Deregulation Bill

Richard Fuller Excerpts

Monday 3rd February 2014 Commons Chamber

[David Rutley (Macclesfield) (Con)]

I rise to give my full support to the Bill, which represents another important clear-out of unnecessary barriers to economic growth and will help to clear a path to the creation of more jobs. It also tackles the worrying “something must be done” culture of believing in legislation as the cure to all problems. Too often, legislation and heavy-handed regulation makes things worse, not better.

We need more first-time entrepreneurs to step forward without being put off by the fog of regulation, and we need more such people to take another step by becoming first-time employers. I therefore welcome provisions in the Bill to simplify apprenticeships, just as I welcomed measures in the Finance Act 2013 to reduce the burden of employer’s national insurance contributions— the jobs tax—which the Labour party has sought to increase.

We need not only first-time entrepreneurs and first-time employers, but first-time exporters. We must continue to help more first-time home owners within our property-holding democracy, so I welcome clause 21, which will reduce barriers to the right to buy—[Interruption.] The receipts will be used to build more social housing, as my hon. Friend the Member for North West Leicestershire (Andrew Bridgen) has indicated from a sedentary position.

By pulling down barriers to action, we are sending the clear message that Britain is open to people giving it a try, realising dreams and achieving ambitions, regardless of whether they are the first in their family ever to do so. We are saying that there is hope and opportunity. As the Prime Minister said to the Federation of Small Businesses at its conference last week, there are areas where the Government need to

“get out of the way of small business success.”

That means introducing a programme of ongoing tax reductions, continuing to drive down the barriers of regulation and letting businesses steer their own course to success. The new employment allowance is a rebate of £2,000 on the national insurance contributions of every business in the country.

[Richard Fuller (Bedford) (Con)]

We cut Labour’s jobs tax.

[David Rutley]

Absolutely.

The duty to pay employer’s national insurance contributions for people under 21 will be abolished completely. Last year’s autumn statement included a cap on the increase in business rates and a rolling programme of small business rate relief that will enable a £1,000 reduction in business rates for shops and retail premises, which will help to safeguard our high streets.

The Bill is an integral part of the Government’s long-term approach on deregulation. As the Minister said, the red tape challenge has highlighted just how much regulation there is and demonstrated the Government’s willingness—their desire even—to drain the swamp of existing regulation. The Minister kindly referred to that as a lake, but I think that it is more of a swamp.

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[Caroline Lucas]

I am not a spokesperson for the Labour party, but if the hon. Gentleman wants to ask that question of those on the Labour Front Bench, he is very welcome to do so. What I am talking about is my knowledge of small businesses, with which I spend a lot of time in my constituency. What they would love to see is a reduction in VAT or an extension of the threshold, so that more small businesses are caught by the business rate relief. There are all kinds of things that they would like to see, but they are not necessarily telling me about a huge burden of regulation of the kind that the Government think they are trying to solve.

An example of the positive role of regulation is the 2016 zero-carbon target. This set a destination in advance and precipitated a huge amount of innovation from businesses figuring out how to get there—new jobs, new industries and new export markets for UK businesses. Customers are increasingly interested in energy efficiency, and a new home will probably save them £800 on their annual energy bills. Builders have responded to a clear stepwise trajectory towards zero-carbon homes, with uplifts in regulations in 2006 and 2010, and again this year, en route to 2016, from when all new homes are meant to be zero-carbon. The costs of building low-carbon, efficient homes have tumbled—by half in the last two years alone, according to forthcoming research. That example highlights the fact that Government regulation, not deregulation, can be incredibly successful in driving innovation, keeping energy bills down, creating jobs and cutting carbon emissions.

Environmental regulation to manage building in flood-prone areas will protect people from the nightmares that we have witnessed on our TV screens, if not in our own living rooms, over recent weeks. There are plenty of examples of disastrous deregulation, too. The US car industry lobbied and funded both Democrats and Republicans to reduce regulation. The result was that it drove itself to bankruptcy, because it was out-competed by overseas manufacturers that developed more efficient cars to meet tougher regulations elsewhere.

The Government seem to be ignoring business representatives speaking out in favour of strong regulation. I have mentioned the Aldersgate Group a couple of times. In 2011, it warned that the drive to cut regulations on business could threaten the economic recovery. In a report launched here in the House of Commons, it stated that Government initiatives such as the red tape challenge that threaten “to rip up” vital green legislation would lock in polluting industrial processes for decades to come, jeopardise future competitiveness, and damage the UK’s attractiveness to green investors. It questioned whether measures such as one in, one out rule made sense, and would address pressing environmental challenges such as climate change. That is just one example of a market failure that requires more, not less, regulation to safeguard the environment and drive development in new industries.

