Higher Education (Freedom of Speech) Bill (Eleventh sitting)
Debate between John McDonnell and Lord Beamish(3 years, 2 months ago)
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John McDonnell
To follow up on that point, we and a large number of organisations and individuals will be extremely interested in the appointment of this individual. If there is any whiff of a political appointment, it will completely undermine the Bill and the Government’s intentions, whether we agree with them or not—I caution them on that point. That is why building additional safeguards into the Bill is important.
I have been a strong supporter of the establishment and development of Select Committees. As shadow Chancellor, I argued for a greater role for Select Committees in the formal appointment of the Governor of the Bank of England and others. If we cannot secure the role of the Select Committee in the confirmation of an appointment, it would be valuable to hear the Minister’s views on a pre-appointment hearing. As the hon. Member for Ruislip, Northwood and Pinner said, that would at least provide an opportunity for greater scrutiny of the individual and the process.
I caution the Government. There is often an element in a piece of legislation that can unpick the whole of the legislation’s import. I think this is a banana skin waiting to be stood upon if the Government are not careful and do not ensure that the process is above reproach and free from any party political interference. That could poison the well altogether.
Mr Jones
As I have already stated, I have deep concerns about the Bill. It comes back to what we define as freedom of speech. In the evidence sessions, we found different views and different incidents, in terms of no-platforming and organisations being stopped from using buildings. The hon. Member for Congleton raised Christian Concern. I have read its website. It holds some quite extreme views, and I could understand why it would cause offence to certain students. In my opinion, it is down to the institution whether they allow such an organisation’s event to take place. For example, a gay student would be concerned that the organisation in question was questioning things such as the ban on gay conversion therapy. I understand why people might think that is what their institution should be about—disagreements.
Higher Education (Freedom of Speech) Bill (Seventh sitting)
Debate between John McDonnell and Lord Beamish(3 years, 2 months ago)
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Mr Jones
It could but, again, there is a problem because that detail is not in the amendment. There is a difference between a huge academic institution and a small FE college, and I do not know how we get one standard format to deal with that.
There is another issue, which was mentioned in the evidence. The amendment says:
“a report detailing the steps their organisation has undertaken to fulfil its positive duties under subsection (2)”.
That is about freedom of information. It comes back to the problem with this legislation and what we define as freedom of speech. Not only would we need a form or standardised format across all the institutions, but we would need to try and get a definition of what that freedom of speech is. We struggled with that with all the witnesses. It is a bit like motherhood and apple pie: we are all in favour of freedom of speech, but trying to define it is very difficult, especially if we want to ensure that all institutions promote the same thing, because there might be very different interpretations of what the duties would be, and I can see practical difficulties in that.
The right hon. Gentleman, who I have great affection for and have worked closely with, said that the Government must think there is a problem. Well, that is the problem with the entire piece of legislation—it is legislation looking for a problem, rather than solving an existing problem. The onus it will put on universities and the higher education sector is impractical.
Also, what is the sanction if, for example, an institution does not submit its report? What happens if it does not do something? We need criteria in the reporting that says, “You have to do X, Y and Z to meet this threshold” or whatever it is we are trying to achieve. Again, what is the sanction? What happens if an institution says, “I am just not bothering to do this”, or, “I do not have time”? Some might take a principled stand and say, “We are not going to do it.” What is the sanction and where does it say in the Bill, “You have to do it”? So there is a problem there. Are we suggesting that funding or other things should be withdrawn?
That comes back to my big concern about the Bill. I have said it before and I will say it again: it is a very un-Conservative approach to this sector, for the state to interfere directly in organisations that should have the ability to self-govern. What they want to achieve is ensuring that young people have a fulfilling and rich academic education, as we all do. It comes back to the issue of where the legislation lies; as well-intentioned as it may be, there are huge problems with it. It would be not only burdensome, but practically impossible to implement.
John McDonnell (Hayes and Harlington) (Lab)
I congratulate the Minister, although, having sat in the shadow Cabinet, I am not completely sure that she will enjoy sitting in the full Cabinet. The right hon. Member for South Holland and The Deepings said that he did not want to put words in the Minister’s mouth and then went on to put words in my mouth. I want to be absolutely clear, on every occasion, that I think the Bill is an unwarranted intervention. It is completely unnecessary and on the edge of being crackers. However, we will try to make the best of a bad job.
I understand where the right hon. Gentleman is coming from: there has to be a line of accountability. It should be public, open and transparent, and doing the reports is one way. However, my problem is that it is heavy on regulation. I thought that there was a rule in the Government: one regulation in, one regulation out. I look forward to hearing which regulation is coming out to accommodate this going in.
