Transport for London Bill [Lords]

Debate between John McDonnell and George Galloway

Monday 16th March 2015 Commons Chamber

[John McDonnell]

I absolutely concur, and I do not need to labour the point. All I can say to the hon. Member for Harrow East, with whom we have worked over the years on a range of issues in the interests of London, is that if this Bill goes through without my new clause 1 and the subsequent set of amendments, it will make the PPP look like an accounting blip. The Bill is extremely dangerous.

In addition to the financial risks involved in what some have described as a speculator’s charter, we face another potential loss. The mortgaging and development of sites could, in some cases, result in a loss of assets, particularly the land sites essential or invaluable to the future development of the improvement of London’s transport network and services.

[George Galloway (Bradford West) (Respect)]

I am not a London Member, but I am a London resident and have been for 35 years, and I am listening with mounting horror to the narrative being developed by the hon. Gentleman. I was one of those who opposed the disaster that almost sank—I hope hon. Members forgive the pun—the London underground last time out. What I am asking myself as I listen to him is: where are all the other London Members of Parliament? Why is this Chamber almost deserted, on both sides?

[John McDonnell]

It is because people have not woken up to the consequences of this Bill yet. Unless someone has gone through the experience that my hon. Friend the Member for Hammersmith (Mr Slaughter) has in Earls Court and seen the consequences, people do not fully understand this. The Bill is short—

[John McDonnell]

People cannot help but introduce a bit of knockabout in all of this. I have not intervened in the mayoral election yet; I have not made any comment about any candidate so far—

[George Galloway]

I have not intervened in the London mayoralty yet either, but I keep reading of the very Members the Minister has just adumbrated. Is it a coincidence that absolutely none of them is here?

[John McDonnell]

Let me abide by parliamentary convention, Madam Deputy Speaker. I understand the point being made, but if someone is to be referred to in the House, it is best to inform them in advance. Let us abide by that convention tonight. I wish to make it very clear that I am not intervening in the mayoral elections, full stop, other than to pass a few comments on issues such as the one before us.

Let me get back to the amendments and the new clause. I want to emphasise not just the financial risk but the potential loss of sites for the use of our future transport system. That is one of the main points made in the RMT’s representation to the Opposed Private Bill Committee.

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[John McDonnell]

I urge Members to obtain a copy of Transport for London’s annual report and statement of accounts, to look at them and some of the documents linked to them and to identify in them a list of TfL’s assets. I have tried it. When some of the assets have been identified, we need to link the individual assets to the Mayor of London’s strategy and plan, going down from the macro policy to the micro level, to find out what will happen to a site in our constituency, but that is impossible. That is why I tabled the new clause. We just need openness and transparency.

[George Galloway]

Back in 1967—better days in many respects—in the era of Slater Walker and the rest, was not this kind of thing called asset stripping? Is the Bill not just an asset-strippers charter?

[John McDonnell]

That is a valid point, but I do not want in any way to insinuate anything about the intentions of the Mayor of London, TfL and so on. Our fear is about the unintended consequences. The fear that I and some others expressed on Second Reading concerned the inability in some instances—this might have happened with Earls Court—of Transport for London officers and those directing them to negotiate effectively with people who are ruthless in the development of sites and the maximisation of their profits from those sites. That brings me back to new clause 1.

I want Transport for London to be completely open and transparent and publish a list of the properties and assets it holds and that its subsidiaries hold which it considers eligible for future development, banding them by value so that we can assess the individual values of the properties and the potential borrowing against them. The new clause requires TfL to undertake this exercise every year, because the intentions of TfL and the Mayor will change. It is therefore important that the asset list is updated as well as the list of plans associated with those assets.

Each year, the new clause will insist that Transport for London must inform Londoners of the non-operational assets it holds as well as those that are under consideration for development in which action leading to development is under way or planned in the next 12 months. Part of the problem arising from Earls Court and some of the other discussions is that some people did not even know who owned some of the site and the Mayor and Transport for London were never completely open about their intentions. The new clause will ensure that we know who owns the sites and what sites TfL has, and will also ensure that TfL comes clean about what it intends to do with those sites, whether it be development with a partner, selling the site off or using it to borrow money, as specified under the Bill, to indemnify itself against costs.

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[John McDonnell]

I understand my hon. Friend’s argument, and I do not want to fall out with him—it is a good job that I did not announce my candidature, because I would have expected him to nominate me—but I am just trying to be as realistic as possible. He makes a valid point: there has to be some display of Transport for London’s medium and longer-term intentions for individual sites.

