Parliamentary Buildings (Restoration and Renewal) Bill

Debate between Helen Goodman and Andrea Leadsom

2nd reading: House of Commons & Money resolution: House of Commons & Programme motion: House of Commons
Tuesday 21st May 2019 Commons Chamber

[Andrea Leadsom]

My right hon. Friend is absolutely right. We have taken enormous steps, at great expense, to try to put in place some temporary fire doors to protect this place. But of course he will also know that the way we keep our fire safety licence is by 24/7 patrols of people going around the Palace making sure that fires are not breaking out.

As I say, there have been 66 fire incidents in the Palace since 2008, and over the decades—

[Helen Goodman (Bishop Auckland) (Lab)]

The Leader of the House mentions the issue of great expense. I know that this Bill is about the mechanisms and not the plans, but I am concerned that in building a temporary Chamber, we are building a white elephant without any purpose beyond 10 years. Will she look at alternative building techniques like those used in the 1950s and those used for the Olympics in 2012 for buildings that are built not for a 50-year life but for a shorter life, which would be much less expensive to the taxpayer?

[Andrea Leadsom]

I appreciate the hon. Lady’s contribution. She will understand that the House of Commons Commission looked very carefully at the options for a temporary decant, which could mean eight or even 10 years out of this place. She will also understand that, from a security point of view and from the cost-effectiveness point of view, the House of Commons Commission looked at the best combination of both those things. Temporary structures that are not possible to secure, and structures that are by their nature temporary and provide no legacy value, were also looked at carefully, but the decision that was taken to move to Richmond House provides permanent legacy value as well as the cheapest—or at least equally cheap—cost to the taxpayer.

Business of the House

Debate between Helen Goodman and Andrea Leadsom

Monday 8th April 2019 Commons Chamber

[Andrea Leadsom]

My right hon. Friend is exactly right that if passed the Bill would place a severe constraint on the Government’s ability to negotiate an extension and reflect the new date in the UK statute book before 12 April. The Government do not accept that the Bill is necessary and deeply regret that the House has taken it upon itself to introduce a Bill that has not had the proper preparation, scrutiny or drafting. It is of grave regret to the Government; none the less, the Government will abide by the law at all times.

[Helen Goodman (Bishop Auckland) (Lab)]

Just to clarify precisely what the position of the Leader of the House is, is she saying that the Government do not intend to disagree with the amendment that was put forward in the other place by the former Lord Chief Justice?

[Andrea Leadsom]

The hon. Lady will have to forgive me: I am not sure which amendment she is referring to and therefore, I cannot answer that question on behalf of the Government at this moment.

Business of the House

Debate between Helen Goodman and Andrea Leadsom

Thursday 21st March 2019 Commons Chamber

[Andrea Leadsom]

My hon. Friend raises an important point about the issue of the last bank in town and access to financial services, which has come up in the Chamber many times, and he is quite right to raise it. Obviously, we recognise that the way people access financial services is changing, with more people going online and so on, but the industry’s access to banking standard requires banks to carry out a number of steps before they close any branches. Some are coming forward with innovative ways to deliver ongoing banking services, and of course the Post Office now delivers access to banking services, very often at more flexible times—for example, at weekends and so on—than a bank was previously able to offer. My hon. Friend raises an important point, and I encourage him to seek an Adjournment debate to talk about the issues in Cleethorpes.

[Helen Goodman (Bishop Auckland) (Lab)]

The Leader of the House has said that we should seek a cross-party consensus on the way forward, and I agree with her, which is why I wonder what thought she has given, in respect of her role, to the House voting on options in parallel, so that we can end the game-playing and move forward.

[Andrea Leadsom]

I completely understand the hon. Lady’s desire for many more varied options to be brought forward, and I hugely respect the hon. Lady and her views, but the House has already rejected a second referendum, a customs union, the meaningful vote and leaving without a deal. It is vital that the House comes forward with a proposal that it can support. What the House did support was an extension to article 50, and the Prime Minister is acting on that request and seeking to fulfil the will of the House. I am sure that if hon. Members feel there is a majority for another type of solution, they will come forward with those proposals.

