Browse content similar to 08/02/2018. Check below for episodes and series from the same categories and more!
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Minister about the matter with which
she has been extraordinarily closely | 0:00:00 | 0:00:01 | |
involved in. Some latitude. I wish
to make a statement on the | 0:00:01 | 0:00:11 | |
independent review of local
community health NHS Trust conducted | 0:00:11 | 0:00:18 | |
for NHS and published today. What
happened to patients of Liverpool | 0:00:18 | 0:00:24 | |
community is common before anything
else, a terrible personal tragedy | 0:00:24 | 0:00:27 | |
for all of the families involved.
Report also makes clear the | 0:00:27 | 0:00:33 | |
devastating impact on many of the
front line staff as well. On behalf | 0:00:33 | 0:00:38 | |
of the government, I want to
apologise to them and I know the | 0:00:38 | 0:00:41 | |
whole house would want to extend our
sympathies to everyone. I would like | 0:00:41 | 0:00:46 | |
to pay tribute, as Mr Speaker has
correctly identified to the | 0:00:46 | 0:00:52 | |
honourable member for West like. The
people of Merseyside know only too | 0:00:52 | 0:00:57 | |
well the cost of attempting to
silence the victims and campaigners | 0:00:57 | 0:01:01 | |
of those seeking justice. As this
report makes clear, their personal | 0:01:01 | 0:01:06 | |
commitment to get to the truth on
behalf of the victims of the | 0:01:06 | 0:01:11 | |
Liverpool community trust, her
personal courage and asking | 0:01:11 | 0:01:14 | |
difficult questions of those in
senior positions in the NHS and the | 0:01:14 | 0:01:20 | |
persistence and precision of her
search for accountability are all | 0:01:20 | 0:01:22 | |
vindicated today. We in this house
and across the wider health and | 0:01:22 | 0:01:27 | |
social care service for her debt of
gratitude. I would like to thank the | 0:01:27 | 0:01:35 | |
doctor and his team for this
excellent report, as with as | 0:01:35 | 0:01:40 | |
reported on NHS Foundation Trust, it
is clear, forensic and at times and | 0:01:40 | 0:01:44 | |
devastating account of failures in
the care of Liverpool community | 0:01:44 | 0:01:48 | |
trust by its management from its
board and its regulators. The report | 0:01:48 | 0:01:55 | |
covers the period from the
transformation in November 2010 to | 0:01:55 | 0:01:59 | |
December 2014 and it describes an
organisation that was, and I quote, | 0:01:59 | 0:02:03 | |
dysfunctional from the outset was
that the consequences of this for | 0:02:03 | 0:02:07 | |
patient care were in some cases are
following in the report details a | 0:02:07 | 0:02:11 | |
number of incidents of patient harm,
including pressure sores, fractured | 0:02:11 | 0:02:17 | |
hips and five never events. That was
in the dental service, and | 0:02:17 | 0:02:23 | |
incredibly high number on one
organisation. The failures of the | 0:02:23 | 0:02:29 | |
organisation were more starkly
apparent in the services provided | 0:02:29 | 0:02:31 | |
that Liverpool prison. The trust
built to properly risk assessed | 0:02:31 | 0:02:37 | |
patients for nutrition and hydration
and did not effectively manage | 0:02:37 | 0:02:41 | |
patients at a high risk of suicide.
The review has in addition identify | 0:02:41 | 0:02:46 | |
serious failures in medicine
management in Liverpool prison. | 0:02:46 | 0:02:50 | |
There are many more examples of poor
care and its impact on patients and | 0:02:50 | 0:02:54 | |
on staff in the report. What
compounds the shock and the lack -- | 0:02:54 | 0:03:00 | |
is the lack of insight displayed at
the time by the organisation into | 0:03:00 | 0:03:03 | |
these failures. This was the very
opposite of a culture of learning, | 0:03:03 | 0:03:09 | |
with incidents on or played down,
warning signals ignored and other | 0:03:09 | 0:03:14 | |
priorities are allowed to take place
-- to take the place of patient | 0:03:14 | 0:03:20 | |
safety and tear for the vulnerable.
We have seen this sort of moral | 0:03:20 | 0:03:23 | |
drift before. Most obviously at mid
Staffordshire and Morecambe Bay. As | 0:03:23 | 0:03:30 | |
with mid Staffordshire and the
management of Liverpool community | 0:03:30 | 0:03:32 | |
that far too much emphasis on
achieving trust status, the review | 0:03:32 | 0:03:36 | |
states and I quote, the trust
undertake an aggressive cost | 0:03:36 | 0:03:40 | |
improvement plan. Targeting the £30
million reduction over five years. | 0:03:40 | 0:03:46 | |
This represented a cut in resources
of approximately 22%. We were | 0:03:46 | 0:03:52 | |
surprised that such an ambitious
financial reduction was not | 0:03:52 | 0:03:55 | |
scrutinised more closely by both
commissioners and regulators. There | 0:03:55 | 0:04:02 | |
is a direct line from the decisions
made by the trust in this reckless | 0:04:02 | 0:04:08 | |
manner to the harm experienced by
patients. An early report by | 0:04:08 | 0:04:13 | |
solicitors in March 2016 reported
that the interim Chief Executive, | 0:04:13 | 0:04:19 | |
who took over from Burnley Castle,
found in her first week that there | 0:04:19 | 0:04:24 | |
was an understanding by £3 million
on district nursing. These teams | 0:04:24 | 0:04:31 | |
were devastated because there
weren't allowed to recruit, some of | 0:04:31 | 0:04:37 | |
them down 50%. This is a nursing
service whether Doctor says patients | 0:04:37 | 0:04:45 | |
were experiencing great large
pressure sores, grade three. This | 0:04:45 | 0:04:52 | |
was accompanied by the hallmark of
an organisation that has lost sight | 0:04:52 | 0:04:55 | |
of its purpose. As the doctor
states, and I quote, the evidence | 0:04:55 | 0:04:59 | |
that we had and saw amply confirmed
the existence of a bullying culture | 0:04:59 | 0:05:05 | |
within the trust. Focus almost
entirely on achieving foundation | 0:05:05 | 0:05:09 | |
trust status. An adequate staffing
levels, your staff morale, and are | 0:05:09 | 0:05:16 | |
HR practice went unheeded. This was
the end result of an inexperienced | 0:05:16 | 0:05:20 | |
leadership that was not capable of
rising to the challenges presented | 0:05:20 | 0:05:25 | |
by the trust. Following an
Staffordshire report, the doctor | 0:05:25 | 0:05:31 | |
recognises that steps have been
taken to introduce independent Sunni | 0:05:31 | 0:05:35 | |
led inspection by the sea QC. The
government has introduced special | 0:05:35 | 0:05:39 | |
measures regime with an NHS
improvement. Alongside as we have | 0:05:39 | 0:05:44 | |
put in place a number of measures to
create a wider culture of learning | 0:05:44 | 0:05:47 | |
and improvement was that the
Secretary of State has offered a | 0:05:47 | 0:05:51 | |
great deal of personal leadership in
helping to create this culture. | 0:05:51 | 0:05:55 | |
Including the establishment of an
independent Chief inspector for | 0:05:55 | 0:05:58 | |
hospitals. I met him yesterday and
spoke again with this morning. The | 0:05:58 | 0:06:02 | |
recent introduction of measures to
support trusts to learn from deaths | 0:06:02 | 0:06:09 | |
and improve patient safety. I'm sure
that I'm not alone in finding an | 0:06:09 | 0:06:13 | |
astonishing that the doctor found
there was a small minority of | 0:06:13 | 0:06:20 | |
individuals who refused to cooperate
with the review. I wholeheartedly | 0:06:20 | 0:06:25 | |
agree with his view that it remains
the duty of all NHS staff to assist | 0:06:25 | 0:06:32 | |
as fully as they are able, with
investigations and reviews that are | 0:06:32 | 0:06:38 | |
directed towards improving future
services. Mr Speaker, all but one of | 0:06:38 | 0:06:44 | |
the board of the Liverpool trust
shirked their legal and moral | 0:06:44 | 0:06:50 | |
responsibility to be candid about
the organisation that the | 0:06:50 | 0:06:52 | |
government. In large complex
organisations, responsibility and | 0:06:52 | 0:07:00 | |
accountability are always
distributed to some degree. It is | 0:07:00 | 0:07:04 | |
the case that the higher up in the
organisation someone is, the greater | 0:07:04 | 0:07:09 | |
their degree of responsibility. In
this case, those individuals were | 0:07:09 | 0:07:14 | |
Burnley Castle as Stevie -- Stephen
-- chief executive and France Malloy | 0:07:14 | 0:07:21 | |
as chair. From reading the report,
the each must take a significant | 0:07:21 | 0:07:25 | |
share of the responsibility of these
findings. Honourable members will, | 0:07:25 | 0:07:32 | |
I'm sure, have noted the conclusions
to the clinical governance section | 0:07:32 | 0:07:35 | |
of the report, which highlights the
responsibility of the former chief | 0:07:35 | 0:07:40 | |
executive of the trust for the
system of clinical governance and | 0:07:40 | 0:07:45 | |
its fairness. It would appear that
while the former chief executive is | 0:07:45 | 0:07:49 | |
now able to see there were failures
in clinical governance, she does not | 0:07:49 | 0:07:54 | |
have as strong sense of
responsibility as one might expect. | 0:07:54 | 0:08:00 | |
She is no longer employed in the NHS
but continues to have a role working | 0:08:00 | 0:08:06 | |
within the NHS in Wales. In response
to this report, the government | 0:08:06 | 0:08:12 | |
intends to take a number of actions.
First, the government accepts the | 0:08:12 | 0:08:19 | |
recommendations of the doctor in
school. Whilst this was a report | 0:08:19 | 0:08:24 | |
commissioned by NHS improvement, I
will write to all the organisations | 0:08:24 | 0:08:30 | |
named in the recommendations set out
in section six of the report, asking | 0:08:30 | 0:08:33 | |
them to confirm what steps they will
take to implement the | 0:08:33 | 0:08:37 | |
recommendations, or set that there
are reasons for not doing so. I will | 0:08:37 | 0:08:41 | |
ensure copies of that response are
shared with the health Select | 0:08:41 | 0:08:45 | |
Committee. One recommendation is
specifically for the Department of | 0:08:45 | 0:08:53 | |
Health and social care, as set out
in paragraph 6.5 page 64. This | 0:08:53 | 0:08:59 | |
relates to a review of sea QCs fit
and proper person test. Ryan ten to | 0:08:59 | 0:09:05 | |
discuss the terms of the review with
the member for West Lancashire and | 0:09:05 | 0:09:08 | |
will appoint somebody to undertake
the review within the coming days. I | 0:09:08 | 0:09:14 | |
believe that review will need to
address the operation and purpose of | 0:09:14 | 0:09:18 | |
the fit and proper test. Including
but not limited to when an | 0:09:18 | 0:09:23 | |
individual moves from the NHS in
England to another part of the | 0:09:23 | 0:09:28 | |
United Kingdom. Where they believe
that subsequently provide health | 0:09:28 | 0:09:31 | |
care services to the NHS from
another health care role. Such as | 0:09:31 | 0:09:35 | |
with a charity or a health care
company differing levels of | 0:09:35 | 0:09:40 | |
professional regulation such as a
Chief Executive computer one who is | 0:09:40 | 0:09:46 | |
a non-clinician. The failure to
cooperate with the review with this | 0:09:46 | 0:09:51 | |
nature and what the consequences of
that should be. Indeed, to review | 0:09:51 | 0:09:57 | |
the effectiveness of such
investigations themselves when they | 0:09:57 | 0:09:59 | |
are conducted. I will be pleased to
hear the views of the Honourable | 0:09:59 | 0:10:03 | |
member for West Lancashire and those
of the health Select Committee on | 0:10:03 | 0:10:08 | |
these issues. Third, I've asked the
Department to review the | 0:10:08 | 0:10:12 | |
effectiveness of sanctions were
records go missing in the trust. For | 0:10:12 | 0:10:17 | |
her records appear to have been
destroyed. Force, I've asked the | 0:10:17 | 0:10:21 | |
Department for advice on what
disciplinary action can be taken | 0:10:21 | 0:10:25 | |
against individuals in relation to
the findings of this report. | 0:10:25 | 0:10:31 | |
Clearly, due process needs to be
followed. It is important we address | 0:10:31 | 0:10:35 | |
a revolving door culture that has
existed in parts of the NHS, where | 0:10:35 | 0:10:41 | |
individuals move the other NHS
bodies often facilitated by those | 0:10:41 | 0:10:46 | |
tasked with regulating them. I will
ask NHS improvement and NHS England | 0:10:46 | 0:10:51 | |
to clarify the circumstances under
which rules were found facilitated | 0:10:51 | 0:10:56 | |
for individuals identified in the
report as bearing some | 0:10:56 | 0:11:00 | |
responsibility for the issues at the
trust. I have spoken with colleagues | 0:11:00 | 0:11:06 | |
at the Ministry of Justice and
confirmed to the House that they | 0:11:06 | 0:11:10 | |
intend to investigate the issues
arising from this report in respect | 0:11:10 | 0:11:15 | |
of HMP Liverpool specifically and
the prisoner state more generally. | 0:11:15 | 0:11:24 | |
All organisations and individuals
make mistakes. This is an | 0:11:24 | 0:11:30 | |
opportunity to learn and improve, we
will do all we can to provide | 0:11:30 | 0:11:34 | |
support. Where however there is any
kind of cover-up or a blinkered | 0:11:34 | 0:11:38 | |
denial of what has happened, members
of this House and the victims of | 0:11:38 | 0:11:43 | |
that wrongdoing have a right to
expect accountability. The Member | 0:11:43 | 0:11:48 | |
for West Lancashire has done the NHS
a great service. I will place a copy | 0:11:48 | 0:11:53 | |
of the Kirk at review in the House
of Commons library. The government | 0:11:53 | 0:11:57 | |
is acting in for on the findings. --
enough all. | 0:11:57 | 0:12:02 | |
Can I start by adding my
appreciation to the tenacity my | 0:12:06 | 0:12:09 | |
honourable friend the Member for
West Lancashire has shown in | 0:12:09 | 0:12:12 | |
pursuing this matter of a number of
years? She has led the way in | 0:12:12 | 0:12:18 | |
tackling this injustice fearlessly
and relentlessly, in that respect | 0:12:18 | 0:12:21 | |
she is an example to all members in
this place. I agree with the | 0:12:21 | 0:12:27 | |
Minister that this report is a
vindication of her courage. Isn't it | 0:12:27 | 0:12:34 | |
shameful this scandal only came to
light because a member of Parliament | 0:12:34 | 0:12:40 | |
gave a voice to those who are afraid
to speak out. This report lays bare | 0:12:40 | 0:12:47 | |
a catalogue of failure which caused
harm to patients across Merseyside | 0:12:47 | 0:12:52 | |
between 2010-14. It is a grim
example of the regulated pressures | 0:12:52 | 0:12:56 | |
on board management failures from
staff being repeated on and off huge | 0:12:56 | 0:13:00 | |
concern is that some of these babies
came after the final publication of | 0:13:00 | 0:13:04 | |
the Francis Report. -- some of these
failures. Patients having the wrong | 0:13:04 | 0:13:14 | |
tooth fixed by dentists, patients on
care award suffering fools with | 0:13:14 | 0:13:19 | |
broken bones or pressure ulcers. We
have to make sure the pain | 0:13:19 | 0:13:24 | |
experienced by so many patients and
their families is properly detailed | 0:13:24 | 0:13:28 | |
unrecognised. We must make sure the
NHS is able to learn from these | 0:13:28 | 0:13:32 | |
events and that systems are put in
place to ensure they never happen | 0:13:32 | 0:13:34 | |
again. Can I put on record our
thanks from the side of the House to | 0:13:34 | 0:13:39 | |
Doctor Bill Kirk and the work his
team have done in carrying out this | 0:13:39 | 0:13:43 | |
investigation and helping us to
understand what has gone wrong. | 0:13:43 | 0:13:46 | |
Today's report says patients
suffered unnecessary harm because | 0:13:46 | 0:13:52 | |
the senior leadership team was out
of its depth. Let's be clear what | 0:13:52 | 0:13:56 | |
lies at the heart of this:
unrealistic cost-cutting without | 0:13:56 | 0:14:00 | |
regards to the consequences which
leads to patients being harmed. The | 0:14:00 | 0:14:08 | |
report exposes serious problems
around cost-cutting, in the case of | 0:14:08 | 0:14:11 | |
the local community motivation was
the drive to receive status. The | 0:14:11 | 0:14:16 | |
trust discipline and suspended staff
who blew the whistle about poor care | 0:14:16 | 0:14:19 | |
and its controversial plans to save
bash staff in order to save money. | 0:14:19 | 0:14:25 | |
-- to slash staff. What protections
have been put in place for staff who | 0:14:25 | 0:14:35 | |
raise concerns about cost-cutting?
