Fly-Grazing of Horses

Debate between Richard Graham and Damian Hinds

Tuesday 26th November 2013 Westminster Hall

[Damian Hinds]

I certainly join my hon. Friend in those commendations. I echo what he said, which in turn echoed what the hon. Member for Wansbeck (Ian Lavery) said, about the large numbers of people who look after their horses extremely well. It seems that these irresponsible practices are concentrated among a relatively small number of individuals. As to my hon. Friend’s point about giving advice to local authorities, I am sure the Minister will pick it up.

On objectives for a legislative solution, we somehow have to break the cycle of horses being seized, going to auction and being bought back, with the result that the problem never decreases. Whatever the legislative solution, there must be options for rehoming and, sadly, for euthanising, where that is unavoidable in the worst cases.

[Richard Graham (Gloucester) (Con)]

This is an important issue, and we should all thank my hon. Friend for raising it. On the things we can do apart from changing the law, does he agree that the RSPCA must make absolutely full use of its existing powers to prevent foals and horses from dying in winter floods, as happened in Sandhurst lane, in Gloucester, last winter? My overwhelming sense is that the RSPCA moved too slowly. Has my hon. Friend come across other instances where it could have done more within its existing powers? We should not necessarily expect the law to do everything.

[Damian Hinds]

I do not know the specifics of that case, so I cannot comment on how quickly things were or were not done. On fly-grazing, I do know that the RSPCA and other charities are heavily overburdened and struggle to cope with their case load, which may be part of the issue.

Oral Answers to Questions

Debate between Richard Graham and Damian Hinds

Thursday 6th September 2012 Commons Chamber

[Richard Graham (Gloucester) (Con)]

1. What assessment he has made of the level of satisfaction of participants and businesses with the apprenticeship system.

[Damian Hinds (East Hampshire) (Con)]

6. What assessment he has made of the level of satisfaction of participants and businesses with the apprenticeship system.

Credit Unions

Debate between Richard Graham and Damian Hinds

Wednesday 23rd November 2011 Westminster Hall

[Damian Hinds (East Hampshire) (Con)]

It is a pleasure to see you in the Chair for this important debate, Mr Streeter. I know that we are competing against an Opposition day debate in the main Chamber and the appearance of Mr Patrick Vieira, so it is particularly good to see many hon. Members present. The subject matters to Members from all parties in the House. It is good to see at least four parties represented here already, with possibly a fifth quite soon.

I should declare an interest at the outset in that, like many hon. Members present, I am a member of a local credit union—in my case, United Savings and Loans, in Hampshire. I also chair the all-party group on credit unions, whose secretariat is provided by the Association of British Credit Unions Ltd.

The debate is timely, and that timeliness is to do with the making earlier this month of a legislative reform order that will come into effect in January. It is a key milestone enabler for the credit union sector that will boost the ability of credit unions to improve financial inclusion right across the piece. There are other timely aspects, such as the Government’s recent announcement on the modernisation fund and the exciting possibility of linking up credit unions with the post office network. More broadly, the debate is timely also because of the focus that we have these days on debt at all levels—national, corporate and individual—and because of the desire to re-encourage a culture of savings at a time when 4 million households in the country have no savings at all.

Several related debates are taking place within Parliament, such as on capping the cost of credit, debt management companies and credit brokerage. While those are not debates for today, I would not be surprised if hon. Members brought up aspects of them.

Credit unions have a huge growth opportunity in this country. The sector has already seen substantial and rapid growth over the past decade—between 200% and 300%, depending on which measure we choose. The growth fund, which was introduced under the previous Government, was a big part of that growth. There had already been substantial momentum for growth, but the growth fund also enabled credit unions to reach out to a new category of clients and members. Credit unions in Britain now have more than 800,000 adult members and more than 100,000 junior savers.

However, on an international level, membership penetration of the population by credit unions in this country remains small—a low, single-digit percentage, compared with almost a third in the United States and Australia, and almost half in Ireland. Before I am corrected, I should say that when I talk about credit unions in Britain being small, I am referring to Britain, not the United Kingdom, because in Northern Ireland, as in the Republic of Ireland, credit union penetration is massively higher than it is in England, Scotland and Wales. Globally, there are some 53,000 credit unions, with 188 million members across 100 countries. This model is not some newfangled idea or experiment; it has a great international, long-term record.

