Greece

Bob Blackman Excerpts

Monday 29th June 2015 Commons Chamber

[Mr Osborne]

I can assure my hon. Friend that we are taking such steps, and we are working closely with the Governor of the Bank of England. My hon. Friend’s broader observation about credible fiscal policy, whether in the United Kingdom or in the broader European economy, is well made.

[Bob Blackman (Harrow East) (Con)]

One of the options that the Greek Government appear to be pursuing is that of a Russian bail-out. What assessment has my right hon. Friend made of the impact of such a scheme on banks in London and the eurozone in particular?

[Mr Osborne]

As I said earlier, I do not think that anyone has been particularly enamoured with Syriza’s foreign policy, but what has been clear over the past few weeks is that it really needs to resolve the issue it faces with the eurozone.

Royal Bank of Scotland

Bob Blackman Excerpts

Thursday 11th June 2015 Commons Chamber

[Harriett Baldwin]

I have to disagree with the hon. Gentleman. A long time has passed since the initial flotation, during which the markets have done a lot better. The markets have welcomed the re-election of a strong Conservative Government who have turned the economy around and made huge improvements in our public finances. It is largely due to that that the price is so much higher.

[Bob Blackman (Harrow East) (Con)]

As we return RBS to the private sector, there are three alternatives. One is for the Government to hold on to the shares for as long as possible in the hope that the share price increases. The second is to sell the whole lot in one go and hope that we get the right price. The third is a phased sale that maximises the income for the taxpayer. Which does my hon. Friend believe is the right option?

[Harriett Baldwin]

My hon. Friend ably summarises a range of options. Today’s statement clearly illustrates that we have rejected his first option of doing nothing. The Government have never shrunk from making difficult decisions that are in the right interests of the country’s economic future. On the second option of selling everything in one go, it is not our opinion, given the size of the holding and as the reports make clear, that the sale can be done in short order; it will take a period of time—which leaves us with the third option.

Equitable Life

Bob Blackman Excerpts

Thursday 26th February 2015 Commons Chamber

[Bob Blackman (Harrow East) (Con)]

I beg to move,

That this House congratulates the Government on providing a scheme to compensate victims of the Equitable Life scandal; welcomes the Government’s acceptance of the Parliamentary Ombudsman’s findings in full; notes that the Parliamentary Ombudsman recommended that policyholders should be put back in the position they would have been in had maladministration not occurred; further notes that most victims have only received partial compensation compared to the confirmed losses; and calls on the Government to make a commitment to provide full compensation during the lifetime of the next Parliament as the economy and public finances continue to recover.

In the run-up to the 2010 general election, the Conservative party discouraged candidates from signing any pledges, with one or two notable exceptions, the most notable being that of seeking justice for Equitable Life policyholders. Having done some research, I was very proud and pleased to sign that pledge. After I was successfully elected, I was immediately elevated to become co-chairman of the all-party group on Equitable Life policyholders. I am pleased to be able to report that we now have more than 200 members. That demonstrates what an important issue this is for people in this House and beyond.

It is important that we look at what is different about Equitable Life policyholders compared with those in other such schemes. With the advent of private pensions and the encouragement of individuals to save for their future retirement, Equitable Life developed an almost Ponzi-like scheme whereby its representatives went out and sold policies for which they promised bonuses and pensions that were beyond belief, and people were convinced to sign up for them. When that was reported to the regulator and the Treasury, they took no action whatsoever. This was all very well while money was coming into the pot, but eventually the amount coming in would be less than that going out, and therefore the scheme would collapse. The scheme therefore became too big to fail, because had it failed, the Government of the day, of whichever party, would have had to pick up the full cost of compensation to the policyholders.

The whole scandal was covered up during the scheme’s entire period of 20 years. A position was reached of a cosy relationship between the company, the regulator and the Government whereby they would not unveil the situation. The Equitable Members Action Group had to drag the Government through the courts. Eventually, in 2004, we had the publication of the Penrose report, which made recommendations about the position of Equitable Life. That was not good enough, because it did not do anything to compensate the people who had suffered. Then the parliamentary ombudsman made clear recommendations that the policyholders needed to be moved from the position where they had suffered a relative loss back to the position they would have been in had maladministration not occurred. That was very important. Equally, the ombudsman accepted that it would be appropriate to consider the potential impact on the public purse of any payment of compensation.

I am delighted that almost the first legislative step by the coalition Government was to put in place a scheme to compensate the individuals who had suffered a relative loss. We had argued in this Chamber for justice for those policyholders. There are various types of policyholders who have received different types of compensation. The first—

[Ian Paisley (North Antrim) (DUP)]

rose—

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

rose—

[Bob Blackman]

May I specify the types first, and then I will take interventions?

The first set of policyholders were those who took out their policies and had an annuity in place pre-1 September 1992. They were specifically excluded from the compensation scheme. I will come on to what happened to them subsequently. Secondly, there were the with-profits annuitants, who were given compensation of 100% of their relative loss—quite right too. Then there were the normal policyholders, who received an element of compensation. Unfortunately, when the legislation was set up, the public finances were in a scandalous state, and there was little money to allocate. I am delighted that the Treasury nevertheless chose to allocate sufficient funding to provide some £1.5 billion in compensation. There was £620 million to compensate the 37,000 with-profits annuitants, but, with the contingency fund of £100 million that was put in place, plus the costs of administering the scheme, that left only some £775 million to be spread between the 945,000 other policyholders, who therefore got only 22.4% of the compensation that they were due. As a result, those individuals have not been put back into the position that they should have been in had they not suffered the relative loss.

[Mr Mitchell]

My hon. Friend is making an extremely good and most important speech. I agree that the coalition Government deserve considerable credit for having tackled this early on in their term in office. Since, sadly, I cannot be here for the Minister’s speech, will my hon. Friend pursue the issue of the speed at which these payments are being made? Many of my constituents have had to wait a considerable length of time. I would be most grateful for his and the Minister’s reassurance that everything is being done to make these payments as rapidly as possible.

