Harland & Wolff
Debate between Nusrat Ghani and Liam Byrne(4 days, 16 hours ago)
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Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)
Congratulations to the Secretary of State. This is excellent news for the people of Appledore and of Northern Ireland and for workers across the Harland & Wolff supply chain. He might want to confirm that the peril of providing a Government guarantee was the possibility of entailing a huge payout to a US-based hedge fund, which was the largest creditor for Harland & Wolff. What is happening to the contract value for the FSS deal? It was priced at about £1.6 billion. Has that contract value now gone up? Crucially, what does the Secretary of State envisage for Harland & Wolff after that enormous contract is safely and soundly delivered?
Jonathan Reynolds
I thank the Select Committee Chair for his kind words. I am delighted that we have been able to secure this future for Harland & Wolff. His assessment is right that the largest creditor to Harland & Wolff when we took office was Riverstone, a significant US hedge fund. He is right to say that had we gone ahead with that Government guarantee or loan, there would likely have been no real return to the taxpayer—no guarantee of jobs, shipyards or ships being built. That money would have gone to the creditors. Actually, in the commercial market-based solution that we have been able to broker, all creditors have behaved responsibly, but, understandably, if anyone thinks the Government will come along and give them free money, they will hold out for that option. That was why it was so important to make that decision early on to secure this far better outcome.
On the specific question, and I should have directed my answer to the shadow Secretary of State, the hon. Member for Arundel and South Downs (Andrew Griffith), there is no change to the UK-based content of the contract. As I said in the statement, there have been some changes on commercial terms, although they are relatively minor based on the overall value of the contract.
On the future, I can tell the right hon. Member for Birmingham Hodge Hill and Solihull North (Liam Byrne) that the deal we have brokered guarantees not only all four yards, but the jobs in the Belfast yard for three years and jobs in the three other yards for two years. We therefore have a chance not just for new investment coming into those yards, but for the long-term future to be secured for a pipeline of work and energy and defence contracts, which is a vibrant and successful opportunity for the future.
Future of the Post Office
Debate between Nusrat Ghani and Liam Byrne(1 month, 1 week ago)
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Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Chair of the Business and Trade Committee.
Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)
Today is the last day of the Horizon inquiry. I look forward to working with you, Madam Deputy Speaker, and with colleagues across the House to explore appropriate sanctions for those who clearly misled us as the scandal unfolded. I look forward to seeing the Minister and the Minister of State, Ministry of Justice, my hon. Friend the Member for Swindon South (Heidi Alexander), before the Committee on Tuesday 19 November to explore how redress payments can be paid faster.
It is surely right that we aim to grow the top line of Post Office businesses, which has to mean that high street banks contribute more to the core business. What steps can the Minister take to ensure this happens?
Budget Resolutions
Debate between Nusrat Ghani and Liam Byrne(1 month, 3 weeks ago)
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Liam Byrne
I agree 100%, but I say gently to right hon. and hon. Members across the House that that is not free. If we want to ensure that there are good transport links and digital links, that the workforce is healthy, well and trained, and that there is a rich ecosystem of ideas, the money has to come from somewhere. The sensible decisions that have been made to increase borrowing in order to fund a higher level of fixed capital investment are wise. Investment in public services is wise too. I very much hope that that will benefit the hon. Lady’s constituency.
An increase in investment on the scale we have seen today will improve the profitability of businesses in this country. The Business and Trade Committee looks forward to scrutinising the detail and ensuring the Government have got the balance right, because, goodness knows, it is hard enough to get the balance right in a Budget, never mind translating it into legislation. That bargain for business has to consist of two sides: on the one hand, we will create a better business environment through higher capital investment, but on the other we have to give workers a pay rise.
