Covid-19 Update

Debate between Sajid Javid and Stephen Doughty

Thursday 13th January 2022 Commons Chamber

[Sajid Javid]

I thank my hon. Friend for his comments and support for the changes that I have announced today. He is right to point to a key difference in our approach during the omicron wave compared with any other country in Europe—and, I think, any other large country. It is not by accident that we have been the most open and freest country in Europe; it is by design. It is because we have rightly focused on the booster programme, with 79% of eligible adults boosted—the most boosted country in Europe. We have more antivirals per head than any other country in Europe. We are testing more than any other country in Europe. It is those pharmaceutical defences that will allow us to live with covid, to keep businesses open, to protect the life chances of our young people and to keep our country open and free, just as he wants to see.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I am sure that the Secretary of State will want to join me in paying tribute to the staff at Cardiff and Vale University Health Board for their work on the booster programme. He will know that statistics show that Wales is joint first in Europe—we are actually ahead of the UK average—on delivery of boosters, which can only be a good thing for our population. Will he say a little about what the JCVI is discussing and what his view is on further boosters for people who are older and more vulnerable and the immunosuppressed, and the use of polyvalent vaccines going forward? As we open up further, people will be deeply worried about that, particularly with waning boosters. Will he talk a little about the plans for further jabs for the most vulnerable?

[Sajid Javid]

I join the hon. Gentleman in commending Wales for the roll-out of its booster programme. In fact, in Scotland, Northern Ireland and every part of the UK we have seen a very good, positive approach that is protecting more and more people. In terms of the JCVI, I point him to two recent announcements that he may be aware of. First, just before the Christmas break, the JCVI recommended to the Government that at-risk five to 11-year-olds be offered the paediatric vaccine. I have accepted that and that will start this month; I believe that that will start across the UK, including Wales. Secondly, we received another recommendation, I think at the end of last week. After looking carefully at the very latest evidence—some of the evidence from the UKHSA that I referenced in my statement—the JCVI decided that we should not offer a fourth dose to over-85s, or others at risk at this point. It was comfortable that the protection that is provided—it looked at waning protection—was still incredibly strong for older people.

Covid-19 Update

Debate between Sajid Javid and Stephen Doughty

Monday 12th July 2021 Commons Chamber

[Sajid Javid]

I understand the importance of the point my hon. Friend has made. As I said in response to another question, the date of 16 August is based on the best advice that we can get at this point in time. He may be interested to know that, as well as the test and trace system, there is the NHS covid app. A number of people have referred to the so-called pinging. I want to take a careful look at this to ensure that it can also provide a more proportionate and balanced system, given the rate of vaccination.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

There is understandable concern among those who are immunosuppressed, particularly those with blood cancers, about the effectiveness of vaccines and I know that the Secretary of State mentioned this earlier. Can he be really clear: are the vaccines working? Will those people get booster doses early? When will detailed and specific advice on the whole range of conditions be available? I declare an interest, as somebody in my own family and many of my constituents are affected. When will they get clear advice so that their concerns can be put to one side?

[Sajid Javid]

The hon. Gentleman is right to raise this issue. The vaccines are working and I have set out clearly why. The Government have published much evidence on that. The booster programme begins in September and the immunosuppressed and clinically vulnerable will get priority in that; they will be in the initial cohort. The advice that I referred to earlier will be published today.

Serious Violence

Debate between Sajid Javid and Stephen Doughty

Wednesday 15th May 2019 Commons Chamber

[Sajid Javid]

What I am talking about specifically is targeted youth intervention to stop young people turning to crime, in this instance serious violence. The right hon. Lady was, I think, referring to youth services more broadly, perhaps those provided by local councils, which are more universal in nature. My focus is much more targeted. As I said a moment ago, I went to see the OnSide youth zone project in Dagenham, which is supported by the local authority and others. That is a much more universal project. I welcome that kind of work as well, but I am not sure that we are comparing like with like when we talk about universal versus targeted services.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

If we do not engage with young people in the first place, how can we target them? I have seen the amazing work that youth services do in my constituency. I have particular praise for Llanrumney Phoenix boxing club and Tiger Bay boxing club, which are doing brilliant work with youth services and partners across the piece. They are also working with South Wales police, helping hundreds of young people in my constituency.

However, the facts are exactly as they were presented by the Chair of the Home Affairs Committee, my right hon. Friend the Member for Normanton, Pontefract and Castleford (Yvette Cooper). Between 2012 and 2016, 600 youth centres have been closed, 139,000 places have been lost, and £760 million has been cut from youth service budgets. Half the youth service in London has been lost under the Home Secretary’s governance. How on earth will the little pot of money that he has announced offset that huge cut, and that huge lack of engagement with young people?

[Sajid Javid]

I do not think that this is a small pot of funding. I have referred to the £200 million that is targeted at early intervention, and I think that will make a difference. For example, I am supporting Redthread, whose work in trauma units in hospitals will be extended to London, Birmingham and other places.

Places of Worship: Security Funding

Debate between Sajid Javid and Stephen Doughty

Tuesday 7th May 2019 Commons Chamber

[Sajid Javid]

I welcome the hon. Gentleman’s comments. On the Ramadan package in particular, we are working with an organisation called Faith Associates, which has experience in this area. It is planning to hold a series of workshops across England and Wales with firms and in the community, and is also working on guidance that will be issued to the 2,000 mosques, Muslim schools and community groups. That is the first part of the package, but we want to align it with the other parts of what I have announced today. If as a result of that engagement an organisation feels that it needs to apply for enhanced security, we will consider it as part of the places of worship scheme, and if it feels that it could benefit from the training package, we will consider that as well.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

There is huge religious diversity in my constituency. Concern has been expressed not only about local incidents but, obviously, about the global terror incidents that we have seen. There has been some concern about the length of time between March and the availability of the new funding in July. Given what the Home Secretary has just said about the Ramadan package and given that we are already in the month of Ramadan, will he tell us whether any of those workshops have taken place yet, and whether, to his knowledge, that guidance has been distributed?

I remain deeply concerned about the neo-Nazi, extreme-right organisations that are targeting communities throughout the United Kingdom, especially Muslim and Jewish communities. Can the Home Secretary update me on the organisation System Resistance Network, which has been active in my south Wales constituency? It is simply an offshoot of National Action, and I have called for it to be proscribed.

[Sajid Javid]

The hon. Gentleman has asked me specifically about the workshops in the Ramadan package, and about the guidance. If he will allow me, I will write to him, because I do not have the information to hand. As for the proscription of groups, whatever type of terrorism or extremism they preach, we take that incredibly seriously. The hon. Gentleman will know that ours was the first Government to proscribe a far-right organisation, National Action. If any proscribed organisation comes up with aliases or tries to get around the rules, we take that very seriously as well.

Windrush Compensation Scheme

Debate between Sajid Javid and Stephen Doughty

Wednesday 3rd April 2019 Commons Chamber

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

Will the Home Secretary publish a comprehensive breakdown of all those wrongfully detained or deported by his Department as a result of the hostile environment, on top of the Windrush victims?