[Bob Blackman]

It is fair to say that the all-party group and EMAG have been on the backs of the Treasury Ministers responsible. The current Minister is in her place. Her predecessor, my right hon. Friend the Member for Bromsgrove (Sajid Javid), was very helpful in making sure that the scheme was speeded up and that people got the compensation due to them. Most importantly, he decided that he would not close the scheme, which could have been done under the legislation, until we had traced every one of the policyholders due for compensation.

[Philip Davies (Shipley) (Con)]

May I commend my hon. Friend on all his work on this issue over several years? Is not the crucial point in the motion that, with the public finances improving, the compensation already paid should not be considered the last word on the matter, and there should be more room to give proper compensation to people who need it? As I am sitting next to my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell), may I ask whether my hon. Friend understands the frustration of many people that the Government seem to have plenty of money to spray on things such as overseas aid and aid to India, which might be better spent on such compensation to people in this country?

[Bob Blackman]

The clear issue is that when the assessment was made of the amount of compensation due to policyholders—this point is crucial—it was decided that £4.3 billion should be paid in compensation. Clearly, £1.5 billion has been allocated, although it has not all been spent, as my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell) mentioned, meaning that a compensation bill of £2.8 billion is still outstanding.

The Prime Minister quite rightly said at the Conservative party conference that as the economy recovers and we fix this country’s problems, tax rates will come down, but I would say that there is a still a bill to be paid to the people who saved for their retirement. Therefore, as the economy recovers and the public purse allows, we should compensate policyholders who have suffered a relative loss, as we committed to do at the last general election.

[Sir Edward Garnier (Harborough) (Con)]

May I congratulate my hon. Friend and the co-sponsors of the motion on bringing this matter before the House? I am a past and, I think, a continuing policyholder of Equitable Life; given yesterday’s debate, I suppose that is a matter of deep interest to the world. I am concerned that the amount of compensation to be paid to individual policyholders is relatively small. Does my hon. Gentleman agree that there is now a duty on the Government to get rid of these fairly small claims as quickly as possible? Many of my affected constituents are in their 70s and 80s, and they need satisfaction as soon as possible.

[Bob Blackman]

I completely concur with my hon. and learned Friend.

I should say that the Chancellor made a key and very brave move to compensate the pre-1992 trapped annuitants with a one-off payment of £5,000, which was doubled to £10,000 for those on pension credit. That was very welcome, but we are talking about the most vulnerable people trapped by the scheme, and my view is that they should receive total compensation. The estimate for total compensation for that element alone is £115 million, which I consider a drop in the ocean compared with the total pension bill due.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

May I congratulate my hon. Friend on bringing the motion before the House? As we are rapidly approaching that time in the political cycle called the Budget, I suggest that this is a golden opportunity for our Treasury team and the coalition Government to show that they have a big heart and meet the demands we are all making on behalf of our oldest and most vulnerable constituents?

[Bob Blackman]

I am sure that my hon. Friend the Economic Secretary is listening, but she will clearly not announce the Budget measures today. After this debate, however, I will seek a clear commitment from the political parties about what they will do if elected to government on 7 May. Although it would be welcome if the Chancellor stood up at the Dispatch Box and agreed a full compensation package, the key issue is that if he cannot do so in this Budget, Members and people outside the House will want to know what the political parties would do to compensate those who have suffered.

[Ian Paisley]

I congratulate the hon. Gentleman on getting this matter on to the Floor of the House. He is in danger of being canonised by the many thousands of people in Northern Ireland who are watching this debate closely because of how unfairly they have been affected. I hope that those on the Treasury Bench are listening to the points that Members have raised.

There have been announcements this week about the bonuses to be paid to bankers in banks controlled by the public purse, and some bankers have taken the personal decision to refuse bonuses if they so wish. At least they have the choice. The people who have suffered under Equitable Life have not got a choice. I hope that Treasury Ministers are listening, and recognise that if they want the future support of Opposition Members, they should address this issue before the end of this term.

[Bob Blackman]

I will call the hon. Gentleman my honourable Friend because he has been stalwart in defending the rights of the people of Northern Ireland who have suffered in this scheme.

The key point is that, according to the published figures, the Treasury had a surplus of £8.8 billion in January, which was remarkable given that we were expecting £6.5 billion. Some proportion of the additional £2 billion surplus could be put towards compensation for policyholders who have suffered.

[Iain Stewart (Milton Keynes South) (Con)]

My hon. Friend rightly mentions the surplus in January. We are coming to the end of the financial year, and many Departments may have an underspend in their allocated budgets. Would it not be a good idea to divert some of that underspend to the victims of Equitable Life?

[Bob Blackman]

I thank my hon. Friend for his suggestion. The Chancellor will be listening to such rumours, and will no doubt want to hoover up that money to dispense for appropriate good causes, of which this is clearly one.

[Jenny Willott (Cardiff Central) (LD)]

Does the hon. Gentleman agree that people have been pushed into an extremely difficult position, and that some of them are extremely close to poverty as a result of the amount they have lost? In many cases, they are not at an age at which there is anything they can do to replace the funds they have lost. They face a very uncertain future, as they have for many years, but there is absolutely nothing they can do to make a difference.

[Bob Blackman]

I do not normally agree with the right hon. Member for Holborn and St Pancras (Frank Dobson), but he has said:

“They were not like the people who put their savings into outfits offering dubious and extraordinary returns, such as those who decided to chance their savings with the Icelandic banks. The Equitable policyholders are in their current position through absolutely no fault of their own.”—[Official Report, 14 September 2010; Vol. 515, c. 781.]

He went on to say that those at fault were Equitable Life, the Government and the regulator.