Business of the House

Debate between Helen Goodman and Andrea Leadsom

Tuesday 12th March 2019 Commons Chamber

[Helen Goodman (Bishop Auckland) (Lab)]

Surely if the House votes against no deal tomorrow and for an extension, the simple and straightforward way for the Government to facilitate this under the EU (Withdrawal) Act is to bring forward a statutory instrument, which is something that they could do in 24 hours.

[Andrea Leadsom]

As my right hon. Friend the Prime Minister said, I think, two weeks ago now, if the House votes for an extension, she will seek to agree that extension approved by the House with the EU and will bring forward the necessary legislation to change the exit date commensurate with that extension. But as she also said this evening, it is not within her gift, or within this Government’s gift, to insist on an extension. That will be a matter for agreement with the European Union and potentially subject to conditions imposed by it, but it would come back to this House, finally, to Parliament, and would need to be approved by Parliament.

Business of the House

Debate between Helen Goodman and Andrea Leadsom

Thursday 7th February 2019 Commons Chamber

[Andrea Leadsom]

The hon. Lady will be aware that the Government have sought to improve the incomes of pensioners and those on fixed lower incomes. She will also be aware that questions to the Secretary of State for Work and Pensions will take place on Monday 11 February, and I suggest that she raises her point then.

[Helen Goodman (Bishop Auckland) (Lab)]

Yesterday, the Under-Secretary of State for Exiting the European Union, the hon. Member for Daventry (Chris Heaton-Harris), was unable to tell the Procedure Committee whether we would scrutinise 50 or 100 affirmative procedure statutory instruments. The front page of the Financial Times says that businesses are up in arms because the Government have failed to get the trade treaties through. And where is the Agriculture Bill? Its Committee stage ended before Christmas, and massive uncertainty is being created for farmers.

[Andrea Leadsom]

As I explained to the hon. Member for Perth and North Perthshire (Pete Wishart), we have laid more than 400 of the up to 600 statutory instruments that need to be delivered by 29 March, and we are confident that all of them will be completed by Brexit day.

The hon. Lady also asked about Brexit primary legislation. All the Bills that need Royal Assent by the date of our leaving the EU will achieve it, and the Bills that do not will achieve it within the timescales that are required for them. All those Bills continue their passage through both Houses, and I remain confident that we shall have passed all the necessary legislation by the date of leaving the EU.

Business of the House

Debate between Helen Goodman and Andrea Leadsom

Thursday 20th December 2018 Commons Chamber

[Andrea Leadsom]

I think my hon. Friend will find a lot of support for that from around the Chamber. In my constituency we have enormous problems with HGVs getting stuck together when they are trying to pass on a narrow country road. She will be aware that we have Transport questions in our first week back, on 10 January, and I encourage her to raise the issue directly with Ministers then.

[Helen Goodman (Bishop Auckland) (Lab)]

This morning on Radio 4, speaking about the prospect of a managed no deal, the Leader of the House used the words “in the event votes don’t take place”. Why?

[Andrea Leadsom]

What I meant was, in the event that such a vote was not passed by the House. Just to be clear, the vote will take place, as my right hon. Friend the Prime Minister said, in the week commencing 14 January.

Business of the House

Debate between Helen Goodman and Andrea Leadsom

Monday 10th December 2018 Commons Chamber

[Andrea Leadsom]

The hon. Gentleman knows that that is a bit of parliamentary pantomime. He knows full well that the Government often name tomorrow as the next date for deferring an Order of the Day. So after a First Reading, when naming a date for the Second Reading debate if it is not “Now” then it is “Tomorrow,” and then the Government decide. There is nothing unusual about that at all.

[Helen Goodman (Bishop Auckland) (Lab)]

The Leader of the House knows that:

“Tomorrow, and tomorrow, and tomorrow

Creeps in this petty pace from day to day.”

Will it also be:

“To the last syllable of recorded time”?

