Oral Answers to Questions

Naomi Long Excerpts

Tuesday 24th January 2012 Commons Chamber

[Miss Smith]

I certainly will join my hon. Friend in congratulating those firms. It is exactly through the private sector that we will find a more balanced recovery. I would also like to place on record my interest in the record numbers of apprenticeships in which such firms are participating, such as 440,000 more this year—up by half on the year before.

[Naomi Long (Belfast East) (Alliance)]

15. On what basis HM Revenue and Customs calculates surcharges levied for handling payments made by credit cards.

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

Her Majesty’s Revenue and Customs is able to levy a reasonable charge for the use of credit cards for payments. There are many other ways in which people can pay their tax bill without paying a surcharge. HMRC also flagged up quite early in the process how much it would cost to pay by credit card. HMRC adopts best practice, and that is why we have decided to extend these practices across business. We are launching a consultation paper later this year on banning unreasonable credit card surcharges.

[Naomi Long]

I thank the Minister for his answer. We know that the amount charged by different credit card companies varies depending on the transaction amount and the size of the institution receiving the money. Will he undertake to keep this issue under review to ensure that individuals pay only the charge that is levied by the company, and that there is no benefit to HMRC from its making additional charges?

[Mr Hoban]

The hon. Lady makes an important point. It is absolutely vital that HMRC looks carefully at the costs it incurs in processing credit card transactions and that it charges taxpayers only what are reasonable costs. We want that same approach to be adopted in the private sector as well, as that would bring huge benefit to consumers.

Autumn Statement

Naomi Long Excerpts

Tuesday 29th November 2011 Commons Chamber

[Mr Speaker]

Hmm, yes.

[Naomi Long (Belfast East) (Alliance)]

The Chancellor stressed the importance economically both of regional connectivity and infrastructure. Can he confirm whether the Northern Ireland Barnett consequentials of the infrastructure changes will be ring-fenced? Further, can he offer any good news on air passenger duty for those who rely entirely on regional flights for that connectivity?

[Mr Osborne]

It will be up to the devolved Administration to choose how to spend the money that is allocated to them, but of course as it is one-off money—being capital spending—they will need to think carefully about how they spend it. On aviation, the Department for Transport will set out an aviation strategy, but it is confirmed in today’s document that we were able to take the decision that saved the long-haul flight from Belfast to north America.

Air Passenger Duty

Naomi Long Excerpts

Thursday 20th October 2011 Commons Chamber

[Henry Smith]

I am grateful for that intervention. The holy grail of government is joined-up government, with all Departments and the Treasury working together. My right hon. Friend the Minister for the Cabinet Office and Paymaster General is doing a great job in trying to achieve that.

The World Economic Forum’s international tourism competitiveness report ranked the UK 134th out of 138 nations for air taxes, and we are beaten only in the amount we charge by the west African countries of Senegal, Ivory Coast, Mali and Chad. The chief executive of British Airways said:

“Aviation in the UK is the most undervalued and overtaxed industry in Britain. We want to play our full part in assisting Britain’s economic recovery, but we are held back by levels of tax on flying which are higher than anywhere else in the world”.

and added that the increases would cost BA an extra £100 million and put more pressure on ticket prices. At the recent launch of a new Air Asia X route from Kuala Lumpar to London Gatwick, its chief executive stated that it is commercially more difficult to operate from the UK than from France. He pointed out that 10% to 12% of its passengers flying from Paris to Kuala Lumpar are British nationals. That gives a sense of the shift that passengers are already starting to make.

[Naomi Long (Belfast East) (Alliance)]

We in Northern Ireland have an interest in airport duty. Does the hon. Gentleman agree that there is an irony that we, as island nations that have to use air transport to make those important international connections, are taxed so highly in comparison with many other regions? There is also a challenge in trying to join up what happens not just with Her Majesty’s Revenue and Customs and other Departments, but, particularly in terms of the growth of our economy, with the Department for Business, Innovation and Skills.

