Oral Answers to Questions

Debate between Justine Greening and Jesse Norman

Tuesday 1st October 2019 Commons Chamber

[Jesse Norman]

I have no idea what the loan charge review will conclude, but I guarantee that we will look at its findings with all due speed and dispatch.

[Justine Greening (Putney) (Ind)]

Like many Members, I have constituents who have been egregiously affected by the loan charge. The Minister’s response is unacceptable from their perspective. He should suspend all the loan charge activity while the review is under way and until the Government have responded to it. What preparation is happening in HMRC for the policy shift if the review says that the loan charge is unfair and needs to be changed? How will he deal with my constituents who have already had to pay but may be proven to have paid erroneously?

[Jesse Norman]

I am unable to comment on what the review will conclude. We can certainly look at whether there may be changes that HMRC would take rapidly thereafter. It possesses the capacity to do so quite quickly if necessary, as does Government. We will have to review that moment when it comes.

Oral Answers to Questions

Debate between Justine Greening and Jesse Norman

Tuesday 2nd July 2019 Commons Chamber

[Jesse Norman]

The hon. Gentleman is right that there is stress, but he should also be clear that a large number of people have been systematically using those means to avoid paying tax, and the potential amount payable is more than £3 billion. He should be protective of the tax base more widely when he reflects on those matters. He is right that HMRC is taking careful steps to ensure that it protects and supports those who may be in genuine difficulty, and those who have other personal concerns can of course be referred to outside agencies.

[Justine Greening (Putney) (Con)]

The reality is that many people caught up in the loan charge scandal were effectively mis-sold schemes that they were told had been QC vetted and were perfectly legal. That is underlined by the fact that no criminal charges are being pursued against any of the individuals who sold the schemes. Is it not time for this fresh Minister to take a fresh look at the Treasury’s approach to all this?

[Jesse Norman]

I think that my right hon. Friend misstates the case. A disclosure of tax avoidance number was associated with a large number of those cases. The people knew that they were in schemes that were potentially suspect. Every person is responsible for signing off their own tax return. I trust that my right hon. Friend will be reassured by the fact that recently six individuals were arrested on suspicion of promoting fraudulent loan charge arrangements. That speaks to a wider picture.

Oral Answers to Questions

Debate between Justine Greening and Jesse Norman

Thursday 10th January 2019 Commons Chamber

[Jesse Norman]

I will not comment on that sartorial choice. Of course I completely disagree with my hon. Friend’s description of Highways England, but I would be delighted to meet him.

[Justine Greening]

rose—

Heathrow

Debate between Justine Greening and Jesse Norman

Thursday 7th June 2018 Commons Chamber

[Justine Greening (Putney) (Con)]

(Urgent Question): To ask the Secretary of State for Transport if he will make a statement on the potential taxpayer liabilities that the Government have entered into in their statement of principles agreement with Heathrow Airport Ltd.

[The Parliamentary Under-Secretary of State for Transport (Jesse Norman)]

Let me thank my right hon. Friend the Member for Putney (Justine Greening) for raising this issue. She has been absolutely indefatigable on it, and I salute her.

As the Secretary of State set out in his oral statement on Tuesday, we recognise the very strong feelings on this matter of some Members across the House and their constituents. I am aware of the various representations that have been made in the Chamber that Government would be liable for Heathrow’s costs should they decide to withdraw support from the scheme. These representations appears to stem from a clause in a non-legally binding agreement between Heathrow and the Department for Transport that has, I am afraid, been taken out of context.

The question was addressed by the Secretary of State for Transport on Tuesday and by the Prime Minister yesterday. Let me repeat in the clearest possible fashion that there is no liability here. The Government have not entered into any agreement that gives Heathrow the right to recover its losses in the event of the scheme not proceeding, and nor would they accept any liability for any of the costs that Heathrow Airport Ltd has incurred or will incur in the future.

For the avoidance of any doubt, I will quote directly from the document in question, which says that

“this Statement of Principles does not give either HAL or the Secretary of State any right to a claim for damages, losses, liabilities, costs and/or expenses or other relief howsoever arising if, for whatever reason, HAL’s Scheme does not proceed”.

We are absolutely clear that we would have a responsibility to Parliament when a liability or, indeed, a contingent liability were incurred.

