Santander Closures and Local Communities

Debate between Philippa Whitford and Albert Owen

Thursday 14th February 2019 Westminster Hall

[Albert Owen]

That is a very strong point, but I think the banks themselves are ripping people off if they are not giving money. Cashzone machines are charging 95p per transaction. Often they are in poorer communities. The Which? research I referred to earlier highlights that almost two thirds of bank closures have been in the poorest areas of our country—those with an average household income of less than £26,000—so the closures affect our poorer constituents.

We need to look for solutions. We have heard a few ideas about financial hubs, for example. I seriously put to the Government the proposition of using Crown post offices, because we need to look for solutions. They are closing down these buildings, which they often own and which often lie empty for some time, as in Holyhead in my constituency. Such buildings could be used as financial hubs.

I am sure my hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds) will be very happy that I agree with our Labour party policy to re-establish a Post Office bank—a people’s bank—and to have regional banks so that regional business can benefit. We need to go beyond just blaming the banks; we need to have a proper Government policy and framework.

[Dr Whitford]

We used to have the Girobank, and people’s “giro”, as their unemployment benefit or pension was called, used to be paid through it. The Government’s policy is that people receiving social security need to have a bank account. They then get sent back to the post office. Is that not Kafkaesque?

[Albert Owen]

I absolutely agree. The role of the Post Office is important, and the Government are the owner. We are the shareholders, and we need to look at this in the long term. Banks, whether Santander or any of the other major banks, think in the short term; they look at their shareholders and at cutting costs. If we had a people’s bank—a Post Office structure and network across the country that had the same rates—it would be fair and even for all our constituents across the country. They would have better access, and we could invest as a country in the infrastructure and the broadband. In the digital age, it could be as modern as any other bank.

That is the way we need to move. I am pleased that the Opposition Front Bench will agree with me, but I want the Minister, who is very diligent, and who looks for solutions—I am trying to help him in doing so—to stop closing the Crown post offices that we own. He should use them as major financial hubs across the United Kingdom, so that when banks are closed, we do not get bog-standard letters telling us to go to a nearby post office that is also closing down. We need a people’s bank. I say to my constituents who use Santander in Llangefni: “Don’t travel 15 or 20 miles to your nearest post office. Change banks. If Santander won’t stand up for you, stand up for yourself.”

I pay tribute to the staff who work in banks across the country. They are the face of the banks. During the banking crisis, they took a lot of flak. It was nothing to do with them. They are diligent workers, but I am afraid that, when it comes to these large banks, these staff are just pawns in the game. They will lose their jobs, and people will lose their financial services. I want the Government and all of us to work together to stop that.

--- Later in debate ---

[Dr Whitford]

I absolutely agree. I pay tribute to the staff in my branch, who were very helpful when we opened our account and are always cheerful. They are not about to retire. They are young working people who are not looking to take a package, but will need a job. They are being made unemployed, and they are deeply shocked by that.

There have been 3,000 branch closures since 2015, 230 of which are in Scotland. Two thirds of branches have been cut since the end of the ’80s. By the end of this year, we will have fallen from 21,000 to less than 7,500 across the UK. That is an incredible change. I totally accept that banking is changing, but, like many others, I use mixed banking. I will use an ATM, go into my branch and do online banking, but it is important that I have that choice. We are talking about choice being taken away.

This change is 20 years too early; we are not yet cashless or online. My mum, who is 84, and most people over 70 are not happy to do banking or any sensitive financial transactions online. My mum has her iPad and can do emails. It is not stupidity. She simply does not trust it. In making this change, we are leaving two decades’ worth of older citizens feeling uncomfortable and like they have had things taken away from them.

When banks move out, they do not leave their ATMs behind, which means that there is less access to cash in community after community, and the ATMs that remain are running out. Troon has already lost three banks. This is our fourth. I went through all this with RBS, which tried to use a unique customer identifier. It told me that only 97 customers a week went into the branch. I found that really strange, because every time I went in, I was in a queue. It only counted people who only went into that branch and went into the branch every single week. As was said, no other business would count custom in that fashion. When I finally got the correct figures out of RBS, that number was 10 times as high. Yet the bank would not reconsider its decision.

Although my hon. Friend the Member for Glasgow East has highlighted the issue of vulnerable people who have poor internet access, in Troon, a place to which many people retire, the issue is the elderly. In the impact assessment, it says that 58% of people have, on at least one occasion, used online, mobile or telephone banking, meaning that 42% have never used those methods. There is no quantification, so we do not know—as the hon. Member for Glasgow North East (Mr Sweeney) said—whether someone simply phoned the branch to ask what its opening hours are or when they could go in to get a statement. The idea that that means someone is suddenly ready to manage all their finances by phone or online is just a fairy tale.

The problem we have is that our elderly population is suddenly being told, as I was assured, that the closest branches are within a 10-mile radius—it is seven miles in one direction and 11 miles in the other—and for most of the elderly who live in Troon, however, that means taking two buses and more than an hour’s journey on a bus that is not frequent, so a visit to the branch could mean a three-hour round-trip. As was highlighted earlier in the debate, that also takes footfall out of Troon’s town centre, because if someone takes the trouble to go to Ayr, the chances are that they will shop in Ayr. They will not come back, go in to the middle of Troon, shop, and then get a bus home. That is gradually killing our high streets.

The access to banking standard and the need for an impact assessment were mentioned. We have all been sent little infographic-laden impact assessments, but it strikes me that they are largely about the impact on the bank. They are not really about the impact on customers, staff or our high street. The hon. Member for Ynys Môn (Albert Owen) mentioned the idea of having a hub. The obvious way to do that would be to bring back Crown post offices, but why do we expect post offices to co-locate with other businesses, but not banks to co-locate with each other or with post offices? It is absolutely vital that communities have some form of safe and secure access to financial services and advice.

