Barnett Formula

Jim Shannon Excerpts

Tuesday 16th December 2014 Westminster Hall

[Iain Stewart]

There certainly is that perception. Part of my motivation for securing the debate was to address such issues so that we can have a more informed debate on the fiscal relationship principally between Scotland and England. I am conscious that Members from Wales and Northern Ireland are in the Chamber as well. My comments will be principally about Scotland and England, but the arguments also apply to the rest of the United Kingdom. As I said, there is much ill-informed comment and misunderstanding about what the Barnett formula is and does and that is why I wanted to have this debate.

As well as being misunderstood, the Barnett formula is much maligned. Contradictory simultaneous comments are made that it both penalises Scotland and is too generous to Scotland, but both of those cannot be right. I am reminded of a comment that Lord Foulkes made when he was a Scotland Office Minister about a decade ago:

“If the SNP think that Barnett is too mean and the English Tories think that it is too generous, most sensible people would think that it is just about right”.

For many years, reform of the Barnett formula has been parked in the “too difficult” box.

[Jim Shannon (Strangford) (DUP)]

In Northern Ireland’s case the Barnett formula is just right. It recognises the need to keep the balance of wealth, because in Northern Ireland our wages are lower and the products we buy in shops are more expensive. At the same time, if the current talks work out—I hope that they do—and corporation tax is devolved to Northern Ireland, that could be a poisoned chalice. However, Northern Ireland has already been able to set its air passenger duty for long-haul flights with the permission of the British Government.

[Iain Stewart]

As I said earlier, the purpose of the debate is not to say whether Barnett is right or wrong or whether it needs to be changed or not; it is just to help inform a more considered debate about the issues.

Free Cash Withdrawals

Jim Shannon Excerpts

Monday 8th December 2014 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

We have similar problems in my constituency, where ATMs are not as available as they should be. I am sure that the Minister will be able to address the issue of how we can encourage banks and building societies to put in ATMs. Perhaps she can also consider raising the awareness of those who use credit cards for withdrawals and should be using debit cards instead. If some of these issues were addressed at this level, that would greatly assist in enabling people to get better access to cash withdrawals without charges.

[Charlotte Leslie]

I thank the hon. Gentleman for his intervention. He makes an absolutely superb point about financial education and information, which could perhaps empower people to kick up a bit more of a stink about the fact that they are having to pay £1.85 to access their own cash. Often people are just getting on with it—life is pretty tough and they do not want to complain and kick up a fuss. Those people should not be having to pay this money. We should empower them to say “No, this isn’t right and we shouldn’t have to put up with it”. I hope that the Minister will address these points.

A lot of words are said in this place, but we need more than words. It is encouraging that action can be taken when Members raise matters and sleeves are rolled up, but I never promise anything before it is done. However, I do promise my constituents—this might be a slight beacon of hope for other people across the country who cannot access free ATMs when they should be able to—that I will do everything I possibly can to end the scandal of lack of access to their own cash in Lockleaze. I have every faith that the Government will do everything they can as well.

[The Economic Secretary to the Treasury (Andrea Leadsom)]

I congratulate my hon. Friend the Member for Bristol North West (Charlotte Leslie) on securing this debate on an incredibly important matter. She has presented her case very eloquently.

I assure the House that this Government are committed to helping ensure the most vulnerable people in society have access to the banking services they need. That is why we took action to tackle payday loans, placing a duty on the Financial Conduct Authority to impose a cost cap. The Treasury, as widely reported, has been in discussions with the banks on improving the minimum standards for basic bank accounts. Only a few weeks ago, I hosted a round-table meeting with senior executives from the UK’s major banks. As part of that discussion, I set industry the challenge of coming up with new and innovative ways in which ATMs can be used to offer a wider range of banking services to consumers. I look forward to hearing back from the banks later this month. One of the most fundamental banking services—the subject that my hon. Friend has raised—is the ability of customers to be able to withdraw their own money conveniently, and free, at ATMs.

Forty-four years ago, the Enfield town branch of Barclays bank opened the first ever automated cash machine in the world—another first for the British retail banking industry. Since then, the ATM sector in the UK has been in a state of constant progress. The number of cash machines has grown from 36,000 in 2001 to over 67,000 this year, making cash far more accessible to customers. The number of free-to-use ATMs is at an all-time high, and over 97% of all ATM cash withdrawals by UK cardholders are made free of charge. Pay-to-use machines now account for only 3% of the total volume of transactions.

It is important to recognise that, in areas with greater need for free-to-use ATMs, LINK—the network that connects the UK’s ATM machines—provides subsidies to ATM providers to allow them to offer services under its financial inclusion programme. The LINK scheme is unique in Europe: it allows banks and building societies to give their customers access to cash from any ATM across the UK, no matter which bank they hold an account with. That gives customers universal access to their cash without the need to walk into a bank. Across much of the rest of Europe, pay-to-use machines are the norm and the cost of withdrawing cash is not transparent. By contrast, as I have said, the vast majority of machines in the UK are free to use, and those that are not must be very transparent with their pricing, as per LINK rules, so ATM customers typically get a good deal in the UK.

As my hon. Friend has pointed out, however, some cash machines do charge customers for the withdrawal of cash. These machines are typically operated by independent, non-bank providers, which install ATMs in areas with a low footfall and that tend to be in rural or less well-off communities where banks feel it is not commercially viable to operate a free-to-use machine. The fees they charge need to be completely transparent prior to the customer withdrawing cash, and ensuring that the service is commercially viable is the reason for independent ATM machines charging those fees. If independent ATMs could not charge, they might withdraw entirely from these sites, which would risk leaving the rural and more vulnerable communities with reduced access to cash.