[Sajid Javid]

The hon. Gentleman will be well aware that we regularly supply a letter to the Select Committee containing much information on the scheme, and I will take his suggestion into account.

Oral Answers to Questions

Debate between Sajid Javid and Stephen Doughty

Monday 1st April 2019 Commons Chamber

[Sajid Javid]

I have seen the letter to which my right hon. Friend refers. I found it totally unacceptable, and it is not in any way in accordance with policies at the Home Office. I have ordered an urgent investigation and not ruled out any further action.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

T2. The Home Secretary talked about the epidemic in knife crime, which has tragically affected my own constituency with young people being killed and injured. We heard from senior police officers in the Home Affairs Committee last week about the £100 million that has been provided; they said that it simply was not enough to tackle the scourge. By comparison, 10 times that amount has been provided for Brexit. There have also been huge cuts in youth services across the country. What will he do to provide the resources that our police and all our services need to keep our young people safe?

Oral Answers to Questions

Debate between Sajid Javid and Stephen Doughty

Monday 25th February 2019 Commons Chamber

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

T10.   Earlier the Home Secretary was asked about delays to the Windrush compensation scheme. There have been reports this week that one of the reasons for the delays is that he has apparently requested an extra £150 million from other Cabinet colleagues and from the Treasury, otherwise the scheme will not be able to go forward. Is it is true that he has made such a request to the Treasury or the rest of the Cabinet? If so, for how much, and is this why the scheme is being delayed?

[Sajid Javid]

I am clear that I want the Windrush scheme to be as generous, straightforward and easy to use as possible, and that commitment is shared throughout the Government.

Future Immigration

Debate between Sajid Javid and Stephen Doughty

Wednesday 19th December 2018 Commons Chamber

[Sajid Javid]

I thank my right hon. Friend, who speaks from experience as a former Immigration Minister. He asks a perfectly good question about how we can continue to attract the best and the brightest, especially if we are focused too rigidly on salary. One way we intend to do that in the new system is by taking a recommendation from the Migration Advisory Committee on shortage occupation lists. We will take that further, make it more dynamic and responsive, and review it more regularly. That will allow us, as it does in the current non-EEA immigration system, but much more effectively, to set lower salary thresholds for shortage occupations.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I will look very closely at what the Home Secretary has set out in the Immigration White Paper. We have heard many different stories about what it will include, but I am not sure we can entirely believe all of them, given the disputes we have seen between him and the Prime Minister.

I want to ask the Home Secretary a very specific question about immigration enforcement at our border in relation to no-deal planning. The permanent secretary of his Department told us on the Home Affairs Committee just a few weeks ago:

“It is not part of our contingency planning to deploy the armed forces.”

I pressed him on this, and he said again:

“It is not part of our no-deal planning that we would deploy the armed forces, for example, at the border.”

Was the permanent secretary misleading the Committee, or was it a surprise to the Department this morning when it was told that the Army could be deployed at the border for immigration enforcement and other purposes?

[Sajid Javid]

Of course, there is no-deal planning going on in the Home Office, as there is in every other Department. We do not expect it, but we need to plan for all contingencies. We are hiring more Border Force officers, and there will also be a taskforce, which is already being set up, and some of the new funding for those Border Force officers has already been announced. As for the use of soldiers, whether reservists or regulars, there is a broader plan—it is not part of the Home Office’s plan—to have up to 3,500 soldiers available for civil work as and when they are needed.

Offensive Weapons Bill

Debate between Sajid Javid and Stephen Doughty

2nd reading: House of Commons & Money resolution: House of Commons
Wednesday 27th June 2018 Commons Chamber

[Sajid Javid]

I hope that my hon. Friend will agree with what I say about the Bill’s provisions on the sale of knives and on the possession of knives and acid—I will come on to certain firearms later. Taken together, these measures will help. However, as I said to our hon. Friend the hon. Member for Romford (Andrew Rosindell), other measures in the serious violence strategy will also help to make a big difference.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

A young man in my constituency was tragically murdered in an incident in Liverpool recently, and unfortunately we in Cardiff and the Vale of Glamorgan have also seen a rise in incidents involving knives. I am deeply worried about material glorifying violence that is shared online in closed social media groups and other forums. What is being done to tackle the sharing of such material online?

[Sajid Javid]

The hon. Gentleman is right to talk about how, in some cases, social media contributes to the rise of such crime. That was the main topic of conversation at the last meeting of the serious violence taskforce, and soon afterwards we unveiled the new social media hub on serious violence, which will work with internet companies to track down that kind of material. In some cases, that material will be taken offline and, in others, an alternative message will be put out. We are very alive to this and are responding with fresh funding, but I want to see what more we can do in that space.

I have seen at first hand the fantastic job that our police do to protect the public and to help to keep this country safe, but they cannot tackle serious and violent crime alone. We must all work together. I am committed to taking strong action to end this blight on our communities. My predecessor, my right hon. Friend the Member for Hastings and Rye (Amber Rudd), published the comprehensive new serious violence strategy to which I just referred on 9 April. This marks a major shift in our approach to violent crime and is supported by an extra £40 million of new funding. It shows that the increase in violent crime is due to a number of factors, so this debate should not just be about police numbers, as is so often the case when we discuss such issues. I remind the House that this Government have increased police funding in England and Wales by over £460 million this year, and I have been clear that police funding will be a priority for me in the next spending review.

As the strategy makes clear, the rise in violent crime is due to many factors, including changes in the drugs market. A crucial part of the strategy is also about focusing on early intervention and prevention, which is why we are investing £11 million in an early intervention youth fund, running a national campaign to tell young people about the risks of carrying a knife, and taking action against online videos that glorify and encourage violence. To oversee this important work, we have set up a taskforce that includes hon. Members from both sides of the House, the police, the Mayor of London, community groups and other Departments. I hope that this is just the first stage of us all working together across parties and sectors.

The Bill covers three main areas: acid attacks, knife crime and the risks posed by firearms.

Cannabis-based Medicines

Debate between Sajid Javid and Stephen Doughty

Tuesday 19th June 2018 Commons Chamber

[Sajid Javid]

My hon. Friend is absolutely right. We will certainly be looking at international evidence. A lot has changed in the UK since the current rules were put in place, and we will take all that into account.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I welcome what the Home Secretary has said today. I have long supported decriminalisation of the use of cannabis for medicinal purposes, not least having heard some really heartbreaking stories from my own constituents, particularly those with degenerative conditions, some of whom, sadly, passed away unable to get the pain relief and support that they needed. Given the speed at which this review will be undertaken, will the Home Secretary, the Policing Minister and the Attorney General be giving any guidance in the interim to police forces or the Crown Prosecution Service on the public interest in pursuing the impounding of material, or prosecuting individuals who are using it for medicinal purposes?

[Sajid Javid]

The current rules are clear. We have discussed today and debated in Parliament how we would like to see a change in the process, but until those rules change, they would have to be applied. The hon. Gentleman raises a perfectly good point about working with law enforcement agencies and making sure that they are taking emerging policy into account.

