Oral Answers to Questions

Mark Pawsey Excerpts

Tuesday 6th March 2012 Commons Chamber

[Danny Alexander]

Such decisions are, of course, for the Chancellor to announce on Budget day, but, as my hon. Friend will know, the coalition agreement commits this Government to real-terms increases in the personal allowance every year in order to reach the goal of a £10,000 tax allowance, which the Liberal Democrats set out in our election manifesto. As a result of the substantial steps we have already taken, there will be a further tax reduction of £126 for all basic rate taxpayers in this country from April this year.

[Mark Pawsey (Rugby) (Con)]

10. What fiscal steps he is taking to encourage job creation in the private sector.

[The Chancellor of the Exchequer (Mr George Osborne)]

We are making businesses more competitive by cutting business taxes, helping work pay by increasing the personal allowance and introducing universal credit, and helping unemployed people into work through our Work programme and work experience.

[Mark Pawsey]

As someone who owned and ran a business, I welcome the reductions in corporation tax and the small profits rate already announced by my right hon. Friend, but a further area of taxation is business rates, where although the reliefs for small companies are very helpful, many businesses currently face a significant increase. Can anything further be done to help businesses in this respect?

[Mr Osborne]

I will not pre-empt any Budget announcements, but I will say that we have extended small business rate relief to 2013. We announced that in November, and it will help more than half a million small businesses, and we have also introduced a deferral scheme to help larger businesses with their cash flow, so we are doing other things as well as reducing corporation tax—a further reduction in corporation tax is planned for April, of course—and cutting the small companies tax rate, which was due to go up under the previous Labour Government.

Autumn Statement

Mark Pawsey Excerpts

Tuesday 29th November 2011 Commons Chamber

[Mr Osborne]

We are doing all we can to keep our country safe in a debt storm. We need only look at the Italian bond auction today to see the market rates that Italy is paying. We are currently, in a debt crisis, borrowing money more cheaply than Germany. That represents a vote of confidence in the deficit plan of the United Kingdom.

[Mark Pawsey (Rugby) (Con)]

I thank the Chancellor for listening to the representations of energy-intensive industries, and I welcome the measures that he has announced. They will be examined closely by companies such as CEMEX, which is in my constituency. Can he give us an estimate of the number of UK jobs that will be saved as a result of his measures, both directly and in the supply chain?

[Mr Osborne]

We have not made an exact estimate of the number of jobs that will be saved, but I am certain that these measures will help to keep such industries in the United Kingdom. It is important that we do not price our industry out of the world market. That would do nothing to reduce our carbon emissions, but it would damage our economy. We have worked with the energy-intensive industries and the business organisations to develop our package, and I think that it achieves the right balance between ensuring that those industries remain competitive and meeting our international environmental obligations.

Fuel Prices

Mark Pawsey Excerpts

Tuesday 15th November 2011 Commons Chamber

[Mr Walker]

I completely agree with my hon. Friend. This is one great advantage of cutting fuel duty rather than cutting VAT, which Labour Members argue for.

[Mark Pawsey (Rugby) (Con)]

I would like to make the point that a lot of freight companies are filling up on the continent. If we reduced the amount of duty, particularly on diesel, they would be encouraged to fill up in the UK, which would bring additional revenue to the Exchequer.

[Mr Walker]

My hon. Friend brilliantly pre-empts my next point. I was going to say that most business users also use diesel, which, as my hon. Friend the Member for Romsey and Southampton North (Caroline Nokes) pointed out, is an important issue. One concern I particularly wanted to raise is the fact that diesel in this country is so much more expensive than anywhere else in Europe. I am told that this is not simply a matter of taxation as the rates of fuel duty are set equally for unleaded petrol and for diesel, but of refining capacity, which the hon. Member for Ynys Môn (Albert Owen), who is no longer in his place, also mentioned. Also relevant is the fact that North sea oil has traditionally been better suited for the production of unleaded petrol than for diesel. However, it does seem extraordinary that one can drive across most of Europe seeing prices for diesel consistently lower than those for unleaded, only to arrive in this country and find that there is a 7p differential in the other direction. In fact, we are one of the few countries that treats diesel and unleaded exactly the same for tax purposes, and many others, including France and Spain, tax diesel much less than we do.

