Access to Redress Schemes
Alistair Carmichael Excerpts(1 day, 7 hours ago)
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Richard Foord
The hon. Member is exactly right to draw a thread between several of these scandals. That is partly because when a new scandal emerges, the organisation responsible is often the organisation charged with redress. Andrew Bailey, while chief executive of the Financial Conduct Authority, said in 2017 that
“it just does not seem to be sensible that, every time one of these things happens, we have to set up something new.”
Beyond the Post Office schemes, we have heard criticism both here and in the press on the infected blood inquiry, as the hon. Member mentioned, and Windrush. That criticism has pointed to intolerable delays or the problematic features that often let the offending firm or institution off the hook.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
I am interested to develop my hon. Friend’s thought about the Financial Conduct Authority. If I am able, I will speak at greater length about it later in the debate. It administers the Financial Services Compensation Scheme, which is a fund set up by levies on financial services companies themselves. It is the maladministration of the FCA or a lack of proper regulation that often leads to these claims being brought. Essentially, the people paying for the scheme have to do so because of the incompetence of the FCA.
Richard Foord
My right hon. Friend is exactly right. The FCA is not directly accountable to Parliament, but is accountable to Parliament through the Treasury. I, too, have had constituents finding themselves in a David and Goliath scenario, trying to tackle issues of unfairness with the FCA.
Likewise, in finance, we have seen the mis-selling of interest rate hedging products and widespread financial misconduct against small and medium-sized enterprises by the Royal Bank of Scotland, for example. Last year, the all-party parliamentary group on fair business banking conducted the first systematic review of compensation schemes in the UK and found flaws common to several of them. Schemes are frequently blighted by unnecessary complexity, delays and a huge emotional and legal burden on victims. Often schemes are shrouded in secrecy and lack proper independence.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
It is a pleasure to follow the right hon. Member for North Durham (Mr Jones). I do so with a small measure of trepidation, as a recovering lawyer; it is 23 years since I left legal practice, so it gives me a certain perspective. He is right to say that we are talking about the imbalance of power between the big corporates, Government bodies and public bodies, and the individual private citizen. Beyond that, the real problem is about culture, because nothing in nature or law says that a big corporate, public regulator or public body has to treat people badly; that is the choice of the people who make up those bodies.
That problem is not new. As I have been listening to this debate, I have been reflecting on the fact that not long after I was first elected to this House in 2001, one of the first pieces of casework in which I became involved related to 36 residents in the south end of Shetland whose asbestos roofs had all failed following the grounding of the Braer, off the south end of Shetland, some 10 years earlier. The casual observer might think it common sense that those roofs had worked perfectly functionally for decades and then suddenly, after a tanker full of Gullfaks crude was dumped on top of them, things started to go wrong. The problem was that they did not go wrong immediately; it took time for their failure to become apparent. As a consequence, those people were at the tail end of those who were claiming from the International Oil Pollution Compensation Funds. Everybody believed before the Braer that the sum put into the IOPC fund could never be reached, but of course the Braer maxed out the fund.
By the time the asbestos roof claimants came along, there was no money left to pay the compensation. However, money was left to defend a court action, which is what happened when my constituents raised one. I have never understood the judgment in the case, but my constituents lost and, as a consequence, were left having to carry their own losses. I am certain that had there been more money in that fund at the start, their losses would have been met. So, yes, this is about the imbalance of power, but it is also about the culture of the organisation concerned. An understanding is required on the part of these bodies, be they corporate or public, of the purpose for which they are there. That is what I wish to draw the House’s attention to today.
Last night, I was fortunate to host a showing upstairs of a BBC documentary entitled “King of the Swindlers”, and the parallels with the Post Office Horizon scheme and its victims are there for all to see. There were only a couple of hundred victims of the “King of the Swindlers”, whereas, as we know, thousands of sub-postmasters were affected by Horizon. The “King of the Swindlers” concerned a Ponzi scheme perpetrated by a financial adviser in the north-east of Scotland, Alistair Greig. He was eventually convicted of fraud and sentenced to 14 years’ imprisonment, which was later reduced to 10 on appeal. The victims came from everywhere from Shetland in the north, down through Orkney, along the highland east coast and the Moray coast, through Aberdeen and down into Angus. They were all people who had lived and worked as builders, tradesmen or shopkeepers, saving a bit here and there. They put their money into this Ponzi scheme and lost out. The constituent who first brought this to my attention lost out to the tune of £130,000, and his mother lost £37,000.
