VAT on Air Ambulance Fuel Payments

Matthew Offord Excerpts

Wednesday 11th July 2012 Commons Chamber

[Dr Matthew Offord (Hendon) (Con)]

It is a great pleasure to speak in this debate and I congratulate my hon. Friend the Member for Hexham (Guy Opperman) and the hon. Member for York Central (Hugh Bayley) on securing it. The hon. Member for Bethnal Green and Bow (Rushanara Ali) has already spoken about the London helicopter, which serves not only her constituency but mine and, indeed, the rest of London, so not all the comments I will make are about London’s air ambulance because I do not wish to replicate the fine things she has already said.

I want to describe for the Minister some of my experience of one of the UK’s air ambulance services. He is probably unaware that I grew up in Cornwall, which was the first county to have an air ambulance. Indeed, I have quite some experience with that air ambulance. There was not a great deal to do in Cornwall when I was young, so one of the things I did was surf, which led me to become a lifeguard, and on several occasions we needed to make use of the air ambulance.

Before the air ambulance service was established, the RAF had to become involved if someone needed to be airlifted—I look to my hon. Friend the Member for York Outer (Julian Sturdy), who talked about what would happen if there was no air ambulance. I remember one occasion when a Frenchman had fallen down a cliff and I could see that the back of his head was open. The RAF was called in from the royal naval air station at Culdrose and a helicopter came out to pick him up. That was the cost of not having the air ambulance, but it was a cost for the RAF, so someone did pick up the bill. The difference between the RAF helicopter and the air ambulance was what was on board.

On one occasion I had to call an air ambulance myself when I was a lifeguard in Crackington Haven. The chairman of my local Surf Life Saving club had managed somehow to cut his leg on his surf board. When we brought him to shore, we called the ambulance service, which sent the air ambulance. That necessitated that we clear the beach very quickly, which we did with the help of the Surf Life Saving club, so that the helicopter could come in. We loaded the chairman on board and got him safely away.

I had the foresight to pick up a loudhailer and ask all the tourists on the beach to put their hands in their pockets and fill up a bucket that I sent some of the nippers around with. That was a good way of raising money, and one of the points I made was that the people on the beach might one day need the air ambulance themselves, so I asked them to dig deep. However, I found having to do that quite demeaning. The air ambulance was an emergency service, but I was asking people who were visitors to Cornwall and who did not actually live there to pay for it. But they did the air ambulance very proud.

The air ambulance in Cornwall has continued. My hon. Friend the Member for Leeds North West (Greg Mulholland) spoke about an individual who raised money in his constituency. When I grew up in north Cornwall there was a lady called Pearl Cory who did the same. Pearl was well known for going around the pubs and clubs and selling her lottery tickets, which funded the air ambulance. Again, I look to the Minister and say that there are people such as Pearl who go out and do that kind of work, which is admirable. Pearl was well known in every pub for the work she did. She received an OBE for her service, for which I am grateful.

[Tracey Crouch]

As a Cornishman, my hon. Friend will understand the close links between the air ambulance service, RAF search and rescue and, of course, the RNLI, which has been mentioned many times. I think that we should take this opportunity to thank all the volunteers, particularly those in the RNLI—having grown up in Cornwall, he will know that, sadly, some lifeboat men have been lost over the years—for their great work and bravery.

[Dr Offord]

I certainly echo my hon. Friend’s comments, although I must correct her and say that I am not a Cornishman—I was born in Hampshire. I certainly acknowledge the work of the RNLI. As a keen yachtsman, I am always pleased that I do not have to seek their services, and hope I never will.

As a London MP, I know that air ambulance services are not valuable only in peripheral, rural counties such as Cumbria, Cornwall or Yorkshire; they are so important to my constituents and me in London because of what they can achieve. I mentioned the RAF helicopter that was manned by the pilot, the linesman and the navigator but had no medical equipment. The air ambulance in London not only has a trained paramedic, navigator and pilot, but a trauma doctor and an observer, who is often observing as preparation for being a trauma doctor.

The helicopter has qualified people and specialist equipment on board. As we know from accidents in our constituencies, the issue is not always about what the patient is suffering from, but about getting them medical assistance. Air ambulances can provide that quickly—the similarity between Cornwall and Hendon, for example, is that the air ambulance can be on site quickly. As my hon. Friend the Member for Chatham and Aylesford (Tracey Crouch) said, they can take the patient to the most qualified centre that they can find and the patient can get treatment that would not have been available if a road ambulance had taken them to the nearest hospital.