[Andrea Leadsom]

As I have said to a number of hon. Members, we will bring the meaningful vote back to this House. There will be a further business motion that will be amendable, as soon as the Prime Minister has been able to seek the reassurances that will enable this House to support a motion that will be in the national interest. That is in the best interests of the whole United Kingdom, and it is vital that we get it right.

Business of the House

Debate between Helen Goodman and Andrea Leadsom

Thursday 22nd November 2018 Commons Chamber

[Andrea Leadsom]

I think the whole House will want to congratulate that group of young people on an amazing achievement. It is superb to see what communities and volunteers can do when they really set their minds to it. I encourage the hon. Gentleman to seek a Westminster Hall debate, so that Members can share the experiences of their young people and how they have really made a difference around the world.

[Helen Goodman (Bishop Auckland) (Lab)]

So far the Leader of the House has been somewhat vague and opaque in her remarks about the Procedure Committee report. The key recommendation was that the amendments should be debated and voted on before the main motion. Can she assure the House now that she and the new Brexit Secretary will table a business motion setting out a process enabling amendments to be debated and voted on first?

[Andrea Leadsom]

As I have said in response to a number of questions on the Procedure Committee’s report, I have seen it and I have looked at it very carefully. The Government are considering its recommendations. It will be for Parliament to decide—to debate and determine the procedure that will apply to the vote, including the number of amendments that can be voted on. But as the Procedure Committee report sets out, amendments threaten an orderly ratification, and that risks creating huge uncertainty for business, consumers and citizens.

Proxy Voting

Debate between Helen Goodman and Andrea Leadsom

Wednesday 18th July 2018 Commons Chamber

[Andrea Leadsom]

My hon. Friend is quite right. The Procedure Committee report proposed that hon. Members taking baby leave should be able to choose between proxy voting and a pair, even from vote to vote, so the complexity would obviously increase; nevertheless it is important that we have choice and flexibility.

[Helen Goodman (Bishop Auckland) (Lab)]

The Chair of the Procedure Committee will attest to the fact that I have been a proxy voting sceptic—until yesterday. Does the Leader of the House agree that the right hon. Member for Great Yarmouth (Brandon Lewis) has done for proxy voting what the hon. Member for Christchurch (Sir Christopher Chope) did for the private Members’ Bills process?

[Andrea Leadsom]

The hon. Lady is being extremely unfair to my right hon. Friend the Member for Great Yarmouth. It is absolutely clear that he was unaware that he was breaking a pair. It was an administrative error.

Business of the House

Debate between Helen Goodman and Andrea Leadsom

Thursday 3rd May 2018 Commons Chamber

[Helen Goodman (Bishop Auckland) (Lab)]

Last Saturday, I met a group of constituents who have bought homes on a new estate. They are now being charged huge and spiralling maintenance fees by a firm called Gateway, which was founded by the developer Persimmon. I understand this is happening on thousands of new estates across the country, so may we have a debate in Government time on what we can do about it?

[Andrea Leadsom]

The hon. Lady raises an issue that affects many, and I am also aware of the problem of these fees being charged completely unfairly. The Government are looking closely at this, but she might wish to seek an Adjournment debate to ensure the matter has the urgent focus it deserves.

Business of the House

Debate between Helen Goodman and Andrea Leadsom

Thursday 1st February 2018 Commons Chamber

[Andrea Leadsom]

Thank you, Mr Speaker. I encourage my hon. Friend the Member for Bridgwater and West Somerset (Mr Liddell-Grainger) to take the matter up with the Housing, Communities and Local Government Ministers.

[Helen Goodman (Bishop Auckland) (Lab)]

My constituent “S” was trafficked to the UK as a child and forced to work in a cannabis factory, but the Home Office wants to send him back to Vietnam. May we please have a debate on the interaction between the protection of victims of modern slavery, and the asylum and immigration system?