The labour share of income in this country has fallen precipitously since the 1950s. If the labour share of national income was as high today as it was in 1955, on average a worker would be receiving a pay packet this year that was over £7,000 bigger. That is why we have to get the balance right between ensuring that businesses are more profitable and ensuring that workers are getting their share of national income. Getting the balance right is difficult. Like my hon. Friend the Member for Hackney South and Shoreditch (Dame Meg Hillier), the Chair of the Treasury Committee, my Committee and I will scrutinise that in detail. We will begin that work when we see the Secretary of State for Business and Trade in front of our Committee in just a couple of weeks’ time.
My final point is about where I wanted the Chancellor to go further. Among the worst of her inheritance is the yawning gulf in inequality that scars our country. We have a moral emergency in Britain: sales of superyachts, luxury cars and big mansions are at an all-time high, but, at exactly the same time, the queues for food banks have never been greater. There is no mystery to that. Over the past 14 years, the combination of easy money and low taxes on capital income has meant that the top 1% in our country—the luckiest 1%—are 41 times richer than everybody else. Did they work 41 times harder? Are they 41 times cleverer? Did they win the lottery? Well, in a way they did, because £850 billion-worth of quantitative easing held interest rates in our country down by about 1%. That triggered three quarters of the rise in asset prices that we have seen over the past 14 years. Of course, people in the top 1% will own assets and will have seen a windfall gain, yet the rate of tax they pay on those capital gains is just half the top rate of marginal tax.
I am sorry that the Leader of the Opposition is no longer in his place to hear me say this, but he did a good thing a couple of years ago, which was to publish his tax return. I am sure that all hon. Members will have read it—it does not take long, as it is only a page long. It declares an income of £2 million and a tax rate of 23%. At a time when so many people in our country are paying a top marginal rate of more than 47%, I do not think that it is morally right that those with broader shoulders are paying much lower tax rates. I would have liked to have seen the Chancellor go further on capital gains tax.
I welcome the changes to the non-dom and inheritance tax regimes, but I would have proposed other changes as well. If we had truly restored fairness to the tax system, we could have raised money to increase the national wealth fund and opened the opportunity, for the first time, of paying dividends into a universal savings account for every young person in this country. That would have helped them get a foot on the housing ladder, repay their student debt, invest in their training, or kickstart savings for their pension. That would have helped us to create a universal basic capital system in this country. We will need a system like that if we are to fix the scandalous inequalities of wealth that now bedevil our country. None the less, I accept that the Chancellor had to put first things first today. She had to fix the foundations, because, as all of us in this House know, if we get that job done well, the best years for this country truly lie ahead of us.
Post Office Horizon: Redress
Debate between Nusrat Ghani and Liam Byrne(3 months, 2 weeks ago)
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Madam Deputy Speaker (Ms Nusrat Ghani)
Members should continue to bob if they want to be called. I am going to call everybody, as I know the Secretary of State also wants to respond to everybody. I call the previous Chair of the Business and Trade Committee.
Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)
I add my congratulations to Sir Alan Bates and Lady Suzanne on what looked like a very happy day.
I welcome what the Secretary of State has set out for the House this afternoon. When our Select Committee reported back in March, we said that trust in the Post Office was fundamentally broken and that the appeals scheme needed to be independent. This is an important step in that direction, but sub-postmasters have told me this morning that there is still a problem with the time it takes to get offers back when an offer is contested. The claimant’s lawyers have a fixed amount of time to put in a claim; when that claim is contested, it is taking far too long for Addleshaws, in particular, to come back and provide a second offer. What comfort can sub-postmasters take from the Secretary of State’s announcement today? This whole House agrees that justice delayed is justice denied.
Jonathan Reynolds
I am grateful to my right hon. Friend, who will, I hope, see his work as Chair of the Select Committee reflected in this announcement—specifically, that we are setting the target to issue initial offers to 90% of claims within 40 working days of receiving a full claim. On the point of how that is defined, a full claim is one where, following legal assessment, it is deemed that it does not require any further evidence to assess the claim further. Once that is in, the targets, which his Select Committee rightly called for to make sure redress is delivered at speed, are part of this process.