Counter-Terrorism and Border Security Bill

Debate between Sajid Javid and Stephen Doughty

2nd reading: House of Commons & Money resolution: House of Commons
Monday 11th June 2018 Commons Chamber

[Sajid Javid]

I am happy to give my hon. Friend that assurance. I think that the whole House has commended Detective Sergeant Nick Bailey for what he did and how he put himself in the line of danger just doing his job—as I am sure he would put it. We will work with him, through Wiltshire police and others, to make sure that he gets all the support that he needs.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

Given what the Home Secretary is saying about Russia’s attempts to undermine our society and engage in very hostile acts such as the one in Salisbury, will he say a little about the allegations that we have read about over the weekend in The Observer, The Sunday Times and elsewhere about other Russian attempts to potentially undermine parliamentary democracy and our democracy in this country? What steps is he taking to work with other Departments—notably the Treasury and the Department for Digital, Culture, Media and Sport—the Security Service and others to ensure that Russia is not attempting to influence and carry out potentially illegal activities in other areas?

[Sajid Javid]

The Cabinet Office is the Department responsible for overseeing elections and looking at allegations of that type. I know that it is taking this issue seriously. Alongside my Department, it is looking at intelligence and other information it is receiving. The two Departments are working closely together on this issue. I assure the hon. Gentleman that we are taking it very seriously indeed.

It is because of hostile state activity that the Bill provides new powers to stop, question, search and detain people at ports, airports and the Northern Ireland border to determine whether they are spies or engaged in other types of hostile state activity. If it is confirmed that someone is a spy, they could be refused entry, deported or have other action taken against them. Those powers will of course be subject to strict safeguards and robust oversight to assure their proper use at all times.

--- Later in debate ---

[Sajid Javid]

The hon. Gentleman mentioned YouTube, and I think—if I remember the number correctly—that it has removed something like 300,000 pieces of terrorist material. There is, however, a lot more that needs to be done not just by YouTube, but by many other internet companies. There is already an ability for the Government or, more likely, the police and other trusted organisations to flag up certain content on the internet, whether videos, stills or other types of content. So far this year, we are seeing a marked improvement in the speed with which that content is being taken down. In many cases, it is being taken down within the hour.

The hon. Gentleman may be interested to know that what has also grown considerably in relation to taking down content is the use of machine learning—trying to have the right algorithms to take down content much more quickly. For example, Facebook removed some 1.9 million pieces of content in the first quarter of this year, which is up some 70% on the same quarter of last year. In many cases, the content is being removed within minutes, and in some cases it can be stopped even before it is uploaded.

[Stephen Doughty]

Further to the point made by my hon. Friend the Member for Bermondsey and Old Southwark (Neil Coyle), I was very concerned to hear, when the companies appeared before the Home Affairs Committee, that they are not routinely searching even for the basic list of all proscribed organisations. I accept that some of this is stuff is in quite a grey territory and may sometimes not be picked up by machine learning, but one would expect that they, at a very basic level, would be searching for the names of proscribed organisations. I have found multiple examples of such content, including from Northern Irish terrorist organisations and others, on all these platforms that is not being removed even by the most basic checks. Why can we not compel the companies to do this?

[Sajid Javid]

The hon. Gentleman makes another good point in this debate. He is right to say that many leading internet organisations were not searching for proscribed organisations, or certainly not for all of them. So far this year, however, there has certainly been a significant improvement. We are monitoring this ourselves, and we are in constant dialogue with those companies. I am not going to pretend that every single one of them is doing that now, but there has been a huge improvement.

Windrush

Debate between Sajid Javid and Stephen Doughty

Wednesday 2nd May 2018 Commons Chamber

[Sajid Javid]

Bonuses are paid in some parts of the senior civil service. If they are, that is not a matter for Ministers. Ministers will not get involved. In the case of my Department, it would be the permanent secretary and other officials he would work with.

We want to make sure that we are putting all our resources into helping with the situation that has been created, doing everything we can. However, putting it right does not mean that we divert our time and effort into some massive, open-ended fishing expedition. The motion in the name of the right hon. Member for Islington North (Jeremy Corbyn) and others is disproportionate and distracting. It would take help and capacity away from where it is needed by reassigning more than 100 officials, and that would of course create significant cost for taxpayers.

[Stephen Doughty]

With regard to officials, the Home Secretary did not, with the greatest respect, give an answer to my hon. Friend the Member for Hornsey and Wood Green (Catherine West) on the issue of bonuses. Have senior officials, including Hugh Ind, Mandie Campbell—a former member of staff—Glynn Williams or Philip Rutnam, received bonuses related in any way to removals, deportation or detention targets: yes or no?

[Sajid Javid]

Like the hon. Gentleman, I am aware of some of the reports on that this morning. I have not personally had time to look into the particular issue of who may or may not have received bonuses. However, as I said, if there are senior civil servants who have received any bonuses, it is a matter for officials, not for Ministers.

Windrush

Debate between Sajid Javid and Stephen Doughty

Monday 30th April 2018 Commons Chamber

[Sajid Javid]

I thank my right hon. Friend for her remarks. I can make this commitment to her. We need to make sure that when dealing with inquiries from the public, the immigration system behaves more humanely and in a more fair sense, and that it takes more into account what I would call the obvious facts, rather than just asking for a piece of paper to prove everything. I will look into the matter very carefully.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I say to the new Home Secretary that it is not that, as he says, this could be happening to a wider group of people than those in the Windrush generation, but that it is happening, and it is because of the “hostile environment” policy, the cuts and pressures in his Department and the cuts to legal aid, discretion and appeals. How many people are his Department aware of who have been wrongfully deported or detained? In the midst of last week’s discussions, we were told that the Home Office was going to scrap the net removal target that has been at the heart of this argument; will the Home Secretary commit now to removing it?

[Sajid Javid]

First, if the hon. Gentleman knows of any cases of other affected people of which he thinks my Department might not be aware, please will he make me aware? He asked whether I am aware of any cases of wrongful deportation; I am not currently aware of any cases of wrongful deportation. He talked about the so-called hostile environment; let me say that hostile is not a term that I am going to use. It is a compliant environment. I do not like the term “hostile”. The terminology is incorrect and that phrase is unhelpful, and its use does not represent our values as a country. It is about a compliant environment and it is right that we have a compliant environment. The process was begun under previous Governments and has continued. It is right that we make a big distinction between those who are here legally and those who are illegal.

Anti-Semitism

Debate between Sajid Javid and Stephen Doughty

Tuesday 17th April 2018 Commons Chamber

[Sajid Javid]

We have no plans to review the law on this, because we also value freedom of speech, but of course when it comes to hate speech, whether it is online or offline, we must act decisively. This question has been raised by Members in the past, and if the hon. Lady believes that there is a wide body of opinion in favour of considering it, I would be happy to listen to her arguments.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

On a specific point, I reported a very clear anti-Semitic mural and image to Facebook, which came back to me and told me that it should not have to be removed, stating the usual reasons for not removing other forms of extremist material. Does the Secretary of State not agree with me that it is a high time we took serious action against Facebook, YouTube, Google and all those who continue to propagate extremist material of all sorts on the internet?

