Tax Credits

Debate between Graham Allen and Huw Irranca-Davies

Thursday 29th October 2015 Commons Chamber

[Mr Graham Allen (Nottingham North) (Lab)]

This has been a strange debate. It is as if we have managed to collect in the Chamber all the sensible people from all the parties, and to have a serious debate on some of these issues. It is unnerving to step out of the comfort zone of yelling at each other, and instead to hear sensible contributions from across the House, including the speech by the hon. Member for Waveney (Peter Aldous) that we have just heard.

Perhaps the lesson for us all is that this is how we should have done it in the first place, before the Chancellor made his announcement. He could have set out broad principles, as he is entitled to do, and said: “We need to reduce the welfare budget because we made a commitment in our manifesto. We would like to consider these issues. We need to find £12 billion, so how might we best do that?” By using the wit of Members from across the Chamber—including those who are appointed to Select Committees and work incredibly hard on our behalf—I am sure we could have come up with something less painful, crude and crass, while also saving the Chancellor some grief. However, we did not do things that way; we are doing it the other way round, so let us hope that we can reach a sensible result by listening to Parliament.

I also hope that we will listen to people out there. This is a classic debate, and we must listen to those who will be impacted on and influenced by these changes. Often, those people are not necessarily very articulate or in touch with their Member of Parliament, but I want to speak up for them, particularly those in my constituency. Dinner ladies, check-out and administrative staff, nursing and teaching assistants and manual workers all need us—whatever our political persuasion—to stick up for them right now.

We should all be in it together, but it often feels that we are not. I looked for the number of people in my constituency who will benefit from changes to inheritance tax, and after a lot of searching I came up with a large zero. Unfortunately, it did not take long to find the number of people in my constituency who will not be benefiting from the changes to tax credit, because 12,300 children will be affected. That is important because I am the Member of Parliament for the second most deprived area in the United Kingdom in terms of child poverty in low-income families, which is a matter of great concern. We are not “all in it together”, because those kids are not in it with those whose families have higher incomes and should be shouldering a fair share— nothing more—of the tax burden in our country. Colleagues who know their food banks will unfortunately know that this measure is a food bank recruitment scheme on behalf of the Government, and we must be careful about how we tread forward with it.

No one was ready for this change. Some of us believed the Prime Minister when he was on television before the general election and said that there would be no changes to the tax credit system. It is the same Prime Minister who, sadly, was in this House a week ago and said he was “delighted” that the cuts had been voted through the previous evening. That indicates a contempt for institutions other than government—I know I labour this point, but listening to Parliament and to people outside does not mean that someone gets diverted from their principles; it means that they can better enable those principles by listening to those who might be able to help in a slightly better way.

These cuts will have a broader impact on families. Four out of five families in my constituency receive tax credits because of the low-income nature of my area—my constituency is among the 20 most deprived—and we can do a job for them. We will not necessarily overturn what the Chancellor thinks, but Members of the House can do what my right hon. Friend the Member for Birkenhead (Frank Field) has done and consider tapers, thresholds, transitions, and the time needed to allow people to adjust to a massive change in their life. We must look consistently at that family element, and review and analyse the impact of the changes in future years, so that we can mitigate the worst cases.

I am delighted that we have not heard the word “scroungers” in this debate, or heard people being described as having a free ride on the state or the system. As it happens, two-thirds of people in my constituency who are in receipt of tax credits are at work. They are being subsidised by the rest of us to be at work, and low-paying employers are being subsidised.

[Huw Irranca-Davies]

Perhaps one reason the debate has not been disfigured by such terms is that the people my hon. Friend is talking about are the friends, families and neighbours we stand alongside in supermarket queues and on the side of the rugby pitch on a Sunday morning. These are people we know. This is not a matter of “them and us”. They are us and that is why, as we stand alongside them at the rugby and in supermarkets, we must stand alongside them here, too. They need us.

[Mr Allen]

My hon. Friend is absolutely right.

We, and some of the media, think this is a big issue right now, but you would be amazed how many people do not know that this is going to hit them, and they will not know until that letter drops and it actually happens. A wise old bird—Joe Ashton, who used to be the MP for Bassetlaw—taught me this lesson: passing a Bill will not influence anybody’s real life until whenever—in this case, I believe, next April—it takes effect. Then there will be a shock. Then there will be a tidal wave of people saying, “My god, what are you doing to us? Why did you allow this to happen? We don’t care which way you voted, why are you allowing it to happen?” That is why between now and then we have to bend our backs to ensure that we mitigate the worst consequences.

The national living wage is a bit like English votes for English laws: it is such a smart slogan that one could perhaps run an election on it. Does the reality, however, have the substance and the detail that people need in their lives? Saying that we are going to have a national living wage sounds fantastic, but if it does not actually mean that incomes will be at least as good as they were before, it is a fraud.