Perhaps I should declare an interest at this point as the driver of a rather battered Y-registration diesel Golf with more than 150,000 miles on the clock, but my prime interest is that diesel tends to be the fuel of choice for business users and the freight and haulage industries. Its cost and the extent of taxation on it thus have a more direct impact on our economy and on prices in the shops than does unleaded petrol. Given the importance of diesel to business and the economy, will the Minister give special consideration to steps that could be taken to encourage the closure or reversal of that price differential, whether it be directly through fuel duty or indirectly through encouraging investment in refining capacity.

Like others, including my hon. Friend the Member for Wyre Forest (Mark Garnier), I am very concerned at the wide geographical price differentials within the UK. Although many have argued that this is a matter of rural sparsity and have put the case for a rural fuel derogation, which I accept, I want to put the case for urban centres such as Worcester that find themselves paying a higher price for fuel than their neighbours or competitors.

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[Mark Pawsey (Rugby) (Con)]

I congratulate my hon. Friend the Member for Harlow (Robert Halfon) on the assiduous campaign he has fought on this issue, which has generated massive interest across the Chamber in response to the great pressure on our constituents. I was pleased to add my name to the motion, as I recognise the impact of fuel prices on individuals, particularly those in rural communities such as the villages around my constituency, many of whom have to rely on their car and spend a substantial proportion of their income on fuel.

In common with my hon. Friend the Member for Congleton (Fiona Bruce), I want to concentrate my remarks on the impact on business—and particularly on small businesses—as a generator of growth in our economy, just as I did when we last debated the matter on 16 March. I will deal first with the issue raised by my hon. Friend the Member for Worcester (Mr Walker): the price gap in the UK between petrol and diesel, which is up to 8p a litre. The duty is, of course, the same; it is the higher cost of production that leads to a higher price. That is the reverse of the situation 10, 15 or 20 years ago. Frankly, as the gap widens, there is a disincentive for business to run more fuel-efficient vehicles powered by diesel. There is no reason for having the same rate of tax on fuel, and having a lower rate for diesel would greatly assist business.

The differential between the price of diesel in the UK in comparison with mainland Europe is also important, as my hon. Friend the Member for Nuneaton (Mr Jones) said. That presents a significant advantage to overseas competitors, particularly haulage businesses, many of which are based in my constituency in the middle of England. The Government are losing revenue as UK-based operators fill up their tanks on the continent, and there is evidence that they are specifying vehicles with larger fuel tanks for the purpose. The location and size of those tanks also raise safety issues, especially in view of the horrendous accident on the M5 only a few weeks ago.

In our last debate on this issue, I said that businesses needed certainty and stability in regard to the price of fuel. That is often their most important consideration as they negotiate the prices at which they sell to their customers. I used to run a business that used delivery vehicles to supply goods. We had 10 vans and 10 sales reps. The cost of fuel was a major budget consideration for that small business. Between January 2009 and January 2011, it increased by £1,000 a month before VAT—£12,000 a year. Most of those increased amounts cannot be recouped, because businesses are not able to raise their prices. Loss of profitability and the fear of generating loss have led to massive concern about the price of fuel.

[Mr Marcus Jones]

I am sure that my hon. Friend will acknowledge that the problem is even worse for small businesses that are not registered for VAT and therefore cannot reclaim it.

[Mark Pawsey]

I also note that, according to research conducted by the Federation of Small Businesses, one in 10 businesses says that if something is not done about fuel prices, it will need to lay off staff. A quarter say that a freeze on wages is attributable to the cost of fuel, 36% say that they will have to reduce investment in new products and services, and 78% say that their overall profitability will be in jeopardy. The situation would, of course, have been worse under Labour, which—as we have heard from Government Members on many occasions—introduced a fuel duty escalator involving seven increases. Had it not been for the action taken by the Government, fuel would now cost 6p more per litre.

I know from my career before I entered the House how important fuel prices are to the business sector. I hope that in his autumn statement the Chancellor will be able to give the necessary support to hard-pressed households and to businesses.