[Sajid Javid]

The hon. Gentleman is right to make that point, because there has been a lot more done in recent years to work with the internet giants—Facebook, Google and others—to get them to do much more to take down hate crime, hate speech and hate videos of any type. He is clearly saying that more can be done. More is being done and the speed at which things are coming down once they are reported is faster than ever before, but I agree with the general direction of his comments. More needs to be done.

Anti-Semitism can be found in both extremes of the political spectrum, far right and far left. The British public has a strong record of keeping those fringes out of major parties and out of this Chamber, but although I would much rather that this issue transcended party politics, as other forms of racism have for a long time, we cannot and must not ignore the particular concern with elements within the Labour party, and nor can we ignore the fact that this increasing concern is correlating with the current Leader of the Opposition and the waves of activists that have come with him. I can understand that acknowledging these facts is not an easy thing to do. The easy thing to do is to displace responsibility by bashing the media or blaming Tory attacks, or worse, as some activists have been doing, intimidating those Labour MPs who have taken a clear stand against anti-Semitism.

Grenfell Tower Fire/Fire Safety

Debate between Sajid Javid and Stephen Doughty

Monday 26th June 2017 Commons Chamber

[Sajid Javid]

Birmingham City Council, like every other council, has a legal responsibility to its social tenants, so it should do whatever it believes is necessary. As I have said before, if there is an issue with funding for necessary works, we will provide the support.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

May I praise the swift response of the Welsh Government and Cardiff Council in responding to the concerns of residents in Cardiff South and Penarth, which has more than 14,000 apartment units, and urge Vale of Glamorgan Council to come up with some answers as soon as possible?

Will the Secretary of State look at the issue of estate management companies? I have seen very variable records of action on fire safety and response to concerns across many privately owned tower blocks in my constituency. Quite frankly, some of them are not living up to their responsibilities in terms of staffing, resourcing and looking at issues such as fire door, sprinkler and fire alarm safety.

[Sajid Javid]

The hon. Gentleman makes a very good point. One of the lessons from this tragedy and what we are learning now is that we should look at the private sector much more carefully, including estate management companies.

Housing and Social Security

Debate between Sajid Javid and Stephen Doughty

Thursday 22nd June 2017 Commons Chamber

[Sajid Javid]

There was a deplorable record on building social homes, but that was the record of the previous Labour Government. As the hon. Lady will hear shortly, as I rightly talk about their record, during the 13 years that Labour was last in office we saw, for example, a decline in socially rented homes of 420,000 units.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

We of course have a Labour Government in Wales who are committed to building 20,000 new homes, and who are building new social and council housing in Cardiff as I speak. Does the Secretary of State agree that lessons also need to be learned from Wales about its different approach to fire safety, including the fact that we introduced measures requiring sprinkler systems to be fitted in new high-rise buildings and converted buildings? There are a lot of lessons to be learned from Welsh Labour. Will he listen to them?

[Sajid Javid]

When it comes to fire safety, I think we should learn lessons from wherever we can—whether Wales or elsewhere. The hon. Gentleman will know that, since 2007, there has been a requirement for new buildings to have sprinklers.

Budget Resolutions

Debate between Sajid Javid and Stephen Doughty

Thursday 9th March 2017 Commons Chamber

[Sajid Javid]

I will plough on, but I will give way again shortly.

Figures released since the autumn statement have provided further evidence of the fundamental strength and resilience of the UK economy. Growth is forecast to hit 2% this year, the deficit is on course to reach its lowest level in two decades, and debt as a proportion of national income is forecast to begin falling in 2018-19 for the first time in more than 15 years.

[Stephen Doughty]

If we borrow money, of course we must pay it back. Why was there no mention of Brexit in the Budget, given that, according to the Office for Budget Responsibility, the cost of Brexit to the public finances could be an extra £58 billion? That is a huge sum, which we would have to repay.

[Sajid Javid]

My right hon. Friend the Chancellor talked about leaving the European Union. In fact, I think that that was one of the first things that he mentioned in his Budget statement. It is a shame that the hon. Gentleman was not listening.

Most important, the success that I have described is being felt in the pockets of ordinary working people, with real wages forecast to rise in every year up to 2020-21. Britain is home to more private sector businesses than ever before, and that is providing more jobs than ever before. We have gone from record-breaking recession to record levels of employment. But of course we are not complacent: there is much more to do. Going on a wild spending spree simply because of improved growth forecasts would be like going down the pub to celebrate the extension of an overdraft. Our focus on sustainable, stable public finances must continue, and the Budget provides for exactly that.

UK Steel Industry

Debate between Sajid Javid and Stephen Doughty

Tuesday 12th April 2016 Commons Chamber

[Sajid Javid]

I will come on to trade defence instruments in just a moment.

I want to talk about the delivery of a new flexibility on emissions regulations. This was asked for by the industry and we have delivered, potentially saving the industry hundreds of millions of pounds. We have also taken action on procurement, and we have become the first country anywhere in Europe to take advantage of EU rules to make it easier for the public sector to buy British. That is on top of our proud record of procuring British steel.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

The Secretary of State makes much of the changes he is making on procurement. The Minister for Defence Procurement, the hon. Member for Ludlow (Mr Dunne), who is sitting next to him, told me in answer to a recent question that the Ministry of Defence did not even have full records of where it was getting its steel from for UK defence projects. How can we be sure that the Secretary of State will follow through on his commitment on procurement when Government Departments are not even keeping records and when so many UK defence projects are being made in Korea, China and elsewhere?

[Sajid Javid]

The hon. Gentleman might hear more from the Minister for Defence Procurement in the coming days, but I can tell him that the two new Queen Elizabeth class aircraft carriers are being built with almost 100,000 tonnes of British steel, that Crossrail, the biggest construction project in Europe, is using almost exclusively British steel for its 26 miles of tunnels, and that 96% of Network Rail’s spending on steel rail goes directly to British firms. It buys 1,500 miles of steel rail every year from Tata in Scunthorpe. That is enough to build a two-track line from London to Edinburgh.

--- Later in debate ---

[Sajid Javid]

We have led the way in taking action, which has resulted in the right tariffs, which have helped the steel industry while protecting producers and consumers. My hon. Friend will agree that when action is taken through tariffs, we want to ensure that they are at the necessary level to help the industry without hurting consumers and producers.

[Stephen Doughty]

Will the Secretary of State give way?

[Sajid Javid]

I will give way once more on this.

[Stephen Doughty]

While we are still on tariffs, the Secretary of State mentioned the tariff on rebar and the drop in production. Increasing the tariff in that industry is obviously crucial, but other facts are at play. Rebar exports shunted up production before the tariffs came in, so we may have seen a drop-off due to that; there are also the exchange rate differentials. Does the Secretary of State still think that the rebar tariffs are high enough or should they be even higher to deal with the changes going on in that industry due to other factors?

[Sajid Javid]

We should always be driven by the evidence. The 99% fall in imports year on year, resulting from the tariff, suggests that it is effective, but we should always keep the situation under review and ensure that it remains effective.