Today's report notes the irony of | 0:14:35 | 0:14:37 | |
staff reductions being agreed at the
same board meeting that an earlier | 0:14:37 | 0:14:42 | |
considered the invocations of the
Francis Report. This alone should | 0:14:42 | 0:14:45 | |
have raised alarm bells about the
capacity of board members to | 0:14:45 | 0:14:48 | |
challenge the trust. The NHS still
faces huge workforce shortages so | 0:14:48 | 0:14:52 | |
what update can the Minister give us
on how the 10-year workforce | 0:14:52 | 0:14:56 | |
strategy has been received? What
additional measures for the strategy | 0:14:56 | 0:14:59 | |
include the guarantee safe levels of
staffing over the country, in | 0:14:59 | 0:15:03 | |
community as well as acute services?
I'm pleased the Minister recognises | 0:15:03 | 0:15:10 | |
concerns that managers responsible
can often go into leadership roles | 0:15:10 | 0:15:12 | |
in other parts of the health service
or indeed Private providers to the | 0:15:12 | 0:15:16 | |
NHS in another capacity. Can the
Minister advise how many people | 0:15:16 | 0:15:22 | |
refuse to corporate with this
investigation who are still employed | 0:15:22 | 0:15:24 | |
in some part of the NHS? Is there
anything in existing terms and | 0:15:24 | 0:15:29 | |
conditions that can be used to
require cooperation in future? Is | 0:15:29 | 0:15:32 | |
there any form of address in
existing policies and procedures | 0:15:32 | 0:15:36 | |
that we can use against these
people? The report also said | 0:15:36 | 0:15:41 | |
regulators were distracted by higher
profile services like acute care, | 0:15:41 | 0:15:45 | |
the service general says today
oversight failures were partly | 0:15:45 | 0:15:49 | |
indubitable to organisational
changes that were taking place | 0:15:49 | 0:15:52 | |
during the D12 health and social
care act. What is the government | 0:15:52 | 0:15:56 | |
going to do to ensure national
rarities are not allowed to | 0:15:56 | 0:15:59 | |
interfere with local oversight? The
report raises serious concerns about | 0:15:59 | 0:16:03 | |
the quality of health care in
prisons. HMP Liverpool has | 0:16:03 | 0:16:07 | |
significant challenges and the new
provider of the health service at | 0:16:07 | 0:16:10 | |
the prison has said it cannot
continue with the contract on the | 0:16:10 | 0:16:13 | |
level of funding available. Our
Ministry of Justice will investigate | 0:16:13 | 0:16:18 | |
these matters generally but can the
Minister assure us that prison | 0:16:18 | 0:16:22 | |
health care is properly supported
and resource to Merseyside and | 0:16:22 | 0:16:26 | |
elsewhere across the country? In
conclusion, paragraph one of the | 0:16:26 | 0:16:29 | |
review findings sums up the
devastating impact of these multiple | 0:16:29 | 0:16:32 | |
failings. It says, staff were
overstretched, demoralised and in | 0:16:32 | 0:16:37 | |
some instances bullied. That
significant unnecessary harm | 0:16:37 | 0:16:42 | |
occurred to patients. In the
unprecedented financial squeeze, the | 0:16:42 | 0:16:47 | |
NHS currently faces, we need
assurances from the Minister that | 0:16:47 | 0:16:49 | |
patients and staff will come before
finance and that is the last time | 0:16:49 | 0:16:53 | |
today we hear such a damning message
about what is going on in our NHS. I | 0:16:53 | 0:17:01 | |
thank the Shadow Minister for those
questions and the manner in which | 0:17:01 | 0:17:04 | |
you put them before the House. In
terms of the first key issue he | 0:17:04 | 0:17:09 | |
raised, which is to what extent are
the measures in place now to address | 0:17:09 | 0:17:13 | |
this sort of issue, should it arise,
post Francis review, a trust with | 0:17:13 | 0:17:22 | |
high mortality rate, a new region
has been put in place in terms of | 0:17:22 | 0:17:27 | |
the Tube expected of hospitals, Ted
Baker, and also the specific regime | 0:17:27 | 0:17:34 | |
with NHS improvement. This is a
report that was commissioned by NHS | 0:17:34 | 0:17:39 | |
improvement itself, has a new chair
in Dido Harding, a senior figure | 0:17:39 | 0:17:43 | |
from the business community. That
regime has put in place 37 hospitals | 0:17:43 | 0:17:50 | |
into special measures so far. The
methodology used to allow it | 0:17:50 | 0:17:58 | |
regulators to areas of concern has
also been revised, so far more | 0:17:58 | 0:18:04 | |
importance is now placed on staff
surveys and patient surveys. Though | 0:18:04 | 0:18:09 | |
it does still remain to be explained
why a trust could pay as so many | 0:18:09 | 0:18:17 | |
compromise agreements, could respond
to so many staff disciplinary | 0:18:17 | 0:18:19 | |
issues, no doubt I recognise the
honourable gentleman will have many | 0:18:19 | 0:18:25 | |
concerns from the trade unions
locally. In terms of some of the | 0:18:25 | 0:18:33 | |
earlier reports, to what extent that
tingled concerns that should have | 0:18:33 | 0:18:38 | |
been addressed. That's why I
signalled my desire in my reports to | 0:18:38 | 0:18:41 | |
look at these issues and ensure
particularly round the fit and | 0:18:41 | 0:18:45 | |
proper test we ensure that those
address, though he will be aware the | 0:18:45 | 0:18:49 | |
fit and proper test only pertains to
board level appointments within the | 0:18:49 | 0:18:55 | |
NHS as opposed to all roles, so we
must look at the scope, | 0:18:55 | 0:18:59 | |
effectiveness of the investigation
and particularly as he recognised | 0:18:59 | 0:19:01 | |
the revolving door element. In terms
of other issues we raised, I think | 0:19:01 | 0:19:11 | |
we clearly need to ensure due
process is followed and I must | 0:19:11 | 0:19:13 | |
remind the House of the difficulties
around any enforcement with Goodwin, | 0:19:13 | 0:19:19 | |
if you look at Sharon Smith, and
child services, and people quite | 0:19:19 | 0:19:28 | |
rightly deserve to be able to expect
due process and all members of the | 0:19:28 | 0:19:31 | |
House would ask that. The victims
will rightly ask, how can the chief | 0:19:31 | 0:19:36 | |
executive with this catalogue of
issues then move within the NHS | 0:19:36 | 0:19:40 | |
rather than be fired? That is the
sort of question I know the Member | 0:19:40 | 0:19:45 | |
for West Lancashire has concerns
around an I'm sure many members of | 0:19:45 | 0:19:47 | |
the House likewise the House
committee. I look forward to working | 0:19:47 | 0:19:52 | |
with him in the spirit in which he
has raised these issues, I know they | 0:19:52 | 0:19:56 | |
are issues we share and issues the
House as a whole wants us to get a | 0:19:56 | 0:20:00 | |
hold of. Could I start by paying
tribute to my colleague on the | 0:20:00 | 0:20:08 | |
health Select Committee, the Member
for West Lancashire? She is a | 0:20:08 | 0:20:12 | |
remarkable parliamentarian and
advocate the patient safety. We all | 0:20:12 | 0:20:16 | |
on the House Select Committee look
forward to working alongside her to | 0:20:16 | 0:20:20 | |
examine in full the recommendations
from the report. I welcome the | 0:20:20 | 0:20:28 | |
Minister 's commitment to taking
forward a review of the fit and | 0:20:28 | 0:20:31 | |
proper person test. On the wider
issues raised by this report, | 0:20:31 | 0:20:36 | |
clearly where you continue to cut
staff and funding from community | 0:20:36 | 0:20:41 | |
services that are terrible
consequences for patient care. Will | 0:20:41 | 0:20:45 | |
the Minister assure the House that
he will rework and closely alongside | 0:20:45 | 0:20:50 | |
the Care Quality Commission to
identify other trusts in which these | 0:20:50 | 0:20:54 | |
kinds of issues are likely to arise?
Because of the workforce and funding | 0:20:54 | 0:20:57 | |
pressures that are now being faced.
Happy to work with my honourable | 0:20:57 | 0:21:07 | |
friend with this, she will be aware
from reading the reports that what | 0:21:07 | 0:21:13 | |
drove this, to be explicit in making
clear the finances were there for | 0:21:13 | 0:21:18 | |
the existing service, that set out
at the outset of the report what | 0:21:18 | 0:21:21 | |
drove this was a wholly unrealistic
attempt to seek financial trust | 0:21:21 | 0:21:28 | |
status with a cost improvement plan
that was simply undeliverable. A | 0:21:28 | 0:21:33 | |
massive reduction without any
attempt to reconcile that with the | 0:21:33 | 0:21:36 | |
service levels of staffing
vacancies. When staff raise those | 0:21:36 | 0:21:43 | |
concerns, they were bullied and
harassed, on occasions was suspended | 0:21:43 | 0:21:48 | |
without due cause. The culture has
significantly changed and measures | 0:21:48 | 0:21:55 | |
have been put in place as to how NHS
improvement will address those | 0:21:55 | 0:21:59 | |
issues. In terms of seeing to what
extent the culture was driving this | 0:21:59 | 0:22:06 | |
issue, I refer back to the remarks I
made my speech where the new chief | 0:22:06 | 0:22:11 | |
executive went in and found a
significant underspend of £3 million | 0:22:11 | 0:22:16 | |
in the district nursing budget.
According to the report. At the same | 0:22:16 | 0:22:23 | |
time, that had significant vacancies
and patient harm. It was that | 0:22:23 | 0:22:27 | |
culture that was driving the issue
and is that culture we need to put | 0:22:27 | 0:22:30 | |
an end to. I'd like to thank the
Minister for their statement on echo | 0:22:30 | 0:22:37 | |
his comments now, for the families
and staff involved in this over the | 0:22:37 | 0:22:42 | |
years. I also paid to be to the
honourable member for West | 0:22:42 | 0:22:49 | |
Lancashire, her tenacity sums up
what is wrong with the system at | 0:22:49 | 0:22:52 | |
present. In terms of observations
and recommendations, the Minister | 0:22:52 | 0:22:58 | |
has acknowledged some individuals
did not cooperate with the | 0:22:58 | 0:23:00 | |
investigation. Is there a case for
law changed to prevent this in the | 0:23:00 | 0:23:05 | |
future, or at very least employment
sanctions to apply to such | 0:23:05 | 0:23:10 | |
personnel? In terms of the fit and
proper person test the government | 0:23:10 | 0:23:15 | |
has put in place, any new standards
agreed high retrospectively to board | 0:23:15 | 0:23:21 | |
members currently in place? They
have acknowledge the revolving door | 0:23:21 | 0:23:25 | |
culture, it's important the fit and
proper test is done properly, and | 0:23:25 | 0:23:30 | |
will be review executive pay for
chief executives and senior staff. | 0:23:30 | 0:23:36 | |
What is going to be done to properly
protect whistle-blowers in future to | 0:23:36 | 0:23:41 | |
allow them to come forward? Clearly
funding and resources are really | 0:23:41 | 0:23:48 | |
important, and this report lays bare
the objectives of foundation status | 0:23:48 | 0:23:55 | |
and £30 million saving by 22%
reduction and resources, rather than | 0:23:55 | 0:24:00 | |
the true goal of clinical quality.