The Aldersgate Group also highlighted the negative impact of putting sensible environmental regulations at risk with a consequent loss of business confidence. Peter Young, the group’s chairman, said:

“It is a myth that all businesses want less regulation. Effective green laws create a level playing field which drives efficiency, early action and the innovation in UK companies that will be the engine for future growth and jobs.

A crude deregulation drive risks damaging competitiveness and severely threatens the Prime Minister’s commitment to a green industrial revolution. The regulatory framework should encourage a rapid shift to a sustainable economy rather than being held back by vested interests or the lowest common denominator.

The Government’s ‘war on red tape' must not become a crusade that threatens regulatory outcomes such as protecting the environment. Even the threat of deregulation on the Climate Change Act and renewable energy support is massively eroding investment and making growth more difficult.”

There you have it, Madam Deputy Speaker. That is not just the Green party speaking; some of the captains of some of the biggest industries in the country are saying, very clearly, that the idea that all businesses hate all regulation is a myth and a travesty.

[Richard Fuller]

What does the hon. Lady think is the impact of deregulation on the interests of small business, as opposed to large business? She has talked about large businesses, but does she not think that deregulation particularly helps small businesses?

[Caroline Lucas]

I certainly think that some deregulation can help small businesses, and I also think that small businesses find it harder to deal with. What I object to is the fact that we are talking in vast generalisations. Let us instead talk about specific regulations. By and large—apart from, for instance, the clause about knitting yarn—the Bill contains none of the measures that small businesses in my constituency are crying out for. As I have said, what they would love to see are changes in the whole economic environment, such as the introduction of a higher threshold before business rate relief comes in. That would make a huge difference to them.

Let me now say something about the growth duty. I fear that it will interfere with, and impinge on, the ability of organisations to play crucial roles. The idea that growth must come before everything is a mantra and an ideological obsession, and it seems to me that an obsession with short-term GDP growth at any cost is simply not in the public interest. The Government’s justification for the growth duty has been inconsistent and incoherent. Regulators are already subject to a statutory duty to regulate proportionately, to be transparent and accountable, and to target activities only when that is necessary. That legislation is already there.

Ministers give assurances that the independence and effectiveness of organisations in carrying out their duties will not be undermined. A Government consultation paper states:

“Supporting growth and stripping back burdens are not sufficiently prioritised.”

However, it also states that

“the regulators would need to be able to demonstrate that they have considered the economic impact of their actions when making decisions”,

and that

“the duty is intended to be complementary to, and not override… existing duties.”

I do not understand why the new growth duty is necessary. As the consultation paper makes clear, regulations already exist, and we already know that the bodies concerned must take into account the impact of their proposals on the wider economy.

It seems to me that what we have here is yet another knee-jerk reaction. Growth must come before everything else—protecting workers’ rights, public health, equality, fair treatment, and the environment—and that, in my view, is a very negative approach.

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[Priti Patel]

My hon. Friend is absolutely right. As he has so succinctly put it, creating jobs and giving people employment are central to our long-term economic plan, and to a sustainable strengthening of our future economy. The Bill will not only help those who are employed, but will help people to secure employment, which is why deregulation is so essential.

[Richard Fuller]

I know that my hon. Friend is keen to move on to specific aspects of the Bill, but may I ask her a question before she does so? Those of us who believe in free markets and the power of entrepreneurs to achieve great change want the Government to do as much as they possibly can to get unnecessary regulation out of the way. Given her experience on the Committee that considered the draft legislation, can she assure the House that the Government have gone as far as they possibly could in this Bill to get rid of such regulation?

[Priti Patel]

My hon. Friend is right to ask that question. The Government have, of course, gone incredibly far. They inherited an appalling number of regulations from the last Government, and they are now doing exactly the right thing. They are making good progress, and setting the right direction of travel. We need to support them in that, because British business in particular depends on the changes that we are making in order to create the even playing field that will enhance our competitiveness in the world.

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[Priti Patel]

My hon. Friend is absolutely right. This is about how we can transform the way public bodies, including Whitehall, function. Our new growth duty is an important step in changing that mindset. This is a real message going out saying, “The status quo is not enough any more.” For us to be competitive as a country, we have to change our mindset across Government and Whitehall and also across all aspects of decision making, to help our businesses thrive.