Alistair Greig was responsible for his fraud, but he was able to carry it out as a consequence of the serial ineptitude and incompetence of the Financial Services Authority, later the Financial Conduct Authority. A journalist, Dale Haslam of Aberdeen’s Evening Express, who has done tremendous work exposing what went on, pointed out to me last night that if the FSA had got it right the first time Greig’s wrongdoing was brought to its attention, he would have been stopped after only one victim. However, it missed the opportunity not once, not twice, but three times to stop what he was doing. As a consequence, the number of victims ran to hundreds.
Those who lost out were all small business people who had worked hard, saving £100 here and £1,000 or £1,500 there. They put all that money together and trusted it to Alistair Greig, usually on the recommendation of friends, family and others, because that is how business is often done in such communities. These people did not make that money by flipping properties or coming up with a great wheeze in the City; it was all hard won. Eventually, in desperation, they raised a legal action against Sense Network Ltd, the company that stood above Greig in the financial food chain, but they lost twice: in the first instance, and at appeal.
The legal action pursued by the 95 victims who had the determination, courage and stubbornness to pursue it did serve a purpose: eventually all the victims were allowed compensation from the Financial Services Compensation Scheme. That of course comes with an £85,000 cap, so my constituent who had lost £130,000 was immediately £45,000 down. However, those 95 victims of Alistair Greig who supported the legal action and made the compensation for everybody possible are left with a legal fees bill of £1.9 million; they are having to pay some £30,000 each, although the exact number varies. So my constituent started with £130,000, came down to £85,000, and is left with something in the region of £50,000. Let us not lose sight of the fact that Alistair Greig was able to do what he did only because the Financial Services Authority and the Financial Compensation Authority were poor at doing the job that this House charged them to do.
I invited various people to the screening of “King of the Swindlers” last night. I invited the legal team, including the solicitor who acted for the victims. I will be happy to introduce her to the right hon. Member for North Durham, because she is a sterling example of what good people in the legal profession can do, as a member of what I would still regard as a caring profession.
Mr Kevan Jones
I hate to think that I have given the impression that I am down on all lawyers; some of my best friends are lawyers. If the system is implemented fairly, people can get proper legal advice without it costing a fortune.
Mr Carmichael
I do not disagree with that. I saw enough of that in my time in practice. The right hon. Gentleman knows of my experience with the historical shortfall scheme, and of going into hand-to-hand combat with the lawyers who were instructed by the Post Office. In that case, we were able to make progress for my constituent. A local solicitor, Anne Robertson, a sole practitioner operating in Orkney, took on one of the three biggest firms in London and left them running for cover.
The victims were left with a £1.9 million legal fee because the inadequacy of the regulators left them with no option but to do what they did. We invited the regulators to the showing last night. I invited them in the middle of March; they replied last week in a letter, saying, “No, sorry. We have nothing to add. We are not going to come.” Foolishly, the FCA gave me time to reply, and I had a telephone conversation on Friday night, as I left Shetland on a ferry to go to Orkney, with Chris Wilford, the head of public affairs, and Mark Francis, the director of enforcement and market oversight. Apparently, that is a proper job title; I thought it was some sort of ironic term, but that is what is in his contract. The response was, “Of course we are accountable, but we don’t like being accountable to you. This was an informal process.” All I was asking was for them to come along, sit in room and watch a documentary, along with the people who had lost their life savings to this man, and explain the decision that they had taken. That was all they had to do. They could walk out of the room at the end of the night, and I would be able to ask no more of them, but they were not even prepared to do that. I thought I would be up against some really slick types, but I have rarely come across two more nervous-sounding individuals.