The Minister is many things, including a maritime MP. If, for example, the VAT exemption of the RNLI were taken away, how would the organisation feel? I appeal to the Minister to accept the review and put the air ambulances of London, Cornwall, Yorkshire and everywhere else on the same footing as the RNLI. That is not only the fair thing to do; it is the best thing to do for our constituents.

Hot Takeaway Food (VAT)

Matthew Offord Excerpts

Wednesday 23rd May 2012 Westminster Hall

[Dan Rogerson]

I entirely agree with the hon. Lady.

In conclusion, I wish to add a little extra plea for the Cornish pasty. My hon. Friend the Member for St Austell and Newquay was generous, and hands have been stretched across the river Tamar between Cornwall and England as people have spoken about their respective products that they value and support. In Cornwall, however, there is a feeling that the Government are taxing something that people might eat instead of a sandwich or some other cold product that they would find elsewhere. There is a cultural element to that. People love a pasty; it is what they grew up with and what their mums, grannies or aunties made at home. Everyone has a favourite shop to go to, and that is part of what it means to grow up in Cornwall. Furthermore, we are a very low-income part of the country.

[Mr Matthew Offord (Hendon) (Con)]

rose—

[Dan Rogerson]

I will happily give way to the hon. Gentleman who has experience of this issue.

[Mr Offord]

The hon. Gentleman is making a good speech. Does he agree that the pasty was originally created for miners going to work? Nowadays, people around the country who are not able to have a plated meal often have a pasty or another baked product as a substitute. Does the hon. Gentleman feel that this tax discriminates against those people as it may not allow them to have a proper nourishing meal at midday?

[Dan Rogerson]

The hon. Gentleman is absolutely right, and having been educated in Cornwall, he knows all about the importance of the pasty. As he said, the pasty was designed for taking down the mine and has a crust that can be left behind after being held with a dirty hand. It would have been baked hot, taken down the mine and consumed cold, as it was unlikely to still be hot by the time the miners got to it. Many other people will buy something hot from a bakery and eat it later in the day, which is different from the cold fish and chips that we have been hearing about.

To return to the Cornish perspective, the feeling is that there is a lack of recognition of a strong sense of identity and of Cornishness. To mention another visual aid, when the last runner with the Olympic flame left Cornwall and set off across the Tamar bridge, he held in his hands a Cornish flag that was sadly confiscated by the police who were running alongside. To many in Cornwall, such things send out a signal that English, Welsh or Scottish identity is fine, but we do not really want to know about Cornish identity. I know, however, that that is not the case in the Treasury, which understands the issue. As a Scot, my right hon. Friend the Chief Secretary to the Treasury understands that sense of Celtic identity, and I know that the Treasury will listen sympathetically. Along with my hon. Friend the Member for St Austell and Newquay, and other hon. Members, I urge all Treasury Ministers to look at the sensible alternative that has been proposed. It has a clear cut-off point and is enforceable, and I hope that the Treasury will respond positively to the consultation.

--- Later in debate ---

[Nigel Mills (Amber Valley) (Con)]

It is a pleasure to speak under your chairmanship, Mr Scott. I join in the congratulations to my hon. Friend the Member for St Austell and Newquay (Stephen Gilbert) on securing the debate. Those of us with a history in taxation wish that every new tax measure could be the subject of an hour and a half of detailed debate. I suspect that we would make much better law if that were the case.

This is an interesting situation. I think that we all agree that tackling tax avoidance and sorting out anomalies is something that the Government should do, but when they come forward with proposals, there is a huge outcry about them, because trying to sort out some of those anomalies is much harder than people think. The reason why this anomaly has lasted for nearly 30 years is that it is incredibly hard to sort out. I jokingly wonder whether, if the Government had called this a fat tax, it would have received a lot more support, but I am not sure that that is a road I would like to encourage them to go down.

Like many other hon. Members, I am concerned about the impact on high street bakeries, especially the small local ones that are a real attraction on the high street. I am talking about those shops on the high street that drag people in to shop there because they like the better-quality product, the choice and the service that they get, compared with the standard, bland products that they might think they get from a supermarket.

I can list many bakeries in my constituency. There is Luke Evans, which has a factory shop that has been in existence for 200 years. There is the Birds chain of bakeries, which I suspect the hon. Member for Bassetlaw (John Mann) will know well; it is a big chain in the area. It has just opened a new shop on Heanor high street, and given that Heanor is a high street with some challenges, anyone opening a new or revamped shop there is very welcome.