[Mr Geoffrey Robinson (Coventry North West) (Lab)]

Like other hon. Members, I congratulate the hon. Gentleman on securing this debate and on keeping this very important issue live. He must be aware that there will never be a right time in the Government finances to put this matter right. The Treasury may have made a small budgetary surplus over and above what it expected in January, but the fact is that the Treasury debt is still huge. It is as simple as that.

The only way round this problem is to say that there will never be a financially right time, only a morally right time. That time is now, given the long lag, which has been characterised by denials and evasions. They also occurred in the contaminated blood scandal, which was perhaps even worse. The only way to deal with this is to pay the £115 million that the hon. Gentleman rightly mentioned, and to have a clear statement about future year-by-year reductions in the outstanding £2.8 billion, which the Equitable Life policyholders have wholly earned and wholly deserve. They should be awarded the whole amount, because that is the only way in which this dreadful ill can be rectified.

[Bob Blackman]

I thank the hon. Gentleman for that intervention. It is a great shame that my hon. Friend the Member for Leeds North East (Fabian Hamilton) was almost the sole individual on the Labour Benches during the Labour Government who promoted a compensation scheme. I commend him for his efforts to get his Government to introduce one. I wish that other Labour Members had promoted such schemes.

[Paul Flynn (Newport West) (Lab)]

Will the hon. Gentleman give way?

[Bob Blackman]

I will make a couple of points and then give way for the final time.

We are clear about what we want the Government to do. Irrespective of which political party wins the general election, we want full compensation for the pre-1992 trapped annuitants. As I have said, it would cost £115 million to compensate those individuals. Those are the most vulnerable individuals because they retired a long time ago and many of them are very frail. It would cost a relatively small amount of public money to give them proper compensation. I am afraid that the longer we delay, the fewer of them will be around, because they are dying off almost daily.

Secondly, as the hon. Member for Coventry North West (Mr Robinson) said, we should commit to a graduated full compensation package so that the policy holders are compensated as the public finances continue to recover. Individuals who took out pension policies some time ago are not necessarily reaching retirement age. Topping up their pensions over four or five years would therefore enable them to retire in the way that they expected.

[Paul Flynn]

May I state that I have a close financial interest in this matter? I remind the hon. Gentleman that it was discussed at great length by the Public Administration Committee in the last Parliament. Does he have a formula, which is what we were looking for, that suggests who is responsible for losses made? Can we have a scheme that is consistent for all pension schemes that get in trouble, such as the Allied Steel and Wire scheme, which has still not been resolved? If he has such a formula, perhaps it could be agreed to between the parties now, so that what is national responsibility, personal responsibility and company responsibility is accepted and we have a resilient formula that can be used for Equitable Life, Allied Steel and Wire and all those that go broke in the future.

[Bob Blackman]

I note the hon. Gentleman’s intervention. The key point is that the Equitable Life policy holders have been through the courts and through the parliamentary ombudsman, and the matter has been found in their favour. Maladministration clearly took place and a key decision was taken to put those policy holders back into the position that they would have been in had that maladministration not taken place. Clearly, other pension schemes are in trouble. There are a lot of pension schemes in trouble because the previous Prime Minister, when he was Chancellor of the Exchequer, raided private pension funds and thought that that was a golden opportunity. We must take that into account. That is not the case with Equitable Life policy holders, which makes this a different matter. We have to be careful about broadening out this subject to other pension schemes.

[Dame Anne Begg (Aberdeen South) (Lab)]

Does the hon. Gentleman agree that expectations have been raised and promises have been made? All that these people did was to invest in what they thought was a trusted company. They have done nothing wrong and they cannot for the life of them understand why it is taking so long to settle the matter.

[Bob Blackman]

These people have battled and struggled through the courts and through a long process to get justice. There are many of us, certainly on the Government Benches but also on the Opposition Benches, who say that all these people did was invest for the future and trust what they were told. They took a risk to a certain extent that the market would be appropriate, but they did not expect the level of maladministration that took place or the way in which they would be treated.

[Sir Alan Haselhurst (Saffron Walden) (Con)]

My hon. Friend has made an eloquent case. He referred to the great disappointment that is felt by so many people who believe that they deserve compensation for what happened. He has not mentioned this, but does he agree that there is also considerable anger among people who feel let down? Is it not somewhat ironic and very uncomfortable that the Government who have started to do something about it are taking so much of the blame?

[Bob Blackman]

I have commended the Government for the action that they have taken to set up the scheme. At the time of the legislation, we tabled a cross-party amendment to ensure that the trapped pre-1992 annuitants would be compensated, but the Government resisted it. I am delighted that the Government saw sense after the lobbying that took place and provided a degree of compensation. The Government should be commended for ensuring that there is a compensation scheme. However, we have an independent assessment of the total amount of compensation that is due—it was not done by EMAG or by the Government, but is independent—and £2.8 billion is still due.

[Mr Mike Hancock (Portsmouth South) (Ind)]

The hon. Gentleman is being extraordinarily generous in giving way. There is a unanimous feeling in the House that justice needs to be done for these people. We know how much is outstanding and there is a big difference between what people are due under the existing compensation scheme and what they are actually due. Surely what we need is not a five-year plan to pay the money back, but a one-off payment that is made as soon as possible. Many of these people will die before they get their just reward.

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. I appreciate that the hon. Member for Harrow East (Bob Blackman) has taken a lot of interventions and I have allowed him a lot more time than is normally the case in this sort of debate. I also appreciate that there will be further interventions and I am not suggesting that he concludes his speech immediately. However, I make a plea for very short interventions, because people who say that they are not going to make a speech, but that they would like to intervene, take up the time of people who sit here all afternoon with patience and politeness, waiting to make a speech. I will not be tolerant of long interventions, but I am tolerant of the hon. Gentleman, who is being very generous in taking so many interventions.