[Henry Smith]

The hon. Lady makes a very good point. I have been pleased to see that in the context of Ireland, between the north and the south, there has been some improvement. Her point about our being island nations and relying on trade—and therefore in this day and age on aviation—is extremely well made.

The chief executive of the Association of British Travel Agents has said:

“It is vital that the Government understands the damaging impact that APD is having on the tourism industry in the UK. We already pay the highest levels of aviation tax in the world, and if the Government goes ahead with its double-inflationary increase and levies”—

as will happen on 1 January with the European emissions trading scheme tax—

“on top of this…we will see another eye-watering increase in the tax burden on the industry and on holidaymakers”.

The CBI has also rightly highlighted the fact that aviation is a critical pillar of the UK economy. Crawley-based companies such as TUI Travel, which is perhaps better known in the domestic market as First Choice and Thomson Holidays, are world leaders in developing biofuels to mitigate their environmental impact. Indeed, I am delighted that just a couple of weeks ago, they started regular biofuelled flights. Virgin Atlantic, another local company, has invested in the very latest new aircraft with the highest environmental standards.

In addition to those quotes from the industry, I should like to outline some figures that clearly demonstrate how the UK’s aviation tax burden is significantly in excess of those of our nearest competitors. As I have said, we already charge by far the highest in Europe. To fly from the UK to a European destination, we charge £12 in APD, whereas Germany charges £7 and France charges just a single euro to travel within the EU. To travel from the UK to New York, we charge £60 in APD, whereas the Germans charge £22 and the French charge just €5. To travel from the UK to Sydney, Australia, we charge an APD rate of £85 at the moment, whereas Germany charges £39 and France charges just €5. I do not think that anyone can accuse the Germans of not being astute in economic or environmental policy.

If APD were to increase from next April, there would be a huge percentage increase in just six years. For example, a family of four travelling on holiday to Florida in economy class in 2006 paid £80 in APD, whereas they would currently pay £240. If the increase goes ahead, they would pay £260 in 2012, representing an increase of 225%. A business party of four travelling to Shanghai in premium economy in 2006 were charged £160 APD; currently they are charged £600 and in 2012, if the increase goes ahead, the charge will be £656, representing a percentage increase of 310%. My final example is that of a retired couple travelling to Australia to visit family, again in economy class. In 2006, they would have been charged £40 in APD, currently they would be charged £170 and in 2012, if the increase goes ahead, they would be charged £186, representing the biggest percentage increase of 365%.

Simplifying APD would benefit not only citizens of the UK but Her Majesty’s subjects in the overseas territories. For example, the Government of the British Virgin Islands are rightly concerned that, as currently structured, APD is charged at a higher level to travel there than to fly to the west coast of the United States because the system is based on where the capital of a country is. It should not be forgotten that there are five British overseas territories in the Caribbean, as well as the many other Commonwealth countries around the world.

Before I conclude I wish to refute one suggestion mooted recently, which is that London and south-east originating flights should pay an enhanced amount of APD compared with the rest of Great Britain. I am very much opposed to that proposal because it would be unfair, unnecessary, economically misguided and environmentally dubious. It is unfair because, as I have said, we already pay one of the highest duties in the world. Millions of people living in the south-east and London should not have to pay extra just to fly from their local airports. It is unnecessary because the proposed growth of regional airports between now and 2050 is significant.

The proposal is economically misguided because while proponents of the policy say that it would rebalance the UK economy by moving key business routes to regional airports, it misunderstands the fundamental economics of long-haul business routes and ignores the fact that London’s airports serve the whole British economy. Indeed, London is a global-class city and, with the south-east, a world-class region, connecting with and competing against the likes of southern California, the east coast cities of Japan and China, the greater Frankfurt area and the Ile de France among others. Finally, the proposal is environmentally dubious because it perversely risks increased carbon emissions if south-east passengers drive hundreds of miles to regional airports for cheaper flights. More indirect flights—for example, London Heathrow to Manchester; Manchester to New York—would result in more movements and more take-offs and landings.