Blacklisting

Debate between Graham Allen and Huw Irranca-Davies

Wednesday 16th October 2013 Westminster Hall

[Mr Allen]

My hon. Friend has been assiduous in investigating this issue, and I bow to his knowledge of it. He is absolutely right about Professor Ewing’s work.

Professor Ewing has written that there is no automatic compensation for being blacklisted and there are no criminal penalties for blacklisting. Protection from blacklisting applies only to trade union activities, which we might think is reasonable. However, given the way the law works, that protection does not apply to trade union-related activities—work that one out. That means the courts will decide whether unofficial action is caught.

On 30 October 2012, UCATT exposed the activities of two leading blacklisting firms—Sir Robert McAlpine and Skanska—while giving evidence to the Scottish Affairs Committee. Both companies were undertaking high-profile projects, including motorway construction and work at the Olympics, while they were blacklisting workers. Giving evidence, UCATT’s general secretary, Steve Murphy, revealed how, in the Consulting Association’s final year of operation, Skanska had paid more than £28,000 for blacklisting checks, while Sir Robert McAlpine had paid £26,000. Skanska admitted it was using the Consulting Association to vet workers and supplying information to the list, yet it escaped without penalty or sanction.

The steps taken in Wales show how we can do something on this issue. The Assembly and the First Minister have made great efforts to move it forward. New procurement guidance issued to all Welsh public bodies has outlined the steps that can be taken through procurement to help end blacklisting and encourage redress and compensation for victims. It makes it clear that companies proved to be involved in blacklisting can be excluded from bidding for contracts. It also sets out the steps companies need to take to avoid being excluded, such as offering proper redress for victims and introducing personnel and organisational measures to ensure that blacklisting no longer takes place.

[Huw Irranca-Davies]

My hon. Friend makes some very salient points. Does he accept, as many unions have said, that the argument that procurement contracts cannot take account of blacklisting activities is a fallacy? In fact, there is a risk of litigation should we choose not to take account of blacklisting and award contracts to companies involved in it. That is why I think the Welsh Government are showing the way forward.

[Mr Allen]

The Assembly in Wales is less dominated by the Executive than we are in this place, but, even so, we should draw comfort from the fact that legislators can make a difference and take these things forward. If Wales can set an example, I very much hope that England can follow suit.

I ask the Minister and her shadow to make it clear that there should be a positive right not to be blacklisted and that workers who find themselves on blacklists should have an automatic right to compensation, without the burden of proof being placed on them. The retroactive compensation scheme that has been mentioned should also be established to compensate blacklisted workers. Furthermore, protection should be extended clearly to include trade union-related activities, as well as just trade union activities. Above all, blacklisting should be a criminal offence, and companies that use blacklists should be open to persecution.

I will skip over the issues you warned us about, Sir Alan; perhaps we will come back to them on another occasion. Suffice it to say that the scheme the industry is creating involves only eight of the 44 major construction firms that have been implicated in blacklisting. That is not good enough, and I hope the Minister will take up the suggestion that all those who have been on a blacklist should be written to and that all those who have blacklisted others should be written to and clearly asked to join the scheme. I doubt this will be the last debate on blacklisting, but the day grows closer when those who have blacklisted others and those who have been on blacklists will get the justice they deserve.

Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill (Programme) (No. 2)

Debate between Graham Allen and Huw Irranca-Davies

Tuesday 8th October 2013 Commons Chamber

[Mr Graham Allen (Nottingham North) (Lab)]

I never thought that I would see the day when I would be on my hind legs opposing a programme motion, because I am one of the strongest advocates of programming that anyone could find. Back in the distant days when I was in the Government Whips Office, Mrs Ann Taylor—the then Chief Whip—and I, along with a number of colleagues¸ worked very hard with the then Opposition to agree on a process of effective timetabling. Effective timetabling benefits the House, benefits its Members, and, above all, benefits those on the Back Benches, although it is not always to the benefit of the Government. That was, at least, the theory about programme motions, and I supported it strongly.

The whole concept of a programme motion is that it is part of the process of the House, and part of respecting our democracy. It is not a mere ceremonial, or a nod in the right direction; it actually means that we end up with better law. It means that the House goes through the processes of Second Reading, Committee and Report before sending a Bill to the second Chamber, but does so in a comprehensive way so that we all end up with much better law.

If that process is corrupted—which is what has happened in respect of this Bill—it means that the House cannot, across the party divides, help a Government of whatever colour to make a Bill more effective. That is precisely what has happened in this instance, and it has happened because, although for a long period the progress of this policy issue was characterised by lethargy, in recent days it has been handled with hyper-speed in the House. It is not appropriate for us to discuss the reasons for that during a debate on a programme motion, but we will discuss them as we proceed through the Report stage.