[Richard Fuller]

I would like to bring my hon. Friend back to the general principles and look at the bodies that regulate. The last Government were so keen on establishing regulatory authorities, increasing the burden on business, and that did nothing to stop the increase in youth unemployment and nothing to stop this country racking up massive amounts of debt and the stagnation in wages. Is she sure that under this Government we can really get deregulating? Have we done enough to get rid of some of the bodies the last Government put in place, that stopped us growing as an economy and did not do anything to tackle some of the problems we inherited?

[Priti Patel]

I thank my hon. Friend for his point on public bodies in particular. In the public bodies legislation we went a long way to reshaping that landscape. I am sure there is more to do, however, and this Deregulation Bill is a highly positive and a very welcome start. I commend our colleagues on the Front Bench on everything they have done to champion this. As and when the Bill passes through the Bill Committee, we can do more to strengthen and enhance the ability to deregulate across Whitehall, too.

I mentioned that a vast number of my constituents are employed by SMEs. Interestingly, there is a diverse range of businesses in my constituency. Many of them come under the category of self-employment, but they too come across aspects of health and safety regulation in particular. Many of the businesses in my constituency are hugely supportive of scrapping the rules for self-employed workers, whose activities pose no harm, and of changing the landscape in that regard. They are being liberated now, so they are no longer saddled with this burden and are able to grow and move their businesses on.

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[Mr Wright]

I will come to the precise benefits for business in a moment, but I want first to refer to the hon. Member for Witham (Priti Patel), whom I cannot see in her place at the moment. She used her knowledge from the Joint Committee and her experience in business. I have to disagree with a lot of what she said. I respect her experience in business, but she says that Government just have to get out of the way of business. I do not think that is necessarily the case in a modern, innovative economy. What we need is a Government who will work with business on a long-term vision and an industrial strategy that will enable us to pay our way in the world.

I agree with everything that the hon. Lady said about business start-ups and the need to enhance our competitiveness, but there is nothing in the Bill—no single clause or schedule—that would facilitate start-ups: if only there were such provisions. One of the things that worry us most is the fact that the United Kingdom is slipping down in the world rankings for start-ups. According to figures from the OECD, it has fallen from 18th in the world last year to 28th this year. When it comes to obtaining electricity for a business, our ranking has slipped from 64th to 74th. Surely we should be doing something about that. The Bill could have helped us to do so, but unfortunately it does not.

Several Members mentioned the Bill’s impact on business. One could be forgiven for thinking that it would facilitate an enormous start-up of entrepreneurial activity, but its provisions are so insubstantial and so insignificant to British business that they are almost meaningless. As was pointed out by my hon. Friend the Member for Newcastle upon Tyne Central (Chi Onwurah) in her excellent opening speech, the statement of impact for the draft Bill estimated that it would save businesses £10 million over 10 years: £1 million a year.

[Richard Fuller]

rose—

[Mr Wright]

I will give way to the hon. Gentleman, who I know is very knowledgeable about business. Those savings to business would equate to a full 20p a year for each and every business in the country. Does he not think that our ambitions should be greater?

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[Richard Fuller]

Amen to the hon. Gentleman’s apparent call for the Government to take further action to deregulate and to reduce the burdens on business. He has told us several times how small the changes are. Will he, on behalf of the Opposition, table further deregulatory measures in Committee that will reduce the burden of regulation on business?

[Mr Wright]

When I speak to businesses, which I do every day, they tell me that the main factor affecting their long-term growth perspective is access to finance. Nothing in the Bill enables us to take a long-term view when it comes to where businesses can obtain the finance they need to grow.

It takes four fifths of a second for the British economy—for the hard work and effort of millions of people and enterprises—to generate that potential saving of £1 million a year. I say this to Ministers, and to other Members who have spoken today: do not insult the intelligence of Britain by describing the Bill as a substantial piece of reforming legislation. It will not really help businesses; it will certainly not give them as much help as they need. For the purposes of businesses that want extra orders or secure access to finance, or want the Government to be on their side, this Bill is sadly lacking.

Families are experiencing a cost of living crisis, and have lost £1,600 a year since the general election. Just a few days ago, the Office for National Statistics confirmed that since the Government took office in 2010, Britain has faced the largest continuous fall in real wages since records began half a century ago. However, there is absolutely nothing in the Bill to deal with that situation. The hon. Member for Carmarthen East and Dinefwr mentioned a 4% drop in wages in his community in Wales. One would think that the Government would want to do something about that in a deregulation Bill whose aim was to free up the inspiring innovation of businesses and individuals, but not a bit of it. The net benefits to individuals as a result of the Bill will amount to 0.18p for every single man, woman or child in this country. I really do think that the Government should do better than that.