Private Finance Initiative

Mark Pawsey Excerpts

Thursday 23rd June 2011 Westminster Hall

[Mr Marcus Jones (Nuneaton) (Con)]

Thank you, Mrs Main, for allowing me to speak in an extremely important debate. I congratulate my hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman) and others on the Backbench Business Committee on securing this vital debate. It is a crucial issue that is of great interest to my constituents, and I shall focus on that constituency interest.

Hon. Members have given a very technical analysis of PFI, its failings and what we should possibly do about such arrangements. However, in very practical and tangible terms, I want to speak for my constituents and explain why this rebate for the PFI would be extremely beneficial to them. If I may put that into context, I will be talking about the huge PFI scheme at the University Hospitals Coventry and Warwickshire NHS Trust.

Let me give hon. Members the background. A large tertiary hospital on the edge of Coventry was built under the previous Government’s PFI regime. The hospital replaced the then Walsgrave hospital, where I was born in the early 1970s. The new incarnation of the Walsgrave, as we know it locally, is undoubtedly a great hospital. When I say that, I do not just mean great as in good, although it is an extremely good hospital, but great in terms of size, because it has 1,250 beds and 27 operating theatres. The hospital is a large fish in a small pond in terms of the Coventry and Warwickshire health economy.

Since the hospital started to operate in 2001, the cost of the PFI contract has been substantial, with more than 14% of the University Hospitals Coventry and Warwickshire NHS Trust budget now consumed by the PFI contract and the obligations under it. The main problem with the PFI contract is that the costs are pretty much fixed. Regardless of patient numbers, under the contract the trust must still pay over a long period for the buildings, repairs, cleaning and provision of support services. Should demand fall or patients decide to go to another hospital in the Coventry and Warwickshire health economy, inevitably those fixed costs remain and must be borne by the hospital.

[Mark Pawsey (Rugby) (Con)]

My neighbour and colleague is making a strong case about the impact of the UHCW in the health economy of Warwickshire, but my interest is my local hospital of St Cross in Rugby, which is part of the same trust. One of our big concerns is that, with such a large proportion of the health economy going into the PFI hospital, in times of budget pressure such as now, the bias will always be towards the PFI contract, which must be fulfilled and maintained, but that might be to the detriment of other hospitals locally and, in particular, those in the same trust.

[Mr Jones]

My hon. Friend, whose constituency neighbours mine, has hit the nail on the head.

In our situation, regardless of demand or whether the Coventry and Warwickshire PFI hospital wants to close a ward or to stop the activity associated with closing a ward, such as the cleaning or maintenance, the fixed costs must still be met. That is most detrimental, and it is a drain on the Warwickshire health economy.

Another concern relates to the primary care trust and the strategic health authority. That context is changing, but some of the people involved in those organisations were instrumental in the creation of the PFI hospital and, whatever happens, I suspect that they would not want to see the hospital—this landmark development in Coventry—fail. The concern is because, ever since the hospital was built—before the mortar between the bricks or the paint was dry—the local PCT, NHS Warwickshire, has been trying to reconfigure services. We immediately had an acute services review, which threatened services at my local district general hospital, the George Eliot, and to a greater extent at Rugby’s St Cross, as my hon. Friend the Member for Rugby has said. NHS Warwickshire paired St Cross up with the Coventry and Warwickshire trust which, really, subsumed it. Services were drained away from Rugby to the new PFI hospital in Coventry, regardless of whether people in Rugby wanted the choice of going to St Cross. If we do not get a grip on the situation soon, I fear that the same might happen in my constituency at the George Eliot.

That brings me to the crux of the argument made by my hon. Friend the Member for Hereford and South Herefordshire. I echo his concern about such huge beasts of projects, which are so expensive and we hear stories about, such as the £300 for changing a light bulb. They are real, tangible problems, and our constituents cannot understand why the previous Government signed the taxpayer up to such ridiculous commitments. Although the previous Government took on those contracts, I appreciate that the new Government cannot simply tear them up. Some difficulties might arise from how the contract was framed, in particular on the capital commitments. The companies that originally constructed and financed the hospitals have sold the debt on, and it might have been sold on again, so we would now find it difficult to pin down those people and to get some form of rebate.

