Contingencies Fund Bill

Patrick Grady Excerpts

Committee stage & 2nd reading & 2nd reading: House of Commons & Committee: 1st sitting & Committee: 1st sitting: House of Commons
Tuesday 24th March 2020 Commons Chamber

[Richard Thomson]

I happen to believe that it would be the best way to ensure that we deliver money to those who need it over the longer term. I do not view it as a Trojan horse; I believe its merits would speak for themselves. But whether we believe in it ideologically or not, from a pragmatic perspective, it would certainly reduce much of the red tape in getting financial resources where they need to be. I do not think the issue of whether it should exist in the long term needs to divide us; I think we could agree that it is how we can best deliver support over the period ahead of us.

There are other areas of the economy that require our attention. Although support for buy-to-let landlords is welcome—I draw Members’ attention to my entry in the Register of Members’ Financial Interests; I rent out a small flat myself—it would be more welcome if that financial support went directly to tenants, which would allow them security of tenure and keep that cash circulating in the economy. Other potential measures include increasing statutory sick pay to the EU average, strengthening welfare protections, removing the bedroom tax and removing the rape clause.

When it comes to our transport infrastructure, we need to protect capacity. We saw yesterday welcome interventions in the rail industry and the train operating companies. My constituency contains Aberdeen airport, and the companies responsible for the ground operations there have been in touch with me. Support for the airlines is no doubt important, but so too is support for the airports and the people who work on the ground to ensure that the activity can continue. Our airports will be crucial in getting the country moving again once we are through this crisis. We need to prepare for the contingency of repatriations to the UK in the event that commercial airlines are not able to carry out that task. We also need to be prepared to cover those whose insurers will not pay out for coronavirus-related claims, whatever activity they relate to.

Those measures represent just some of what will be necessary, but we need the resources in place to take them.

[Patrick Grady (Glasgow North) (SNP)]

It is right that the Government are bringing forward a whole range of support packages, and my hon. Friend is right to raise the other kinds of support that are needed. Does he agree that there is also a responsibility on employers to engage constructively with this and to look after their staff? It might be understandable that people placed on furlough receive an 80% cut in their salary, but I am hearing reports from some of our colleagues who are not physically present with us today that, for example, Newsquest publishers is preparing to cut the salaries of staff who are not being furloughed by between 15% and 20%. Does he agree that that kind of practice by businesses that are going to benefit from the Government support is a very worrying practice?

[Richard Thomson]

My hon. Friend makes an excellent point. People will be watching very closely to see how companies behave in this crisis and how they react to the support that is there. It is very clear that while some companies have behaved very responsibly, with a real social conscience and with a sense of duty towards their staff, others are not behaving as creditably. I am sure we will hear of more examples of that as time progresses.

All the measures that have been outlined come at a considerable commitment, but the costs—in financial terms, but, more importantly, in human terms—of doing nothing are very much greater to us than the costs of intervening. The response to covid-19 is one that will need all of us to make our own contribution. On behalf of my party, I pay tribute to the public servants, the charities and the many volunteers who will be working around the clock to keep people safe and comfortable over this period. I thank those in the private sector who are working so hard to keep other essential activities in the supply chain under way, and all involved in all spheres and tiers of government—local and national—who will be helping to co-ordinate that activity in the days and weeks ahead.

I will draw my remarks to a close by saying that it was important this week that we gave all those in those spheres and tiers of government the political permission to act as they need to in pursuit of the greater good. This Bill provides the resource to underpin those permissions, and subject to good choices being made with the resource that is now available, it will also give us the ability to support businesses and families through this most trying of times. The Bill has our support.