Mr Carmichael
That could be right, but I doubt it. My reputation is as a friendly and approachable character. We went through the process and eventually I said, “If these people had not taken that court action, how much would any victim of Alistair Greig have got back?” The silence was absolutely deafening. I let it run for as long as I could, and eventually I said, “Well, I think I understand now why you are so reluctant to come to the House of Commons next Wednesday.” The call did not go on much after that, but I did say that I thought that the matter required escalation, and asked them to call back on Monday with arrangements for me to speak to the chief executive. I did not get a call, but I did get an email on Monday saying that they had nothing further to add.
The chief executive of the Financial Conduct Authority is Nikhil Rathi. Interestingly, a couple of years ago that job commanded a salary of £455,000 per annum. I calculated that the Prime Minister’s salary is about 37% of what we pay the chief executive of the FCA. For jobs like that, it often feels that the more you pay, the less you get. I contrast the lack of moral courage of people like that, who will not sit in a room with the people whose lives have been affected by the decisions they have taken, to that of some of the people who were in the room last night, including the solicitors Philippa Hann and Robert Morfee. At first, the judge in the Sense Network case was not going to turn up, but he was there in the room. We expect judges to plead the independence of the judiciary, and rightly so, but out of respect for what these people had been though, he was prepared to turn up, watch the documentary and share the space with them. That spoke well to his strength of character.
Another person who was in the room was Judy Greig, the ex-wife of Alistair Greig, who was responsible for the scheme. She divorced him after his crimes came to light. He made himself bankrupt, but she refused to do that, so she has ended up carrying some of his debt. She is now 72 years old. She is working in a supermarket and still supporting the victims of her husband’s criminality. Her remarkable strength of character is in contrast to that of people like the chief executive of the FCA who, despite the very well-funded taxpayer salary that they get, simply lack the decency and moral courage to sit down in a room with their victims.
That is why I think that the question of culture is at the root of the issue. Since I became interested in the last few days in the detail of what was going on in the FCA, I have found very little to offer me comfort. Apparently, the FCA said that 60 of its staff were earning salaries below the £29,500 per year set by the Joseph Rowntree Foundation as the minimum amount that people need to earn to reach an acceptable standard of living. It is a possibility that the FCA will establish its own hardship fund in 2024, if there is enough demand among staff. This is an organisation where the chief executive is paid £455,000 a year.
Some of the commentary on the culture in the FCA is pretty damning. In one anonymous online report, a former colleague described the CEO as
“a very high IQ, but not as much EQ”—
emotional quotient. As we know, culture comes from the top of an organisation downwards. Unite, the union that represents many FCA workers, talks about the “toxic” environment for staff representatives, who have been given “minimal information” by their bosses. Again, this comes down to culture. How the FCA treats its staff reads across to how it treats people like my constituents, who find themselves in need of its services.
We set up the FCA for a reason, and the FSCS for another reason. The FSCS was only supposed to be there in case the FCA failed in any way. It is paid for by companies in the financial services sector, which are regulated, so they pay for the regulation, and for the failure of that regulation. This is something that the Government seriously need to look at soon. In the meantime, if the FCA wants to do anything to persuade me or anybody else in this House that I am wrong about the culture within that organisation, it can put the final sum of £1.9 million in a cheque to the 95 claimants who were the victims of Alistair Greig and Midas Financial Solutions.
Iran-Israel Update
Alistair Carmichael Excerpts(4 days, 7 hours ago)
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The Prime Minister
My hon. Friend is right to highlight Iran’s influence, including its missile shipments on the surrounding seas, and I am pleased that the United Kingdom is playing its part in doing something about that. HMS Diamond is bolstering our maritime presence in the region as we speak, and the UK has previously interdicted the supply of Iranian missiles being smuggled to the Houthis and others, both last year and the year before. We will continue to be vigilant in the area.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
I hope the Prime Minister has heard the very strong and broad consensus in this House on the need for stability and de-escalation. When he speaks to Prime Minister Netanyahu, will he make it clear to him that if Israel were now to proceed with its much-anticipated attack on Rafah, it would be not only a humanitarian catastrophe for the 1.5 million Palestinians who are sheltering there and make the release of the hostages more difficult, but make that stability and de-escalation more difficult to achieve and, as a consequence, would not have the support of this Government?