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[Anne Marie Morris (Newton Abbot) (Con)]

I will endeavour to make my contribution brief. This has been a very valuable and worthwhile debate on a number of issues. We need to consider the PFI as quite a complex challenge. Although my hon. Friend the Minister is here to help us with some of the financial issues, it is a challenge not just for her but for her Cabinet colleagues, because it is not just the finances that need to be reviewed. There are issues of complexity that we need to deal with in trying to find a way forward. Those issues are not just about the way in which the contracts are currently structured. There is also an issue about cultural change, because much of what has happened has changed the way in which decisions are made and outcomes are delivered for patients in hospitals and children in schools. That is why, although I support the argument for a rebate, it is only part of the solution. It deals with the existing, financial challenge, but it does not deal with other issues. It is right that we should be looking for a different way to do things, but it is a very complicated challenge.

The PFI was always well intentioned as a concept. It was to deliver quality and it was to deliver projects on time and on budget. In many ways, it achieved that. We have 700 schools, hospitals, prisons and other infrastructure projects that would not exist or would not be in the pipeline but for this initiative. We have £67 billion-worth of expenditure signed off.

The problems fall into at least four categories. First, the risk was overestimated, in part because of the public sector’s inability to deal with a very complex negotiation, as has been said. The consequence was that the taxpayer was lumbered with a very large part of the bill. As has been said, the amount of £210 billion is outstanding. By contrast, the investor is doing extraordinarily well. A number of figures have been cited, and I will add to that list. An EU think-tank tells me that 154 schemes are delivering a 50% return. That is huge. Clearly, therefore, one matter that we must consider is how we simplify not only future contracts, but the existing ones. I believe that we must consider renegotiating not just a chunk of money, but some of the terms.

[Mark Pawsey]

Does my hon. Friend agree that a justification for a rebate arises from the effect of the spending review on those Departments whose budgets have been reduced? If the PFI element remains fixed within the budget, by definition the non-PFI element has to reduce by a greater proportion, so budgets that may have been reduced by 2% could end up being reduced by 4%. It is entirely appropriate that those who are making the sums of money that we have heard about should bear their share of the burden of getting our country’s finances into order.

[Anne Marie Morris]

I agree. My argument is that that is part of the problem, rather than the totality of the problem. My second request is that we find a way of delivering transparency and better management of the contracts. One hospital was charged £333 to change a light bulb. I dare say that that changes the hospital’s decision about whether it will change many light bulbs. One school was charged £300 just to install an electrical socket. How many times will the school install a socket on that basis? One Army official was charged £103 for a 1-inch Land Rover screw that actually cost just over £2. That is not the right way of doing things.

Fuel Prices and the Cost of Living

Mark Pawsey Excerpts

Wednesday 16th March 2011 Commons Chamber

[Mark Pawsey (Rugby) (Con)]

It is a pleasure to follow the hon. Member for Scunthorpe (Nic Dakin), but I am disappointed that he chose to repeat the remarks of Opposition Members on the attendance of Front Benchers in this debate. It is pretty reasonable for us to expect that they would be working hard on a most important Budget, which will be delivered in this Chamber in only a week’s time.

I want to concentrate on the effects of fuel costs on small businesses. The success of our small businesses will be crucial to our work in rebalancing our economy, achieving economic growth and clearing up the economic mess left behind by the Labour party. Certainty and stability in the price of fuel are critical for small businesses—in some cases, they are more important than the price itself, although small businesses suffered massively as a result of rising fuel prices implemented by the previous Government over the past few years. In 13 years, the duty increased from 36p to 57p a litre.

Let me give the example of a medium-sized business in my constituency, Rugby. It is a business that I know well, because I owned and ran it for 25 years before arriving in this place. With 10 vehicles—five delivery vans and five cars for representatives—we served customers around the midlands, and the cost of fuel was a major budget consideration for us. In November each year, I would set my budgets for the following year, and try to estimate the price of fuel over the coming year. In recent years, that became almost impossible. In just the past two years—between January 2009 and January 2011—fuel costs have increased by £1,000 a month. The price per litre went up from 98p to £1.29 in that period; it is now closer to £1.40. The business is now spending £3,000 a month on fuel instead of £2,000. That is £12,000 in additional annual costs attributable to fuel alone. That comes directly from the bottom line; it is a reduction in the profitability of the business, which means that there is less available to reinvest in the business.

