Ukraine Sponsorship Scheme

Mark Harper Excerpts

Monday 14th March 2022 Commons Chamber

[Michael Gove]

The hon. Gentleman is absolutely right: the welcome that local authorities and people across Scotland showed to Syrians fleeing persecution, and the willingness they are showing to help Ukrainians fleeing persecution, is great. He is absolutely right that people in Argyll and island communities have already done that. We hope to allow the Scottish Government to be a super sponsor and allow them to work with local authorities in Scotland. That is what Scottish Government Ministers have proposed to us as the best way forward, and it seems sensible to me. We just need to try to make it work.

[Mr Mark Harper (Forest of Dean) (Con)]

I strongly welcome the scheme that my right hon. Friend set out, but may I urge him to ensure that safeguarding and checking measures remain proportionate? As Conservatives, we generally believe that people can make decisions for themselves. I agree that with unaccompanied children safeguarding is critical, but the state should not get in the way of the generous response of the British people. Let us ensure that the checks are proportionate to the risk. Let the British people respond in the way that they already have.

[Michael Gove]

I am very grateful to my right hon. Friend for his common-sense perspective, which I completely share.

Levelling Up

Mark Harper Excerpts

Tuesday 16th March 2021 Commons Chamber

[Eddie Hughes]

The hon. Lady has identified very important funding needs. The fund will tackle one element of the problems that we are seeking to address. As I set out, there will be about £600 billion of public sector investment funding over the next five years; through other funding opportunities, I am sure there will be the chance to tackle the concerns that she raised. I am delighted that she will be working with her local council to identify a priority bid for the levelling-up fund.

[Mr Mark Harper (Forest of Dean) (Con)]

The last award of funds to my constituency, from the Getting Building Fund last year, has already been worked on and constructed; a fantastic construction industry training centre will admit its first students next January. Therefore I welcome my constituency’s being a priority 1 area for the levelling-up fund. I am already working with my local authority—we had our first kick-off meeting last week—so will he confirm that bids that reflect genuine local need, supported by the local authority and the Member of Parliament, have the best chance of success in getting that funding to turn into real opportunities for our constituents?

[Eddie Hughes]

I thank my right hon. Friend for his question, and for being an exemplar of how an excellent local MP can not only bring funding to his constituency but see the project through to completion—a great example for us all to follow. I endorse the idea that through this scheme we need to identify quality local projects that will make a visible difference to local people in the constituency. That is why it is so important that MPs work with their local councils to prioritise such schemes and ensure maximum opportunity for success.

Draft Enterprise Act 2002 (EU Foreign Direct Investment) (Modifications) Regulations 2020

Mark Harper Excerpts

Wednesday 8th July 2020 General Committees

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

I beg to move,

That the Committee has considered the draft Enterprise Act 2002 (EU Foreign Direct Investment) (Modifications) Regulations 2020.

It is a pleasure to open the debate under your chairmanship, Mrs Miller. The draft instrument was laid before the House on 8 June. I will try to clearly explain the rationale behind it, but first let me turn quickly to foreign direct investment more broadly.

The UK has a proud and hard-won reputation as one of the most open economies in the world. We remain the top destination in Europe, and the third in the world, for foreign direct investment, with 58,000 new jobs created in the UK in 2018-19 through that inward investment.

Although most FDI does not raise concerns, it is vital that any transactions that could operate against the public interest should be scrutinised. Under the Enterprise Act 2002, the Secretary of State has powers to intervene in mergers that present public interest concerns. The Government will shortly bring forward the National Security and Investment Bill to further strengthen the UK’s ability to scrutinise investment into the UK. There will be the usual opportunities to debate the Bill once it is introduced.

The European Union also recognises the security risks that can, on occasion, be posed by foreign direct investment, and has responded by bringing forward a regulation that establishes a framework for the screening of foreign direct investment into the European Union. The draft instrument will make effective that regulation, which will come into force on 11 October. As Committee members will know, under the withdrawal agreement the UK is obliged to implement EU law during the transition period. Most of the regulation’s provisions will automatically have direct effect in the UK. I will briefly set out its purpose.

The regulation will create a mechanism that will allow the UK, member states and the European Commission to share information about investments with each other. Specifically, the EU regulation does three things. First, it requires member states and—for the duration of the transition period—the UK to provide notification of any FDI that is undergoing scrutiny. That will have no impact on us, because in the UK notifications of screening under the Enterprise Act are already published on gov.uk.