[Bob Blackman]

Thank you, Madam Deputy Speaker. I was going to draw my remarks to a close after that last intervention.

The issue before us is one of justice and fairness. Everyone believes in ensuring that the policyholders receive proper compensation for the injustice that they have suffered. These are people who did the right thing: they invested for their future. They expected a reasonable return on their investment and to be protected by the regulator and the Treasury. The fact is that they were badly let down.

This is the opportunity for all three major political parties and the smaller parties to give a commitment on what they would do if they were elected as the Government on 7 May for the 945,000 people out there who are still waiting for 77.6% of the compensation that they are due and for the trapped pre-1992 annuitants who deserve full compensation, which at £115 million would be a drop in the ocean, and who are the frailest in our society. If parties give them that commitment, they will give them their votes; if parties deny them that commitment, they may withdraw their votes.

[Several hon. Members]

rose—

--- Later in debate ---

[Bob Blackman]

I congratulate the 12 Back-Bench Members from across the House who made speeches in the debate and the huge number who intervened. The will of the House is quite clear: this is a debt of honour, and it is no fault of the individual savers whose life savings have been either lost or severely depleted. We have heard many examples from Members. I could produce a mailbag full of examples of individuals from across the country who invested for their retirement but are now unable to supplement their income, through no fault of their own. They did the right thing by saving for their retirement, but through regulatory failure, a failure by Equitable Life and a conspiracy with the then Government, their savings were taken away from them.

This is a debt of honour, so I must stress the point that we should honour it over the course of the next Parliament. I completely accept my hon. Friend the Minister’s point that the economy was in tatters in 2010 and that a series of difficult decisions had to be made. I congratulate the Government on coming forward with a large sum of public money to compensate those individuals who are due. However, a debt of £2.8 billion is still owed to those people who saved for their retirement. That should be funded over the course of the next Parliament.

However, given the remarks from the Minister and the shadow Minister, I fear that there are currently no plans to provide that compensation. That means the battle will go on. The fight will continue until such time as the Equitable Life policyholders receive the compensation they are due. Therefore, if it comes to it, we will press the motion to a vote.

Question put and agreed to.

Resolved,

That this House congratulates the Government on providing a scheme to compensate victims of the Equitable Life scandal; welcomes the Government’s acceptance of the Parliamentary Ombudsman’s findings in full; notes that the Parliamentary Ombudsman recommended that policyholders should be put back in the position they would have been in had maladministration not occurred; further notes that most victims have only received partial compensation compared to the confirmed losses; and calls on the Government to make a commitment to provide full compensation during the lifetime of the next Parliament as the economy and public finances continue to recover.

Tax Avoidance (HSBC)

Bob Blackman Excerpts

Monday 9th February 2015 Commons Chamber

[Mr Gauke]

We are still putting pressure on overseas territories and Crown dependencies, but all of them have signed up to the automatic exchange of information, which is a substantial breakthrough. I do not agree with the idea of putting all of them on a blacklist when France, Germany and the United States—indeed, 33 out of 34 OECD countries—have still not signed up to a public register. They are signed up, by and large, to a central register, but not yet to publishing it.

[Bob Blackman (Harrow East) (Con)]

Will my hon. Friend confirm that over the last four years, as a result of tighter regulation and the closing of loopholes, an additional £31 billion has been collected in taxes from large businesses, and that much of it can be used to fund public services or pay down the deficit? Will he confirm that none of that happened under Labour?

[Mr Gauke]

As my hon. Friend says, £31 billion has been raised from large businesses as a consequence of HMRC’s compliance activity. That underlines our determination, and HMRC’s determination, to collect the tax that is due under the law.

Oral Answers to Questions

Bob Blackman Excerpts

Tuesday 4th November 2014 Commons Chamber

[Priti Patel]

We have already made changes to that whole area, and that is something we will look at further.

[Bob Blackman (Harrow East) (Con)]

14. What estimate he has made of the rate of growth in the economy.

[The Chief Secretary to the Treasury (Danny Alexander)]

In the year to the third quarter of 2014, GDP grew by 3%; it is now 3.4% above the pre-crisis peak. The International Monetary Fund expects the UK economy to be the fastest growing in the G7 in 2014.

[Bob Blackman]

Clearly the fact that we are leading our European partners in economic growth shows that the long-term economic plan is working. Does my right hon. Friend agree that, with the eurozone in crisis and external factors uncertain, the last thing we want to do is return the keys to those who crashed the car in the first place?

[Danny Alexander]

I am sorry that my hon. Friend has brought up the shadow Chancellor’s recent driving incidents, but I agree with the point that the Labour party made the economic mess that we—Liberal Democrats and Conservatives—came together in a coalition to sort out. We have made strong progress in this Parliament, including achieving the strongest growth in the G7. The last thing that the country needs is to hand the keys back to a majority Labour Government.

Eid and Diwali (Public Holidays)

Bob Blackman Excerpts

Monday 21st July 2014 Westminster Hall

[Bob Blackman (Harrow East) (Con)]

I beg to move,

That this House has considered the e-petition relating to making Eid and Diwali public holidays.

Mr Bayley, it is an honour to serve under your chairmanship for the first time. Jai Shree Krishna, Salaam Alaikum, Namaste and Shalom!

This e-petition was not my idea and I cannot claim ownership of it. However, I will explain why I have agreed to be the Member who sponsors it and makes sure that it is debated in the Houses of Parliament. I am the MP for Harrow East, an area of enormous diversity of culture and religion—in fact, I would claim that it is the most diverse constituency anywhere in the country, containing people of all religions and from every country on the planet.