As was alluded to earlier, there is evidence from the business community that some suppliers are using the increase in the cost of delivering goods as a reason for price increases to small businesses. That is detrimental to small business profits and is inflationary. When fuel costs change, there are significant implications for distribution costs. Small businesses suffer disproportionately, because they are often in a weaker negotiating position and are thus unable to recoup the shortfall from their customers.

Certainty of price is what small businesses need, so that they can plan. That is often more important to them than price in isolation. I am therefore very sympathetic to the fuel duty campaigns calling on the Government either to freeze fuel duty or to implement the fuel stabiliser. To me, the fuel stabiliser seems a responsible decision, and although I recognise the complexity involved, I support any measure that will decrease the burden on small business.

The motion calls for a reduction in VAT on road fuel to take it back to 17.5%. As the Economic Secretary to the Treasury reminded us, a separate rate of VAT, as well as being illegal under EU law, will have no impact whatever on small businesses, because most of them simply reclaim VAT. If the motion were accepted, it would, of course, lead to additional tax complication for small businesses and make it more difficult for them to prepare their paperwork.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

The hon. Gentleman makes an excellent case on small business and its financial concerns, but how does he think the price of fuel will affect the cost of running vehicles in the Home Office, the Royal Mail fleet, and the Department of Health?

[Mark Pawsey]

The point that I am making is that the most important thing in any organisation is the ability to budget accurately across the business. The stabiliser proposal will deal with that; a reduction in VAT simply will not have any effect on that at all.

It is my contention that Labour Members are to blame for the situation that we are in, because this January, the Government implemented a rise in fuel duty for which the previous Government had legislated; the previous Government raised fuel duty 12 times when in office, and they planned for six further rises to take place after the general election. Businesses are looking forward to seeing what measures the Chancellor will bring forward in the Budget in a week’s time to ease the burden on the important small business sector.

Treasury

Mark Pawsey Excerpts

Tuesday 21st December 2010 Commons Chamber

[Mark Pawsey (Rugby) (Con)]

May I extend my good wishes to you, Madam Deputy Speaker, and to all Members and staff?

It is a great pleasure to follow the hon. Member for Streatham (Mr Umunna), because I, too, wish to raise a matter relating to high street banks. I shall discuss the proposals to withdraw the ability to write cheques, and in referring to that issue my remarks will in part be the reflections of a new Member—perhaps appropriate for this time of year—and draw on my early experience in a new role.

In August, I received a letter from a constituent, Miss Patricia Keats, who wrote to tell me that she was 87 years old, and since the closure of her local post office had found it difficult to get hold of cash. With her pension paid directly into her bank account, she found it convenient to ask a friend to take out cash for her and then to use her cheque book to pay that person. In addition, Miss Keats told me how useful her cheque book is for paying people who help her at home, such as her chiropodist; and how useful it is, when she watches a disaster unfold on TV, such as in Haiti or in Pakistan, for sending a donation. So, she wrote that she has real concerns about the banks’ proposals.

I am afraid that when I received Miss Keats’s letter I did not respond as thoroughly as I might have. I replied, simply pointing out that the proposal is fairly distant; that it will not come in until 2018; and that alternatives are being considered. I regret my response: I did not consider the issue sufficiently thoroughly, take account of her personal circumstances and wishes or do as much as I should have done to represent her interests. I am pleased to have the opportunity to put that matter right by going into the issue in more detail today.

This is a matter for the Payments Council, the organisation that directs the strategy for UK payments. The industry set it up in 2007 to ensure that payment systems and services meet the needs of payment service providers, users and the wider economy. Last year, the council’s board decided to set a target date of 2018 for closing central cheque clearing.

Some 4 million cheques are still written every day, so there is still a large number although it fell by 12% between 2000 and 2008, leading retailers such as Tesco and Marks and Spencer to refuse to accept them in their stores. Many people will know from their everyday experience that cheque usage is falling as people make payments by other methods, such as direct debits and internet banking.

[Mr Bone]

My hon. Friend is making an excellent speech, but I have a member of staff who does not know how to write a cheque and never has. There seem to be two economies.

[Mark Pawsey]

My hon. Friend makes a fair point, but somebody in the older age group has drawn the issue to my attention, and I shall go on to mention how it affects not just those people but others.

