Support for Ukraine and Countering Threats from Russia

Debate between Alistair Carmichael and James Heappey

Wednesday 2nd March 2022 Commons Chamber

[James Heappey]

Again, the right of family members to come here has already been offered, and it is for 100,000 people, as I understand it, which is extraordinarily generous. I understand the hon. Gentleman’s point and his concern, and I know that many hon. Members see this as an increasingly totemic issue.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

rose—

[James Heappey]

I will take the right hon. Gentleman’s point, but I do want to conclude.

[Mr Carmichael]

I am grateful to the Minister for giving way, but is this not a moment to reflect that if the Nationality and Borders Bill, which is currently in the other place, were to pass with clause 11 as part of it, any Ukrainian coming here to seek refuge who passed through another country to get here would be criminalised and treated as a second-rate refugee? Does that not make him feel a little uneasy? Is this not a moment for the Government to reconsider that proposal?

[James Heappey]

The right hon. Gentleman, who is a skilled parliamentarian, asks his question in a way that makes it uncomfortable to hear. However, the reality is that the criminalisation of those illegal routes—as they will be—is an important deterrent against the illegal criminal gangs who so viciously and exploitatively bring people across the channel at huge expense and in huge danger. Actually, legislation that might change that situation, provided that it is accompanied with safe and legal routes, and I have every confidence that it will be—[Interruption.] Well, I beg to differ. I do not share his analysis of the Bill or its effect and the need for it.

Migrant Crossings: Role of the Military

Debate between Alistair Carmichael and James Heappey

Tuesday 18th January 2022 Commons Chamber

[James Heappey]

We speak to our French counterparts regularly, and the Sahel is a frequent topic of conversation. The French would argue that they are going through a transition from one operation to another—from Barkhane to Takuba—but that is clearly a decision for France. The UK’s commitment in the Sahel through the UN peacekeeping mission operation MINUSMA and our support to the French through Op Newcombe remains in place, but it will not surprise my right hon. Friend to know that the UK is looking for opportunities all the time to do more in western Africa. We recognise that the instability in the Sahel poses a direct threat to the UK’s interests. Indeed, were it not for the telegraphing of the intent of my right hon. Friend the Member for Bournemouth East (Mr Ellwood) to ask the urgent question, I would have been in Accra today having exactly those conversations. But it is a pleasure to be here answering these questions.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

I welcome what the Minister says about not using sonic weapons—an idea that was described by a Home Office source in the press today as “f***ng bonkers”. When the Home Office is saying that your idea can be classified as that, you have to think you have taken a wrong turn in your planning somewhere. May I press the Minister on the relationship between the Royal Navy and the Marines, on the one hand, and UK Border Force? He tells the House—I welcome the assurance—that the Royal Navy will not be engaged in pushing back boats with refugees in them, but that leaves open the door that the UK Border Force might still do that. In that case, how can he possibly say that operational primacy sits with the Royal Navy?

[James Heappey]

In answer to the right hon. Gentleman’s suggestion that there may be some disagreement between Departments, I can only reflect that my great friends the Under-Secretaries of State for the Home Department, my hon. Friends the Members for Corby (Tom Pursglove) and for Torbay (Kevin Foster), work with me all the time, not just on this matter but on Op Pitting and all sorts of other issues where Home Office and MOD interests align. The right hon. Gentleman is right to note that I was clear that Border Force is developing a tactic. It may well be that the commander is comfortable with that tactic being employed, and there is a difference between the reason why the Royal Navy and the Royal Marines will not deploy that tactic and the reason why Border Force may. Border Force has the appropriate vessels, potentially, to do so safely; the Royal Navy and the Royal Marines do not.

Tourism Industry: VAT Reduction

Debate between Alistair Carmichael and James Heappey

Wednesday 21st November 2018 Commons Chamber

[Mr Carmichael]

The hon. Gentleman makes the point well. I am aware that Northern Ireland has a particular issue as it shares a land border, a fact that is fairly well discussed at the moment, with the Republic of Ireland. The Republic is one of those countries that in 2011—I will doubtless be corrected if I am wrong—cut their rate of VAT on tourism services to 9%. There is a particular sensitivity about the cross-border issues there, which may assist the hon. Gentleman in making the case, because there is a good working example on his own doorstop of the opportunities that are presented.

I know it is counter-intuitive in the Treasury to suggest that cutting taxes will bring an increased return in revenue, but there is good objective evidence to support that very proposition. I was a member of the Cabinet in 2015 when the Budget cut the rate of spirits duty by 2%. We did that expecting it would result in a reduced return of about £600 million, but we felt it was an important thing to do. In fact, the revenue return as a whole was significantly increased. So having taken the expected hit, we got a better return at the end of the day. This is the same thinking that underpins the Government’s reductions in corporation tax in recent years.

[James Heappey (Wells) (Con)]

The Somerset Tourism Association and Visit Somerset have made representations to me on this matter and they very much agree with the right hon. Gentleman that a reduction in VAT on overnight accommodation and visitor attractions leaves more money in the pockets of visitors to spend on other things during their stay. So the money is not lost to the system; it grows the visitor economy even further.