[George Galloway]

I, too, am a signatory to the new clause, but I, too, am persuaded by the hon. Member for Hammersmith (Mr Slaughter) in this regard. The hon. Member for Hayes and Harlington (John McDonnell) is being unusually moderate and reasonable, and he keeps saying that he does not want to insinuate anything about TfL or about the Mayor, so I wonder whether this is indeed a mayoral election speech we are hearing.

[John McDonnell]

Credibility is sinking in this House. I will not rise to that comment, Madam Deputy Speaker.

I hope that the Bill does not go through tonight, so that we can address the amendments we have tabled. That will give us the opportunity to look at the new clause and see—let me put it this way, in order to be helpful—whether we can ensure that information is provided by Transport for London and the Mayor on both a short-term assessment of the use of a planned asset or site and a medium-term option within at least the lifetime of a mayoralty. I think that might be a useful compromise—I do not want to be accused of going soft on these issues. I raise that point with the hon. Member for Harrow East because I think it is important.

The purpose of clauses 4, 5 and 6, we are told by the Bill’s promoters, is to enable the Mayor and Transport for London to enter into deals with private sector partners. These are development companies, and the aim is to develop TfL’s or its subsidiaries’ sites to secure a revenue stream to compensate for the 25% cut in Government grant to Transport for London and eventually for the complete loss of all central Government grant. How do we know that? It was raised on Second Reading and we sought confirmation from the Minister, who said:

“The outcome of the 2013 spending review was a 25% cut in TfL’s operational funding from central Government, and we have been clear that the Government’s aim is to reduce TfL’s operational funding over time to zero.”—[Official Report, 9 September 2014; Vol. 585, c. 853.]

So the purpose behind the Bill is to ensure that TfL raises another income stream to compensate for the Government’s cut in grant.

We need to examine the scale of the grant cut, which will be reflected in the potential scale of the use of the asset base. That is another reason why it is crucial that we get a definition and a list of TfL’s asset base on a value banded basis, as set out in new clause 1. I worry about the scale of income that TfL is looking to deliver from its asset base in proportion to the loss of grant.

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[John McDonnell]

Thank you for that advice, Madam Deputy Speaker. I will abide by it, of course.

[George Galloway]

I do not want to go off the rails that Madam Deputy Speaker has just set, but this “Mind the gap” that the hon. Gentleman is crying goes to the heart of the matter. Is not new clause 1 the place to deal with this? The Bill is driven by the gap that the Government and the Department for Transport have indicated to this Mayor of London—any Mayor of London—and the Mayor and TfL are being driven to asset-strip public assets. Left-wing thinking has moved on. Even the hon. Gentleman’s left-wing thinking has moved on. In principle we are not against public bodies earning money from non-performing assets that they hold, but we are not prepared to do so in secrecy and using dodgy vehicles in the Channel islands or parts even more exotic than that.

[John McDonnell]

Let me focus on the issue that Madam Deputy Speaker raised. TfL is trying to bridge a gap as a result of loss of Government grant. We will come on to the borrowing issues on the second group of amendments. One of the methods, as in Earls Court, is to enter into deals with private developers to secure some form of revenue income from the asset that is then developed.

I understand all that. I was chair of finance on the Greater London council. At 29 I was responsible for a £3 billion budget. What we did was exactly that. We had a capital fund that was agreed on a cross-party basis, secured against the assets of London overall. That is not a risk. We had the assets, we could go to the City and borrow from the City. We would put it into a pool. I think the system was established by a Conservative administration and inherited by a Labour one. We had cross-party agreement that that was the way in which we would go forward. It was not on the basis of mortgaging the individual assets and going into a link-up with a private developer, and it was certainly not about the development of sites to give revenue income in that way.

The point of new clause 1 is that I do not object in principle to going into some forms of partnership for the development of a site that will secure a valid revenue income. The issue is exactly as the hon. Member for Bradford West (George Galloway) said—it must be open, transparent and agreed with the local community, London boroughs and all the other stakeholders: the passenger representatives, the trade unions on behalf of their members, and so on. It has to be a way of going forward together and that is not happening. That is why new clause 1 is so relevant.

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[John McDonnell]

This was the point I raised earlier. The key aspect of the public-private partnership was the inability of the House, London Members and others just to get their hands on the information about the architecture of that PPP before it was imposed. Otherwise, I think it would have been exposed very early on.

