Oral Answers to Questions

Nick Smith Excerpts

Tuesday 6th March 2012 Commons Chamber

[Mr Osborne]

I am afraid that my hon. Friend will have to wait for the Budget to see what we propose to do across the board, but last week we demonstrated that we are prepared to take decisive and swift action where we find unacceptable tax avoidance—by a bank in that case, which we felt was incompatible with the code of practice that we asked the banks to sign and which they have signed. I hope that he and his constituents take it as a signal of our seriousness about tackling tax avoidance and, indeed, tax evasion.

[Nick Smith (Blaenau Gwent) (Lab)]

Much work has been done to secure a private sector-led infrastructure project in Blaenau Gwent. The developers say that it could create sustainable jobs for over 10,000 people. Given that the Chancellor has already announced 100% capital allowances in six English enterprise zones, when will he be able to offer similar assistance to the Welsh enterprise zones?

[The Chief Secretary to the Treasury (Danny Alexander)]

We are in discussions with the Welsh Assembly Government about their proposals for enterprise zones in Wales, including the possibility of applying within them the capital allowances regime that the hon. Gentleman describes, and we will make an announcement shortly.

Tax Avoidance (Public Servants)

Nick Smith Excerpts

Thursday 2nd February 2012 Commons Chamber

[Danny Alexander]

I have made clear the answer to that question throughout my statement. I am responsible for signing off the salary level for appointments over £142,500, and I discharged that responsibility in this case.

[Nick Smith (Blaenau Gwent) (Lab)]

Yesterday’s Financial Times reported: “Treasury beset by exodus of top staff”. Officials have also reported that the Treasury’s staff turnover rate is now “higher than McDonald’s”. Can the Chief Secretary to the Treasury ensure that there will be sufficient firepower at the Treasury to thoroughly scrutinise tax avoidance across Government, and did the Minister for Universities and Science, the right hon. Member for Havant (Mr Willetts) agree to this arrangement?

[Danny Alexander]

It is precisely for the reason that the hon. Gentleman suggests that, in the spending review, we announced an additional £900 million for Her Majesty’s Revenue and Customs to enable it to focus attention specifically on tax avoidance and tax evasion. I very much hope that he welcomes that decision.

Fuel Prices

Nick Smith Excerpts

Tuesday 15th November 2011 Commons Chamber

[Graeme Morrice]

I certainly agree with my hon. Friend that the public are expecting more, and we are not going to see any action unless the Government do something about this imminently.

[Nick Smith (Blaenau Gwent) (Lab)]

Filling up a commercial van costs £15 more now than it did last year. In January, I asked the Prime Minister about help for hauliers who are struggling with their fuel bills and he told me that the Government were looking at a discount for haulage firms. So far there has been little action on that. Does my hon. Friend agree that it is vital to support our truckers at this time?

[Graeme Morrice]

I entirely agree with my hon. Friend. Immediate action needs to be taken to ensure that our hauliers, and our commercial and transport businesses, are supported in this regard.

--- Later in debate ---

[Andrew Griffiths]

I am sorry, but the hon. Lady’s argument would have more strength if her party had done something to cut fuel duty when it was in power.

In the few minutes that I have left, I will raise an issue of particular importance to my constituents.

[Nick Smith]

Will the hon. Gentleman give way?

--- Later in debate ---

[Rosie Cooper (West Lancashire) (Lab)]

More than 100,000 people have added their names to an e-petition, and they and many millions more want to know whether the Government are prepared to listen to them and take the necessary action to ease the burden on hard-working families and businesses and, indeed, on our struggling economy. Out of that desire for action, and to support people in my constituency, I added my name to the amendment tabled by my hon. Friend the Member for St Helens North (Mr Watts) that called on the Government to reverse their VAT increase and, in doing so,

“cut 3p off a litre of petrol”.

[Nick Smith]

Very shortly, the Chancellor will give his autumn statement, so does my hon. Friend agree that that is a terrific opportunity for the Government to signal a temporary cut in VAT that will both help drivers and boost our economy?