Secondly, the regulation allows the UK, member states and the European Commission to issue opinions and comments on investments that are being screened elsewhere in the EU, and to request information where their own security or public order might be affected. To be clear, while any opinions expressed might be considered, they will not affect the UK Government’s right to intervene in or make decisions on merger cases that we consider may raise national security concerns: our sovereign capability is not affected.

Thirdly, the regulation requires member states and the UK to share basic information about FDI that has not already been screened where it may affect another member state’s security or public order. The UK could similarly request information or issue opinions on investments occurring in EU member states if we felt that our security or public order might be affected. Member states and the UK are not required to share information on specific security or public order concerns.

The EU regulation will automatically become part of UK law on 11 October 2020. However, some measures in the regulation require changes to UK law to ensure that it can operate effectively in the UK. The draft instrument makes those changes. It will allow the Competition and Markets Authority, the CMA, to use its existing powers, set out in the Enterprise Act, for the purposes of regulation.

However, two changes to the Enterprise Act are being made. The first extends the CMA’s existing information-gathering powers and associated penalty regime. The CMA already gathers information for businesses, when the Secretary of State intervenes in a merger, by issuing a public interest intervention notice, or PIIN. However, the EU regulation allows information to be requested about FDI that is not undergoing screening—when a PIIN has not been issued. It is these cases for which the additional information-gathering powers are needed.

The CMA will be able to gather this information only when a member state or the European Commission has requested it on the basis that FDI into the UK might affect their own security or public order. The types of information that can be requested include the ownership structure of the foreign investor, the value of the investment and the date when the investment is planned to be or has been completed. Businesses already hold that information, so it will not be burdensome to provide. If, however, a business fails to comply with a request, penalties could be issued. The instrument extends the scope of the existing civil and criminal penalty regime available to the CMA, as set out in the Enterprise Act.

The second change that the instrument makes will allow the Secretary of State and the CMA to disclose information to the European Commission or member states where the Secretary of State wishes to provide comments on FDI in a member state. The Enterprise Act already allows the Secretary of State or CMA to provide information to the Commission or member states where that is required because of a Community obligation, but that would not be the case when we actively choose to provide comments on FDI in a member state, which is why the second change is needed.

[Mr Mark Harper (Forest of Dean) (Con)]

May I ask the Minister a question about that second point? I have been listening very carefully to what he said. The explanatory notes make it clear that these regulations will be revoked at the end of this year, when the transition period comes to an end. In the Bill that we will introduce, are we proposing to allow Ministers to continue sharing information with the European Union where they choose to do so in the cases that he set out, or will that come to an end when these regulations are revoked?

[Paul Scully]

I thank my right hon. Friend for his intervention. The regulations will be repealed as part of the wider European Union (Withdrawal Agreement) Act 2020. They do not interact with the Bill that we are introducing, but add further powers that can be used.

The UK and the EU have both stated that we intend to support ambitious, close and lasting co-operation on external threats. That co-operation should respect both sides’ strategic and security interests and respective legal orders. We are open to participation in security-facing EU programmes and instruments on a case-by-case basis.

--- Later in debate ---

[Paul Scully]

As I say, although we are obviously obliged to abide by EU law during the transition period, we do not believe it would be appropriate to remain part of the reciprocal information-sharing channel after the transition period has come to an end. As I say, when the National Security and Investment Bill is introduced, we will be able to debate that fully.

[Mr Harper]

May I clarify something? I think the right hon. Member for North Durham is asking a slightly different question about reciprocal obligations. My question was more straightforward. These regulations give the CMA a power that it does not currently have to share information that we wish to share.

All I was asking was this: in the future, when we are no longer obligated to share information with the EU, will Ministers have the legal power to share that information if they chose to? They will under these regulations, but once those are revoked will Ministers have the power, under the Bill that the Minister has talked about, to share information with the EU if they choose to do so? That is all I was asking. I did not go quite as far as the right hon. Gentleman was suggesting.

[Paul Scully]

I thank my right hon. Friend for that clarification. We already share a lot of this information on gov.uk, and it is not particularly burdensome on businesses to release the information we are looking for. Much of this work is in effect tidying up, because we have gone that little bit further in the Enterprise Act.