Post offices are proposed as the answer to everything, but we cannot use them to open new accounts, carry out bank transfers or, if trying to manage our money, get full bank statements—only a balance. We certainly cannot arrange loans. Many of us used to go into a bank to speak to our bank manager, who was very strict about the income that we needed to obtain a mortgage. Part of what led to the 2008 crash was random decisions to lend people three, four, five, six or seven times their income so that they could get a mortgage, instead of giving them the chance to sit down and talk with someone who could see their financial performance. That applies to business customers who, at the early stages of development, need really personal input from someone who manages their service.

Quite apart from being the answer to all those problems, post offices are struggling financially. Previously, postmasters would get a fee, but funding for that is being cut from £210 million to just £70 million. As this is the fourth bank to close in Troon, all of that work is going to the post office. It has the same number of counters that it has always had, and it had a two-year gap of struggling to find a new postmaster when our previous one was ill and found it frankly all too stressful. In the Which? survey, 42% of those not happy about the move to the post office were concerned about queues. If the post office has the same number of counters but is suddenly doing the work of four banks, queues are inevitable.

Our closest town, Prestwick, has also lost three banks. When I met our postmaster after the most recent closure, he was initially quite positive, because he saw it as a business opportunity. I met him recently, however, and the bank transactions actually take money out of his business. Cash deposits are time consuming and he has had to take on an extra part-time member of staff. He does over 500 extra banking transactions a month and takes in £1 million a month. While Santander charges £7 per £1,000 deposited, the postmaster is paid 37p per £1,000 deposited. The Government subsidy for the 3,000 community post offices that are protected as the last shops in the village will end in 2021. We will literally have dead and empty communities with no access to anything and nothing to maintain footfall in a town centre.

We need to reward and support the post office. Santander is one of the biggest users of post office services, because it makes its business customers deposit cash in the post office. The fee paid to post offices for those transactions is currently being renegotiated. It is critical that that fee be fair, because otherwise we will see the last remaining Crown post offices not redeveloped as banking hubs, but shut down. Frankly, post offices wedged in corners of shops are not always accessible, are often cluttered and do not offer privacy to carry out financial decisions and management.

[Albert Owen]

Is there not an additional risk of going in with one retailer—WHSmith, for example—because many high streets brands are closing down, meaning the whole service could go?

[Dr Whitford]

That is the problem. We almost have that tumbling effect—the work is just passed to someone else, who cannot maintain it, and it is passed on again. It is important that there is a different way of looking at the issue. I agree with the hon. Member for Glasgow North East: it is down the Government to look at innovative approaches across the world, see how such banks are expected to behave in other countries, and, perhaps, to learn from America—not in all things, but in the idea of having regulation to ensure support for financial facilities in all our communities, and not just the leafy streets of middle-class suburban areas.

Euratom Membership

Debate between Philippa Whitford and Albert Owen

Wednesday 12th July 2017 Westminster Hall

[Albert Owen (Ynys Môn) (Lab)]

I beg to move,

That this House has considered negotiations on future Euratom membership.

I declare an interest as a vice-chair of the all-party parliamentary group on nuclear energy. I want to make it clear from the outset that this debate is not a rerun of the EU referendum debate or of the article 50 debate. This debate is about getting it right and ensuring that the UK remains a world leader in civil nuclear and in research and development.

We achieved world leader status by co-operating with others across the world under the umbrella of Euratom—or, to give it its full name, the European Atomic Energy Community. Euratom was established in the 1950s as part of the creation of the European Community. It provides the basis for the regulation of civil nuclear safeguards and control and supply of fissile material, and funds international research. The Culham Centre for Fusion Energy is one of the leading research centres in the world. The Government have indicated that Euratom and the EU are legally joined. Some say that we have to give the same notice to exit Euratom as we did to exit the EU through article 50. I disagree.

I was a member of the Business, Energy and Industrial Strategy Committee, which held a comprehensive inquiry into how Brexit will affect energy. We looked at the single internal energy market, Euratom and meeting our climate change commitments. We heard evidence from across the board. Euratom was raised by many experts who work in the civil nuclear field and in research and development, as well as by academics. We received hard evidence that there is contradictory legal advice on the matter. In fact, the advice is diametrically opposed. Many believe that just because we are a member of the same institution, we must have the same jurisdiction. That is in dispute, and I put it to the Government that there are ways forward that would mean there did not have to be a cliff edge when the article 50 negotiations are complete. I sought this debate to ensure that we get the best deal possible, that we get some transitional arrangements, and that the industry is happy.

In the light of the new consensual politics that the Prime Minister has announced, will the Minister—I ask him to make a note of this—set up a working group with industry and academics, and consult Parliament, to ensure that we have the appropriate arrangements in place so that the nuclear industry and those involved in research and development can plan for the future?

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

I understand that this debate will focus largely on the nuclear industry, but I am concerned about the impact on medicine. Is the hon. Gentleman aware of the concern of the Royal College of Radiologists that an inability easily to bring isotopes into the country could affect half a million scans and 10,000 cancer treatments? Isotopes cannot be stored, because they have a short half-life, so we need Euratom.

[Albert Owen]

I absolutely agree. I have had a lot of correspondence from experts across the field, including the Royal Marsden Hospital, where cancer research is vital. As the hon. Lady says, it is absolutely essential that we get that right. This is not about the dogma that we must leave an institution; it is about ensuring that medical research continues, that we maintain high standards, and that we have the framework to move isotopes and do the things that she mentions.