Bank Branch Closures

Debate between Susan Elan Jones and Chris Evans

Thursday 30th June 2016 Commons Chamber

[Chris Evans (Islwyn) (Lab/Co-op)]

It is a pleasure to follow the hon. Member for East Lothian (George Kerevan). I hope that Mr Ross McEwan meets him really soon because I can see the hon. Gentleman’s passion on this issue. I pay tribute to my hon. Friend the Member for City of Chester (Christian Matheson). I know how deeply he feels about this issue and how he has been campaigning for this debate through the Backbench Business Committee. I am pleased that his campaigning has come to fruition. It would be remiss of me not to mention the hon. Member for Wells (James Heappey).

We found out today that the hon. Member for Ceredigion (Mr Williams) is lucky enough to have access to a train, a bus and a car. He represents a beautiful part of Wales and I always like hearing him talk about places in his constituency because that reminds me of my childhood holidays and good memories come flooding back. I also pay tribute to my hon. Friend the Member for Ynys Môn (Albert Owen), who has again shown his passion and devotion to his island constituency. His fantastic speech was one of the best that we have heard in the Chamber for a long time and I thank him for it. It would also be remiss of me not to mention another Welsh colleague, my hon. Friend the Member for Clwyd West—

[Susan Elan Jones]

Clwyd South.

[Chris Evans]

I promised my hon. Friend before I stood up to speak that I would not say “Clwyd West”, but I knew I would get it wrong. My hon. Friend the Member for Clwyd South (Susan Elan Jones) has been a good friend for a number of years. Like my hon. Friend the Member for Ynys Môn, she cares about these issues. I thank her for her passion and for the strength that she has shown, especially this week, given the difficult circumstances.

Sadly, the debate has come at a bad time for me. Only last night I received the terrible news that yet another bank—Lloyds in Newbridge, a town in my constituency—is to close in October. That follows the closure earlier this month of HSBC in Risca, another town in my constituency. Sadly, such closures are not unique to my constituency. They are widespread throughout the whole country, and some sections of society are experiencing a considerable loss. The BBC reported in May that between April 2015 and April 2016, more than 600 bank branches were closed across the UK. More have closed since, including that HSBC branch in Risca, and soon there will be that closure in Newbridge and others across south-east Wales.

Local residents are being given the usual reason by their bank, namely that more customers are turning towards online banking and footfall at branches is falling. It is hard to deny that online and telephone banking are on the rise. Although I use bank branches from time to time, my own daily banking needs are usually met over the phone or through an app. This trend is underlined by Barclays, which says that on average its customers use mobile banking more than 28 times a month, but visit their local branch less than twice in that time. The banks say that it therefore makes commercial sense to close branches that are expensive and not being utilised enough to justify their cost. When I worked in banking in the early part of the 21st century, I noticed that footfall was going down, but the banks were not really very nice places because we would have a customer’s arm up behind their back trying to sell them as much as we could as soon as they walked through the door.

If we look only at statistics and reduce customers to numbers on a graph or spreadsheet, saying that they are only one of a minority who do not use online or telephone banking, we ignore the cost and the burden that closures place on the individuals who are left out. When we dig a little deeper to see who exactly loses out the most from the closure of a bank branch, it is almost always the most vulnerable in the community. I have spoken in the House about the perils of payday lending, legal loan sharks and doorstep lenders. If someone needs a loan, they will trust the person at the door if there is no bank at the end of the road to meet their borrowing needs. That is the danger. When a bank closes a branch, that person, who is usually unbanked, becomes even more vulnerable than they already are.

I have to make an example of HSBC and the branch closure in Risca. When I launched an online petition, which was signed by hundreds of residents, some of the comments truly summed up the problem with branch closures. One constituent said:

“My parents use this bank. If this branch closes they will not have a branch within a 5-mile radius. The nearest branch will be at least 30 minutes away by bus. Both of them are in their 70s and cannot use internet banking as they have no internet connection nor computer. They are hard of hearing, so telephone banking is also out of the question. How are customers like them supposed to deal with any issues if they cannot speak to someone face to face?”

HSBC’s closure of Risca’s branch was bungled, and the same goes for branches all over the country. The first I heard about it was in an email on a Friday night. I was told, “Do not say anything, because we have not told the customers or the businesses. Keep it to yourself.” I wrote to the bank and asked for an exact closure date and when it was going to be announced, but I was met with silence. It was only when I put it in the press and set up the petition that HSBC wanted to talk to me. Even then, it was like pulling teeth.

I asked to speak to the chief executive—like the hon. Member for East Lothian did with RBS—and I was given a regional director who popped by in Risca for the day. Guess what I found when I walked into the HSBC? Did I find a branch on its last legs? Did I find a lack of staff? No, people were queuing out the door to use the services. The average age of the people was 70s or 80s and they were complaining that the branch was going to close, yet the representative was in the office telling me that no one was using the service. Who am I supposed to believe?

