Co-operatives

Debate between Steve Baker and Gareth Thomas

Thursday 14th July 2016 Westminster Hall

[Mr Gareth Thomas (Harrow West) (Lab/Co-op)]

It is a pleasure to take part in this debate and I join my hon. Friend the Member for Redcar (Anna Turley) and other hon. Members in praising my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty) on securing this Back-Bench debate. He and my hon. Friends the Members for Liverpool, Wavertree (Luciana Berger), for Neath (Christina Rees) and for Redcar ranged strategically in their contributions across the co-op sector. I do not intend to do that, but hope to pick out one or two particular issues to press the Minister on.

I welcome the contribution of the hon. Member for Wycombe (Mr Baker). I am not sure I would have travelled the same path to get to the enthusiasm for co-operatives and mutuals that he described, but I recognise that his commitment to the sector is genuine. I will not say any more—I do not want to damage his prospects for advancement today—but it is good to have a Conservative speaking up for co-operatives as well. Normally, it is left to Labour Members, so it is a welcome change.

One area in which the hon. Gentleman and I have co-operated is advocating for co-operative change to the way that some of our major public service institutions are currently governed. I wonder if I might encourage the Minister and shadow Minister to take an open-minded view of the proposals to turn Channel 4 and the BBC into mutuals. What do I mean by that? I mean allowing those who watch Channel 4 and those who pay the BBC licence fee to become members and therefore to have a vote on who should sit on the board of those bodies—putting the public back into two critical public services.

I also hope that, in time, we will see the new Mayor of London seek to do the same with Transport for London, giving commuters the chance to vote on who should sit on its board alongside the Mayor. In that very direct way, people who depend on these vital public services will have more influence over their direction and future strategy.

[Mr Baker]

May I just assert my complete support for the idea of mutualising both Channel 4 and the BBC? Channel 4 would be an enormous mutualisation, but a much smaller one than the BBC. I would encourage the Government to look very seriously at recapitalising ordinary people by giving them the opportunity to take a real ownership stake in those very important public institutions.

[Mr Thomas]

Having ruined my own career, and probably his too, by praising the hon. Gentleman, let me move on to other areas that we have not discussed prior to the debate.

One of the things that many co-operative businesses active in their communities point out is the way that the internet is changing the nature of retailing. By definition, many internet retailers do not have large property footprints in particular communities and therefore pay substantially less in property tax than those who are offering a direct service on high streets in communities up and down the land. I support the call of many in the co-op retail movement for a review of the business rates they have to pay by comparison to the taxes that online businesses such as Amazon have to pay at the moment, which are substantially less.

In my earlier intervention on my hon. Friend the Member for Cardiff South and Penarth, I raised the potential contribution of the military credit union. I hope Ministers in the new Government will go further than just support for a military credit union and will recognise the huge benefits of trying to extend credit union membership. In particular, I would like to see a right to save, so that anybody who wants money deducted at payroll and sent to their credit union should be allowed to make that request and have that implemented without question. At the moment, it is at the discretion of the employer. Everybody knows that this is a service that can be offered incredibly cheaply by employers, but it is a matter of will. The very best employers do it, but sadly too many do not. Perhaps putting a right to save on the statute book could help to boost membership of credit unions.

I have always very much supported the idea of a British version of the Community Reinvestment Act, which would place a requirement on major banks to account for the services that they provide to the communities from which they take deposits. When those major banks leave those communities and shut branches, there should be an obligation on them to continue to work there, albeit perhaps through credit unions or other community banks operating there. That legislation works extremely well in the United States and is long overdue here in the UK.

I add my voice to those who have called for a profit-sharing requirement on big companies. There is merit in the French idea that 5% of profits should be shared among those employees who have helped to create that profit in the first place. That would seem to be one further way in which we could create an economy that works for all. I commend my hon. Friends and other hon. Members who have participated in this important debate.

Financial Services Bill

Debate between Steve Baker and Gareth Thomas

Tuesday 22nd May 2012 Commons Chamber

[Steve Baker]

Looking at the amendment, I wonder whether it illustrates the tensions in the contemporary labour movement. On one hand, this should be a time of celebration for all those who believe in mutuality, co-operatives and voluntary self-help, because Members of all parties are signed up to the idea. There is a Conservative co-operative movement, and many of us are very serious about it. On the other hand, Labour insists on top-down control and state direction. It wants to enshrine in legislation measurement, management and the direction of Ministers’ performance.

Is it not time that, rather than insisting on the production of numbers and pretending that the Financial Secretary can direct people to help one another voluntarily and mutually, we eliminated barriers to entry, accepted spontaneous order and encouraged people to build up the bonds of friendship and mutual co-operation? Ministers cannot direct or legislate for those bonds.

[Mr Thomas]

Perhaps the hon. Gentleman could describe how the amendment would in some way create a barrier to entry to the financial services market.

[Steve Baker]

I was not suggesting that it would create a barrier to entry. I was suggesting that it would put in place measurement and management. That may well appeal to some people, but if we want spontaneous order, mutual societies and bonds of friendship, we cannot get them by state direction. There is very little point in measuring the Financial Secretary’s performance when we want spontaneous order and the bonds of mutuality. I do not support the amendment, but like many other Government Members, I certainly support the thrust of the Government’s policy.