--- Later in debate ---

[Mr Harper]

I have one question and one point. I am conscious of your injunction, Mrs Miller, to stick to the subject. This is directly related to points that are made in the explanatory statement.

I disagree with the hon. Gentleman about the future framework—

[Mr Jones]

Right hon.

[Mr Harper]

The right hon. Gentleman. I disagree with him on the compulsory nature of the information sharing. I am perfectly happy with a co-operative framework. The point I was driving at—I think this is the substance of the regulations—is that in order for the CMA to share information, it has to have the power to share the information. If it shared the information, even if it wants to, that would be unlawful; it does not have the power to do that sharing.

My point, which I think is different from that of the right hon. Gentleman, is that I am perfectly relaxed that we are not able to compel European Union member states, post the transition period, to share information with us, because I am content that they should not be able to compel us to share information with them. I do, however, want to see a structure where we co-operate with them, so that where we choose to share information with them, we are empowered to do so. The regulations specifically address allowing us to share information.

My question to the Minister is about what is intended to come afterwards. Do we intend to replicate the ability for us to share information where we choose to do so? That is a different point from that made by the right hon. Gentleman, which, I think, is about some element of compulsion.

My second point is that the explanatory notes explicitly say that the intention is to revoke not just the instrument we are debating today but the retained version of the foreign direct investment regulations in their entirety at the end of the transition period. Paragraph 7.1 of the explanatory memorandum states that the FDI regulations do not

“affect the UK’s ability to screen investments into the UK”

because we will retain our own responsibility for national security. Once we have removed those FDI regulations, do we currently have domestic powers to do that screening, or is that what the new Bill is for?

That is an important question, because if we currently have powers and the new piece of legislation the Minister refers to is about strengthening or extending them, I am fairly relaxed about whether there is a gap before the Bill comes into force, because if we already have substantial powers and we are talking about beefing them up, I can live with there being a gap. If we revoke the FDI regulations on 31 December, however—and with them, our current ability to do screening for our own national security—the right hon. Member for North Durham is right to say that we would need the new legislation to come into force immediately upon their revocation or there would be a gap, not just in the sharing of information, but in our own national security. That is a point on which I differ from the right hon. Gentleman, but also one very specific question that pertains to points in the explanatory note.

Housing and Homes

Mark Harper Excerpts

Tuesday 15th May 2018 Commons Chamber

[James Brokenshire]

I will come to the point about leasehold that the hon. Lady highlights, but first I want to finish considering some of the issues in relation to tenancies.

Last month, the Department set up a database of rogue landlords and agents and introduced banning orders. That will make it easier for local authorities to act against rogue landlords and agents to protect tenants. We will shortly consult on options to support landlords to offer longer tenancies to those who want them.

Buyers, too, are getting a fairer deal under this Government. We are determined to make the process of buying a home easier, cheaper and less stressful. As part of that, we put out a call for evidence. That has helped us to identify some practical steps we can take to achieve this goal.

We are also cracking down on abusive practices in the leasehold market. We will legislate to ban the development of new build leasehold houses, except in exceptional circumstances. We will restrict ground rents in newly established leases of houses and flats to a peppercorn.

[Mr Mark Harper (Forest of Dean) (Con)]

I want to comment on the point about renters. We often hear that people are forced to move frequently because they do not have long tenancies. My right hon. Friend might be interested to know that the average length of a tenancy in the private sector is 4.3 years and the most common reason for its coming to an end is the tenant wanting it to.

[James Brokenshire]

I am grateful to my right hon. Friend for putting those facts on the record. However, all the reforms for buyers and renters are united by one aim: to improve fairness, standards and affordability across the board.

Housing, Planning and the Green Belt

Mark Harper Excerpts

Tuesday 6th February 2018 Commons Chamber

[Mr Robertson]

The hon. Gentleman makes an important point. I am hoping that the housing White Paper, to which I will return in a minute, will attempt to clarify matters. As he will be aware, a lot of planning applications are assessed against the five-year land supply, particularly on appeal, but there is no methodology for calculating that five-year land supply. That is another problem in the planning system that I hope the Government will be able to correct.