We are here to talk specifically about credit unions and financial inclusion. It is important to note that when we talk about financial inclusion or exclusion, the subject is not quite as binary as those terms suggest. It is not that someone is either included or excluded, but that there is a scale in between. No one has no access to any financial service whatever. The scale runs from one end—people trading derivatives on personal accounts—to the other, which is people borrowing money from the sort of lender whose idea of a late-payment penalty is a cigarette burn to the forearm. The question is not whether someone is absolutely included or excluded, but what sort of financial services they can access and at what cost.

A great deal of progress has been made on the entry level of financial inclusion, which is having a transactional bank account. In 2002-03, 10% of households did not have a bank account, and the latest figures suggest 4%. That, however, is still one household in 25, or 1.5 million adults in 1 million homes. Disproportionately, such households are single households, households with single parents and pensioner households, and they tend to be at the bottom of the income scale.

Not having a bank account matters on a practical level. Figures suggest that people could save between £125 and £215 just on utilities in the first year, because they could use direct debit. Interestingly and importantly, such savings can be wiped out by bank charges, particularly behavioural charges for people who are more used to dealing on a cash-only basis.

Broader than the question whether someone has a bank account is how much they pay. Risk will always be priced into credit. Different people will always pay different prices. However, it remains the case that some people pay massively more than others. In credit and other sectors, there is still a significant problem in that the poorest pay the most.

The Centre for Responsible Credit recently produced a good analysis and report, showing how much more the poorest pay for their credit than we—people with access to mainstream credit—do. It found that for every £100 borrowed for infrequent purchases, such as white goods, the cost of credit for people with access only to high-cost credit was on average 2.5 times as much as for people who accessed mainstream financial services. For annually recurring items, such as Christmas presents and back-to-school purchases, that figure rose to 10 times: the cost was £7.80 per £100 borrowed on a Barclaycard, and £71.90 if someone borrowed from home credit providers.

We are not talking about small numbers of people, even though sub-prime and high-cost credit is not an issue that many opinion formers and journalists are particularly aware of because they do not see some of the issues. The leader in the home credit market has 11,000 agents calling weekly on one home in 20 in the UK to collect repayments. Payday loan companies have between 1 million and 2 million customers per annum, and the segment is growing quickly. The leader in the rent-to-own market has 245 stores nationwide, with an ambition to more than double that. With rent-to-own in particular, the question is not only the advertised annual percentage interest rate, which is high enough, but the hidden costs that go with that, especially on the mark-up of goods and the additional cost of service cover.

Across personal credit, particularly to the most disadvantaged, although we could argue that this extends far beyond them, much of the emphasis is not on what they can afford to repay, but on what they want. Combining that with extensions and roll-overs, too many of the poorest and most disadvantaged people in society find themselves in a seemingly never-ending trap of debt, from which it is difficult to break out.

How do credit unions address financial inclusion? On transactional bank accounts, credit unions offer current accounts, and I have such a card with me. There are 33,000 active accounts through 25 different credit unions. Credit unions also offer affordable credit. Interest on loans from credit unions is capped at 26.8% APR, which is a small fraction of what someone might pay to high-cost and sub-prime lenders. Importantly, credit unions must have a balance between savings and loans, so they encourage savings. They are personal, community focused and responsible, and perhaps most importantly, they have an ethos about helping people. They are run by and for their members and are truly co-operative, without a profit motive.

One of the most important development and growth areas for the credit union sector recently has been forging partnerships to reach out to people at risk of financial exclusion. That can be groups of people who would identifiably be at risk of exclusion and a broader group who would, at certain times, be at risk of exclusion. To help such groups, many credit unions work actively with local community organisations, ethnic associations and so on. Some excellent work is being done in prisons to help offenders to prepare for release, rehabilitation and work. Leeds City credit union, for example, is undertaking a number of such projects. Care leavers are an important segment. There is a new financial savings product for children in care, and I hope that credit unions will take the opportunity to work actively in that area.

There is also a broader group of people who, at different times in their life, will face the trigger points at which the risk of financial exclusion becomes that much greater. For example, those trigger points can come when a person is setting up their first home or moving into a flat for the first time. The temptation of going down the high street and seeing the furniture and the flat screen telly in the window of the BrightHouse store is a real danger point, because if someone gets into the trap then, it may take them years and years, or perhaps longer, to get out of it.