Business of the House

Debate between Helen Goodman and Andrea Leadsom

Thursday 14th September 2017 Commons Chamber

[Andrea Leadsom]

The hon. Lady raises a point that I am sure all Members will be delighted by, which is the extraordinary rate at which the cost of offshore wind has come down. As an ex-Energy Minister, I remember having whole stakeholder meetings with offshore wind developers urging them to compete more for the contracts for difference paid for by bill payers, so that we could get these costs down as quickly as possible. We should be very proud in the United Kingdom that we have led the world in the development of this technology. We are the third best country in the world, according to the independent Climate Action Network, for tackling climate change. We have outperformed our closest EU counterparts, with the largest cut in greenhouse gas emissions since 1990. There is more to do, but we are absolutely committed to doing it. If the hon. Lady wanted to generate a debate in this Chamber, I am sure that many Members would be delighted to take part in it.

[Helen Goodman (Bishop Auckland) (Lab)]

The weakness of the House’s scrutiny of delegated legislation was illustrated yesterday afternoon by the fact that the House passed a motion calling for the regulations on tuition fees not to go forward that the Government propose to ignore. The Leader of the House knows that amendments have been tabled by Members in all parts of the House looking for changes to the European Union (Withdrawal) Bill, but amendments to the Bill alone will not solve the problem. We may need a new Select Committee, changes to Standing Orders and extra resources, and we will need to consider these in parallel with the Committee stage of the Bill. Will she commit today to bringing forward proposals and making time to do that in parallel with the Committee stage of the Bill?

[Andrea Leadsom]

The hon. Lady is conflating two separate issues. Let me be very clear with her on yesterday’s debate that she says, had the Opposition won, would have revoked the tuition fees rise. The 40-day annulment period is set out in the Statutory Instruments Act 1946, not in Standing Orders, so it is an entirely separate point. [Interruption.] Yes, it is an entirely separate point.

On the hon. Lady’s question about scrutinising secondary legislation under Brexit legislation during the course of this Parliament, Ministers are listening very carefully. As my right hon. Friend the Justice Secretary said on Monday night in response to questions from this House, we are looking very carefully at what more can be done to reassure Members that secondary legislation that has a more significant impact than merely to change little bits of wording here and there can be properly scrutinised by all Members. We are looking very carefully at what we can do.

Business of the House

Debate between Helen Goodman and Andrea Leadsom

Thursday 6th July 2017 Commons Chamber

[Helen Goodman (Bishop Auckland) (Lab)]

Name names.

[Andrea Leadsom]

The hon. Lady shouts from a sedentary position, “Name names”. My concern, and that expressed by many Members across the House, has in fact been that Members who have lost their seats, particularly this time around, have in some cases genuinely struggled. The Leader of the House role comes with an ability to feed into the policies for Members’ pay and expenses. The hon. Gentleman raises an important point, but I think he will find that Members from across the House are in fact concerned that Members who lose their seats are not being fairly treated—that is quite the opposite of the point he is raising.

Oral Answers to Questions

Debate between Helen Goodman and Andrea Leadsom

Thursday 19th January 2017 Commons Chamber

[Helen Goodman (Bishop Auckland) (Lab)]

3. What assessment she has made of the potential effect on hill farmers of the UK leaving the common agricultural policy.

[The Secretary of State for Environment, Food and Rural Affairs (Andrea Leadsom)]

Happy birthday, Mr Speaker.

Hill farmers play a critical role not just in producing high-quality food, but in delivering environmental benefits for all the public in our beautiful landscapes. Leaving the EU gives us a great opportunity to look again at their contribution to delivering our very clear twin ambitions to have both a world-leading food and farming industry and, at the same time, a better environment for future generations.

[Helen Goodman]

I am grateful for that response from the Secretary of State. Of course, paying for environmental goods will only work as a strategy if the hill farms are financially viable. She knows that some of them are earning £14,000 a year, so income support mechanisms will still be necessary. Can she guarantee that in future trade negotiations she will not allow a flood of cheap New Zealand lamb that will put them out of business?