UK Steel Industry

Debate between Sajid Javid and Stephen Doughty

Monday 11th April 2016 Commons Chamber

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

There is a real danger that the Secretary of State is at times presenting the idea that everything has been done and that he has done everything in his power. Let us look at the issues facing the industry as a whole. On energy, we still see prices that are 89% higher than those of European competitors. On procurement, the Ministry of Defence is not even keeping records of where its steel comes from; and on tariffs, he says he will do everything, but, as we have just heard, he will not take action to scrap the lesser duty rule and to change it, and this country is being seen as the ringleader on this in Europe. What is he going to change in those industry fundamentals that will prevent us from seeing crisis after crisis after crisis in the steel industry?

[Sajid Javid]

Let me pick up on one of the three important issues affecting the industry that the hon. Gentleman has identified—energy costs. One reason why those costs are higher for energy-intensive industries in Britain—in fact, it is the key reason—is the Climate Change Act 2008, which he would have supported and which was introduced by the last Labour Government. [Interruption.] The Conservatives did support it, but ever since we have been working on mitigating some of the problems it created for industry. I would have thought the hon. Gentleman supported that.

UK Steel Industry

Debate between Sajid Javid and Stephen Doughty

Monday 29th February 2016 Commons Chamber

[Sajid Javid]

No, I do not, because, as I have said, the lesser duty rule is there to create a level trading field. As I have also said, under the existing rule, tariffs can be higher, and in many cases should be higher. However, they were not set too low because of the lesser duty rule. The problem was the time period used by the Commission in its calculation.

[Stephen Doughty]

The Secretary of State specifically mentioned rebar. As he knows, that is a major product produced by Celsa in my constituency. It is a very high-quality product that has been used in Crossrail and many other projects. Does he expect that tariffs on rebar, specifically, will be higher against the unfairly traded Chinese steel—yes or no?

[Sajid Javid]

The hon. Gentleman is right that it is suggested that tariffs should be higher to right the detriment. We agree; that is what our analysis shows. That is exactly what we are pushing with the EU Commission, as I did only last week when I met the Trade Commissioner while she was in London.

--- Later in debate ---

[Sajid Javid]

If the hon. Lady means what she has just said, which is that she wants a level playing field, we are in agreement, but the entire argument she made moments ago was for punitive tariffs, which would drive up prices for businesses and consumers and risk potentially ruinous retaliation from other nations. Artificially over-inflating the price of imported steel would have a hugely damaging effect on British companies further up the manufacturing chain. Of course, I would like to see such companies using British steel rather than cheaper, lower quality imports, and let me take this opportunity to urge them to do so. However, forcing them to buy British steel by making imported steel prohibitively expensive is not the way to make that happen. Higher duties on imports of raw materials eventually mean higher prices paid by manufacturers and consumers alike, putting countless more jobs at risk.

[Stephen Doughty]

This crucial point is at the heart of this debate. Nobody is calling for punitive measures; we are asking for a level playing field. If we do not level the playing field when other countries, such as the US, are willing to put up their tariffs, this country will get a double dose of the dumping. The effect will be increased if we do not take action. We do not want a trade war; this is simply about levelling the playing field for the British industry.

[Sajid Javid]

That is exactly what we are delivering on and what the current framework allows us to do.

--- Later in debate ---

[Sajid Javid]

That is an excellent question, and that was the second ask from the industry. Let me address the first ask, and I will come right back to that point.

The first ask was for lower energy bills. We will shortly be paying compensation on renewable energy costs, and we are in the process of securing agreement to exempt energy-intensive industries from such costs. The second ask was for more British steel to be used in public building projects. We have issued updated procurement guidance to all Departments to make it clear that they can now take into account wider socioeconomic considerations, as well as cost, when making purchasing decisions. We are the first member of the European Union to be able to use those new rules. We have also mapped rough estimates of steel that could be used for major projects including High Speed 2, new nuclear and offshore wind. We have shared those estimates with industry and will continue to keep it updated.

[Stephen Doughty]

It is interesting to hear what the Secretary of State is saying about the procurement guidance being given to Departments. The Ministry of Defence has told me in answer to a written question that

“the Ministry of Defence (MOD) does not hold a complete, centralised record of steel procurement for projects and equipment, either in terms of quantity or country of origin”.

Can the Minister explain why that is, and does he think that it is satisfactory? How will we ensure that Departments meet the procurement guidelines that he has set out for them if the MOD is not even keeping records? I am not talking about specific projects, but it needs to keep records; otherwise we cannot tell whether it is doing what he says it should be doing.

[Sajid Javid]

The hon. Gentleman will be pleased to know that we are working with all Departments, including the Ministry of Defence, to make sure that they do whatever needs to be done to make maximum use of the new procurement rules.

The third ask from the industry was greater flexibility on EU emissions legislation. We have successfully negotiated longer lead-in times for the implementation of emissions regulations. The fourth ask was for action on unfair trading practices. As I said a few moments ago, we have led the EU in securing provisional duties on unfair imports of rebar steel and cold rolled flat steel. We have welcomed new investigations into unfair imports of hot rolled flat products, heavy plate and large seamless pipes. We continue to pressure the European Commission for further action against unfair trading, including the use of the registration procedure where appropriate.

Oral Answers to Questions

Debate between Sajid Javid and Stephen Doughty

Tuesday 2nd February 2016 Commons Chamber

[Sajid Javid]

The hon. Lady may be interested to know that it was the Secretary of State who asked for an emergency meeting of the European Council to discuss this issue of unfair trade for the first time and to make sure that when the EU takes action, it does so appropriately and in a speedy fashion. The EU is considering the issue of market economy status. When it puts forward a proposal, we will take a careful look at it. Even if a country does have market economy status, that does not stop the EU taking action, as is shown by the examples of Russia and the US.

[Stephen Doughty]

As you are aware, Mr Speaker, I have concerns about a written answer that I received last week from the Ministry of Defence. It stated that

“the Ministry of Defence (MOD) does not hold a complete, centralised record of steel procurement for projects and equipment, either in terms of quantity or country of origin, over the past six years.”

Why on earth should we believe the Government’s promises on procurement when they do not even keep records in the Ministry of Defence, and what will the Secretary of State do about it?

[Sajid Javid]

We are the first country in the EU to take advantage of new procurement rules. When it comes to defence needs and other infrastructure projects, we should use British steel whenever we can. For example, the Queen Elizabeth-class aircraft carriers are 94% British steel—that is 77,000 tonnes. Last week I visited Crossrail, the biggest infrastructure project in Europe, and almost all of it is British steel.

Oral Answers to Questions

Debate between Sajid Javid and Stephen Doughty

Tuesday 15th December 2015 Commons Chamber

[Sajid Javid]

Like my hon. Friend, the Government believe passionately in free enterprise. Free enterprise has motored this economy for decades, and it will continue to lift people out of poverty. We do have a strategy—it is called the long-term economic plan.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I am sure that the space Minister will praise the foresight of the previous Labour Government who established the UK Space Agency. Given that Tim Peake’s incredible mission is launching today, will she say a little more about how she will spread inspiration from that mission to a budding generation of new space scientists, engineers and astronauts, including in Cardiff South and Penarth?