Yesterday, the Government laid before Parliament a written ministerial statement and departmental minute that set out what was a contingent liability for statutory blight, which will start if the proposed airports national policy statement is designated. The liability is contingent because the Government have rightly protected the taxpayer by entering into a binding agreement with Heathrow Airport Ltd whereby the airport assumes the financial liability for successful blight claims, if the scheme proceeds.

With regard to wider scheme costs, the answer is simple: we have not notified Parliament of any liability because there is none.

[Justine Greening]

I am very grateful to the Minister, for whom I have a lot of respect, for coming to the House today. He mentioned one part of the statement of principles, but he will also know that the immediate clause after that says “notwithstanding…2.1.5”—that is, the paragraph he just read out. In other words, it says that in spite of that, Heathrow Airport Ltd

“reserves its rights (including but not limited to its rights to pursue any and all legal and equitable remedies (including cost recovery) available to it”,

and I set out that yesterday. It has clearly been written by a lawyer. If it does not matter legally, why did Heathrow Airport Ltd include it in the statement of principles? It paves the way for Heathrow to recover costs from the taxpayer when things go wrong. As the Secretary of State himself said on Tuesday, there are circumstances in which the runway could be built but then not used.

My questions are as follows. Why was this term agreed to in the first place? Heathrow is a private company, and should therefore accept the risks. Why was it agreed to exclusively for Heathrow Airport Ltd? Were the Secretary of State and the Department for Transport clearcut with Parliament about the existence of the clause, and if not, why not? Why was it never flagged up in the national policy statement documents that have been seen by the public? What assessment have Ministers made of the existing outstanding liability under the clause, given that it has already been triggered, and will the Minister confirm that my own assessment is correct?

Was the Cabinet Sub-Committee that made the decision to proceed with Heathrow Airport Ltd’s proposal made aware of the clause? For transparency purposes, will the Minister publish the papers that the Sub-Committee did look at, so that we can establish the level of detail that was available to it when it reached its conclusion? Why should the Minister have any faith in the prospect that if the Heathrow expansion goes wrong—as I suspect it will—and the company pursues the Government and taxpayers for potentially billions of pounds in costs, it will then honour any public service obligation in relation to routes to regional airports, and why does he think that the Scottish Government should have any confidence that it will ever stick to the memorandum of understanding?

[Jesse Norman]

My right hon. Friend has asked a vast number of questions. If I do not cover all the points that she raised, I shall be happy to write to her. She mentioned the Cabinet Sub-Committee; I am not a member of the Sub-Committee and have not seen the papers that were presented to it, so I cannot comment on that.

My right hon. Friend asked whether any liabilities had been created, and directed my attention to a specific clause. It is of course a very narrow legal point, but I entirely accept that it is important to focus on it. The Government’s position is that no liabilities have been created, and therefore none need to be disclosed; and no contingent liabilities have been created. The statement of principles is a standard document on which the Government took advice both from distinguished leading counsel and from a top-tier firm of solicitors. It simply allows Heathrow Airport Ltd to reserve rights that it would normally have under commercial law, while making clear that the Department has no liabilities in respect of the issues already described.

We, as a Department, are clear about the fact that the statement of principles is not legally binding. It does not create any legitimate expectation. It does not fetter the discretion of the Secretary of State. It does not give Heathrow Airport Ltd the right to claim

“damages, losses, liabilities, costs and/or expenses or other relief”.

Heathrow does, of course, retain some rights of its own, and that is entirely proper.

There might be circumstances in the future under some future Government, possibly of a different political persuasion, that did create a contingent liability, and the Government would then be under an obligation to present that to Parliament in the normal way. Heathrow Airport Ltd might, in the exercise of its legal rights, have the ability to sue them in some respect, but that is not touched on by this question.

The statement of principles with which we are dealing is not, in fact, the only document of its kind. There were two other such documents. In October 2016, the Government entered into an agreement on a statement of principles with Heathrow Airport Ltd, as we have discussed, but versions of the same document were also agreed with the promoters of the other shortlisted schemes, Gatwick Airport Ltd and Heathrow Hub Ltd. Those, of course, fell away when the Government recommended the Heathrow north-west runway as the preferred scheme. This is not a one-off deal or any kind of special arrangement with Heathrow itself.