In conclusion, I believe that if APD is increased further and not simplified we risk damaging growth by increasing the tax burden on families and by giving our European competitors an unfair advantage in a global market. Additionally, it could create an unintended, negative environmental impact when we are already more than off-setting our aviation carbon emissions, and that is before we join the European trading scheme in the new year. Indeed, the TaxPayers Alliance, using the Department for Transport’s own figures, has highlighted the fact that, following the APD increase in 2007, aviation more than covers the cost of its environmental impact by at least £100 million. It also points to research by the Economic and Social Research Institute which found that doubling APD back in 2007 might have actually increased emissions because it reduces the relative price difference between near and far holidays.

In welcoming the Minister to her position and congratulating her, I appeal to her and the Treasury to think again, for the sake of our economy and our hard-working families, about increasing the APD burden further still.

Car Insurance (Northern Ireland)

Naomi Long Excerpts

Wednesday 19th October 2011 Commons Chamber

[Ms Ritchie]

Thank you, Mr Deputy Speaker. I thank the hon. Gentleman for his rather long intervention. I none the less agree with him, and I will come to that point later in my speech.

The extent of the problem is stark. The Consumer Council report, “The Cost of Insurance in Northern Ireland”, published in March 2009, indicated that consumers in Northern Ireland were paying 84% more on average than those in the rest of the UK. Furthermore, five Northern Irish cities ranked among the top 10 most expensive areas in the UK. Relatively expensive car insurance premiums prevail throughout Northern Ireland.

[Naomi Long (Belfast East) (Alliance)]

I thank the hon. Lady for giving way, and I appreciate the fact that she has brought this matter to the Floor of the House. Does she agree that the OFT investigation is crucial, because although the Consumer Council report is useful in highlighting particular issues, it is flawed in a number of respects? For example, it compared median rather than best available prices in the UK. It also compared only products available on comparison websites, which is restrictive when we consider the wider available market.

[Ms Ritchie]

I thank the hon. Lady for her intervention. Like her, I believe that the OFT report is vital in making critical recommendations that I hope will result in the lowering of insurance premiums. I hope that the report has the teeth to deal with this difficult and vexatious issue.

According to evidence, car insurance premiums in Northern Ireland have increased by almost 73% in the past two years. The situation is even worse for younger drivers, whose premiums, according to research, have increased by 112%. Young people face severe difficulties in entering the job market, and the prohibitively high cost of motor insurance is yet another barrier to their finding work.

The average yearly car insurance premium in Northern Ireland is now £923.90, compared with the national average of £525. I am concerned that that, with the increasing cost of fuel, will force some people off the road altogether, or that it will lead to an increase in motorists driving illegally without insurance. I am sure the Minister agrees that we must ensure that that does not happen.

Those problems are compounded by the restricted range of companies offering premiums in Northern Ireland, which limits competition and drives up prices. I urge the Minister to address, and where possible to remove, any barriers to companies that wish to enter the market in Northern Ireland.

Two fundamental arguments are put forward to justify the high costs of motor insurance in Northern Ireland. The first argument is that Northern Ireland is a case apart, because its demographics and road layouts bring an increased risk of incidents on our roads, and the second is that the Northern Ireland legal system places a higher burden on insurers.

To begin with, the evidence that Northern Ireland has a very young population is greatly exaggerated. Indeed, we have a proportion of young people similar to that found in English regions such as London. Likewise, a lack of motorway coverage has been cited as a reason for increased premiums, because statistically those are the safest road type. However, maps show that Northern Ireland has a relatively consistent motorway density compared with regions in the UK and Europe. Moreover, some of the fundamental actuarial evidence regarding the number of accidents, claims and casualties on our highways weighs against any of the debatable factors regarding demographics or road layout.

Those facts must be kept at the forefront of our mind when considering the claimed justification for the increased cost of premiums. They are rising at a time when Northern Ireland is experiencing a decline in the number of road traffic accidents: 2010—the most recent year on record—saw the lowest number of road deaths since records began in 1931. Naturally, every death on our roads is a tragedy, but we must commend the work done to improve safety.