I completely understand, however, the concerns of my hon. Friend and the hon. Member for Strangford (Jim Shannon) regarding pay-to-use machines in less well-off communities. I am well aware that it is precisely in those disadvantaged communities that people most need affordable cash machines nearby without having to take public transport several miles to use one. Many hon. Members have made compelling cases for areas in their own constituencies. The right hon. Member for Birkenhead (Mr Field) has made representations to me in the past.

I am pleased to inform hon. Members that a programme of work is under way to address exactly that issue. LINK has developed the financial inclusion programme, which sets up free-to-use ATM machines in areas where they are most needed. The programme provides subsidies of £1 million per annum to ATM operators to allow them to operate commercially viable free-to-use ATMs. The cost of this subsidy is shared out among LINK members. Through the programme, 1,400 target areas, mainly in rural and less well-off places, have access to an industry-subsidised ATM. In the remaining difficult locations, such as areas with low population or those with a lack of suitable installation sites, LINK has launched specific, individual projects to address that and reports regularly to the Government on progress.

[Jim Shannon]

ATMs could be set up in post offices, because there are lots of them. There have been some discussions about this issue with the banks in Northern Ireland. Has the Minister given any consideration to setting up ATMs in post offices, where they would be accessible for people in rural communities?

[Andrea Leadsom]

I am grateful to the hon. Gentleman for raising that very good point. In fact, precisely one of the challenges I gave to the banks during my recent round table with them was to look at what more they could do to put ATMs in easy to access sites such as post offices and supermarkets.

My hon. Friend the Member for Bristol North West is quite right to question the fairness of pay-to-use machines in less well-off areas. However, where customers feel that an area lacks a free-to-use ATM, LINK has made a commitment to assess that location for the suitability of establishing one. As the number of target sites reduces, LINK also has a programme of identifying new segments of consumers for whom there may be access issues. LINK is working with Age UK and Toynbee Hall on specific projects, such as the “Older old” and “Deprived inner-city housing estates” projects, which aim further to improve access to cash for those more vulnerable members of society.

My hon. Friend’s mentioned that Lockleaze in Bristol North West has just one pay-to-use cash machine for 10,000 people. I have looked into the case, and I agree that it is absolutely unacceptable. My officials have contacted LINK, and I am pleased to say that, as she pointed out, it has committed to bringing the area into the scope of its financial inclusion programme. LINK has offered to visit the area to understand any further issues that her constituents are facing in accessing cash and locating free-to-use ATMs in the area.

In conclusion, I believe that the ATM sector is currently working well for consumers. The number of pay-to-use machines is low—only 3% of transactions are made from those ATMs—and the availability of free-to-use machines continues to rise. LINK membership rules offer consumer protection, particularly with regard to transparency of fees. The industry is taking action. For communities that have a greater need for free-to-use machines, LINK is setting them up in many places, and it is looking at how it can help segments of society that currently have difficulties.

I again thank my hon. Friend for raising this important issue and for bringing it to the attention of the House. I assure her that the Government and I will stay closely involved in this issue.

Question put and agreed to.

The Economy

Jim Shannon Excerpts

Wednesday 26th November 2014 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to say a few words in this debate, which I thank the Opposition for initiating.

There are many good things to say about the economy and job creation, but as the motion points out, there remain issues with living standards and living costs, and despite the many job opportunities, which are good news, we need to see more money in people’s pockets. The Northern Ireland Assembly and the Department of Enterprise, Trade and Investment are responsible for the economy in Northern Ireland. We have seen growth in the agri-food, pharmaceutical and aerospace industries —in my constituency, Shorts Bombardier provides continual job opportunities—and in the software and medical device industries. The pharmaceuticals company T.G. Eakin, in Comber, has created more jobs in my constituency and has bought factories on the mainland as well.

In addition, the 2014 knowledge economic index has grown by 33% in the past three years, so there are lots of good things happening. However, we have not seen the money in people’s pockets, and that is what the motion is about. Although lots of progress has been made, certain things still need to be done. Here, I am thinking of Arlene Foster’s Department of Enterprise, Trade and Investment. Citibank has announced 600 new jobs in its Belfast office. PriceWaterhouseCoopers has announced 807 new jobs. Concentrix has announced 1,000 new jobs. Youth unemployment across the UK and in my constituency has continued to fall. These are all good points, and the Government deserve credit for what they have done.

Young graduates are gaining employment in places where they previously might not have. Indeed, that is happening just this week—the number of people claiming jobseeker’s allowance in my constituency fell by 260. It is all good news. However, that money is not getting to those on the minimum wage or restricted hours.

Child care is important to the performance of the economy. The motion before us refers to child care for working parents. It is an issue that affects every working parent, and one we must try to address.

We had a housing and building boom in Northern Ireland. It went extremely well at first, but when the crash came, we felt the pain dramatically. Things are returning to some normality, however, with job opportunities coming through, particularly in the construction industry, which has helped those who lost jobs over the years. At long last, the banks are starting to lend a wee bit of money again, and perhaps an indicator of an economy on the turn is the number of houses coming up for sale. We have competitive prices—the average house price in Northern Ireland is £141,000. Young people in my constituency can buy a house—a good three-bedroom house, too—for between £105,000 and £189,000. The opportunities are there, but people need job security and a decent wage. In most cases, families need two wages coming in.