I have real sympathy for such businesses. Their shops sell a wide range of products. Pasties and sausage rolls are a sizeable part of that range, although nowhere near the majority of their trade. They are one very useful way of getting income and dragging customers in. However, they are clearly craft bakeries, selling freshly baked products. That is how they make their money. They are not trying to be a disguised takeaway or to flout the law. They are trying to run a perfectly sensible, viable and valuable business of long standing that we desperately want to support in our high street.

[Mr Offord]

My hon. Friend is making an eloquent speech. Does he agree with my constituent Jonathan Grodzinski who runs Grodzinski’s bakeries, a business that has been in his family for well over 120 years, who says that the difference between his products and supermarket foods is the quality, which my hon. Friend has already mentioned? Mr Grodzinski’s concern is that customers will decide that they would rather buy cold food and that that will mean that they are buying food that is less than fresh, compared with when it first comes out of the oven.

[Nigel Mills]

Absolutely. I thank my hon. Friend for the intervention. The last thing that we want to do is to encourage people to buy horrible cheap food with only processed ingredients. That is much less healthy for us than buying proper quality stuff. I therefore have some sympathy for my hon. Friend the Minister in his predicament. It would be useful if he could set out what has tipped the Treasury over the edge into making the change. Was it a case of having to get the train home and thinking, “I’m a bit hungry. It’s been a long day in the Treasury. I can’t face the Chancellor’s bowl of jelly. I’ll have something from the station on my way. If I go to McDonald’s and buy a burger, I pay VAT, but if I go to that nice-looking pasty stand, which seems to be selling only hot pasties, for some reason there is no VAT”? Is that the contrast that tipped him over the edge or is it the fact that supermarkets are selling things that clearly should be VATable but they are manipulating their way around that? Is that what tipped the Treasury over the edge? It would be interesting to know.

Independent Financial Advisers (Regulation)

Matthew Offord Excerpts

Monday 29th November 2010 Commons Chamber

[Mr Matthew Offord (Hendon) (Con)]

The FSA has been held by some observers to be weak and inactive in allowing irresponsible banking to precipitate the credit crunch in 2007, which, as many Members will know, involved the shrinking of the UK housing market, increased unemployment, the public acquisition of Northern Rock, and the takeover of HBOS by Lloyds TSB. I remain fundamentally concerned that we have allowed the same organisation to undertake a review of independent financial advisers in this country.

As you are no doubt aware, Mr Speaker, the FSA has devoted massive resources to the RDR over the last three years, during which time it had taken its eye off the ball so far as the banks were concerned. Ironically, the FSA’s light-touch regulation of the banks, which are, as many Members have said, responsible for the vast bulk of consumer complaints, went on simultaneously with the massive intensification in regulation of financial advisers, who cause hardly any complaints to the Financial Ombudsman Service.

That all came at a time when the mortgage market virtually ceased to exist for financial adviser firms through a combination of tighter lending criteria and positively anti-competitive practices such as dual pricing by lenders. As a result, many financial advisers and mortgage advisers have gone out of business and many more will face the same fate in the next few years.

The sector employs thousands of people, such as my constituent David Barnett who is listening not so far away, and advises millions of others, such as me. Many people will struggle in the years of austerity to come, and those people—our electors—need us to help them to balance their budgets and avert financial disaster when the worst happens. They are looking to us to do that tonight. We must also look towards the financial advisers, many of whom are part of the creation of small and medium-sized economies in rural areas and in some suburban areas, such as my constituency.

The RDR is a long and complex affair, and I shall not repeat the details now. My understanding from my constituents is that it boils down to two main themes—remuneration and qualifications. As it stands, it looks as though the entire remuneration system will be changed to one that will cause confusion, confrontation and a loss of service to the mass market. Qualification requirements are being ramped up and thousands of advisers are under pressure to gain their diplomas before 31 December next year. At the very time when business conditions have never been more difficult, advisers are being forced to spend hundreds of hours earning diploma points when they could be earning a living for their families.

