Air Passenger Duty

Jim Shannon Excerpts

Wednesday 23rd October 2013 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I congratulate the Economic Secretary, who is not in her place, and the hon. Member for Newcastle upon Tyne North (Catherine McKinnell) on their appointments to their new positions.

I am sure that every Member has been contacted about the issue of air passenger duty. A gentleman who is not from my constituency visits my office because he has no representation. His constituency Member is a Sinn Fein MP who does not contribute at Westminster, but who is part of a team who have drawn £600,000 in expenses from here. The gentleman, therefore, has to ask another MP, who happens to be me, to represent him at Westminster. Every time he books a flight he calls in to see me and asks when the Government are going to change their tactics and do the right thing on APD to the UK mainland.

It is clear that APD is hurting the individual in Northern Ireland, who is somewhat restricted in travelling to the mainland. I believe that we, along with some parts of Scotland, are feeling the pinch of the decision to keep this tax more than others. The Northern Ireland Assembly and my hon. Friend the Member for East Antrim (Sammy Wilson) in particular, who was wearing his other hat as the Finance Minister at the time, abolished APD for long-haul flights out of Northern Ireland in order to secure business, ensure investment opportunities and secure existing flight routes. Clearly, my hon. Friend took some good steps.

There are many opportunities to base businesses in Northern Ireland, but what can be viewed as isolation from the UK is highlighted by the high cost of flights to and from the UK mainland. It is my belief that a reduction or abolition of APD would encourage more businesses to look at the potential for business expansion in many areas of Belfast and, indeed, my own constituency of Strangford, which has a highly educated and skilled work force in most areas and great links to the rest of the UK and Europe. We are asking for this issue to be considered again today not just for the benefit of our constituencies in Northern Ireland, but for the benefit of all constituencies across the whole of the United Kingdom.

When this debate was announced, I was, as always, bombarded with constructive e-mails and briefings from many different companies that have made their case well. British Airways says in its briefing:

“Abolishing APD would pay for itself by increasing revenues from other taxes such as Income Tax, VAT, and Corporation Tax. This benefit would amount to almost £0.5bn in the first year…APD is among the most distortive major taxes in the UK economy—more distortive than VAT, Income Tax, or Corporation Tax, and second only to Fuel Duty.”

That sticks in the craw of many of our constituents.

No matter how the Government try to play it or how deeply entrenched they sit in their revenue-raising mode, the fact is that our APD is much too high compared with those other countries that have it. In fact, the United Kingdom has the second highest air taxes and charges in the world, according to the World Economic Forum’s “The Travel & Tourism Competitiveness Report 2013”, which is right up to date. Only Chad in central Africa is ranked above the UK—imagine being second to Chad—in the list of 140 countries based on their ticket taxes and airport charges. The report states that

“the United Kingdom continues to receive one of the poorest assessments for price competitiveness…in large part because it has the 2nd highest tax rate on tickets and airport charges worldwide.”

We are the silver medallists behind Chad.

European nations are cutting or abolishing their air passenger taxes. Of the 27 European Union nations, just six levy an air passenger tax, with Ireland agreeing to scrap its tax completely in 2014, having dropped it from €10 to €3 in 2011. The German Government froze air passenger tax in 2011 following the publication of a study undertaken on behalf of the German Federal Ministry of Finance that found that the introduction of the tax at the beginning of 2011 had resulted in an estimated 2 million passengers changing their travelling behaviour, including an estimated 750,000 people who opted to fly from a non-German airport to avoid the tax. That demonstrates the very point that we have been trying to make throughout this debate: if we do away with air passenger duty, we will reap the benefits from those who choose to use airports in the United Kingdom as a result. The evidence from Germany and elsewhere proves that. In 2006-07, Denmark phased out its air passenger tax.

We all know that money does not grow on trees. We are realists. If it did grow on trees, I would be very well off because I have 3,000 trees. Unfortunately, it is not like that. No money grows on my trees or on anybody else’s trees. Although we do not need to follow every step that the rest of Europe takes, it is clear that there is a good financial reason why other countries are taking those steps. Our reasoning should follow the same lines.

The BA briefing statement said that the abolition of APD could result in an immediate increase in UK GDP, as my hon. Friend the Member for East Antrim has said. The increase in GDP would be about £16 billion and there would be about 60,000 additional jobs. That would be a win-win for the Government and a net gain for the Exchequer.