The hon. Member for Brighton, Pavilion (Caroline Lucas) made a characteristically intelligent speech. She observed that some regulation could be good. She also mentioned clause 21, about which I am particularly concerned. The clause reduces the eligibility criteria relating to the purchase of social housing, which will have an adverse impact on the supply of such housing. Any local authority that wants to plan for the long term will need to spend capital, and will need to borrow as a result. The reduction of the qualifying period from five years to three will make it much more difficult for authorities to borrow on the back of a sustained rental stream. We need only look at the evidence that we have already seen: in the last year 10,600 council houses have been sold, but only 1,600 starts have been made.

Let me return to the hon. Member for Macclesfield and his Churchillian “action this day” rhetoric. What Macmillan did as Churchill’s housing Minister, and what Churchill did in the Housing Repairs and Rents Act 1954, was truly inspiring. It is what the present Government should be doing, but unfortunately they are not.

My hon. Friend the Member for Stoke-on-Trent North (Joan Walley) conveyed the powerful message that regulation is an essential part of a functioning market economy, ensuring that we are sufficiently competitive. She also said that the Bill paid insufficient regard to the Government’s supposed goal to be the greenest Government ever. There is no environmental concern and no environmental impact, and in fact there is an attack on sustainable development here. This is where the Government have got it wrong. It is not mutually exclusive to think about green and growth, although Ministers often think it is. Actually, if we think about how we are going to pay our way in the world in the 21st century, we realise that the real emphasis should be on the industries of the future—those of the green economy. As the CBI and others have said, this is what the modern face of British industry should look like.

Unfortunately I cannot see the hon. Member for Stroud (Neil Carmichael) in the Chamber. I consider him to be part of the sensible wing of the Tory party, but his speech tonight disabused me of that idea. He served on the Enterprise and Regulatory Reform Bill Committee with me. I do not want to rehash the arguments we had in that Committee, but there was no evidence whatever for some of the stuff that was coming through in respect of Beecroft. What was said was, “I’ve met a bloke down the pub and he said ‘wouldn’t this be a good idea?’” That was the empirical evidence the Government brought forward on that Bill.

The hon. Gentleman will recall that in that legislation the Government abolished the Agricultural Wages Board without a single discussion of it on the Floor of the House or in Committee. It was brought in at such a late stage. What businesses want is certainty. Having uncertainty in terms of feed-in tariffs and other things is anti-business.

My hon. Friend the Member for Hayes and Harlington (John McDonnell) mentioned a lack of clarity with regard to clause 23. He also mentioned individual term time dates for schools in respect of clause 37 and here I declare an interest. My youngest son attends a primary school in Hartlepool and my daughter attends a secondary school in Hartlepool. If those schools do not co-ordinate and instead have different term times, it will cause enormous hassle and pressure for our family and millions like us.

My hon. Friend the Member for Edinburgh North and Leith (Mark Lazarowicz) gave a knowledgeable speech and my hon. Friend the Member for Wansbeck made a key point: the Bill is very wide-ranging—the mishmash that he mentioned—and that variety will potentially create problems. I agree.

There is nothing really troubling about this Bill, although there are individual clauses, such as clauses 1 and 2 on the tribunal powers to make recommendations, that are concerning and we would certainly like to see clause 2 deleted in Committee. The actions in this Bill do not match the rhetoric, however. We do not want to obstruct the Bill’s progress tonight, but we do have concerns on specific issues and we will need to look closely at them in Committee. When businesses are crying out for certainty and greater access to finance in order for us to be more competitive in the world, the Government’s ambitions could have been better with regard to the Deregulation Bill.

Oral Answers to Questions

Richard Fuller Excerpts

Wednesday 11th December 2013 Commons Chamber

[Mr Hurd]

My hon. Friend has written to me about this matter, and I congratulate him on his work. I am committed to meeting the decision makers at Essex county council, as I met with decision makers in Cornwall yesterday. There is a very real issue about the future of youth services and why they have been so easy to cut, and I remain passionately committed to young people having access to high-quality youth work.

[Richard Fuller (Bedford) (Con)]

Church leaders in Bedford have been instrumental in setting up and operating the food bank there. With demand for food bank services increasing across the country, will my hon. Friend join me in meeting representatives from local churches in Bedford to understand the complex reasons why demand for food bank services is increasing?