What is going to be done to ensure | 0:24:00 | 0:24:04 | |
that regulators pick up the search
contrasts in future, and what | 0:24:04 | 0:24:09 | |
responsibility does the government
take in terms of funding and that | 0:24:09 | 0:24:13 | |
drive for efficiency savings.
Lastly, does the Minister agree that | 0:24:13 | 0:24:17 | |
this confirms the failings of the
trust system and that going forward, | 0:24:17 | 0:24:21 | |
in the privatisation of the NHS,
with profit before care, that cannot | 0:24:21 | 0:24:25 | |
be allowed by the end of future
free-trade deals? The honourable | 0:24:25 | 0:24:33 | |
gentleman raises an important point,
a number of important points, but | 0:24:33 | 0:24:36 | |
particularly around whistle-blowers
which is one of the warning signals | 0:24:36 | 0:24:39 | |
that clearly failed here.
Regulations have been changed as he | 0:24:39 | 0:24:43 | |
will be aware in the past, there was
a culture in which compromise | 0:24:43 | 0:24:48 | |
agreements were plied with gagging
clauses attached, which prevented | 0:24:48 | 0:24:53 | |
visibility of those comprise
agreements and that's why one of the | 0:24:53 | 0:24:55 | |
questions I have asked on receipt of
this report is widely compromise | 0:24:55 | 0:24:59 | |
agreements that were being paid were
not being escalated to the board and | 0:24:59 | 0:25:03 | |
indeed what site if any did
regulators have of those compromise | 0:25:03 | 0:25:09 | |
agreements. Clearly financial
payments will have been made and | 0:25:09 | 0:25:12 | |
therefore there should be an audit
trail around those payments. He also | 0:25:12 | 0:25:16 | |
raised the issue in terms of what
changes have been made, and another | 0:25:16 | 0:25:21 | |
area where my honourable friend the
Secretary of State has placed a huge | 0:25:21 | 0:25:26 | |
amount of importance given the
leadership is around patient safety | 0:25:26 | 0:25:30 | |
guardians and ensuring that within
trusts, there are people tasked | 0:25:30 | 0:25:35 | |
specifically with giving voice to
patients. My predecessor the Member | 0:25:35 | 0:25:39 | |
for Lindner in one of his many very
sensible areas of advice to me was | 0:25:39 | 0:25:46 | |
that wherever I go and visit a
trust, to have a one-on-one meeting | 0:25:46 | 0:25:51 | |
with that individual, in terms of
the status of that individual within | 0:25:51 | 0:25:54 | |
a trust and also in order to gather
information from them. That's | 0:25:54 | 0:25:58 | |
something I know he assiduously dead
on all his visits. | 0:25:58 | 0:26:19 | |
is is this is a report that was back
that goes back to 2010 in terms of | 0:26:19 | 0:26:24 | |
its timescale but it's important the
NHS learned from the issues that | 0:26:24 | 0:26:29 | |
were set out. Can I add my tribute
to the member for West Lancashire, | 0:26:29 | 0:26:35 | |
she is a formidable parliamentarian
and has done very good work on this. | 0:26:35 | 0:26:40 | |
This report is shocking. Back in
March 2015 following another | 0:26:40 | 0:26:46 | |
incident, the public administration
Select Committee produced a report | 0:26:46 | 0:26:51 | |
investigating clinical incidents in
the NHS. | 0:26:51 | 0:26:54 | |
It recommended the setting up of the
health services safety investigation | 0:26:55 | 0:26:59 | |
Branch. The government has published
that draft bill. Could the minister | 0:26:59 | 0:27:05 | |
said when that bill will go into
pre-legislative scrutiny so we can | 0:27:05 | 0:27:08 | |
change this culture and have an open
and learning culture that we should | 0:27:08 | 0:27:13 | |
have in our NHS, very much as we see
in the airline industry. My right | 0:27:13 | 0:27:21 | |
honourable friend raises a very
important point in terms of the | 0:27:21 | 0:27:24 | |
draft bill and consultation and I am
not in position to announce a date | 0:27:24 | 0:27:28 | |
for that, that will be announced by
Burgess -- business managers in the | 0:27:28 | 0:27:32 | |
usual way and we have to recognise
the importance of the series of | 0:27:32 | 0:27:35 | |
measures and she is quite right to
allude to that as one of the | 0:27:35 | 0:27:41 | |
measures in the review and the
France's report which is all part of | 0:27:41 | 0:27:44 | |
changing the culture, one I very
much want to signal to the House | 0:27:44 | 0:27:48 | |
today. The report identifies where
there are clearly remaining issues | 0:27:48 | 0:27:54 | |
that need to be tackled. That is the
service he has given to us through | 0:27:54 | 0:27:59 | |
this report we have to focus on
others government. Thank you Mr | 0:27:59 | 0:28:09 | |
Speaker. Thank you for your
indulgence, I don't intend to test | 0:28:09 | 0:28:14 | |
your patience today by dealing with
the detail of these matters. I will | 0:28:14 | 0:28:19 | |
do that through the Select Committee
and other mechanisms available to | 0:28:19 | 0:28:25 | |
me. Thank you Mr Speaker. I will
thank the Minister for his kind | 0:28:25 | 0:28:30 | |
words and his comprehensive
statement in response to the | 0:28:30 | 0:28:34 | |
excellent work of Dr Kirkup and his
team. I would like to thank Dr | 0:28:34 | 0:28:42 | |
Kirkup and paid tribute to his
thoroughness and independence and | 0:28:42 | 0:28:45 | |
thank him most sincerely on behalf
of the staff and the patients in | 0:28:45 | 0:28:50 | |
Liverpool who suffered really badly
at the hands of this. I want to say | 0:28:50 | 0:29:00 | |
dictatorship, regime, whatever it
was but it was done in our name, | 0:29:00 | 0:29:03 | |
done in the name of the NHS and they
deserve justice. After the review, | 0:29:03 | 0:29:10 | |
the report and now this report, and
another report on the way and | 0:29:10 | 0:29:18 | |
hearing is due soon, it really is
important that the NHS ensures that | 0:29:18 | 0:29:22 | |
justice, not only is done, but this
seemed to be done. Governments of | 0:29:22 | 0:29:26 | |
all parties, the higher echelons of
the NHS have closed ranks to protect | 0:29:26 | 0:29:35 | |
themselves and this has got to stop.
The senior people were able to | 0:29:35 | 0:29:41 | |
inflict such harm on staff and
patients and just what into other | 0:29:41 | 0:29:45 | |
senior NHS jobs with 6-figure
salaries and in this case it be | 0:29:45 | 0:29:51 | |
arranged by the Northwest regional
of NHS, Lynn Simpson, it is simply | 0:29:51 | 0:29:59 | |
staggering. I still can't answer the
question as the Minister himself | 0:29:59 | 0:30:04 | |
posed, why wasn't the Chief
Executive and this board fired? Why | 0:30:04 | 0:30:08 | |
weren't they sacked? It's
incomprehensible. Nothing has been | 0:30:08 | 0:30:13 | |
learned over these last four years,
as only a few weeks ago, the NHS are | 0:30:13 | 0:30:18 | |
presiding over another LCA in the
Wirral Hospital trust. I will | 0:30:18 | 0:30:24 | |
continue to pursue these matters
with vigour on behalf of the staff | 0:30:24 | 0:30:28 | |
and patients. I would like to place
on record that I don't see, for | 0:30:28 | 0:30:35 | |
everybody who is affected, I don't
see this report is the end, far from | 0:30:35 | 0:30:39 | |
it. I know the Minister has a legal
and forensic background and I would | 0:30:39 | 0:30:45 | |
ask him, how will he assure this has
that these matters will be dealt | 0:30:45 | 0:30:50 | |
with properly by the executive and
there will be no more cover-ups. | 0:30:50 | 0:30:55 | |
Cover-ups and back door deals have
ended once and for all. I know the | 0:30:55 | 0:30:59 | |
Secretary of State has said on so
many occasions, this will stop and | 0:30:59 | 0:31:03 | |
we will not keep moving field
executives round and yet it | 0:31:03 | 0:31:07 | |
continues to happen and I will say,
quite honestly, that I asked the | 0:31:07 | 0:31:14 | |
question of a minister last year and
he answered me in good faith. He | 0:31:14 | 0:31:20 | |
said, the NHS I don't participate in
moving staff around, not only remain | 0:31:20 | 0:31:26 | |
unproven and nearly happened in the
Wirral a few weeks ago, the message | 0:31:26 | 0:31:30 | |
has got to go out that you do this
kind of stuff, we will make sure you | 0:31:30 | 0:31:34 | |
don't escape. The NHS has to be
accountable and those in | 0:31:34 | 0:31:38 | |
responsible. I think the Honourable
lady for those comments and in reply | 0:31:38 | 0:31:46 | |
to her questions, as I set out in my
opening remarks, I have asked NHS | 0:31:46 | 0:31:55 | |
improvement and NHS clarify the
circumstances under which those | 0:31:55 | 0:31:58 | |
rules were bound and facilitated as
found in the sport for bearing | 0:31:58 | 0:32:03 | |
responsibilities with the issues
with the trust and that was a | 0:32:03 | 0:32:06 | |
central question that she pulls on
one in which I await the answer. In | 0:32:06 | 0:32:14 | |
terms of the sense of cover-up and
things Janey, I would point out that | 0:32:14 | 0:32:18 | |
the Secretary of State has provided
leadership in terms of the culture | 0:32:18 | 0:32:22 | |
change around patient safety and the
recognition is across the House | 0:32:22 | 0:32:27 | |
following the full situation in mid
Staffordshire that changes need to | 0:32:27 | 0:32:31 | |
be made on patient safety and the
NHS itself as recognise that. NHS | 0:32:31 | 0:32:38 | |
improvement also has new leadership
and the this report themselves. In | 0:32:38 | 0:32:43 | |
terms of the changes that have been
in place, I look to the sea QC | 0:32:43 | 0:32:49 | |
regime and the Chief Inspector and
methodology and speaking to him | 0:32:49 | 0:32:53 | |
yesterday, every hospital has now
been visited with that new | 0:32:53 | 0:32:58 | |
methodology and that programme will
now start to accelerate and target | 0:32:58 | 0:33:05 | |
as following visits have done. The
methodology used for that has | 0:33:05 | 0:33:08 | |
evolved in terms of the importance
in areas such as staff service. | 0:33:08 | 0:33:12 | |
There are a number of measures that
have been made and special measures | 0:33:12 | 0:33:17 | |
regime is also very much at the
heart of that, so a number of steps | 0:33:17 | 0:33:22 | |
which are taken. Is underpinned by
the fact we need a balance between | 0:33:22 | 0:33:29 | |
the duty of candour, the ability for
people to learn from mistakes, which | 0:33:29 | 0:33:33 | |
will happen in an organisation, an
appointment with 5 million people. | 0:33:33 | 0:33:39 | |
The sense that people are able to
escape responsibility by moving | 0:33:39 | 0:33:43 | |
within the system. From my
discussions with people within the | 0:33:43 | 0:33:49 | |
NHS, there is very much a
recognition of that, a recognition | 0:33:49 | 0:33:53 | |
that has changed significantly but
clearly in the issues that come from | 0:33:53 | 0:33:57 | |
this report today, the House will
have to see further reassurance. As | 0:33:57 | 0:34:01 | |
for her question as to how I will
insure and the government will | 0:34:01 | 0:34:06 | |
ensure that these issues are
implemented and not covered up, I | 0:34:06 | 0:34:12 | |
don't think anyone doubts the
honourable lady will be using all | 0:34:12 | 0:34:17 | |
the Parliamentary tools to proceed
with this matter, including as a | 0:34:17 | 0:34:22 | |
senior Member of the House Select
Committee, I'm aware that other | 0:34:22 | 0:34:25 | |
Members of the House Select
Committee on Liverpool waiver tree, | 0:34:25 | 0:34:30 | |
it is a former shadow health
minister, will take a significant | 0:34:30 | 0:34:34 | |
interest in this issue and I know
the cheer of the House Select | 0:34:34 | 0:34:37 | |
Committee will do so and I have had
regular discussions and look forward | 0:34:37 | 0:34:42 | |
and intense and the fit and proper
test and the issues we take forward | 0:34:42 | 0:34:46 | |
as to how we benefit from the
expertise from her celebrity, it is | 0:34:46 | 0:34:49 | |
clear there have measures and it is
right that we recognise that much | 0:34:49 | 0:34:53 | |
work has been done in the NHS to
change this culture to ensure the | 0:34:53 | 0:34:58 | |
warning signs are there and insurers
and this never happens again. It's | 0:34:58 | 0:35:04 | |
clear that there are specific issues
in the report that need to be | 0:35:04 | 0:35:09 | |
answered and I share very much her
desire that is needed. There is | 0:35:09 | 0:35:14 | |
another ministerial statement to
follow and that although the debate | 0:35:14 | 0:35:18 | |
on matters to be raised before the
forthcoming settlement is not now | 0:35:18 | 0:35:23 | |
going to take place, no fewer than
19 honourable members wish to take | 0:35:23 | 0:35:28 | |
part in the debate on community
banking. There is a premium upon | 0:35:28 | 0:35:35 | |
brevity and having had these
important matters call aired, | 0:35:35 | 0:35:39 | |
affected no appeal to colleagues to
ask single sentence essay questions | 0:35:39 | 0:35:46 | |
without a great preamble for then we
will progress towards other matters. | 0:35:46 | 0:35:56 | |
My honourable friend will be aware
that he said that the situation was | 0:35:56 | 0:35:58 | |
at Liverpool prison with the trust
having no understanding of its | 0:35:58 | 0:36:03 | |
requirements and the role as health
provider, health care staff and a | 0:36:03 | 0:36:07 | |
very difficult situation. Does he
feel there is a need for better | 0:36:07 | 0:36:12 | |
liaison between health and justice?