As time has beaten me, I plead with the Government to look at the big picture and to consider the big changes that would come from the abolition of APD.

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[Madam Deputy Speaker (Dawn Primarolo)]

As the hon. Lady will know, that is not strictly a point of order. The matter of statements is something the Government themselves determine and I have no knowledge of that, but she has had the opportunity to raise her point in the Chamber and, importantly, to get her views on record. I am sure that those on the Treasury Bench have taken note of what she said.

[Jim Shannon (Strangford) (DUP)]

Further to that point of order, Madam Deputy Speaker—

[Madam Deputy Speaker]

Order. There is not a point of order, Mr Shannon. Having just ruled that what we heard was not a point of order, I can hardly allow you to speak further to what is a non-point of order.

Finance Bill

Jim Shannon Excerpts

Tuesday 2nd July 2013 Commons Chamber

[Tim Loughton]

I beg to move, that the clause be read a Second time.

I am delighted to have the opportunity to speak to new clause 1, albeit very briefly. It is rather ironic that this issue has probably been one of the most over-reported aspects of this Finance Bill, when it was not even in the Bill and we have only a minuscule amount of time to discuss it. Many colleagues here would like to speak to the new clause, and many others have come up to me to express their support.

There has been a lot of misreporting about the new clause, which has commonly been referred to as some sort of “rebel” amendment. It is strange when a manifesto commitment, which was also in the coalition agreement, to a measure of which the Prime Minister himself is a huge fan, becomes a rebel amendment. We are not rebels. There has been no campaign to orchestrate some sort of rebellion; in fact, there was never any intention to force the new clause to a vote, as anyone who had asked would have found out. New clause 1 is simply a helpful amendment, tabled solely in my name, to nudge the Chancellor to give a formal commitment in law to a Conservative party pledge—a popular one at that—and to name the day, and so dispel the concerns caused by vague references to the measure being introduced “in due course”.

The measure was good enough to be in the Conservative party manifesto. It was good enough to be argued out in the coalition agreement, with accommodation for the Liberal Democrats. It has been good enough for the Chancellor and Treasury Ministers and the Prime Minister quite rightly to reaffirm its importance, so surely it must be good enough to get on with now, to lay to rest any uncertainty about the commitment to its implementation and to end any delay in its becoming a reality. I am therefore delighted, even if I have little time to express my delight this evening, that the Prime Minister has indicated that the measure in the new clause will now be brought forward. I hope that the Minister will be able to assure me from the Dispatch Box this evening, or, if there is no time, by writing to me and other hon. Members, that the measure will be in the next autumn statement, with a view to putting it in the next Finance Bill, so that, hopefully, the money will be in people’s pockets by the time of the next election.

I have framed the new clause to give the Chancellor maximum flexibility to determine the exact details of its execution. Spouses, civil partners and indeed the beneficiaries of same-sex marriage, if that Bill goes through, will qualify. There is no prescription about whether the provision applies to basic rate or higher rate taxpayers, or whether the whole or part of an allowance should be transferable. That can be specified by order to suit the Chancellor. It is suggested that the tax relief should focus on couples with at least one child under the age of five—that is, under school age—and therefore correspond to the child care allowances to be introduced from 2015, but that, too, can be changed by order. This is not a prescriptive amendment.

What is uncertain is the timing. I hope that the Minister will be able to confirm what the Prime Minister said in the briefing that he and officials gave on the other side of the world that the measure will be in the next Finance Bill.

Perhaps the most extraordinary aspect of this debate has been the reaction of the left to the proposal. This is a popular proposal, and a modest one. It is popular among the public and among the majority of Labour voters. The Lib Dems are split on it, but one would expect that: it is party policy to oppose it, but only recently the Business Secretary attacked the prejudice against stay at home mothers. When we have an organisation, Don’t Judge My Family, apparently formed solely to oppose the measure, saying that it is a throwback to a 1950s fantasy family image, that is deeply insulting not only to the many millions of married couples who decide to make a lifelong commitment to each other in front of their families and friends that is recognised in law, but to the 90% of young people and the 75% of cohabiting under-35s who in recent opinion polls have said that they aspire to get married.

There are many different forms of family in the 21st century, and most do a fantastic job of keeping together and bringing up children, often in difficult circumstances, yet almost uniquely among large OECD countries, the UK does not recognise the commitment and stability of marriage in the tax system until one of the partners dies. Worse still, one-earner married couples on an average wage with two children face a tax burden 42% greater than the OECD average, and that gap has been getting worse.

