Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 24th October 2017 Commons Chamber

[Mr Speaker]

Order. Just for the benefit of the hon. Gentleman, may I say that the Opposition’s plans for taxes are not a responsibility of the Government? This is a lesson we all have to learn; in my case I learned it early in my first Parliament, and the hon. Gentleman has learned that lesson today.

[Jim Shannon (Strangford) (DUP)]

Across the whole United Kingdom, and not just in the east midlands, small and medium-sized businesses have created not hundreds but thousands of jobs. Small and medium-sized businesses in my constituency tell me that they are over-regulated and that bureaucracy restricts their ability to employ more people. What is the Minister doing to address that?

[Mel Stride]

The hon. Gentleman is absolutely right about the critical importance of small and medium-sized enterprises. We have more than 5 million small businesses in our country, and they are right at the heart of generating the wealth that generates the taxes that support the public services we all wish to see thriving. I have already explained that we are working closely with the Office of Tax Simplification to make sure that, wherever possible, the Government get out of the way of business, rather than standing in its way.

Taxes on Small Businesses

Jim Shannon Excerpts

Wednesday 18th October 2017 Westminster Hall

[Derek Thomas (St Ives) (Con)]

I beg to move,

That this House has considered the effect of taxes on small businesses.

It is a pleasure to serve under your chairmanship, Ms Dorries. I am grateful for the opportunity to raise this issue, which affects small businesses in west Cornwall and the Isles of Scilly, in the constituency of St Ives.

Some 87% of business enterprises in my west Cornwall constituency are classed as microbusinesses, meaning that they employ fewer than 10 people. In fact, 99% of all businesses in my constituency are small and medium-sized enterprises, employing fewer than 250 workers. Those small, locally run businesses provide the lion’s share of jobs and are the drivers of our local economy. If that is true in St Ives, it will be true elsewhere in the country, which is why understanding how the tax system helps or hinders small business is so important and why I am pleased to raise the issue today. It is also why I have dedicated a considerable amount of time since being elected in 2015 to meeting small businesses and understanding the issues facing them. In fact, I had a small business of my own until my election in 2015.

I know that this Conservative Government recognise the considerable contribution of small businesses, and I acknowledge and appreciate the work that has been done to address the tax burden and support small employers. Many of the 3 million jobs created since 2010 are within small businesses, which is, in part, a credit to Government policy. I recognise that there is no shortage of priorities for the Government and that navigating our way out of the EU will be time-consuming, to say the least. Despite that and—dare I say it—because of it, if there was ever a time to radically address the way businesses are taxed, it is now. While reform will be a challenge, it will undoubtedly yield benefits for our economy by improving productivity, driving wage growth, boosting full-time employment and spreading wealth across all corners of Great Britain, which is a particular concern and interest of people in the far west of Cornwall.

Time does not permit us to consider every aspect of business taxation, and I am not gifted with the brain that is needed fully to understand the complexities of the issue. However, I wish to cover three tax-related issues that stand out to me as clear opportunities for the Government to remove barriers for small business and demonstrate an understanding and recognition of the life of a small business owner.

The first issue is the VAT threshold. Small business owners in coastal communities such as Cornwall and the Isles of Scilly choose to curtail their business to duck under the VAT threshold of £85,000. That is not necessarily about tax avoidance, but more a desire to avoid another level of administration. One business owner on Scilly contacted me because the gallery she runs is set to cross the VAT threshold. She will then have to raise prices by 20% to break even. Since only one of the gallery’s 30 artists is VAT-registered, being able to claim back VAT would not compensate for that change. The gallery must either take the leap and accept that burden or close for the rest of the season.

The effect of the stifling VAT threshold in my constituency is reduced activity during shoulder and winter months, reduced employment opportunities, reduced Government tax income, depressed town centre activity and greater pressure on the hospitality sector during peak season. A guest house owner wanting to avoid registering for VAT may also choose to close early, reducing the availability of beds for visitors and removing altogether the potential spend of the visitor within the wider community.

I raise that issue now because leaving the EU presents an opportunity for the Treasury to consider raising the threshold to, for the sake of argument, £120,000. The Isles of Scilly would be a great place to look at if the Treasury wanted to assess the possible impacts and implications of such a change. The Government may find that it is a cost-neutral proposal.

Another benefit of that proposal is the potential to create greater job opportunities and encourage fresh blood into the tourism sector. That is particularly relevant in Cornwall, Scilly and other rural areas across the UK that struggle to retain young people. I am not suggesting that the proposal would address the skills gap entirely in remote and rural areas, but it would be a step in the right direction.

I assure the Minister and everyone here today that the need to address the VAT threshold in coastal communities is regularly brought to my attention by business owners. I am interested to hear if the Minister is minded to consider such a proposal and possibly a pilot in the constituency of St Ives.

[Jim Shannon (Strangford) (DUP)]

This is a very complex matter. I was doing some research on it and found that 59% of homes now own a tablet, 71% of UK adults have a smartphone and 97% of small and medium-sized businesses have access to online services. I make a plea to the Minister on behalf of craftspeople—people who know nothing about computers but everything about their hands. The person who has a computer in their house is probably a 13-year-old—

[Ms Nadine Dorries (in the Chair)]

Order. Mr Shannon, please keep it to an intervention, not a speech.

[Jim Shannon]

Does the hon. Gentleman agree that that point is not fully taken into consideration when it comes to the digitalisation of everything?

[Derek Thomas]

If the hon. Gentleman is happy to wait, I will be pleased to address that issue later.

I will move on to business rates, which have been quite a contentious and well-documented issue in recent months. There is no doubt in my mind that if the Treasury were inventing a taxation system from scratch today, the current business rate system would not feature in its proposals. The Government should scrap the current system of business rates and develop a fresh solution, injecting fairness into the tax system for small businesses and taking into account the growth of online shopping and supermarket home delivery services.

Structurally, there are many things wrong with business rates. The tax bears little or no relation to the success or activity of a business. The method used to calculate it is arbitrary. Colleagues will be aware that rates are calculated by multiplying the rateable value, based on the assumed rental value of the property, by a multiplier set by Government. Almost in recognition of that, and in an attempt to spare small businesses the business rate burden, the 2010 Conservative-led coalition and the two successive Conservative Governments have sought to address the problems associated with business rates. As a result, some businesses are eligible for rate relief, with many paying no rates at all. Others, for reasons that are beyond the understanding of most lay people, find they are charged 100% business rates, with many in my constituency experiencing considerable increases following the revaluations earlier this year.