Another thing that I have to say about HSBC is that when it did finally put out a press release, it told me that footfall had dropped by 70% in Risca. That was very good, and I accept that, but when branches were closed in the constituency of my hon. Friend the Member for Rhondda (Chris Bryant) in Porth and Tonypandy and in the constituency of my hon. Friend the Member for Ogmore (Chris Elmore), the bank said exactly the same thing: footfall had fallen 70% as well. I am sorry, but I do not believe that figure.

Army Career Offices (Wales)

Debate between Susan Elan Jones and Chris Evans

Wednesday 13th February 2013 Westminster Hall

[Chris Evans]

I thank my parliamentary neighbour; I am pleased that both my parliamentary neighbours have intervened on me. On the flip side, people who are not sure might think that the armed forces are not for them, so careers offices are a good facility to ensure that we recruit exactly the right people. I agree with my hon. Friend.

As I said, the armed forces are not something people sign up to online after half an hour of looking for jobs on Google or any other, job-related website and thinking, “Ah, that’s a good idea.” No, it is much more serious than that. Having a point of reference on the high street is vital. Over the years, Army recruitment offices have served Wales and the UK. Also, for the parents of potential recruits, it can be comforting to know that they will have someone to talk to about the career choice that their son or daughter is about to make. Army recruitment offices are familiar and proud features of our high streets right across Wales and Britain. They are a focal point for any young person considering the armed forces as a career.

The Ministry of Defence recently revealed that seven out of 12 Army careers offices in Wales have closed or will close by the end of next month. We are now without an Army careers office in Pontypridd, Abergavenny, Carmarthen, Haverfordwest, Rhyl, Aberystwyth or Bridgend. If we spoke to people in those communities, I am sure that the majority would know where their Army careers office was based. They might walk past it on their way to work, but it was always there. Some of them may even have popped in for a chat about what life in the armed forces is like.

As we move through life, national service becomes a dim and distant memory. Our forces’ footprint is getting smaller all the time. The closures mean that Army life is becoming much more remote. Recruitment offices in south Wales are now consigned only to major areas such as Cardiff, Newport and Swansea. In north Wales, only the offices in Bangor and Wrexham remain open. The thing that I find most disappointing is that the closures were carried out with no formal ministerial announcement and were discovered only following parliamentary questions tabled by my hon. Friend the Member for Pontypridd (Owen Smith).

[Susan Elan Jones (Clwyd South) (Lab)]

Does my hon. Friend agree that today could be a great day? The Government once proposed abolishing the post of chief coroner, but thanks to more consideration and wide-scale opposition, they changed their mind. Does my hon. Friend agree that today could be the day when the Minister changes his mind on this matter and that that would be a great day for all concerned?

[Chris Evans]

I agree with my hon. Friend. I do not think that it is a sign of weakness for someone to say that they were wrong about something or a flip-flop to say that they have changed their mind. They would have analysed the facts, seen that their decision was wrong and gone about rectifying it. I would like to see more of that from the Government. There is no real worry in saying that they were wrong about something, and often it is a display of strength.

The Government have outsourced Army recruitment to a private firm called Capita. It seems perverse that Capita has secured a contract for recruitment worth £440 million, while the armed forces are shedding staff left, right and centre. Some 20,000 regular troops have been axed. Capita had promised to save the Army hundreds of thousands of pounds in recruitment costs when it won the contract. It also tells us that 80% of recruits will be less than 40 minutes away from an Army recruitment centre. Have its staff ever travelled on a bus in rural Wales or tried to get to Cardiff from the valleys during rush hour? We have seen campaigns to save our high street, yet the Government sit back and allow Capita to close recruitment offices. Perhaps it is hardly surprising that, no sooner have the Government privatised armed forces recruitment, anyone considering a career in the Army has been directed online and lost the face-to-face contact that made careers offices so valuable.

Not only Wales is being affected by the closures; across the UK, 83 out of a total of 156 offices will close, leaving just 73 open. Army careers offices were once the first port of call for young men or women who wanted to find out more about making the unique sacrifice and joining our armed forces.

The Economy

Debate between Susan Elan Jones and Chris Evans

Wednesday 22nd June 2011 Commons Chamber

[Chris Evans]

We have heard about the FSA, and we have admitted that that did not work, but before that, there was self-regulation. There was no attempt to tie them down, and there is still no such attempt. When the Minister responds to the debate, we need to hear from her what the future of the banks will be. We need to know that.

This is the problem that I have with the entire debate. People say, “It was the Labour Government overspending”, but faced with the same problem of the banks going under, what would the present Chancellor have done? He would have done one of two things. Since his road to Damascus experience, he wants to cut everything, and following that logic, he would have done nothing. The economy would have gone under, and everyone with a mortgage would have been written off. Alternatively, bearing in mind his mates in the City, I suspect that he would have bailed the banks out just like we did. He would have been faced with a deficit, just like we were. We never hear anything about the future of those banks from Members on the Government Benches.

[Susan Elan Jones (Clwyd South) (Lab)]

Conservative Members seem to forget what the Prime Minister said. In speech to the CBI, he said that the Government were sticking to Labour’s spending totals. Just weeks before the collapse of Northern Rock and for several months after it, he said to the Institute of Directors that if it wanted lower taxation and less regulation, he would—