The Prime Minister
We have repeatedly raised humanitarian concerns with the Israeli Government. Just the other week, the Foreign Secretary set out our views on the situation in Rafah.
Extreme Weather Events: Resilience
Alistair Carmichael Excerpts(2 months, 3 weeks ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Alex Burghart
As the hon. Lady will have heard me say earlier, the Cabinet Office has a co-ordinating role that brings together lead Government Departments and local responders. It would be under that guise that different Government Departments would meet to discuss issues of the sort that she describes.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
Even by the standards of what we are accustomed to in the northern isles, the last week has been exceptionally disruptive. I associate myself with the previous expressions of gratitude to the road staff, electricity engineers and others who have gone about their jobs, and to those who are responding even though it is not part of their job. The response of farmers, who just get on with clearing the snow with a bucket on the front of their tractor, has been phenomenal. Is this not a moment to pause and reflect that some of the changes proposed in other parts of Government could weaken our resilience? The switch-off of the copper wire network for telephones and the proposed increase in the response time of the search and rescue helicopter provided by the coastguard from 15 minutes to 60 minutes will leave us in a worse position if they are allowed to happen. Can the Cabinet Office do something to ensure that they are not?
Alex Burghart
I have landed at Tingwall airport in a storm in the summer, and that was frightening enough.
Alex Burghart
No. One can only imagine what it has felt like in the Shetlands over the past week or so. My sympathies are with the right hon. Gentleman’s constituents. To his point about general resilience, the Government are trying to take a whole-system approach to understand exactly how we can work with emergency responders and those who are responsible for our national infrastructure. We are making progress, but there are always areas in which we can do more work.
Oral Answers to Questions
Alistair Carmichael Excerpts(3 months ago)
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Mr Alistair Carmichael (Orkney and Shetland) (LD)
The Parliamentary Secretary, Cabinet Office (Alex Burghart)
The Cabinet Office does not hold data centrally regarding personal smartphone use. We are committed to ensuring that Government business is conducted securely and to supporting individuals in meeting their security responsibilities. In March last year, we published guidance concerning the use of non-corporate communication channels for Government business, which set out considerations around the use of private devices.
Mr Carmichael
I may be part of a very small and shrinking group, but I think it is sensible that Ministers, officials and advisers should be able to share their thinking and thoughts in private on occasion. However, the truth of matter is that the constant drip of stories—whether about Boris Johnson, Nicola Sturgeon or anybody else—and WhatsApp messages not being available to hold people accountable, is harming public confidence in government and politics. Will the Minister look again at this to see how we can have good, accountable and transparent government?
Alex Burghart
The right hon. Gentleman raised important points. I draw his attention to the document we published last year: “Using non-corporate communication channels (e.g. WhatsApp, private email, SMS) for government business”. I think he will be particularly interested in the summary table on page two.
Oral Answers to Questions
Alistair Carmichael Excerpts(5 months ago)
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Saqib Bhatti
As I said, there will be a duty on the largest social media platforms that will require them to tackle fraudulent adverts. That will have a significant impact in preventing a range of online frauds, including romance scams and scam ads. I will also talk to the Economic Secretary to the Treasury on the hon. Member’s behalf, because the Government have a fraud strategy.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
The Minister for Data and Digital Infrastructure (Sir John Whittingdale)
We have regular meetings with Ofcom and telecommunications providers to discuss the migration from analogue to digital, and in due course the retirement of the copper network. Ofcom has set out high-level conditions for the gradual deregulation of BT Group’s copper-based network in the future, but it is too early to determine the process that will trigger the complete deregulation. Ofcom will consider that in the next regulatory review period.
Mr Carmichael
Last year, some of my constituents in Shetland were without electricity for six days. Moving to voice over internet, they will have a resilience of one hour. What assurance can the Minister give me that my constituents will not be left cut off without communications after the copper network is withdrawn?
