Finance Bill

Debate between John Redwood and Diana Johnson

Tuesday 8th September 2015 Commons Chamber

[John Redwood]

I am trying to deal with the underlying reason why it can be very difficult for young men, in particular, to afford insurance. The big problem is not the increment on top of the current insurance tax or the bigger increment resulting from this Bill; it is the starting level of the premium. People are working on ways in which we may be able to address that.

If the young person can accept a system that will reassure the insurer that they are going to drive sedately, prudently and safely, then the reason for charging them more disappears. By accepting the constraints of the technology, they can demonstrate that they are driving safely. That reinforces their cheaper premium and they can start to earn the bonuses that the rest of us enjoy if we have driven safely for a long period and then get discounts on the insurance costs. It is getting started that is so difficult for young males, in particular, when they are all judged by the average standards of high claims that the industry experiences. I hope that the Minister and her colleagues in Departments more directly related to the insurance industry will look at this problem. It is not caused primarily by the tax system but by assessment of risk and perceptions of driving behaviour. It can be very unfair on individuals, and the more that can be done to smooth that out, the better.

I do not like tax rises. Part of the reason I am in Parliament is that I want to be a voice to try to keep taxes down and have a more prosperous society as a result. I cannot say that I welcome this part of the Finance Bill, but as someone who believes that there are important public items that we cannot cut, and faced as we are with Opposition parties that very rarely come forward with any proposals to save public money, we have to raise a reasonable amount of money. We have been borrowing too much, and this is part of a series of measures to try to get our borrowing under some kind of control. With regret, I conclude with the Government that this is one of the least bad options for trying to do that. I hope that they will take on board the need to work away at some solutions to the underlying problem of individual categories such as young drivers who may find this to be another increment on top of a difficult situation.

[Diana Johnson]

I want to speak briefly to amendment 1, tabled by my hon. Friend the Member for Worsley and Eccles South (Barbara Keeley). It centres on the need to review within three months the impact of clause 43 on the charges for and take up of insurance policies. As I said in my intervention on my hon. Friend, the proposal relates directly to those properties that are not part of the Flood Re scheme.

I want to address this issue because of its effect on Kingswood in my constituency. Hull was one of the most successful areas in the country for the previous Government’s Help to Buy scheme. I welcome that. Obviously it is important that people are assisted in buying their own homes and properties. The problem, however, is that more than 95% of the city of Hull is below sea level and it has been prone to flooding in the past. In 2007 we had very bad surface water flooding, so insurance companies look at what has happened in Hull and fix their premiums accordingly.

The Flood Re scheme has assisted in the past and we now have the new Flood Re scheme. The problem, however, is that it does not apply to properties built after 2009. Those young people and first-time buyers who have bought properties in Kingswood over the past few years are not able to access the Flood Re scheme, so they have to go to the open market for house insurance. I am concerned that those people, who are trying to do the right thing and buy house insurance, may find themselves being doubly penalised, because not only are they not entitled to the Flood Re protection, but they will have to pay this increase in insurance tax.

Eurojust and the European Public Prosecutor’s Office

Debate between John Redwood and Diana Johnson

Tuesday 29th October 2013 Commons Chamber

[Diana Johnson]

Clearly, I am not in government, so I am not in a position to have such conversations, but it is important that the Opposition raise questions about what the Government have been talking to their EU partners about and whether they have been able to form any of the alliances that other hon. Members have mentioned to get the best possible way forward.

[Mr Redwood]

Do the hon. Lady and her party agree that we do not want more transfers of power over our criminal justice system to the EU and that we wish to protect our common law traditions?

[Diana Johnson]

As I just said, we are interested in trying to deal with crimes such as human trafficking, financial fraud and the serious organised crimes that go across borders, which are not about what is happening in the UK but are Europe-wide and global. We should make sure that we have procedures in place to ensure co-operation where it is useful.

The three main aims of the reforms are, as we understand it, to increase democratic accountability to member states’ legislatures; to increase efficiency through more streamlined management structures; and to improve EU member states’ effectiveness in the increasingly globalised fight against organised crime. All are laudable aims with which I am sure we all agree. Equally laudable is the aim of increasing our effectiveness in tackling cross-border crime. The Government’s current objections can be divided into those that need working through, which we recognise, and those that, I suggest, appear to be spurious.

The major change, and the one that we recognise poses the biggest challenge, is the appointment of the national member. Under the proposed reform, member states will second a national member—a prosecutor, judge or police officer—to work full time at Eurojust. Member states will grant national members the power to fulfil the task conferred on them by the Eurojust regulation. That means national members, once appointed, will bear responsibility for ensuring that their member states co-operate with Eurojust, including through legal assistance, information exchanges, liaising with international bodies and assisting in joint investigation teams. National members, working with other competent authorities from member states, will also:

“a) order investigative measures;

b) authorise and coordinate controlled deliveries in the Member State in accordance with national legislation.”

The Opposition accept that the appointment of national members represents a big step up for the role of Eurojust. We fully recognise that it is not acceptable for the national member to be in a position of oversight over the UK criminal justice system. I reiterate that we do not support any move to cede prosecuting powers to the EU, either to the EPPO or through some mechanism of Eurojust. However, we would like to see the Government attempt to reconcile those proposals with the current set-up in our criminal justice system.

The Government appear concerned that, as currently formulated, the proposals could allow Eurojust to order investigations, or even prosecutions, that duplicate efforts already under way in the UK. Prosecutions in the UK of course require the consent of the Director of Public Prosecutions, while investigation of most of the crimes listed in annex 1 are the responsibility of the newly formed National Crime Agency. Perhaps the Minister will explain what work is being done to look at the possibility of drawing the national member from one of those bodies and work on the basis of a memorandum of understanding to ensure that the UK retains sovereignty over our systems while improving cross-border co-operation. As has been mentioned, special arrangements will need to be put in place for Scotland.