friend the Member for South Thanet (Laura Sandys) on initiating it. I will try to be brief, and I will of course add to the comments made by my hon. Friend the Member for Carmarthen West and South Pembrokeshire (Simon Hart), in that I am bringing Wales to the table today.

I have the privilege of being the Member of Parliament for Aberconwy. That means that I represent the seaside resort of Llandudno, which is recognised in Wales as the queen of Welsh resorts. The experience of Llandudno is very positive, because it has been a success story in many ways during the past few years, but before I focus on Llandudno, it is important to point out that seaside resorts and former seaside resorts have developed in different ways during the past 15 to 20 years. For example, the resort of Llanfairfechan in my constituency, has developed into a dormer village or dormer town. People live there to enjoy what is available there: the scenery, the beach and so on. Tourism can play a part in the further regeneration of Llanfairfechan, but the town has played its own game and decided to serve as a residential community, which is obviously perfectly acceptable.

Penmaenmawr is another resort in my constituency. Believe it or not, Penmaenmawr was the favourite resort of Gladstone, the former Prime Minister. He used to go there every summer to recharge his batteries. Penmaenmawr became an industrial area, dependent on quarrying, but it is now rediscovering tourism as a means of regeneration. The residents of Penmaenmawr, who are very proud of their association with the former Liberal Prime Minister, would be more than delighted to welcome the current Deputy Prime Minister. If things become a bit hot in London during the next few days, he is more than welcome to come to Penmaenmawr, where he can enjoy the seaside and the mountains and contribute to the redevelopment of the tourism sector in that town.

However, the real issue for me today relates to Llandudno, which is a great success, as it has retained its Victorian ambience but has also tried to modernise itself and ensure that it is a seaside resort that works all year round. A previous contributor commented on part-time work and casual work. One of the big challenges in relation to tourism and economic redevelopment is to ensure that the tourism sector can provide year-round employment. Llandudno is keen to ensure that it develops year-round tourism, and it has done that by being proactive about its marketing, ensuring that it draws in the Christmas market and so on. However, it has also worked in partnership with the local authority to ensure that it can offer conference facilities and entertainment. The local authority has worked with the tourism association in Llandudno to develop Venue Cymru, for example, where there are a large theatre and conference facilities. That means that Llandudno attracts tourists all year round, which has the added benefit of allowing businesses servicing those tourists and visitors to employ people and give them proper jobs for 52 weeks of the year, as opposed to the casual employment that they had to depend on in that sector in the past.

Another of Llandudno’s successes results from the fact that it has not seen tourism as something that works in isolation. In addition to being the queen of Welsh resorts, it has been the main shopping centre for north Wales for generations. The investment in retail has continued, and the important thing about that investment is that it is not just about the high street multiples, which are obviously very important to the local market. The wonderful thing about Llandudno is that it also offers independent retailers, who add to the experience for tourists when they come to the town. They have the feeling that they are in an old-fashioned resort. They can see the high street multiples, but they can also go to the back streets and find interesting retailers offering something completely different.

[Jim Shannon (Strangford) (DUP)]

Does the hon. Gentleman agree that a council working with other councils in the region could bring in tourists for everyone? If a push is made to bring tourists to one village on its own, sometimes that does not work, but if a council works with other councils and other tourist destinations, with all their different attractions, everyone can benefit.

[Guto Bebb]

That is a very valuable contribution. Conwy council, which represents Llandudno, works in partnership with other local authorities, especially in relation to marketing the advantages of Snowdonia, for example, so yes, I agree with that point.

We are very fortunate that a large part of the town of Llandudno is under the management of Mostyn Estates. One of the strengths of Llandudno is that it has retained its character, due to the sympathetic management of the town by Mostyn Estates. That management has ensured that, for example, when people hit the prom in Llandudno, it looks extremely impressive. There are controls over the colour of the paint that can be put on hotels and there are controls in terms of not allowing buildings to be turned into houses in multiple occupation. That has kept the character of the town and has contributed to Llandudno’s success.

I shall finish with these questions and points for my hon. Friend the Minister, because I am aware that time is pressing. The Llandudno Hospitality Association has a number of concerns, including one that was touched on by my hon. Friend the Member for Carmarthen West and South Pembrokeshire. I am referring to VAT on hotel rates. One of Llandudno’s successes is that it has turned its attention to offering a broad range of accommodation, from bed and breakfasts to high-class boutique hotels. However, there is a concern that we face a VAT rate of 20% on hotel accommodation, compared with much lower rates in the rest of Europe.

It is worth mentioning that 3.1 million people live in seaside resorts in the UK. That is more than the population of Wales. Wales has a Secretary of State and a Welsh Assembly fighting its corner. Is the voice of seaside resorts heard across Government? I am sure that the coalition Government will ensure that that is the case, but I would like reassurance on that point.

Tourism should not be seen as a Cinderella sector in economic development. Local enterprise partnerships in England offer the opportunity to ensure that tourism development is part of those strategies. I hope that the LEP process in England learns the lesson from Wales. I am very disappointed, because the Welsh Assembly recently announced that it was targeting six specific sectors of the Welsh economy for growth and, for some bizarre reason, tourism was not included. I hope that the Minister will have more success in selling the importance of tourism as an economic development tool than his colleague did in the Welsh Assembly.