It is true, none the less, that those most resisting change are older residents, such as Miss Keats, who often do not have internet access or are uncomfortable with the open-ended commitment of a direct debit, which involves a supplier, frequently a large, faceless corporation, being able to put its hand into their bank account.

I am myself of a generation that grew up with a cheque book, and I do not wish to see them go, despite having seen cheques used inappropriately; I am thinking about the idiot in the student union bar who, rather than taking out some cash, insists on paying for half a pint of bitter with a cheque, to the irritation of other customers and bar staff alike. It is clear that people generally do not want cheques to go. For settling an account with a provider of goods or services, sending a cheque is a simple and easy method of payment—not least because the cheque book stub is a convenient reminder of which bills have been paid.

Charities in particular do not want cheques to go; they fear that that would mean a decline in their incomes because many of their donors are nervous about other methods. Small businesses do not want them to go either, because it is easy to reconcile accounts when payments are made by cheque, often with invoice numbers written on the back.

[Justin Tomlinson]

I fully support that point about small businesses. As one who has spent many years reconciling accounts, I think that too often internet bank accounts do not show the full details, while it is always crystal clear who a cheque has come from.

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[Mark Pawsey]

Absolutely. I spent 25 years running a small business and I know that the information on the back of cheques is of great value.

I am pleased that the Government recognise the seriousness of the issue. I appreciate the recent ministerial letter that recognised people’s concerns. It acknowledged that no decision on closure will be taken before 2016 and that that would depend on suitable replacement methods having been established. I am also pleased that the Government welcome the Payments Council’s commitment to reassure cheque users that their interests will not be ignored. But it is not enough simply to say that 2018 is a long way off, and it is not helpful to tell people that a facility will be withdrawn in the future without telling them what the alternatives might be. Individuals, businesses and charities want certainty about what might be happening.

I hope that this afternoon I have put right a wrong in my response to Miss Keats and that I have done justice to the points that she raised by asking the Minister to go a little further than he has until now and respond to the final plea that Miss Keats made in her letter that he

“do what he can do to support the very many people who want and need to keep cheques.”

Independent Financial Advisers (Regulation)

Mark Pawsey Excerpts

Monday 29th November 2010 Commons Chamber

[Mark Garnier]

I think my hon. Friend’s constituent agrees with us all.

The IFA community is broadly in support of raising excellence in the profession, and many are opting to take qualification exams on their own initiative without the dead hand of the FSA pressing them to do so. Indeed, the website unbiased.co.uk lists IFAs by their qualifications, so the move towards improved excellence is already going ahead under its own steam. A significant number—possibly as many as a third—feel that their 20, 30 or 40 years of experience not only trumps any exams but covers a significant depth of knowledge in their chosen areas, which will surpass any exam requirements. In taking exams, they will also be tested on areas they choose not to specialise in. As I and many hon. Members have said, the FSA seems blind to their expertise. The FSA does not recognise that experience and is determined to put out of business any IFA who is reluctant to take their exams or to subject themselves to the FSA’s ill-thought-through in-house assessment.

[Mark Pawsey (Rugby) (Con)]

Does my hon. Friend agree that if experienced independent financial advisers are driven from the market, those who will lose out most will be those with the smallest amount of assets, who will not get the advice that they receive at present?

[Mark Garnier]

Absolutely. The other group of people who will lose out because of the removal of these grey-haired sage IFAs will be the younger ones. Who will mentor the young, aspiring and highly qualified but short on experience new trainee? The FSA has no answer.

Let me turn now to fees and commissions. The FSA is further proposing that from January 2013 consumers will no longer be able to choose how their adviser is remunerated.

Comprehensive Spending Review

Mark Pawsey Excerpts

Thursday 28th October 2010 Commons Chamber

[Mark Pawsey (Rugby) (Con)]

Eight days have passed since the Chancellor stood at the Dispatch Box and made it clear why it was necessary to take decisions that many on both sides of the Chamber find difficult. We have heard more today from the Chief Secretary to the Treasury about the scale of the problem and why reducing our massive Budget deficit should be the country’s primary concern. We simply cannot go on borrowing £1 in every £4 spent—paying £120 million every day in debt interest alone. We know that failure to take action would lead to our paying £4 billion more in debt interest alone by the next election. That money would go to foreign creditors and would help to pay for their schools and hospitals rather than being spent on ours.