[Mr Hurd]

I thank my hon. Friend for that question, because the Labour party tries to make far too many political points about food banks. The underlying issues are complex and their number is growing, and the Government are supporting them with investment through our social action fund. Food banks are a magnificent human response to difficult times, and we should place on the record our recognition of the work being done to support them across the country in responding to need.

Oral Answers to Questions

Richard Fuller Excerpts

Wednesday 30th October 2013 Commons Chamber

[Mr Maude]

As I say, there have been significant reductions. Productivity has improved and we believe that significantly more productivity can be gained. Current departmental plans show a continued reduction in the size of the civil service through to May 2015. We are finding different ways of doing things better with fewer people and at lower cost.

[Richard Fuller (Bedford) (Con)]

Is it not absolutely right that the effectiveness of public services is more important than the number of civil servants who are employed? What measures is my right hon. Friend taking to measure the productivity of civil servants so they can no longer be a drag on our economy, but enhance it?

[Mr Maude]

At is best, the civil service is not a drag on the economy; it is an important component of the economy working successfully. The leadership of the civil service identified significant deficiencies in capability, which are now being addressed. Frankly, they had been left unaddressed for far too long. Urgent action is now being taken and we need to drive it through.

Oral Answers to Questions

Richard Fuller Excerpts

Wednesday 11th September 2013 Commons Chamber

[The Prime Minister]

We should work with and thank the food bank movement for the excellent work it does, and we should recognise that the use of food banks went up 10 times under Labour. One of the reasons it has increased under this Government is that we took away the block that the hon. Lady’s party put in place, which was preventing jobcentres from referring people to food banks. Labour did not do it because it was bad PR, but this Government are interested in doing the right thing rather than something that just looks good.

[Richard Fuller (Bedford) (Con)]

Q10. Are national standards for sales and marketing practices in this country strong enough to protect against false advertising? Yesterday, a man in Bournemouth apparently advertised himself as made of steel, only to collapse entirely within seconds!

[The Prime Minister]

My hon. Friend makes a good point. I admire everything that happens in Dorset, but I think it needs to look at its trading standards. I have to say that this man folded faster than a Bournemouth deckchair.

Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill

Richard Fuller Excerpts

Monday 9th September 2013 Commons Chamber

[Mr Thomas]

I fear that my hon. Friend’s intervention strikes a chord. I will come on to some of the points made by the Association of Professional Political Consultants shortly. Gavin Devine, the chief executive of one of the big lobbying firms, says that

“there is a risk that the register will give a kitemark or endorsement to some who do not deserve it.”

I read the APPC code of conduct, to which my hon. Friend has just referred, with interest. One key element is that

“practitioners”—

lobbyists who have signed up to the code—

“must use reasonable endeavours to satisfy themselves of the truth and accuracy of all statements…by or on behalf of clients to institutions of government.”

I struggle to understand why Ministers would not want to ensure that all consultant lobbyists ensure their clients tell the truth to them. A code of conduct with such a provision, properly policed, would help to raise the bar—raise the standards—of the whole industry, rather than just those who subscribe to the APPC code.

Consultant lobbyists who sign up the APPC code are expected to be open in disclosing the identity of their clients and must not misrepresent their interests. Having a code of conduct with such a provision would help to ensure that Ministers and MPs would know who was trying to meet us and allow us to explore whether there were other motives for consultant lobbyists asking for information or advocating particular causes. It seems hardly unreasonable for such a basic standard of behaviour to be expected of all lobbyists covered by the legislation.

The APPC code requires practitioners to have a duty to advise their clients if they think they are about to commit illegal or unethical acts. They have a duty to refuse to act for such a client if the client persists. It is surely not unreasonable, and not too burdensome on the consultant lobbyist, to expect lobbyists to be able to abide by such a requirement in a code of conduct. Ministers need to explain why such reasonable requirements are so burdensome that they cannot be included in a code of conduct, or why they do not think we need to uphold, or ask consultant lobbyists to uphold, such basic standards of behaviour.

[Richard Fuller (Bedford) (Con)]

Before the issue of burden is appropriate, there comes the question of efficacy, and a comparison between self-regulation in a code of conduct and a Government-managed code of conduct. What evidence can the hon. Gentleman bring to say that a Government-managed code of conduct is better than a peer group trying to maintain the integrity of their business?