Oral Answers to Questions

Debate between Helen Goodman and Andrea Leadsom

Thursday 24th November 2016 Commons Chamber

[Andrea Leadsom]

I am meeting a Welsh Minister just today to discuss that very subject, and my colleagues have met a number of Welsh Ministers in recent weeks. At official level there are constant discussions, we have had informal stakeholder meetings and, as we have pointed out, formal consultations will be taking place, starting in the near future.

[Helen Goodman (Bishop Auckland) (Lab)]

T7. We have already had an exchange about the importance and inadequacy of broadband in rural areas. Are Ministers aware that Her Majesty’s Revenue and Customs has a crazy plan to make all businesses with a turnover of more than £10,000 submit tax returns four times a year, online—[Interruption.] This will be impossible for my hill farmers in Teesdale. Will Ministers make representations to Treasury Ministers to stop this crazy idea?

Oral Answers to Questions

Debate between Helen Goodman and Andrea Leadsom

Thursday 19th November 2015 Commons Chamber

[Andrea Leadsom]

My hon. Friend is exactly right. We need an energy mix, which is exactly what we are achieving and what my right hon. Friend the Secretary of State set out in her speech yesterday. I was delighted to visit Hinkley Point last week and see the enormous pride and excitement in the area about the prospective jobs and work in the supply chain and the huge investment in the area. It is really good news for the UK and our energy security.

[Helen Goodman (Bishop Auckland) (Lab)]

Will the Minister remind the House how much the Government are spending on nuclear decommissioning and explain why it is the one sector to which market discipline does not seem to apply?

[Andrea Leadsom]

The hon. Lady will know that the UK has an enormous nuclear legacy dating back to the 1940s and ’50s. A huge amount of work is being done at Sellafield and other sites to dispose safely of that nuclear waste. As she will know, the budget is extremely large—in the region of £3 billion—but that money is being spent to deal safely with this very long legacy. I can assure her, however, that new nuclear creates far less waste. We are planning a geological disposal facility to make sure that future taxpayers have nothing like that legacy to deal with.

Oral Answers to Questions

Debate between Helen Goodman and Andrea Leadsom

Thursday 17th September 2015 Commons Chamber

[Andrea Leadsom]

The hon. Lady is completely wrong to say that we have not considered all aspects of the consultation on reducing subsidies. She will appreciate that, because it is a consultation, it is only as a result of that consultation—which, as I say, closes on 23 October—that we will be able to assess the impact properly and then to make a decision. As I have said a number of times, we are fully committed to the ongoing development and progress of this very important sector. All jobs in the sector are of course extremely important and we will be doing everything we can to ensure that it continues to grow.

[Helen Goodman (Bishop Auckland) (Lab)]

3. What assessment she has made of the potential effect of Government policy measures announced since May 2015 on carbon dioxide emissions.

Bankers’ Bonuses and the Banking Industry

Debate between Helen Goodman and Andrea Leadsom

Wednesday 25th February 2015 Commons Chamber

[Andrea Leadsom]

I am very grateful to my hon. Friend for raising that point. The Government are extremely proud that fines for misconduct go to good causes, unlike under the Labour party, when any fines for misconduct were passed straight back into the hands of the people who committed it. The LIBOR fines have gone to military charities and air ambulances, as he pointed out, and the fines for the appalling foreign exchange rigging will support the NHS and GP surgeries in particular.

[Helen Goodman (Bishop Auckland) (Lab)]

The hon. Lady is a well-informed Minister. Will she tell the House what she did in her years as a banker at BZW and Barclays and, latterly, as a head of corporate governance to lobby for tighter financial regulation?

[Andrea Leadsom]

I am very grateful to the hon. Lady for giving me the opportunity to say that for the last 10 years of my career at Invesco Perpetual, I was responsible for writing a quantitative bonus scheme that measured the performance of fund managers over three, five and 10 years according to the performance of the team, the business and the individual, which involved clawbacks, as appropriate. I started that work in 1999 and finished it in 2009, so I can say with confidence that I did my bit on remuneration.