It took my Committee—the Political and Constitutional Reform Committee—a long time to consider the Bill, or rather to consider a consultative document. We did our job carefully on behalf of the House before submitting our report to the Government, who took the best part of a year to respond. They responded only when they were forced to do so, because, as a result of their own timetable, they were trying to rush the progress of the Bill, which was then subjected to the hysterically fast progress that has meant that it has not been considered properly by the House. Given the time that has elapsed between the issuing of the consultative paper and now, it would have been perfectly possible for us to engage in a proper process of pre-legislative scrutiny involving my Select Committee, to give the Bill a proper Committee stage, and still to have bags of time left according to the timetable that we have now set ourselves.

That is why, for the first time in over 20 years in the House, I am on my feet saying that this is an abuse. Parliament has been disrespected; Parliament has been abused. The timetable that we are now being asked to meet constitutes the exact opposite of the lethargy that caused the Government to take over a year to reply to my Committee. One day before the House rose for the summer recess in July, we were presented with this Bill. It is not a Bill that my Committee had examined, it is not a Bill that the House had considered, it is not a Bill that was referred to the Electoral Commission, and it is not a Bill that was referred to third parties such as charities—10,500 of them. [Interruption.] The Leader of the House was probably busy chattering away at that point and not listening to them, just as he is not listening to me now.

There is a price to pay for not listening. I do not know whether the Leader of the House has learned that price, but, although he has had a couple of experiences, he does not seem to have learned it. The price of not consulting people, and of treating the House with disrespect, is that one of the very few weapons that we can deploy to protest against a programme motion comes into play.

Having appeared one day before we rose for the recess, the Bill was given its Second Reading one day after we returned. Three working days: is that a world record for this Parliament?

We are going to ask our friends and colleagues in the second Chamber to look at the way we have scrutinised the Bill under this programme motion, and they will say, “What’s wrong with these clowns? Can’t they take most of the key issues and debate them?” No, we cannot. A number of important, serious issues in the Bill will receive virtually no consideration. A number of key issues are before us today and tomorrow, but a lot of stuff will fall off the agenda. A lot of stuff has already fallen off the agenda, because Mr Speaker must choose what is debated and what is not; a lot of good stuff has already been filtered out.

We are not even going to present the dog’s breakfast of this Bill in a proper bowl for their lordships—it will not be in the silver platter that they deserve. They are going to say that we are not capable of doing our job. Is it just my Select Committee, an all-party Committee, that feels that way? Is it just that I happen to be a Select Committee Chair sitting on the Labour Benches? Is it a partisan thing? Let us look at some other people who feel that this is not the way to do business, who will be hurt by the Bill or who will be given roles under the Bill and who have not been consulted.

I hope that all Members, on both sides of the House, feel that the Electoral Commission is one of the most valuable and impartial parts of our democracy. We undermine it at our peril. It sorts out the nuts and bolts of our democracy so that we can glide across the top and have the policy and political debates that the country expects us to have. It does a great job. On one of the earlier occasions when we were considering the Bill, I mentioned that it is very difficult to get the Electoral Commission to commit one way or another on the politics of these proposals—believe me, Mr Deputy Speaker, we have tried. The Electoral Commission said, “We are going to stick to our role. We are here to be impartial. We do see some things that are not very appropriate.” However, if we read between the lines, we see that the Electoral Commission is profoundly uneasy about the role in which it is being cast by the Government. Part of the reason it is uneasy is that it was not even consulted at the right time, at an early enough moment, on measures that change its terms of reference and the job it has to do, let alone on becoming the police of freedom of speech and intervening in election meetings, at hustings or at some other point. It is being put in that role without being properly consulted.

[Huw Irranca-Davies (Ogmore) (Lab)]

I commend my hon. Friend for the work that he and his Committee have done on the matter. He is right to say that there is a lot of concern out there, not only in the Electoral Commission about the role that it has been given, but among small community groups, which feel that they will have to seek advice from an organisation that may not itself be clear on how to deal with the issue or be resourced sufficiently. I have never had as many requests in objection to a Bill from community groups as I have on this Bill. Those people want us to take our time and get this right. They feel that at the moment it is an utter dog’s breakfast.

[Mr Allen]

My hon. Friend is right. There are more than 10,500 charities and voluntary sector organisations. Many of them are big beasts and have been around a long time. Those organisations can look after themselves, summon a barrister, get a brief and argue their corner—eventually, having been let in to see the Government. Many of the big organisations came before the Select Committee, some distinguished members of which are here. However, as my hon. Friend says, many groups are minnows. One court case—no, not even a court case; one legal intervention could bankrupt many of them.

I will not get into the substance of the Bill; you would call me to order if I did so, Mr Deputy Speaker. However, the role of those charities and their trustees is to defend the organisation. They do that not by going to court after a dog’s breakfast has been passed by the House. They do it by listening to debates in the Chamber that have been given adequate time under a programme motion, so that my hon. Friend and others can stand up for those small organisations and say, “Parliament has given me enough time to say why this is wrong.” He is not alone; I suspect that 650 Members in the House have received representations from organisations large and small. I am not referring just to the mass campaigns and the big beasts. I am referring to people who are genuinely worried about the Bill. We must let those arguments be heard and they are not being heard.