There are some basic facts that are hard to reconcile with rising insurance costs. The number of road traffic accidents reported to the police service has dropped over the past decade from nearly 40,000 per year in 2000 to about 30,000 per year in 2009. The number of compensation claims is decreasing, whereas in England and Wales the numbers are rising. More specifically, according to a National Audit Office report published at the beginning of the year, the number of claims reported to the compensation recovery unit fell by 23% in the decade up to 2009. In short, the trend is clear: although accidents and claims are decreasing, the cost of insurance is increasing. I ask the Minister to give detailed consideration to that fundamental point.

[Naomi Long]

I am grateful to the hon. Lady for giving way a second time. Does she accept that one of the factors cited was the higher compensation paid out in Northern Ireland, which was attributed largely to the fact that juries have been involved in such decisions for much longer than in England and Wales? Critically, however, compensation levels did not increase but insurance premiums did, so it cannot be argued that that was what led to increased premiums.

[Ms Ritchie]

I thank the hon. Lady for her useful intervention.

All those facts weigh heavily against any argument that the specific demographic or topographical factors in Northern Ireland justify the increasing costs of insurance, and are extremely difficult to relate to the draconian rise in the cost of insurance premiums.

It has also been suggested, by the Association of British Insurers and others, that the legal system in Northern Ireland imposes increased costs on insurers. However, when compared with what happens in England and Wales, many of the factors in Northern Ireland would be expected to act in the opposite direction. My right hon. Friend the Member for Blackburn rightly highlighted the impact of referral fees on insurance premiums in England. It must be noted that a statutory prohibition is in force against solicitors paying referral fees in Northern Ireland. Given that the payment of referral fees to claims management companies has frequently been cited as a significant contributory factor to increasing premiums in England, its absence would be expected to drive down the costs of insurance in Northern Ireland. However, that does not appear to be the case.

I am certainly not claiming that the system in operation is perfect. Indeed, although referral fees are prohibited for solicitors, other agents, such as brokers, credit hire companies and repair garages, may receive them. Although credit hire companies offer a useful service for non-blame drivers, they also raise the cost for insurers, and we must have firm regulations to remove the potential for the exploitation of accidents or those involved in collisions. The claims advice service is an important step in doing that, and should be commended. Another factor cited as a reason for increasing insurance prices in England is the practice of “no win, no fee”. Such a regime does not operate in Northern Ireland. Indeed, the fact that any claimant would have to invest their own money, or else find a solicitor willing to fund the costs, is a powerful disincentive against speculative claimants.

Arch Cru Compensation Scheme

Naomi Long Excerpts

Wednesday 19th October 2011 Westminster Hall

[Tom Greatrex]

I thank my hon. Friend for her intervention. She makes an important point about people being able to make the right decision when they are offered this payment deal, particularly given that it seems to bind in the Financial Ombudsman Service in a way that makes it impossible for it to take a case subsequently. My hon. Friend makes an important point.

[Naomi Long (Belfast East) (Alliance)]

On that point, one of the concerns raised by constituents who have come to me is that the compensation offer is conditional and precludes legal action against Capita being brought to court by any investor who accepts it. However, it leaves open the option of the investor pursuing the financial advisers, who were, as Members have rightly said, misled by the information provided to them. That seems a very unjust transfer of responsibility.

[Tom Greatrex]

The hon. Lady is exactly right. It is almost as though the deal that has been reached leaves the liability with people who have, as she said, been misled, with the result that they end up carrying the can, which would be very unfair. That is why the deal on the table is wholly inadequate, and I will go on to make a few points about that.

--- Later in debate ---

[Guy Opperman]

I totally endorse that point, and that is where the Government definitely have a role. They can use the inadequacies of the present case to highlight their intention to come down hard on those who mismanage investments as in this instance, to give investors confidence in other investments in the future. Sadly, that should have been done previously, and such scams and difficulties have been bubbling over for the past 20 years.