[Rosie Cooper]

I do indeed, because the general public are simply not interested in any more words, any more knockabout, or any more “he said, she said”. They have signed up in their thousands for action to reduce the cost of fuel and its impact on families and businesses. Study after study shows that transport is integral to an individual’s ability to access employment opportunities and to take part in social and cultural activities. For many people, access to transport is the difference between social exclusion and social inclusion. I could give examples from my West Lancashire constituency that illustrate that the cost of fuel has a significant impact on people, whether they live in urban or rural areas.

The sixties town of Skelmersdale was designed with the car as king. There is no railway station or pavement system to allow people to walk across town, and public transport services are limited. That means that residents rely on their car to get to work and to get around. In many cases, workers are forced to use taxis to travel to work, and if fuel costs increase, residents in those hard-pressed areas must decide whether travelling to work is financially viable.

Oral Answers to Questions

Nick Smith Excerpts

Tuesday 1st November 2011 Commons Chamber

[Mr Gauke]

We looked at auto-enrolment but one of the difficulties was the fact that it would have been years before we could have put it fully in place and we wanted to move quickly to have the scheme in operation. It is important that we highlight the scheme and make sure that publicity is available and that businesses are aware of it. The businesses that I have met that have taken up the scheme are very appreciative of it and it helps them in those difficult first few months.

[Nick Smith (Blaenau Gwent) (Lab)]

10. What assessment he has made of the level of economic growth in (a) the UK and (b) other EU members states in the last 12 months.

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

Eurostat publishes GDP growth data on all EU member states. These data show the UK economy growing in the most recent three quarters. The IMF’s latest forecast shows the UK economy growing this year, and growing faster than the economies of France, Germany and Italy next year.

[Nick Smith]

The Times says today that the Government’s plans for growth are “piecemeal” and their implementation “patchy”. Given that long-term youth unemployment is up by 60%, do we not need a proper programme for jobs?

[Mr Hoban]

The hon. Gentleman will realise that the biggest increase in youth unemployment in recent years took place when his party was in government. This Government have put in place the long-term foundations to tackle unemployment and raise growth across the UK.

Eurozone Crisis

Nick Smith Excerpts

Thursday 27th October 2011 Commons Chamber

[Mr Osborne]

Yes, I think that I can agree with my hon. Friend.

[Nick Smith (Blaenau Gwent) (Lab)]

Can the Chancellor update us on the situation regarding Cypriot banks, with their many customers in the UK and their tie-in to the Greek economy?

[Mr Osborne]

We keep under close surveillance not only British banks but the branches of Cypriot banks and the subsidiaries of other banks operating here in the UK. So we are closely monitoring the Cypriot banks, as we do with the other eurozone banks in Britain.

Summer Adjournment

Nick Smith Excerpts

Tuesday 19th July 2011 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab)]

I am pleased to have the opportunity to speak on the critical issue of public health. This time I want to look at the importance of exercise to promote health and well-being. Like many people, I have been alarmed at the rising levels of obesity in the UK and its associated diseases. Treatment of chronic conditions now takes two thirds of the health budget.

The problem is complex. The chair of Public Health Wales, Sir Mansel Aylward, believes people have lost their sense of belonging—once so evident in the south Wales valleys when heavy industries, coal and steel thrived. So he has called for local communities to be made formidable again—a bold ambition.

The latest figures for Wales show that one in three children are overweight. The costs of obesity are huge. If you include the wider cost of days lost from work and out-of-work benefits, they nudge £8 billion. Given the complexity of the problem, we need a much stronger regulatory and policy toolbox. Only 25% of children are getting the recommended 60 to 90 minutes of daily exercise outside school. Nothing can be more fun, or better exercise, than taking a young child to the park. So it is important that we invest in play for young children, and veto charges for playground entry.