So to introduce a recognition of marriage in the tax system, particularly in the modest form suggested, is not to disparage those single parents who find themselves single through no fault of their own, perhaps as a result of having had an abusive or deserting partner, nor is it to undermine two hard-working parents, all of whom get help and support from the state in other forms, and quite rightly. But uniquely, married couples, civil partners and same-sex married couples in future are discriminated against in the tax system.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for giving way and I am conscious of the time. Like him, I passionately believe in marriage, as do my constituents in Strangford. They are keen to see the benefits for their families and their children in Strangford, across the whole of Northern Ireland and in the United Kingdom. Does the hon. Gentleman have an assurance from the Government that the time scale will be met? In other words, will the marriage tax allowance be delivered before the next election?

[Tim Loughton]

I very much hope so. That was the clear indication that the Prime Minister gave in his briefing in Pakistan. I very much hope that the Minister will be able to confirm, because the timing of the measure is important, that it is not something that will be done “in due course”, but in the next Finance Bill.

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[Mr Stewart Jackson (Peterborough) (Con)]

The House will know that I led a debate on this issue in Westminster Hall on 28 November last year. I, too, pay tribute to my hon. Friend the Member for East Worthing and Shoreham (Tim Loughton) and others who have been so stalwart in this campaign.

Perhaps the right hon. Member for Birkenhead (Mr Field) will have a word with his Front Benchers, because this is about social justice and redistribution. It is about a transferable allowance for married couples disproportionately benefiting those in the lower half of the income distribution much more than under the current policy of encouraging the personal income tax threshold. That is a fact.

The “make work pay” argument is very important too. Transferable amounts would help to make work more rewarding for many of the poorest in society. Moreover, we are out of line, on international comparisons, in not supporting the family.

Those are important issues and this is a big subject. I am sorry that the Minister’s speech was so short, but delighted that those on the Treasury Bench have seen fit to give us these assurances. We will hold them to their word.

[Jim Shannon]

Transferable allowances work by families claiming against them for the previous year. Thus this year’s Finance Bill makes provision for transferable allowances for the financial year 2014-15. People will not be able to claim against them until the financial year 2015-16. I will be seeking from the Government an assurance that that will be addressed this year so that it can happen.

[Sir Edward Leigh]

This is simply a matter of justice. There are 2 million families where one partner is working and the other is not. They are uniquely disadvantaged in the benefits system, and it is a matter of justice—let’s do it.

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[Jim Shannon]

I want to say a few quick words. I thank the Minister and his team for the hard work they have done during the passage of this Bill. They have made a valuable contribution. I also thank the Opposition for their contribution.

The Government have made a number of welcome legislative changes—they are in the Bill, so they will happen—on child care and family provisions. Like other speakers, I listened with great interest to what the Prime Minister said at the weekend. The subsequent confirmation from Downing street that transferable allowances would be introduced in the 2014 Finance Bill came not a moment too soon. However, I would have liked more positivity from the Government about the time scale for the married tax allowance in new clause 1 to be introduced. It would have been better to have had that opportunity, although we might get it yet.

Reference has also been made to the air passenger duty in Northern Ireland. We know how important it is to the economy—a point that the hon. Member for North Down (Lady Hermon) has made clear. There have also been contributions and input from the Minister for Finance and Personnel in Northern Ireland, my hon. Friend the Member for East Antrim (Sammy Wilson). That has enabled some of the work done in the Bill to suit the Northern Ireland Assembly and the people of Northern Ireland.

In conclusion, let me say on behalf of my party that I would have been happier with a positive commitment to the married tax allowance, although we might get it yet.

Question put, That the Bill be now read the Third time.

Spending Review

Jim Shannon Excerpts

Wednesday 26th June 2013 Commons Chamber

[Mr Osborne]

It is £2 billion a year, making £10 billion. For the first time, local enterprise partnerships will be able to put in multi-year bids on the basis of a competitive tender that will enable investment in skills, transport and housing locally. It is a revolution in how the money is spent, rather than the situation that we inherited, in which all the spending decisions were made by the people doing my kind of job.

[Jim Shannon (Strangford) (DUP)]

I thank the Chancellor for his commitment and his comments. He referred to extra money for the police in Northern Ireland to combat dissident republicans. Will he confirm that within that money sufficient funding will be available for the recruitment and training of new officers to combat the dissident republican threat?