Over these sorts of facilities in | 0:36:12 | 0:36:18 | |
prison? Is the CQC in a position to
carry out inspections or do they | 0:36:18 | 0:36:31 | |
need help? On the first point I
spoke with colleagues in the | 0:36:31 | 0:36:34 | |
Ministry of Justice yesterday on the
specific issue, I very much agree | 0:36:34 | 0:36:38 | |
with his position that standards of
care for those in prison should be | 0:36:38 | 0:36:43 | |
the same as those within the NHS
more widely, he will be aware that | 0:36:43 | 0:36:48 | |
NHS England have taken over
commissioning for health care | 0:36:48 | 0:36:52 | |
services 2013. Part of the changes
that have been made but they will | 0:36:52 | 0:36:57 | |
know that in the report there were
local factors like | 0:36:57 | 0:37:03 | |
conflict-of-interest referenced by
Dr Kirkup that goes to the heart of | 0:37:03 | 0:37:09 | |
the service in the local community
trust and in prisons. There were | 0:37:09 | 0:37:12 | |
local factors but he is right with
the wider issues that we need to | 0:37:12 | 0:37:15 | |
learn from. How many members of the
board failed to co-operate with this | 0:37:15 | 0:37:21 | |
scathing review and can you name
them what might only one member of | 0:37:21 | 0:37:28 | |
the board cooperated with the review
from which one can the juice that | 0:37:28 | 0:37:36 | |
the rest did not. Given I am
relatively new to this department, | 0:37:36 | 0:37:43 | |
it would be wise as a minister to
clarify to what extent individuals | 0:37:43 | 0:37:46 | |
should be named but I'm happy to
confirm that the chair of the board | 0:37:46 | 0:37:51 | |
did not cooperate. | 0:37:51 | 0:37:57 | |
Will the Minister agree with me that
this report shows that leadership | 0:37:59 | 0:38:04 | |
really matters in our local NHS and
what further steps can he take to | 0:38:04 | 0:38:09 | |
ensure that transparency, which is
so important to clinical quality and | 0:38:09 | 0:38:14 | |
patient safety can really be
understood as important for hospital | 0:38:14 | 0:38:20 | |
trusts. The on already is absolutely
correct and that is why we are | 0:38:20 | 0:38:24 | |
increasing the numbers of doctors by
25% and looking at how we increased | 0:38:24 | 0:38:29 | |
the number of clinicians in
leadership positions within trusts | 0:38:29 | 0:38:32 | |
and how we actually insure that
variants within leadership, which is | 0:38:32 | 0:38:38 | |
one of the key issues, NHS has
billions needed by the variance | 0:38:38 | 0:38:42 | |
between trusts is far too wide and
those are the issues I'm looking at. | 0:38:42 | 0:38:47 | |
Given that health is devolved to the
Scottish Government you might wonder | 0:38:47 | 0:38:52 | |
why I asked what I ask but will the
Minister of State reassure me that | 0:38:52 | 0:38:57 | |
the report will be shared with the
Scottish NHS and Scottish Government | 0:38:57 | 0:39:01 | |
and can he reassure me that as and
when senior appointments are made, | 0:39:01 | 0:39:05 | |
there will be an ongoing
constructive and informed dialogue | 0:39:05 | 0:39:07 | |
across the border and you will see
why I ask that question. | 0:39:07 | 0:39:12 | |
Very happy to give him that the
issuance and he raises a very | 0:39:12 | 0:39:16 | |
important point because it's not
just those moving within the United | 0:39:16 | 0:39:20 | |
Kingdom that is an issue, its
potential was moving to a charity | 0:39:20 | 0:39:25 | |
that is providing services to the
NHS, it might be to a private | 0:39:25 | 0:39:27 | |
company providing health care or
other roles in the health care | 0:39:27 | 0:39:31 | |
landscape. Did I press the minister
a little further on his reference to | 0:39:31 | 0:39:39 | |
work revolving doors and the
worrying statement that this is | 0:39:39 | 0:39:43 | |
facilitated by those who are tasked
with regulating it. Could I suggest | 0:39:43 | 0:39:47 | |
that the Minister also looks at
democratic accountability not just | 0:39:47 | 0:39:52 | |
within the appointments with
officials but also more widely in | 0:39:52 | 0:39:57 | |
the NHS. And very happy to look at
the suggestions. He's a member of | 0:39:57 | 0:40:04 | |
house Select Committee and I alluded
in my remarks, my desire to work | 0:40:04 | 0:40:09 | |
with members of the committee on
these issues. Mr Speaker, if you | 0:40:09 | 0:40:11 | |
look at the previous debate we had,
the statement was about culture in | 0:40:11 | 0:40:15 | |
this house and what was heart of
both my honourable friend's question | 0:40:15 | 0:40:20 | |
and the issues seen here, is the
issue of culture and the need for | 0:40:20 | 0:40:26 | |
that culture to change and the
Secretary of State has done a great | 0:40:26 | 0:40:29 | |
deal on patient safety to do that
and I'm happy to work with the | 0:40:29 | 0:40:35 | |
honourable member to take that
further. What lessons can be learned | 0:40:35 | 0:40:41 | |
by Liverpool community trust and
other underperforming trusts from | 0:40:41 | 0:40:46 | |
the successful turnaround of some 20
trusts under the government new | 0:40:46 | 0:40:49 | |
special measures scheme? | 0:40:49 | 0:40:54 | |
The honourable lady is quite right,
there are 37 trusts that have gone | 0:40:54 | 0:40:58 | |
into special motions but a number
have moved out not just of special | 0:40:58 | 0:41:03 | |
measures but from improvement into
good as well. That goes to a much | 0:41:03 | 0:41:07 | |
wider challenge within the NHS,
whether its procurement or workforce | 0:41:07 | 0:41:12 | |
planning, whether it's mentoring for
junior doctors. I met with the | 0:41:12 | 0:41:16 | |
family of a junior doctor last week,
regarding the issues around men | 0:41:16 | 0:41:21 | |
touring and support particularly in
the first year out of medical | 0:41:21 | 0:41:24 | |
College. There's a number of issues
which trusts have shown leadership | 0:41:24 | 0:41:27 | |
on and I think the key issue which
the special measures regime has | 0:41:27 | 0:41:32 | |
shown is the scope to use that best
practice much more widely across the | 0:41:32 | 0:41:34 | |
sixth. -- across the system. I agree
it vital we expose and tackle | 0:41:34 | 0:41:43 | |
failings in the NHS especially when
they put people at harm. Does the | 0:41:43 | 0:41:46 | |
Minister agree that this case
highlights that money is not always | 0:41:46 | 0:41:53 | |
the only answer, also effective and
responsible leadership and | 0:41:53 | 0:41:56 | |
management. At the heart of these
findings were what drove the issue | 0:41:56 | 0:42:00 | |
here is not money, he specifically
set that out in terms of the finance | 0:42:00 | 0:42:10 | |
services, the desire to seek
foundation trust status that led to | 0:42:10 | 0:42:14 | |
a wholly unrealistic cost
improvement plan, and link to that | 0:42:14 | 0:42:17 | |
it was the unwillingness to actually
address where issues arose as a | 0:42:17 | 0:42:22 | |
consequence of that. I would like to
thank my constituency neighbour the | 0:42:22 | 0:42:31 | |
Member for West language for all the
work she has done on this issue. To | 0:42:31 | 0:42:35 | |
reiterate the point is that have
been made, it's important we have | 0:42:35 | 0:42:38 | |
the right culture in our NHS but
also that those who compromise | 0:42:38 | 0:42:43 | |
patient safety should be brought to
task and be punished. And that we | 0:42:43 | 0:42:46 | |
should know about this on the action
that is taken to them. It will just | 0:42:46 | 0:42:51 | |
keep happening if not. My honourable
friend is absolutely right. If I | 0:42:51 | 0:42:58 | |
draw his attention to the statement
Ted Baker, the chief inspector of | 0:42:58 | 0:43:01 | |
hospitals has made, where he points
out one of the review findings which | 0:43:01 | 0:43:06 | |
is that the CTC are now in a better
position to find the challenge an | 0:43:06 | 0:43:13 | |
unsafe care and poor standards. That
is a finding from the doctor but it | 0:43:13 | 0:43:17 | |
also reflects the excellent work he
and his doctor had been doing to | 0:43:17 | 0:43:21 | |
ensure inspections are moving
forward and are much more rigorous. | 0:43:21 | 0:43:24 | |
In picking up the issues we have
today. As a member of the Justice | 0:43:24 | 0:43:31 | |
Select Committee we have taken a
particular interest in Liverpool | 0:43:31 | 0:43:34 | |
prison. Will he assure me this
review will look at the suicide | 0:43:34 | 0:43:38 | |
potential business to the system is
right? My honourable friend is right | 0:43:38 | 0:43:47 | |
to allude to learning those lessons,
particularly in the case of | 0:43:47 | 0:43:51 | |
vulnerable people in prison and the
risk accrued as a result. I spoke | 0:43:51 | 0:43:55 | |
with the Minister for offender
management yesterday, he was | 0:43:55 | 0:44:00 | |
actually at HMP Liverpool last week.
I know they have taken a great | 0:44:00 | 0:44:05 | |
interest in this report and I'm sure
will bring forward any further | 0:44:05 | 0:44:08 | |
actions in the usual way. Thank you
Mr Speaker. Does my honourable | 0:44:08 | 0:44:14 | |
friend the -- see an ongoing role
for the doctor in order to keep | 0:44:14 | 0:44:21 | |
putting things right? I am happy to
discuss the doctor Kirk moving | 0:44:21 | 0:44:27 | |
forward any future opportunities
like that. What is clear is this is | 0:44:27 | 0:44:32 | |
an excellent report and very much
builds on the work that he at | 0:44:32 | 0:44:36 | |
Morecambe. There is a huge amount
forced to take forward from the | 0:44:36 | 0:44:41 | |
findings in this report. Statement,
the Parliamentary Secretary for | 0:44:41 | 0:44:49 | |
pensions and financial inclusion.
Thank you. With permission, I will | 0:44:49 | 0:44:57 | |
make a statement following the
Opposition Day debate on state | 0:44:57 | 0:45:01 | |
pension age, the decision to
equalise the state pension age for | 0:45:01 | 0:45:05 | |
men and women dates back to 1995 and
addresses a long-standing inequality | 0:45:05 | 0:45:09 | |
between men and women's state
pension age. This change is part of | 0:45:09 | 0:45:14 | |
a wider social trend towards gender
equality but was also a decision | 0:45:14 | 0:45:17 | |
partly as a result of legal cases
relating to pension provisions. In | 0:45:17 | 0:45:28 | |
the Brown years, a state pension
fixed at 65 was deemed no longer | 0:45:28 | 0:45:32 | |
affordable sustainable. The pensions
act of 2007 deemed an increased to | 0:45:32 | 0:45:38 | |
age 60 six, six to seven and 68. The
Coalition government wanted further | 0:45:38 | 0:45:43 | |
changes under the 2011 pensions act
which accelerated equalisation of | 0:45:43 | 0:45:47 | |
women's state pension age and
brought forward increase in men and | 0:45:47 | 0:45:50 | |
women's state pension age to 66 by
20 20. Parliament considered a range | 0:45:50 | 0:45:59 | |
of alternative options resulting in
a 1.1 billion concession that capped | 0:45:59 | 0:46:02 | |
the maximum increase any woman would
see in her state pension age at 18 | 0:46:02 | 0:46:07 | |
months, relative to the 1995
timetable. Many members raise the | 0:46:07 | 0:46:12 | |
issue of communications in the
November debate. Since 1995, the | 0:46:12 | 0:46:19 | |
government has gone to significant
lengths to communicate these | 0:46:19 | 0:46:21 | |
changes. He were noted privately but
and an advertising campaign was | 0:46:21 | 0:46:25 | |
carried out. Individual letters were
posted out. Those affected by the | 0:46:25 | 0:46:30 | |
1995 act changes were sent letters
informing them of the changes with | 0:46:30 | 0:46:38 | |
the state pension age, with letters
sent to 1.2 million women. Those | 0:46:38 | 0:46:43 | |
affected by the 2011 act changes
were sent letters between January | 0:46:43 | 0:46:47 | |
2012 on November 2013 which involves
sending over 5 million letters on a | 0:46:47 | 0:46:53 | |
company leaflet. Life expectancy and
state spending what has driven these | 0:46:53 | 0:46:56 | |
changes. Society has changed in
countless ways since the 1950s and | 0:46:56 | 0:47:02 | |
life expectancy is no exception. A
girl born in 1951 was expected to | 0:47:02 | 0:47:06 | |
live to 81. A boy to 77. By 2018,
the latest ONS Coldwater begins show | 0:47:06 | 0:47:13 | |
an increase by over ten years for
nearly one girls and over 12 years | 0:47:13 | 0:47:17 | |
for boys. 292 and 89 respectively.