Airports National Policy Statement

Debate between Justine Greening and Jesse Norman

Thursday 7th June 2018 Westminster Hall

[The Parliamentary Under-Secretary of State for Transport (Jesse Norman)]

It is a delight to see you in the Chair, Mr Hanson. It has been an interesting and wide-ranging debate. I start by putting on the record my gratitude to the hon. Member for Nottingham South (Lilian Greenwood) for her detailed, thoughtful and statesmanlike speech, which absolutely flagged the way in which the Transport Committee had approached the process, the thoroughness and care with which it engaged with the issues and the unanimity of the report, subject, as she made clear, to its serious concerns being addressed. She is absolutely right about that.

Many more concerns have been raised during the debate, and I will try to cover them all individually during the course of my speech. If hon. Members feel that I have not covered any, they are absolutely welcome to write to me or to the Secretary of State, who has already said in response to my right hon. Friend the Member for Putney (Justine Greening), and as is already happening, that the Department will respond with urgency and diligence to questions put to it because of the tightness of the timetable, which is not under the control of the Government but is decided by the Planning Act 2008.

I am grateful to the hon. Member for Nottingham South and also to the Committee for securing the debate. We have had a wide-ranging conversation, and I will focus on what has been said, but particularly on the Committee’s report and the Government’s response to it. As hon. Members are aware, there will be ample opportunity to address the NPS more broadly in the debate on the Floor of the House before the vote, and I have no doubt that there will be other parliamentary occasions to do so as well. I thank the Committee for that on both of those fronts.

The Committee’s report is clear that airport expansion in the south-east is vital. It supported the strategic argument that the Heathrow north-west runway scheme is the best option, subject, as we have discussed, to the caveats described. Importantly, it does not shirk the “do nothing” option. It is aware that doing nothing is not an option—I do not think some hon. Members have quite been aware of that—given the constraints on capacity in this country, particularly in the south-east. That was an important recognition of the seriousness of the issue on both sides.

To answer a question put earlier by my hon. Friend the Member for Windsor (Adam Afriyie), the Government are clear on our side that expansion will proceed only if the proposed scheme meets strict environmental obligations and offers a world-class package of compensation and mitigations for local communities. If those are not in place, the scheme will not proceed, so genuine questions as to whether it will proceed are raised by those issues.

Having given the report careful consideration, we have welcomed and acted on all bar one of the 25 recommendations, which I shall discuss in detail. The hon. Member for Kingston upon Hull East (Karl Turner) said that we had only paid lip service to them, but that is not true; in fact, we have engaged very seriously with them. One can see that not just in the changes that have been made to the NPS itself but in the very detailed response in the back of our report, to which I direct hon. Members. The last 20 pages of the Government response are a very detailed analysis of the additional points raised in the Transport Committee’s report. This is an eight to 10-point detailed discussion and analysis, and it shows the depth of our engagement with the report. As the hon. Member for Nottingham South says, the report was received on 23 March, so we have had it for two and a half months. There was no precipitate behaviour; we have not rushed to our conclusions. We have sought to digest with care and attention the Committee’s thoughts and analysis.

Some of the issues raised by the Committee will be addressed, as our response makes clear, at a later stage in the development of the scheme, as is appropriate. It is important to say that what we are discussing is a framework document setting out the overall planning approach in relation to this very substantial national infrastructure project—it is of national significance. Therefore, it is appropriate that many of the more detailed issues that need to be solved are addressed later in the planning process.

[Justine Greening]

Will the Minister give way?

[Jesse Norman]

I am happy to give way, but even with 19 or 18 minutes left, I do not have a lot of time, given the many issues that have been raised already.

[Justine Greening]

I understand the point that my hon. Friend is making, but some of the detailed questions, as he has just called them, are actually questions about the feasibility of this project more broadly, and that is why they should be answered sooner and not later.

[Jesse Norman]

I absolutely understand the concern that my right hon. Friend expresses and I will come on to some of the aspects covered by that later in my remarks.

Let me pick out the one recommendation that we were not able to support, which was raised by several hon. Members. This is the question whether we can give the Lakeside Energy from Waste plant equivalent recognition to that accorded to the immigration removal centres. In response to similar concerns raised during the first public consultation, we strengthened the language in the NPS. Although we recognise the important role of the plant for local waste management, it is not—this has been verified in analysis by both the Department for Environment, Food and Rural Affairs and the Department for Business, Energy and Industrial Strategy— a strategic asset and its loss would not affect the UK’s ability to meet environmental targets, so it would not be appropriate for us to set it apart from other large, privately owned business facilities.