What have the Government done that we are so proud of? First, we have brought down the quantum of bonuses. City bonuses are now a fifth of what they were under Labour. The banks that were bailed out by the taxpayer have been a key focus for the Government, so let me inform the House about what is happening with bonuses at RBS. We will ensure that the total bonus pool comes down again, both in total and per head. That will continue the reductions that made last year’s bonuses more than two-thirds lower than those in 2009. The bonus pool at the investment bank will come down too in total and per head. We are continuing to restrict cash bonuses to £2,000, and no executive director will receive a bonus.

Let me also tell the House what is happening at Lloyds. This week, we announced that we are getting back another half a billion pounds for taxpayers—money that they had to put in. We can do that because since the crisis Lloyds has gone from failure to being a strong, profitable bank that is helping to drive the UK recovery and is contributing £230 million a year through the bank levy. We will ensure that Lloyds sees its bonus pool reduce this year and we are continuing to restrict cash bonuses to £2,000.

Let us compare that with the Labour party, which presided over a system that paid Fred Goodwin a cash bonus of £2.9 million in 2007. It is now calling for a 10-year clawback on bonuses—once again asking us to clear up the mess that it left—and has spent its bank tax proposal 10 times over.

The Government have made the link between bonuses and performance crystal clear. Bankers should be in no doubt that their bonuses are at risk should misbehaviour occur. Under this Government, highly paid bankers and those who are liable for big decisions have their bonuses deferred over at least three years, and at least 60% must be deferred for senior managers. Bonuses are now clearly linked to the performance of banks, since 50% of any bonus must be paid in shares or similar instruments. Deferred bonuses can be subject to cancellation in the future. Since the start of this year, bonuses can be clawed back up to seven years after they are paid out when misconduct or serious performance issues come to light. Guaranteed bonuses, which were commonplace under the previous Government, are banned in all but the most exceptional circumstances.

We have taken the lead in ensuring that there is transparency in senior executives’ pay arrangements. We have ensured that all the top 15 banks have signed up to the strengthened code of practice, which is a notable improvement on the two that had signed up when Labour left office. Our reforms to company law mean that shareholders are guaranteed a binding vote on pay policy.

We are not stopping there. The Parliamentary Commission on Banking Standards, which was attended so ably by my hon. Friend the Member for Wyre Forest (Mark Garnier), made strong recommendations on bankers’ pay.

--- Later in debate ---

[Andrea Leadsom]

I agree with my hon. Friend in principle. We want to see the market working properly, shareholders taking the decisions on remuneration and businesses acting fairly in the interests of all their stakeholders. That is why we have been so determined to sort out transparency, fairness and the binding votes that boards have in regard to the actions of the banks.

Our desire to see a lack of political intervention is why we have opposed and continue to oppose the deeply flawed and politically motivated EU cap on bonuses. My right hon. Friend the Chancellor, the Governor of the Bank of England and the head of the Prudential Regulation Authority agree that it will not control bankers’ pay, but instead push up fixed pay, make it more difficult to claw back earnings when things go wrong, weaken financial stability and make it more likely that the taxpayer, rather than the banker, pays the cost of mistakes. We continue to believe that the cap is fundamentally flawed. Members will know that we have, however, withdrawn our legal challenge to the cap and are instead looking at how else we can build a system of pay in global banking that encourages responsibility, rather than undermines it.

[Helen Goodman]

Will the hon. Lady explain to the House and the country why it is wrong to cap bankers’ bonuses but right to cap nurses’ pay?

[Andrea Leadsom]

The point that we have made about the bankers bonus cap is that bankers will find other ways to remunerate themselves in fixed pay, rather than in variable pay. The hon. Lady smiles, but she perhaps fails to understand that the whole point of the regime we have put in place is to ensure that bankers are accountable. The way for them to be accountable is through variable pay, which is performance related, unlike fixed pay. The problem with the cap on bonuses is that it will put up fixed pay.

[Helen Goodman]

rose—

[Andrea Leadsom]

I will not take another intervention on that point because I have explained it twice and would like to move on.