Sir John Whittingdale
The decision to migrate from the public switched telephone network to voice over internet is one for the industry, but nevertheless we are following this very carefully. Ofcom has regular discussions, and I, too, have been meeting Ofcom. The right hon. Gentleman is right that we need to make it certain that vulnerable consumers are protected. Ofcom will ensure that providers give them back-up in the event of a power outage, and it will be their duty to ensure that that is sufficient.
Andrew Griffith
The Government are committed to ensuring that the UK has talent that supports research and innovation and drives growth. That is why we are investing millions in the brightest researchers through scholarships, PhD placements and fellowships in technologies such as artificial intelligence and quantum.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
Sir John Whittingdale
I can tell the right hon. Gentleman that the counter-disinformation unit is there to flag up to platforms potentially misleading information, but it has no power to have it removed. I can give him an assurance that it does not identify any Members of this House or professional journalists.
Security Update
Alistair Carmichael Excerpts(7 months, 1 week ago)
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The Deputy Prime Minister
I do not think I have had chance from the Dispatch Box to pay a genuine, heartfelt tribute to my immediate predecessor as Deputy Prime Minister. Having done the job for a few months, I have a particular appreciation of all the work that my right hon. Friend did when he was in that post.
In respect of the volume of prosecutions and convictions, we seek to be as transparent as we can be with the House. I am sure it is something that we can take away and look at with a desire to do as my right hon. Friend asks. I cannot give him a firm commitment at the Dispatch Box, but if it is possible, I shall seek to do so.
We keep the MOU with the ISC under review. We do not have any current plans to change it, but we keep it under review.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
Yet again, we are watching the horse disappear over the horizon and shutting the stable door behind it. Every time we act to take on China, everything the Deputy Prime Minister boasts about is always stated reactively. Just for once, could we get ahead of the curve and take action in relation to genomics and, as I and others have been urging for months now, designate it as part of our critical national infrastructure, so that in a few months’ time, we are not again having to explain another failure?
The Deputy Prime Minister
I say gently to the right hon. Gentleman that he did serve in government and in Cabinet for five years, from 2010 to 2015, so he and other Members of his party need to bear some responsibility for the decisions made, although I would think that they would take pride in the decisions that we took. More recently, under this majority Conservative Government, we have taken a huge range of steps, including passing the National Security Act and the National Security and Investment Act.
The right hon. Gentleman raises a legitimate point about genomics and its relevance to critical national infrastructure. It is not currently designated as such, but in my role in the Cabinet Office, I keep the register of critical national infrastructure under review, and I am exploring the matter.
All-party Parliamentary Groups
Alistair Carmichael Excerpts(9 months ago)
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Sir Chris Bryant
I will come on to the Panel of Chairs a little later.
I rather enjoyed that point of order, because I think the hon. Member for Christchurch (Sir Christopher Chope) is complaining that he has a copy of the relevant document that he wanted.
APPGs are great, but we have too many. There is a great deal of duplication, and I suspect we are all guilty. Many of us end up creating another new APPG on another new medical condition that is somewhat similar to other APPGs, and so on. Colleagues are often a bit naughty in trying to make every APPG publication look remarkably like a Select Committee report, knowing perfectly well that, when it is referred to on the “Today” programme or on ITV, the APPG will be referred to almost identically as a “Committee of MPs,” which is unfortunate because we should rigorously protect the authority of Select Committees and official communications of the whole House.
As I said earlier, I sometimes feel that APPGs are the soft underbelly of the way we do parliamentary lobbying. One Member, who I am not naming—I do not even know who it is—is an officer of 88 all-party parliamentary groups, and I do not think they could possibly do due diligence on all 88 groups.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
I was not here at the start of the debate. I tuned in and have been following it on the television. I heard the speech from the hon. Member for East Worthing and Shoreham (Tim Loughton), and I found that there was more to this than I had previously realised. I make all the due apologies, but I think it is better to make a late intervention than no intervention.
The point the Chairman of the Committee makes about the quasi-Select Committee reports has some substance, but he has to remember that not everybody or every party in this House has an automatic right to be a member of a Select Committee. That privilege is given to the three largest parties only. The Liberal Democrats, the Democratic Unionists, the Green party and others do not have that opportunity to be part of the Select Committee structure. For that reason, our voice being heard through APPGs is very important.