There are also those who, perhaps through a change in circumstance—a change in job or the breakdown of a relationship—suddenly find themselves in rent arrears, and the problem can build up and snowball. Organisations such as the London Mutual credit union do a lot of great work with housing associations on exactly that area. By coincidence, right now, in the room next to this Chamber, the all-party parliamentary group on credit unions is holding a fair that showcases some of those partnerships, including London Mutual’s work with the Family Mosaic housing association.

Other types of partnership that credit unions engage in do something slightly different. Rather than just targeting people at risk of exclusion, they seek to grow to build up their self-sustainability and reach out to more people. An important way in which that can be done is with housing associations. Such a partnership is a great way to reach people—it is absolutely in the interests of the housing association that new tenants do not fall into rent arrears. They need tenants to become better at managing their finances and, ideally, to build up savings. Credit unions including my own, United Savings and Loans, do very good work in that area.

Payroll deduction schemes are another interesting and exciting development. They drive savings accounts, either through employer-based credit unions—credit unions can be community, employer or association based—or in partnerships. For example, we could see a community-based credit union partnering with local companies.

[Richard Graham (Gloucester) (Con)]

I congratulate my hon. Friend hugely on securing today’s debate and on his leadership of the all-party parliamentary group on credit unions. He mentioned the importance of the legislative reform order that is due to come in, and also alluded to the important role that housing associations can play in the spread of credit union membership, which we both agree is incredibly important. Does he not agree that there is a real opportunity for the National Housing Federation and the Local Government Association to go out there and encourage all their members to join their local credit union so that almost immediately the number of people across the country with access to loans and a place to deposit their money would increase sharply overnight?

[Damian Hinds]

My hon. Friend makes an important point. There is a great opportunity to expand the work between credit unions and housing associations. I hope that the number of those partnerships will increase greatly.

Some credit unions have been involved in payroll deduction savings accounts for many years. I had the privilege of visiting the Voyager Alliance credit union in Manchester. Based at the Stagecoach bus depot in Moss Side, the credit union runs a slick operation. When bus drivers and transport workers join the organisation, they frequently open a savings account from day one. Very small amounts go into the account from their wages. It is a bit like pay-as-you-earn in that they almost do not notice the deduction—well, they do notice it, but hon. Members know what I mean. Before they know it, a small nest egg has been built up, which is important for their financial stability.

The Police credit union does great work with a number of different forces. The Glasgow credit union, which is one of the most successful in the country, has 71 partnerships with different organisations to facilitate building up exactly this kind of savings account. The book on the power of nudge is required reading for all political anoraks these days, and we have talked about that mostly in the context of auto-enrolment pensions, but there is great potential for savings products as well.

Those are some of the things that credit unions themselves are doing, but as my hon. Friend the Member for Gloucester (Richard Graham) mentioned, deregulation of the sector and Government support are about to unleash a set of new and exciting opportunities.

Unauthorised Encampments

Debate between Richard Graham and Damian Hinds

Wednesday 8th September 2010 Westminster Hall

[Damian Hinds (East Hampshire) (Con)]

The debate title given in the Order Paper is “Unauthorised encampments and development in the countryside”; when that topic comes up, it is often accompanied by the words “Gypsies” and “Travellers”. When seeking this debate, however, I deliberately omitted reference to any community or tradition. I did so for the simple reason that most Gypsies and Travellers are not engaged in unauthorised development. What we are talking about today would be just as problematic for any community.

The vast majority of Gypsies and Travellers are entirely law-abiding. Four fifths of caravan pitchings are in authorised locations, and many more among these communities live in bricks-and-mortar homes. We are therefore talking about a small segment. We should acknowledge up front that Gipsy and Traveller communities face particular problems. In health and education, they are among the most disadvantaged groups—their life expectancy is 10 years less than the national average and their attainment at GCSE is less than half the national average. As politicians, we have to rise more fully to those challenges, to ensure good life chances for all. Without doubt, the provision of decent sites in workable locations is an important part of that; so, too, is mutual understanding with others in the community, to ensure that everyone is on board.