When we fly, the aircraft seats on which we sit are often made by a firm in Kilkeel; and people driving within or around the outskirts of London are likely to be doing so on stone from Ballystockart and Carryduff, in my constituency. That is a fact. We have 100 international investors in Northern Ireland in the ICT sector. This is all good news, as are the creative industries that have highlighted Northern Ireland on the world stage over the last year.

What we need to see is more money going into people’s pockets to ensure that they have enough to live on and can gain higher living standards. We want people to be given the opportunity to work more hours, the minimum wage to go up, and greater confidence to be created in the economy. We welcome what has been done, but we want more to be done to help our young people.

UK Acorn Finance (Mortgages)

Jim Shannon Excerpts

Tuesday 11th November 2014 Westminster Hall

[Mr Llwyd]

Yes, they did, and I want to say a brief word about that towards the conclusion of my remarks. At least 44 cases were reported to the Avon and Somerset police, who unfortunately, took very little interest in what was going on—the chief executive of Avon and Somerset police is an ex-partner of Burges Salmon, by the way, so that is another interesting piece of information. Peter Williams was at one time a partner in Burges Salmon, as was John Smith, the chief executive of Avon and Somerset police, who was appointed in 2009. Avon and Somerset police describe themselves on their website as long-standing clients of Burges Salmon. That article also appears on Burges Salmon’s website.

All known complaints to the police and those handling this matter remain unanswered, and I have to ask why. Interestingly enough, they said that they could not find any criminal behaviour, but a detective constable, Niki White, of Avon and Somerset police came up to attend the repossession hearing in the Williamses’ case. Why exactly I do not know. On the one hand she was pretending to give some succour or comfort to the Williamses that the police were doing something, but on the other hand a letter from the manager of the financial investigation and economic crime section of the police to the solicitors acting on behalf of the perpetrators says:

“In your letter dated 16^th August 2013, you have questioned DC White’s attendance at Court on the 7^th August 2013. Her attendance on that day was to ensure that the Court understood the extent of the Police involvement and were not misled into believing that a criminal investigation was already underway.”

That was despite the police at the same time telling the right hon. Member for North Somerset (Dr Fox) that an investigation was under way and that it was an in-depth investigation. But interestingly, a couple of months after that letter, they say that

“we have been in discussion with other regulatory agencies. The purpose of this was to look at whether there are…other opportunities to address the situation or to influence regulation of this kind of activity in the future.”

They say that unfortunately they have not been able to progress it further. So they have concerns both on the criminal side, it seems to me, and, as the hon. Member for Kilmarnock and Loudoun (Cathy Jamieson) says, on the regulatory side, which I am sure we all share.

However, Avon and Somerset police have consistently blamed the Serious Fraud Office for not opening an investigation. That is ironic, because the police themselves have refused to open an investigation, although they have said to at least one Member of Parliament that they have done so. They have also tried to block Dyfed Powys police in Wales from investigating. I believe that something is amiss in Avon and Somerset police. As I have said, John Smith, the chief executive, is now writing to complainants and making decisions, but not mentioning the fact that he used to be a partner in one of the firms that is, or should be, in the firing line.

Let me say a word about Mr Desmond Phillips. Again, this touches on the important point that the hon. Lady made about regulation. In 1975, at the age of 22, Mr Phillips was made bankrupt. In 1976, he was convicted of theft at Shepton Mallet magistrates court. In 1987, his timber and haulage business collapsed, leaving creditors with a loss of £300,000. In 1991, Phillips’s company brokering endowment policies collapsed. Many customers were farmers. Insurance companies claimed that they were owed £300,000 on commissions that had been paid out on policies that failed to materialise or were subsequently cancelled.

In 1992, Phillips underwent his second bankruptcy, owing £170,000. That was discharged in the late 1990s. In 1994, the BBC Radio 4 programme “Face the Facts” was the first programme on Phillips. In 2008, there was a judgment against Phillips at the High Court in Manchester for £250,000 and costs. That was subsequently paid, I believe. In 2010, there was an individual voluntary agreement in respect of all his debts. In 2011, Acorn subsidiary UK Country Capital collapsed, owing £17.3 million to Barclays bank. On 16 April 2014, “Face the Facts” described him as “The Country Rogue”.

Two bankruptcies, one IVA and 14 county court judgments have been recorded against Mr Phillips and, believe it or not, a couple of years ago his licence to lend was renewed by the regulatory authority. That is quite incredible. I have documentation with me to show that Clive Maxwell, chief executive of the Office of Fair Trading, said that he was a fit and proper person to be lending money. I find that utterly incredible and I am sure that the Minister, in due course, will want to consider that aspect. In fact, Phillips’s licence was renewed in May 2012, so that was after most of the bad things that had happened and certainly after what had happened in the case of the Williamses.

I have said that I cannot understand why Avon and Somerset police have not researched this matter properly. I have myself dealt with the Serious Fraud Office and the Attorney-General and have met His Honour Judge Geoffrey Rivlin, the senior adviser to the fraud office. I was told by the fraud office that it deals only with very large frauds. In my instance, it is for £1.5 million, but if we multiply that by anything between 30 and 50 constituents or Members of Parliament, it is a massive fraud. No one can deny that.

I have said that there is a dossier of 44 cases that alleges similar conduct in them all. An especially incriminating document was prepared by Mr Levy, a barrister who specialises in this area. It is entitled “Appointments under flawed security”. He questions why Acorn has persistently used the LPA receiver Mr Burd. The only possible explanation is that Lloyds bank was comfortable with the methods used, because it was lending on to Acorn, as we know, and it was turning a blind eye to all that was happening, in breach of any fiduciary understanding that I have ever come across anyway.