Life expectancy of old ages has also | 0:47:17 | 0:47:24 | |
gone up during this period and is
projected to continue to increase in | 0:47:24 | 0:47:27 | |
future years. These welcome
increases in life expectancy of | 0:47:27 | 0:47:33 | |
course have implications for the
state pension. As people live | 0:47:33 | 0:47:36 | |
longer, they invariably also spend
longer in retirement. Had we not | 0:47:36 | 0:47:40 | |
equalise the state pension, women
would be expected to stand over 40% | 0:47:40 | 0:47:44 | |
of their adult lives in retirement,
a proportion which would only | 0:47:44 | 0:47:48 | |
continue to increase. The situation
is not sustainable for any | 0:47:48 | 0:47:52 | |
government and means increasing
taxes for the working population. | 0:47:52 | 0:47:55 | |
Going as far as some campaigners
have urged and revoking the 1995 | 0:47:55 | 0:47:59 | |
pensions act would represent a loss
of over £70 billion to the public | 0:47:59 | 0:48:02 | |
purse. The state pension must be
maintained an unaffordable bidding | 0:48:02 | 0:48:07 | |
for future generations of pensioners
and taxpayers, this necessitated the | 0:48:07 | 0:48:11 | |
government 's actions to equalise
and then increase the state pension | 0:48:11 | 0:48:15 | |
age to the pensions act of 1995,
2007, 2011 and 20 14. Any further | 0:48:15 | 0:48:23 | |
transitional arrangement would, at
great cost, the government has | 0:48:23 | 0:48:28 | |
considered many options and all of
the proposals will be wrought with | 0:48:28 | 0:48:30 | |
substantial legal problems as well
as financial ones. Any amendment to | 0:48:30 | 0:48:35 | |
current legislation which creates a
new inequality between men and women | 0:48:35 | 0:48:39 | |
would unquestionably be highly
dubious as a matter of law. Causing | 0:48:39 | 0:48:42 | |
younger people to bear a greater
share of the cost of the pension | 0:48:42 | 0:48:45 | |
system in this way would be unfair
and undermine the principle of | 0:48:45 | 0:48:50 | |
intergenerational fairness that is
integral to our state pension | 0:48:50 | 0:48:52 | |
reforms. Let me turn to some of the
proposals from the debate. In | 0:48:52 | 0:48:56 | |
relation to the SNP, they seek a
full compensation package of at very | 0:48:56 | 0:49:02 | |
least the reverse of the 2011 act,
the SNP cost of this at £8 million | 0:49:02 | 0:49:08 | |
but we suggest this is a vast
underestimate. This will actually | 0:49:08 | 0:49:12 | |
cost the taxpayer over £30 billion
and potentially more. There is no | 0:49:12 | 0:49:16 | |
doubt the Scotland Act gives the
Scottish Government the power as it | 0:49:16 | 0:49:19 | |
needs to address this issue. The
party opposite have made multiple | 0:49:19 | 0:49:24 | |
suggestions with many seeking the
full compensation packages of 70 | 0:49:24 | 0:49:29 | |
billion, in addition they have
proposed in their manifesto keeping | 0:49:29 | 0:49:31 | |
the state pension age at 66. This
would cost over 250 billion more | 0:49:31 | 0:49:37 | |
than the government's preferred
timetable by 2045, 40 six. Payments | 0:49:37 | 0:49:41 | |
on this scale are an affordable and
cannot be justified. The key choice | 0:49:41 | 0:49:45 | |
the government faces is to increase
state pension age or pay lower | 0:49:45 | 0:49:52 | |
pensions, with an inevitable impact
on pensioner poverty. The only | 0:49:52 | 0:49:55 | |
alternative is to ask the working
generation to pay an even larger | 0:49:55 | 0:49:59 | |
share of their income to support
pensioners. I believe successive | 0:49:59 | 0:50:04 | |
governments have made appropriate
the difficult decisions to equalise | 0:50:04 | 0:50:08 | |
and increase the state pension age.
A significant concession was made in | 0:50:08 | 0:50:13 | |
the 2011 so no woman would see an
increase to her state pension age of | 0:50:13 | 0:50:16 | |
more than 18 months relative to the
1995 timetable. To renege on | 0:50:16 | 0:50:21 | |
decisions and further increase costs
to the public, especially the | 0:50:21 | 0:50:27 | |
working population, would be unfair
and unaffordable. I thank the | 0:50:27 | 0:50:34 | |
Minister for his statement and for
arranging to let me have sight of it | 0:50:34 | 0:50:38 | |
early this morning. The state
pension for women born in the 1950s | 0:50:38 | 0:50:42 | |
should be set in the wider context
of the government's I have to say | 0:50:42 | 0:50:48 | |
uninspiring track record on
pensions. Last July the government | 0:50:48 | 0:50:50 | |
announced it would be bringing
forward the increase in the state | 0:50:50 | 0:50:53 | |
pension age to 68 in 2037,
justifying this on the increase in | 0:50:53 | 0:51:00 | |
the life expectancy, however in the
same week the renowned expert on | 0:51:00 | 0:51:04 | |
life expectancy, Professor Michael
marmot described how a century long | 0:51:04 | 0:51:11 | |
rise in life expectancy was in his
words pretty close to having ground | 0:51:11 | 0:51:15 | |
to a halt. And had, in his words,
outlined since 2010. In part, I have | 0:51:15 | 0:51:22 | |
to say the consequence of government
policy on posterity. Since then, | 0:51:22 | 0:51:27 | |
statisticians from the official
office of statistics revealed by | 0:51:27 | 0:51:34 | |
2041, the life expectancy for men
and women would be a year less than | 0:51:34 | 0:51:39 | |
had been projected just two years
previously. In addition, the ONS has | 0:51:39 | 0:51:44 | |
revealed that though women continue
to live longer in good health than | 0:51:44 | 0:51:48 | |
men, their healthy life expectancy
has decreased since 2009. Yet more | 0:51:48 | 0:51:54 | |
evidence from Public Health England
shows how deep inequalities in a | 0:51:54 | 0:51:59 | |
healthy life expectancy remain. On
average, people in the UK are now | 0:51:59 | 0:52:06 | |
projected to live shorter lives than
previously estimated. Does the | 0:52:06 | 0:52:09 | |
Minister agree? Yet it is in this
context that the government is | 0:52:09 | 0:52:17 | |
failing women born in the 1950s.
This statement does nothing to | 0:52:17 | 0:52:22 | |
address the pensions injustice these
women face. The government has had | 0:52:22 | 0:52:28 | |
multiple opportunities to act, so
why is the Minister again refusing | 0:52:28 | 0:52:31 | |
to use the opportunity of a motion
passed by this House to do so to | 0:52:31 | 0:52:35 | |
take further steps. It is
unacceptable that we are having to | 0:52:35 | 0:52:41 | |
make the same argument and raise the
same points again, because this | 0:52:41 | 0:52:45 | |
government continues to refuse to
help these women who are suffering | 0:52:45 | 0:52:48 | |
and losing out due to the
acceleration of the state pension | 0:52:48 | 0:52:52 | |
age and lack of proper notice. This
issue is not going to go away. Why | 0:52:52 | 0:52:59 | |
does the government continued to act
as though it will? This statement is | 0:52:59 | 0:53:05 | |
sadly but not unsurprisingly yet
another example of the government's | 0:53:05 | 0:53:10 | |
failure to give women born in the
1950s the dignity and respect they | 0:53:10 | 0:53:14 | |
deserve. It is a missed opportunity
to take real action. We have all | 0:53:14 | 0:53:23 | |
heard stories, often heartbreaking,
from many thousands of women | 0:53:23 | 0:53:27 | |
affected by the changes of how the
situation they face is one of | 0:53:27 | 0:53:32 | |
desperation and fear of poverty.
Like Christine in my own | 0:53:32 | 0:53:37 | |
constituency, 62, now having to wait
till 66 to retire, husband had just | 0:53:37 | 0:53:41 | |
died, father had just died, and in
her words, not the cleaning jobs are | 0:53:41 | 0:53:46 | |
bad thing but I've never done a
cleaning job in my life, I'm now | 0:53:46 | 0:53:49 | |
having to do three to make ends meet
until such time until I can retire. | 0:53:49 | 0:53:56 | |
It is wrong. It is to the government
's shame that it refuses to | 0:53:56 | 0:53:59 | |
recognise the very real basis for
the fears of women like Christie. | 0:53:59 | 0:54:04 | |
What immediate measures for the
government take to adjust this | 0:54:04 | 0:54:08 | |
appalling situation. Does the
Minister understand how difficult it | 0:54:08 | 0:54:13 | |
is for many women in their 60s to
retrain and access decent work? What | 0:54:13 | 0:54:18 | |
support will his government offer
these women or will he repeat the | 0:54:18 | 0:54:22 | |
bizarre proposal made on the other
side of the House that they might | 0:54:22 | 0:54:27 | |
take up apprenticeships. As we have
repeatedly set out, there are | 0:54:27 | 0:54:34 | |
several immediate actions that the
government could and should take but | 0:54:34 | 0:54:38 | |
time and again they have refused.
Can the Minister explain why he | 0:54:38 | 0:54:42 | |
refuses to offer women a affected by
government changes to the state | 0:54:42 | 0:54:49 | |
pension age is a cost neutral option
to draw their state pension at age | 0:54:49 | 0:54:55 | |
64 as we have proposed. This would
allow women who choose it to retire | 0:54:55 | 0:55:00 | |
up to two years earlier. The pension
age is due to rise due to 66 by the | 0:55:00 | 0:55:05 | |
end of 2020, we reject the proposal
from the government to increase the | 0:55:05 | 0:55:12 | |
state pension age even further. We
believe and will act to put in place | 0:55:12 | 0:55:16 | |
a new review of the pension age
specifically tasked with developing | 0:55:16 | 0:55:21 | |
a flexible retirement policy to
reflect both the contributions made | 0:55:21 | 0:55:26 | |
by people, the wide variations in
life expectancy, and the arduous | 0:55:26 | 0:55:30 | |
conditions of some work. It is also
right to extend pension credit to | 0:55:30 | 0:55:36 | |
those who were due to retire before
the increase in the pension age. | 0:55:36 | 0:55:40 | |
Hundreds of thousands of women would
benefit from this offer. Will the | 0:55:40 | 0:55:45 | |
Minister look again at this
proposal? Can I say in conclusion, | 0:55:45 | 0:55:50 | |
this statement sadly it does nothing
to help 1950s born women. Action not | 0:55:50 | 0:55:57 | |
words are needed if the government
is to restore some of the faith and | 0:55:57 | 0:56:01 | |
dignity that many people feel they
have lost as a result of the | 0:56:01 | 0:56:04 | |
government 's refusal to act and to
introduce proper transitional | 0:56:04 | 0:56:08 | |
procedures. These are women, the
women of Britain, who built this | 0:56:08 | 0:56:13 | |
country. They deserve nothing less. | 0:56:13 | 0:56:25 | |
Make responses along the lines that
he seeks an independent review of | 0:56:25 | 0:56:28 | |
state pension age and the government
did that last year. The review was | 0:56:28 | 0:56:33 | |
independent of government and major
conclusions exactly as set out in | 0:56:33 | 0:56:37 | |
the Labour Party manifesto that
review made support to the assertion | 0:56:37 | 0:56:43 | |
that the government put forward
full. The second issue is that the | 0:56:43 | 0:56:46 | |
Labour Party used to be credible on
matters of finance, sadly that has | 0:56:46 | 0:56:50 | |
long gone. The Labour Party under
the previous Prime Minister Tony | 0:56:50 | 0:56:55 | |
Blair and Gordon Brown as the 2007
act which raised the state pension | 0:56:55 | 0:57:02 | |
age, we now have the bizarre
situation that the Labour Party | 0:57:02 | 0:57:05 | |
manifesto says that state pension
age should not go beyond 66. They | 0:57:05 | 0:57:10 | |
are going back upon their own
decision in 2007. The credibility is | 0:57:10 | 0:57:17 | |
sadly lacking and further
complicated by the reliance upon the | 0:57:17 | 0:57:25 | |
Shadow Secretary of State and he
repeated it today. He makes it clear | 0:57:25 | 0:57:30 | |
and I quote from his report, the
improvement in life expectancy at | 0:57:30 | 0:57:35 | |
birth, which had been around in one
increase every five years for women | 0:57:35 | 0:57:39 | |
and every 3.5 for men had slowed
since 2010 to a one-year increase | 0:57:39 | 0:57:46 | |
every ten years for women and every
six years for men. The point being | 0:57:46 | 0:57:49 | |
Mr Speaker, the increase is still
going ahead. It may have slowed to a | 0:57:49 | 0:57:54 | |
degree but is still rising. Life
expectancy continues to rise. The | 0:57:54 | 0:57:58 | |
Labour Party in 2004 agreed that the
office for National statistics | 0:57:58 | 0:58:03 | |
figures should be the figures that
are accepted and were then followed | 0:58:03 | 0:58:06 | |
by the Labour Party thereafter. The
ONS did a report last year in | 0:58:06 | 0:58:11 | |
December on the life expectancy at
birth and in 50 years' time by 2060 | 0:58:11 | 0:58:17 | |
seeks, I've expectancy is projected
to reach 98 years for females and 96 | 0:58:17 | 0:58:23 | |
for males. Going forward in 2018, we
have women that life expectancy on | 0:58:23 | 0:58:31 | |
90 to one birth and 89 for men. I
can briefly touch upon in relation | 0:58:31 | 0:58:37 | |
to the full working life strategy,
something the Labour Party used to | 0:58:37 | 0:58:41 | |
support and I'm sad to say they
don't seem to support. 1.2 million | 0:58:41 | 0:58:45 | |
people in employment over the age of
65, something that should be | 0:58:45 | 0:58:48 | |
celebrated. It is entirely right
that retraining might not be | 0:58:48 | 0:58:53 | |
suitable for everyone but it's also
right that governments of every kind | 0:58:53 | 0:58:57 | |
should give opportunities to those
who wish to take those things up. | 0:58:57 | 0:59:01 | |
The number of apprenticeships starts
with 53,004 people between the ages | 0:59:01 | 0:59:06 | |
of 45 and 59 and over 60, 3400 and a
nine-month period. That is thousands | 0:59:06 | 0:59:17 | |
of people taking thousands of
opportunities for retraining and it | 0:59:17 | 0:59:19 | |
should be supported. I remind the
House of the substantial business to | 0:59:19 | 0:59:26 | |
follow which is heavily subscribed,
so there is a premium upon brevity. | 0:59:26 | 0:59:30 | |
From both back and front benches
alike. Minimum preliminary, survey a | 0:59:30 | 0:59:37 | |
focus on the question to the
Minister. I will come the truth, | 0:59:37 | 0:59:42 | |
what impact assessments have the
carried out to assess the impact on | 0:59:42 | 0:59:47 | |
women born in the 1950s as a result.