[Mr Thomas]

The advantage of a statutory code of conduct is that it covers everybody. The problem with a voluntary code of conduct is that it covers only those who choose to submit themselves to it. Given the concerns about the lobbying industry—some of them unfair—surely it makes sense to have a code of conduct that everybody signs up to, after proper consultation, so that we achieve a basic standard of behaviour.

[Richard Fuller]

I appreciate that point, but one could argue that with an industry-based code of conduct to which people can voluntarily associate, peer group pressure and recognition will arise from people coming together to say, “We are approved in this way”. In some ways that might be a superior alternative to a Government registrar that is open to burdensome bureaucratic processes where, by the time they are resolved, people do not know what the issues are. In an area such as this, which is so open to public scrutiny, and the scrutiny of MPs and others, the pressures on a voluntary code would surely be even greater than they are for many other sectors of the economy.

[Mr Thomas]

I hear the point the hon. Gentleman makes, but I am sure he will have realised in the course of his research for this debate that there is not just one voluntary code prepared by the APPC, but a number. Although one must commend the efforts of the individuals who have initiated such codes, along with the firms and individuals who have signed up to them, surely it makes sense for everybody to sign up to one clear code of conduct, so that everybody knows what the basic standards are and nobody can be confused about whether certain principles apply in one code of conduct or whether a particular lobbyist is subscribing to another set of principles. That would create clarity for the consultant lobbyist and their client—and for us as the House, therefore—about what is expected of those who seek to engage with us.

Oral Answers to Questions

Richard Fuller Excerpts

Wednesday 19th June 2013 Commons Chamber

[Miss Smith]

As the Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Ruislip, Northwood and Pinner (Mr Hurd) made clear in an earlier answer, many charitable organisations are already taking part and there are opportunities for more. What I take from the hon. Gentleman’s question is his willingness to work with me and others who care about making procurement better throughout the whole public sector, and encouraging local authorities to do their bit alongside the reforms we have achieved in central Government.

[Richard Fuller (Bedford) (Con)]

I applaud the Government’s steps to encourage charities to win public sector contracts, but does my hon. Friend believe there is a threshold to the proportion of income that charities receive from the public sector, above which they stop becoming charities because they are merely agencies of the state?

[Miss Smith]

My hon. Friend makes an interesting point, and it may be just as much the responsibility of trustees of an organisation to look at such issues within that organisation. The Government welcome the diversity of the sector and the opening up of Government procurement to those who can do the job well for value for money.

Oral Answers to Questions

Richard Fuller Excerpts

Wednesday 20th March 2013 Commons Chamber

[The Prime Minister]

It is this Chancellor who has seen the deficit come down by a third since he became Chancellor and has seen the creation of over a million private sector jobs. He is getting the country out of the hole that we were left in by Labour.

[Richard Fuller (Bedford) (Con)]

Will the Prime Minister welcome the successful launch in Bedford last week of the country’s first local enterprise fund? People who care about Bedford have raised £400,000 to invest in businesses in Bedford, encouraging enterprise and securing employment? Does he agree that in this respect, as in so many others, where Bedford leads, the rest of the country should follow?

[The Prime Minister]

I am sure my hon. Friend is right about Bedford’s leadership in all things. He makes an important point, which is that we need to see more small businesses start and more enterprise. We have seen in Britain over the last three years the fastest rate of new business creation in our history, but we need to see more of it to keep the private sector going.

Justice and Security Bill [Lords]

Richard Fuller Excerpts

Monday 4th March 2013 Commons Chamber

[Mr Straw]

Of course. Those of us with experience of SIAC will know that it too could be seen as a parody of a secret court. In SIAC cases, the chairman of the tribunal, who will be an experienced senior judge, issues a closed judgment with all the argument in it and a redacted judgment with a very great deal of evidence in it. The idea that it is—fortunately nobody in the Chamber has used the term, “a parody”—a secret court worthy of Kafka’s “The Trial” is, frankly, utter nonsense.

[Richard Fuller (Bedford) (Con)]

It is helpful for those of us who are amateurs with regard to these issues to benefit from the right hon. Gentleman’s judgment. He has referred a couple of times to the administration of SIAC. My understanding of and opposition to CMPs results from the case of a constituent who was subject to the restrictions of SIAC. His understanding of, and the way in which he was treated by, the criminal justice system and the impact of that form of justice on his physical and mental well-being are some of the reasons why I am emboldened to oppose the Government’s measures. Now that the right hon. Gentleman is no longer in office, has he had the opportunity to meet people who have been subject to CMPs in order to understand the implications that SIAC has had for their lives?