In case anyone thinks that I am just a conspiracy theorist, the following Members of Parliament, to my certain knowledge—I am sure that there plenty of others—are also involved in trying to deal with the matter: my hon. Friend the Member for Carmarthen East and Dinefwr, the hon. Members for Vale of Clwyd (Chris Ruane), for Brecon and Radnorshire, for North Cornwall (Dan Rogerson), for Brigg and Goole (Andrew Percy), for North East Somerset (Jacob Rees-Mogg), for Pendle (Andrew Stephenson), for Penrith and The Border (Rory Stewart) and for Thirsk and Malton (Miss McIntosh), the right hon. Members for South East Cambridgeshire (Sir James Paice) and for Preseli Pembrokeshire (Stephen Crabb), the hon. Members for Caerphilly (Wayne David), for Wantage (Mr Vaizey), for Folkestone and Hythe (Damian Collins), for North Devon (Sir Nick Harvey) and for Selby and Ainsty (Nigel Adams), the right hon. Member for Bexhill and Battle (Gregory Barker) and the hon. Member for Somerton and Frome (Mr Heath). There is also a Member of the other place who is actively involved in trying to assist people whom he knows.

As I said, I have been in contact with Avon and Somerset police, North Wales police, the Attorney-General, the Serious Fraud Office, the regulators and His Honour Judge Geoffrey Rivlin, the chief adviser to the SFO. So far, very little has been achieved, and it is to my huge regret that that should be so.

The conclusion that I draw from this terribly unhappy affair is that even if the modus operandi of UK Acorn and the allied companies is not fraudulent—I believe that it is—they of course have been in flagrant breach of their fiduciary duties to the borrowers. What that means may be obvious, but I will explain it. There is a fiduciary duty on a lender to ensure that the borrower can sustain the payments under the mortgage; otherwise, it is a straightforward taking of his property. That is an obvious point, but in this case there have been instances in which there has been overvaluation of properties in order to make an advance that would not be sustainable on the business case. That is clear in virtually every case that I am aware of. I think there are elements that are criminal, and I hope that we will be able to shine a light on this behaviour, but even if I am wrong, there have been serious, repeated and consistent breaches of fiduciary duty.

I put to the Government the following points. I know that the Minister is in the Treasury, not the Home Office, but will she please pass some of this information on to her colleagues in the Home Office? I am sure that she will. I ask the Avon and Somerset police to come clean as to why they are not properly investigating or, alternatively, to say that they will now investigate thoroughly these very, very serious complaints. They are complaints that have ruined the lives of, to my knowledge, 44 or 45 families. I am sure that Members of Parliament will know of many other people who were affected, and there will be others who have not complained. There is even a woman who has completely lost her mind and is in prison as a direct result of the situation. I could name her, but I do not want to embarrass her. She is contact with me, and she is still in prison.

There are others who have lost absolutely everything. They have the shirt on their back, and that is about it. In the meantime, Desmond Phillips is still lending money recklessly and making huge amounts of money against the assets of innocent people whom he has duped. I would ask also that the Avon and Somerset police fully assist the Serious Fraud Office to undertake its work. I believe that we are talking about a massive fraud, in which the SFO, if it has any purpose at all, should be involved. I have been trying to persuade Sir David Green to get involved, and I do not know whether the problem is one of resource, or what it is. To my way of thinking, if we send the SFO one file that shows underhand behaviour, the SFO should consider it. We have sent 36 files to the SFO, all of which show similar, if not identical, MOs, which suggests to me that something is really amiss.

[Jim Shannon (Strangford) (DUP)]

I apologise for not being here at the start of the debate. I had some constituents to see and I could not get down in time. I know of a number of families who had difficulties financially and who were referred to UK Acorn Finance Ltd for help. The company took advantage of their circumstances. Does the right hon. Gentleman now feel that it is time for Government to regulate the company? The regulation of loan companies is in the news today, and that company must be regulated as well.

[Mr Llwyd]

Absolutely, and the hon. Member for Kilmarnock and Loudoun made that point earlier. The hon. Member for Strangford (Jim Shannon) made that point well, and I am sure that the Minister heard it. I did not know that the hon. Gentleman also had constituents who were affected, but the case is evidently familiar to even more Members than the large number whose names I read out. I am sure that the Minister will have listened carefully to what the hon. Gentleman had to say.

There is a need, in my view, immediately to withdraw Mr Phillips’s licence to work in the financial industry and, crucially, to consider whether the regulatory authorities have done their job well, or at all. There is an obvious rhetorical answer to that question. I would also like to see the investigation and urgent consideration of serious and deep breaches of fiduciary duty. I believe that we owe it to our constituents, many of whom have lost everything they had—their income, their livelihood, their homes, their heirlooms, their livestock and the roof above their heads. My constituents Mr and Mrs Williams believed, perhaps naively, that Phillips and UK Acorn Finance Ltd were on their side. They were clearly wrong, and they have paid an extremely heavy price. To deny them redress is wrong and, in my view, totally unacceptable.

Oral Answers to Questions

Jim Shannon Excerpts

Thursday 3rd July 2014 Commons Chamber

[Sajid Javid]

My hon. Friend makes a good point, and I agree with him. He may be interested to know that the Government will today lay the draft regulations for converting civil partnerships to marriage. The Government previously said that the cost of conversion would be calculated on a cost recovery basis, and that is correct. We had indicated about £100, but I am happy to say that, in almost all cases, the cost will be £45. It would be unfair to charge couples who were in civil partnerships before same sex marriage was available, so I am pleased to announce that my right hon. Friend the Home Secretary has agreed to waive the conversion fee for one year from 10 December.