The owner of a small independent delicatessen in Helston, where rents are relatively lower, approached me for help in March. Her current rateable value stands at an extortionate £17,750 per year. To rub salt into the wound, her rates are calculated as £149 per square metre, which is the second highest on the street. A chain bakery operating next door pays just £101 per square metre—32% less—and a national clothing chain on the other side of the street pays just £66 per square metre, which is over 56% less. If she enjoyed the same rate per square metre, she would be liable for no rates whatsoever. Because of her business rate charge, she is not sure that she can afford to stay in business.

The current business rate calculations unfairly discriminate even between businesses in the same part of the high street and do not enable businesses to operate on a level playing field. The great tragedy is that that example is not unique. There are similar cases of an independent photography shop in Penzance and a car paint-spraying business that is run by two youngsters who find that their business rate charge bears no comparison to similar units on the same industrial estate. In both instances, there is little hope for the businesses unless the Government act quickly.

Furthermore, in this age of online shopping and supermarket home delivery services, there are businesses essential to the health of the high street that find competing in today’s world nigh on impossible, despite their so-called privileged position on the high street. Historically, a place on the high street gave an advantage to the shop owner, and consequently the business rate levy reflected that. The ability of supermarkets to provide a delivery service direct to the door has undermined that advantage, and in many cases, despite the modern reach of supermarkets as a result of home delivery services, the supermarket pays relatively less in business rates than the high street shopkeeper. In fact, in St Ives, business rates for some supermarkets reduced this April.

To add insult to injury, rents in St Ives town are being pushed up by the perceived popularity of this iconic place. This year, because rate charges relate to rental values, independent business owners have seen their business rate charge rocket. Traditional retailers, such as bakers, butchers and grocers, face the risk of closing after decades of trading. High street chains move in, and ironically the very thing that drives visitors to St Ives is being lost, partly because of what I believe is a flawed business rate system.

Could it be that the cost of running a high street business, including a business rate charge, means that a greengrocer can no longer compete with a supermarket 20 miles away, now that it can deliver groceries to the family living in the flat above? Surely a modern-day business tax should recognise such changes in consumer behaviour. Furthermore, business rate charges take no account of external factors such as high parking charges, poor upkeep of the local area, closure of local public toilets, or a downturn in the economy, most of which have been experienced in Cornwall in recent years.

I have worked hard with a number of business owners who have found the business rate system profoundly challenging. That group includes a local pub owner, who came to the trade recently, full of enthusiasm. The pub employs 14 locals and is a focal point for the community. A rate review means that the pub now faces a 280% increase in business rates, which equates to an extra £13,000 a year. I recognise that the Government have done some work, and Cornwall Council is also doing some work, to help with that, but the fact remains that that rural pub owner’s rates have increased by 280%. As rural pubs close around us and communities are losing their rural services, issues such as this are hardly encouraging to new entrants.

Another major drawback is that business rates hinder aspiration. Should a small business benefiting from full rate relief wish to take on a second property, expanding both the business and the workforce, it will lose its rate relief and pay rates on both the new and the existing outlet. That step change discourages growth and innovation, and stifles all the benefits that growth brings, including job opportunities, staff training and career progression. That is hardly the intention of what I believe is a small business-friendly Conservative Government.

Before moving on, I want to stress the potentially unique role that traditional independent retailers such as bakers, butchers and grocers have in looking out for vulnerable people in the community—for example, the elderly. That is reason indeed to consider the potentially devastating impact of an outdated business rate system.

Finally, I would like to address the Government’s Making Tax Digital plan. I am in favour of moving across to digital tax reporting and I recognise the Government’s ambition to move to a fully digital tax system during the next few years. Will the Minister ensure that SMEs, including sole traders, have easy access to reliable software and training? Have the Government considered that for some businesses, a transition to digital-only tax will present a further serious administrative and financial burden? Strange as it may seem, there are still significant numbers of traders who are not naturally acquainted with online activity. I am reluctant to single out individuals, but I have met a number of sole traders who are not tech savvy, and the idea of making tax digital fills them with dread.

At present, I can see that there may be a benefit to Her Majesty’s Revenue and Customs in making tax digital, and I know that the Government are making allowances for areas of poor digital connectivity and plan to exempt some on very low self-employed incomes. Can the Minister please ensure that those exceptions are properly supported by accurate data, so that those who are not yet in a position to take part in the brave new world of digital tax reporting will not be unfairly penalised or discriminated against?

In conclusion, I believe that the Government could send a clear message that Brexit does not mean that important domestic priorities are being left on the back burner. The Government can do that by ensuring that small business growth is not stifled by out-of-date and grossly unfair tax systems. Taxation must promote growth so that, as a nation and within our communities, we can maximise all the benefits that a vibrant economy brings. As changes in consumer behaviour and better digital services lead consumers to gravitate towards online shopping and supermarket home delivery, we must ensure that the Government have a fair system of taxation and make changes to unlock the potential of our country’s entrepreneurial small businesses.

The Government must recognise that the negative impact of business rates and the profit hit from VAT registration often go hand in hand. Both taxes kick in at the crucial point when an enterprise is on the cusp of growing to a size at which it can be of useful benefit to the local economy and community. Will the Government please consider scrapping business rates once and for all, in favour of a tax that reflects the economic activity of all businesses concerned? Will the Government explore opportunities to raise the VAT threshold in coastal and rural tourist areas, and will the Government continue to listen carefully to those who recognise the move towards digital tax reporting but ask that we approach it with caution and understanding?

[Ms Nadine Dorries (in the Chair)]

I call Jim Shannon.

[Jim Shannon]

Ms Dorries, I withdrew my name this morning.

[Ms Nadine Dorries (in the Chair)]

Well, it is still on my list. We will go to Robert Jenrick.