The latest directive from the FSA is a requirement that whenever a life assurance policy is sold financial advisers must illustrate to the client the total premium cost over the entire policy term. The total cost of a life assurance policy is irrelevant—the only costs relevant in the purchase of life cover are that the premiums for the contract recommended are demonstrably fair and competitive for the type and extent of cover being bought when it is bought in a free market and that they consider the potential cost to the client and the client’s family of not having the cover if he or she suffers disabling ill health or death. Requiring an illustration of the total cost over a period of 20 to 25 years simply creates an off-putting and distorted impression to the consumer. Financial advisers are being asked to spell out the total theoretical cost of life cover and thereby to accentuate its negative aspects. A simile for this would be vehicle manufacturers giving prospective purchasers the likely finance, running and maintenance costs of the vehicle they are selling over its projected life. The FSA has gone too far. In fact, it went too far a long time ago, although it should certainly ensure that advisers are competent and honest.

[Richard Graham (Gloucester) (Con)]

Does my hon. Friend agree with the former chief ombudsman that the idea that complaints will go down after the RDR is wishful thinking? Does he agree with the head of HBOS that the main beneficiaries of RDR will be the bank assurers? We are looking at the law of unintended consequences.

[Mr Offord]

I certainly do agree with my hon. Friend and many others who have made the same point. The main beneficiaries will be the big banks, including many of those that got us into the difficult situation that the coalition Government are having to address.

I should like the FSA to keep its nose out of normal commercial transactions and to leave business to businessmen such as the many constituents who have been mentioned tonight. If the FSA should be giving the public any message, it should be, “Protection is valuable and essential, so you should see an IFA and get some.” Instead it gives out the message, “Look how much you’ll spend over the life of a policy,” without addressing the benefits of that policy.

Independent financial advisers would like to be left to get on with their jobs, employ people, pay their taxes and look after their clients. They create wealth, look after our voters and, unlike the massive, over-complicated, expensive and unnecessary changes proposed by the FSA in the RDR, their requests are very small, simple, cost-free and necessary. They are just asking the Government to direct the FSA to revise the outcome of the RDR so that there is no change whatever to the current rules on remuneration and disclosure and to move the deadline for diploma qualification to 1 January 2016. I ask the Minister to ensure the same.

Budget Resolutions and Economic Situation

Matthew Offord Excerpts

Thursday 24th June 2010 Commons Chamber

[Mr Matthew Offord (Hendon) (Con)]

I pay tribute to the speech made by my hon. Friend the Member for Staffordshire Moorlands (Karen Bradley). I know her seat very well and I am tremendously proud that she is in the House. It was interesting to see the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown) in the Chamber earlier, but Conservative Members would have liked him to stay for the whole of today’s debate.

It is a great honour to speak in my first debate as the newly elected Member of Parliament for Hendon. Mr Speaker will know my seat well. He grew up in the neighbouring constituency, so he will know of many of my constituency’s attributes. Hendon is famous for many reasons, including the Metropolitan police training college, the Medical Research Institute, the British Library newspaper depositary, Brent Cross shopping centre and the RAF museum, to name but a few. Many people are migrating to Hendon for some of its other attractions, such as our lower than average crime rate, our good schools and our green spaces, all of which are within easy access of central London, so I urge hon. Members to travel on Thameslink or the Northern line to come and visit. I am sure that many Members, certainly those representing northern constituencies, have already visited Hendon, especially if they travel back to their constituencies at the end of the week by car along the A5, A1, A406 or even the M1.

My constituency is also known for many of its former inhabitants or those who were schooled in the area, including Oliver Postgate, the creator of Bagpuss and the Clangers; Garbo, the Spanish spy who fed the Germans false intelligence about the D-day landings 66 years ago; William Wilberforce, a former Member of Parliament and slave trade abolitionist; and Sir Stamford Raffles, the founder of Singapore. More recent Hendon characters include Henry Cooper, Denis Compton, Joe Beevers and even Lord Mandelson, who attended school in the area. That shows us that my constituency has attracted people who have contributed to a range of activities in our society and national life. It continues to do so, and I hope, as its new MP, that I will make my mark for the people of my constituency.

I pay tribute to the work of my predecessor, Andrew Dismore. He worked hard on many issues, and I intend to continue some of that work for different sections of our community. He set the bar high, but I intend to exceed it. He also prided himself on having made the longest speech in the Chamber in the past decade, but hon. Members will be pleased to hear that I do not wish to emulate that.