As I said, most Gypsies and Travellers are entirely law-abiding, but the small segment who are not—those who occupy land illegally or make unauthorised developments to land that they own—can sour relations with local communities. That, in turn, can make it harder to secure the improvements in life chances and outcomes that we all want to see.

Problems that arise can be roughly categorised under one of three headings: first, trespass and occupation of public land by Gypsies and Travellers; secondly, their trespass and occupation of private land; and thirdly, unauthorised development on land owned by them. That last category has seen big growth in recent years and is the source of the greatest problems in my constituency of East Hampshire—and, I dare say, in many other constituencies.

Since 2004, there has been a national increase of more than two thirds in the number of Gypsy or Traveller caravans stationed on unauthorised sites owned by Gypsies or Travellers. I note in passing that that increase occurred at the same time as a large increase—indeed, in absolute terms a much larger increase—in the number of authorised sites.

This is a typical scenario. Someone buys a field from a farmer to keep horses, for example; after a while, an electric line and water supply are installed in connection with the keeping of the animals; then, over a weekend or a bank holiday, one or two caravans or mobile homes arrive, along with the heavy machinery needed for laying a hard surface and other works. A retrospective planning application is then made. It often turns out that the field in question is located on the edge of a settlement in what the planners define as a sustainable location. Temporary permission may be given, and so a cycle begins.

It is said by some that local authorities have only themselves to blame because they do not make adequate provision for sites within their borders—even if, for example, a site is available just outside the boundary. The assumption may be that one new authorised site will mean one unauthorised site less, but that will not always be so. Nevertheless, I repeat that I support provision of good authorised sites, and I welcome the Government’s inclusion of Traveller sites in the new home bonus scheme; I hope and trust that that will result in more sites.

Hon. Members may have read in the press about the village of Ropley in my constituency. The local community woke up to find that a Traveller site had been developed overnight. It was not the first in the area. The villagers knew that the matter could lead to months or years of appeals and uncertainty. So little faith did they have that the matter would be resolved that they clubbed together through voluntary subscription to buy the site at a substantial premium over what it had changed hands for previously.

If a small village community feels compelled to find a six-figure sum because they simply have no faith in the fairness of the legal and planning systems, there is clearly something wrong with the system. We need to find new ways to deal with the problems of unauthorised development and encampments in which the whole community can have confidence. People want fairness; they want to see the same rules applying to all.

[Richard Graham (Gloucester) (Con)]

I am grateful to my hon. Friend for giving way. I entirely support his proposals, and I congratulate him on securing the debate. Does he agree that, in trying to rebalance things to recognise the human rights of those who live next to Travellers’ unauthorised sites, we should give greater recognition to those already living in the location, tipping the balance away from what was proposed by the previous Government? They appeared to favour greater human rights for those who illegally occupy sites, such as the three that have been occupied in Gloucester during the last 12 months. They are all public sites and the most recent is on school land.

[Damian Hinds]

I thank my hon. Friend for that intervention. What he says goes to the heart of the issue. I believe that people want to see not so much a tipping of the balance towards or away from one group or another; they want to see the same rules applying to everyone. That is what underpins the compact of a cohesive society.

Some steps are already being taken. I welcome the announcement made by the Department for Communities and Local Government on 29 August, which revokes flawed Whitehall planning circulars. It gives new incentives to provide sites, which is important, and it gives stronger tenancy rights to Gypsies and Travellers on official council sites. The Secretary of State said in the same announcement that he was looking for new ways to empower local authorities to deal with rogue developments. I wish to suggest one, and I would be interested to hear the Minister’s opinion of it.

I understand that there is a role for retrospective planning applications, but it must be possible to construct a set of principles that allows for genuine mistakes yet excludes the wilful abuse of the system to create wholly new dwelling places. That would not solve every problem, but it would go some way to restoring public confidence in the system, which has become badly discredited. I hope that the Minister and his colleagues will consider the idea.

I conclude where I started, by stressing that we are talking about the actions of a small segment of the Gypsy and Traveller community. We need fairness and equality before the law. I am confident that that would aid rather than impair community cohesion and mutual understanding, with further improvement of the conditions and outcomes for members of the Gypsy and Traveller communities. I know that many hon. Members wish to speak, so I shall stop there. I look forward to hearing their contributions.