There were multiple impact | 0:59:47 | 0:59:55 | |
assessments carried out in 1995, in
2007 and 2011 and these matters were | 0:59:55 | 1:00:03 | |
debated at great length in both
houses of parliament on an ongoing | 1:00:03 | 1:00:08 | |
basis. I thank the Minister for the
advance statement but it doesn't say | 1:00:08 | 1:00:15 | |
very much that's new. The government
seems unable to accept that | 1:00:15 | 1:00:19 | |
irrespective of their policy of
abstaining opposition days, there's | 1:00:19 | 1:00:23 | |
a clear majority in this house in
support of the 1950s women. Five | 1:00:23 | 1:00:26 | |
Conservative backbenchers, six
members voted for the SNP motion on | 1:00:26 | 1:00:33 | |
the 29th of November, that's the
second biggest rebellion in this | 1:00:33 | 1:00:37 | |
Parliament. Perhaps rather than just
more bluster and passing the buck, | 1:00:37 | 1:00:40 | |
the government should be looking at
bringing forward proposals to | 1:00:40 | 1:00:42 | |
address the motion. Improved
transitional arrangements for women | 1:00:42 | 1:00:47 | |
born after the 6th of April 1951
that have been affected by the | 1:00:47 | 1:00:53 | |
acceleration and increasing state
pension age. That is the will of has | 1:00:53 | 1:00:57 | |
expressed time and again and is not
good enough for the Minister to win | 1:00:57 | 1:01:00 | |
a red herring at the tender Scottish
parliament can resolve the | 1:01:00 | 1:01:02 | |
situation. The pension system and
the state pension age is reserved. | 1:01:02 | 1:01:08 | |
The Scotland Act is clear about
that, the Scottish Parliament cannot | 1:01:08 | 1:01:12 | |
make benefits by way of old-age.
It's not the job of the Scottish | 1:01:12 | 1:01:16 | |
Parliament to clean up the mess made
by this UK Government and is not the | 1:01:16 | 1:01:20 | |
job of the Scottish taxpayer to
effectively paid twice to mitigate | 1:01:20 | 1:01:24 | |
the impact of Tory cuts was the
government continues to ignore this | 1:01:24 | 1:01:30 | |
house and the voices of the 1950s
women, they should get ready for | 1:01:30 | 1:01:33 | |
further debate, questions, petitions
and amendments to legislation | 1:01:33 | 1:01:36 | |
because nobody is going away. This
week that had been celebrating the | 1:01:36 | 1:01:40 | |
suffrage campaign and its not by
coincidence that he was the women | 1:01:40 | 1:01:43 | |
have chosen their colours or their
campaign. That was | 1:01:43 | 1:01:49 | |
in the government must do them
justice and pay out. The honourable | 1:01:52 | 1:01:54 | |
gentleman will know full well that
the Scotland Act gave a variety of | 1:01:54 | 1:01:59 | |
powers under sections 26, 28 and 24
and crucially it is the case that if | 1:01:59 | 1:02:04 | |
an individual is of working age then
they can be addressed with | 1:02:04 | 1:02:11 | |
assistance by the Scottish
Government, not my words, set out in | 1:02:11 | 1:02:15 | |
coastal clear detail on the 22nd of
June by Jean Freeman, my opposite | 1:02:15 | 1:02:18 | |
number in Scotland and I remind the
honourable gentleman on the Scottish | 1:02:18 | 1:02:22 | |
National Party manifesto which
included a commitment to assess the | 1:02:22 | 1:02:26 | |
impact of these changes and the
options open to the Scottish | 1:02:26 | 1:02:29 | |
Government to provide support to
these women. The support, I suggest | 1:02:29 | 1:02:34 | |
is there, I have written to both my
opposite number and the leader of | 1:02:34 | 1:02:38 | |
the West Minister SNP saying that
you can go ahead, the British | 1:02:38 | 1:02:41 | |
Government is not objected to it in
any way that he should get on with | 1:02:41 | 1:02:45 | |
it. The Minister is aware of my
support for local women in Murray | 1:02:45 | 1:02:52 | |
and I supported the opposition on
the motion brought forward. Can I | 1:02:52 | 1:02:57 | |
ask you to update as for the women
looking at the legal challenge taken | 1:02:57 | 1:03:05 | |
forward by the women affected by
these changes. The honourable | 1:03:05 | 1:03:10 | |
gentleman will be aware there is a
legal challenge which has been | 1:03:10 | 1:03:13 | |
brought forward. I can't comment on
the outcome of it, it will be | 1:03:13 | 1:03:17 | |
resisted by the government. We do
not believe it has merit but clearly | 1:03:17 | 1:03:22 | |
that is a matter for the women to
pursue if they want to do but it | 1:03:22 | 1:03:28 | |
will be definitely be resisted. I'm
a fit the Minister missed the point, | 1:03:28 | 1:03:36 | |
never mind the anger of 1950s women.
Today my honourable friend for Stoke | 1:03:36 | 1:03:42 | |
Central, a citywide pensions road
show is happening. So many women | 1:03:42 | 1:03:46 | |
affected by this that demand has
outstripped supply and we cannot let | 1:03:46 | 1:03:48 | |
everybody in. When will these women
see answers and when will they have | 1:03:48 | 1:03:53 | |
transitional arrangements. This
matter was debated at great length | 1:03:53 | 1:04:01 | |
in 1995, 2007 under the Labour
government and was a matter that if | 1:04:01 | 1:04:04 | |
the Labour government wished to
alter the decision they could have | 1:04:04 | 1:04:07 | |
done so. That particular stage, they
take the view that they were | 1:04:07 | 1:04:12 | |
fiscally sensible and in 2011 this
matter was debated by Parliament and | 1:04:12 | 1:04:18 | |
there was a concession of £1.1
billion after much consideration by | 1:04:18 | 1:04:21 | |
the size by way of concession. I can
only assume that the minister really | 1:04:21 | 1:04:31 | |
doesn't get this. The consequences
and the strength of feeling, not | 1:04:31 | 1:04:37 | |
just amongst the 1950s women but
amongst colleagues is extremely | 1:04:37 | 1:04:41 | |
angry. I can offer some help, maybe,
if he was to meet with myself and | 1:04:41 | 1:04:47 | |
the honourable member for East
Worthing and Shoreham, we could | 1:04:47 | 1:04:50 | |
share with them the findings of
consultation we recently undertook | 1:04:50 | 1:04:53 | |
on behalf of the state pension
equality committee. Maybe then we | 1:04:53 | 1:05:01 | |
could talk him through the problem
and encourage him to do the right | 1:05:01 | 1:05:04 | |
thing. Acknowledge the problem and
come up with a respectful and serve. | 1:05:04 | 1:05:11 | |
With respect, this matter has been
debated since 1995, long before I | 1:05:11 | 1:05:16 | |
arrived in this house and before the
Honourable ready arrived in the size | 1:05:16 | 1:05:21 | |
and successive governments have
taken a similar view as to the | 1:05:21 | 1:05:24 | |
appropriateness of the action based
on affordability, work ability and | 1:05:24 | 1:05:29 | |
the quality of the legislation.
There is a shortage of time for any | 1:05:29 | 1:05:37 | |
business contacts. All the political
parties are involved in this, the | 1:05:37 | 1:05:44 | |
Conservative, Labour over 13 years
did little. None of us have a clean | 1:05:44 | 1:05:49 | |
hand. Secondly, I would urge the
Minister to address freedom possible | 1:05:49 | 1:05:55 | |
-- the possible options. Labourers's
cost neutral option, giving some | 1:05:55 | 1:06:00 | |
indication of transition and would
be Minister accept, the | 1:06:00 | 1:06:04 | |
Parliamentary ombudsman took some
cases and concluded that | 1:06:04 | 1:06:09 | |
communication has been absolutely
shocking by all the political | 1:06:09 | 1:06:12 | |
governments. -- governance. The
honourable gentleman walked through | 1:06:12 | 1:06:18 | |
the lobby with myself in 2011 to
pass the 2011 act when a Liberal | 1:06:18 | 1:06:23 | |
party was a party of financial
discipline. I believe that we took | 1:06:23 | 1:06:31 | |
the right decision at the particular
time for that the so-called cost | 1:06:31 | 1:06:35 | |
neutral option, I can sure the
honourable gentleman that it is | 1:06:35 | 1:06:40 | |
neither workable nor cost neutral
and certainly it is the case that on | 1:06:40 | 1:06:46 | |
an ongoing basis, the government is
sticking to the position it has put | 1:06:46 | 1:06:49 | |
forward since 1995, the Labour
government forward for 13 years and | 1:06:49 | 1:06:52 | |
the coalition government to give in
2011. The Minister has made a sad | 1:06:52 | 1:07:00 | |
binary choice between paying a lower
pensions or increasing state pension | 1:07:00 | 1:07:05 | |
age but tensions within government
spending is only one aspect. This | 1:07:05 | 1:07:11 | |
government has introduced
Corporation tax which will cost the | 1:07:11 | 1:07:16 | |
taxpayer £50 billion by the year
2025 other tax cuts will cost £50 | 1:07:16 | 1:07:22 | |
million, so my honourable friend for
Glasgow North, Parliamentary | 1:07:22 | 1:07:26 | |
arithmetic is in favour of changes.
Will he take control and actually | 1:07:26 | 1:07:29 | |
make some sensible choices? We will
massively disagree on economic | 1:07:29 | 1:07:37 | |
theory and taxation because we
believe it is right to cut taxes for | 1:07:37 | 1:07:42 | |
business because businesses are what
create the payments that pay for the | 1:07:42 | 1:07:47 | |
public sector that we also support.
The key choice, Mr Speaker, is | 1:07:47 | 1:07:53 | |
whether government is able to
increase state pension age or pay | 1:07:53 | 1:07:56 | |
lower pensions, that is about the
honourable gentleman seems unable to | 1:07:56 | 1:08:00 | |
accept but I do not agree with as
poster taxation. During the | 1:08:00 | 1:08:07 | |
Minister's rather disappointing and
predictable statement, he said again | 1:08:07 | 1:08:12 | |
as the Prime Minister has toonie and
an answer last year, that the women | 1:08:12 | 1:08:17 | |
will make more weight more than 18
months and it isn't true. Some women | 1:08:17 | 1:08:22 | |
awaiting six years seven months. Can
he explain in very simplistic terms | 1:08:22 | 1:08:28 | |
how it is these women are wrong and
the government are right because | 1:08:28 | 1:08:31 | |
these women are waiting and waiting
and they are not getting their | 1:08:31 | 1:08:34 | |
pensions. I can refer him to the
point that I made in the speech by | 1:08:34 | 1:08:40 | |
way of opening on the statement
earlier. The simple point is that | 1:08:40 | 1:08:44 | |
the 1995 act brought forward state
pension age to 65. The Labour | 1:08:44 | 1:08:50 | |
government then increase that foot
of the coalition government then | 1:08:50 | 1:08:53 | |
increased and accelerated the
process early for that reason why it | 1:08:53 | 1:08:56 | |
is referred as an 18 month
acceleration in 2011 is because that | 1:08:56 | 1:09:00 | |
is relative to the 1995 act
timetable. | 1:09:00 | 1:09:04 | |
I recently attended the launch of
the WASPI Women in my constituency | 1:09:07 | 1:09:11 | |
and one issue that was raised was
the issue of the arbitrary deadline | 1:09:11 | 1:09:16 | |
of the 31st of March of this year
for those wishing to make a | 1:09:16 | 1:09:20 | |
complaint. The lack of notice they
received about these proposed | 1:09:20 | 1:09:25 | |
changes. Can the Minister confirm
that as a deadline on the 31st of | 1:09:25 | 1:09:29 | |
March and the reason for it? I can
get a precise answer to that but I | 1:09:29 | 1:09:36 | |
will write to him on that specific
point but it is the case is the | 1:09:36 | 1:09:39 | |
maladministration claims being
brought whether it is to the | 1:09:39 | 1:09:42 | |
Independent Case Examiner or whether
it is through the ombudsman itself. | 1:09:42 | 1:09:47 | |
I will write to him with the
details. We now come to the Select | 1:09:47 | 1:09:52 | |
Committee Statement. The honourable
lady, the member for Wakefield, the | 1:09:52 | 1:09:57 | |
chair of the environmental audit
committee will speak on the subject | 1:09:57 | 1:10:03 | |
for up to ten minutes, during which,
I remind the House, no interventions | 1:10:03 | 1:10:08 | |
will be taken. The conclusion of the
statement, I will call honourable | 1:10:08 | 1:10:11 | |
members to put questions on the
subject of the statement and call | 1:10:11 | 1:10:14 | |
the honourable member for Wakefield
to respond to these in turn. Members | 1:10:14 | 1:10:18 | |
can expect to be called only once.
Interventions should be questions | 1:10:18 | 1:10:25 | |
and should be brief. The front bench
may take part in questioning. Thank | 1:10:25 | 1:10:33 | |
you very much Mr Speaker, I am
grateful to you and the Backbench | 1:10:33 | 1:10:37 | |
Business community for giving me the
opportunity make this statement on | 1:10:37 | 1:10:40 | |
behalf of the environmental audit
committee about oversight report of | 1:10:40 | 1:10:44 | |
this session. I'm delighted to share
with has a religious report. The | 1:10:44 | 1:10:48 | |
Ministry of Justice and
environmental sustainability, our | 1:10:48 | 1:10:52 | |
committee's remit includes carrying
and regular sustainability audits of | 1:10:52 | 1:10:57 | |
government departments and agencies. | 1:10:57 | 1:11:04 | |
And, working closely with the
National Audit Office, we look at | 1:11:04 | 1:11:08 | |
whether departments are doing enough
to meet their commitments. In the | 1:11:08 | 1:11:14 | |
last Parliament, we published
sustainability audit on the Treasury | 1:11:14 | 1:11:17 | |
and on the Department for Transport
for the stop --. This is... Why did | 1:11:17 | 1:11:26 | |
we choose the Minister of Justice?
