Oral Answers to Questions

Debate between Philip Davies and Sajid Javid

Thursday 15th January 2015 Commons Chamber

[Philip Davies (Shipley) (Con)]

After the great success of the Tour de France in Yorkshire last year, which gave an estimated £100 million boost to the Yorkshire economy, is the Secretary of State as excited as everybody else in Yorkshire about the route to be declared next week for the Tour de Yorkshire, the new international cycling race which is being introduced? Will he join me in congratulating Gary Verity on the role he has played in organising that, as well as on bringing the Tour de France to Yorkshire, and support my campaign for him to receive a knighthood in the next honours list?

[Sajid Javid]

I agree very much with what my hon. Friend says. I remember visiting the Tour and being hugely impressed by the participation; people of all ages turned out for that spectator sport. It has been a great thing for Yorkshire and the new initiative is very welcome. I very much agree with his comments about what Gary Verity has achieved for Yorkshire; my hon. Friend’s point should be looked at.

Oral Answers to Questions

Debate between Philip Davies and Sajid Javid

Thursday 27th November 2014 Commons Chamber

[Sajid Javid]

I was pleased to meet the hon. Lady to discuss the issue, but she knows, because we discussed it then, that the previous Labour Government, this Government and the Select Committee on Culture, Media and Sport have looked at the issue and all have concluded that new legislation is not necessary. Event organisers can seek their own solutions. However, I am of course looking carefully at the new clause that was accepted in the other place and will respond to it fully in due course.

[Philip Davies (Shipley) (Con)]

The new clause is similar to a new clause that was defeated in this House when the Bill was going through the Commons. Should not the elected Chamber get its way, rather than the unelected Chamber? Is not this all about allowing event organisers to void or cancel tickets and place people on blacklists, denying them any guaranteed refund, which has nothing to do with transparency or protecting the interests of consumers?

[Sajid Javid]

I thank my hon. Friend for his remarks. He and others will know that I have said that I believe that the calls for legislation have been misguided. Criminalising people and preventing them from selling tickets that they have purchased is a heavy-handed approach and is inconsistent with wider consumer rights to buy and sell items that they freely own.

Bradford & Bingley plc

Debate between Philip Davies and Sajid Javid

Wednesday 27th November 2013 Westminster Hall

[Sajid Javid]

My hon. Friend makes a good point that has been brought up by many hon. Members. With the reforms we have implemented, and some that we are still in the process of implementing, the Government have created a stronger, more rigorous system, with regulators with a lot more teeth and a greater degree of independence.

The Government have also set up the Independent Commission on Banking, or ICB, to recommend further reforms to enhance financial stability. The Government accepted the recommendations of the ICB and are putting them into law this year through the Financial Services (Banking Reform) Bill. The Government also supported Parliament in setting up the Parliamentary Commission on Banking Standards and have accepted that commission’s main recommendations.

I turn now specifically to Bradford & Bingley. Following the difficulties Bradford & Bingley experienced in 2008, the previous Government transferred its retail deposit taking business and branch network to Abbey National after a competitive process; its mortgage business was brought into public ownership. At the time of the nationalisation of Bradford & Bingley, the UK was in the grip of a rapidly evolving crisis, as we have heard today. I cannot speak for the actions that the previous Government took to deal with the crisis, as I was not privy to the relevant discussions; nor, rightly, have I seen the papers that relate to the previous Administration, although I understand that the Treasury is handling all freedom of information requests in the proper manner.

Extensive information is already in the public domain: events leading up to the nationalisation have been looked at by both the National Audit Office and the Treasury Committee. But on the matter of information, I have to agree with the comments made by my hon. Friend the Member for Shipley, and, in particular, with the request made by my hon. Friend the Member for Chippenham (Duncan Hames), who asked the shadow Minister to use her good offices to speak to the former Prime Minister, the former Chancellor and others who were Ministers under the previous Government and closely involved in events at that time. That is a reasonable request; I hope she will act on it and get back to my hon. Friend about it. It could lead to further information that many stakeholders would find useful.

Following the transfer of Bradford & Bingley into public ownership, the previous Government made the Bradford & Bingley plc Compensation Scheme Order 2008, which was debated and approved by each House. The order provided for a mechanism through which compensation for former shareholders would be assessed by an independent valuer. As we have heard, after conducting a robust and rigorous process the independent valuer determined that no compensation was payable.

My hon. Friend the Member for Shipley asked whether it was right that the valuer should have been asked to work on the basis that there was no Government support. I believe that it cannot be right, or in the best interests of the taxpayer, that the valuer should have been asked to compensate for value that existed only by virtue of support that taxpayers themselves were providing.

Following the determination, all affected parties had the opportunity to submit requests for the valuer to reconsider his decision. The valuer considered all requests before concluding that no compensation was payable. That decision was further upheld in the upper tribunal review.

I believe that due process has been followed at every stage. Transparent and independent arrangements for compensation have been put in place and there has been a proper process in the courts. As I mentioned, there have also been investigations by the NAO and the Treasury Committee. I have to say to my hon. Friend that I have looked at the matter closely using the limited information available to me, and from what I have seen I am not persuaded that there is a case for a further investigation or inquiry.