[Mr Straw]

Let us be clear that SIAC does not deal with criminal cases. There is no procedure in our system, north or south of the border—and nor should there ever be—whereby, in any criminal trial, somebody can be tried and lose their liberty without being able to hear all the evidence.

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[Caroline Lucas]

As somebody who has a constituent who has been subject to SIAC, I can assure the hon. Gentleman that I am not waving my shroud nearly strongly enough. The SIAC process is inhumane. We can discuss later whether it falls foul of article 6, but the idea that because we already have CMPs in that example it is somehow appropriate to export them to civil cases is misguided.

[Richard Fuller]

The hon. Lady is making a strong point about the continuation in a new area of a procedure that applies in certain areas. What does she feel will be the implications for how British justice is perceived around the world, in countries where we would like the standards of our justice system to be adopted, if we proceed with the proposal in the Bill?

[Caroline Lucas]

That is a good question. We like to hold our justice system up as an example to the world, yet if we go down this route, we will fundamentally undermine some of the principles of British justice that we have rightly been proud of for many years, and people around the world will look on with genuine shock.

Last week, more than 700 figures from the legal profession, including 40 QCs, had a letter published in the Daily Mail—not a newspaper that I have often quoted in the Chamber—stating that the proposals in the Bill to allow a huge extension of court hearings behind closed doors would

“erode core principles of our civil justice system”.

They argued that if the Government’s changes were allowed to go ahead, they would

“fatally undermine the court room as an independent and objective forum in which allegations of wrongdoing can be fairly tested and where the Government can be transparently held to account.”

The proposals, they concluded, were “dangerous and unnecessary”.

The Scottish Cabinet Secretary for Justice also has serious concerns about the Bill’s provisions relating to closed material procedures in certain civil proceedings, and the Scottish Government have concluded that they are

“unable to support any extension—under any circumstances—of the Bill into devolved areas.”

Charities (Donations)

Richard Fuller Excerpts

Tuesday 8th January 2013 Westminster Hall

[The Parliamentary Secretary, Cabinet Office (Miss Chloe Smith)]

I thank the hon. Member for Glasgow North West (John Robertson) for a thoughtful, wide-ranging speech, and I welcome the additional comments provided by the hon. Member for Paisley and Renfrewshire North (Jim Sheridan). I venture to guess that my hon. Friend the Member for Warwick and Leamington (Chris White) was going to mention his valuable work on introducing the Public Services (Social Value) Act 2012, which I congratulate him on as well.

I turn to the comments made and the issues raised by the hon. Member for Glasgow North West in the debate today. I agree that charities play an important role in our society, and I take this opportunity to extend my thanks to the charitable organisations in this country that work so hard, and to those who work in them. They will be glad to see us taking these issues seriously in the House, and I know that there is much more that we must do.

I start with a general point that the hon. Gentleman will be well aware of. Matters pertaining to donations to charities in Scotland are, of course, devolved matters. He is nodding, and he will know as well as I do that it is for the Scottish Government to comment on those matters. Perhaps they have a clear idea of what they wish to do in the long term in Scotland about such things, but he and I can take that into a different debate any time that he wishes.

I turn to the broad issue of current donations and the health of the sector, which was raised in the hon. Gentleman’s speech and in reports a short while ago. Much has been said about the health of the sector generally, and I add that the picture is very mixed. Clear trends are not easy to discern at this stage. The evidence of recent reports from the Charities Aid Foundation suggests that charitable donations are down, while other evidence, such as the Taking Part survey commissioned by the Department for Culture, Media and Sport, finds that there is a slight increase in the proportion of people giving to charity. Similarly, the overall effect on the health of the charitable sector is unclear.

There are, however, grounds for optimism. Some reports suggest that the total income of registered charities has grown from £52 billion in 2009 to almost £59 billion now and that there are 2,000 more registered charities now than in 2009. Those figures are to be welcomed and cast an interesting light on the debate that we are having here today. What appears clear is that no one can say for certain whether donations are decreasing and certainly not at what rate. There is some debate in the sector about whether a decrease is what charities are experiencing on the ground.

We will need to wait and see if there is a clear trend in donations, but regardless of what trends emerge, it is also true that life goes on. We need to acknowledge that it is a challenging environment for charities and, clearly, for the people they serve. We should all make every effort to help the sector to raise money efficiently and effectively to meet the challenges, and that is exactly what we are doing. If the hon. Gentleman will allow me, I will go on to deal with a couple of ways in which the Government are seeking to play their part.

