Oral Answers to Questions

Debate between Nadhim Zahawi and Mark Hoban

Monday 5th November 2012 Commons Chamber

[Mr Hoban]

As I said in answer to earlier questions, we are monitoring the effect of our policies. We are ensuring that the work capability assessment is fit for purpose and that is why we asked Professor Harrington to carry out a third review to ensure that the process is right and fair. The hon. Lady should also remember that the work capability assessment is an assessment of people’s ability to work, not a diagnostic test.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

Will the Minister confirm that all Atos doctors, nurses and physiotherapists are fully trained and registered with their relevant professional body?

[Mr Hoban]

My hon. Friend is absolutely right. All Atos health professionals are properly qualified and they get additional training to help them undertake the work capability assessment.

Royal Bank of Scotland (FSA Report)

Debate between Nadhim Zahawi and Mark Hoban

Monday 12th December 2011 Commons Chamber

[Mr Hoban]

The hon. Gentleman makes an important point about the credit situation in Northern Ireland, and I know that the hon. Member for East Antrim (Sammy Wilson) pays close attention to it. We need to ensure that banks are sufficiently well capitalised to enable them to lend to businesses. One of the things that the hon. Gentleman may have noticed from last week’s report from the European Banking Authority is that no UK banks required additional capital, because they are already well capitalised and should be in a position to lend, as was demonstrated by the third quarter Project Merlin figures.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

This report is a damning indictment of the decisions taken by the previous Government, so it is regrettable that the shadow Chancellor could not be here to apologise in person to the House and to the country. Does the Minister agree that the something-for-nothing culture allowed to fester under the previous Government is something that this Government will not allow and that they will examine how to shift the dynamic in boards in systemically important businesses so that non-execs are able to challenge powerful CEOs and hold them to account?

[Mr Hoban]

My hon. Friend makes an important point, because there was a culture, as documented in the report, that meant that directors on the board of RBS did not challenge the CEO sufficiently robustly. That needs to change. We also need to ensure that the incentive arrangements for directors are robust. Under the previous regime, bonuses could be paid out in cash straight away. Over the past couple of years, tougher rules have been put in place to defer bonuses, to make sure that they are paid in shares and to claw back bonuses where there has been failure. That is a tough regime in place and it should make sure that the incentives of directors are in line with those of shareholders.

Eurozone (Contingency Plans)

Debate between Nadhim Zahawi and Mark Hoban

Monday 20th June 2011 Commons Chamber

[Mr Hoban]

The hon. Gentleman is right to say that German and French banks have a greater exposure to the Greek sovereign debt than the UK banks do. The French exposure is, I think, four times that of the UK, while the German banking sector’s exposure is about five times ours. That is why it is important that, as we go through the process of stress testing European banks, we look very carefully at the level of capital that our banks hold to ensure that they are in a position to withstand shocks and thus to support and sustain the economy.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

The hon. Member for Birmingham, Edgbaston (Ms Stuart) attacks this Government’s VAT policy and, by implication, the deficit reduction policy. Does not what is happening in the eurozone absolutely serve as a timely reminder that we have to attack the deficit because that is how this country will maintain low interest rates?

[Mr Hoban]

My hon. Friend is absolutely right. It was clear in the reaction to last week’s statement by the shadow Chancellor that everyone thought his plan lacked sense and would have undermined the recovery in this country by putting interest rates at risk and forcing up the interest costs of businesses and families. We have taken the tough decisions to get the economy right; the markets have demonstrated through the rates at which firms and businesses can borrow that they have confidence in our plans.

European Summit

Debate between Nadhim Zahawi and Mark Hoban

Thursday 24th March 2011 Commons Chamber

[Mr Hoban]

My hon. Friend is absolutely right. The decision taken by the previous Chancellor meant that we became part of the ESFM, and that is why the liability exists today. My hon. Friend is absolutely spot on: we have taken difficult decisions in this country. This Government have decided to tackle the deficit that Labour left behind, and we have a clear plan to do it. The Opposition have no ideas. Under a Labour Government, this country would be running out of steam.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

The events last night in Portugal bring into sharp focus why it is important to maintain the confidence of the markets. Is the Minister glad that this Prime Minister did not attend the meeting of the 17 eurozone countries, because the last Prime Minister attended and gave away our rebate?

[Mr Hoban]

Certainly, the previous Government very rarely showed any backbone in dealing with our European partners on the rebate or other matters. This Government stand up for Britain’s interests when it comes to the debate in Europe. We have done that on the rebate, on the budget and on this mechanism.