I celebrate all the religious festivals in a number of ways. I join my Hindu friends at all their various festivals, including Diwali—or, to use the term more appropriate for my constituency, Deepavali. I join my Muslim friends at Eid, my Jewish friends for Rash Hashanah and Hanukkah, and my Christian friends for Christmas, Easter and other celebrations. I join my Sikh friends for Vaisakhi and my Chinese friends for Chinese new year. I also celebrate many other occasions throughout the year with all kinds of groups within my constituency alone.

I myself am a committed Christian, but it is probably fair to say that I am a Chrinjew—a Christian with Jewish roots and a deeply embedded friendship with the Hindu religion. I believe that Harrow East is a beacon of everything that is positive about the enormous cultural diversity of London and the rest of this country. Being the MP for the area has given me a broad insight into the question of holiday observances. When this petition was forwarded to the Backbench Business Committee, I felt it was my duty to ensure that it received full and due attention in the House.

Given all the pressures on the parliamentary timetable in the run-up to the recess that is just about to start, it was important to bring this matter forward now, within the required timeline of three months. That is why the Backbench Business Committee has taken the unusual step of scheduling this debate in Westminster Hall on a Monday afternoon, when it is not normally open. If we had not scheduled the debate for today, the petition would have fallen and no debate would have taken place. If that had happened, we would have lost a great opportunity to debate this matter in Parliament and there would have been enormous dissatisfaction for the people who care about it passionately.

Consideration should be given to whether we, as a culturally diverse nation, should start public holidays for non-Christian religions. Such consideration raises all kinds of issues, which I will briefly touch on today. First, I will address some of the main objections to the idea straight away. The Government response to the e-petition was:

“Whilst we appreciate a new national holiday may benefit some communities and sectors, the cost to the economy remains considerable and any changes to the current arrangements would not take place without a full consultation.”

I do not disagree with having a consultation or with the need to ensure that there are benefits to a public holiday. Such concerns are valid. According to the Centre for Economics and Business Research, each public holiday costs £2.3 billion per day due to losses in retail, commercial, service and other industries. If that estimate is correct, we are looking at an overall economic cost of just less than £5 billion if the Muslim faith and the Hindu faith were to be given one specified public holiday each.

Further, the centre believes that annual output would be raised by £19 billion if all public and bank holidays were scrapped. Accountants RSM Tenon had an even higher estimate, reckoning that £30 billion would be recouped if we cancelled all public holidays. However, that is not likely to happen; I cannot believe that any Government would ever dare to cancel Christmas.

We cannot make a case for or against further public holidays just on the basis of money; if we did, we would not have any at all. Saying that is not to diminish the response of the Department for Business, Innovations and Skills to this petition, but to make the case that there are bigger considerations than just the cost.

[Toby Perkins (Chesterfield) (Lab)]

I thank the hon. Gentleman for securing this debate. He may be about to mention this, but will he clarify something? Is he saying that we need two extra public holidays or that he wants to reallocate existing bank holidays so that they come at the right time to recognise these festivals?

[Bob Blackman]

I thank the hon. Gentleman for his intervention. I will come to the issue of the number of public holidays and how they should be apportioned in a few minutes. If he allows me to develop my points a little further, all will become clearer.

Another contentious issue is the fact that both Eid and Diwali have unpredictable timings. They fall on different days every year, but so does Easter; Easter is not a fixed time in the calendar, but we schedule that without too much difficulty. It is also useful to consider that Eid and Diwali fall at times of the year that are currently devoid of public holidays. Eid al-Fitr, which marks the end of Ramadan, comes around the end of July, while Diwali comes towards the end of October or the start of November, depending on the phasing of the moon. Public holidays at those times would work well in giving workers an even spread of celebratory days off.

This e-petition attracted the signatures of 122,991 people, which I believe makes it the largest e-petition that has come to central Government since e-petitions began. That demonstrates that this issue is an important concern for a significant number of people in this country. Furthermore, it is probably worth mentioning that a responding e-petition, which called for the status quo to be maintained, has not even received 40 signatures yet. So the groundswell of opinion certainly appears to be in favour of this particular move.

Islam and Hinduism are the second and third largest religions in the UK respectively, after Christianity. Combined, they account for 6.8% of the population, with the trend of their growth increasing. The Muslim population is predicted to increase by 8.2% by 2030, due to a higher than average birth rate among Muslims and increased immigration from Muslim countries. In Manchester, one in 10 school days were missed due to religious occasions for Muslims, which raises concerns about educational attainment in that particular community. With young Muslim men currently twice as likely to be unemployed as other young men, according to the Office for National Statistics, this has to be of paramount concern; it is an issue not only in that community, but in the whole community.

In 2013, the average unemployment rate for young people in all minority ethnic groups, who are typically from these faith communities, jumped from 33% to 37%, according to the Department for Work and Pensions. Young people of faith should not be put in the position of having to choose between their religious festivals and their education; that is not good for them and it is not good for the country or the economy as a whole.

With regard to all Muslims and Hindus who are working and contributing to our economy, is there not an argument to be made about the validation that would come with a sense of recognition? Would it not be a statement that we, as a nation, embrace these religions and the people who hold them dear and are ready to recognise their place in our society? Creating these public holidays would be an important step towards promoting the understanding and tolerance of different faiths, not only at home but abroad. We want other nations to look to the UK for a good example of positive integration, and highly skilled prospective immigrants to consider coming to our country with the sense that their faith is a respected part of their identity.

That is particularly important for the Muslim community, who have been the target of all kinds of hate campaigns and abuse because of the sins of a very small minority of extremists. To give a snapshot of the problem, I should say that ChildLine reported that 1,400 people—an increase of 69% of students—claim that they have suffered racial and Islamophobic bullying.

Education is important, as is societal acceptance, and public holidays are not just for the few; they are a national event that everybody can take part in, regardless of whether they subscribe to a particular faith or to none. The argument has to be made that educating a wider section of the population in the traditions and holidays of different religions in such a widespread way would be valuable in helping to normalise the integration of those faiths into our cultural identity. It would be valuable in promoting cohesion and peace among the religions in our country, as it would not place preference for one over another.