The constituency of Hendon is marked by extreme religious and cultural diversity, which is mirrored economically in the contrast between the affluent Hale, Hendon, Mill Hill and Edgware wards and the housing estates of Burnt Oak and Grahame Park, the Perryfields estate and Stonegrove. I am pleased to confirm, however, that the London borough of Barnet has already started work to regenerate the Stonegrove and Grahame Park estates.

One of the most tragic comments I heard during my campaign to be elected to Parliament came from a mother on the Grahame Park estate, who said that too many foreigners were coming into this country and taking social housing away, and asked how her children could have any chance of taking over the tenancy of their home. That illustrates the lack of aspiration that many people have today. I contrast her attitude with that of parents in other parts of the constituency who spoke about their children going to university, buying their first home and eventually getting married. We live in one of the most prosperous cities in the western world, but there remain yawning chasms between the aspirations of the people I represent.

In that respect, my constituency is probably a microcosm of London. In turn, London represents part of the affluent south that stands in total contrast to the other places where I have lived, such as Barnsley, Carlisle, Bodmin and Leek. The difference for those places is in how they are viewed by us, as law-makers. Without doubt there is an urban-rural dichotomy in this country, which even today is reflected in our politics. That was reinforced by the previous Government when they established the Urban Task Force and the Rural Task Force. However, when more than 80% of us live in areas, such as my constituency, that can be classified as suburban, it is anathema that the suburbs play a secondary role in regeneration and urban policy.

Given the importance of cities to Britain’s future economic prosperity, I urge the Government to recognise that suburban constituencies must play a key role in their policies for urban regeneration. Many commentators share my view, recognising that suburbs are the forgotten dimension in our urban policies. There are many initiatives that could overcome that issue. In the past, the former Member for Sedgefield spoke about “Education, education, education”, but I think that that was too narrow a focus. I would prefer us to instil in our people a sense of “Aspiration, aspiration, aspiration”, which will continue with them throughout their adult lives. But we cannot do that on a national scale. We need to allow local people to implement the right social and economic priorities for themselves on a suburban scale.

When I was deputy leader of Barnet council, I was proud to introduce a scheme whereby we employed our looked-after children, in the same way that any parent would employ one of their children in the family business. It was not a guarantee of employment, but an opportunity of aspiration that could be taken up—one which, I am pleased to say, several young people did take up and so improved their life chances by entering the local economy. Barnet council also led in the promotion of what became known as the Barnet bond—a financial scheme to raise more than £300 million to be invested in schools, transport and other local services that will be needed to provide the infrastructure to cope with the housing growth expected over the next decade in our suburban constituency. If Barnet does not achieve that—if it does not raise the aspirations of the area and the people who live within it—community life will be on a downward trajectory.

Today, I have heard some Labour Members say that Government Members dislike the public sector. I assure them that that is not the case. In fact, we believe that the public sector has a part to play but that there are others who are able to contribute better than the public sector. Unlike the previous Government, we do not believe that throwing money at problems is the way to create a better economy and better living conditions for our people. We believe that there are many other organisations—particularly in the third sector—that are better at deciding what local people’s objectives are and introducing action to achieve them.

My constituency has many organisations that provide benefits for civic and local life—my Seahorse sailing club on the Welsh harp; the Community Security Trust, which plays a great role in our Jewish community; the Mill Hill Preservation Society and the Larches Trust, to name but a few. Particularly when we talk about green energy and climate change, we must create the aspiration for those organisations and new ones to emerge and allow them to play their part. We must not let the budget deficit become an excuse for inertia.

Under the previous Government there was an increase in violent crime. More than 40 years ago Robert Kennedy told an audience that there is another kind of violence besides physical violence—one that is slower, but just as deadly and just as destructive—and that is the violence of institutions, particularly when they become indifferent, show inaction and produce slow decay. That is, in essence, a neglect of aspirations by politicians and policy makers. Because we do not have any money, we must look at alternative ways of reducing our deficit and improving our country.

Because of the massive economic deficit we must win the argument, particularly Conservative Members and with our colleagues the Liberal Democrats, that it is the opportunity of aspiration that will create private sector employment and pull us out of the state that we are in. It will not happen as a result of some of the objectives proposed by Opposition Members. We need to recognise that different communities work in different ways, be they rural, urban or suburban, and we have to give our constituents the ways and means to address the problems that they face and to introduce the right conditions for themselves. As the Member of Parliament for Hendon, I intend to play my part to achieve that.

Finally, I wish to thank the people of Hendon who gave me, and the Conservative party, their respect and trust in allowing me to come to this place.