European Union Referendum Bill

Debate between Nia Griffith and Pat McFadden

Tuesday 9th June 2015 Commons Chamber

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

It is a pleasure to follow the hon. Member for Boston and Skegness (Matt Warman), whom I congratulate on a truly excellent maiden speech. Indeed, I congratulate all hon. Members who have made their maiden speeches today—my hon. Friends the Members for Ellesmere Port and Neston (Justin Madders) and for Ilford North (Wes Streeting), the hon. Members for Sutton and Cheam (Paul Scully), for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), for Havant (Alan Mak), for Fermanagh and South Tyrone (Tom Elliott) and for Torbay (Kevin Foster), my hon. Friend the Member for Halifax (Holly Lynch) and the hon. Members for North Devon (Peter Heaton-Jones), for Wealden (Nusrat Ghani) and for Glasgow South (Stewart McDonald), the part of Glasgow where I grew up.

This debate has raised issues about sovereignty and co-operation that have reverberated through the House for decades. The Bill puts before the British people one of the most important questions in a generation: should the United Kingdom remain a member of the European Union? The answer to that question will impact on our trading relationship, our economy, jobs, exports and our place in the world.

Since we joined the European Union many years ago, British foreign policy has had two key pillars: the first is exercising a leading role in Europe; and the second is being the principal ally of the United States. As we were reminded by the comments of the President of the United States this week, leaving the EU would have an impact on not just one, but both of those pillars.

At root, this debate is about how to maximise Britain’s opportunities and influence in the world. We are offered two alternative visions. On the one hand, there is a vision that this is best done alone, unencumbered by the rules that membership of the European Union entails. On the other hand, there is a belief that the challenges we face in the world are best faced up to in concert with others, whether about global trade, responding to climate change, the regulation of cross-border flows of people, money and ideas, or many other issues. This debate is therefore about power and influence, as well as about rules, and it is about how to maximise British power in an interconnected world.

The Prime Minister has set out a strategy for the renegotiation of our relationship with the European Union. He has not set out in full detail what he is asking for; he has talked about the issue of ever-closer union, migration and benefits, and the rights of non-eurozone countries. At the beginning of the debate, the Foreign Secretary said that he felt it would be unwise for the Government to display its full negotiating hand. Even as we debate the Bill, we do not yet know exactly what the Government are asking for.

[Nia Griffith (Llanelli) (Lab)]

Does my right hon. Friend agree that it would be very unwise for the Prime Minister to raise false hopes about things like the free movement of people, and that he has undermined his negotiating position by saying that, whatever the outcome, he will recommend a yes vote?

[Mr McFadden]

I understand the point that my hon. Friend makes. I believe that the reason the Prime Minister has not outlined his full negotiating position is the problem, which we have seen in this debate, of how it will go down with many members of his own party.

Almost before the Prime Minister has begun the process and before the Bill has even had its Second Reading in this House, a new group has been established on the Conservative Benches, anticipating the failure of his strategy. The hon. Member for Wycombe (Mr Baker), who spoke in the debate and who chairs the new Conservatives for Britain group, said at the weekend:

“We wish David Cameron success”

in his negotiation. At first glance, that looks like warm backing, but when one realises that the benchmark for success that has been set by the group is an individual parliamentary veto over all EU matters, one can see where this is heading.

Interest Rate Swap Derivatives

Debate between Nia Griffith and Pat McFadden

Thursday 24th October 2013 Commons Chamber

[Nia Griffith (Llanelli) (Lab)]

Thank you, Madam Deputy Speaker, for allowing me the opportunity to speak in this very important debate. I congratulate the hon. Member for Aberconwy (Guto Bebb) on the work he has done over the years and on bringing the matter to the House’s attention through this debate.

This issue affected successful businesses that were trying to expand and help create more jobs in the local economy. Some of the businesses that have visited me were successful and had excellent plans for expansion. The really sad thing is that during their negotiations to change or expand their loans, it was often the case, as my hon. Friend the Member for Alyn and Deeside (Mark Tami) has said, that they were told right at the very last minute that, unless they accepted this clause, the whole thing would be shelved and they would lose all the transactions and work they were about to undertake. That was significant for them, because it meant having to say yes or no to a very important loan.

I think that such businesses are intrinsically fearful of going to the banks, which is a real problem. The terms and conditions for small businesses have changed so much over the past few years that they are fearful that, if they explain their difficulties to a bank, they will suddenly be told that their terms and conditions for a loan will be changed again. That is a real disincentive. The key thing to remember is that these are people who genuinely are trying to do the right thing, but who are fearful—perhaps ashamed—because they did not know exactly what was going on in the first place, even though, as my right hon. Friend the Member for Wolverhampton South East (Mr McFadden) has said, the people who sold them the scheme were incentivised to do so in an underhand way. Often they would not make it at all clear to the businesses exactly what they were entering into. We need to redouble our efforts and look in particular at why there are so many delays, because every delay means businesses raking up yet more debt.

[Mr McFadden]

On the sales culture, what does my hon. Friend have to say about the evidence that the Parliamentary Commission on Banking Standards received from the trade unions representing bank staff that said that, sometimes, if branch staff did not meet their sales targets, they would be taken aside, given special management and pressurised to sell more products over the next month or two in order to meet the targets on which their bonuses were based?

[Nia Griffith]

My right hon. Friend makes a valid point. I have met people who were put in that situation and who ended up leaving the bank because they found it so difficult and uncomfortable working in that sort of culture. That does not help small businesses, which want a decent banking system from which they can get decent advice and the loans they need.

The worry is that the Financial Conduct Authority and the banks are not doing things as speedily as they might and that there will be a distinct delay. We are all aware that the agreement was that an independent reviewer would look at each case and that that process would be overseen by the FSA. My hon. Friends the Members for Nottingham East (Chris Leslie) and for Chesterfield (Toby Perkins) wrote to the Chancellor over a year ago outlining what we wanted to happen. When the Financial Secretary sums up, will he tell us what progress has been made?

We want a clear message that there will be no adverse effect for people if they tell their bank that they think they may have been victims of this particular mis-selling. We also want a moratorium on the foreclosure of affected businesses by their banks. People are really worried that, if they start looking at the issue in detail and open the box, they might be forced to reschedule their loans in an unmanageable way and that they eventually might be foreclosed on by their banks. The Chancellor and the Business Secretary need to send a much stronger message to the FCA about how we want the banks to work.

As many Members have said, we want the quickest resolution possible, but time limits also need to be looked at. The problem is that businesses that signed up to these agreements back in 2006 and 2007 are now reaching the six-year limit, and they will find themselves in considerable difficulties if they do not get redress through the scheme and end up going to court. We need to look at the way in which complaints are handled and the time limit that is being allowed. Perhaps there could be movement on that issue.

In summary, this issue needs urgent attention. We need a much speedier resolution and people need to be treated properly and courteously by their banks. They should not have to be fearful of loans being rescheduled or of being thrown out of the frying pan into the fire, which is their real worry. Speed is of the essence, because these businesses provide jobs in our communities and if they go under, it could mean not one lost job, but many job losses. I urge the Financial Secretary to say what more the Government can do to put pressure on the FCA and the banks to ensure a speedy resolution.