Sir Chris Bryant
The right hon. Gentleman makes a very fair point, which I fully take on board. However, ever since APPGs were first created, the House has repeatedly wanted to ensure a clear distinction between reports produced by a group of MPs and ones produced officially by the House. That is an important distinction.
Not every grouping of MPs needs to become an APPG. I have chaired an APPG on acquired brain injury, and it was often difficult to get it going, because all the Conservatives on it kept on being made Ministers—they then got sacked and then they were made Ministers again. One of them, the right hon. Member for Plymouth, Moor View (Johnny Mercer), may be about to become Defence Secretary—I have co-operated with him on this subject for a very long time—and another is the Northern Ireland Secretary. Keeping APPGs going is sometimes problematic, because the people who are most interested sometimes get other jobs that mean that they cannot take part. But there is no reason why someone cannot continue the work without being in an APPG.
I am not sure whether the hon. Member for East Worthing and Shoreham was irritated when he kept getting text messages from APPGs saying, “Can you come to Room R for two minutes at 2 o’clock because otherwise we will not be quorate for our AGM.” That is an inappropriate way of doing our business. If we cannot get five genuinely interested people along to an AGM, it probably should not be an APPG, especially if it has some external financial interest. The danger is that nobody is exercising proper due diligence over the finances.
For some of us, APPGs have become a bit of a tyranny. The hon. Gentleman says that he is chair of nine, and he is also an assiduous member of a Select Committee and he is regularly in the Chamber. It would benefit us all if there were fewer all-party groups and, as I say, there is reputational risk here. The Committee expressly asked me to say that it expects that the rules we are introducing will lead to fewer all-party groups. That is the express intention of what we are doing.
Let me be clear about what we are doing. As has been mentioned, we propose that APPGs will be able to have only four officers. The intention is to make sure that every one of those officers takes a proper interest in the running of the APPG. Rather than having 10 vice-chairs, four treasurers and all the rest of it, we propose that there be four officers, who are charged with making sure that the group is run properly. We also propose that all APPGs must have an up-to-date list of 20 supporters—registered members. Thirdly, we propose that a Member can be an officer of only six all-party groups, as has been mentioned. Again, part of the reason is that we want these people to be able to exercise due diligence over the running of the group. I am not questioning the hon. Gentleman here; I belong to nearly all the all-party groups that he chairs and he has admirably driven forward issues, including on the British Museum—that was an all-party group that I founded. I admire all that work, but we do want to make sure that we do not imperil the reputation of the House.
Sir Chris Bryant
At present, they would turn to either Philippa Wainwright, who is the registrar of the APPGs, or to James Davis. If they really wanted to, they could also turn to either Eve Samson, who is the Clerk of the Journals, or Daniel Greenberg, the Parliamentary Commissioner for Standards. All of these arrangements have been agreed between the Clerks and the two registrars. Everyone stands ready to provide people with advice. I know Mr Speaker stands ready to provide chairs for AGMs or extraordinary general meetings when we get back in September. One thing that we have exceptionally allowed is that people will be able to do extraordinary general meetings virtually—online—which will make it much easier for people to comply.
I will try to stop now. I know that there is some frustration in the House and I fully understand that. As I have said repeatedly to the Leader of the House, the shadow Leader of the House and Mr Speaker, I am not sure that there is an easy consensus to be found on proceeding.
Sir Chris Bryant
I am not giving way again. I am really sorry, but I have been trying to leave the stage for some time.
This is the next scandal coming down the line. I know that the vast majority of Members want to address the matter. We cannot possibly do so if we remain with 762 all-party parliamentary groups. That is more than there are Members of this House. It is almost as many Members as there are in the other place. If a group cannot get five people to an AGM, it probably is not really an APPG and should not have the imprimatur that the APPG title guarantees it. I urge the House to support these measures today. Actually, the authority is vested in the Committee; it does not need to be agreed to by the House, but we thought that it was best for the House to be able to take a view as well.
