Rural Communities

Roger Williams Excerpts

Tuesday 17th April 2012 Westminster Hall

[Roger Williams (Brecon and Radnorshire) (LD)]

It is a great pleasure to speak under your chairmanship, Mr Hood. I congratulate the hon. Member for Carmarthen West and South Pembrokeshire (Simon Hart) on securing the debate. I have fond memories of his constituency. Back in 1999, I stood in the first Assembly elections and managed to come fifth. The good people of his constituency were not ready for me then, but I enjoyed the experience and the fantastic countryside there.

The hon. Member for Carmarthen West and South Pembrokeshire has made the topic of this conversation deliberately wide, and Members have taken advantage of that. I want to mention one or two issues that perhaps have not been covered. First, I congratulate the Department for Environment, Food and Rural Affairs on its determined efforts to eradicate bovine TB in this country, which I know are appreciated by the farming people here. They do not bear comparison, however, with what is happening in Wales, where the farmers are almost despairing about what can be done to alleviate their problems.

I want to talk a little about financial services in rural areas. I have recently had the honour of introducing two debates in this Chamber on the closure of banks in rural areas, which is an important issue because rural communities want to attract not only tourists but businesses, and without banking facilities that can be difficult. I think that not just in rural areas or in Wales but more widely, the relationship between small businesses and banks has never been at a lower ebb.

[Mr Mark Williams]

Will my hon. Friend also reflect on the banks’ usual retort when asked about the diminishing number of branches, which is that online banking is a growing occurrence? In some parts of our constituencies that is not a reality because we have no broadband at all, let alone the superfast type.

[Roger Williams]

I absolutely agree with my hon. Friend, and it is not only the absence of broadband. Sometimes, older people do not have the facility or the aptitude to take advantage of online banking, so we still need the face-to-face presence and advice that bank customers greatly value.

The issue also goes a little further. Today, I was sad to see that the number of complaints about banks made by small businesses to the Financial Ombudsman Service has gone up by 10% in the past year. It is only very small businesses that can use the ombudsman facility, so we have a number of such businesses being badly treated by their banks. For instance, not only are overdraft or loan requests turned down but the terms and conditions of such facilities are changed midway through. The Government once again need to sit down with the banks and say, “If we are all in this together and we are going for growth, you have to play your part.”

I think that the Government sometimes do not really understand the structure of business in this country. Whenever they trumpet support for business they talk about reducing corporation tax. That is much valued, but out of the nearly 4 million businesses in England only one third are incorporated, so the other two thirds will not benefit from the reduction in the tax, and the £100,000 reduction in capital allowances will particularly weigh on businesses that pay their tax through self-assessment—sole traders and partners.

On the role of independent filling stations, one operator in Sennybridge in my constituency has brought me evidence that the wholesale operation of the petrol supply chain is concentrated in a small number of hands, which could lead to difficulties with competition and access. He has sent information to the Office of Fair Trading, and I will send a copy to the Minister. This is a dangerous situation. Many of our independent filling stations have already closed, and if the process continues, a lot more could do so.

I am looking at the time, Mr Hood. The clock says that I have spoken for 11 minutes already, so I am not sure how much longer I have.

[Mr Jim Hood (in the Chair)]

You have one minute left.

[Roger Williams]

I commend the legislation introduced in England by the Government on small businesses’ right to buy. I point to two examples in my constituency. The Shoemakers’ Arms, a pub in Pentre Bach that was closed, has been taken over by the local community and is now flourishing. The community in Llanbadarn Fynydd have done the same with their village shop and filling station. Those are examples not of short-termism but of sustained success. They show what communities can do if given the opportunity.

I promised to mention the traditional makers of cider in my speech, so I will do so in the last 10 seconds. For goodness’ sake, do not let us push them out of business in trying to deal with alcohol abuse in our society.