[Mr Osborne]

We have provided just over £30 million to the Police Service of Northern Ireland. I am confident that within that resource the PSNI can undertake the recruitment and training that it requires to police Northern Ireland effectively for all communities.

Armed Forces (Recruitment Age)

Jim Shannon Excerpts

Tuesday 21st May 2013 Westminster Hall

[Alex Cunningham]

I respect the hon. Gentleman and his work in the military. Perhaps he has more knowledge of the matter than I do, but my understanding is that it is less likely for a person who enlists as an adult to be in front-line conflict. I will check my facts and ensure that, if I address the situation again, I am correct.

The time has come to heed the advice of Child Soldiers International, the Children’s Rights Alliance for England, UNICEF, the United Nations, the Joint Committee on Human Rights and the Select Committee on Defence and raise the lowest age of recruitment from 16 to 18.

[Jim Shannon (Strangford) (DUP)]

I spoke to the hon. Gentleman before this debate. Through my role in the armed forces parliamentary scheme and my contact as a cadet force representative in Parliament for those in Northern Ireland, over the past 20 years I have met some of the most excellent young men and women. They have tremendous qualities and, having been introduced to the Army at 16, are leaders of men today. With great respect, I cannot understand how the hon. Gentleman can advance this point of view when we all have experience of young people who excel at what they do having being inducted at 16.

[Alex Cunningham]

I have no doubt that there are young people recruited at a very early age who go on to excel, but there are some people who might have chosen a different path had they been given the opportunity. I will address some of that later in my speech.

There is no similar under-age recruitment in other dangerous public service vocations, such as the fire or police services. Young people under 18 are legally restricted from watching violent war films and playing violent video games, yet they can be trained to go to war.

Not many people realise that having 16 as a minimum recruitment age is hardly typical among developed and democratic countries. In fact, the UK is the only member of the European Union and the only permanent member of the Security Council that still recruits at 16. We are one of only 20 countries that continue to recruit at 16, while 37 countries recruit from the age of 17. We receive the same criticism as several countries that I am sure no one here would want to see us lumped in with.

The United Nations Committee on the Rights of the Child has asked the Government to

“reconsider its active policy of recruitment of children into the armed forces and ensure that it does not occur in a manner which specifically targets ethnic minorities and children of low-income families”.

I am saddened that such language could be used about our country.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 14th May 2013 Commons Chamber

[Danny Alexander]

First, I congratulate my hon. Friend on the work he is doing on the million jobs campaign to support young people in getting back to work. I echo his words on the employment allowance, which ensures that one person on an average wage and three on the minimum wage can be employed national insurance-free. That should be a substantial incentive, especially for small businesses, to take on more staff.

[Jim Shannon (Strangford) (DUP)]

On skills training and apprenticeships for young people, there is a two- pronged approach: employment opportunities through apprenticeships and skills training. What is the Chief Secretary doing to ensure that companies can provide skills training in conjunction with colleges?

[Danny Alexander]

I hope that the hon. Gentleman will have a look at the employee ownership pilot on apprenticeships, the purpose of which is to put much more of the funding, and more of the control over the way in which apprenticeships are designed and supported through colleges, in the hands of employers to make sure that the skills training that the young people get is suited precisely to the needs of the employers concerned.

Finance (No. 2) Bill

Jim Shannon Excerpts

Wednesday 17th April 2013 Commons Chamber

[Alison Seabeck]

My hon. Friend is right and has flagged up yet another unfairness about what is proposed.

We have an example of the Government bearing down on the less well-off—those who are suffering because of the bedroom tax. Those people could probably never afford a mortgage, however desirable an ideal that might be. The Government are effectively expecting those people on low incomes to fund and support other people to buy new homes.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Lady for being gracious enough to give way to everyone who has wanted to intervene. Does she feel that there should be an incentive for parents or grandparents who either have savings or could remortgage their homes to provide a deposit for their children or grandchildren? Could that not enable first-time buyers to get on to the ladder in their 20s rather than at 37, as was mentioned earlier?

[Alison Seabeck]

The hon. Gentleman makes an interesting point, and I will briefly touch on it later. I suspect that it could be possible for parents to buy for children.

People struggling to get a mortgage and those who want to own their first home must be a priority for help, not the small number of people who can afford to buy a second home. What checks will be introduced to prevent abuse of the scheme, so that people are prevented from applying in the names of their sons and daughters, cats and dogs?