My constituent, Mr Ian Robinson, transferred his entire pension pot of £90,000 into Arch Cru on the advice of an independent financial adviser. He thought it was a sensible policy. In 2009, his funds were revalued down to about £55,000; they were then frozen; and the remaining capital was eroded over the next two years. He will be lucky to get 40% back under the compensation package. Another constituent, who wants to remain nameless, worked all his life and built up a business. He sold it and thought that he and his wife had a successful pension pot of several hundred thousand pounds. They put all of it—savings and pension—into Arch Cru. After the devastating effects of what happened, he and his wife have been living off a state pension and with the current offer of recompense they will be forced to downsize to enable them to live from any capital that is released. They will have lost hundreds of thousands of pounds, which they thought was securely invested to provide a gentle but secure return, and they will be lucky to be able to leave anything to their dependants. If my constituent agrees to the package at this stage, he will have less than half the compensation needed to put him and his wife back in the position they were in prior to their investment. In the current climate, we should support such hard-working people.

Much could be said about the dilatoriness of the process, because, as other hon. Members have mentioned, nothing has really happened since suspension in March 2009. I shall briefly discuss Capita. Others have spoken eloquently and forcefully about its inadequacy in its role. One constituent told me:

“This is not just a case of an investment that has underperformed due to the Global Financial Crisis but one where there are serious misgivings in relation to the management and governance of the funds”.

That is certainly how I see the matter—it is potentially a criminal investigation. Capita was paid as trustees to oversee the management of the funds, which we all agree it simply did not do. Therefore why is Capita not fully accountable for the extent of the losses of the people whose money it was managing? Clearly it is vicariously liable and has an obligation.

Hugh Aldous has prepared a report on Capita, and I recommend that anyone who has not taken on board the full level of ineptitude should read it. It is clear from the report, in which Hugh Aldous makes multiple observations, that the net asset values of several of the cells that were invested in were overstated at least from 2007 onwards. He reported that the condition of the physical assets was far worse than

“we reasonably expected and, in some cases, frankly appalling.”

It seems inexplicable that small investors should suffer so severely with an inadequate package.

Several hon. Members have spoken about the compensation package, and the Minister must address two points. Why on earth has a closed offer been made, when it is also time-limited? That is wrong. The Minister must assist hon. Members by giving the reason for that and telling us whether the Government will do anything about it. Everything would change if the Minister were to say that it is an interim offer. If it were an interim offer, so that the victims of the scam could receive the £54 million paid down in the usual way, with the right to continue to take civil action if they wanted to pursue matters further, I would say, “So be it.” However, to tell them that it is a time-limited £54 million offer and they can take it or leave it is wrong.

The FSA has supposedly been making great efforts to ensure that companies can meet their commitments when they fall down. There are regulations to protect consumers. The FSA is a publicly funded body. It exists to protect investors, and it has not done so in this case. It should surely have launched a proper investigation. My hon. Friend the Member for Vale of Glamorgan has called for a proper investigation, and I repeat that call. The FSA seems reluctant to admit that Capita has failed in its duty as an authorised corporate director.

[Naomi Long]

The hon. Gentleman is making some strong points. Does he agree that in this crisis it is the failure of the regulatory aspect that has caused the biggest ripples in public confidence? People took the FSA’s regulation of the funds and the advice they were given at face value, which created a level of confidence that did not match the confusion about what was happening within the fund. The FSA has not only failed people but caused a crisis in public confidence.

[Guy Opperman]

I endorse the hon. Lady’s comments about the authority.

There are tremendous financial consequences here, but there is also a human one. All hon. Members—I have been here for only 18 months, but others have been here for many years—will have gone through the pain, difficulty and correspondence in relation to Equitable Life. To be fair, this situation is not the same, but it is similar in that constituents have written to me because they have given up. One told me about a retired couple in ill health who have already given up, because

“they have not the energy or the mental resolve to fight this”.