I realise that this argument prompts a question: why only create public holidays for Hindu and Muslim festivals? Why not also add days for other religious groupings as well? At the last count, in the 2011 census, there were 2.6 million Muslims, 800,000 Hindus, 420,000 Sikhs and 260,000 Jews in this country. Although this petition focused on the former two groups, I do not see why it should not be expanded to include other popular major religions. Just because Judaism already has some festivals that coincide with the Christian holidays—for example, Passover and Hanukkah—does not mean the Jewish religion should not have its own public holiday for Rosh Hashanah or Yom Kippur. If we stay away from the cost issue for the moment and look at the ulterior social benefits involved, why not? Why not give each of these main faiths an honoured place in our calendar?

To acknowledge the intervention by the hon. Member for Chesterfield (Toby Perkins), I should say that it is a sad fact that the UK has fewer public holidays than everywhere else in the world, apart from Mexico and China. We have eight public holidays, including the two at Christmas and Easter, over four-day periods, which are tied to the Christian faith.

Looking at the national picture, the economic recovery that the Conservative-led coalition Government have secured, against all the odds, means that the UK is now set to overtake France to become the fifth largest economy in the world by 2022, according to the Centre for Economics and Business Research. I would say that whether that occurs is contingent on gaining a Conservative majority next year, but of course we are on the up and I trust that our coalition partners will continue to join us.

Looking at the economic league tables and comparing the number of public holidays that nations have, we should be able to come to some conclusions about how much public holidays affect our economic performance. The United States has 10 public holidays; Japan, the third largest economy in the world, has 15 national public holidays, with another one recently approved, giving it double the number that we get; Germany, in fourth place, gets nine; and France has 11. I will refrain from making the old joke that half of every day in France is a public holiday, but suffice it to say that our next door neighbours and competitors have more holidays than we do. It is hard to make the case for economic concerns based on those numbers.

Some schools of thought hold that the economy is actually boosted by allowing the work force to have time away from work, which can be in the way, to shop or enjoy sports activities or observe faith-related events. After all, a happy work force is a productive one, as the old adage goes. It is impossible to tell the economic benefit of or the economic damage done by a public holiday, as there are simply too many factors involved. However, no one can doubt that national morale is important and, like it or not, people of different faiths are very much a staple part of our work force and our national cultural identity.

Just as the Christians get to enjoy the traditions associated with Christmas—an early morning start to open presents, joining family and friends in celebration and the traditional feast—so should our second and third largest faith groups be able to do the same on one or two days of particular importance.

In the departmental response to this e-petition, it is also stated, as a matter of rejection, that the

“current pattern is well established and accepted”.

That is true. However, I would argue that traditions have to be made, not just maintained. We have had British Muslims and British Hindus for decades. It is not a case of creating a new tradition; it is a case of observing traditions that already exist here on a more widespread basis—of validating the cultural heritage of all sections of our society, not just the majority.

Let us not forget that people from minority backgrounds still find it a great deal more difficult to have any sort of visibility in public life. I recently instigated the all-party group on British Hindus in an attempt to give that community in particular a way to make their concerns better represented—in politics, at least. I have met Hindus from various parts of the world who have taken the creation of the group as a positive sign that the political establishment no longer intends to ignore their needs.

Being such a peaceful, hard-working, well established and therefore integrated community has in some ways worked against British Hindus, as they were allowed to feel invisible for far too long. However, the truth is that establishing an all-party group is only one small part of what needs to be a far greater effort to ensure that our minority faith communities gain that sense of belonging that the majority take for granted.

Hon. Members who are interested will have noted that an effort is already being made in both Downing street and Parliament, generally, to observe holidays such as Eid and Diwali properly. I expect that many colleagues in the House have attended these occasions and supported them. They are popular, lively, joyous events that I enjoy getting involved with each year. There is something to be said for everybody embracing the heritage of these cultures, even if for only one day a year, and it would be nothing but a positive step to have our observances replicated nationally. If the Prime Minister can take time out to celebrate these occasions and the communities they belong to every year, why should not the rest of us?

The extremely high number of signatures gained by this e-petition should not go unheard in Parliament and by Ministers, because it is not simply about having more public holidays—although more of those would certainly be welcome, regardless of what they are for; it is about the meaning behind them. It is about giving an overwhelming indication that our minority communities are not just on the fringes of our society any more, but are a part of who we are and what our nation will become in future.

To have an Eid public holiday and a Diwali public holiday, as a starting point, would send a simple, straightforward message that transcends any cultural or language barriers. It would be a mark of modernisation in this globalised world for Britain to recognise non-majority faith holidays so decisively. Indeed, it would be unprecedented. I am not suggesting a flurry of new holidays, so the Minister can sit happily for the moment. All religions have many different festivals and occasions that are marked through the year and, if we had a public holiday for all of them, no one would have time to work. I am merely suggesting a single day for each, so that every part of our community is celebrated and able to celebrate fully, without having to sacrifice time in education or work.

I should be grateful if the Minister provided a fuller analysis of the Department’s causes of objection to this e-petition and responded to my points on the many and varied positive aspects of introducing these holidays. Some 122,000 people deserve a better answer than a vague excuse regarding costs and established traditions. I look forward to the responses from the Opposition spokesman and the Minister on this important subject that I believe is without precedent.

--- Later in debate ---

[Bob Blackman]

I thank both the Minister and the Opposition spokesman for putting on the record their considered and thoughtful contributions to this debate. We should remember that this e-petition, signed by 122,000 people, has demonstrated that there is a demand out there in the community for us to consider this particular idea. Today is the starting point for that discussion, not the end of it. It is important that I commend the Government and the Opposition for all their attempts to break down religious barriers. I believe passionately that if religions open themselves up to participation by those in other religions, to enable understanding of what they do, we will break down the barriers of ignorance and encourage people to celebrate their religions in peace and harmony.

