UK Sovereign Wealth Fund

Debate between Jim Shannon and Ian Blackford

Wednesday 14th December 2016 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is always nice to be called to speak, Mr Owen. I congratulate the hon. Member for Weston-super-Mare (John Penrose) on setting the scene on a subject that has to be discussed and given some thought in this House. Those of us here, and those who unfortunately have not been able to make it, will have ideas about how to do this. This is the first stage of a discussion that we should, perhaps, have had many years ago. At least we are starting the process; let us start it with this discussion. I look forward to the shadow Minister’s contribution, other Members’ contributions and, in particular, the Minister’s response on how to take this forward.

We are considering the proposals put on paper by the hon. Member for Weston-super-Mare in his report, “The Great Rebalancing: A sovereign wealth fund to make the UK’s economy the strongest in the G20”. That is a very grand title, but it encapsulates his thoughts on the subject—and, perhaps, our thoughts as well. An enormous level of thought and groundwork went into these proposals. I congratulate the hon. Gentleman on the paper, which we read—not just the background notes—back home, and it gave us food for thought. I am astonished that he found the time to do so much work on it. Anyone who takes the time to read the background notes will understand the time that he has put into writing this paper, which is worthy of discussion in the House, and in Westminster Hall today.

I was raised to save for a rainy day, as many in my generation were—and that is not just because I am an Ulster Scot and we think that every pound is a prisoner. I was taught to save for a rainy day at an early age by my mother and father, and it has not done me any harm over the years. I am now married, of course, and the money is never my own anymore; it belongs to her, but that is by the bye. I do not wish to dumb down in any way the hard work of the hon. Gentleman, but to me this is like the Government saving for a rainy day, as I said to him when discussing the debate beforehand. The hon. Member for Ross, Skye and Lochaber (Ian Blackford), who spoke before me, is a strong advocate for the WASPI—Women Against State Pension Inequality—women and their pensions, and I am glad he is here. Before I came in, I thought, “What if we had had this fund 20 years ago? We would have been able to look after the WASPI women and make sure their pensions were covered.” We did not, but at least we have chance to look at this issue now.

[Ian Blackford]

As always, the hon. Gentleman makes a number of pertinent remarks. There is a view that we do not have the resources to pay the appropriate pensions to people, but we should keep an eye on the Government Actuary’s Department, which has argued—I am keen that people should not get away from this—that the national insurance fund will be in surplus to the tune of about £30 billion by 2016-17. The resources are there to give the women what they are due, and over the next 20 or 30 years, pensions will remain affordable.

[Jim Shannon]

I thank the hon. Gentleman for those figures. I was not aware of them, but if that money is available, perhaps we are in a position to start the fund today with some of those resources.

I am sure that, like me, many hon. Members, including the hon. Gentleman, will know of 63-year-old women in their constituency who still have to work as their pension is unavailable. Those women are wishing that in the 1980s, at the time of the North sea oil find, which we have heard many comments about, the Government had decided to invest in a rainy day fund, which could have helped the pension pot. For that reason, the sovereign wealth fund must be considered seriously by the Government. That is why this matter is worthy of debate.

This issue is not cut and dried, by any means. There is talk of the Government’s shale fund being similar to this plan, as the hon. Member for Weston-super-Mare mentioned, but this is not the day to debate the pluses and minuses of fracking. A lot of hard work would need to be carried out before the fund saw any profit, but many people are already making claims about the potential for shale oil, if that comes through—and I suspect that, at some time, it will. We must think about what can be done for the future benefit of all people in the UK. Today’s austerity is a reality for us all. We have to be honest in this House about moneys and finances.

Energy Network Charges

Debate between Jim Shannon and Ian Blackford

Tuesday 5th July 2016 Westminster Hall

[Ian Blackford]

To recap on what I said at the beginning, we are talking about fairness and ensuring that people are treated in the same way throughout the United Kingdom. I quoted a statement made by the Minister at Christmas time last year:

“It is not right that people face higher electricity costs just because of where they live”.

I commend her for that statement, and I urge her, when she gets up to speak this afternoon, to tell us that she will take the necessary action to make sure that is brought into reality. We do not have a universal service today; we must do so. Why are highlanders and islanders being penalised? Fuel poverty: delivered to Scotland from Westminster. The Government have a responsibility, and the power, to do something about that.

I have submitted a number of questions to the Minister about the continued existence of 14 regional electricity markets in the United Kingdom. Here is one response:

“Electricity distribution network charges vary by region and reflect the costs of running the network in that area and the number of consumers that those costs are spread over. Moving away from this ‘cost-reflective’ approach would weaken the local accountability of the network operator in ensuring expenditure is fully justified, in turn weakening downward pressures on network costs overall.

In addition, a national price for electricity distribution would mean lower network charges in some areas, but increases in others.”

Where is the evidence for a detrimental impact on overall network costs? That is simply a red herring. As for the comment about lower costs for some and higher costs for others, the whole argument is about fairness. Somebody living in Skye should face the same network costs as somebody living in Southend. Anything else flies in the face of the statement by the Minister that people should not pay higher costs because of where they live. Let us make her statement a reality today, because those warm words from the Minister are meaningless unless we take action on a universal market. She talks about increases in some areas as a result of a universal market, but that is fairness—we all pay the same network costs. I prod the Minister to live up to her words: to take action today and to be seen as delivering fairness throughout the United Kingdom.

In Scotland, in our independence referendum, we were told that we were “Better Together”—

[Jim Shannon (Strangford) (DUP)]

So you are.

[Ian Blackford]

I have immense admiration for the hon. Gentleman, as he knows, but where is the “Better Together” in this? As I have already said, consumers in the highlands are paying 84% more for their transmission charges than someone living in London. Better together for whom? Not for us.