Steel Industry

Debate between Sajid Javid and Stephen Doughty

Tuesday 20th October 2015 Commons Chamber

[Sajid Javid]

I will speak to my colleagues and push for an early decision, as my hon. Friend has suggested. On the taskforce, as he will appreciate, it has just been set up. The chair has been appointed. I want to make sure we listen to the taskforce and local leaders about what is required and how we can help. I understand that the first taskforce meeting is taking place tomorrow, so no time is being lost. We will be represented on that taskforce and listening carefully.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

The Secretary of State has referred on a number of occasions to the state aid situation. I do not understand why, as a BIS official admitted at the steel summit on Friday, this was not a top priority for UK state aid clearance with the European Commission. The official also admitted that it would not make any difference now because we were so close to getting a decision. Why was it not at the top of our priorities, and why does the Secretary of State not get on a train to Brussels and stand over officials until they approve it and get the money out to the industry that needs it?

[Sajid Javid]

The hon. Gentleman raises an important issue about state aid, but he knows as well as anyone else that this process is not under the complete control of the UK Government. We of course made it a priority, and we made that clear in the summit. It is a priority, it remains a priority and we are making progress, but I am the first to admit that the process is too slow. We are doing everything we can to speed it up, including meeting commissioners directly.

Oral Answers to Questions

Debate between Sajid Javid and Stephen Doughty

Tuesday 15th September 2015 Commons Chamber

[Sajid Javid]

My hon. Friend always raises important issues like that. It is absolutely right for us to take a fresh look at Sunday trading rules, which have not been considered carefully for many years, and that is what the Government are doing. My hon. Friend will be fully aware of our proposal to devolve the relevant decision-making to local authorities.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

In The Independent last week the previous Business Secretary described the deafening silence from this new Government on industrial strategy as “ominous”. Has the current Business Secretary decided if he has an industrial strategy yet?

[Sajid Javid]

Our policies for dealing with all industries are very clear: we have a very active dialogue with all industrial groups and with many companies, as well as with leading business groups, and that dialogue will continue. We do that, for example, through the sector councils; we listen very carefully to what they have to say and work in partnership wherever we can.

Oral Answers to Questions

Debate between Sajid Javid and Stephen Doughty

Tuesday 30th June 2015 Commons Chamber

[Sajid Javid]

As my right hon. Friend will know, this is a one nation Government. We want to make sure that, as the economic recovery continues, it includes every part of the UK, and that will of course include Wales. We are more than ready to talk to the Welsh Government. I have had a number of discussions with my right hon. Friend the Secretary of State for Wales, who at this point is a lot more interested than the Welsh Government in economic development in Wales.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

The Chancellor says that he supports modern industrial policy and the Prime Minister has said that he wants an active industrial policy, but, according to the Financial Times, the new Business Secretary has told officials in the Department that they should not talk about industrial policy. Now we hear him talking about an “approach”. Can he tell industries around the country whether he still has an industrial policy and, if so, what on earth it is?

[Sajid Javid]

I think I have already answered the hon. Gentleman’s question, but I am happy to repeat that answer. This Government will have an active dialogue with all industrial sectors. We will listen to their needs on skills, infrastructure and training, and work with them. That includes the sector councils. We will also make sure that we are open to new industries, to competition and to disruptive industries, and that we become the most open economy in the world.

Oral Answers to Questions

Debate between Sajid Javid and Stephen Doughty

Tuesday 11th March 2014 Commons Chamber

[Sajid Javid]

I agree with my hon. Friend. Under the previous Government’s system of financial regulation, there was a lack of clarity over who was responsible for financial stability, so when the alarm bells were ringing, no one was listening. We have reformed the system of financial regulation to address those failures by placing responsibility for financial stability firmly with the Bank of England and creating two newly focused financial regulators, the Prudential Regulation Authority and the Financial Conduct Authority.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

If the Royal Bank of Scotland asks for permission to pay bonuses of more than 100% of salary—while, incidentally, its subsidiary NatWest closes branches in my constituency—will the Chancellor just say no, or is he as out of touch as the bank appears to be?

[Sajid Javid]

The failed regulation by the previous Government that led to Government ownership of RBS also produced a system of governance that is done on an arm’s length basis. Those are commercial decisions for RBS. If the hon. Gentleman wants to make representations to it, he can do so through me if he wishes.

Money Transfer Accounts and Remittance Sector

Debate between Sajid Javid and Stephen Doughty

Wednesday 22nd January 2014 Westminster Hall

[Sajid Javid]

The hon. Lady makes a good point. Banks should be concerned about the reputational impact that could arise as a result of their decisions. I confirm that the Treasury, the British Bankers Association and other representatives of the banking industry have discussed the issue. We are engaged with all banks, including state-owned banks. I stress that what a bank does, or does not do, is ultimately a commercial decision for it to take.

[Stephen Doughty]

I say gently that the idea that the Government do not get involved in directly suggesting what banks do and do not offer is a little bit away from the point. For example, the Government work closely with banks, through Help to Buy and other schemes, on what commercial products they offer and how they provide them to serve the public. I wonder, perhaps philosophically, why this matter is being treated slightly differently.

[Sajid Javid]

The hon. Gentleman will know that the state-owned banks came about by accident rather than design, and the Government’s overriding purpose now is to return those banks to the private sector, with the best interests of shareholders paramount. With regard to Government involvement in the banking sector, he mentioned the Help to Buy scheme. That is a good example of a scheme that is designed to work through incentives. No bank is compelled to take part in that scheme or similar ones, such as the funding for lending scheme, which work through incentives. It is important to consider what the Government can do to make it easier for banks to stay in the MSB sector or to get more active in it. That is the right area to explore to help our constituents.

The Government cannot prevent UK banks from facing supervisory and enforcement action from other jurisdictions. Hon. Members know that this is not just about rules in the UK, because European Union rules, and especially rules in the US, affect many money transfer businesses, because most transfers typically have to be converted into US dollars and therefore touch US soil. What the US authorities think is therefore important.

We are committed to doing our utmost to ensure that remittances continue to flow through secure, legitimate channels. The market is adapting, and remittances are continuing to flow into and out of the UK. Particular concerns have been raised regarding Somalia, as we have heard today. That market, too, is adapting and remittance channels remain open. The supervisors and the Government have been monitoring the situation carefully. We know that all MSBs operating in the Somali corridor prior to the decision by Barclays continue to do so, with a number still having bank accounts. Although individual MSBs may be finding trading conditions more difficult, remitters can still service a wide range of customers in the UK and different areas in Somalia. Additionally, many MSBs across a range of corridors are becoming agents of other MSBs, and discussions have been held with various MSB communities on using cash couriers in a manner that is secure and compliant with legal requirements for the cross-border movement of cash.

We must ensure that our constituents are aware of the options available to help them to continue to make remittances. Since the previous debate on the matter in this Chamber, the Government have engaged directly with the Somali community on these options.

