Oral Answers to Questions

Debate between Michael McCann and Mark Hoban

Monday 1st July 2013 Commons Chamber

[Mr Hoban]

My hon. Friend is absolutely right. Labour did not believe that the private sector would create the necessary jobs to offset public sector job losses, but over the past three years, for every job lost in the public sector, three were created in the private sector. Labour criticises that, but we should congratulate the sector.

[Mr Michael McCann (East Kilbride, Strathaven and Lesmahagow) (Lab)]

T2. If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[Mr McCann]

Judging by the evidence of my constituency surgeries, the testimony of other Members and the number of successful appeals, it appears that Atos cannot tell the difference between someone who is sick and someone who is not. Given that that is the company’s job, when is the Secretary of State going to sack Atos?

[The Minister of State, Department for Work and Pensions (Mr Mark Hoban)]

As I have said in earlier responses, we are continuing to build on the system that we inherited from the previous Government. We have also had the fourth independent review of the work capability assessment and our own independent review, and we are seeing that the proportion of people going into the support group has increased in recent years.

Banking (Responsibility and Reform)

Debate between Michael McCann and Mark Hoban

Tuesday 7th February 2012 Commons Chamber

[Mr Hoban]

My hon. Friend makes a very important point. For too long businesses have been dependent on banks for their finance. We need to broaden the range of sources of finance that is available to business. This model works well elsewhere in the world. There has clearly been a market failure here, and our business finance partnership is aimed at tackling that failure. There are people out there who are willing to bring forward ideas to enable more investment to go into small and medium-sized businesses.

[Mr Michael McCann (East Kilbride, Strathaven and Lesmahagow) (Lab)]

While we think about how to address these problems and encourage alternative forms of finance in the future, what will we do about the small businesses that are going bust now because they are not getting access to finance and do not have the time to go through what is a bureaucratic appeals process?

[Mr Hoban]

The challenge is to ensure that banks are ready to lend and have the resources to do so. Project Merlin has delivered that. It is a more ambitious programme of ensuring the flow of credit to the economy than the previous Government tried or the current Opposition have even thought about.

The credit easing schemes we have proposed are supported by businesses throughout the country, as well as by the CBI, the British Chambers of Commerce and the Federation of Small Businesses. These schemes, coupled with our reforms to the financial sector, will ensure that the UK banking sector continues to provide the fuel for a private sector recovery.

After the excesses of the last decade, it is clear that we can build a sustainable financial sector and a sound economy only by reforming the regulation and structure of banks. Yesterday the House held the Second Reading debate on the Financial Services Bill, at which the shadow Chancellor, the right hon. Member for Morley and Outwood (Ed Balls), found himself in the awkward position of being forced to defend the failed tripartite system of regulation that he designed. He did not strike the same contrite note that the shadow Business Secretary has struck today. The Bill debated last night abandons the dysfunctional tripartite system and returns micro and macro-prudential regulation to the Bank of England, making the Bank the single point of accountability for financial stability. It also creates a new and strong conduct regulator to promote competition and protect consumers. Through these changes, along with the Basel reforms, living wills and new resolution regimes, and the reforms to the structure of banking from the Vickers report, we are remedying what the Chancellor called

“the biggest failure of economic management and banking regulation in our country’s history.”—[Official Report, 6 February 2012; Vol. 540, c. 43.]

That failure was, of course, presided over by the Labour party.

We need to build a foundation for the sustainable flow of lending to households and businesses across the country, and we must take a lead in building a financial sector that is based on the principles of responsibility, prudence and sustainability. In fulfilling that commitment, we must act on bank remuneration in order to tackle excessive and irresponsible levels of pay.

Oral Answers to Questions

Debate between Michael McCann and Mark Hoban

Tuesday 16th November 2010 Commons Chamber

[The Financial Secretary to the Treasury (Mr Mark Hoban)]

My hon. Friend makes an important point and the FSA’s mortgage market review is seeking to learn some of the lessons from how the mortgage market was regulated before the financial crisis and some of the problems that that regulation created. What I think is important is that the FSA should consider very carefully the impact on home ownership and particularly on those people who are looking to move shortly.

[Mr Michael McCann (East Kilbride, Strathaven and Lesmahagow) (Lab)]

T8. May I give those on the Treasury Front Bench the opportunity to answer the question on child benefit that they failed to answer earlier? How do they justify taking child benefit off a single-earning family on £45,000 and allowing a family that earns £80,000 to retain child benefit? An answer this time would be appreciated.