GKN Aerospace, Kings Norton
Debate between Jim Shannon and Richard Burden(5 years ago)
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Richard Burden (Birmingham, Northfield) (Lab)
I am grateful for this opportunity to raise the case of GKN Aerospace in Kings Norton. It is a year to the day since the Business Secretary made a statement to the House to tell us that, while he would not intervene to block Melrose Industries’ hostile takeover bid for GKN last year, we could all take comfort in the legally binding undertakings that the company had given him about the future. Indeed, at the time, Melrose was falling over itself to assure everyone of its commitment to manufacturing in the UK. For example, on 13 March 2018, Melrose’s chief executive Simon Peckham wrote to my hon. Friend the Member for Leeds West (Rachel Reeves), the Chair of the Business, Energy and Industrial Strategy Committee, setting out particularly clearly what the company asked us to believe about its intentions. He said that the company’s commitments included:
“Returning GKN to be a British manufacturing powerhouse—competitive on the global stage. Committed to innovation…Investing in skills, R&D and productivity to support the Industrial Strategy…Working with suppliers and customers to boost Britain’s industrial base and the wider economy.”
On 5 April, just over a year since Mr Peckham wrote that letter, workers at the GKN Aerospace plant at Kings Norton in my constituency were told what these assurances meant for them when GKN’s management announced that the plant is to be run down over the next two years and closed altogether in 2021, with the loss of over 170 jobs. The company says that the work undertaken by the factory will be transferred to
“other GKN Aerospace sites or low cost areas”.
By “low cost areas” we can safely assume that the company means overseas.
Jim Shannon (Strangford) (DUP)
Does the hon. Gentleman agree that this breach of faith cannot go unchallenged by this House or by the Minister lest every other big business that reaps the benefits of Government contracts, Government funding and Government subsidy decides that it too can go against its word and move its work to Mexico, Morocco or elsewhere? Shareholders can enjoy the benefits while our own hard-working men and women—the hon. Gentleman is a friend and a hard-working MP—wonder how to keep their homes and feed their families.
Richard Burden
The hon. Gentleman is quite right, and I thank him for his kind words. This breach of faith needs to be challenged, and I hope that the Minister will assure us that it is not only Opposition Back Benchers who are challenging the decision and that the Government will do so as well.
Palestinian Education System
Debate between Jim Shannon and Richard Burden(5 years, 10 months ago)
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Farmers Markets
Debate between Jim Shannon and Richard Burden(10 years, 2 months ago)
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Richard Burden
As my right hon. Friend the Member for Barking (Margaret Hodge) has repeatedly argued, Her Majesty’s Revenue and Customs is not tackling this problem seriously enough and
“pursues tax owed by the smaller businesses but seems to lose its nerve when it comes to mounting prosecutions against multinational corporations.”
Further, at the same time as the farmers markets had their exemption removed, the Government decided to reduce the level of corporation tax on profits from overseas financing inside multinational companies to just 5%, which could actually be making tax avoidance easier for such firms. Is this not just yet another example of the Government’s skewed priorities when it comes to tackling tax evasion? It is important to address tax avoidance, but is it really the priority to address the issue of the tax of community interest companies that accrue small surpluses and want to invest them back in the local community? I hope that, in the light of these concerns and a rapidly increasing tax gap, the Government are actively looking at HMRC’s priorities and methods.
I also want to suggest how the Government could act in the interests of the small CICs that provide precisely the kind of local services and community support that the Prime Minister seemingly wanted to encourage when he was talking about the big society vision not so many years ago. Will the Minister consider the following options? Will he consider reviewing what is eligible for tax relief for community interest companies? Might he introduce some flexibility for small community interest companies, in terms of the surpluses they can accrue before having to pay corporation tax? Will he look into enabling CICs to accrue profits over more than a single financial year, as that might help? Might he also consider extending the corporation tax cut that the Government have given for overseas financing to multinationals to small community interest companies?
I hope the Minister will look into this issue seriously. Tax is always a complicated issue. I look forward to hearing his response because it is clear that it is not only tax avoidance and evasion which are the problem; the way in which tax collection and administration are managed and targeted needs to change. I hope the Government, who seem able to reform corporation tax to meet the needs of big business, will also consider what changes are needed to support small community interest companies that are providing vital local support.
The donations made by the farmers market I have been talking about are increasingly important in the context of unprecedented and devastating cuts to local government and services. Only yesterday Birmingham set its budget for the coming year. It has already had to save £375 million, and in the next financial year that will go up to £461 million. If the Prime Minister was serious when he said just a few years ago that he wanted to give people
“more power and control to improve their lives and communities”,
is it not right that he should be giving some practical support to CICs such as Kings Norton farmers market, which do precisely that?
In the light of the concerns I have raised, I hope that the Treasury will think seriously about how it uses fiscal policy to empower companies such as my local farmers market to act in the community interest.
Jim Shannon (Strangford) (DUP)
The hon. Gentleman has outlined the case for local farmers markets and the benefits that accrue to the community through funding and assisting projects. That is an example of how farmers markets support the big society, which, as he said, the Government have decided to promote. Does he agree the Minister should look at these benefits for the community?
Richard Burden
The hon. Gentleman makes an excellent point. We are dealing with a decision about priorities. This is not about the principle of whether or not people should pay tax—of course they should. It is not about whether tax avoidance should be clamped down on—of course it should. It is about priorities, and something is going radically wrong if the priority for HMRC is to mess up the surpluses accrued by institutions such as Kings Norton farmers market, which benefit the local community, while, apparently, finding it much easier to aid tax cuts for much bigger institutions. The priorities are wrong. I am sure the Minister understands what I am saying and I look forward to his response.
Palestinian State (UN Membership)
Debate between Jim Shannon and Richard Burden(12 years, 8 months ago)
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Richard Burden
Israel does appear to have the problem of not being able to decide exactly where its own borders are, but the international community is very clear about where they are, as are successive United Nations resolutions: the green line.
What the early-day motion simply says, and what I and the Palestinians are saying, is that the same border should apply on both sides, for a Palestinian state and an Israeli state. When the Minister responds, will he give the UK Government’s view on that? Does he see recognition of a Palestinian state as an obstacle to a negotiated settlement, and if so, what impediments has he identified, and why does he believe that they would hinder such a settlement? Why, if they are impediments to the recognition of Palestine, are they not seen to be impediments to the recognition of Israel that we all accept? If the Minister does not agree that recognition is an obstacle, does he agree that recognising Palestine at the United Nations would not prevent the future negotiations, which we all agree are needed to reach a lasting settlement, from taking place?
Jim Shannon (Strangford) (DUP)
I declare an interest as a member of Friends of Israel. Does the hon. Member agree that Palestine should also recognise Israel in every sense of the word, and that part of that recognition should be that terrorist attacks coming from Palestinian lands towards Israel should cease? Does he agree that that would be a gesture that should be done as well?
Richard Burden
I and, as far as I know, everyone in this room is on record as calling on both sides to cease violence against the other. If the hon. Member is active in Friends of Israel he would perhaps already be aware that Israel is recognised: Palestine recognised Israel many years ago. Israel is a member of the United Nations and no one has called for it to be removed, or for its derecognition.