Summer Adjournment

Jim Shannon Excerpts

Thursday 20th July 2017 Commons Chamber

[Keith Vaz (Leicester East) (Lab)]

It is a pleasure to follow the hon. Member for Bridgwater and West Somerset (Mr Liddell-Grainger) and I eagerly want to visit his constituency to meet all these house builders with whom he is in dispute. I do not think they stand much of a chance, being up against the hon. Gentleman.

I welcome the presence on the Labour Front Bench of the new shadow Deputy Leader of the House, my hon. Friend the Member for Bristol South (Karin Smyth), who will be making her maiden contribution in this debate, and, of course, the ever-present Deputy Leader of the House, who will be winding up. I have to apologise for the fact that, unfortunately, I have an unbreakable commitment in Leicester and might not be able to be here for the winding-up speeches. However, I will read Hansard with great care. I also had no idea I was going to be called so early.

I make no apology for starting this debate by talking about the situation in Yemen. Despite the catastrophic situation within the state, we are currently experiencing an even worse crisis. In the course of Yemen’s civil war there have been well over 10,000 civilian deaths, 19.4 million Yemenis are without access to healthcare, 3 million are now suffering from acute malnutrition, and over 3 million are internally displaced. One child dies every 10 minutes.

Last week the United Nations announced that there were 300,000 cholera cases in Yemen countrywide, in 22 of Yemen’s 23 provinces. If current rates of cholera stay the same, from the time we enter recess to when this House returns on 5 September, up to 225,000 extra cases will be added to that number. The United Nations calls this the worst cholera crisis in the world.

Along with the spread of the disease, there has been the chronic destruction of medical infrastructure caused by the civil war, which has exacerbated the crisis. Despite the assistance given by organisations such as Médecins sans Frontières, Islamic Relief, the Yemen Safe Passage Group, the UNHCR, and the Red Cross, the situation in Yemen is getting much worse. We heard only today that a number of journalists had been prevented from landing in Sana’a.

While we go to our constituencies to do the work that all Members have to do during the recess, we must not forget what is happening in Yemen. I hope that a message from the Front Bench will go back to the Foreign Office that we expect to see Ministers fully engaged in the crisis that continues to unfold.

This week I was elected chair of the new all-party group on immigration and visas, and I am delighted to see the vice-chair of the group here, the hon. Member for Harrow East (Bob Blackman). I am also very pleased that the hon. Member for Linlithgow and East Falkirk (Martyn Day) was elected as the secretary. The group’s purpose is to raise, on an all-party basis, issues of concern about the way in which our immigration and visa system operates. We all have critical constituency cases involving people who wish to travel, or whose relatives are not allowed to come into the country. For instance, the wedding of a constituent of mine is taking place at the end of August, but the best man is not being allowed to come here. Trying to convince officials who are thousands of miles away is extremely difficult.

I hope this group will, in a measured way, explore these circumstances, especially the role of the account managers and the issue of same-day service. I have a case of somebody who applied for a same-day visa, paid the fee of £500 on top of the fee of £1,000 for their visa, and six months later the situation has not been resolved. It is important that we look at these issues in a constructive way.

I hope that, over the summer, Ministers in the Department for Exiting the European Union and the Home Office will be trying to fashion a plan for the 3.2 million EU citizens living in the United Kingdom. We have heard the Prime Minister’s welcome assurance that they will be allowed to stay, but the process of issuing the necessary documentation could take a long time. There is now a backlog of 100,000 cases at the Home Office. Some of those citizens arrived here without passports because they could enter the UK with identity cards from EU countries. Getting them processed will be extremely difficult.

I hope that those Ministers will also look into the suggestion of a pilot scheme for allowing EU citizens to register at local level. They could take their passports along to the local authority and get themselves checked and registered. That information could then be handed on to the Home Office. The Deputy Leader of the House of Commons, the hon. Member for Northampton North (Michael Ellis), is a former member of the Home Affairs Committee, and he will be well aware of these issues. I hope that he will pass that suggestion on.

I want to make two quick constituency points before I end. The first concerns the continuing campaign being led by Amy Morgan, a young mother in Leicester whose son, Tyler, was stabbed to death a year and a half ago. Another of my constituents, Isaac Williams, was stabbed to death in April this year. We need to do more to tackle knife crime. I introduced a Bill to increase the length of time people spend in prison for carrying a knife. Statistics show a 24% rise in the incidence of knife crime. That is a huge increase, with 12,074 offences and 2,381 detentions last year. Secondly, I am hoping to organise a meeting in my constituency involving those who have control of our theme parks, following the death earlier this year of my 11-year-old constituent, Evha Jannath. It is extremely important that families who visit theme parks should be as safe as possible.

Speaking as the chair of the all-party parliamentary group on diabetes, and as someone who has type 2 diabetes, let me end by issuing a challenge to Members. I want to commend the Pioppi diet, and I will write to the 100 Members who have the most diabetics in their constituencies about this. Of course, we all have diabetics in our constituencies, but the Library has provided me with statistics for the top 100. I think that Doncaster might be on that list, Madam Deputy Speaker. I shall ask those Members to take up the challenge of the Pioppi diet, which is named after a village in Italy where people live on average to the age of 97 as a result of their Mediterranean diet. It involves getting rid of sugar, which is a killer, keeping away from potatoes—and, for me, rice—and concentrating instead on the good food that is available around the Mediterranean. We have wonderful farms and food makers in this country, but we do not spend enough time looking at what we eat.

We have a diabetes epidemic in the United Kingdom. There are 4 million people with type 2 diabetes in this country, and 500,000 more—some of whom are in this House today—who do not know that they have the condition. My hon. Friend the Member for Strangford (Jim Shannon) is an officer of the APPG, and I am sure that he will be taking up the Pioppi diet challenge—

[Jim Shannon (Strangford) (DUP)]

If it helps me to live to 97, I definitely will.

[Keith Vaz]

I know that all Democratic Unionist party Members would like to live to be 97, especially in the current climate.