[Mr Carmichael]

The hon. Gentleman leads me on nicely to my next point. I was going to try to explain the way in which this reduced level of VAT feeds into other parts of the economy and the effects it can have. It is argued, with some force, that the reduction in VAT can lead to higher employment levels and better wages, which in turn leads to increased income tax receipts. The increased profitability of businesses, some of which are currently marginal and probably not even paying much tax at all, provides the opportunity for greater returns in corporation tax. Eventually, this feeds through to higher expenditure in other sectors—this is the so-called “tourism multiplier”, which goes back to the hon. Gentleman’s point. It is estimated that for an additional £1 spent in tourism we will see another 70p generated in spend in other sectors.

The European Union VAT laws currently require a broad uniformity of VAT and sales taxes across the whole EU, but there is a specific derogation for certain supplies. The list of these derogations is set out in annex III to the principal VAT directive 2006/112/EC. The three items of particular relevance to the tourism sector are items (7), (12) and (12a). For the benefit of the House, let me read those into the record. Item (7) specifies:

“admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar cultural events and facilities”.

Item (12) specifies:

“accommodation provided in hotels and similar establishments, including the provision of holiday accommodation and the letting of places on camping or caravan sites”.

Item (12a) relates to

“restaurant and catering services, it being possible to exclude the supply of (alcoholic and/or non-alcoholic) beverages”.

It is important that the House understands that we make this case within a fairly clearly defined area, because the question of what constitutes tourism services, and other such issues, is already fairly well established in European law.

The principle of uniformity, subject to these derogations, is now stretched to breaking point. In Europe, only three countries—the United Kingdom, Denmark and Slovakia —continue to charge the full 20% rate of value-added or sales tax. Every other country charges a reduced rate. Some charge as low as the 5% minimum floor set by EU law, and they range right the way through to 15%. The rate in the Republic of Ireland has now been set at 9%, which has been of concern to operators in Northern Ireland and will doubtless affect the considerations of the hon. Members for Strangford (Jim Shannon) and for South Antrim (Paul Girvan), who are sitting behind me.

I know how the Treasury likes to do these things— I have seen it for myself many times over the years—but I would like to hear from the Minister that there is a willingness in the Treasury to engage with a wider range of people and a wider range of stakeholders. The Cut Tourism VAT campaign commissioned Nevin Associates to produce analysis. Its modelling showed that a cut to 5%—the minimum allowed—could generate £5.3 billion in gains to the Treasury over 10 years.

Superfast Broadband: Rural Communities

Debate between Alistair Carmichael and James Heappey

Tuesday 21st February 2017 Westminster Hall

[Mr Carmichael]

The position will never be uniform across any community but—I think that this distinction is material—there is a range of opportunities available in urban areas that are simply not available to those of us in more rural areas. It is invidious to play one side off against the other—in making the comparison between urban and rural, I am merely highlighting the difference and not trying to set one community against another.

[James Heappey (Wells) (Con)]

Does the right hon. Gentleman share my view that it must be just a coincidence that, in many of the areas selected for commercial roll-out, which the hon. Member for Edinburgh North and Leith (Deidre Brock) talks about, BT seems not to have connected with fibre some of the small business parks and light industrial estates? I am sure he will agree that there is no way that that can be because BT is trying to make some money out of leased fibre lines to those premises.

[Mr Carmichael]

I do not want to turn this into a whinge-fest about British Telecom, because that is just too easy. Our role in this debate is to look at a more strategic picture. The fact is that where there is provision, business and economic development follow. That is why it needs strategic, political and regulatory intervention. It is in all our interests that we maintain the widest possible spread of economic development. If the political will and regulatory effort is put into getting the roll-out, we will find that the economic opportunities follow.

The final illustration I have on the difference between rural and urban broadband is that I asked my staff to run broadband speed tests on their own machines. I asked my caseworker in Shetland to run the broadband speed checker first of all. On broadband.co.uk, she recorded a 0.3 megabits download speed. My researcher based in the House of Commons, who has an address in Surrey, did the same test and came up with 184.12 megabits per second. If that is not a digital divide, I really do not know what is.

--- Later in debate ---

[James Heappey]

I am grateful to the right hon. Gentleman for giving way again—he is being very generous with his time. I absolutely agree with him on that point. Devon and Somerset are the last areas to get their phase 2 contract awarded, but once that phase 2 contract is awarded and the premises within the 91st to 95th percentiles are known, why would we wait to deliver the universal service obligation sequentially? If we know what the final 5% is, let us get on with delivering the USO concurrently and employing whatever technology suits rather than a central solution from above.

[Mr Carmichael]

I think that will be the answer to filling the last 5%, but there will not be a single solution. I am frustrated by the way in which the fibre roll-out is now holding some things up. We know that the last 5%—or whatever it will be—in Scotland will be delivered by Community Broadband Scotland, which can only come in when we know what is left. However, those responsible for the fibre roll-out wanting to sweat the asset, effectively, is leaving communities waiting at the end of the queue.