The Government is the largest... The | 1:11:26 | 1:11:35 | |
Government should be leading from
the front on sustainability. It has | 1:11:35 | 1:11:38 | |
signed up to the UN's global goals,
and the green and Government | 1:11:38 | 1:11:43 | |
commitments, which can commit
departments to reduce their impact | 1:11:43 | 1:11:47 | |
on the environment, and it is
committed to Government buying | 1:11:47 | 1:11:51 | |
standards on procurement. These
three things, the global goals, the | 1:11:51 | 1:11:55 | |
commitments, and the buying
standards are all aimed at improving | 1:11:55 | 1:12:00 | |
sustainability. The Ministry of
Justice has the second-largest | 1:12:00 | 1:12:04 | |
estate in Government across 1600
sites. It accounts for 20% | 1:12:04 | 1:12:07 | |
Government's greenhouse gas, waste
and water emissions. It is the | 1:12:07 | 1:12:14 | |
second largest buyer of goods and
services in Government. It spent | 1:12:14 | 1:12:18 | |
£4.6 billion through external
suppliers in 2015-2016. The | 1:12:18 | 1:12:29 | |
committee recognises the financial
pressures that the courts and prison | 1:12:29 | 1:12:33 | |
services are under, but being green
brings franchise still -- financial | 1:12:33 | 1:12:38 | |
benefits. By improving the way that
they use energy, waste and water. | 1:12:38 | 1:12:46 | |
So, the ministry is committed to
putting sustainable development at | 1:12:46 | 1:12:50 | |
the heart of everything it does, and
we, with the assistance of the NAR | 1:12:50 | 1:12:54 | |
examined whether this was happening.
First, we were disappointed that the | 1:12:54 | 1:12:58 | |
sustainable goals were not mentioned
in the ministry's departmental plan, | 1:12:58 | 1:13:04 | |
despite the Government promising us
that they would appear in every | 1:13:04 | 1:13:07 | |
departmental plan. This is a
worrying trend across Government. | 1:13:07 | 1:13:13 | |
Second, how audit and covered
significant weaknesses relating to | 1:13:13 | 1:13:16 | |
how the ministry manages its sites,
its buildings and refurbishment | 1:13:16 | 1:13:20 | |
projects, is carbon emissions,
vehicle fleet, and its approach to | 1:13:20 | 1:13:24 | |
policy-making. On sites, the
ministry's estate is one of the most | 1:13:24 | 1:13:29 | |
ecological diverse in Government.
Its prison and immigration removal | 1:13:29 | 1:13:35 | |
Centre and centres to contain ten
sites are specific interest. Only | 1:13:35 | 1:13:41 | |
two of which are in a favourable
position. We heard about one | 1:13:41 | 1:13:50 | |
contract who destroyed a national
important protected orchid meadow | 1:13:50 | 1:13:58 | |
but was not penalised or held to
account through the contract. The | 1:13:58 | 1:14:01 | |
ministry wants all of its new
buildings to achieve an excellent | 1:14:01 | 1:14:05 | |
rate under the building research
environmental assessment method, so | 1:14:05 | 1:14:13 | |
new buildings are excellent. It
wants... We found that the ministry | 1:14:13 | 1:14:20 | |
has not assessed the environmental
performance for nearly two thirds of | 1:14:20 | 1:14:25 | |
its new build and refurbishment
projects. Of the 54 that did get the | 1:14:25 | 1:14:29 | |
significant Amax certificate, 14
rail to meet the required standard. | 1:14:29 | 1:14:40 | |
But, also, risk the health of
inmates from overheating. When the | 1:14:40 | 1:14:47 | |
analysis being put forward, it is
predicated on good or at excellent | 1:14:47 | 1:14:51 | |
standards being achieved, so the
building costs more to one or to | 1:14:51 | 1:14:55 | |
manage, so that it is not actually
meeting the project case that has | 1:14:55 | 1:14:59 | |
been set out. We also examined her
Majesty's courts and Tribunal | 1:14:59 | 1:15:06 | |
services. Since 2010, 103
magistrates and 54 County Court have | 1:15:06 | 1:15:12 | |
closed, and the ministry is
consulting on plans to close nine | 1:15:12 | 1:15:15 | |
more courts. There were gaps in
guidance to staff on how to sell off | 1:15:15 | 1:15:19 | |
court tribunal is, and the oversight
of the contractors also showed gaps. | 1:15:19 | 1:15:25 | |
For example, people tasked with
selling these buildings were unaware | 1:15:25 | 1:15:28 | |
of their statutory duty to tell
historic England if the buildings | 1:15:28 | 1:15:33 | |
were listed, or of particular local
significance, and failed to minimise | 1:15:33 | 1:15:41 | |
the risk of new owners letting the
buildings fall into disrepair. In my | 1:15:41 | 1:15:48 | |
own constituency, a building has
been left to fall into ruins after | 1:15:48 | 1:15:55 | |
being sold, and that leads local
taxpayers to foot the bill. On | 1:15:55 | 1:15:59 | |
flights, and reducing its carbon
footprint, the ministry did not meet | 1:15:59 | 1:16:06 | |
its targets. In fact, domestic
flights are increasing. We found | 1:16:06 | 1:16:10 | |
that people flying between London
and Anglesey 108 flights in one | 1:16:10 | 1:16:16 | |
year, when there is a perfectly good
train service. 98 flights between | 1:16:16 | 1:16:21 | |
London and Cardiff. Flight also
between Manchester and... The | 1:16:21 | 1:16:28 | |
ministry did not provide any
explanation for the increase. On | 1:16:28 | 1:16:31 | |
vehicles, in the autumn by object,
the Chancellor committed that 25% of | 1:16:31 | 1:16:37 | |
all cars in central Government
departments should be electric, yet | 1:16:37 | 1:16:40 | |
only two of the ministry's 1500
vehicle car Ultra low emission | 1:16:40 | 1:16:46 | |
vehicles. We find that the ministry
does not systematically undertaken | 1:16:46 | 1:16:51 | |
by mental impact assessments for new
policies, and there is a particular | 1:16:51 | 1:16:54 | |
example of this: The Government
tried to remove the fix cap... But, | 1:16:54 | 1:17:01 | |
failed to look at the environmental
impact of this decision, despite | 1:17:01 | 1:17:06 | |
environmental groups saying that it
would have a chilling effect on | 1:17:06 | 1:17:10 | |
access to environmental justice.
During our hearing, the ministry | 1:17:10 | 1:17:13 | |
acknowledged many of its
shortcomings, and has been working | 1:17:13 | 1:17:17 | |
to improve its oversight, consistent
and performance. This is welcome, | 1:17:17 | 1:17:21 | |
but we urge it to improve in three
areas: To follow it in guidance when | 1:17:21 | 1:17:28 | |
making policy. There is a certain
irony about the department tasked | 1:17:28 | 1:17:33 | |
with upholding the law failing to
meet its own legal requirements in | 1:17:33 | 1:17:38 | |
certain areas, and providing
guidance to staff and contractors, | 1:17:38 | 1:17:43 | |
and finally, to improve oversight of
governments were sustainability, | 1:17:43 | 1:17:46 | |
including governance of its
contractors, particular, for | 1:17:46 | 1:17:51 | |
example, on buying standards around
prison food. So, our | 1:17:51 | 1:17:56 | |
recommendations, we want the
ministry to set more ambitious | 1:17:56 | 1:18:00 | |
targets for 2019 - 2020. We found
that it was setting its targets too | 1:18:00 | 1:18:06 | |
low. So that then they could say, we
have met them a year or two early. | 1:18:06 | 1:18:11 | |
That is no good. They need to be
setting on the right side of | 1:18:11 | 1:18:14 | |
impossible. They need to develop the
sustainability policies and set the | 1:18:14 | 1:18:20 | |
global goals and set that Howard
will meet existing targets. It is to | 1:18:20 | 1:18:26 | |
improve it estate management and
systematically collect environmental | 1:18:26 | 1:18:29 | |
ratings that are bigots for all
refurbishment and new build | 1:18:29 | 1:18:33 | |
projects. It should survive -- --
rating certificates for all of our | 1:18:33 | 1:18:40 | |
bushman and new build projects. It
should provide guidance for | 1:18:40 | 1:18:44 | |
oversight on contractors but how to
manage estate sustainably. This is | 1:18:44 | 1:18:49 | |
including an specific scientific
interests. This is particularly | 1:18:49 | 1:18:54 | |
important in the wake of the
collapse of Carillion which was an | 1:18:54 | 1:19:00 | |
contractor on several prisons that
we look at. They must show | 1:19:00 | 1:19:05 | |
leadership to the rest of central
Government on sustainability. So, Mr | 1:19:05 | 1:19:09 | |
Speaker, if the UK is to be the at
least for grant of sustainability, | 1:19:09 | 1:19:14 | |
the Government must lead by example.
The Ministry of Justice is failing | 1:19:14 | 1:19:21 | |
to meet this requirement. If the
ministry's responds to our report, I | 1:19:21 | 1:19:25 | |
expect to see a clear plan X getting
how can sons and addressing our | 1:19:25 | 1:19:31 | |
goals. I look forward to the
Government to's response, and in | 1:19:31 | 1:19:38 | |
this overlooked but vital part of
Government activity. I thank you Mr | 1:19:38 | 1:19:44 | |
Speaker and the House for giving me
the opportunity to raise this today. | 1:19:44 | 1:19:52 | |
Thank you very much, Mr Speaker. I
would like to thank the honourable | 1:19:52 | 1:19:56 | |
member for Wakefield for her very
detailed and considered report. And | 1:19:56 | 1:20:00 | |
the point that she makes today,
these invaluable point that she has | 1:20:00 | 1:20:06 | |
made and the Ministry of Justice
will respond in due course in the | 1:20:06 | 1:20:10 | |
usual way. Except for that grace
less tribute for the minister, such | 1:20:10 | 1:20:17 | |
has been a force in the incisiveness
as well as the cobwebs of scope of | 1:20:17 | 1:20:21 | |
the honourable lady's statement.
That she has left the House | 1:20:21 | 1:20:25 | |
speechless. I trust that the
appropriate extract from the | 1:20:25 | 1:20:31 | |
official report will be put up on
her wall in one of the rooms in her | 1:20:31 | 1:20:38 | |
home.
LAUGHTER | 1:20:38 | 1:20:43 | |
We also now come to the second
select committee statement. The | 1:20:43 | 1:20:47 | |
committee is the same as the
previous treatment, and I called the | 1:20:47 | 1:20:51 | |
chair of the work and pensions
select committee. Mr Speaker I hope | 1:20:51 | 1:20:58 | |
that I will leave the House silenced
by my report, to them. But, to do so | 1:20:58 | 1:21:04 | |
in record speed. On the 5th of
December, last year, the House | 1:21:04 | 1:21:10 | |
passed a motion saying that the you
select committee for Work and | 1:21:10 | 1:21:15 | |
Pensions Secretary reviewed the five
project assessment reviews on | 1:21:15 | 1:21:22 | |
Universal Credit. The Government
went beyond that. All of the papers | 1:21:22 | 1:21:26 | |
were almost unreadable. That, they
are now, thanks to turn from pigs is | 1:21:26 | 1:21:33 | |
into a silk purse. Owes everything
to our clerk and when members read | 1:21:33 | 1:21:40 | |
the report, they will understand
precisely our debt to him. My | 1:21:40 | 1:21:45 | |
request, Mr Speaker is to ask your
help on two fronts. First of all, | 1:21:45 | 1:21:50 | |
this huge project | 1:21:50 | 1:21:51 | |
help on two fronts. First of all,
this huge project, huge in | 1:21:51 | 1:21:56 | |
Government finance, huge in respect
of what it could and might do to our | 1:21:56 | 1:22:01 | |
constituents, is based on no
business case, at all. I am | 1:22:01 | 1:22:04 | |
therefore, very pleased, indeed, to
see my friend now in the Treasury, | 1:22:04 | 1:22:11 | |
sitting there, may I ask through
you, Mr Speaker that he does not | 1:22:11 | 1:22:19 | |
approve further development of
Universal Credit until the Treasury | 1:22:19 | 1:22:23 | |
has received the... And secondly,
these reports talk about the | 1:22:23 | 1:22:31 | |
industrialisation of claims. This is
a roll-out of a benefit which is, to | 1:22:31 | 1:22:38 | |
put it at its kind list, hit and
miss. -- kindest. The problem is | 1:22:38 | 1:22:44 | |
that it could bring to our
constituents are beyond imagination. | 1:22:44 | 1:22:48 | |
The cost to taxpayers could be and
will be enormous. Might I therefore, | 1:22:48 | 1:22:56 | |
seek your help in getting time to
allow many more members of the House | 1:22:56 | 1:23:01 | |
of Commons to comment about how
Universal Credit is affecting or not | 1:23:01 | 1:23:08 | |
affecting their constituents. May I
by thanking you the opportunity of | 1:23:08 | 1:23:12 | |
presenting this report as a select
committee to the House. Thank you, | 1:23:12 | 1:23:22 | |
Mr Speaker. Just very briefly to
thank the right honourable gentleman | 1:23:22 | 1:23:26 | |
for Birkenhead for the report.
Obviously, I have been before his | 1:23:26 | 1:23:31 | |
select committee May last few days,
and the number of his points have | 1:23:31 | 1:23:35 | |
made in the report, he raised as
well in that session that we had to. | 1:23:35 | 1:23:40 | |
But, of course, consider this, and
my up honourable friend has also | 1:23:40 | 1:23:45 | |
indicated obviously that we will
work closely together with the | 1:23:45 | 1:23:48 | |
Treasury in reviewing the contents
of this, thank you. Thank you, Mr | 1:23:48 | 1:23:57 | |
Speaker. In paying tribute to the
excellent work by the chavvy select | 1:23:57 | 1:24:02 | |
committee, and the select committee
as a whole, can I -- by the chair of | 1:24:02 | 1:24:09 | |
the select committee. Does my right
honourable friend share my concern | 1:24:09 | 1:24:15 | |
that over seven years after it was
first announced, and repeated resets | 1:24:15 | 1:24:21 | |
and delays, it is clear that the
Government still cannot provide | 1:24:21 | 1:24:26 | |
evidence for its key claim that
people claiming Universal Credit | 1:24:26 | 1:24:30 | |
will be more likely to find
employment, not just the single | 1:24:30 | 1:24:36 | |
unemployed people without children,
before cuts to work allowances, who | 1:24:36 | 1:24:40 | |
appear any statistics that the
Government sites, but the few full | 1:24:40 | 1:24:44 | |
range of people, single parents, the
self-employed, carers, disabled | 1:24:44 | 1:24:51 | |
people, who are now claiming
Universal Credit, as the full | 1:24:51 | 1:24:53 | |
service is rolled out? I am
immensely grateful for that | 1:24:53 | 1:24:59 | |
question, because the central part
of any business case is based on | 1:24:59 | 1:25:04 | |
that there would be this movement
from benefit into work. We know that | 1:25:04 | 1:25:07 | |
the Government has no up to date
data on that yet it is pressing | 1:25:07 | 1:25:12 | |
ahead. That is why I ask my friend
who is at the Treasury that they do | 1:25:12 | 1:25:17 | |
not sanction further cash for this
programme until the Department for | 1:25:17 | 1:25:22 | |
Work and Pensions has produced that
business case. Thank you, Mr | 1:25:22 | 1:25:28 | |
Speaker. I want to begin by thanking
the work of the chair of the DWP | 1:25:28 | 1:25:34 | |
committee for this report. Given
that the key economic assumption, | 1:25:34 | 1:25:40 | |
and allying Universal Credit will
deliver much improvement employment | 1:25:40 | 1:25:46 | |
outcomes, and a full business case
for the biggest reform of the | 1:25:46 | 1:25:49 | |
welfare state in 50 years have not
been made, that he share my concern | 1:25:49 | 1:25:54 | |
is that claimants have been pushed
into dire financial straits because | 1:25:54 | 1:26:00 | |
it is not fit for purpose. We know
that the Government says that it is | 1:26:00 | 1:26:04 | |
confident about the progress of
Universal Credit, but does he agree | 1:26:04 | 1:26:08 | |
that any say be more openness about
its internal review? | 1:26:08 | 1:26:15 | |
The internal sharing of information.