[Jim Shannon (Strangford) (DUP)]

Tourism is important to my constituency of Strangford. It definitely brings jobs and opportunities, as promoted by the Northern Ireland Tourist Board. Will the Minister consider joint tourism promotions with the Northern Ireland Tourist Board so that we can benefit from tourism throughout the United Kingdom of Great Britain and Northern Ireland?

[Mrs Grant]

I will consider all good ideas and sensible suggestions to promote tourism in this country, and I am happy to have a chat with the hon. Gentleman. As he knows, VisitBritain and VisitEngland do a good job in promoting the regions and the nations.

Consumer Rights Bill

Jim Shannon Excerpts

Monday 16th June 2014 Commons Chamber

[Stella Creasy]

It is fascinating finally to come to the end of consideration of the Bill in this Chamber.

[Jim Shannon (Strangford) (DUP)]

On a point of order, Madam Deputy Speaker. I stand to be corrected, but I thought that those who wanted to speak on Third Reading did so before the shadow spokesperson. Am I wrong?

[Madam Deputy Speaker (Dame Dawn Primarolo)]

You are wrong, yes. The Minister opens Third Reading, and the Opposition Front Bencher responds; we then hear from other participants. If we have enough time, and it is relevant to do so, we then hear the wind-ups. Do not worry—I will not forget you.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

It is always a pleasure to follow the hon. Member for Congleton (Fiona Bruce), who is passionate about the subject she has just addressed. I hope the shadow Minister, the hon. Member for Walthamstow (Stella Creasy), will not be disappointed with my contribution. I want to put on record some important issues.

The Minister has outlined very well the issues that the Bill tries to address, but I and other Members still have concerns. I am particularly concerned about the issue of debt advice. There are many debt organisations in my constituency. Citizens Advice, Debt Advice NI and Christians Against Poverty are just three groups that give advice—they do not lend money—on the problems people face when they borrow money and build up debts that they are unable to pay.

The Consumer Rights Bill should be just that—legislation that protects consumers. Does the Bill do so entirely? Some of us feel that it might have done more, and we would be much more relaxed about it if it had done more.

The regulation of loan companies, which Members have referred to, is a very complex matter. We are all aware of the story about a lady who borrowed a couple of thousand pounds from a loan company, which developed into a six-figure sum over a number of transactions. She found herself in a very difficult position, and she then had her house repossessed. That may be an extreme example, but it illustrates our concerns.

I very much welcome the Government’s commitment on the territorial extent and application of the Bill. I want to comment on part 3, which does not extend the Sunday Trading Act 1994 to Scotland and Northern Ireland, for example. The decision in relation to that will clearly lie with the Northern Ireland Assembly. I must say that that is good news for the people of Northern Ireland who attend church, but have to work on Sundays or might potentially have to do so. Any decision will lie with the Assembly, which is good news.

I wholeheartedly concur with the concerns expressed by the hon. Member for Congleton about the controversial technological changes referred to in new clause 31 in relation to three-parent children. I am concerned that there was no opportunity to debate that on the Floor of the House, because I certainly wanted to speak about it, as did other hon. Members. I suggest that it seems very dangerous to go ahead with such a change, as has been indicated, without any consensus of support or a majority in its favour. I must put on the record that I am very concerned about the numbers of ladies who have such worries. Some 558 people responded by saying that they did not want the change. Thank you for giving me the opportunity to make that comment, Madam Deputy Speaker.

The Bill has addressed many of the issues about which we have concerns, such as the right to the repair or replacement of goods. I commend the hon. Member for Foyle (Mark Durkan) on the good work that he has done on the Bill. He fought very valiantly and got the changes that he had hoped for in relation to electrical goods. I am tremendously pleased to see in the Bill what he and many other hon. Members wanted it to include.

If the Minister cannot respond on this point tonight, perhaps she will come back to me at some time, but I do not yet see powers for people who take out holiday insurance and need consumer protection—for example, those who, having booked a flight, find that they have to cancel it, whether for health or whatever reason—but cannot get a reimbursement. I had hoped that the Bill might give those people more protection, but I am not sure that it yet does so.

I welcome many of the things in the Bill, as well as some of the things in it about which we are not entirely happy. None the less, I congratulate all hon. Members on their contributions to the Bill, and on their ability to bring to the Floor of the House provisions that can make a change.

Oral Answers to Questions

Jim Shannon Excerpts

Thursday 1st May 2014 Commons Chamber

[Sajid Javid]

I thank my hon. Friend for the question, and for the contribution his family made to the great war—as did, obviously, many other families, but especially, as he highlighted, people of ethnic minority backgrounds. He has made an important point, and I will certainly look at that.

[Jim Shannon (Strangford) (DUP)]

The Commonwealth contribution to the first world war was significant. In particular, one in 10 people who served came from undivided India. In Northern Ireland we have a very large Indian community. What discussions has the Minister had with the bodies responsible in Northern Ireland to ensure that the community’s significant contribution is commemorated?

[Sajid Javid]

The hon. Gentleman raises an important point. He will know that more than 70,000 soldiers from the Indian army made the ultimate sacrifice on behalf of Britain in the great war. With respect to Northern Ireland, I have not had any discussions so far in my new role, but I will certainly raise the matter at the earliest opportunity.

Finance (No. 2) Bill

Jim Shannon Excerpts

Wednesday 9th April 2014 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

In the past, both here and in Westminster Hall, I have spoken frequently about issues such as child poverty, food poverty, benefits for single parents, social exclusion and other social problems. On this occasion, I want to express my support, and that of my party, for the married couple’s transferable tax allowance. We gave a manifesto commitment to support it in our Parliament, and we are pleased to be able to support it today as well.