The key fact is that not enough homes are being built. The Government must focus on that issue and on listening to the voices of those who understand the market. They should not simply dismiss out of hand the Opposition’s new clause, which would enable the public to have a better understanding of who benefits from the scheme. Is it foreign investors, parents buying second homes for their children or people seeking to rent the property in the long term?

What checks will be put in place if somebody applies to the scheme saying that they are not going to let the property, then sits on it for a time and subsequently opts to rent it out? Perhaps people could use the scheme for a straightforward holiday home purchase, as I mentioned in relation to Plymouth and the South Hams. Where are first-time buyers in the process? For me, they are singularly missing.

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[Andrew Stunell]

Indeed, and I will move on to that shortly. Based on all that has gone before, I think that the Minister will say that the Government have every intention of ensuring that those things happen and that the work being promoted by the IF campaign becomes mainstream in this House and the outcome we all wish to see. I support that campaign and its objectives and am keen for the Government to adopt them and be supportive as well. Indeed, my hon. Friend the Under-Secretary of State for International Development is sitting just in front of me on the Front Bench, and I know that she works very hard on those matters as well.

I do not think that the trinket presented to us in amendment 6 is the core of what we need. I challenge the Government to give an undertaking that the proposals in the Finance Bill will be moved on so that multinationals are required to reveal the tax avoidance schemes they are using in the developing world and developing countries are helped to collect more of the tax they are owed. I pay tribute to the work, which I think was initially promoted by the International Development Committee in the previous Parliament, and which I know this Government have taken up with some enthusiasm, of supporting developing countries to create effective tax systems of their own. I know that the work that has been done in Zambia is seen as a template for other countries around the world. I encourage the Government to move forward in that direction.

[Jim Shannon]

The right hon. Gentleman is bringing to the Committee’s attention the issue of large multinational companies avoiding tax in other countries around the world. Does he agree that it is an issue not only for this House, but for other investment countries, such as the United States, and that together we can address the problem of big companies trying to avoid tax in third-world countries?

[Andrew Stunell]

Yes, I very much agree. Indeed, I have heard Ministers say that they agree. It is why it is important to work through the G8, the OECD and even the UN to get some level of international engagement on that. As is so often the case, those necessary and important international outcomes cannot be achieved by one country taking an initiative on its own. That does not deter me from arguing that the United Kingdom should be giving the necessary leadership, but I think that we have to be realistic about how we can achieve those outcomes.

amendment of the law

Jim Shannon Excerpts

Monday 25th March 2013 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I welcome the many good things in the Budget, but I want to focus on one omission. The Prime Minister and the coalition have suggested that marriage should be recognised in the tax system, but yet another Budget has not recognised it. Other countries across the OECD have recognised it, but Great Britain has not. That point has to be underlined. The Prime Minister was right to commit to bringing us back into line with international best practice, and the benefits of marriage to individuals, families and society are considerable and plain to see, yet the Government have again singularly failed to deliver.

The greater benefits of marriage reach out beyond the family structure, leading to stronger and more cohesive communities. The Relationships Foundation has shown that the cost of family failure has increased to a staggering £44 billion, which means that failed relationships across the United Kingdom cost the taxpayer £1,470 each per year. In that context, the Government should be doing all they can to support family stability, and that is best secured by supporting marriage. They should be encouraging and supporting marriage and the bond of commitment, not making it harder to marry in this country than across the rest of the OECD. Again, the Government have failed to address that issue.

In recent years, the Government have said repeatedly that they back recognising marriage in the tax system, but the reality is very different. It was a headline commitment in both the Conservative manifesto and the coalition agreement. If that is not enough, public support for a transferable allowance is plain. A 2012 YouGov poll showed that 70% of people who expressed an opinion supported a tax allowance for married couples. So why the inaction?

On 3 July 2012, I asked the Exchequer Secretary two questions on this matter. First, I asked whether the Government would honour their commitment to recognise marriage in the tax system. He did not answer. Then I asked him about implementation. Nine months later, I hope to get an answer to that question. I want to quote what I said that day:

“Recognition of marriage in the tax system will require HMRC to make various operational changes, particularly in the IT systems. Can he reassure us that this preparatory work is already under way so that when the Government bring forward legislation to recognise marriage in the tax system there is no further delay? If he cannot do so tonight, will he make it an urgent priority to make a statement to the House setting out the time that will be required to change the IT systems and announce that he has instructed that work to begin in readiness for the introduction of the transferable allowance legislation?”—[Official Report, 3 July 2012; Vol. 547, c. 880.]