I will be writing to those 100 Members, urging them to take up that challenge. I want to thank Dr Aseem Malhotra, the world-famous cardiologist, and Donal O’Neill, a renowned film-maker from Ireland, for writing the incredible book, “The Pioppi Diet”. I want everyone to take it up for 28 days in August and to see, when they come back, whether it has made a difference. With that, Madam Deputy Speaker, I should like to wish you, the Leader of the House, the shadow Leader of the House, all Members and all Officers of the House a happy and peaceful recess. We hope that nothing will bring us back during the recess, as has happened in the past. We want a bit of political stability so that we can enjoy our summer.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

It is always a pleasure to speak in these Adjournment debates, and I look forward to each one. People say that I always speak in Adjournment debates, but there you are. In the past, I have taken this opportunity to talk about Northern Ireland’s history and culture, and it is important to get that in Hansard. I have spoken about the Apprentice Boys and the Orange Order, but today I want to speak about the Royal Black Preceptory. People will know about 12 July, which is a bank and public holiday in Northern Ireland. It is a celebration of our culture, history and heritage and, for people who may not be aware, it is important to those who wear a collarette and walk down a certain street. I want to speak about why members of the Royal Black Preceptory put on their collarettes and hold their head high and walk at parades in the so-called marching season.

The Royal Black Preceptory, or the Institute of the Imperial Grand Black Chapter of the British Commonwealth, was formed in Ireland in 1797, two years after the formation of the Orange Order in Daniel Winter’s cottage, Loughgall, County Armagh. Its headquarters remain in Lurgan, County Armagh. It ran on an informal basis until 14 September 1846, when the Royal Black Institution was placed on a permanent basis through its reconstitution at a meeting held in Portadown.

From that point, the institution was infused with new life, vitality, inspiration, discipline and a foundation, which has helped it to stand the test of time and to expand to the worldwide membership that exists today. The tiered structure of the institution has its foundation in the local preceptory. Each preceptory has a unique number, which is allocated by the governing body when a new warrant is issued. The preceptory elects officers, who represent their membership at the next tier, namely, a district chapter. Officers from the various local district chapters come together and form a county or provincial grand chapter. My Royal Black Preceptory is number 675, Ballywalter Crimson Arrow. I have been a master and a district master and am currently the register.

The officers of the various county or provincial chapters constitute the membership of the governing body known as the Imperial Grand Council. One of the institution’s most colourful and well-attended events is the annual demonstration at Scarva in County Down, which is traditionally held on 13 July. Preceptories from Portadown, Newry, Tandragee, Markethill, Banbridge, Rathfriland and Lower Iveagh take part along with many national and international visitors.

Exceptional numbers of people turned out this year. I believe that across the whole Province there has been more interest in our culture and history this summer than ever before. The numbers who attended and took part in the demonstrations or parades have been phenomenally larger than normal.

Other demonstrations attended by the majority of preceptories in Northern Ireland are organised on the last Saturday in August each year, usually across six different venues. A demonstration is also organised for the second Saturday in August in Fermanagh, attended by preceptories from Fermanagh, Cavan, Donegal and Monaghan. There is also one in Scotland, attended by all Scottish preceptories.

I will quote the official website of the Royal Black Institution:

“At the beginning of the 21st century, the Royal Black Institution is poised to continue its valuable role in maintaining its witness for the Christian Reformed Faith and fostering friendly relations among people of a common heritage on what is truly a worldwide scale.”

The basis of the Royal Black Institution is the promotion of scripture, the principles of the Protestant Reformation, and religious freedom, democracy and liberty for all. The Royal Black Institution has preceptories throughout the world, mainly in the major English-speaking countries, and is particularly strong in Newfoundland, Canada. The society is also popular in Scotland—I see that some of my colleagues from Scotland are here today—where 60 preceptories exist, organised into 11 districts across the country. In Glasgow alone, 26 marches by the Royal Black Institution took place in the year 2009-10.

We walk on the last Saturday in August. This year, the demonstration will be held in Comber, which is in my constituency, for the whole of County Down. For those who love marching bands, the preceptories demonstration always brings an exceptional quality of bands. The Royal Black Preceptory members are well turned out, in suits, ties and in some cases bowler hats.

The society is formed from Orangemen and can be seen as a progression of that order, although they are separate institutions. Anyone wishing to be admitted to the Royal Black Institution must first become a member of an Orange Order Lodge, and many people are members of both. The Royal Black is often referred to as

“the senior of the loyal orders”.

The Black’s foundations are scriptural and it does not involve itself in politics or take “political” stances that sway towards one particular political party or another, while the Orange Order has traditionally been seen to play a more prominent role in Unionist politics. When people talk about “political rallies”, that is why many Black preceptory members do not associate with such rallies.

I am a proud member of the Royal Black Preceptory 675, along with my brother Keith, and I walk proudly, understanding that when I walk I carry with me the weight and history of our nation. The fact is that the underlying principle of the Black is religious freedom, which I greatly appreciate and often speak about in this House. It means a lot to me and to all the other people whose fathers and grandfathers have proudly stood under the scriptural banners of the lodges. Although there may be some on either side of the divide who seek to make such walks a political action, as a politician I can proudly say that that is not my purpose when wearing my collarette. My purpose is to declare that I hold to the tenet of religious liberty for all, and cling to the right to express and celebrate my heritage and culture as a man who loves God, loves scripture, loves his community, loves culture and loves our marching season.

I will give a note to anyone in this House—right hon. Members or hon. Members— who invites me to any events on 12 July or the Black Saturday. For some reason, I will not be available. On those two occasions back home, I have a long-standing engagement of celebrating who I am. Although I really appreciate such invitations, I am sorry that I will not be able to take them up.

I thank Mr Deputy Speaker, the other Deputy Speakers and Mr Speaker, and the staff of this House, for their kindness to all of us as right hon. and hon. Members, including the catering staff, the security staff and especially Hansard, who often translate my Ulster Scots into English, which I appreciate very much; Hansard does very well. I wish all right hon. and hon. Members a very relaxing and peaceful holiday. They deserve the break. What a privilege it is to come to this House to represent our constituents. We are very privileged to do so and I thank the people of Strangford for giving me the chance to do that again.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 18th April 2017 Commons Chamber

[Mr Hammond]

I know that my hon. Friend regards the islands as particularly important, and I concur with him on that. The Government support continuing economic growth across the south-east, including all regions and islands. The Solent local enterprise partnership receives more than £180 million from the local growth fund, including funding for investment in local skills and business start-ups, with the Isle of Wight receiving about £15 million of investment in local infrastructure and skills.