The key point about the e-petition is that if we were to grant public holidays for Eid and Diwali, as well as Rosh Hashanah and Yom Kippur for the Jewish community, that would enshrine the major religions of the world and recognise the important part they play in this country. There would also be a challenge—the hon. Member for Chesterfield asked whether Eid and Diwali would always fall on set days or during the week—but we are British and very good at resolving such problems for the benefit of the whole community. The British people’s traditional tolerance and ability to find practical ways of resolving issues would come to the fore.

The Minister raised the key issue of the work done by volunteers across communities. The Jewish community celebrates Mitzvah day, when everyone gives a day of service to the community free of charge, and the Hindu community does the same on Sewa day. Both should be applauded. The Minister also mentioned the Big Iftar, which is a tremendous boost for the whole economy. If we declared those to be public holidays in the UK, they would become a major tourist attraction, drawing people from across Europe and other parts of the world to celebrate those great religious experiences. They would bring great tourist trade to this country. Anyone who has been to a mosque or a temple on Eid or Diwali will know that they bring a tremendous number of people and families together. People would come from different parts of the world and we would attract more tourists—not just for one day but for many days either side of the great public holiday that would be created.

This e-petition, the largest we have had in Parliament, deserves a positive answer. As parliamentarians, we should consider it carefully, take it forward and develop it. Will the Government consider holding a consultation to see what benefits would accrue from enshrining those great religious days as public holidays in our calendar? There are difficulties, but we can overcome them if we come together as one big group.

This debate seems to have gone into overdrive in the Twittersphere this afternoon, with many people listening and observing. That shows that we have started a debate that the public think matters. That is all important, and we as parliamentarians are placing on the record views sympathetic to the concerns being raised. I thank hon. Members for the debate and the opportunity to put our views on the record, and I trust that this debate will be the beginning and not the end.

Question put and agreed to.

Oral Answers to Questions

Bob Blackman Excerpts

Tuesday 29th April 2014 Commons Chamber

[Mr Osborne]

We are introducing a cap on payday lending, and that will be an important—[Interruption.] The shadow Chancellor chuckles. He was the City Minister; he could have taken that decision at any point when he was—[Interruption.]. Why has it taken so long? Labour had 13 years to do these things—13 years when its team were running the Treasury. That is why people will not listen to what they have to say. The answer to the hon. Gentleman’s question is this: by supporting credit unions, capping payday lending and encouraging competition on the high street, we will help his constituents and many others.

[Bob Blackman (Harrow East) (Con)]

T8. As the economy continues to prosper and grow under the excellent stewardship of our Chancellor, will my right hon. Friend join me in congratulating the tube workers who turned up to work today to keep London moving, and in congratulating the workers who went to work this morning despite the antics of the RMT?

[Mr Osborne]

I join my hon. Friend in thanking those who went to work today on our tube system. The strike is totally irresponsible and unnecessary. It impacts on the economy and makes it difficult for people in London to get to work. [Interruption.] Well, perhaps the reason that so few Labour MPs are at Treasury questions is that they are manning the barricades with the RMT.

Oral Answers to Questions

Bob Blackman Excerpts

Tuesday 11th March 2014 Commons Chamber

[Danny Alexander]

In the Budget in which we reduced the 50p rate to 45p, we introduced measures that raised five times more from the wealthiest people, including, for example, the annual tax on enveloped dwellings, which is a mansion tax for tax dodgers in respect of people from overseas who own properties in this country. It raised five times more than we expected at the time.

[Bob Blackman (Harrow East) (Con)]

T5. I congratulate my right hon. Friend on the slow but steady progress on improving the economy. Does he agree that the most important thing now is to ensure that people have more money in their pockets to spend as they wish and that therefore the threshold for the 40% rate of tax needs to be increased so that middle earners can see the benefit of this Government?

Budget Resolutions and Economic Situation

Bob Blackman Excerpts

Thursday 21st March 2013 Commons Chamber

[Ed Balls]

I think the hon. Lady may find that that is before the millionaires’ tax cut kicks in in 14 days’ time.

The hon. Member for Bognor Regis and Littlehampton asked whether I am being serious. I am being deadly serious about the failure of this Government’s economic plan. They are failing on growth and on borrowing, and living standards are falling as families and businesses pay the price. I warned the Chancellor two and a half years ago that his plan could not work and that, given that a global hurricane was brewing, it was the wrong time to rip out the foundations of our own house. I told him that monetary policy in a situation akin to that of Japan in the 1990s or of the world in the 1930s could not do the trick to restore growth. I warned him that attempting to have the biggest tax rises and fastest spending cuts in our post-war history, and probably beyond, would backfire and choke off recovery rather than support it.

The Under-Secretary of State for Skills, the hon. Member for West Suffolk (Matthew Hancock) is the Chancellor’s former adviser and he is now a member of the Business Secretary’s ministerial team. He wrote an article in The Times in the autumn of 2010 in which he said—this is the Chancellor’s former adviser—that faster deficit reduction would lead to stronger growth. He said, as the Chancellor has also argued, that this was an example of expansionary fiscal contraction, but fiscal contraction has not been expansionary—it choked off the recovery. If the Chancellor was relying on advisers like the hon. Gentleman, it is no wonder that he got into such trouble.

[Bob Blackman (Harrow East) (Con)]

The shadow Chancellor has made great fun of tax changes and other issues relating to growth. Does he welcome the Government measure that means that next month 36,270 working people in his own constituency will get a tax cut?

[Ed Balls]

The hon. Gentleman needs to look at the figures and understand the impact on working families in his constituency. The problem with his Chancellor is that he gives with one hand and takes a lot more with the other. A one-earner family on £20,000 and with two children are worse off, even with the personal allowance, by £380 a year because of the cuts to tax credits. Working families are losing out. The Chancellor tried to divide the country into strivers versus shirkers, but we do not hear that any more because it turned out that his shirkers were the working people of this country.