[Mr Mark Harper (Forest of Dean) (Con)]

I am grateful to my hon. Friend and constituency neighbour, with whom I share a local authority, for giving way. He is making a good point: this is a regional problem. Figures from the Office for National Statistics on household growth in Gloucestershire show that our local planning authorities are building, or planning to build, enough houses to cope with the population growth. There is a significant problem in London and the south-east, but it is not consistent across the UK. My hon. Friend makes that point very well.

[Mr Robertson]

I am grateful to my right hon. Friend and Gloucestershire neighbour. That is exactly the point that I was seeking to make.

Why are there so many proposals to build houses on the green belt, particularly in my area? In the joint core strategy that is being drawn up by the Tewkesbury, Cheltenham and Gloucester planning authorities, Tewkesbury is looking to cover the unmet need of Cheltenham and Gloucester. However, contrary to planning guidance, the green belt is being compromised to satisfy the undoubted duty to co-operate, and this is creating confusion.

Why is Tewkesbury Borough Council doing this? It is because it feels that it must, and I have some sympathy with its position when I read the details of the planning inspector’s report, which again illustrates anomalies in the planning guidance. The inspector states in her report:

“Taking full account of constraints and the outcomes of cross-border exploration, removal of land from the green belt is needed, so far as is justified, to contribute to housing provision and the five-year supply”.

She goes on to say:

“I find that the adverse impacts of removing land from the green belt would not significantly and demonstrably outweigh the benefits of contributing towards housing and other development needs”.

Here we see clear evidence of the confusion in the planning guidance with regard to protection of the green belt. The inspector is insisting on building on the green belt and on the floodplain to meet housing numbers, yet the planning guidance clearly states that unmet housing need is unlikely to outweigh harm to the green belt in importance. I am aware that local planning authorities have the right to change the designation of the green belt at the plan-making stage, but that is not the point. The point is that there is a contradictionin the planning guidance.

I am aware that the Government have introduced a White Paper to consider the housing crisis and the broken housing market, but having read through it, I do not think that it is likely to address the problems of the market or the inconsistencies, contradictions and confusions in the planning system. Nor do I think that it will restore a sense of democracy to the planning process. Indeed, the wishes of a significant proportion of my constituents have been completely disregarded in the outcome of this process. We often hear the Government referring to the importance of local decision making, but the existence of the Planning Inspectorate makes a mockery of that, and does not help us to provide the houses that we need.

--- Later in debate ---

[Mr Mark Harper (Forest of Dean) (Con)]

I am grateful for that news, Mr Deputy Speaker, as it means that I can expound my argument a little more fully than I had thought. I congratulate my constituency neighbour, my hon. Friend the Member for Tewkesbury (Mr Robertson), on securing the debate.

In the limited time I have—notwithstanding your generosity, Mr Deputy Speaker—I wish to cover three points. First, I do not think that we have a national housing crisis; we have a serious regional housing problem that is more severe in some parts of the country than others. Secondly, I shall say a little about housing finance, which my hon. Friend the Member for Tewkesbury touched on. Thirdly, I shall say a word or two on an issue to which one or two Members alluded: the need to spread economic growth and development more evenly throughout the country. Doing so would help to deliver housing, including affordable housing, in many parts of the country.

Many Members have commented about the planning system, but I think that it is doing its job properly in many parts of the country by delivering housing in line with the projected population increase. Under the plans that local authorities are putting in place in my area of Gloucestershire, we are projected to build housing in line with the growth in population. There are a number of other regions throughout the country where that is true, but it is not true in London, where we are massively under-building housing compared with the growth in population, as several colleagues have mentioned. There is also significant pressure in the south-east and east. Those are the parts of the country where the projected growth in population is significantly outstripping the housing that is being built, so that is where the Government need to focus their efforts to bring the housing market under control.

My point about population growth is supported by figures on housing affordability, which give us a good idea about whether we are balancing the supply and demand of housing. Unaffordability is not significantly higher in most of the country now than it was before the financial crash, but that is not true in London. In London, the ratio of median house price to median gross residence-based earnings is nearly 13:1, whereas the average for the rest of the country is about 7:1, so London is skewing the national figure and giving a misleading impression.

[Sir Paul Beresford]

I talked about the houses that were being built in Wandsworth, but I should have mentioned that thousands of the homes are specifically for low rent or for purchase at low cost. In fact, the focus is on those people whom my right hon. Friend is so concerned about.

