Local Government Finance
Debate between John Hemming and Baroness Primarolo(10 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
John Hemming (Birmingham, Yardley) (LD)
I thank the Minister for meeting MPs from Birmingham to look at this issue, and I congratulate hon. Members generally on highlighting the difficulty of working out what a fair system is for allocating local government finance. The Government have focused on percentage reductions in spending power. Does the Minister agree that, after incentives, looking towards the reduction in percentage spending power, not absolute spending power, provides an equality of pain that gives us a way forward? It takes into account the fact that in areas like Greater Birmingham, where people work in Birmingham but live around it and require services from Birmingham but are not contributing towards—
Madam Deputy Speaker (Dawn Primarolo)
Order. Before the Minister replies, may I remind the House that 17 Members wish to participate in this debate? Interventions must be short, and I will start to interrupt them if they continue to be as long as they have been so far.
Immigration Bill
Debate between John Hemming and Baroness Primarolo(11 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Madam Deputy Speaker (Dawn Primarolo)
Order. Mr Hemming, sit down. This is not a personal discussion between you and Pamela Nash of the points you might want to make later. May we have a bit of order? Pamela Nash, you have the Floor. If you give way to John Hemming, could you indicate accordingly, so that I can call him?
Financial Services Bill
Debate between John Hemming and Baroness Primarolo(12 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
John Hemming (Birmingham, Yardley) (LD)
Let me begin by referring Members to my entry in the Register of Members’ Financial Interests. I think that I should declare registrable holdings in RBS and Lloyds as regulated entities. I have just checked my entry in the register, and note that I have a declarable interest in Highway Capital. It is a stock exchange rather than a parliamentary interest, but I think that it should be declared because it is relevant to the debate. I also founded, and still chair, John Hemming and Company LLP, which supplies software to the financial services sector. Although it is not itself regulated by the FSA, it trades with FSA-regulated entities, so I think that interest should be declared as well.
My hon. Friend the Member for Solihull (Lorely Burt) sadly cannot be here today, although she attended 16 of the Committee’s sittings. She has, however, passed me certain comments that she has received from interested parties, which she wishes me to raise with the Minister.
Payday lending has been a substantial issue throughout the debate. My personal view is that it is not a good thing, because it traps people in many circumstances. The question of what is the best way of dealing with it is a complex one, and I think that the Government are entirely right to ask the University of Bristol to investigate it. However, I have spoken to companies in my constituency and have said that I do not think that it is a very good thing.
In Committee, my hon. Friend the Member for Solihull said that the Bill should explicitly encourage the Financial Conduct Authority to seek to maintain and extend consumers’ access to financial services that meet their needs, and that when making regulatory decisions, it should assess their impact on markets and consumers. It should place value on policy proposals and regulations that increase access to savings, protections and other financial products, and also on financial advice. In the absence of such a requirement, there would be a risk of the FCA always being steered towards a risk-averse regulation. Markets might be restricted to large groups of consumers to avoid any consumer getting sub-optimal products.
The Government seek to encourage the development of simple financial products. If we are to succeed, we must have a regulator working with the grain of the policy rather than acting as an obstacle to it, as appeared at times to be the case with the last Government’s stakeholder products initiative. Does the Minister agree that the FCA now has the “teeth” to engage with the industry and engage in issues such as the maximum number of rollovers that a payday lender should be permitted to allow? Could the FCA set a threshold for market entry? Could it impose on companies real penalties that hurt, rather than the £50,000 limit imposed on the Office of Fair Trading, and make lenders pay compensation to consumers who have suffered detriment?
Let me now turn to the reflections of industry practitioners. The smallest businesses are keen to ensure that the cost of the regulation to them is not disproportionate. Forty per cent. of credit licence holders are sole traders. What cost-benefit analysis has been carried out for the smallest practitioners?
What about the implementation time? The Finance and Leasing Association has observed that the less far-reaching Consumer Credit Act took four years to implement. It estimates that implementation of this legislation would take between five and seven years. I am sure that the Government will work with all the professional bodies in devising a sensible implementation plan, but I should be grateful for any reassurance the Minister can give.
The Association of Independent Financial Advisers is fearful about the lack of a limit on time for complaints, which it says will place a burden on provisions that it will need to make to cover this open-ended provision—
Madam Deputy Speaker (Dawn Primarolo)
Order. The hon. Gentleman is speaking quite quickly, but I am trying to follow what he is saying. Will he explain how it is relevant to the amendments that we are discussing?
Madam Deputy Speaker
In that case, it is out of order. Perhaps we should move on, unless the hon. Gentleman is going to speak in order.
Madam Deputy Speaker
Order. I should like the hon. Gentleman to do it now. Otherwise I am going to sit him down straight away, given that he knows that he was out of order. Presumably that is why he was speaking so fast. I ask him to speak directly about the amendments.
John Hemming
The Opposition have raised interesting questions about the issues of shareholder activism and the interrelationship between shareholder activists and companies, and I would be interested to hear what the Government have to say in response.
Financial Services Bill
Debate between John Hemming and Baroness Primarolo(12 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Madam Deputy Speaker (Dawn Primarolo)
Order. Before I call the next speaker, we moved rather swiftly on from a recent intervention and I wonder whether, for the sake of clarity and accuracy of the record, the hon. Member for Birmingham, Yardley (John Hemming) might like to make his final point again.