[George Galloway]

It was indeed a PPP, not a PFI—that alphabet soup is frequently jumbled in my mind. However, my hon. Friend is absolutely correct. If we had had proper scrutiny at the time, rather than the dragooning of Labour Members into supporting the Treasury position, it would have been exposed far earlier.

With the new clauses and amendments, and with the arguments made this evening, we have tried to expose folly on a potentially even larger scale. My hon. Friend’s speech was truncated rather ham-fistedly—if the promoter of the Bill will forgive my saying so—such that it did not achieve what the promoter wanted; it just made my hon. Friend, our expert on these matters, sit down, but we are still discussing what he was proposing. And this was after only one hour and 10 minutes. His argument was forensic. As I have often opined in here, Government Members do not like it up them—some of them do, that is true, but the promoter of the Bill did not, and it was because arrow after arrow of logic and forensic examination from my hon. Friend was hitting home that the attempt to close down the debate was mounted.

“Mind the gap” is the rubric to remember. This is all about the gap in funding from central Government to Transport for London and closing that gap through the disposal of public assets. I said earlier in an intervention that on these matters left-wing thinking has moved on—even such left-wing thinking as that personified by my hon. Friend. We are not against making non-performing public assets perform in one way or another, although, as my hon. Friend the Member for Islington North pointed out, we do not want them performing in such a way that they can never again be used to perform the purpose for which they were originally intended, which in this case, of course, is to provide transport for London—the clue being in the name. In other words, we do not want land disposed of in a way that Transport for London can no longer control, so that assets are lost for ever. We are not against making public assets perform, if they are not necessary now—or perhaps even for many years and decades in the future—but we have certain conditions, and one of them has to be transparency.

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[John McDonnell]

May I say at this stage that I would like to press amendments 1 and 33 to a Division? Amendment 1 straightforwardly takes out paragraph (2) from the preamble of the Bill. Paragraph (2) refers to the powers set out in clause 4. I will then turn to amendments 4, 5, 6, 7 and so on.

Amendment 1 is consequential to amendment 15. What they do is delete the powers of Transport for London, set out in the Bill, to borrow by giving securities in the way prescribed in clause 4. The amendments strike at one of the main objectives of the Bill. Even if we took out clause 4, and even clause 5, we would still retain clause 7, which I support. Clause 7 concerns the mitigation of risk through hedging powers to be provided to Transport for London.

I want to delete clause 4, to which amendments 1 and 15 relate, because I do not consider that it should be part of a private Bill. The purpose of the clause and the scale of the potential financial responsibility levied on London council tax payers and taxpayers militate against this being a private Bill; it should be a public Bill. Clause 4 should not stand in the Bill.

[George Galloway]

That is the point that struck me between the eyes. I am talking about having words such as “risk” and “hedging” in a private measure. Surely we have learned enough about the risk at the hands of private individuals and about the grave economic consequences to argue that this matter should be postponed until the next Government, when the state and the civil service can give it proper attention.

[John McDonnell]

I fully agree, and I shall develop that argument. What my hon. Friend is suggesting in his proposal is that it would be better if this clause were brought forward by the Government rather than in a private Bill. That is because of the scale of the risk involved in the exercise of these powers.

I would welcome it if these powers were brought forward in a public Bill. Why do I believe that? Madam Deputy Speaker, let me take you to pages 929, 930 and 931 of “Erskine May”, with which I am sure you are fully conversant. On those pages, we see identified the subjects that should be considered as unsuitable for private legislation, but which should be dealt with by a public Bill. It says that a private Bill has sometimes been rejected, although properly introduced—as this one has been—because the House has decided, given the merits of the Bill in question, that the subject matter was unsuitable for private legislation.

There are examples in “Erskine May”, on pages 929, 930 and 931, of attempts to use private Bills to raise money for public purposes; it argues that they should fall under a public Bill. I will not go through them at length, but I will draw the House’s attention to the decisions made by previous Speakers. Those decisions have been based on “Erskine May”, which says:

“A bill the sole object of which was the creation of a charge on public funds has not been allowed to proceed as a private bill.”

There has also been the example of previous legislation. The Aberfan Disaster Fund Bill was rejected as a private Bill, but sections of it were brought forward as a public Bill. “Erskine May” says:

“A bill concerning a government guarantee, even though it amended a private Act, has been a public bill.”

That is exactly what the clause does.