The Committee rightly highlighted the impact that additional noise from a larger airport could have on local communities. I very much recognise, as my colleagues do, that noise is a major concern. The airports national policy statement sets out a clear policy for addressing the scheme’s noise impacts. It makes it evident that the Government expect noise mitigation measures to limit and, where possible, reduce the impact of aircraft noise. In response to the Committee’s recommendations, we have improved the clarity of the NPS—for example, over the expectation that the scheme promoter will provide more predictable periods of relief from noise through a runway alternation programme.

The NPS also sets an expectation of a six and a half-hour scheduled night flight ban. I think that there was potentially some confusion in colleagues’ minds on this issue. We have not reneged on any claim that has been made. There is an important distinction to be made between respite and a ban. In many ways, the Government’s proposal goes beyond claims that were made by others previously, because it sets an expectation for a six and a half-hour scheduled night flight ban, in addition to other forms of respite, which may come, for example, from alternation of runways. Along with the Government’s expected ban, there is scope for additional periods of respite to be provided at night, which means that we expect some communities to receive up to eight hours of noise relief at night.

It is important to say that the noise mitigation measures that we would expect to accompany any expansion at Heathrow would be determined in consultation with local communities and relevant stakeholders. Of course, we now have in place a local community forum, designed to enable the closest possible discussion of these issues with local—

[Justine Greening]

Will the Minister give way again, just briefly?

[Jesse Norman]

I will of course, but I am running out of time already.

[Justine Greening]

Again, we have had a million consultations over the years. The problem is that we are never listened to.

[Jesse Norman]

I do not think that is true, if I may say so. It has already been shown that the Department and the Government’s position has moved in reaction to concerns expressed about this issue. That is why I have described the changes that we are making to predictable periods of relief from noise through a runway programme.

It has been suggested at different times in the debate by some that the Government are rushing headlong, pell-mell into a sudden decision, and by others that we have become immured and mired in consultation and delay. The truth is that we are making fairly steady and stately progress towards a set of decisions, which may go one way or the other, depending on the merits of the case, and we are doing so with previous Governments, certainly on the Labour side, having supported this proposal, so we are rather hoping that many Labour Members will continue to support it.

New technology is already making aircraft quieter. By the time a third runway is operational at Heathrow, we would expect airlines to be making much greater use of quieter, more efficient aircraft, which would also help reduce noise.

I want to respond to the Committee’s concerns about the potential effect of pollution on our air quality. Again, we have made changes. We have made the national policy statement clearer that delivering according to air quality obligations will provide protections for health and the environment. We have also made it very clear that the third runway will be allowed to go ahead only if it can be delivered in compliance with the UK’s air quality obligations. The environmental assessment and mitigations proposed by the airport will be very carefully scrutinised, I need hardly say, before any development consent is granted. Measures including a potential emissions-based access charge, the use of zero or low-emissions vehicles and an increase in public transport mode share use by passengers and employees would all contribute towards mitigating the impacts of an expanded airport.

I have touched already on community compensation. This is another issue that we take extremely seriously. On the issue of the compensation package for local communities, we share the Committee’s view that that is a fundamental component of the package of measures that accompany the north-west runway scheme. Heathrow Airport Holdings Ltd has committed to paying homeowners who will need to move considerably more than is required in statute—125% of market value should the developer secure development consent. It has also committed to an extensive programme of noise insulation for homes and schools. A community compensation fund will be developed by an applicant to mitigate still further any environmental impacts and, as I have suggested, a community engagement board has already been set up, with Rachel Cerfontyne appointed as the independent chair. We agree with the Committee that details of the proposals must be worked up through consultation with local communities.

Oral Answers to Questions

Debate between Justine Greening and Jesse Norman

Tuesday 8th February 2011 Commons Chamber

[Justine Greening]

It is hard not to point out to the hon. Gentleman that his party supported the patent box when it was in government. It is not just that policy that will support high-tech manufacturing. Our policies of reducing corporation tax year on year rather than having it go up, and of reducing national insurance and getting rid of the worst impacts of the jobs tax that was making it harder for companies to keep people employed, will support growth in the economy. His party simply has no idea how to start making that happen.

[Jesse Norman (Hereford and South Herefordshire) (Con)]

12. What his policy is on transparency in private finance initiative contracts.