Sir Peter Bottomley (Worthing West) (Con)
Through you, Madam Deputy Speaker, may I say to the hon. Member for Rhondda (Sir Chris Bryant) that he should use the word “vale” when he says goodbye? For those who were not here earlier, we were having a discussion about how “valet” was spelt and sounded.
I have obviously been remiss in not paying enough attention since the publication of the first report on all-party groups. That concluded that the risk of
“influence by hostile foreign actors through APPGs is real.”
It said that there had been
“a dramatic increase in the number of APPGs”,
commercial interests and the like.
That did not prepare me for the motion, and the conclusions that the Committee came to. The motion contains the words
“subject to any transitional arrangements agreed by the Committee on Standards.”
I had not realised that the Committee would make transitional arrangements without consulting us. I do not believe that I saw draft proposals that alerted me to that. That is my fault. I am not blaming the Committee, but I think that the Chair of the Committee is not right that delaying a vote on this would not allow for improvement; it would.
Mr Carmichael
Had I been able to intervene on the Chair of the Committee, I would have said that I agree wholeheartedly with his analysis, and his starting point about the need for reform. I fear that the proposals will result in a variety of unintended consequences coming down the track, but I am prepared to go with them for today if I hear some sort of undertaking, from the Committee or from anywhere else in the House, that there will be a review of them, so that if my fears about unintended consequences prove to be correct we can revisit them, and not just say, “We’ve done that; we’re not going back to it.”
Sir Peter Bottomley
We have heard that the Committee could, so to speak, impose the proposals even if the House rejects them. I think that we probably should vote on them, just to ensure that Members who are paying attention have the chance to express their view. I will vote against them on the basis that they should be reviewed.
I am happy to co-operate with the commissioner, the hon. Member for Rhondda, the Committee, the Clerks, the Lord Speaker and the Commons Speaker to help to make the improvements that people desire and that are necessary. Some implications of the proposals are not improvements; they are retrogressive.
Oral Answers to Questions
Alistair Carmichael Excerpts(11 months, 2 weeks ago)
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Jeremy Quin
The hon. Lady will not find me criticising civil servants who are hard-working, who do their job, who are committed and who continue to provide tremendous expertise to our country, but I take issue with her earlier points. We take any allegations of bullying seriously, and we need to ensure that they are all followed up. I do not know if the same can be said of the Labour party—people in glass houses should not throw stones. I think there were more allegations even today about activity inside the Labour party. There was five years of antisemitism that was not addressed, and I do think the Labour party should sort out its own issues before trying to sort out the Government’s.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
The Chancellor of the Duchy of Lancaster and Secretary of State (Oliver Dowden)
The UK’s genomics databases are not designated as critical national infrastructure. However, through our recently published resilience frame- work, we have set out how we will work in partnership across all sectors to ensure that they are individually resilient while also fully contributing to national resilience.
Mr Carmichael
I recommend that the Minister reads the speech that Secretary of State Blinken made on Tuesday, in which he outlined the threat that the abuse of genomics databases poses not just to security, but to democracy as a whole. Contrast that with the situation in this country, where we now have a Chinese genomics giant opening a new lab. When are the Government going to wake up to the threat here?
Oliver Dowden
I assure the right hon. Gentleman that we take these threats seriously. The point about critical national infrastructure is that we designate it in relation to things that are important to the safe and secure day-to-day running of the United Kingdom—literally keeping the lights on. That does not mean that we do not take very seriously the threats he outlines. It is something that I am raising with the Department of Health and Social Care, which is the lead Department for genomics.
Security of Government Devices
Alistair Carmichael Excerpts(1 year, 1 month ago)
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Oliver Dowden
As my right hon. Friend knows, the Online Safety Bill is currently passing through Parliament, and does not directly fall under my jurisdiction as Chancellor of the Duchy of Lancaster. However, that Bill does introduce world-leading reforms, and we are making good progress.