John Hemming
Yes, I wanted to refer the House to my declaration of interests and the fact that I hold certain bank shares, which will obviously be affected by limits on sums that can be claimed per letter.
Judiciary and Fundamental Rights
Debate between John Hemming and Baroness Primarolo(13 years ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
John Hemming (Birmingham, Yardley) (LD)
I aim to be very quick. I found chapter 23 very interesting, as it is the first time that that chapter has been used for the accession of a country. We have perhaps now hit the Groucho Marx threshold for Europe—that we would not be allowed to join the EU because our standards are not high enough to do so. It is somewhat complacent to imply that the standards of our judicial system are always higher than those in Croatia. I spent some time comparing and contrasting the case X v. Croatia and RP and Others v. the United Kingdom. If I have enough time, I will come back to that later.
If we look through the document outlining the EU’s response, we find the following statement:
“The EU underlines the importance of Croatia improving publication of and access to final court decisions both in the interests of the development of case law and consistent judicial practice, and in view of wider public dissemination.”
Well, the UK has a massive problem here. Many judgments are not handed down by the judge—
Madam Deputy Speaker (Dawn Primarolo)
Order. That is not relevant to our debate, which concerns the documents before us about Croatia. I would be grateful if, in the few minutes left to him that will enable the Minister to reply, the hon. Gentleman stuck to this evening’s subject of debate.
John Hemming
I think it important to examine the issues raised by chapter 23, however, and to compare X v. Croatia with RP and Others v. the United Kingdom. In the former case, a mother’s mental capacity was removed from her and she was told that she had no locus in the Croatian courts. She had a second opinion, which was taken through the whole Croatian court system. The domestic court system was involved in exactly the same way in the latter case, but the woman had no second opinion. In my view, the Croatian system is far better.
I highlighted the issue of judgments in the accession document. There is also the question of the anti-corruption commission. The document states:
“The EU also calls on Croatia to ensure full implementation of its system for monitoring and verification of assets declarations of public officials and judges”.
According to the Groucho Marx test, this is now a club that we would not be allowed to join, because we do not operate that sort of system here.
I think it complacent to assume that countries such as Croatia are behind the United Kingdom. The chapter 23 requirements have already pushed Croatia into doing things that we do not do here. The hon. Member for Kettering (Mr Hollobone) may be pleased to find that in future years we might be expelled for not complying with the conditions with which Croatia complies, but I do not take the same view as him on the European Union. I think that extending the EU is a good idea. Most of the people who argue that we should leave it argue that we should be in the European economic area, which allows freedom of movement throughout Europe. I also disagree with the hon. Gentleman about whether people qualify for habitual residency as a consequence of declaring self-employment, because I do not think that such a declaration qualifies people for habitual residency immediately.
I think that we should consider not just Croatia but whether we satisfy the conditions in chapter 23, but given that I cannot cite any examples of how we fail to satisfy those conditions, I will leave that to the Minister.
Superannuation Bill
Debate between John Hemming and Baroness Primarolo(14 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mrs Mary Glindon (North Tyneside) (Lab)
As a former PCS worker and someone who until April this year was earning £15,300—I worked in the Child Support Agency for 18 months—I find some of the things you are saying quite offensive. Every worker has a right to work—surely you do not make decisions about whether a husband or wife, or a partner in the household, has that right.
Furthermore, if the Bill is rejected tonight, proper consultation might be re-entered into. I took industrial action against our former Government. I voted for that action having been consulted by the union and following the procedure that the Government started with us in 2009. I e-mailed the then Minister and went through all that process. What you are saying is contradictory. You are saying that people should be consulted, but only after a decision has been made. Do you not think—
Madam Deputy Speaker (Dawn Primarolo)
Order. Address the Chair, and briefly, please.
John Hemming
I am suggesting that the Government could try to ensure that there are not two redundancies in the same household, whatever circumstances we are in. We all accept that redundancies are going to occur in the public sector, so why cannot we try to minimise the effect on households by ensuring that both partners need not be made redundant?
Similarly, there are opportunities whereby people can transfer to the private sector. Obviously the objective is to help people to find jobs in the private sector. A severance fee, equivalent to voluntary redundancy in some senses, paid when people find a job in the private sector could be a way of reducing costs to the public sector but doing so in a way that does not make public servants suffer. At the end of the day, we should be thinking about the effect on the public servants who work hard for this country. We need to recognise that and work in partnership with them.
There are all sorts of opportunities within my own company. I have had people take sabbaticals in the past. In certain circumstances the employer will say, “We can plan for that person to go away for a year and then come back.” It suits them to do that, it has reduced the cost to the public purse, and it is in the interests of the employee. Possibilities can be considered, in partnership with the work force, that improve the situation so that everybody wins.
As a consequence of the reduction in the national cake—gross domestic product or however one wishes to see it—we face a very difficult situation that has to be dealt with. The Labour party has proposed its own version of a unilateral contract change and we have a different version, but something needs to happen. I will support the Government tonight, because I agree with the exact proposals put forward in the Bill. We need a negotiating position so that the trade unions cannot veto any changes, and I have responded clearly to my constituents by saying that I do not think the trade unions should have a veto on contractual changes. The time has hit 20 minutes past, so I shall finish by saying that I shall support Second Reading.