I respect the opinions of Labour Members, and I do not wish to be divisive. I want always to be respectful to Members whose opinions may differ from mine. However, I have a hard-held opinion about this particular issue. I want to help everyone, but I think it is time that married couples had an opportunity to see some benefit from legislative change. Those who support the recognition of marriage in the tax system have waited a long time for the Government to introduce this policy. I expected it to be introduced a long time ago, in view of the Prime Minister’s enthusiasm for what was a headline manifesto commitment, but I am very pleased that, at long last, it is being introduced now.

We have heard some excellent speeches from Members on both sides of the House. I particularly commend the way in which the hon. Members for East Worthing and Shoreham (Tim Loughton) and for Peterborough (Mr Jackson) set the scene. I recall a debate in the House about two years ago to which the hon. Member for Congleton (Fiona Bruce) and I contributed. That was one of my early introductions to the cut and thrust of politics here. Most of the Members surrounding me opposed what I was saying, but I held fast to my opinion, and I am very pleased to be able to express it again today.

Let me begin by highlighting some of the powerful public policy benefits of marriage. I shall then explain why I consider clause 11 to be an appropriate public policy response, albeit rather modest—I should have liked to see more.

[Alison Seabeck]

As always, the hon. Gentleman is talking a great deal of common sense. Marriage is indeed something to which most people aspire. Let us be honest: it is a great institution. However—I think he was starting to make this point just now—the Bill is neither one thing nor another. It does not really achieve what most Government Members want, and it certainly does not deal with the concerns of Opposition Members. I should welcome his views on that.

--- Later in debate ---

[Jim Shannon]

As ever, the hon. Lady has made a very sensible intervention.

It is not the financial aspect of the clause that will be the convincing factor for those who wish to proceed with it. Personally, I see it as a recognition of those who are in a marital relationship, which is why I support it. Marriage is unquestionably a source of great benefit to adults, to children and to our communities in general: as others have said, there are extensive research findings to demonstrate that. Given the shortage of time, I shall highlight just some of the benefits of marriage to adult health, on the basis of evidence and statistics.

As has already been said today, the health gain from marriage may be equal to the benefit of giving up smoking. Of special interest to me, given the challenges presented by our ageing population, is the fact that marriage significantly limits hospital use. Those living with a spouse are less likely than others to enter an institution after the age of 60, because that person will be able to look after them and help them. For children, growing up with married parents is associated with better physical health in adulthood and increased longevity. There is a direct link between family breakdown—particularly separation from a biological parent—and future offending. I have not made those things up: they are facts, based on information that we have received.

Some Members have argued that marriage in itself is irrelevant, and that all the positive associations with it are driven by other factors, principally income. I must say that I find that argument particularly unconvincing. When one set of couples have thoughtfully embraced the cost of making an exclusive, lifelong commitment before the world, “forsaking all others, so help me God”—a commitment that is sealed in law—and another have just decided to move in together and see how it goes, is it any wonder that the first set of couples are likely to be, on average, more stable? That is not a reflection on those who cohabit, but it is a reflection of the statistics showing the commitment that we all make in a marital relationship.

Moreover, as others have noted, the Millennium Cohort Study has blown out of the water the idea that it all boils down to money. According to the study, the poorest 20% of married couples are more stable than all but the richest 20% of cohabiting couples. Finance is clearly not the motivator. However, recognition of the marital relationship by the Government through the transferrable tax allowance strikes me as a constructive way forward.

On 25 July this year, the hon. Members for Darlington (Jenny Chapman)—who has now left the Chamber—and for Blaenau Gwent (Nick Smith) will enter the happy union of marriage here in the House of Commons. Let me take this opportunity to wish them well, as others have already. It is good to know that marriage is alive and well in the House.

My concern is not with trying to persuade people to marry, but the evidence suggests that people who want to marry are not doing so because it is not an accessible option. As the Secretary of State for Work and Pensions said in his marriage week speech in 2011,

“When asked about their aspirations, young people are very clear: three quarters of those under 35 who are currently in cohabiting relationships want to get married, and some 90% of young people aspire to marriage”.

Those are very clear statistics. The Secretary of State continued:

“So perhaps the question we should be asking ourselves is this: if people from the youngest age aspire to make such a commitment in their lives, what stops them doing so?

Government cannot and should not try to lecture people or push them on this matter, but it is quite legitimate to ensure people have the opportunity to achieve their aspirations.”

[Ian Swales]

The hon. Gentleman is making a powerful speech, and I think that we have a unanimous view about the importance of marriage. Does he feel that the Government are communicating the details of the policy clearly enough for the young people about whom he is talking to understand whether it affects them or not? Many of them—for example, couples earning the minimum wage—will not be affected by it.

[Jim Shannon]

I cannot comment on the technical figures—no doubt the Minister will say something about them when he sums up the debate—but I understand the point that the hon. Gentleman has made. The Government clearly have much to do. Indeed, we all have much to do in putting forward our views, but let us hope that those who have an opportunity to enter into a marital relationship will be able to benefit financially as well.

Although 90% of young people aspire to marry, marriage rates are at an all-time low, while cohabitation rates are rising. The reason why that matters can be expressed in many ways, but I shall do so by employing language that the Treasury understands. The cost of family breakdown has risen to some £44 billion per annum, and crucially, according to the Centre for Social Justice, of every £7 spent on family breakdown amongst young families, £1 is spent on divorce, £4 is spent on unmarried dual-registered parents who separate, and £2 is spent on sole registered parents.