[Jim Shannon (Strangford) (DUP)]

Will the Chancellor give us an assurance that he will not surrender to the outrageous demands of Tusk, Juncker and Barnier that the UK must pay €60 billion before it leaves the EU?

[Mr Hammond]

As I have already said, this should be seen for what it is: an opening gambit in a long and complex negotiation.

Easter Adjournment

Jim Shannon Excerpts

Thursday 30th March 2017 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

It is always a pleasure to speak in the House on any issue. I begin by joining those who have already conveyed their sympathies regarding PC Palmer and the innocents who were murdered just over a week ago. We also think of the injured, some of whom are critical even today, and their families.

I rise to speak not about the geological components of drought and what causes it, but about the suffering of men, women and children in Africa and what can be done to help them. We all know the issues, and we see them on TV. I will not be the only one in this Chamber who has seen the devastating images of children who are so malnourished that they cannot even stand. I read the report from Save the Children, which brings home the extent of the problem in Africa at present. It states that an estimated 6.5 million children could be at risk of starvation in the horn of Africa as a result of the back-to-back droughts in Somalia, Ethiopia and Kenya. Nearly 500,000 children in the region are already suffering from severe acute malnutrition.

What is malnutrition? It is a lack of nutritious food, which has an horrific effect on quality of life. Malnutrition increases the risk of infection and infectious disease, and even moderate malnutrition weakens every part of the immune system. For example, it is a major risk factor in the onset of active tuberculosis. Protein and energy malnutrition and deficiencies of specific micronutrients, including iron, zinc and vitamins, increase susceptibility to infection. All that happens to people who do not have food.

Malnutrition affects HIV transmission by increasing the risk of transmission from mother to child and by increasing the replication of the virus. Again, the complications are far-reaching. In communities or areas that lack access to safe drinking water, those additional health risks present a critical problem. Lower energy and impaired brain function represent the downward spiral of malnutrition as victims are less able to perform the tasks needed to acquire food, earn an income or gain an education. That is a massive problem, as several seasons of either failed or erratic rainfall have led to severe water shortages and the death of livestock, leaving nearly 15 million people across the three countries in urgent need of assistance. We have seen charities requesting help on TV, and the Government are doing a lot, but I urge them to do more.

With the next rainy season again expected to bring below-average rainfall across the region, the situation for already desperate children and families in Somalia, Ethiopia and Kenya will only get worse, leaving millions at risk of hunger, lifelong health problems and, worse, death. I take on board the urgings of John Graham, the Ethiopia country director of Save the Children, who in January 2017, ahead of the UN meeting in Addis Ababa, said:

“we urge them not to forget the plight of these children and families by stepping up their efforts to fund this response. The lives of millions are at stake. We must not allow many of the same past errors that resulted in the deaths of 130,000 children under five during the last Somalia famine alone, to be repeated.”

I continue that plea and look to our International Development Ministers. What have the Government done since January to help address this tragic situation? What is in place to ensure that aid reaches its destination intact? And what more can we do in this place to ensure that that happens? Focusing attention in this debate is one way of doing it.

With 5 million people, nearly half its population, facing severe food and water shortages, Somalia is now on the verge of famine. Malnutrition rates across Somalia have already reached critical levels and are expected to worsen in the coming weeks. Thousands of families are on the move in search of food and water, and many are now crossing the border into Ethiopia, which is dealing with its own effects of the drought, in search of help.

After screening on arrival at Dollo Ado camp, 77% of children show signs of malnutrition. In Ethiopia, the drought is forcing many children to drop out of school, leaving them at risk of early marriage and forced migration, both of which we do not want to happen. Again, those are the side effects of drought. The Ethiopian Government are working to mitigate the effects of last year’s drought, and the country is appealing for $948 million of funding. Ethiopia itself has already committed some $47 million to help 5.6 million people in need, but even that will never come anywhere near addressing the issue. In Kenya, more than 1.25 million people are in urgent need of food, with hunger levels expected to worsen over the coming months.

The level of need can be, and is, overwhelming, but the young man who threw starfish back into the sea was making a difference to as many as he could, which is all I ask today. Are we making a difference to as many people as we can? I understand that we are not able to solve all the problems of that nation, and that we are not able to solve all the problems of our own nation, but we can make sure that we do all we can to see that the aid we have to offer is going directly to the right places and ends up in the hands and the bellies of the children and others who so desperately need it.

I understand that the Deputy Leader of the House will be responding, but I hope my message will go to the Department for International Development either directly or through him. I hope that, either now or at a later date, there is a strategy in place to secure our goals. I seek assurance that we are doing all we possibly can, and in the best possible way.

I conclude by thanking you, Madam Deputy Speaker, for the opportunity to speak in this House on a regular basis, and I thank the other Deputy Speakers and Mr Speaker for also making that possible. I am very honoured to be the Member for Strangford and to sit in the greatest seat of democracy in the whole world. What a privilege it is to be able to sit in this place on behalf of our people. I say, with respect to everyone else in this House, that I know I represent some of the most wonderful people in the whole of the United Kingdom of Great Britain and Northern Ireland—the people of Strangford. These are people I have known all my life.

I also wish to thank all the House staff and the right hon. and hon. Members for their courtesy and good manners. I thank the Deputy Leader of the House and the shadow Deputy Leader of the House in advance for the contributions they are going to make. I also wish to remind people of the real meaning of Easter, which is that our Lord and saviour was crucified on the cross and came into the world to save sinners.

Equitable Life Policyholders: Compensation

Jim Shannon Excerpts

Thursday 23rd March 2017 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Member for Harrow East (Bob Blackman) on setting the scene. I also thank him personally, because for the time that I have been in the House—since 2010—he has always championed the Equitable Life policyholders. Today, some seven years later—for me, if not for him—we find we are still fighting for something for which we were fighting back then. The hon. Member for Leeds North East (Fabian Hamilton) is no longer present, but he should be commended as well, because he has clearly fought equally hard to bring about justice for the policyholders. Like both those Members, we all support the continued attempts to ensure that our constituents are not left financially ruined after doing their best to save for a rainy day.