Equitable Life (Payments) Bill

Debate between Nadhim Zahawi and Mark Hoban

Wednesday 10th November 2010 Commons Chamber

[Nadhim Zahawi]

Is it not precisely the point that, rather than being an open-ended compensation scheme, the scheme relates to malpractice?

[Mr Hoban]

My hon. Friend is absolutely right. Our obligation is to compensate people for regulatory failure by the Government when they were the regulator of Equitable Life. The scheme is not an open-ended compensation scheme. It is very focused, and that was the ombudsman’s recommendation. Her locus in this matter is a consequence of the Government having acted as the regulator for Equitable Life during the period in question.

Let me explain to the Committee and to the hon. Member for Leeds North East (Mr Hamilton), who raised the question, why 1 September 1992 is a logical, not arbitrary, date. The ombudsman indicated in her report that there were problems with the regulatory returns for 1991, and that those could influence policyholder behaviour. However, they could not have come to the attention of policyholders, and prospective policyholders, before they were submitted at the end of June 1992. No policyholder would have been aware of that regulatory failure until the returns had been published. It is unlikely that those returns would have come to anyone’s attention prior to 1 September 1992. I stress that the date is not arbitrary, but a consequence of the ombudsman’s findings and how they impact on what policyholders would have been aware of. Policyholders would not have been aware of the regulatory failure until the autumn of 1992.

--- Later in debate ---

[Nadhim Zahawi]

I will test the Financial Secretary’s arithmetic a little further. Has he worked out what that advantage is over and above the £1.5 billion?

[Mr Hoban]

My hon. Friend makes an interesting point. It is difficult to calculate that because, as he will recognise, the tax status of Equitable Life policyholders varies. Some pay no tax, some pay tax at the 20p rate, some pay tax at the 40p rate, and some may even pay tax at the 50p rate. The value will depend on their tax status, and we do not have sufficient access to taxpayers’ records to be able to match Equitable Life policyholders with their tax records, so we cannot calculate the benefit. However, he will appreciate that it could provide a significant benefit to some policyholders, and I hope that they will recognise that when they receive their payments. We have sought to be as generous as possible in the tax and benefits treatment for that purpose.

Equitable Life (Payments) Bill

Debate between Nadhim Zahawi and Mark Hoban

Tuesday 14th September 2010 Commons Chamber

[Mr Hoban]

Indeed; my hon. Friend makes an important point. I would like to say two things in response to her. First, any compensation has to be fair to both the policyholders and the taxpayers who will foot the bill. No one else will foot the bill—no one involved, such as the previous management of Equitable Life, will pick up the tab. The taxpayer will foot the bill. We need to make sure that compensation is fair for the taxpayer and policyholders.

Secondly, my hon. Friend is right to highlight the issue of how we ensure that there is confidence for investors and savers in insurance and long-term saving in the future. That is one of the reasons why my right hon. Friend the Chancellor announced in June that we are going to reform financial regulation and set up a new consumer protection markets authority. That will strengthen the regulatory regime in this country.

We also need to make sure that we help improve financial capability for savers, so that they can understand some of the issues around the products that they take out. That is why we have proposed an annual financial health check, which will help savers understand some of those issues.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

As we have heard, many of us have signed the Equitable Members Action Group pledge. There is a wide gap between what Sir John Chadwick and the ombudsman are saying. Does the Minister agree that it is our duty to bridge that gap in a satisfactory way? Otherwise, all the good will that he has achieved in the past few weeks will be spent and the victims of Equitable Life will end up feeling hard done by.

[Mr Hoban]

I do not wish to repeat myself, but the important point is to honour the pledge that we all made and also to make sure that the settlement is fair to policyholders and taxpayers and consistent with all the recommendations that the ombudsman made.

Equitable Life

Debate between Nadhim Zahawi and Mark Hoban

Thursday 22nd July 2010 Commons Chamber

[Mr Hoban]

As I said, the process for deciding on the maximum compensation that is payable will conclude at the spending review, and we will publish the results on 20 October. I encourage the hon. Gentleman’s constituents to write sooner rather than later in that process. There are a range of views on that number and people will have their opinions on whether it is appropriate, but of course, we must set the overall position in the context of what the public purse can afford.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

We have heard a non-apology from the shadow Chief Secretary for the previous Government’s obfuscation. Will the Minister write to the Independent Parliamentary Standards Authority to ask for a special communications allowance for Labour Members, so that they can write and apologise to the families of the 30,000 people who have died and the 1.5 million policyholders who have had to wait 10 years?