The Minister had an extremely difficult job with Equitable Life, and I applaud the fact that he did the best he could in very difficult circumstances. This matter, however, is far simpler, and I hope that he takes on board the four key points. First, will the inquiry be a section 14 inquiry? Secondly, why is the offer a closed one? Thirdly, why is the offer deadlined and time-limited? Fourthly, does the Minister agree with a large proportion of hon. Members—I say this based on the comments that have been made during the past hour and 11 minutes—that Capita has a simple choice: either it gives 100% compensation, or it is left with no friends in this House?

Independent Banking Commission Report

Naomi Long Excerpts

Monday 12th September 2011 Commons Chamber

[Mr Osborne]

Again, I think we should trust the judgment of John Vickers and his commissioners. They explicitly considered whether to prescribe more closely than they have the scope of the ring fence—I am not talking about the height now, but the scope—and whether to include lending to larger corporates inside or outside it. They decided to leave that open to the banks. We will consider that advice and recommendation, but it strikes me as quite sensible to have some flexibility about the scope, if not necessarily the height, of the ring fence.

[Naomi Long (Belfast East) (Alliance)]

I welcome the Chancellor’s statement this afternoon. The availability of lending for small businesses and competition in personal banking are as significant to my constituents as they are to those of other Members. In Northern Ireland, however, both are impacted on directly by the Irish banks. What aspects of the report could inform the ongoing discussions with the Irish Government to ensure that those issues are effectively addressed for Northern Ireland businesses and individuals?

[Mr Osborne]

We are in near constant discussion with the Irish authorities about the Irish banks and their impact on the rest of the UK, including, of course, Northern Ireland. In the next few weeks, the UK will disburse the first part of its loan to Ireland, which formed part of the Bill that was passed through this House at the end of last year. Because we passed that Bill and made the loan to Ireland, we are around the table having that discussion all the time with the Irish authorities about the impact of the Irish banks on the rest of the UK. I do not think we would be at that table if we had not made that loan, and I assure the hon. Lady that both I and the Financial Secretary have been spending a huge amount of time on the Irish banks, and we are well aware of the impact on Northern Ireland. If she wants to talk to us about that at any time, we would be very willing to have that meeting.

Oral Answers to Questions

Naomi Long Excerpts

Tuesday 6th September 2011 Commons Chamber

[Mr Osborne]

Of course the benefit of having a credible economic policy and a credible fiscal policy is having low market interest rates. Greece today has one-year bond rates of 82% and Italy’s bond spreads have gone out in recent days. We are borrowing money at 2.3%, and that is, in part, because we have a credible economic policy. If we did not have plans to deal with the largest budget deficit in the G20, we would find ourselves in a similar position to Italy or Spain.

[Naomi Long (Belfast East) (Alliance)]

The Chancellor will be aware that air passenger duty has a particular impact in Northern Ireland, particularly as it places pressure on business and discourages tourism. What action does he intend to take, and when, to ensure that we can maintain our links, particularly our transatlantic ones?

[Mr Osborne]

I am very aware of the issue relating to the continental flight from Belfast to the eastern seaboard of the United States, and I have spoken to Northern Ireland’s First Minister and Deputy First Minister about it. I can see that there is a particular challenge because of the proximity of the airport in Dublin, and the British embassy in Washington has also been very active in dealing with the company in the United States. I can assure the hon. Lady that we are on the case.

Motoring Fuel Costs

Naomi Long Excerpts

Tuesday 14th June 2011 Westminster Hall

[Robert Halfon]

As so often in Westminster Hall, as I said last week, I find myself agreeing with the hon. Gentleman. That might form part of the commission’s inquiry. At the end of July, I plan to go in a truck to Europe, to see how truckers there manage to get all their fuel cheaply, while English truckers are paying far more. The hon. Gentleman makes an important point.