Encouraging youngsters to keep active can take patience, good humour and a tailored delivery. Teenage girls sometimes feel that sport at school is a “boy thing”, so I applaud the BBC for its recent coverage of the women’s football world cup. But if young women do prefer dance, martial arts or yoga, they should be timetabled and encouraged. Swimming is a great way to exercise for all ages, all sizes and both sexes. I therefore regret the coalition’s removal of free swimming for under-16s and over-60s—a Labour Olympic legacy initiative.

Buzz Bikes in Blaina, in my constituency, was founded by teenage boys hanging around on their bikes. They received money from the Prince’s Trust, which helped them to set up an outdoor cycling club, and now they run a small shop, and repair and hire out bikes too. Funding was given not to improve the boys’ health, but rather to keep them out of trouble, but it has been a great boost to their physical health and self-esteem.

Finally, I would like to comment on the need for the elderly to keep active. In my area up and down the country, bowling is a popular pastime enjoyed by all ages. It is a source of physical, social and mental activity. It makes for better neighbourhoods, and opportunities to play should be increased, not jeopardised. I understand that the Government’s new obesity strategy should be published soon, and I hope that it will be the subject of a full parliamentary debate. If people of all ages are to become and keep active it is critical that local infrastructure, and play and leisure facilities, be maintained, and that charges be kept low. Many people cannot afford a gym subscription to keep fit, and investing in projects with longer term dividends is always difficult. Nevertheless, if we do not do it the cost to the NHS could be overwhelming.

Amendment of the Law

Nick Smith Excerpts

Thursday 24th March 2011 Commons Chamber

[Vince Cable]

I am not going to take any more interventions.

I return to the issue of fairness. When we first came into office, the major attack from the Opposition was that we were going to hit the poorest hardest. When it became clear that we were producing policies to protect the state pension, increase child tax credits, give preferential treatment to low-paid workers in the public sector and lift low-paid workers out of tax, attention shifted to the so-called “squeezed middle”, which has been variously defined to encompass 90% of the population.

The truth of the situation is that as a result of the financial crash and the recession that followed, Britain is a significantly poorer country than we were several years ago, so living standards have been squeezed. As the Governor of the Bank of England said,

“the real consequences of this crisis are only now beginning to be felt.”

What we have done in the Budget is take concrete action on fuel duty and on lifting the thresholds at which low earners pay tax. I shall dwell on that point a little—

[Nick Smith (Blaenau Gwent) (Lab)]

rose—

[Vince Cable]

Let me finish this point. One genuine philosophical difference we have with the Opposition is on how best to help those on low and modest pay. The Opposition believe in using targeted means-tested benefits. By contrast, we believe that the best way of doing this is by lifting low earners out of tax—880,000 on 1 April and 260,000 more next year. In this way, we not only lift them out of tax but reinforce the incentive to work and to save alongside the welfare reforms. Other taxpayers received £200 in cash last year and will get £126 more next year. We believe that in tough times, we should let taxpayers—especially the low-paid—keep more of their own money, rather than taking it off them and giving some back through complex means-tested benefits.

The test of the Budget will not be the response of the political world or this debate. It will be the response of the business community, which has to invest for recovery. It is worth reviewing what the business community has said about the Budget as it has often been critical of Budgets in the past. The British Chamber of Commerce said:

“Despite tight fiscal conditions we are encouraged that the Chancellor has prioritised business growth and private sector expansion alongside deficit reduction”.

The Engineering Employers Federation—the manufacturers —commented:

“The Growth Review has now started to deliver tangible progress in removing the barriers to growth investment and job creation in the UK”.

And the CBI concluded:

“This budget will help businesses grow and create jobs”.

The Government recognise that the road back to balanced, sustainable recovery will be painful and difficult, but we are on the right track. As the head of the OECD put it, we must “stick with it”.