In this context it is absolutely imperative that the state does not place any unnecessary obstacles in the way of those who wish to marry, yet that is exactly what we do on many occasions. Since 2000 we have had a tax system that is very much in the minority internationally, as the hon. Member for Peterborough said. Just over a fifth of people in the OECD area live in countries that do not recognise marriage or have some kind of couple allowance. The vast majority of those people live in just two countries: the UK and Mexico. Research by Pearson and Binder published by the public policy charity CARE demonstrates that in this context the tax burden on a one-earner married couple with two children on average wage has been consistently much higher in this country than across the OECD on average. In 2012, the latest year for which there are comparable data, the tax burden on a UK one-earner married couple on average wage was 45% greater than the OECD average, up from 42% in 2011. Moreover this burden was a staggering 80.4% of that placed on a single person on the same wage while the comparable OECD figure was just 55%. Figures sometimes blind us to the issues, but these figures illustrate the issue of fairness and balance and show what the Government are trying to achieve through the legislative change before us.

In this context is it any wonder that rather than opting for marriage, couples are opting for other arrangements? Clause 11 will begin to put this right, but this is only a very limited, partially transferable allowance that, far from creating a level playing field, let alone a little nudge to opt for marriage, will instead only erode the incentive not to marry. Clause 11 is thus a hugely important first step; it is a foundation upon which we must build.

On 10 April 2010, when announcing the detail of the Conservative transferable allowance policy, which was then worth 11.6% of the personal allowance, the Prime Minister was clearly bothered that the package was not more generous. He indicated his wish to see more and, speaking on “Sky News”, he blamed the current fiscal constraints and said:

“Of course I want to go further and I am sure that over a Parliament we would be able to go further but this is a good first step.”

I believe this is a good first step. I am on record in my constituency as asking for this. I have done articles for my provincial press, supporting this option of the married transferable allowance. I believe today we have a chance to move towards that, and I hope this House will decide very positively and clearly on this.

It is clear that all we are going to get in this Parliament is a 10% transferable allowance. Many people will be watching to see the Prime Minister make good his commitment to go further in the next Parliament. Perhaps the Minister can confirm in his response in what ways the Government are committed to doing more in the next parliamentary term to introduce a fully transferable allowance. That must be the No. 1 income tax priority for the next Parliament.

[Mr Burrowes]

I very much welcome clause 11 and not the amendment in the name of the Opposition.

Before coming here I had an interview with children who are taking part in the BBC “Newsround” consideration of Prime Minister’s questions. I did not have an opportunity to ask them about the transferable allowance, but as they grow into adulthood I suspect they will look back on the proceedings here and think it rather odd that we are trying to put down dividing lines and divide along party lines on the basic issue of marriage being recognised in the tax system. They will think it rather odd that people are trying to pit one family relationship against another, when this is a very simple and moderate measure that is recognised across the world.

Finance (No.2) Bill

Jim Shannon Excerpts

Tuesday 8th April 2014 Commons Chamber

Very much connected to that point is the recent ASDA-mumsnet survey which reveals that seven out of 10 stay-at-home mums consistently say going back to work simply would not make financial sense because the hefty child care costs would leave them worse off, and 52% rely on household salaries for child care and 35% rely on their family for child care. In this context it is still disappointing, if not surprising, that the Institute for Public Policy Research recently published a report showing that the UK’s maternal employment rates are far lower than those of our OECD competitor countries.

[Jim Shannon (Strangford) (DUP)]

Does the hon. Lady agree that for many people with children if they did not have their grandparents or their aunties, the cost of child care would be too great for them to return to work? Does she feel that while the Government have made some concessions on child care, they have not given enough of an incentive for those people not to need to depend on their grandparents and aunts in order to be able to continue to work?

[Catherine McKinnell]

The hon. Gentleman raises an important point. There is a heroic army of grandparents out there providing that much-needed support within families to ensure that those really struggling with the cost of living crisis can still be in work, but unfortunately some people do not have that luxury. There are an awful lot of people who cannot rely on that support and who find the current cost of child care too prohibitive to go to work or find that, despite working all hours, they cannot put food on the table.

Transparency and Public Trust in Business

Jim Shannon Excerpts

Tuesday 8th April 2014 Commons Chamber

[Lisa Nandy (Wigan) (Lab)]

Six years after the peak of the global financial crisis there should surely no longer be disagreement among any of us that businesses are bound by the same ethical and social responsibilities that bind us all. As the financial crash showed, business transparency is absolutely essential to society. The lack of it in the financial sector in recent years continues to have huge repercussions for people in my town of Wigan, in the UK, and across the world.

We saw in the recent horsemeat scandal that lack of transparency can have major implications for consumers in the UK, but it can have even greater implications for the lives of people across the world, as in the horrific loss of life in Bangladesh with the collapse of the Rana Plaza complex. As business has become increasingly complex, it is very hard for consumers to know, first, whether they can trust the product they are buying, and secondly, whether the business they are supporting is operating ethically. Little wonder, then, that there is increasing public appetite for action. I was surprised to hear recently that the Edelman Trust Barometer found that the public want greater regulation of business by a margin of 4:1.

But it is not just the public who want action; companies and business leaders are also behind the call for higher business standards. The Minister will be aware of the B Team, an alliance of thinkers and business leaders, including Richard Branson and Paul Polman, the chief executive of Unilever, who are calling for a plan B that, in their words, puts

“people and planet alongside profit”.

At the World Economic Forum in Davos, they called for companies to implement the highest standards in their core operations and across their supply chains, including greater transparency as a matter of course and as good business practice.