We know that had Labour remained in government it would have cut spending, so the debate is about the pace of the cuts that are about to be made, not whether they should be made. That became clear to me in discussions that I held on Friday in my constituency with an organisation that gives a clue to its aims and objectives in its name—Rugby Against the Cuts. Its representatives came to see me on the premise that the Government should take no action to deal with the Budget deficit. After our discussions, however, I believe they accepted that some form of action might be necessary. The group issued a press release, which stated:

“Mark Pawsey listened as we outlined our fears, and said he would be happy to meet us again to monitor developments…at least our MP was prepared to listen…Although we did not seem to change his views, overall, the lobby was worth organizing”.

Opposition Members will be unsurprised at that last sentence.

I will maintain that dialogue because it is important. We have offered an honest opinion to the electorate, which is why in the past eight days my hon. Friends have not had massive postbags criticising the measures in the spending review—[Interruption.] Well, many of the proposals were contained in the Conservative party manifesto, so it is no surprise that we are taking the action that we are taking. We are bringing forward the date at which the state pension will begin to rise, stopping the most well-off children receiving child tax credits and cutting spending on trust funds.

Last week, in addition to meeting that protest group I took a survey on to the streets of my constituency. In a poll, 87% of the people to whom we spoke said they thought it right and fair that the Government cut their expenditure at this time. It is clear that from the outset our objectives should be to ensure that people are better off in work. A poll in The Sunday Times on 24 October showed that 57% supported cutting welfare benefits. I believe that the proposals on welfare spending show a new sense of realism. Despite Opposition Members’ claims that they are ideological, they are clearly right.

The Government are committed to a stimulus for business. As someone who ran a business for 25 years, I have every confidence that the private sector will rise to the challenge. We are taking steps to reduce the regulatory burden on business and to provide a stimulus, never more so than through the announcement today of the new local enterprise partnership in Coventry and Warwickshire, whose size will be manageable in contrast with the cumbersome Advantage West Midlands. I believe that the LEP will set out economic priorities for the area that I represent.

The Government are acting responsibly and are in touch. The attitude across the country was for me summed up by a gentleman called George Smith, whose daughter intends to go to university next year. He was talking about the additional costs that his family would have to bear to send their daughter to university, but he could have been talking about many aspects of our public services. In The Sunday Times of 17 October, he said:

“I’m philosophical about it. Everybody and his brother is going to have to start paying more for all sorts of things. Much as we may think it’s unjust and unfair, it’s really a long overdue day of reckoning.”

Independent Financial Advisers

Mark Pawsey Excerpts

Wednesday 20th October 2010 Westminster Hall

[Harriett Baldwin]

I thank my hon. Friend and neighbour. He is a distinguished practitioner and member of the Treasury Committee. I am very interested to hear about the evidence yesterday.

We should not underestimate the costs of mis-sales to consumers. The FSA’s cost-benefit analysis assesses the cost to consumers of the pensions mis-selling scandal at £45 million per annum. In reaction to such circumstances, the FSA has spent the past several years consulting on how to address the issues involved. I share its goal of improving consumers’ perception of the industry and access to high-quality investment advice.

[Mark Pawsey (Rugby) (Con)]

Does my hon. Friend agree that the new regulations will raise the bar in terms of the standard of advisers, which means that there will be fewer financial advisers in future and that individuals’ ability to seek advice will be restricted, not enhanced?

[Harriett Baldwin]

My hon. Friend raises an important point, and I will come to that.

The FSA has come up with proposals to address the issue. They are close to final, and the board is likely to take a decision in December. Under the current plans, the proposals will be implemented by the end of 2012. As they stand, the proposals are known as the retail distribution review. As colleagues have suggested, they raise real questions about the role of regulation and the laws of unintended, and indeed intended, consequences in terms of regulation.