Crown Currency Exchange

Nick Smith Excerpts

Tuesday 7th December 2010 Commons Chamber

[Mr Hoban]

It is not a matter for the ombudsman—it is for the administrator to decide what further actions are needed. As I said, the problem is that the nature of this business was such that it fell outside the regulatory perimeters. It is not covered by the Financial Ombudsman Service or the financial services compensation scheme, so there is a distinction between this case and the one to which the hon. Gentleman refers.

[Nick Smith (Blaenau Gwent) (Lab)]

Will the Minister give way?

[Mr Hoban]

I should like to make some progress, as there are important points that I want to make by the time I finish in seven minutes’ time.

I want to reassure hon. Members that I am anxious to protect customers and that we should learn lessons from this. I would point out, however, that there are 1,480 businesses operating as bureaux de change in this country, the vast majority of which are retail outlets dealing with customers face to face. The majority of these firms are not taking payment in advance or entering into forward currency contracts. They do not expose their customers to the kind of risks that Crown appears to have done.

[Nick Smith]

Will the Minister give way?

[Mr Hoban]

No, I am going to continue.

The regulation of these businesses, including capital requirements, would impose costs on them and on their customers, so we must be sure that the benefits of regulation outweigh the cost to consumers. I assure hon. Members that we are looking at the other companies to see if any are operating in the same way as Crown. We have not yet identified any, although the investigation is still ongoing. I undertake that the Government will seek to learn the lessons from Crown’s failure, once we have all the facts, and take whatever action is appropriate.

--- Later in debate ---

[Mr Hoban]

The hon. Lady makes an important point, but the reality is that this activity falls outside the regulatory perimeter of the FSA. The reason these businesses are registered with the FSA is that when the payments services directive was introduced, there had to be somewhere for these businesses to be registered, so the decision was taken to register them with the FSA. That decision was taken not by this Government, but by the previous Government. The hon. Lady is right that that situation leads to some confusion for consumers. The reality is that such businesses were not regulated by the FSA. The same applies to the other 1,500 bureaux de change that operate under this model.

[Nick Smith]

I thank the Minister for giving way. Given the scale of the issue with 13,000 people having been affected, will the Minister tell us more about the role of Barclays bank?

[Mr Hoban]

Barclays had a limited relationship with Crown. It did not lend money to Crown, but simply provided it with a bank account. It raised a number of questions with Crown, but the answers gave no cause for concern. It acted simply as Crown’s bank and had no engagement in the business.

Economic Affairs and Work and Pensions

Nick Smith Excerpts

Tuesday 8th June 2010 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab)]

Thank you, Mr Deputy Speaker, for letting me speak in the House for the first time. I would like to say well done to the previous speakers, my hon. Friend the Member for Stretford and Urmston (Kate Green) and the hon. Member for Bromsgrove (Sajid Javid). Both made excellent contributions.

Today I want to talk about three things: some of my predecessors from Blaenau Gwent, my constituency in south Wales; what a visionary place it is; and why the constituency needs a fair deal from the Government, to provide the economic growth that our people deserve.

It is often said that we stand on the shoulders of giants. If you are the MP for Blaenau Gwent, that is definitely the case. It was one of my predecessors, Nye Bevan, the former Labour MP for Ebbw Vale, who set up our national health service. Michael Foot also represented the constituency. Just before he died, I told Michael that I would do my very best to win the constituency back for Labour at the general election. I am proud to have fulfilled that promise. I will do my best to continue the Welsh Labour tradition of Nye and Michael, to serve in my own way with communities for whom they did so much. I also pay tribute to my immediate predecessor in this place, Dai Davies. Mr Davies is a strong trade unionist and a long-standing advocate for modern, high-quality apprenticeships.

I am honoured to be the MP for a wonderful valleys constituency such as Blaenau Gwent. We are Welsh radicals who put our values into action. I was born in Cardiff, and my family are long-standing valleys people who worked in coal and steel. Tredegar, the valleys town where I grew up and went to school, is the cradle of the national health service. The Tredegar Medical Aid Society was Nye’s model for the health service. In 1948 he said:

“All I am doing is extending to the entire population of Britain the benefits we had in Tredegar for a generation or more.”