The cap remains fundamentally flawed, so we are looking at other ways to ensure that there is accountability. We do, however, fear that fixed pay is going up and there is some evidence of that. Last November, the Chancellor wrote to the Governor of the Bank of England to ask him to encourage this work in his role as chairman of the Financial Stability Board. Such methods at a global level might include standards that ensure that non-bonus or fixed pay is also put at risk, maximising clawback or paying senior staff in performance-related bonds. Any such solution must be international in nature to be effective. That is why we are pushing the Financial Stability Board, which is uniquely well placed, to pursue these issues with urgency.

--- Later in debate ---

[Andrea Leadsom]

That is an important point. This Government have taken every step we can think of to ensure accountability, prevent future wrongdoing and improve standards in banking. We are always open to new suggestions, but it is our genuine belief that we have fundamentally changed the underlying systems that banks work with. I can certainly reassure my hon. Friend that when I speak to the chief executives of banks, as I do regularly, they assure me that they, too, take the matter extremely seriously and have put in place checks so that they can indentify wrongdoing and punish the offenders under their own steam, as hon. Members will have seen in the press today.

[Helen Goodman]

Will the Minister give way?

[Andrea Leadsom]

I will not give way again; I am just coming to the end of my speech, and I want to give other Members the chance to contribute.

Fourthly, in our efforts to rebuild this vital industry, we have put in place the regulatory reforms necessary to improve bankers’ conduct and make banks serve their clients better, whether they are small and medium-sized enterprises or members of the public. We have legislated for a new senior managers and certification regime, to strengthen the accountability of senior management and raise the standards of individual conduct. We also launched an enforcement review, which recommended improvements to how regulators make decisions relating to enforcement.

We have promoted choice and competition in the retail banking sector, putting it at the heart of our regulatory system. By making it easier for customers to switch banks we are incentivising banks to look after their customers better, and by opening the door for new and smaller banks to compete with the established names we are ensuring that the entire sector ups its game, not least in helping our small and medium-sized businesses grow and expand. That is good for the customer, good for the sector and good for the wider economy.

Reforming remuneration for bankers has been a major priority for this Government. We are sorting out the mess left by the Labour party. It is not a pleasant spectacle when you lend someone your car, and they crash it and then criticise you for not repairing it quickly enough. I totally reject the proposals for changes that the hon. Member for Kilmarnock and Loudoun made. This Government are doing the work needed to ensure that the UK’s financial services are fit for the 21st century and that we put the bad old days of banking behind us.

Home Affairs

Debate between Helen Goodman and Andrea Leadsom

Thursday 9th May 2013 Commons Chamber

[Andrea Leadsom]

I am grateful to the hon. Lady for that comment, because it highlights precisely my point. She is subliminally implying that this generates racism, and that has been the problem with the debate for the past decade. Particularly under her Government, anybody who wanted to talk about the problems of uncontrolled immigration was somehow racist. I have just said that immigration has been of huge benefit to this country—I hope she was listening to that—but at the same time fairness is vital to the interests of this country.

I will now address that fairness aspect, which is where I think the Bill is incredibly important. It should ensure that those who have paid into the system benefit more than those who have not. This is not just a problem that concerns Britain; it also concerns Germany. The Fresh Start project, of which I am a founding member, recently went to Berlin to talk to German politicians and businesses. They feel that immigration has benefited the German economy, but that the fact that people can migrate there for the sole purpose of claiming benefits is simply unfair and generates resentment.

Constituents have said to me at surgeries that it is totally unfair that they, having potentially paid into the Exchequer coffers for years, get so little back if they lose their job. The Fresh Start project has assessed what happens on the continent. Many countries, including Germany and the Nordic countries, have a far more Bismarckian system of benefits payments, which means that if someone who has paid into the system for years loses their job, they can, for a period, generate half of their previous income while they get themselves back on their feet. The system in the UK is very different.