The hon. Gentleman referred to face-to-face fundraising, often referred to as chugging. That is certainly seen regularly in Norwich. Indeed, only recently I was corresponding with a constituent on exactly that matter. It is an important and successful method of fundraising, which can bring millions of pounds into the charitable sector every year, but I welcome the announcement in November by the Public Fundraising Regulatory Association and the Local Government Association of an agreed template for voluntary site management agreements as a way for local authorities to control chugging in their areas. I think that more than 50 site agreements are in place, with more being negotiated.

Much more is being done by this Government to support the sector, including by supporting a culture of giving both money and time—an important area of debate—by opening up new sources of income and finance through social investment or delivering public services where organisations decide that that is right for them and by providing wider support for the sector, thereby making it easier to set up and run a charity or social enterprise. All those actions support the health of the sector, either through increasing access to income of various kinds or through reducing costs and burdens, so that that income goes further.

The debate has focused on charitable donations, and perhaps the biggest help that the Government give to the sector is gift aid, which the hon. Gentleman went through in some detail. He will know that it is a matter for the Treasury. Although I used to be that Minister, I would not dream of going on to such territory here today, but he did mention his pride in chairing the debates in Committee on the gift aid small donations scheme, and I was the Minister responsible for much of the work on that and was deeply proud to be so, because it is a very good avenue of further help—up to £100 million a year, we hope—for the sector. I shall say more on that in a second.

I want first to deal with the administration of gift aid and ways in which traditional gift aid can be made better for the sector. My right hon. Friend the Chancellor of the Exchequer announced in the autumn statement that an examination would be carried out to identify ways to improve the administration of gift aid to reflect new ways of giving money to charity and, in particular, digital giving, to which the hon. Gentleman referred.

[Richard Fuller (Bedford) (Con)]

rose—

[John Robertson]

I accept what the Minister is saying. I have no doubt that she is right and I think that gift aid is a good idea. The problem is that the small and medium-sized charities seem to be suffering the most, and they do not seem to have the access to gift aid that the larger charities have.

[Miss Smith]

I shall be very happy to answer that, but first I shall take the other intervention.

[Richard Fuller]

On a similar note to what has been said by the hon. Member for Glasgow North West (John Robertson), rather than looking to reform gift aid, would my hon. Friend the Minister consider scrapping gift aid entirely and putting in place a system whereby people can make direct deductions from their taxation? If we want to create a culture of giving, nothing is better than letting people write a cheque to a charity. That is one way in which smaller charities would benefit, rather than having to go through the more cumbersome process of gift aid.

[Miss Smith]

My hon. Friend makes a fascinating point, and I am always very interested to hear his ideas, some of which I have time to debate at length with him in this Chamber. I shall ensure that that idea goes where it can be well considered.

In answer to the point made by the hon. Member for Glasgow North West, the instigator of the debate, I think that the most important way to help smaller charities is to reduce the costs and burdens associated with what the state can provide to charities. That includes what we did in Budget 2011, which made it clear that we intend to make it easier for charities to claim gift aid by introducing a new IT system that will allow charities to claim gift aid online and through, as I mentioned, the gift aid small donations scheme, which will allow charities of all shapes and sizes—we hope that it will be of particular benefit to small local charities—to claim top-up payments equivalent to gift aid on small cash donations of up to £5,000 a year, without the need to have gift aid declarations from donors. That scheme should commence in April of this year, and as I mentioned, it is expected that it will increase the amounts received by charities by about £100 million a year. It is my sincere hope that it will be put to very good use by smaller charities as well as others.

Oral Answers to Questions

Richard Fuller Excerpts

Wednesday 19th December 2012 Commons Chamber

[Mr Hurd]

The reality of the big society is that the public are enormously supportive of charities. Seventy-five per cent. of charities receive no funding at all from the state. Where they do, it is incumbent on us all—Members on both sides of the House—to send a very clear message to local authorities, as the Prime Minister has done, that we do not expect to see disproportionate cuts to the sector, and that we need to see the process being delivered in accordance with the compact.

[Richard Fuller (Bedford) (Con)]

One excellent way to support smaller charities is via the Public Services (Social Value) Act 2012, proposed by my hon. Friend the Member for Warwick and Leamington (Chris White) and strongly supported by the Government. Will the Minister update the House on progress with implementation of that radical change in procurement?

[Mr Hurd]

I join my hon. Friend in congratulating our hon. Friend on doing an extraordinary job in taking that private Member’s Bill through Parliament. I can assure him that we are about to issue the necessary guidance to local authorities.