Before I conclude, I want to respond specifically to a number of my hon. Friend’s questions. He talked about the rights issue that took place just before nationalisation. From the information I have seen, I can tell him that the Treasury had no involvement in that rights issue at all; as we have heard, the rights issue was conducted in the summer of 2008, prior to nationalisation, and was a matter solely for Bradford & Bingley’s board and senior management. Like many banks and building societies at that time or thereabouts, Bradford & Bingley was required to meet FSA regulatory capital requirements in order to continue with those regulated activities.

My hon. Friend also raised the issue of accounting standards, and in particular IAS 39, which he said was problematic and could perhaps take some blame for the financial crisis. He is right to raise accounting standards and the contribution they could have made to the crisis. The issue has been looked at extensively by authorities around the world, including the International Accounting Standards Board. The board has proposed a series of changes to IAS 39 and other, similar accounting practices. Those changes essentially mean that, in future, banks will have to hold more capital or take losses earlier on problematic loans.

My hon. Friend also rightly expressed his concerns about the future of a number of his constituents who were transferred to UKAR during nationalisation and are currently UKAR employees. He was absolutely right to say that those people have considerable expertise and experience in an important sector. My understanding is that currently over 2,000 staff are still employed in managing the closed mortgage books of both Bradford & Bingley and Northern Rock, and are doing an excellent job.

My hon. Friend may take some comfort from knowing that those people’s skills are such that it seems they will face growing demand for them: the Council of Mortgage Lenders recently said that mortgage lending in the third quarter of this year was at its highest level since 2007 and is growing strongly thanks to the Government’s policies and the economic growth we are experiencing. I am sure that the value of the skills they hold will give some comfort to the constituents he mentioned.

[Philip Davies]

I am grateful to my hon. Friend for his comments, although clearly I am disappointed that he does not believe that there is a need for an inquiry: we are still no further forward when it comes to knowing why Bradford & Bingley was treated so differently from other banks and building societies.

In the light of the comments my hon. Friend has just made about the future of Bradford & Bingley, will he go away and think about whether a new Bradford & Bingley could be born out of what is there at the moment to be a new challenger to the banking sector on the high street and to introduce the competition that we all want?

[Sajid Javid]

I will give a commitment to my hon. Friend that I will think about that further. In fact, I will do more: he will know that UKAR is part of United Kingdom Financial Investments Ltd, the agency that acts as the Government’s shareholder in the former assets of Bradford & Bingley, and of the Royal Bank of Scotland, Lloyds and others. I will write to the head of UKFI and to the head of UKAR to ask them to consider the case that my hon. Friend has made today.

I congratulate my hon. Friend once more on securing this debate. This is an issue that he, rightly, feels very strongly about. I assure him that we are taking what we believe are the right steps to ensure the future stability of our banking system.

Oral Answers to Questions

Debate between Philip Davies and Sajid Javid

Tuesday 5th November 2013 Commons Chamber

[Sajid Javid]

May I give the hon. Gentleman some advice on how he can help small businesses in his constituency and elsewhere? The SME appeals process that the Government set up with the banking sector has been very successful, with 40% of businesses that appeal finding decisions overturned. He can help to advertise that, as the Government will be doing shortly to banks.

[Philip Davies (Shipley) (Con)]

The point of capitalism is that people who take risks should be rewarded when they are successful and should lose money when they fail. Yorkshire bank has been among the worst for penalising its good customers to try to make up for its own losses. That is an abuse of capitalism. I hope that the Minister will take steps to ensure that Yorkshire bank treats its customers fairly, because in too many cases it has been treating them terribly unfairly.

[Sajid Javid]

My hon. Friend has made a number of representations on this issue, and he is right to do so. As I have said, we want all banks to treat their customers fairly, and the Government are absolutely committed to that.

Sale of Tickets (Sporting and Cultural Events) Bill

Debate between Philip Davies and Sajid Javid

Friday 21st January 2011 Commons Chamber

[Sajid Javid]

I am confused about the hon. Gentleman’s position. He started by supporting the Bill, or implying that he supports it.

[Philip Davies]

But does he?

[Sajid Javid]

Perhaps not, but the hon. Gentleman can correct me. He talks about free and fair markets, but he cannot support a Bill providing for a maximum 10% premium on resale and at the same time support free and fair markets. For the record, can he tell us the view of the official Opposition? Do they support the Bill or not?

--- Later in debate ---

[Sajid Javid]

I will in a moment, but I shall just finish answering the hon. Gentleman’s point.

[Philip Davies]

The hon. Member for Dudley North (Ian Austin) is trying to talk the Bill out.

[Sajid Javid]

Yes, and we should not do that. The hon. Member for Dudley North (Ian Austin) has had ample time in which to speak. The point that he is missing—this is why I was confused by the speech that he gave from the Opposition Front Bench—is that if the concern is about criminal and fraudulent activity, and activity that is clearly wrong, there are already laws in place for that. If those laws are not strong enough, or Members think that changes should be made to them, that is a completely different argument from what is being proposed today. One of the key proposals in the Bill is to limit the resale price in the secondary market at a premium of only 10% of face value.