There is not a big representation in the Chamber today, but that does not detract from the importance of the debate or lessen the impact of what we are about to say or have said so far. All those who have spoken have made valuable contributions, all of them saying the same thing and all of them looking to the Minister—there is no pressure on the Minister, is there?—to deliver the answers that we want. With respect, and the Minister knows that I mean this in the best possible way, we must convey to him what our constituents are telling us. We need the Government to know exactly where we stand.

Before I came to the House, when I was a Member of the Northern Ireland Assembly, we debated this matter there, and we also had debates and correspondence about it when we were councillors, and we were probably following these issues in other roles even longer ago, many years before I came here.

People always use that phrase about saving for a rainy day. Well, the rain is falling now, and it is the Government’s responsibility to hold out the umbrella. The newspaper over the head is starting to wear out: it is useful at the start, but it does not last. It is time for the Minister to step up to the mark and do the right thing by these savers. I have received dozens of e-mails and letters from my constituents, and I have never come across an Equitable Life policyholder who was in a high income bracket. The hon. Member for Leeds North East spoke of people in a low income bracket, and those are the people we are talking about. The impact on them is greater, and, unfortunately, they do not have time on their side either.

My constituents and those of my Northern Ireland colleagues have spoken to us about this issue, and I believe that this is an opportunity for me to make my constituents’ case and, like other Members—including some who have now left the Chamber—to give examples. I am very aware of the fact that the Government have paid out a substantial sum of money—at present, almost £1 billion—which is commendable; we should give credit where it is due. However, that is an indication of the fact that the Government have a further responsibility that needs to be fulfilled. I understand as well as anyone else in this Chamber that we currently have an £89 billion deficit, and I congratulate the Government on their economic policies. Unemployment in my area has fallen— that is a devolved responsibility—but the fall is in part a result of the greater economic policy carried out centrally by the Westminster Government. We must seek to lower the deficit, but we must also honour our obligations, and that is what we are asking the Minister to do today: to honour this obligation.

The hon. Member for Leeds North East mentioned in an intervention that some of the policyholders might never see this issue being brought to a conclusion and get the benefits, and they will therefore live on low incomes until the day they die and pass on from this world. If Governments have a mind to settle and help out the savers, could that be retrospectively passed on to their families? Will the Minister address that in his summing up?

I was brought up in a household where saving was drilled into us from an early age. That was not just because of our Ulster-Scots background, which meant that every pound was a prisoner; we were encouraged at a very early age to have savings, and we have done that throughout our lives. It was good to learn that lesson, because it showed us the value of money, and there was not much of it.

That points to what we need to do. “Put a bit aside for the future” was a phrase that was repeated often, and I have instilled that principle in my boys—successfully, I believe. But times have changed as well; it is difficult for my boys to buy a house and live their lives, never mind save on their wages. For that reason, the Government have put schemes in place to encourage saving, yet the question must be asked: why bother when we have an example of a generation—the one just before us and alongside us—who scrimped and saved and are still having to do so, through no fault of their own? We must incentivise a generation to know that savings are safe, and we should demonstrate that by doing the right thing by the Equitable Life savers.

A good point was made to me, and I shall repeat it now as it is important for it to go on the Hansard record:

“The Government ensured that no savers lost out because of the banking crisis. £133 billion was found to support the banks. According to the NAO, £76 billion is still to be recouped. At recent share prices, the taxpayer is likely to end up losing £15 billion”,

and it was suggested that there could be a loss of up to

“£22 billion on RBS alone, with annual losses in billions continuing year after year. EMAG does not believe that Equitable Life savers—who did the right thing in saving for their retirement—should have to pay for the recklessness of the banks.”

I am sure that the Minister is aware of that, but if he is not, he needs to be.

The banks got special treatment. I know the importance of giving that to the banks, but it is equally important for Equitable Life policyholders, although we must also be ever-mindful that the Government have made a substantial contribution in that regard. However, as the hon. Member for Harrow East (Bob Blackman), who set the scene today, and others have said, we need to do that little bit extra.

The facts are that £2.6 billion of relative losses should be paid to the 895,000 Equitable Life victims who are still 78% short of what they are due—a substantial sum for them—and pre-1992 with-profit annuitants should be treated the same as post-1992 WP annuitants.

Equitable Life policyholders are justified in their grievance and in pursuing full compensation. We in this House, as their representatives at Westminster, have been tasked with putting their case. That is the reason for today’s debate, and it is why I am standing with those Equitable Life victims, alongside my colleagues in this Chamber from across the whole of the United Kingdom of Great Britain and Northern Ireland. We are all together, asking for justice for the Equitable Life victims. I ask the Government to pledge simply to do the right thing by these pensioners.

--- Later in debate ---

[Mike Weir]

Indeed it is. That is the point that I was making.

Some of us are now getting to the age at which we are beginning to think seriously about what our pensions will bring us—it is going to hit us pretty shortly—but I have children who are in their 20s, and this is a very long-term investment for people in their 20s and 30s. Young people today who look at the WASPI women or at Equitable Life pensioners will not have the same confidence that people of my generation might have had that they are putting aside savings to augment their state pension. The state pension is changing, and we are looking at different ways in which people will invest for the future, such as auto-enrolment. All these things require confidence, but that confidence has been undermined by continuing scandals such as Equitable Life.

The Government have to look at the bigger picture, rather than simply looking at Equitable Life in isolation. They have to look at how we can get over this hump and ensure that all young people make provision for the future. If we do not do that, a much bigger problem will be coming over the horizon when those young people get older, having made no provision because they lacked confidence in the system. What are we going to do then? The fall-backs that exist today will no longer be there for them. I urge the Minister, even at this late stage, to go back to the Chancellor and say, “Look at the bigger picture. Look at how we are dealing with pensions. How can we get confidence back?” If we do not do this, the picture will get even worse later.

[Jim Shannon]

The hon. Gentleman reminds me of a point I should have made earlier. It is recognised that parents often need to make financial provision for their children, and that we are using some of the money that we have to make that happen, yet some Equitable Life policyholders have told me that they are unable to do that. Has the hon. Gentleman come across similar cases?

[Mike Weir]

I have a daughter who is now into her third university degree, so I know exactly what the hon. Gentleman is talking about. Yes, parents are having to use their own money to help out their children, and that can cut down the amount that will be available to them in the future. That is a decision that they have to make, however; it is a slightly different issue. The bigger issue is the future. Many young people today are not earning enough money, and many have been landed with large debts following their university degrees. That, and the lack of confidence in the system, will have an impact on their ability to save for a pension. I think I have gone on long enough now, so I will end on that point.