I am not saying that the whole Bill is unsuitable for private legislation, but clause 4 certainly is, and it should be deleted. The whole purpose of the clause, as far as I can see, is to allow Transport for London to raise funds by mortgaging assets. However, at the end of the day, the final guarantor of those charges will be the taxpayer, or the Treasury. Therefore, the provision should be brought forward as part of a public Bill rather than a private Bill.

I do not want to go over the arguments that we have already had with regard to the magnitude of the financial risk, the values of the sites involved, the billions of pounds at risk or the long-term consequences for the travelling public if a number of these speculative developments by the Mayor of London or Transport for London go pear-shaped. As far as I see it, that risk is intolerable.

Syria and the Use of Chemical Weapons

Debate between John McDonnell and George Galloway

Thursday 29th August 2013 Commons Chamber

[George Galloway (Bradford West) (Respect)]

Thank God for the erudition and historical memory of the last three speakers; those qualities were almost entirely absent from the Prime Minister’s initial address. He was clearly making a speech that was not the one he intended to make here this afternoon. Otherwise, Mr Speaker, he would not have persuaded you to recall the House of Commons, at vast public expense, to decide that we were actually going to decide on this matter next week or the week after, when we shall be back here in any case. It is absolutely evident that, if it were not for the democratic revolt that has been under way in this House and outside among the wider public against this war, the engines in Cyprus would now be revving and the cruise missiles would be ready to fly this very weekend. Any attempt by the Prime Minister to pretend that he had intended to take this course of action all along is just bunkum.

The unease on both sides of the House, demonstrated in two exceptional speeches by the last speaker and the hon. Member for New Forest East (Dr Lewis), reflects the feelings of the people of this country. According to The Daily Telegraph this morning, only 11% of the public support Britain becoming involved in a war in Syria. Can any British Government have ever imagined sending their men and women to war with the support of only 11% of the public?

There is no compelling evidence—to use the Leader of the Opposition’s words—that the Assad regime is responsible for this crime, yet. It is not that the regime is not bad enough to do it; everybody knows that it is bad enough to do it. The question is: is it mad enough to do it? Is it mad enough to launch a chemical weapons attack in Damascus on the very day on which a United Nations chemical weapons inspection team arrives there? That must be a new definition of madness. Of course, if Assad is that mad, how mad will he be once we have launched a blizzard of Tomahawk cruise missiles on his country?

As I heard those on the Front Benches describe how bad Assad was, I wondered just why the former Prime Minister forced Her Majesty to billet him in her guest room at Buckingham Palace just a few years ago, and why a former Prime Minister recommended him for an honour. I remembered how he was hailed from all corners as a moderniser. The narrative has now changed, of course, because this Government are intent on regime change in Damascus.

That brings me to the only other point I am going to be able to make in the time available. The reason for the unease is that people can see the character of the Syrian opposition. They have seen the horrific videos that we have heard about. Take a look at the video of one of the commanders of the Syrian revolution cutting open the chest of a human being and eating his heart and liver. He videotaped himself doing it and put it up on YouTube because he thought that it might be considered attractive. Take a look at the videos of Christian priests having their heads sawn off—not chopped off; sawn off—with breadknives. Even a bishop in the Christian Church was murdered by these people. Every religious minority in Syria—there are 23 of them—is petrified at the thought of a victory for the Syrian rebels, whom the British Prime Minister and Foreign Secretary have been doing their utmost to supply with weapons and money over the last two years. They cannot deny that. They say that this is now about this new crime, whoever committed it, but it has been the Government’s policy for two years to bring about the defeat of the regime in Damascus and a victory for the kind of people who are responsible for these crimes.

I have 20 seconds left—

[John McDonnell]

Will the hon. Gentleman give way?

[George Galloway]

Willingly.

[John McDonnell]

If only for another 60 seconds. The hon. Gentleman made reference to arms supplied to Syria, but let us remember where those arms have come from over decades—from this country.

[George Galloway]

Indeed.

I now have 60 seconds at my disposal, so let me make this point more clearly. When did the 2.5 billion people of Russia and China cease to be members of the international community? Who are you on the other side to decide what the international community should do, if you are unable to persuade the Security Council to go along with your point of view? Who are you to decide that you will launch a war in any case?

I keep hearing about the unreasonable use of the veto. I have heard that many times in this House over the past few years. The United States has vetoed every attempt to obtain justice for the Palestinian people and to punish and issue retribution for international lawbreaking on the part of Israel, and nobody in this House has said one word about it.