This issue is even more pressing today because, unlike the last Budget, this Budget is quite possibly the last opportunity the Government will have to introduce the necessary Budget resolution if transferable allowances are to be up and running by the next election. If they take more than 12 months and the Government wait until the 2014 Budget, that means there will almost certainly be no transferable allowance in place at the next election. That would be tragic. I very much hope that the Minister will be good enough to answer the question today and explain either that the process will take significantly less than 12 months, so that the system can be introduced at the Budget and fully implemented within the time frame of the coalition agreement—that is, before May 2015—or that the Government will amend the Finance Bill so that the IT changes can start now.

People feel alienated when manifestos are not delivered on and promises are not kept. It is not too late to put it right tonight.

Tax Fairness

Jim Shannon Excerpts

Tuesday 12th March 2013 Commons Chamber

[Chris Leslie]

It would be a great loss for the House to lose some of the skills and contributions of Liberal Democrat Members. Perhaps at our next Opposition day debate a Liberal Democrat protection order should be on the agenda. They may cling on in a number of ways in different places.

I am surprised that the Liberal Democrats do not support the mansion tax proposition. It is hardly surprising that Conservatives do not support the idea. After all, half of them are in politics to defend the wealth of the wealthiest, and the other half will probably need to declare an interest before they speak on the issue.

Let us consider the mansion tax in relation to the other tax benefits that the richest 1% receive. If the Lib Dem design for a mansion tax were to be enacted, it would just recoup a mere fraction of the money being given away to high net worth individuals in the millionaires’ tax cut from April—the first of too many examples of unfairness. In the last Budget, the Chancellor took the decision to hit pensioners with the so-called granny tax, which is more accurately described as a freeze on the old age personal allowance and has caused widespread disgust, especially because the Government chose to use the money to fund a cut in the higher rate of income tax. That is not fair and it is not right, and it certainly should not be part of the society we want to build. Even Liberal Democrats must know that it is deeply resented across the country, yet the Government continue to clobber lower and middle-income families, whether by freezing the maternity pay of new parents, taking child benefit away in a fiendishly complex tax assessment process or reducing the value of the tax credits on which so many working people rely. They cannot even ensure that the money men pay their fair share, with a bank levy that for two years running has undershot the supposed target of £2.5 billion that the Chancellor claimed it would collect.

On maternity pay, the bedroom tax and the cuts to tax credits, the Government have their priorities all wrong. They are handing a tax cut to millionaires when millions of hard-working families pay more. Voting for the motion is an opportunity, especially for the Liberal Democrats, to tell the Government that they need to rebalance their priorities.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for introducing an admirable motion. Does he agree that it is not just about tax cuts for millions of people on middle and low incomes, but that it could also be an incentive for first-time buyers to get on to the first rung of the ladder? They do not want to buy a mansion, just a first house. Should the money be used for that too?

[Chris Leslie]

The hon. Gentleman makes an important point about finding ways to help those who aspire to own their home. I am certainly interested in discussing options for how that might be achieved, because it is important. It is becoming very difficult for people in those circumstances. They are the home owners that we really need to focus on. It is amazing that so many Government Members want to defend the massive super-wealth of those with properties of £2 million and above. All we want is that they pay their fair share, as the motion states in plain and simple terms. We are giving a timely pre-Budget opportunity for the House to express support for or opposition to a mansion tax as

“part of a fair tax system.”

It could not be more straightforward. The country is crying out for a tax system that focuses on helping the majority of the public and ensures that the wealthiest 1% pay their fair share.

First and foremost, Government Members have a duty to their constituents, who will be astonished if their MP flunks this opportunity to make real change because they are suppressing their principles in a bid to cling on to power.

Infrastructure

Jim Shannon Excerpts

Tuesday 12th February 2013 Commons Chamber

[James Morris (Halesowen and Rowley Regis) (Con)]

Unusually, I would like to start by thanking the Leader of the Opposition for choosing the subject of this debate, even if the text of his motion is fundamentally flawed. In the language of “Yes Minister”, it is extremely courageous of the Opposition to choose a debate on a subject on which their own record is so weak, particularly when they would have cut investment by 50% had they won the last election. I agree with the Leader of the Opposition that investment in infrastructure is vital to the economy’s long-term prosperity. It is also vital that we take effective action today to address the infrastructure deficit left by the previous Government.