Budget Resolutions

Jim Shannon Excerpts

Thursday 9th March 2017 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

The hon. Gentleman has clearly outlined the issue concerning the Conservative party manifesto. The media—the radio, the TV and the papers—have today given many illustrations of why people are unhappy with the Government’s intention to raise national insurance contributions. It is an issue in my constituency, and many of my people are telling me that they do not want it to happen. Those people have operated under the existing system for several years, and they want it to continue. Does he feel that the Government should review their decision? I think that that is what he is saying, but will he confirm that?

[Bob Blackman]

The Government have to look at the matter very carefully and review the point at which someone will pay more national insurance as a result of the abolition of class 2 contributions and the increase in class 4 contributions. I do not think that the balance, as announced yesterday, is right.

Beer Duty

Jim Shannon Excerpts

Tuesday 7th March 2017 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this debate, Sir Roger, and I congratulate the hon. Member for St Austell and Newquay (Steve Double) on presenting his case well. He was certainly a super-sub, so well done to him.

I have been contacted about the beer duty on numerous occasions—a few times by constituents complaining about the rising price of their well-earned beer at the end of a day, but mostly by the hospitality sector and industry, groaning with the weight of trying to inspire growth while being restricted by a seemingly never-ending duty increase, which happens year on year without fail. I would like to give Northern Ireland’s perspective and talk about how important the issue is for us and about the Minister’s responsibility.

I was contacted before the debate by Hospitality Ulster, which is the professional body that represents the hospitality industry in Northern Ireland—its membership consists of pubs, bars, café-bars, restaurants, hotels and major visitor attractions. Tourism is important for us in Northern Ireland, and the hospitality sector’s role is particularly important. Hospitality Ulster believes that it can transform the local economy and create additional wealth and job opportunities. The successful growth and expansion of the industry will have direct financial benefits, but only with the Government’s help and support. That is why the chance to set out the issues in this debate is important and why I am presenting this case on the industry’s behalf.

Figures indicate that there are 45,000 jobs in the hospitality sector in Northern Ireland. That may not seem a lot compared with similar job opportunities across the United Kingdom, but when we pare that down, it equates to one in 20 jobs being sourced in food and drink and the hospitality sector in Northern Ireland, so the importance of this debate is clear. The hospitality sector overall accounts for 60,000 jobs across Northern Ireland and generates some £88.4 million in tax. It contributes approximately £1.1 billion to the Northern Ireland economy and pays out £653 million in wages, keeping people in employment and creating opportunities. Its importance, therefore, cannot be underlined enough.

In my area of North Down and Ards and in my constituency of Strangford, the sector pays some £7 million in tax and provides just over 3,700 jobs. There is potential for so much more, but we need to put in place support networks and help. That is partly about addressing the issue of taxation and duty, which is the key reason why we are here.

The tourism industry in Northern Ireland is competing in a cost-sensitive marketplace locally and globally. High taxation and the additional costs of unnecessary, disabling regulations and outdated legislation directly affect its ability to compete. In addition, the lack of access into and around Northern Ireland limits not only the number of people visiting the country but its residents’ access to the evening economy. Tourism brochures and information indicate that Belfast is one of the best areas for nightlife in the United Kingdom, and there are tremendous opportunities to do much better on access to it.

Much of the responsibility for this issue lies with the Northern Ireland Assembly—these are devolved matters—and I hope that it will soon be up and running; we are in the middle of a process of talks at the moment. However, taxation and duty are major issues for this House to address. Duties on all alcohol products are forecast to raise some £11.2 billion in 2016-17. To split that up, the duties on beer and cider are expected to raise £3.6 billion, whereas the duties on wine and spirits are expected to raise £4.2 billion and £3.4 billion respectively. Receipts from beer and cider duties are expected to rise slightly to £3.8 billion in 2017-18. That is a massive amount of money, and we understand its importance to the Treasury in balancing the books. We also need sustainability for the industry, which is why we want this matter to be looked at.

We need to ensure that this is the last small rise in a series of rises that has seen the price of a pint rise to £3.46, which is 20 times the amount that it would have cost in the 1970s. The hon. Member for Weaver Vale (Graham Evans) referred to those free and easy days, and that is a fond memory of a time when I also had hair. Correct me if I am wrong, but wages have not increased at a similar rate, so people are missing out and publicans are seeing customers sitting at home with a tin of beer at half the price. We have to address that as well. I will come on to that point, because some of these issues could be dealt with in the Budget and, at the same time, the importance of the hospitality sector could be reinforced.

We want to encourage a society that enjoys a drink responsibly. That is what pubs do: people are refused drinks if they are too drunk and car keys are removed, and there are protective barriers when people leave the pub. Pubs and landlords are careful about what they do, and they are responsible. On the other hand, the alcopops sector can have special offers in supermarkets, allowing 20 shots of vodka from a one-litre bottle to be downed for a shockingly small price tag. That issue was highlighted at a reception in Westminster three weeks ago. I was not aware that a big, one-litre bottle—it looked like lemonade, by the way, but it clearly was not—was so cheap and was placed in supermarkets to make it more attractive for people to buy. We have to address these issues. We all have great respect for the Minister, as others have said; she has always done her best in the many portfolios she has held, and I know that she will do the same for us today.

Something is not quite right about how we are approaching this issue. I believe that the duty rises should be put on the alcopops sector, which is often a favourite of under-age drinkers and is often where alcohol abuse takes place. The hospitality industry should be given a break, which may well keep businesses open and attractive to consumers who can put money in the local economy as opposed to the pockets of supermarket shareholders. I am not against supermarkets making money, but something is unfair when there is a clear imbalance.

I oppose any rise on beer duty, and I ask the Government and the Minister to fully consider the needs of this industry, which brings so much into the local economy and has the potential to do so much more if encouraged to do so.

--- Later in debate ---

[Jane Ellison]

I suspect that is a debate for another time. It is certainly a debate in which I took part in my previous role. If the hon. Lady will forgive me, I will stick to the topic of the debate, lest we get drawn into minimum unit pricing, as it is a complex issue.

