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.