I have worked in local government, both elected and as a civil servant. We know what will happen to this requirement if it is on a quarterly basis. It will either be a simple checklist and that is it—almost meaningless—or it will become a burden that some institutions will fail to fulfil effectively. Therefore, I think it is best left to the annual reports undertaken by the universities and colleges, rather than quarterly reports.
Financial and Social Emergency Support Package
Debate between John McDonnell and Lord Beamish(4 years, 8 months ago)
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John McDonnell
It demonstrates that naming and shaming works, and at some time in the future I might drink to that.
John McDonnell
Not necessarily.
Lay-offs are happening at scale, as I said, and hon. Members have mentioned the statistics. The Secretary of State for Work and Pensions has said that nearly 500,000 people have now applied for universal credit. I welcome, as always, the work that my right hon. Friend the Member for East Ham (Stephen Timms) and his Work and Pensions Committee have done in demonstrating the nature of the reforms that are needed to universal credit. We need those reforms rapidly now to be able to assist people and keep them out of poverty.
Recall of MPs Bill
Debate between John McDonnell and Lord Beamish(10 years ago)
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John McDonnell
There may well be another referendum in due course. We might have to listen to the electorate on that and respect their views. If there is a continuous flow of recalls in an individual constituency, that might reflect that there is something seriously wrong within it. I believe the electorate are wiser than that. If a small group campaigned against an individual MP, the electorate would see through it. The electorate who vote in a recall are the same as those who will vote in a general election. I do not see that there would be a significant difference, apart from, as my hon. Friend the Member for North Durham has said, the focus of big money or a powerful magnate on a short campaign, which we need to address in the debate.
Mr Kevan Jones
I hear what my hon. Friend says, but he should look at what has happened in the United States. Big money gets behind the campaign. There is a recall when the big money does not like the result—the gun control lobby in Colorado is a good example. The turnout in the recall election can be quite small—I believe it was 36%. The hon. Member for Richmond Park (Zac Goldsmith) said that we would need 51%, but it will be 51% of a small amount of the electorate.
John McDonnell
I say again that my hon. Friend makes an extremely valid point on the influence of big money in recall elections, but I remind the House that, even after a recall, the individual has the right to stand at the general election, when the same electorate will vote. Therefore, if an individual is unfairly treated in a recall ballot in that way and unfortunately loses, they can stand at the general election, in which they will have the same standing as every other candidate who puts their name forward. There are protections, but he has a valid point that Front Benchers need to consider. How can an individual have the right to voice their views during a recall campaign in a balanced way, with an equivalence of resources and access to the media? That goes beyond new clause 2, tabled by the hon. Member for Newton Abbot, which I support. When the recall campaigns take off, they will be driven in some instances into the local media, and in some instances the national media.
It is a simple principle: trust the electorate and the people. The proposed system still has the hurdle of the House taking a decision on whether a recall process is set in motion. The proposal still involves the House narrowing the definition of the basis for recall. Our constituents might have a much wider view of misconduct and wrongdoing, and we must listen to them.
This is not just about restoring confidence in Parliament. We went downhill in the expenses scandal—that disaster affected all MPs, no matter how honest they were, and those who drove us into the mire damaged us all. We are slowly building confidence. I agree with other hon. Members: people come into the House to do good. This was an honourable profession, and I believe it still is. For most of us, the proudest moment of our lives was when we were elected to represent our constituents. The recall discussions will give the message that we have listened and are willing to tackle the problem, no matter how hard it is.
Defence Reform Bill
Debate between John McDonnell and Lord Beamish(11 years ago)
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John McDonnell (Hayes and Harlington) (Lab)
We have been here before with such privatisations, but surely the concept of competition is stretched to absurdity when there is only one bidder. We risk demoralising the staff we employ at the moment; today, we did not even reach the part of the Bill that would have given them the assurances that are needed about their long-term employment prospects.
Mr Jones
My hon. Friend makes a very good point. As the process goes forward, there is obviously a lot of concern among people who work in defence procurement. It is important that things are brought to a conclusion so that they can have some reassurance. It will be interesting to see how the process goes ahead with just one bidder. We need to ensure that that is scrutinised in the other place, as I am sure it will be. I hope that the Minister will keep us informed in the House about that ongoing process.
Finance (No. 3) Bill
Debate between John McDonnell and Lord Beamish(13 years, 6 months ago)
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Mr Kevan Jones
Does my hon. Friend agree that if the levy was designed to change the behaviour of bankers, it has failed? Barclays, for example, paid more than £110 million to five of its top bankers.
John McDonnell
I agree with my hon. Friend, but I will come to that point later. The way in which the banks have continued their profligate distribution of bonuses looks like them cocking a snook at the Government and the level at which the levy has been set.