The real tragedy for this Chancellor is that he is set to join a long line of past Chancellors. Philip Snowden, Norman Lamont and now George Osborne—

--- Later in debate ---

[Bob Blackman (Harrow East) (Con)]

It is a pleasure to follow the hon. Member for Birmingham, Selly Oak (Steve McCabe), who grudgingly accepted that there are good things in the Budget as well as things to condemn. A Budget is a snapshot in time that builds on previous Budgets. Good things have come out of previous Budgets and there are great things in this Budget.

One performance measure of an economy is the level of unemployment. In my constituency, in April 2005, the level of unemployment was 1,402. By the time the Labour Government left office in April 2010, it was 1,901. That is an increase of 36%, but then we all know that Labour Governments always leave office with higher unemployment than when they arrive. Now, however, unemployment is down to 1,632—a fall of 14% in three years—showing that despite the recession and the difficulties, the Government have got it right on encouraging and promoting employment.

Next month, 4,035 of my constituents will be taken out of tax completely by the Government’s increases in the personal allowance. More importantly, 40,101 working people in my constituency will get a tax reduction, which means they will have more money in their bank accounts to spend as they choose. One of the great measures is the new employment allowance, from which 145,000 businesses across London will gain. They will be able to employ people without having to pay national insurance contributions. Furthermore, 75,000 of those businesses will pay nothing at all for the people they recruit, which has got to be great news. Combined with the abolition of the fuel and beer duty escalators, that means that the Government have got it right on taxation.

I want to dedicate most of my speech to the treatment of Equitable Life policyholders. For 13 years, when Labour ran the country, it refused to do anything about the 1 million people who suffered as a result of this scandal. I am proud to belong to a party and a Government who have taken steps to assist the victims. In 2010, the coalition Government honoured our election pledges to compensate the victims of that fiasco. The claimants asserted that £5.2 billion-worth of compensation would be needed, if full compensation was to be paid. Clearly, given the economic position, we could not afford that, so £1.5 billion was set aside to ensure that the victims received due recompense.

The victims split into three groups. The first group comprised the 37,000 with-profit annuity policyholders, who have received full compensation for the losses that resulted from the scandal for which the then Government, the regulator and Equitable Life were responsible. The nearly 900,000 people who took out pension plans have also been compensated, but at a much lower level, because they had the alternative of transferring their pension plans elsewhere. Unfortunately, however, owing to how the scheme was implemented, the people who were most vulnerable and most desperately in need of assistance—those whose money was trapped in their pension plans because they took them out before 1 September 1992—received no compensation at all.

[Mr Love]

I congratulate the hon. Gentleman on his campaign. Will he be campaigning for further compensation for those who have not received anything thus far?

[Bob Blackman]

I shall come to that when I conclude my remarks.

Some 10,000 of the most vulnerable people received no compensation at all. The all-party group on justice for Equitable Life policyholders put forward clear evidence that they suffered as much as the people being compensated. We pointed out that they could not have known before 1 September 1992 that this scandal was going on, and that they had suffered and lost money like all the others. It has taken a long time and a lot of persuasion, and my hon. Friend the Economic Secretary to the Treasury listened with great patience, weighed the evidence and proposed to the Chancellor that the pre-1992 trapped annuitants receive compensation. I am delighted to congratulate the Chancellor and his team on listening to the evidence, weighing it up and saying, “Yes, we got it slightly wrong.” All the people I have mentioned will now get £5,000 in compensation automatically, as an ex gratia payment without taxation, while those on pension credit will get an additional £5,000. It is not the full compensation that we would like to see, but it is a recognition of the fact that every policyholder suffered as a result of the scandal and will be repaid.

Let me turn to the intervention by the hon. Member for Edmonton (Mr Love). The campaign continues. The policyholders have not received the full compensation that they are due or the compensation that has been promised—it is still being paid. My clarion call to my colleagues on the Front Bench is this. Let us ensure that they receive the money—particularly the trapped annuitants —as fast as possible, because since we started the campaign in 2010, 1,000 of the trapped annuitants have sadly died, and they are dying each day. We want to see people compensated and receiving their money as fast as possible, so that they can enjoy their retirement in a reasonable way. I say thank you to my colleagues on the Front Bench, but with this word of warning: we will carry on campaigning and ensuring that the compensation is paid as it should be.

Finally, I want to refer to housing. Currently, banks and financial institutions are demanding a 25% deposit before they will allow people to get a loan for a mortgage. In my constituency, prices start at £300,000 for a two-bedroom flat. A detached house can be up to £1 million or more. A reasonable three-bedroom property is of the order of £500,000. Imagine trying to find £125,000 as a deposit to buy a family home. It is almost impossible and beyond the reach of ordinary working people. I therefore welcome what the Government are doing to support them. We want to get the housing market moving, with new properties being built and existing properties passed on, so that the starter homes can be used by new people.

[Several hon. Members]

rose—

Oral Answers to Questions

Bob Blackman Excerpts

Tuesday 11th December 2012 Commons Chamber

[Mr Speaker]

Last but not least, Mr Bob Blackman.

[Bob Blackman (Harrow East) (Con)]

The Government moved swiftly to compensate the victims of the Equitable Life scandal, who were ignored by the Labour Government. The one set of people who were excluded from the legislation were the pre-1992 trapped annuitants. I know that the Minister has been considering this issue. Will he update the House on what consideration will be given to those weak and vulnerable people who just want some safety for the rest of their lives?

[Sajid Javid]

My hon. Friend has campaigned well on this issue and I recently met representatives of the Equitable Members Action Group to discuss it. The Government are focused on delivering the current scheme efficiently and effectively.