Since the previous time I addressed hon. Members on this issue, I have made a written ministerial statement setting out the cross-government effort to find solutions, which included an action plan to secure the continued flow of remittances. The plan includes steps to improve trust in the UK remittance market by the formal banking sector, for example, through building the capacity of money service businesses and providing guidance on the banking of such businesses. It also outlined the creation of an independent action group on cross-border remittances. Through this group, officials from across the Government are working closely with regulators and the private sector to facilitate a sustainable market-based solution. The first full meeting of the group is scheduled to take place next Friday—31 January. I am pleased to announce today that Sir Brian Pomeroy will chair the group. Sir Brian has extensive experience in this field, as the founding chairman of the Payments Council and the previous chair of the Treasury’s financial inclusion taskforce, and through his work with the Alliance for Financial Inclusion.

--- Later in debate ---

[Sajid Javid]

I thank the hon. Gentleman for reminding me of his question. I understand why he raises that matter, and there are two parts to my answer. First, there is a legal dispute, and I do not think it is sensible for any Minister to give an opinion on any matter that is before our courts, which would not be helpful to either party in the dispute. Secondly—this links to my earlier point—Barclays has to make its own decisions. Barclays is a commercial organisation. It has to assess the risks of doing business as well as, as the hon. Member for Bethnal Green and Bow pointed out, the potential impact of its commercial decisions on its own reputation. I will ensure that Barclays receives the report of our proceedings so that it may have an opportunity to reflect on the words of not just the hon. Gentleman, but all hon. Members who have participated in the debate.

[Stephen Doughty]

With your indulgence, Mr Owen, I have three brief points for the Minister to respond to. First, on the time scales and the window of opportunity that we have, will he assure us that there will be key milestones by which certain aspects of the process will have been concluded? Secondly, will the action group report back to the wider community that has an interest after the meeting on 31 January, because one concern is that there has not necessarily been as much feedback and information sharing as possible with the community? Finally, at what level is the weekly group meeting? Is it at the level of directors, heads of team or Ministers? Who is involved in that group?

[Sajid Javid]

First, we all share the sense of urgency on the time scales, which is apparent from all hon. Members who have spoken today and from the Prime Minister’s communication that the hon. Gentleman read out. Naturally, it is always helpful to set targets—I referred to the target that the Somali focus group pilot would be up and running within a year—but we also have to respect that there is no advantage in setting an artificial target and saying that something should be done in six months or a year. This complex issue requires a degree of international involvement and co-ordination, so the most important thing is to ensure that we do the work urgently, but in a way that brings a long-lasting solution. While I share his sense of urgency, I hope that he respects that answer.

In answer to the second question, we will share as much information as possible with all members of the public, although of course the matter is of particular interest to certain communities in the UK. I have had meetings, for example, with representatives of the Somali community, as have a number of officials in the Treasury, DFID, the FCO and other Departments, and we will continue to have those meetings and to share as much information as possible.

Broadly speaking, the weekly meetings involve officials from all Departments, but the hon. Gentleman’s question was more specifically about the level of those officials, and I will have to find that out because I am not sure whether it is always the same officials involved and always people at the same level. Clearly there will be some commonality when the meetings take place, but I can find out more detail and share it with him.

Financial Services (Banking Reform) Bill

Debate between Sajid Javid and Stephen Doughty

Wednesday 11th December 2013 Commons Chamber

[Sajid Javid]

The measures that the FCA has already suggested, and on which it is currently consulting, go a long way to protect consumers in this sector. Of course, the FCA has broad powers in this area and there is nothing to prevent it from considering future measures as it learns more about aspects of the market. For example, the hon. Gentleman may know that the Competition Commission is currently looking into this sector. It is due to report back with its preliminary findings next May and a final report around November. It will look at the sector for about 18 months in total. I am sure that the FCA will take that into account and see what further measures it could take, if necessary, with the broad set of powers it already has. I hope that is of some reassurance to the hon. Gentleman.

Designing the cap on the cost of credit is a job not for the Government but for the independent and expert regulator. Nor is it right that the detail of a cap should be enshrined in primary legislation, given that the industry it is intended to bind is so fast-moving and innovative.

Lords amendment 155 makes clear the FCA’s overarching objective in this endeavour: it must make rules to impose a cap to protect consumers from excessive charges imposed by high-cost, short-term lenders. This language echoes the FCA’s consumer protection objective. The FCA must make rules to advance one or more of its operational objectives, namely consumer protection, market integrity and competition. That applies to the rules to implement the cap, just as it does to all FCA rule-making. The FCA’s competition duty also applies. It must consider how the rules affect the ability of the market to serve consumers’ interests.

As we have heard, introducing a cap is not without risks or potential adverse consequences, including reducing access to credit for some individuals who find themselves in financial difficulty. The FCA will not be able to eliminate those risks, but it will seek to manage them. It will be important that the FCA strikes the right balance in designing and setting the cap.

[Stephen Doughty]

Given that the Government have moved belatedly on this issue—I hope it will make a big difference, notwithstanding the risks mentioned—will the Minister pay tribute to organisations such as Sharkstoppers and Movement for Change and the many community activists around the country who have highlighted the dangers posed by the payday loan industry, which is getting people into thousands of pounds’ worth of debt? The Government have listened to those voices, so will the Minister pay tribute to them?

[Sajid Javid]

I assure the hon. Gentleman that we as a Government have spoken to many stakeholders, including hon. Members, on this issue. Many people have done a good job and deserve credit for looking at the evidence in more detail.

--- Later in debate ---

[Stephen Doughty]

Notwithstanding the points that the Minister is making, many consumers and campaigners on this issue will be concerned about what he has said about the time scale. The Government have dragged their heels on this issue for a number of years and could have taken action well before the date that has been set. I would like to see a cap before this Christmas. I agree with other hon. Members that it is crucial that the cap is in place before next Christmas. One of the campaigners from Swansea whom I met, a woman called Serai, got into more than £1,000-worth of debt with one of these lenders after taking out a very small loan to help pay for her kids’ Christmas presents. This is a crucial point, so I hope that the Minister will give a little more hope to the many campaigners who would like to see the cap introduced before next Christmas.

[Sajid Javid]

I will say a little more about the timetable in a moment, but it is a bit unfair of the hon. Gentleman to say that the Government have had years to introduce the cap, when the Government whom he supported had 13 years to introduce a cap and did nothing.

A number of steps must be taken before the cap can be implemented. All of those steps are important and if they are rushed, it will put consumer protection at risk for the sake of speed. There must first be evidence gathering and analysis. That is critical in getting the cap right. The FCA will draw on the evidence that the Competition Commission has collected. It might also have to get information from lenders and others in the market to get on with its work as quickly as possible. Yesterday, the Government laid secondary legislation before Parliament that will allow the FCA to seek information from the industry. That will support the design of the cap and the cost-benefit analysis that the FCA must issue.

The second and most vital part of the process is the consultation with interested parties on the proposals and their impact, as set out in the cost-benefit analysis. The final component that is necessary for the successful implementation of the cap is that lenders must be given a short period in which to update their systems and processes to meet the new requirements and become responsible, compliant lenders. Difficult though that is, we are not prepared to compromise on the process because that could lead to poor outcomes for consumers.

Cost of Living

Debate between Sajid Javid and Stephen Doughty

Wednesday 27th November 2013 Commons Chamber

[Sajid Javid]

My hon. Friend is right to make that point. I think every MP in this illustrious House could share similar numbers. Indeed, in the shadow Chief Secretary to the Treasury’s constituency, 4,000 people have been taken out of income tax altogether and more than 38,000 have had an income tax cut.