When the Chancellor appeared before the Treasury Committee, he advanced two arguments on how the levy was constructed. First, he argued that the levy was based on the price of the insurance that the Government and the taxpayer now implicitly offer for the wholesale funding of the banks; the levy is therefore a tax on the wholesale funding of banks’ operations. However, a calculation of the appropriate insurance for that scale of banking insurance, which could surely be done, would show that that sum is significantly more than the current bank levy proposal would raise.
The Chancellor’s second argument was that the levy was in the interests of equity: the banking sector, as well as the rest of us, should make a contribution to resolving the economic crisis. However, the amount that the bankers are being asked to provide to help to tackle the crisis that they created is piffling in comparison with the damage caused to our wider society, and minute in comparison with the burden that is being carried by others in terms of job losses and services cuts. Whole communities now face significant suffering and deprivation.
The Chancellor himself admitted that the targeted revenue sum was “relatively small” because, he argued, it balanced fairness with competitiveness, yet no study has been published and no evidence has been produced on the impact on banking competitiveness of varying the levy. Like my hon. Friend the Member for Nottingham East (Chris Leslie), I want to know what independent assessments have been made of the balance between fairness and competitiveness and how the calculation was arrived at. I agree with my hon. Friend the Member for Edmonton (Mr Love), who said that the measure throws the Government’s commitment to tax simplicity out the window. The taxation system on this issue is now more complex than any other point of taxation in the tax book, so I endorse the questions about how HMRC, with its current staffing cuts, can cope with the implementation of the levy. I would also welcome the Government publishing the consultation on the assessment of the amount of tax take from the proposed levy, because it looks like consultation was either non-existent or fairly minimal.
The amendment would require the report to consider
“the adequacy of the bank levy in the context of other reforms”.
Our understanding is that the levy was set to assist the implementation of the Merlin agreement and to ensure that the banks had a lending strategy to help get the economy moving and out of recession. As others have said, the levy must be set so as to ensure a continued influence on banks’ behaviour in relation to remuneration and bonuses. While promoting the bank levy, the Prime Minister and Chancellor exhorted bankers to show restraint. Is the levy set at the right level to ensure that the other reforms linked to it are completed and adhered to?
Finance Bill
Debate between John McDonnell and Lord Beamish(14 years, 4 months ago)
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John McDonnell (Hayes and Harlington) (Lab)
I beg to move amendment 11, page 1, line 6, at end insert—
‘(2) Subsection (1) shall not have effect unless the Chancellor of the Exchequer has laid before the House of Commons a report on the extent of avoidance and evasion of corporation tax and on the measures he proposes to take to ensure the payment of tax which is due.’.
I almost feel like apologising for returning to the issue of tax evasion and tax avoidance, which I have pursued for a number of years since the debate that we had about the merger of Inland Revenue and Customs and Excise to form Her Majesty’s Revenue and Customs. The amendment is fairly straightforward in seeking that a report be prepared by the Chancellor of the Exchequer before corporation tax and capital gains tax measures are agreed by the House. I will not repeat myself in relation to amendment 12 to clause 2, although I will move amendment 12 formally. We have argued consistently about how to tackle evasion and avoidance and the investment required to do so.
Let me explain the rationale behind the amendment. I listened to the Second Reading debate into the early hours, including the discussions about Randalls of Uxbridge, which were enlightening at that point in time—
John McDonnell
As my hon. Friend says from a sedentary position, the discussions were refreshing, to say the least. I think there is another sale on at the moment.
The debate was about how to resolve the deficit that has arisen as a result of the credit crunch and the economic crisis that we face. Clearly, the division was around the level of reductions in public expenditure required and the time scale for their implementation. There was fierce debate about the level of public expenditure decreases and their implications for jobs losses, cuts in services and the impact on communities.
What was absent from the debate was a discussion of increasing tax revenues as an alternative to cuts. Everyone appreciated that the deficit needs to be reduced. There was some agreement, even across Benches, on some cuts, particularly with regard to ID cards and, perhaps, Trident. With regard to cuts in education and welfare benefits, however, there were strong differences. We need to look again at tax avoidance and evasion. There has been confusion about definitions in previous debates. Tax evasion is defined closely as the illegal non-payment or under-payment of taxes, usually resulting from the making of false declarations, or from no declarations of taxes to tax authorities, and can result in legal penalties. Tax avoidance is seeking to minimise a tax bill without deliberate deception, but contrary to the spirit of the law.
John McDonnell
The difference is clear with regard to legality and illegality. The technical implementation of tax legislation can be complex, so people can misunderstand which side of the fence they fall. During earlier debates in the House, the Denis Healey quote was cited that the difference is a prison wall. The implementation of measures to tackle tax evasion in particular is critical to the sound management of public finances and, obviously, to probity in the management of tax resources.