Exiting the EU: Businesses in Wales

Debate between Kirsten Oswald and Guto Bebb

Wednesday 14th December 2016 Westminster Hall

[Guto Bebb]

The hon. Gentleman asks an important question. I have to respond in the same way as some of the hon. Members who mentioned businesses in their constituency but indicated an unwillingness to name them. I was recently in discussion with a university in Wales that saw huge potential to increase its attractiveness to students from outside the European Union; however, it is not a case of either/or. It wants to attract an increasing number of students from outside the European Union, but it also wants to ensure that it keeps the markets that it has in the European Union. These discussions are wide-ranging, and it is fair to say that the responses that we are getting, even from the further and higher education sector, are not as negative as the hon. Gentleman implies.

[Kirsten Oswald]

It is interesting that the Minister has come to the subject of universities, which I mentioned. Does he care to elaborate on his suggestion that universities do not particularly see this as a negative, because that is contrary to the discussions that I have had with them? Also, will he talk about overseas students and the impact of his Government’s plans for overseas students on universities in Wales, Scotland and elsewhere?

[Guto Bebb]

The whole point of having consultations with universities is to understand their perspective. Their perspective is that, yes, they have concerns about elements of the decision to leave the European Union, but they are not entirely negative. I am not speaking about a single university; between myself and the Secretary of State, we have spoken to most of the higher education system in Wales since the decision to leave the European Union. We have listened to those concerns, but we are also hearing that they see opportunities. More than any sector, the higher education sector is aware that its success and ability to play a full part in the development of cutting-edge technologies, for example, is dependent not only on our membership of the European Union, but on our partnerships with all parts of the world. I argue that the doom and gloom of some people here, when it comes to us no longer being part and parcel of European projects supporting higher education, can be challenged through agreements with states such as Israel. Again, we need to be slightly more constructive when talking about the response.

Connaught Income Fund

Debate between Kirsten Oswald and Guto Bebb

Tuesday 12th January 2016 Commons Chamber

[Guto Bebb]

My hon. Friend has summarised my speech in a pithy intervention.

It is important to highlight that when the transfer of operator happened, the subsequent information memorandum issued by Blue Gate was virtually identical to the original information memorandum issued by Capita, and for a further 10 months, more or less, investors’ funds going into Connaught were still managed by Capita IRG Trustees Ltd, which handled investors’ money while Blue Gate waited to receive authority from the FSA to handle client funds.

The whole issue becomes even more concerning because in January 2011 a whistleblower—none other than the chief executive of Tiuta, George Patellis—contacted the FSA to make a principle 11 notification in relation to the misuse of fund moneys by Tiuta. In March 2011 George Patellis met Ian Conway from the FSA to highlight evidence of mismanagement and the fraudulent use of investor funds. He provided ample evidence to support his claims.

[Kirsten Oswald (East Renfrewshire) (SNP)]

Does the hon. Gentleman share my concern that, after five years, the regulatory authorities appear to have made little progress on securing justice for the 1,500 investors, including my constituent George Devon, who lost money in what should have been a secure investment fund? They have made even less progress on working out who to hold to account for the disappearance of more than £100 million. Will he join me in calling for a comprehensive review of the regulatory framework, which is supposed to protect small-scale investors but fails to do so?

[Guto Bebb]

I will join the hon. Lady in that call, and I agree entirely with her comments.

On 26 May 2011, three months after the whistleblower provided evidence of wrongdoing, the FSA finally published a note on its website stating that the fund should not be compared to a bank or building society account. That was remarkable, considering it had been provided with evidence of wrongdoing. In the light of that evidence, it is difficult not to argue that a stronger warning should have been provided to investors by the FSA.