There is no question that poor infrastructure discourages inward investment. As Professor Dieter Helm wrote towards the end of the last Labour Government in 2009:

“Few would choose to locate in Britain because of its infrastructure”.

He went on to describe it as

“not fit for the digital age”.

Bringing our infrastructure up to a standard that businesses and residents should be able to expect is essential if we are to create the flexible and successful economy on which prosperity will depend.

One of the most damaging legacies the Government inherited was the unsustainable imbalance in the economy that had built up over previous decades. We cannot build the prosperity we need based on London and the south-east alone and we cannot unlock the potential of the whole country without the modern infrastructure that makes doing business across the country and around the world as straightforward as it can be.

The prosperity gap between the black country, part of which I represent, and the south-east grew out of control under the previous Government. Gross value added per head in Dudley and Sandwell fell from 88% of the national average in 1997 to just 74% in 2008. World-class transport infrastructure such as the HS2 scheme will play an important role in closing that gap. We need to make it as easy to do business with Frankfurt, New York and vital emerging markets from our regional cities as it is from the City of London.

Labour left a rail system rapidly approaching capacity. Network Rail forecast that the west coast main line would be completely full by 2004. The inter-city rail network would be unable to cope without the additional capacity that will provided by HS2, and I am proud that the Government are taking the bold steps necessary to take that scheme forward. Businesses thinking of locating in my constituency know that they will have regular connecting services from the three main line stations in my constituency to the HS2 terminal in Birmingham, offering fast routes to London and later to Manchester, Leeds, Edinburgh and Glasgow.

I would like to make one representation to the Minister. That investment, which is so important to bringing our largest cities together, must be complemented by a new focus on the importance of our regional airports. Whatever the rights and wrongs over the debate about expanding Heathrow, there can be no doubting the benefits of making better use of existing and potential capacity at airports outside London. Building a second runway at Birmingham airport, for example, would increase spare capacity to 50 million passengers per year, creating or sustaining 50,000 jobs. Transforming Birmingham, Manchester and other regional airports into additional hub airports would transform our regional economies and relieve some of the pressure on Heathrow.

[Jim Shannon (Strangford) (DUP)]

Does the hon. Gentleman think that we also need to increase the turnover and capacity of regional airports in Scotland and Northern Ireland, particularly Aldergrove, Belfast city and Londonderry airports, in order to strengthen the economy across the whole of the UK?

[James Morris]

The hon. Gentleman makes a very good point. We need to encourage greater use of capacity for all our regional airports, as part of the vital effort to rebalance the British economy in the way I described.

Transport infrastructure is not only vital to business, but essential to people’s everyday lives. As the Minister said, the previous Government explicitly set out to price people out of their cars in order to reduce demand for investment in road infrastructure. Instead, we need to look at how we can make our roads better. My constituents are pleased that the Government are investing more in local roads through the highways maintenance block grant to councils. Unfortunately, Labour’s record in local government highlights the hypocrisy of the Opposition’s motion. People in Dudley borough have benefited from £2 million of additional investment in local road maintenance. Unfortunately, the new Labour administration is cutting the road maintenance budget by the same amount, pound for pound, as the additional funding from the Department for Transport. Labour in local government has shown time and again that, as far as it is concerned, infrastructure spending is a very low priority, but residents know that we cannot build a strong local economy with third-rate local infrastructure.

Financial Services

Jim Shannon Excerpts

Wednesday 6th February 2013 Commons Chamber

[Greg Clark]

The hon. Gentleman makes an important point that will be considered by the commission, which is looking into the culture. It is important that banks recognise that they exist to serve their customers—that is their purpose and the reason why they operate. My recent experience of speaking to some bank boards leads me to believe that they recognise the commercial imperative for that, but he makes a suggestion that I am sure our colleagues will consider.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister firmly for his statement. In particular, I thank him for the £35 million of fines imposed on the banks that will go directly to the armed forces community; £5 million will go to the Imperial War Museum. Will he confirm the criteria by which charity groups such as the Royal British Legion, the Army Benevolent Fund, SSAFA and Help the Heroes can qualify for financial assistance through the fines on the banks?

[Greg Clark]

As I said in my statement, we will make further announcements on the disbursement of the funds, but they have been earmarked and reserved for the military community.