My hon. Friend the Member for Faversham and Mid Kent (Helen Whately) spoke about the long history of the brewing industry in her constituency. She is another strong advocate for the brewing industry, and she rightly mentioned beer exports, which were worth £531 million in 2015, up 10% on the previous year. I reassure her that no duty is payable on exported alcohol, so the link between duty cuts and exports is not a direct one, although I take her point about general confidence within the industry.

The issue of high-strength alcohol has been challenged. I think the House is unanimous in wanting to tackle excessive alcohol consumption and the related health harms associated with the strongest products. The question is how we do that, but the point has been well made and the Government are of course reflecting on that.

I hope I have covered most of the points raised. I have not been able to respond to the whole thrust of the debate, although more will be said tomorrow in the Budget. The debate has been a valuable opportunity to discuss the issues, and it has been interesting to see so much common ground.

[Jim Shannon]

In my contribution I talked about alcopops—I know that might be a separate issue—and the advantage that high-street supermarkets have over the pubs. Do the Government intend to address that imbalance, the unfair advantage that high streets have over pubs, and the control of the alcohol that is sold?

[Jane Ellison]

Again, that is perhaps for a wider debate, but, as I recollect from my time as Public Health Minister, the industry was rightly praised for the extent to which it stepped up to address issues with certain products. A lot of alcopop products have been phased out by some producers who decided to change their portfolio. One or two speakers referred to the bigger chains and the fact that they have tried to shift their portfolios as they recognise the challenges that certain products pose, especially for younger drinkers. It is worth putting on the record a recognition of the industry’s actions in that regard, although there is always the challenge to do more.

I hope that I have been able to reassure Members on some issues. In opening the debate, my hon. Friend the Member for St Austell and Newquay said that the industry wanted to make sure it was not overlooked, and I can reassure him that it is not. Its voice is rightly heard loud and clear across the House and within Government. We have regular meetings and dealings with the industry and we listen very carefully to all the points made.

Cerberus Capital Management: Purchase of Distressed Assets

Jim Shannon Excerpts

Wednesday 22nd February 2017 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for bringing this matter to Westminster Hall for consideration. In the light of what he has said, does he agree that although the mortgages and loans are currently owned by entities licensed by the Financial Conduct Authority, they, like any UK mortgage, could be sold in the future to an entity that is not regulated, meaning that customers would need to seek redress under the Consumer Rights Act 2015? Does he agree that the Government must consider additional protection for people whose lives have been turned upside down since the collapse of the Northern Rock bank?

[George Kerevan]

I agree, and the hon. Gentleman gets to the heart of the issue that we want to bring before Treasury Ministers, which is that even when loans were initially regulated, they can be sold on to unregulated parties, such as Cerberus, at which point there are no guarantees about the behaviour of those companies and how customers will be treated.

Low-Cost housing

Jim Shannon Excerpts

Wednesday 8th February 2017 Westminster Hall

[John Penrose]

The hon. Lady just gave a classic example of this instinctive British fear. I have discovered that in general if people see a beautiful building that is well-designed and moderately, but not too enormously, tall—Manhattan being an example of where things are incredibly tall—many of those concerns are greatly reduced. The taller something is the more impact it has on everybody else for miles and miles around and therefore the greater care we have to take. There is a middle ground that I will talk about in a minute, which will provide us with a great deal of building and housing opportunity to reduce the cost of housing without having to make everywhere look like Manhattan, if I can put it that way.

The hon. Lady’s intervention leads me to say that we need to throw off these mental shackles—these 50-year-old emotional architectural scars—and instead count the blessings of building up, not out.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for bringing forward this important issue of how we better utilise our space. He will know—I am sure this is the case in his constituency, as it is in mine—that people have the opportunity to live above shops. That is a special scheme brought in by local councils and local departments and is a way of utilising the space that is there. Does he agree that that is one method for addressing the issue of low-cost housing?

[John Penrose]

That is a very good example—a classic example—of the kind of thing we need to look at. Many British high streets are two storeys, or perhaps three storeys, tall. Not only are those upper storeys lightly used, and in some cases unused, but there are two or three further storeys of fresh air above them that could be developed into housing as well. The crucial point that was made yesterday in the White Paper, but has been more broadly accepted for years, is that the only way to bring down the overall cost of housing in this country is by increasing the supply. We have to make sure that more of this stuff is built and finding those right, convenient locations near social and physical infrastructure is crucial. I will expand on that point a little more in a minute, but the hon. Gentleman has touched on a particularly good example.

I was about to number the blessings of building up, not out and I shall now carry on doing so. First, it will attract much needed new investment to regenerate and save tired or rundown town and city centres, bringing fresh life, a broader mix of businesses and longer trading hours to high streets that—as the hon. Member for Strangford (Jim Shannon) mentioned—are suffering under the twin attack of out-of-town shopping centres and online retailers.

Secondly, building up, not out could help break the stranglehold of large house building firms over the number of new homes that are built. Those firms tend to focus on larger sites, whether greenfield or in towns, and rarely pick up smaller plots where an individual bungalow or two-storey shop could be redeveloped into four or even eight smart new apartments on the same site. By releasing lots of overlooked smaller urban plots we can create a fast-growing cadre of insurgent new developers, adding much needed new capacity and competition to the sector and its supply chains and speeding up the too comfortable, cosily slow rate at which the big firms currently convert their land banks and planning permissions into completed homes.

Thirdly, building up, not out will reduce urban sprawl by cutting the pressure from builders to concrete over green fields and green belts at the edges of towns and villages across the country. Given the strain and pressure on our green spaces, they should be our last building resort, not our first. Fourthly, it will cut commuting by allowing people to live closer to work, shops and other community hubs from libraries to GP surgeries. The reductions in emissions, and the effects on both our quality of life and the wider environment, will be very significant indeed.

Finally, building up, not out would release huge numbers of new urban house building sites to solve the housing shortage. As the Secretary of State said yesterday in his new White Paper, the only way to make homes more affordable for everybody is to build a lot more of them. Whether we are talking about renting or buying, the basic laws of price and demand mean that the prices will never stabilise, much less fall, unless the supply of housing increases dramatically.