Returning to my constituency, we are a town held to ransom by petrol prices. Motorists are robbed of a tenth of their salary just to fill their petrol tank. Fuel poverty is defined as spending more than a tenth of income to stay warm. That is all about domestic homes, but what about spending a tenth of income just to drive to work, which is what motorists are doing? The issue is also one for welfare reform. I welcome the Government making great strides with universal credit, lower taxes for lower earners and the Work programme. Yet all those benefits could be wiped out by the rising cost of fuel. Every 1p increase in the pump price will cost the average Harlow motorist £13 a year. For someone on a low income, perhaps commuting from Harlow to Basildon, the actual cost would be much higher. Inflation soon adds up, and we must not let petrol prices become part of the poverty trap and deter people from getting off benefits and into work.

Nor should we forget rural constituencies. My hon. Friend the Member for Hexham (Guy Opperman), who cannot be here because of his recent operation, has campaigned for many years against the fuel poverty suffered by his constituents. He wrote to me yesterday:

“fuel is a necessity in a constituency of 1,000 square miles, not a luxury.”

Throughout the country we see the same tragedy.

[Naomi Long (Belfast East) (Alliance)]

I congratulate the hon. Gentleman on securing the debate. He mentioned specifically job creation and its importance in welfare reform. In a survey earlier this year, one of the issues the FSB picked up was that companies faced with rising fuel bills would stop creating jobs and might also look at laying people off. That has huge implications, in particular in Northern Ireland, where we have a higher proportion of small to medium-sized enterprises, as well as heavier reliance on fuel because all our freight, for example, is road-based.

[Robert Halfon]

I welcome the remarks of the hon. Lady. I am about to come on to the FSB, but she is so right in what she says. I am glad that there is so much consensus in the Chamber among all parties.

Banking

Naomi Long Excerpts

Wednesday 9th February 2011 Commons Chamber

[Mr Osborne]

I assure my hon. Friend that that issue has been at the heart of the discussions. As I have said, that is why we have put such an emphasis on getting a commitment to increased lending to small and medium-sized businesses. There will be a new code for banks, under which they will have to treat their customers much more fairly, be more reasonable and transparent about the terms that they offer, and engage with customers long before overdrafts and the like need to be renewed.

[Naomi Long (Belfast East) (Alliance)]

I thank the Chancellor for the reassurance he gave to the hon. Member for South Down (Ms Ritchie). As he knows, Northern Ireland has a very discrete banking sector, which has been heavily affected by the Irish banking crisis, as well as by the UK banking crisis. Will he ensure that businesses and individuals in Northern Ireland benefit from the announcement he has made today with regard to both lending and regulation?

[Mr Osborne]

As I said to the hon. Lady’s colleague from Northern Ireland, I am paying particular attention to the Northern Ireland economy, partly because of what has happened in the Republic of Ireland. I am also paying particular attention to the Northern Ireland banking system, because there is the potential for a knock-on effect from what has happened in southern Ireland. As I said, I am working closely with the Secretary of State for Northern Ireland on what we can do to stimulate growth in Northern Ireland. Finally, despite their questions, I welcome the support I have received from some Opposition parties in the House. That reflects on the fact that although the statement does not contain everything that people want, it is a positive step forward. It also shows how opportunistic the opposition of the former Labour Government is.

Oral Answers to Questions

Naomi Long Excerpts

Tuesday 8th February 2011 Commons Chamber

[Mr Osborne]

My hon. Friend makes an excellent point. I join him in congratulating the company on its announcement. Under the last Labour Government the share of the economy taken by manufacturing halved; under this Government we are seeing a manufacturing revival.

[Naomi Long (Belfast East) (Alliance)]

Further to his answer to the hon. Member for Ealing North (Stephen Pound), will the Chancellor please confirm for the House that what the Minister for Justice in Northern Ireland has actually requested is not additional funding, but simply that the Treasury stands by the negotiated financial agreement that led to the devolution of policing and justice in the first place?

[Mr Osborne]

As I said to the hon. Member for Ealing North, we are carefully considering the request. I am clear that security comes first. Of course the Treasury has to apply due diligence to any request from a Department or devolved authority, but she should take it from me that we put security first.