There is good reason for this. Business needs to command the support of the public, of investors and of shareholders in order to survive and to grow. However, public trust is low. Last year, an Ipsos MORI poll found that only 34% of the people questioned trusted business leaders to tell the truth. We need to see this in context; I would hate to think what they had to say about politicians. Research by Goldman Sachs and KPMG has shown that companies that have implemented responsible business practices such as transparency throughout their operations often lead on stock market performance and attract a wider and more loyal investor base from investors who are increasingly looking at these issues and want to invest in companies that have a long-term, not a short-term, outlook.

There are many examples of business leading the way in this field. As chairperson of the all-party parliamentary group on corporate responsibility, I have been pleased to meet and work with many such business leaders over the past four years. However, the Government need to play their part too, because, as many of these business leaders have told me, operating transparently is not always easy. They do so in the glare of public attention, they sometimes get it wrong, and it is incredibly complicated. Companies are often involved in extremely complex supply chains. That was brought home to me and to the wider public after the Rana Plaza disaster, where some of the multinational companies involved did not even realise at first that they had been contracting from suppliers who were based in the complex. It was only after campaigners and the media got involved that they realised they had been doing so.

Some companies are making efforts to operate to the highest ethical standards in terms of human rights and the environment—and to be open about it—but their problem is that they are in competition with businesses that do not do that. Many such businesses are based in the UK and listed on the London stock exchange, but they face no penalties whatsoever for breaching the standards the Government say they want them to meet. Like so many others, I believe it is time that the playing field was tilted in favour of those that are operating to high ethical standards, not against them.

[Jim Shannon (Strangford) (DUP)]

I asked the hon. Lady beforehand for permission to intervene on her. Does she agree that greater transparency of who owns and controls companies is necessary and that, in addition to addressing the issues she has mentioned, any new measures must address tax evasion, money laundering and the financing of terror?

[Lisa Nandy]

That is absolutely right. This goes to the heart of public trust in business, which is about transparency and a commitment to tackling such issues.

The business and human rights action plan was published jointly last September by the Foreign Office and the Department for Business, Innovation and Skills. The UK was one of the first countries to breathe life into the United Nations’ guiding principles on business and human rights. I am proud of that and congratulate Ministers for taking a lead on it. “Good Business” sets out the standards it expects companies to uphold, but so far it does nothing to demand those standards of them. We have had a decade of voluntary corporate social responsibility. Given the experience of the past year and previously—when John Ruggie set out the guiding principles, which were unanimously endorsed by the UN—it is time for the Government to take a more proactive approach.

First, I have been deeply concerned by reports from non-governmental organisations and others that companies have been given conflicting messages by different parts of Government. Although the Foreign Office has consistently warned about the dangers for UK-based companies in knowingly or unknowingly breaching human rights overseas, it appears from anecdotal evidence that BIS has been acting in direct conflict with the commitments made in the action plan.

I want to draw the Minister’s attention to one concrete example where there is evidence of that happening. The Kiobel case was brought by a group of Nigerian activists who claimed that Shell had helped the Nigerian military to systematically torture and kill environmentalists in the 1990s. The cases against Shell were filed under the US alien tort statute, which applies extraterritorially, so it enables non-US plaintiffs to bring claims against foreign companies in the US courts for acts that occur in a third country. Shell challenged that use of the alien tort statute and the UK Government intervened to support the company’s position. The court then ruled in Shell’s favour, which limits the ability of communities in developing countries to challenge corporate malpractice in the US courts in future. The Government’s intervention ran contrary to the commitment made by the Prime Minister to implement the UN guiding principles on business and human rights, which were unanimously endorsed by Governments in 2011.

Will the Minister give an assurance that her Department is completely committed to upholding the principles in the action plan, without qualification, and that it will commit to the same openness in its dealings with business as the Government say they want to see from business itself? In particular, will she ensure that businesses receiving export credit support or development partnership funding have to show that they are meeting the standards of the UN guiding principles?

Secondly, the entire action plan is predicated on the principle of transparency—none of it can be monitored or enforced without it. Nowhere is that more true than in one of the central pillars of John Ruggie’s principles, namely the access to remedy. Without transparency, people whose lives and communities have been destroyed have no effective way of getting justice. As we saw with the South African miners who took a case against Cape plc, companies will often seek to cover the impact of their actions, creating enormous difficulties for communities and their lawyers in gaining the evidence they need to put before the courts.

I must tell the Minister that without transparency requirements, there is no way to prevent such injustices. I recently met representatives of the Afro-Colombian Community Council of Opoca in Colombia. After an 11-year struggle to acquire a collective land title, it was finally granted the right to 73,000 hectares of collective land titles in September 2011, which affected about 17,500 people. They had an 11-year struggle only to discover that a mining concession, covering approximately 55,000 hectares of their ancestral territory, had been granted to AngloGold Ashanti, which is a company registered on the British stock exchange. A proactive duty on companies to disclose information would prevent such harm, while a greater commitment to transparency and—crucially—penalties for those who do not comply is the only way to enable people to access justice.

Finally, I want to tell the Minister:

“To no one will we sell, to no one deny or delay right or justice.”

That principle in Magna Carta has formed the basis of law, liberty and rights in this country for centuries. In this area at least, we are falling well short. Will the Minister commit to improving transparency and access to justice for communities harmed by the actions of British businesses abroad? At present, I and many other hon. Members in the Chamber are approached by so many people who have such a different story to tell. This is an issue of morality, good business and consumer confidence, but above all of national reputation. We should promote not the worst but the best of British business to the world. I look forward to the Minister’s response.