Our changes to the personal allowance mean that someone working full time on the minimum wage has seen their income tax bill more than halved under this Government. It also means that for any income on which people would pay Labour’s 10p tax rate, which it previously abolished, they pay a 0% tax rate under this Government.

[Stephen Doughty]

Is the Minister still a member of the Free Enterprise Group of Conservative MPs and does he agree with that group and the hon. Member for Spelthorne (Kwasi Kwarteng) that VAT could be increased to 15% on food and children’s clothes, which are currently zero-rated? How would that help with the cost of living crisis for my constituents?

[Sajid Javid]

I am pleased that the hon. Gentleman is so interested in tax, because he will be sure to welcome the news that 38,000 people in his constituency have had an income tax cut and 4,500 have been taken out of income tax altogether.

Money Transfer Accounts

Debate between Sajid Javid and Stephen Doughty

Wednesday 17th July 2013 Westminster Hall

[The Economic Secretary to the Treasury (Sajid Javid)]

I am grateful for this opportunity to speak under your chairmanship, Mr Bayley. I, too, add my thanks and congratulations to the hon. Member for Bethnal Green and Bow (Rushanara Ali) for securing this important debate. We have had a number of discussions on this issue already, and I look forward to continuing to have those discussions with her. I know that this is a very important issue for her and for all of us in this Chamber and beyond, and I welcome this opportunity to respond.

This issue is of concern to Ministers across Government and to hon. Members on both sides of the House, because a healthy, functioning remittance sector is crucial for the thousands of our constituents up and down the country who use such services to send money abroad. If you will allow me, Mr Bayley, I would like to speak for a moment about my gran. My gran—my mother’s mother—has been receiving remittances regularly for more than 50 years, since my parents first arrived in our great country and settled, first, in Rochdale. She continues to receive the benefit of remittances. When I first visited her while I was growing up, one of the things that I noticed was that she lives in a very remote village in Pakistan that has no bank. I think that the nearest bank is at least 10 miles away. She is unbanked. There were only a few remitters, at least to begin with, many years ago, that could get money to my gran. I mention that only to show that, at a very personal level, I do understand this issue and how important it is in Britain and particularly to British individuals such as myself, who are from an ethnic minority background.

The sector plays a crucial role in supporting the economies of all the developing countries that have been mentioned today that receive these funds. We all want to see a healthy remittance sector, but we also want to see a legitimate remittance sector. Our banks and regulators have a real responsibility to ensure that they are not inadvertently facilitating any kind of criminal activity. That could be money laundering, drug trafficking or the financing of terrorism, some of which we have heard about today. All are activities that pose real threats not just to UK citizens, but to global security. Of course, there is a fine balance to be struck between managing those risks and ensuring that essential services are still available to families in the UK. I would like to reassure hon. Members that we are committed to getting the balance right. This afternoon, I will set out some of the steps that this Government are taking towards ensuring a robust and sustainable remittance sector.

We recognise the role of Government in effectively supervising and regulating the money service business sector to help to drive up standards in this area. Last year, we strengthened the Money Laundering Regulations 2007, with a particular view to helping Her Majesty’s Revenue and Customs, as the relevant regulator, to strengthen its supervision, and HMRC is making every attempt to close down those businesses that are engaging in criminal activity and tarnishing the sector as a whole. Last month, it worked closely with the Metropolitan police and the Serious Organised Crime Agency to target organised criminals operating in this sector. However, in the longer term, proactive solutions must be found to avoid the need for such action in the future. The best way to achieve that is by creating a remittance sector in the UK that is trusted by all stakeholders and with which all banks can feel confident about doing business.

I have spoken with several of the leading high street banks—including, of course, Barclays—during the last few days. Some have expressed important concerns on the structural features of the sector and particularly on the issues surrounding transparency. I can confirm that I am looking urgently into what measures the Government might be able to take, and speaking to all relevant authorities to look at what options are open to us to try to allay as far as possible some of the concerns that those banks have expressed.

Separately, work has already been under way for some time through Project Quaver, led by HMRC and SOCA, on developing a healthy and sustainable sector. That project brings together the Government, law enforcement, regulators and industry to help banks and money service businesses to understand the risks that come from abuse of this sector, and to strengthen their compliance.

However, we recognise that having effective anti-money laundering and counter-terrorist financing procedures in place is not only essential to preventing, detecting and disrupting illicit finance. They provide the confidence for foreign investment and stable economic growth in many of the developing countries that have been mentioned. Developing effective regimes requires effective co-operation between the public sector and the private sector to understand and mitigate the threat of illicit finance, so under the UK presidency, the G8 has this year committed to launch a public-private sector dialogue on illicit finance, which will be held in Namibia in September of this year. That will not only help to tackle the issue of robust regimes in the traditional financial sectors, but address the opportunities and the risks posed by new payment methods, such as mobile money services. By bringing together private sector experts from around the world and Ministers and officials, the dialogue will be a unique opportunity to leverage expertise and drive reform that meets the specific needs that countries face, particularly in sub-Saharan Africa.

[Stephen Doughty]

rose—

[Kevin Brennan]

rose—

--- Later in debate ---

[Stephen Doughty]

I thank the Minister for being very generous about interventions. Again, I am very interested to hear what is going on at international level—dialogues and so on at the G8—but, echoing the comments of my hon. Friend the Member for Cardiff West (Kevin Brennan), we want to know what will happen in the next couple of weeks, given what is happening on 12 August. I do not want to betray any confidences, but Barclays was offering a meeting at its headquarters. Will we see a meeting of the key stakeholders—the banks, the non-governmental organisations and the diaspora communities—in the next fortnight?

[Sajid Javid]

I think that both hon. Gentlemen knew that I was coming to this issue next. I am referring to the immediate effect of Barclays’ decision. I recognise that some of the things that I mentioned a moment ago, although very welcome, are long-term projects. In the short term, the Government are committed to doing everything that they can to minimise the impact on individuals and businesses in the UK of any immediate changes in this market. I understand that businesses in this sector will face challenges. That is why we are committed to working with the banks, trade associations and money service businesses to try to find solutions that do not mean extensive business closures. However, the truth is that we do not know what the full impact of some of the decisions that have been discussed here today will be. We are monitoring the situation and will continue to do so in the course of the next few months.

Oral Answers to Questions

Debate between Sajid Javid and Stephen Doughty

Tuesday 11th December 2012 Commons Chamber

[Sajid Javid]

I thank my hon. Friend for that question; I remember that he raised this issue last time at oral questions. He has been a great campaigner on it, and I commend him for that. I am pleased that he welcomes the decision to raise the cap to 120%. That will be in the next Finance Bill. We are consulting with stakeholders about the easiest way to bring it in, and we will try to do so as soon as possible.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

T4. Thanks to Jobs Growth Wales, an innovative start-up in my constituency called Boulders Climbing Centre, which I recently visited, has taken on a new member of staff. Will Ministers join me in congratulating the Welsh Government on their scheme and explain why they cancelled funding for the future jobs fund?