His politics were based on the vision of local men and women—a combination of radical debate and a determination to run things themselves, and provide better services for local people.

Blaenau Gwent also played a vital role in the development of British democracy. It was from the villages and towns of north Gwent that the Chartists marched on Newport in 1831.

Blaenau Gwent is a proud constituency. While not rich in money terms, we have a very rich environment and culture. Our choirs and town bands have won national awards down the years; in a few weeks, the acclaimed blues festival takes place in beautiful Abertillery park; and now, in the digital age, film making has taken off too. Indeed, a recently produced local film called “A Little Bit of Tom Jones” won best picture at the BAFTA Cymru awards. I recommend it. This July, we will celebrate this creative contribution when the Welsh National Eisteddfod comes to Ebbw Vale.

Over the past 13 years the Labour Government did an excellent job rebuilding the local economy and infrastructure in Blaenau Gwent. Transport links have been improved, with the new train line from Cardiff to Ebbw Vale. The foundations of a new, splendid valleys learning campus are in hand, and our brand new hospital, named after Nye Bevan, is about to open.

But no one coming to the constituency can ignore our industrial legacy. There is still much, much to do. Too many of my constituents are unemployed. In Blaenau Gwent, unemployment stands at 11.8%. In Witney, the Prime Minister’s constituency, it is 1.9%. Also, life is too short for many. Average male life expectancy in the constituency is just 75.3 years. In Witney, men live nearly five years longer—an average of 79.4 years. In the Queen’s Speech there were fine words about fairness and reducing health inequalities. My constituents will be measuring the new Government closely on these policies.

Unfortunately, I believe this Government have got off to a very bad start. The cuts announced for the future jobs fund and child trust funds are not welcome. I deplore the cuts that slash the numbers of young people able to go to university. As I know from personal experience, one of the best routes out of poverty is a good education.

I am a former director of policy for the Royal College of Speech & Language Therapists and campaigns manager for the National Society for the Prevention of Cruelty to Children. I will use my campaigning skills to stand up for families whose children suffer from communications disability. Our Speaker and the shadow Secretary of State for Education, my right hon. Friend the Member for Morley and Outwood (Ed Balls), showed great leadership on that topic in the previous Parliament. I would like to help take forward that important work.

In his maiden speech in 1929, Nye Bevan warned of

“collusion between the Tories and the Liberals”.—[Official Report, 16 July 1929; Vol. 230, c. 338.]

Nothing changes, does it? He called for Labour to have its eyes on the needs of people. Our needs are for more jobs, and a reduction in poverty and health inequalities. There are huge issues of inequality in my constituency. The chronic diseases of the legacy industries of coal and steel must still be overcome; heart disease and lung cancer in particular must be reduced. Public health should be at the centre of our investment and policy changes. Unpopular though it may be with some, I support the campaign for minimum pricing for units of alcohol. Although health is now an issue for the Welsh Assembly, as a local MP I will concentrate on that.

Employment must be another priority. The confidence and aspirations of young people must be supported. The new learning campus in our valleys must be delivered, so that good, well-paid employment is their future. We are a constituency that helped build this country. The railways and factories were made with our steel, and fired with our coal. Now though, we must invest in tomorrow's jobs. Alongside manufacturing, we should nurture green jobs as well as jobs based in science and the digital economy. We must get over the country’s massive digital divide. We must have fast internet access in Blaenau Gwent.

To boost the economy of Blaenau Gwent, our generation must build on the vision of my predecessors, learn from the socialist history of Blaenau Gwent and invest in industrial, education and transport infrastructure to boost our economic regeneration. I will pour my energy into that work. I will do it with a smile on my face, as working well with people usually gets the results needed. I will pursue our jobs, health and anti-poverty agendas with tenacity, too. My constituents deserve nothing less. I thank the House for listening to me today.