While I am on the topic, we were also told that our European future was secure if we remained in the UK—Scotland in Europe, and part of a wider European energy market. Well, we know where we stand now. The Minister wants to take us out of Europe with the rest of the UK. If she secures her ambition to become Prime Minister, I hope that she recognises the sovereignty of the Scottish people, who voted to remain in Europe.

Social Security (Equality)

Debate between Jim Shannon and Ian Blackford

Tuesday 26th April 2016 Westminster Hall

[Ian Blackford (Ross, Skye and Lochaber) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I thank the hon. Member for City of Chester (Christian Matheson) for securing this important debate and congratulate him on having done so. I listened with a sense of admiration to the dignified way he made his case this afternoon. I know that he is a son of An t-Eilean Sgitheanach—for the non-Gaelic speakers, that means a son of the isle of Skye—and he very much conducts himself in the manner of a highland and island gentleman, if I can put it that way.

The hon. Gentleman discussed the use of taxation to create a more equal society, which is something with which the Scottish National party would very much agree. He asked the Minister whether he agrees; I must say that the evidence from the Government is that they certainly do not believe in the kind of things many of us do. My hon. Friend the Member for Glasgow Central (Alison Thewliss) has been fastidious in highlighting the rape clause. I think she did so on Budget day last year when it came up, and I congratulate her on how she has pursued that case. She also addressed the issue of support for all children.

The hon. Member for Strangford (Jim Shannon) spoke passionately about the failings of ESA and PIP and the percentage of people who have won their appeal. There are real questions for the Minister to answer there.

[Jim Shannon]

If I may make one quick point, use of food banks is up 50% in Northern Ireland. We cannot ignore that fact. Disabled people, who need money the most, are using food banks more than ever. Why is that happening?

[Ian Blackford]

I thank the hon. Gentleman for that intervention and agree wholeheartedly with what he said. The Government must address not only the issue of those who are on benefits using food banks, but the fact that those in work are having to rely on them as well.

As the hon. Member for City of Chester said, it is noteworthy that the Resolution Foundation said last night that inequality in the UK has been falling recently but is projected to rise over the Parliament. That is a direct consequence of the Government’s policies. It is little wonder that the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith) said, in the letter he sent to the Prime Minister to resign as Secretary of State for Work and Pensions:

“I hope as the government goes forward you can look again…at the balance of the cuts you have insisted upon and wonder if enough has been done to ensure ‘we are all in this together’.”

That is exactly the point. Social security should lift people out of poverty and give the disadvantaged equal opportunities. That is what the Opposition are asking for. Instead, the Government have created a system that breeds inequality and institutionalises unfairness. The relentless attacks on sick and disabled people show how callous the Tories have become. As we say in Scotland, we are fair scunnered at the policies of this Government.

[Jim Shannon]

We use the same words in Northern Ireland.

[Ian Blackford]

I am glad that my friends in Northern Ireland use the same words. We use other words as well.

Families with disabled people are more likely to be in receipt of state benefits than families with no disabled people. In 2013-14, 83% of families in the UK with at least one disabled adult and no disabled children were in receipt of state support, and 38% claimed an income-related benefit. Almost 75% of families with a disabled child and no disabled adults received state support, and 37% received an income-related benefit. Some 46% of families with no disabled adults or children received state support, and 12% received an income-related benefit. We can see exactly how those who are looking after either disabled children or disabled adults rely on the state’s support; it is necessary.

It is little wonder that there is widespread fear among those in the disabled community about their vulnerability to an assault on social security, which often provides recipients with a level of dignity that the Government seem to want to undermine. The arbitrary £30-a-week cut to ESA is a regressive measure that is part of this Government’s continued attack on disabled people. The Government continue to peddle the line that such cuts will incentivise disabled people to work. That is a cruel and completely misjudged justification. A review conducted by the House of Lords in December 2015 found no evidence that such cuts will incentivise work, and surveys by the Disability News Service and Mencap show that cuts will force sick people backwards and further away from getting back to work. Social security should lift people out of poverty and give the disadvantaged equal opportunities. Instead, we are breeding inequality and unfairness.

The Resolution Foundation recently called universal credit

“a post-code lottery on steroids”

because it has continued to be cut while similar cuts to tax credits have been scrapped. Universal credit will now be less generous than the benefit that it replaces. Where someone is in the country will determine whether they are eligible for universal credit or the existing system.

As my hon. Friend the Member for Glasgow Central has said, women have been bearing the brunt of Tory welfare cuts, as they are twice as likely as men to rely on income from social security payments. Since 2010, £26 billion has been taken away from benefits, tax credits, pay and pensions, 85% of which has been taken from women’s incomes. That disgraces all of us.

Because of the time constraints, I will cut my remarks short, but I want to refer to the different agenda that we have in Scotland. The Scottish National party has pledged to restore housing benefits to 18 to 21-year-olds, giving back to Scotland’s young people what the Tories have taken away. That will protect 2,000 unemployed single people under 21. The SNP is also committed to treating disabled people with dignity and respect. Responsibility for disability benefits will be devolved to Scotland in 2018, and the SNP has pledged to chart a different course. The SNP’s compact with disabled people will treat everyone with fairness, respect and dignity. We will abolish the bedroom tax and increase carer’s allowance. We will continue the £52 million independent living fund, which was scrapped by the Tories. We will support disabled people into employment with a £20 million fund. We will maintain disability benefits when they are devolved to Scotland, not cut them. That is the difference that a caring Government who are on the side of the people will make. The Government in London must go back to the drawing board on social security to protect the disadvantaged and build a system based on equality, dignity and respect—all currently sadly lacking.