If we are to address the resentment over access to benefits for migrants, and access to benefits for those who have paid in versus those who have not, we need to look seriously at reducing benefits for those who have never contributed either because they have never worked here or because they have recently migrated here. Those who have paid in, as well as school leavers who have not yet got a job but whose parents have paid in, should get a higher level of benefit. That would be fair. In dealing with the impact of immigration on voters’ quality of life, fairness is key.

[Helen Goodman]

The hon. Lady exaggerates her point about what she calls benefit tourism, but to say that she has got it out of perspective is not to say that there are not significant economic incentives for people to come to this country. Surely, immigration has more likely been fed by the fact that if someone comes here and works hard for, say, three years and saves up £3,000, they have enough to put down a deposit on a house in an eastern European country, but not here. The disparity in exchange rates means that the incentives are totally different.

[Andrea Leadsom]

I completely agree that the vast bulk of people who come to this country come here to work, but equally the hon. Lady must agree that more than 40,000 EU immigrants are claiming child benefit here for children who do not live in this country. If she wants to write that cheque herself, she can then claim that it is a trivial sum, but to my constituents, who are writing those cheques—they are the taxpayers—it is utterly unacceptable and unfair.

Finally, I would like to deal with an excellent Bill introduced in the last Queen’s Speech. The purpose of the Financial Services (Banking Reform) Bill is to address the institutional failure of the banking system. Recent scandals such as LIBOR rigging and swaps mis-selling have left voters utterly disgusted and contemptuous, not just of the culture of banking, but of the seeming immorality of those at the top. I know that the Government have made great efforts, as has my hon. Friend the Member for Chichester (Mr Tyrie) through the Banking Commission, to weed out the culprits and to put in place reforms that will minimise the chance of a repeat of this nightmare.

In my opinion, however, another reform is long overdue. We need to spark a revolution in bank competition to facilitate the widest range and type of new financial services entrants and to force the big oligopoly banks to reprioritise excellence in customer service. That revolution is bank account number portability, which would make it possible for us all to switch banks instantly, taking our bank account numbers with us, and would remove the need to fill out endless new forms and re-establish new standing orders and regular payment instructions.

Bank account portability would have four key advantages. First, it would lead to a revolution in competition and bring in new entrants. At the moment, 80% of small and medium-sized enterprises and personal current accounts are banked with the big four oligopoly banks, so new competition—new entrants—is essential. Secondly, it would spark a revolution in customer service and product innovation in the payments sector. Thirdly, it would impose a significant reduction in fraud resulting from systems failures due to the out-of-date legacy systems in the oligopoly banks. I ran an investment banks team during the ’90s when there was a massive merger of banks, broker dealers and funds managers. Each of the oligopoly banks has up to 20 legacy systems. It is unbelievable. The recent failures of RBS-NatWest systems to make even simple payments highlighted that these systems are held together with string and sellotape.

Fourthly, a means of resolution is terribly important in banking. If we have another financial crisis and bank failure, rather than people lining the streets to take out their money, we need a means of instantly transferring bank accounts from a failed bank to a survivor bank. Cyprus is a case in point. The British Government decided to underwrite customer deposits in London branches of Cyprus banks, but we had no means to move customer bank accounts elsewhere. Bank account number portability would solve the very significant issue of resolution.

I am delighted that the Financial Secretary to the Treasury is consulting on introducing a new payments regulator in a Government amendment to the Financial Services (Banking Reform) Bill. An independent regulator would deal with the big problems that the Payments Council and VocaLink—the two bodies governing and providing the infrastructure for payments—are governed by the oligopoly banks themselves. It is the most astonishing closed shop. However, I urge the Government to go further and require the new regulator to evaluate bank account number portability properly. Seven-day switching is just more string and sellotape on an already broken system.

This is a positive and optimistic Queen’s Speech, focusing on a small number of high priority Bills for this Government. I believe they will make strong improvements to the quality of life for our voters, which is what it is all about. However, I hope that Back Benchers such as myself will be able to contribute our ideas to making the legislative programme even stronger.