Economic Affairs and Work and Pensions

Mark Pawsey Excerpts

Tuesday 8th June 2010 Commons Chamber

[Mark Pawsey (Rugby) (Con)]

It gives me great pleasure to follow the hon. Member for Dundee East (Stewart Hosie) and to be able to speak for the first time in this Chamber as the Member for the new seat of Rugby. I often have to explain to people that I represent a town, rather than a sport. As an enthusiastic former player, it seems appropriate to have joined today the all-party rugby union group. Rugby is unique as the only place to have given its name to an international sport. It already receives many overseas visitors, particularly from rugby-playing countries, who make their way to the close at Rugby school, where William Webb Ellis picked up the ball and ran. Much work has already taken place in the town to capitalise on our association with the game, and I look forward to a new visitor attraction in time for the 2015 world cup.

The seat of Rugby includes villages to the north and west of the town, including Binley Woods, where I grew up and attended primary school. It has since become famous as the location of Hyacinth Bucket’s bungalow in the sitcom “One Foot in the Grave”. The constituency also includes the village of Bulkington, which was familiar to the author George Eliot, who referred to it as Raveloe in her book, “Silas Marner”.

I should like to pay tribute to my hon. Friend the immediate past Member for Rugby, who is at my side and has been returned as the Member for Kenilworth and Southam (Jeremy Wright). Having made a very big impact here in his first term, he has now taken the sensible option of a safe seat.

Previous Members include Andy King and, before that, someone well known to me, since that person is my father—James Pawsey, who was first elected for Rugby in 1979. I know that it is not unusual for a son or a daughter to follow their father here, and there are many examples in the current intake. I join my hon. Friend the Member for Worcester (Mr Walker), who spoke just before me, as a son following a father into the same seat. My father still has an excellent reputation in Rugby as a hard-working constituency MP. Throughout the time that I was seeking to be elected, many potential constituents spoke to me about how much he has done for the people of Rugby. I have heard many similar tributes from people here since I arrived—colleagues and staff who remember his contributions, particularly in the field of education. Like my hon. Friend, I feel that I have a very tough act to follow.

I am a product of Rugby’s grammar school, which was founded by a locally born grocer, Lawrence Sheriff, who, when he established Rugby school, set aside a sum of money for the education of boys from the town. From an intake of 90 boys at that school in 1968, two of us sit here today; my former school friend and now my hon. Friend the Member for Warrington South (David Mowat), was also elected in May.

Rugby changed significantly in the 19th century with the coming of the railways, and our station is familiar to many; it is on the west coast line, with a journey time to London Euston of just 50 minutes. In Rugby, we welcome the Government’s commitment to new high-speed rail lines but are anxious to ensure that fast services will remain on the original network once the new lines are in use. Indeed, Rugby’s transport links are the most important feature of our town. Rugby is at the heart of the UK’s motorway network. That makes Rugby an attractive location for business in general, and for freight and logistics businesses in particular. Despite the current pressure on the public finances, we believe that it is vital to continue true investment in our network in order to continue to improve it.

Rugby has also had an impact in the field of communications through the Rugby radio site, the masts of which have for many years been visible from the M1. Almost all those masts have now been removed in preparation for a massive housing development, which will be the most important issue facing the town over the next 20 years.

Rugby has experienced major growth before. In the early 1900s, heavy engineering came into our town and Rugby became a major industrial centre. We have a history of producing gas and steam turbines at a company known as British Thomson-Houston, which went on to become GEC and AEI—now amalgamated to form Alstom, a leader in power generation. Rugby is also home to Converteam, a worldwide specialist in power conversion that is building electric engines for the new Queen Elizabeth class of aircraft carriers. Rugby had a pioneering role in other forms of propulsion. In 1937, Frank Whittle built the world’s first prototype jet engine in Rugby. I have a personal connection with Whittle’s work, because I established a small business in Rugby in a rented unit adjacent to where Whittle carried out his work.

I have spent 25 years starting, running, managing and building up a business, and I have a good understanding of the challenges that businesses face. We need to recognise more effectively those who create wealth and jobs. Small business is ready to make its contribution, but it needs a work force with the skills and the attitude to roll up their sleeves and play their part. Too often, regrettably, there is insufficient incentive for jobseekers to do that, and I welcome the changes in our welfare system that will put incentives to work firmly back in place. I make no apology for putting the case for manufacturing and for business, particularly small business, and I look forward to doing so in the House over the coming years, in addition to representing all the electors of Rugby, with whom I believe I have a special bond.