--- Later in debate ---

[Mr Harper]

That proposal sounds sensible. I am not familiar with the detail, but given what my hon. Friend sets out, it sounds like the local authority is focusing on demand. We will need significantly more of that if we are to meet demand in London.

My hon. Friend the Member for Tewkesbury put his finger on it when he spoke about housing demand. Clearly, compared with the situation when I was younger, we are much tougher with the loans that people can take out. When we look at what happened to the financial system after the banks made unwise lending decisions, such practice is probably very sensible, but it does make it more difficult for younger people to purchase houses. I welcome what the Government have done on the finance side of the argument, and two things are particularly welcome. The Help to Buy equity loan scheme is helping a significant number of young people who can afford a mortgage to be able to finance their deposit. It is not true to say, as some people do, that that only deals with the demand side of the equation, because it is of course only used for buying new houses. If we look at how house builders operate, we see that they build houses as they sell them. If we make it possible for a first-time buyer to purchase a home through the Help to Buy equity loan scheme, the house builder will then build more houses on that estate, as I have seen clearly in my constituency. Such practice helps on the demand side, which in turn generates housing supply.

I also welcome the introduction of the lifetime individual savings account, which enables younger people to save for a pension or a home, but I have one policy suggestion for the Minister. I am very supportive of our auto-enrolment policy to ensure that everybody saves for a pension, so will he consider whether we could apply auto-enrolment to lifetime ISAs? A young person going into the labour market would then find that their savings and their employer’s contributions would go into a lifetime ISA—at least that would be an option—so that the money could be used to fund either a pension or a home. If someone is a homeowner when they retire, they will not need such a significant pension, because they will not be paying rent on the home that they own. I think that that sensible proposal might make younger people keener to save for a deposit, because they would find it more affordable, so I urge the Minister to consider the suggestion.

I am grateful that the Government have said so much recently about the northern powerhouse. Given the location of my constituency and that of my hon. Friend the Member for Tewkesbury, I also welcome what the Secretary of State for Wales did with the Severn growth summit to encourage the development of what we might call a western powerhouse to create another centre of gravity for developing economic growth in Wales and the west country. It seems to me that one of the real problems is that we will not deal with the housing crisis simply by building more homes. London, for example, has high levels of immigration—23% of Londoners are non-UK born residents, and 156,000 migrants moved to London in 2016. Having listened to colleagues’ concerns about excessive house building in London, I argue that we cannot build our way out of the problem. A longer- term solution is to generate progress in the northern powerhouse—in transport infrastructure and development in that part of the country—and then generate development in what I might call the western powerhouse in the west of the country and Wales. We could also look at things such as the Cambridge-Milton Keynes-Oxford growth corridor, so that we actually see economic development spread more equitably across the United Kingdom. That would mean that rather than feeling the pressure to move to London, or to get a job or create a new business there, young people in many parts of the country would feel able to stay in their home towns and cities, or indeed to move to Manchester and the great cities of the north. That will happen if we create a powerhouse that is globally competitive, as London is.

[Toby Perkins]

I am much happier with where the right hon. Gentleman is finishing his speech than I was with his position six or seven minutes ago. It seems that London has doubled in size during my lifetime, but the major cities of the north have hardly changed. If the message that the Government get today is that we need continually to expand the size of London, I agree entirely that we will not build our way out of this problem, as we will just continue to feed that demand. The solution has to be investment in infrastructure and skills all around the country, not just focused on London.

[Mr Harper]

I am glad that I have cheered up the hon. Gentleman as my remarks have developed, and I hope that I have had that effect on at least one or two other colleagues. He is right that that is the answer. There is a regional housing problem in the United Kingdom. House prices in London and its surrounding areas are massively out of kilter with the rest of the country, and we can deal with some of that by building houses. We do need to increase the density of house building in London, so I welcomed what the Government said yesterday about building upwards, and having slightly increased housing densities and slightly higher rise properties—not massive, but perhaps with more storeys than a traditional two-storey property—but we also need to spread economic growth across the country.

People with housing challenges who live in London should be as supportive of investment in the northern powerhouse and other parts of the country—and in creating a great, globally competitive city in the north—as people who live in the north. Such investment would result in us sharing economic growth more equitably across the country. That is how we deal with the housing challenges that we face more fairly and equitably, and it would also help the whole country’s economic growth and make us more globally competitive.