British Steel Pension Scheme: Transfers

Debate between Nick Smith and Jim Shannon

Wednesday 10th April 2019 Westminster Hall

[Nick Smith]

I agree. I think that the FCA has the right teeth but is not using them and that the police need to intervene much earlier.

[Jim Shannon (Strangford) (DUP)]

I, too, congratulate the hon. Gentleman on initiating the debate. I do not have any people with steel pensions in my constituency, but I am here to support the hon. Gentleman and to do so on the record. He mentioned that 4,000-plus people a week were trying to get details and advice on how to move forward. Is not the onus on the FCA and, ultimately, the Government to ensure that the necessary advice is there and available? The volume of contacts being made clearly indicates that the system is unable to respond in the way it should.

[Nick Smith]

The advice is there. The difficulty is that for many people it is too technical and complicated; working through it is really very hard.

Transfers were talked up, and pension sharks soon began circling around the key steelworking sites across south Wales and the rest of the UK. They were often facilitated by unregulated introducers, through word of mouth. For example, constituents of mine were approached by a rogue financial adviser at their caravan while they were on a family holiday. Wider possibilities were common currency: a place in the sun, a conservatory and a deposit for a son’s or daughter’s new home were all said to be within reach.

The pension changes meant that it was easier to transfer from a stable fund into investments that were far riskier, on the promise of better returns. Unfortunately, it meant that a safe bet could turn into a bad bet, and a high fee was often part of the deal too. It was the case that 7,800 steelworkers transferred out altogether, of whom 872 had transfers arranged by firms that were eventually ordered—ordered—to stop advising by the FCA. One steelworker lost £200,000. Many others lost tens of thousands of pounds. Many suffered incredible stress and anxiety. I heard yesterday that £1.8 million has been paid out in compensation to steelworkers so far. I emphasise the words “so far”. Because that might not grasp the full scale of the issue, the FCA has now reviewed the files of 2% of the nearly 8,000 steelworkers who transferred out. It found that 58% of the advice was not suitable, which means that the tally of those who lost out could run to several thousands. To deal with that possibility, the FCA now needs to set out a clear programme of how it will identify the steelworkers affected, how it will let them know and what practical support it will provide to help to get them through this process.

Electric Vehicles and Bicycles

Debate between Nick Smith and Jim Shannon

Wednesday 9th May 2018 Westminster Hall

[Jim Shannon]

I heard Nissan say that, so I understand exactly what the hon. Gentleman refers to.

The Library briefing for the debate states:

“Though concerns have been raised about the extra demand EVs will add to the electricity grid, the system operator National Grid have said many predictions are exaggerated.”

We need some reality in this debate, and I hope that we can get it. The briefing continues:

“EVs have lower emissions of greenhouse gases and air pollutants over their lifetime compared with conventional vehicles. Although EVs generally have higher manufacturing emissions than conventional vehicles, they have lower emissions from use, meaning that generally they have lower emissions than the equivalent conventional fuel vehicles.”

EVs are not a perfect solution, but they certainly are better than what we have. We should look towards them and—I say this gently—perhaps be a wee bit more positive about what we put forward.

[Nick Smith (Blaenau Gwent) (Lab)]

Does the hon. Gentleman agree that electric vehicles are the answer to pollution-free travel, but that the Government need to promote that mode of travel much more effectively?

[Jim Shannon]

I agree wholeheartedly. The idea of electric vehicles is taking root in Northern Ireland. Although most electric vehicle drivers charge their car at home, there is a network of 336 public charge points across Northern Ireland, which are owned and operated by the Electricity Supply Board. More and more councils are looking to provide charging points in council-owned car parks, in an attempt to encourage people to understand that if they decide to buy an electric car, they will be able to charge it when they are out and about or away on their holidays. I am conscious of the time—I will keep to the limit, Mr McCabe—but perhaps the Minister will give us some idea of how we can encourage the provision of charging points. If we do not have charging points in rural areas, we cannot encourage people who live in the countryside to participate.

I commend the tax breaks that Her Majesty’s Revenue and Customs and the Minister were involved in providing. Those tax breaks, which the hon. Member for South West Bedfordshire and other Members mentioned, have incentivised businesses to be involved in electric cars. A business can get a 100% first-year allowance for its expenditure on new and unused electric vans. That is critical to making this happen, and it is important that we move it forward. That allowance applies to expenditure from 1 April 2010 for companies that pay corporation tax, and from 6 April 2010 for businesses that pay income tax.

All that is an attempt to ensure that we encourage individuals and businesses alike to take the forward step of buying electric vehicles where possible. We can do more to encourage people to look at that idea by offering non-business owners greater tax breaks on new cars for personal use. Let us encourage people by incentivising them. As the Minister probably knows already, we can do that with tax breaks.