Across the board, it is important for right hon. and hon. Members to appreciate that this is one small part of what the Government are doing. Through the National Cyber Security Centre, we genuinely have world-leading expertise, and we have countries from around the world coming to the United Kingdom to understand that expertise. All ministerial decisions are informed by that, but it is also the case that technology is moving very rapidly, so we have to constantly move to make sure that we deal with threats. We have to do so in a proportionate way, because we also have to recognise that there are many benefits from people using new forms of technology, and we do not want to stifle innovation and growth.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
I congratulate the Minister on a quite remarkable achievement: he made that entire statement without once using the words “China” or “Chinese”, which I think tells us quite a lot about the way in which the Government approach matters like this. This is the right thing to do, but I have to say to him that playing whack-a-mole like this—one week it is Huawei, next week it is Hikvision, and the week after that it is TikTok—is no substitute for a coherent cross-Government strategy. If he really wants an evidence-led, proportionate piece of policy for Government, why do the Government not now move to include genomics in the definition of critical national infrastructure?
Oliver Dowden
On the point about our approach to China, I gently say to the right hon. Gentleman that he should pick up a copy of the integrated review refresh. At pages 32 and 33, it sets out in explicit terms our approach to China. We are totally clear-eyed about the threat in respect of China: it has been, and remains, the most significant state threat faced by the United Kingdom, but it is also the case that China remains one of the largest economies in the world, so we cannot totally disengage from economic relations with China. The approach of “protect, align and engage” is a sensible and proportionate one that puts us very much at the front of the pack, alongside the United States and Japan, in the toughness and robustness of our approach to China.
Public Procurement Processes
Alistair Carmichael Excerpts(1 year, 2 months ago)
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Mick Whitley
I thank my hon. Friend for that intervention; I am just about to cover that point.
Only by including a social value calculation can we ensure that every contract is transparent, and that its impact on local communities, job creation, the standard of jobs and the local economy is taken into account and plays a key part in shaping the final decision. Its absence from the Bill is even more surprising given the noise the Cabinet Office made in response to the consultation on the original Green Paper, “Transforming Public Procurement”. The Cabinet Office wrote last December that social value
“can play a big role in contributing to the Government’s levelling-up goals.”
Mr Alistair Carmichael (Orkney and Shetland) (LD)
Social value is not restricted to these shores. The hon. Gentleman will be aware that China has a very prescriptive regime, particularly in relation to people in Xinjiang province. In this country, Hikvision produces CCTV equipment for councils. Does he agree that the Government need to be much more careful about allowing such companies into the UK market?
Mick Whitley
Yes, I do agree with the right hon. Gentleman.
In December 2020, the Cabinet Office published a social value model that said there should be a requirement on Government Departments to evaluate social value when awarding contracts, and not, as previously, just to consider it. Yet when it came to publishing the Procurement Bill, there were no explicit references to social value, so Labour MPs and peers have raised it as something that should be integral to the Bill and the public procurement process.
Another problem with the Procurement Bill as it stands is that it contains no provisions to ensure that bad employers are prevented from winning contracts. Far too many bad employers exist and far too many of them profit from public procurement contracts. A decent Procurement Bill can address that with construction projects nationally and by legislating to tie local government contracts to a clear and fair employment charter of the kind that already exists in the Liverpool city region.
Contracting authorities should be obliged to build into every contract that involves even a penny of public money a cast-iron guarantee that fair employment practices and the right to trade union recognition will be respected. There are other aspects of public procurement, such as strict conditions regarding the need to meet our climate targets and helping to regenerate our country through a green industrial revolution, but I wish to finish on a very important principle that must be embedded into the reform of public procurement: a watertight mechanism to put an end to cronyism.
The Bill hands more powers to Ministers without any meaningful safeguards to ensure that decisions will not be determined by favouritism at best and cronyism at worst. This is not an abstract issue: it is, sadly, a real problem that has led to major scandals. While the country was rocked by the curse of covid, a VIP lane was opened to enrich friends of Conservative Ministers and donors to their party coffers. Taxpayers’ money was doled out without any proper scrutiny. As a result, orders of personal protective equipment were handed out to companies that had no track record of producing or providing medical equipment. More than half the £1.7 billion paid by the Government to politically connected VIP companies to supply PPE in the pandemic was spent on equipment that has not been used, according to new figures.