My underscore what the honourable | 1:26:15 | 1:26:23 | |
lady says that there were
constituents are on the rough end of | 1:26:23 | 1:26:28 | |
this if it all goes wrong. To use
your terminology, pithy question. | 1:26:28 | 1:26:36 | |
Does the honourable gentleman feel
that the process so far is one where | 1:26:36 | 1:26:41 | |
it is IT focused and not person
focused than that of the problem. | 1:26:41 | 1:26:44 | |
Does he agree. It is neither that
nor person focused. We come to the | 1:26:44 | 1:26:59 | |
backbench motion on community bank
closures. To move the motion I call | 1:26:59 | 1:27:03 | |
Ruth Sneath. Can I thank the
Backbench Business committee for | 1:27:03 | 1:27:11 | |
granting this debate for sponsoring
this timing and incredibly important | 1:27:11 | 1:27:16 | |
intervention. Can I thank colleagues
for their support of today's debate. | 1:27:16 | 1:27:22 | |
A vote on a Friday afternoon just
before recess demonstrate how | 1:27:22 | 1:27:25 | |
important this issue is two hours
and the communities that we | 1:27:25 | 1:27:29 | |
represent. Madam Deputy Speaker,
like many colleagues, I am angry and | 1:27:29 | 1:27:36 | |
frustrated, as are my constituents
in the last three months, and the | 1:27:36 | 1:27:42 | |
towns I am so privilege to represent
have all had bank branch closure | 1:27:42 | 1:27:47 | |
announcements, ripping the financial
heart out of my towns. What on earth | 1:27:47 | 1:27:52 | |
is happening? The high street bank
has played a fundamental role in our | 1:27:52 | 1:27:56 | |
local economy. And our local
communities for generations. It has | 1:27:56 | 1:28:01 | |
been a rear constant in the
ever-changing landscape of our | 1:28:01 | 1:28:05 | |
market towns and city centres. These
bank branches have provided and | 1:28:05 | 1:28:09 | |
continue to provide a vital function
for the local customers. Whether it | 1:28:09 | 1:28:15 | |
is the pensioner withdrawing her
money for the week or the young | 1:28:15 | 1:28:21 | |
family looking to take their first
steps onto the housing ladder. I am | 1:28:21 | 1:28:27 | |
sure you like I can remember the
intake -- being taken into the bank | 1:28:27 | 1:28:32 | |
to sign up for your first account. A
big moment. For me it was a NatWest | 1:28:32 | 1:28:39 | |
account with a ceramic piggy bank.
As you know, Madam Deputy Speaker, | 1:28:39 | 1:28:44 | |
as I proudly represent the
potteries, how could I not celebrate | 1:28:44 | 1:28:47 | |
the fact that my piggy bank was a
genuine piggy bank, Woody, made in | 1:28:47 | 1:28:53 | |
my constituency. These cherished
childhood memories for so many of us | 1:28:53 | 1:28:58 | |
suddenly may not be may not be
available to the next generation. | 1:28:58 | 1:29:03 | |
For millions of people up and down
the country the services that local | 1:29:03 | 1:29:06 | |
rented provide are as necessary as
they have ever been but they are | 1:29:06 | 1:29:09 | |
disappearing. Thank you for giving
me and I congratulate her on | 1:29:09 | 1:29:17 | |
securing the debate, my first bank
was the Midland bank at 11. I have | 1:29:17 | 1:29:21 | |
been a member of at 424 years much
my shock. In relation to shrinking | 1:29:21 | 1:29:26 | |
bank services, following NatWest get
the decision to close the banks in | 1:29:26 | 1:29:36 | |
my constituency, available now on
the B1 banked left and Michael | 1:29:36 | 1:29:40 | |
constituency, 58,000 people within
the geographical area with one bank. | 1:29:40 | 1:29:43 | |
Does she agree with me that it is a
shocking failure of the banking | 1:29:43 | 1:29:47 | |
system and banks are not following
through on the banking schemes they | 1:29:47 | 1:29:51 | |
are meant to be doing an
communities. I agree with my | 1:29:51 | 1:29:56 | |
honourable friend and many others
won't agree. There is a genuine | 1:29:56 | 1:30:07 | |
issue about the responsibilities of
community banking because, Madam | 1:30:07 | 1:30:11 | |
Deputy Speaker, when I got my first
paying in book, there were 20,585 | 1:30:11 | 1:30:15 | |
branches across the country. By
2012, that figure had dropped to | 1:30:15 | 1:30:23 | |
just 8837. In the last three years
alone, we have seen a further 1500 | 1:30:23 | 1:30:27 | |
branches closed. That doesn't
include the announcement of further | 1:30:27 | 1:30:31 | |
closures made in the last three
months the hole that these closures | 1:30:31 | 1:30:37 | |
the bang goes far beyond an empty
shop front and for the elderly or | 1:30:37 | 1:30:41 | |
disabled, a three mile journey to
the nearest branch is more than an | 1:30:41 | 1:30:44 | |
inconvenience. In my constituency,
we are facing the loss of well use | 1:30:44 | 1:30:52 | |
local bank branches. And the impact
on local residents and local | 1:30:52 | 1:30:56 | |
businesses will be severe. We are
facing the prospect of losing our | 1:30:56 | 1:31:02 | |
very last bank branch, a local
Lloyds. Roseland is the mother | 1:31:02 | 1:31:06 | |
tongue of the potteries, as the
whole house will be aware. It is on | 1:31:06 | 1:31:11 | |
to the school of art and the
Wellworth Institute report filth of | 1:31:11 | 1:31:16 | |
October to the outstanding Titanic
Brewery. If these guys go ahead, | 1:31:16 | 1:31:20 | |
there will no longer be a solitary
single bank. What message does that | 1:31:20 | 1:31:24 | |
send to a community that are doing
everything it can to support local | 1:31:24 | 1:31:29 | |
businesses and improve our town
centre. When did community banking | 1:31:29 | 1:31:32 | |
become a phrase devoid of meaning?
In Kidsgrove on Tunstall, Co-op | 1:31:32 | 1:31:37 | |
customers are faced with the
prospect of losing their local | 1:31:37 | 1:31:39 | |
branches. The last remaining Co-op
banks in my constituency. As a | 1:31:39 | 1:31:45 | |
resident of Tunstall and the
customer myself, I know how popular | 1:31:45 | 1:31:49 | |
these branches are and the impact of
the disappearance. Walk into any one | 1:31:49 | 1:31:54 | |
of these branches at virtually any
time of day and you will find people | 1:31:54 | 1:31:58 | |
queueing. They are used by hundreds
of residents as well as local | 1:31:58 | 1:32:01 | |
businesses. Petitions against the
closure have already attracted | 1:32:01 | 1:32:05 | |
thousands of signatures. Residents
have contacted me about what these | 1:32:05 | 1:32:09 | |
closures mean for them. I must thank
Cazalet Carl Robinson for leading | 1:32:09 | 1:32:15 | |
the campaign, collecting over 1200
signatures so far and to Tom | 1:32:15 | 1:32:19 | |
Simpson, Lucy Kelly and the local
traders in Tunstall and Tunstall | 1:32:19 | 1:32:21 | |
market for their efforts as well as
the wonderful Jim Cartwright for her | 1:32:21 | 1:32:26 | |
coordination of the campaign. These
closures will have an immediate | 1:32:26 | 1:32:32 | |
effect and impact on people's lives
for the iPad from elderly | 1:32:32 | 1:32:37 | |
constituents who use the Tunstall
Co-op branch who will be forced | 1:32:37 | 1:32:40 | |
instead to travel three miles by
unreliable public transport to a | 1:32:40 | 1:32:44 | |
city centre with no public
conveniences. People in in their 70s | 1:32:44 | 1:32:51 | |
and 80s for those with a disability,
this is more than an inconvenience, | 1:32:51 | 1:32:54 | |
it is a genuine struggle. This was
brought home to me by one story I | 1:32:54 | 1:32:59 | |
have from a constituent whose
parents have used this band for many | 1:32:59 | 1:33:01 | |
years. They are not technologically
savvy, a weakness I and I'm sure | 1:33:01 | 1:33:06 | |
others across the House share and
they find it difficult to use an ATM | 1:33:06 | 1:33:10 | |
to pay for things in shops using
debit cards. If the House but humour | 1:33:10 | 1:33:14 | |
me just for a moment, I would like
to quote from my constituent about | 1:33:14 | 1:33:18 | |
what he has to say about the
closure... My parents are 81 and 83 | 1:33:18 | 1:33:23 | |
years old. They have used the Co-op
bank in Tunstall for many years. The | 1:33:23 | 1:33:29 | |
staff nor my parents very well. They
are exceptionally helpful, | 1:33:29 | 1:33:34 | |
supportive, patient and ensure that
the understand everything that they | 1:33:34 | 1:33:36 | |
need to when they leave. Knowing
that my parents have this kind of | 1:33:36 | 1:33:41 | |
support when I am unable to be there
every day provides me with a great | 1:33:41 | 1:33:44 | |
deal of reassurance. I am extremely
grateful for this. I am sure we all | 1:33:44 | 1:33:50 | |
know people who benefit from this
level of personal service and for | 1:33:50 | 1:33:56 | |
who the faceless and building world
of online banking simply will not | 1:33:56 | 1:34:00 | |
work. In fact, in my great city, too
many of my constituents don't even | 1:34:00 | 1:34:06 | |
have access to the Internet. In the
last three months, the ONS suggests | 1:34:06 | 1:34:11 | |
that up to 51,000 people, one in
four of over 16 is in Stoke-on-Trent | 1:34:11 | 1:34:18 | |
haven't accessed the Internet. One
in four. For the record, that's over | 1:34:18 | 1:34:24 | |
double the national average, which
makes talk of Internet banking of | 1:34:24 | 1:34:28 | |
the panacea of this crisis absolute
nonsense. For businesses, these | 1:34:28 | 1:34:35 | |
closures present a genuine challenge
for their business. For those who | 1:34:35 | 1:34:38 | |
trade primarily in cash, it is
neither safe nor practical to expect | 1:34:38 | 1:34:43 | |
staff to travel halfway across the
city in order to deposit money. For | 1:34:43 | 1:34:48 | |
small businesses with a limited
number of employees. The time this | 1:34:48 | 1:34:52 | |
will take out of their day is a real
hindrance. One of the defence is | 1:34:52 | 1:34:57 | |
that are often given in advance of
these closures is that nearby ATMs | 1:34:57 | 1:35:01 | |
will continue to be available. Get
hundreds of these even are at risk | 1:35:01 | 1:35:05 | |
of being closed down thanks to the
proposed overhaul of the Link | 1:35:05 | 1:35:10 | |
network what is more common services
provided by external ATMs are | 1:35:10 | 1:35:14 | |
incredibly limited, even compared
only to the automated services | 1:35:14 | 1:35:20 | |
available in bank branches. The Post
Office also provides a valuable | 1:35:20 | 1:35:25 | |
service and in 3000 locations and
soon including my town is the last | 1:35:25 | 1:35:32 | |
banking retailer in town. The
restructuring process has led to | 1:35:32 | 1:35:38 | |
branches closing and we don't know
what the future holds. Of course, | 1:35:38 | 1:35:42 | |
while the Post Office can support
customers looking to withdraw or | 1:35:42 | 1:35:44 | |
deposit cash, intense provide the
same range of services as a bank can | 1:35:44 | 1:35:50 | |
-- it cannot provide. Does she agree
with me that many people actually | 1:35:50 | 1:35:54 | |
are not necessarily aware of the
services available in Post Office | 1:35:54 | 1:35:58 | |
and if they are, they don't always
want to do their banking on a local | 1:35:58 | 1:36:02 | |
shop that may be busy now a lot of
post offices are based. I couldn't | 1:36:02 | 1:36:07 | |
agree more with the honourable
member. In fact, one of my concerns | 1:36:07 | 1:36:11 | |
is that no assessment is done, not
diminished vision of local post | 1:36:11 | 1:36:16 | |
offices about whether they have the
capacity to with these issues when a | 1:36:16 | 1:36:19 | |
bank closure occurs in a community.
This leads me onto my next point. | 1:36:19 | 1:36:24 | |
Britain has often been described as
a nation of shopkeepers. What does | 1:36:24 | 1:36:27 | |
it say about us if we are unable to
maintain the National banking | 1:36:27 | 1:36:33 | |
infrastructure that our small
traders need. There is a safety | 1:36:33 | 1:36:37 | |
aspect to these closures as well.
Should the final Lloyds branch in | 1:36:37 | 1:36:42 | |
verse and prose the only remaining
ATMs will be inside shops, there | 1:36:42 | 1:36:47 | |
will be no external ATMs are
available in the town and nowhere to | 1:36:47 | 1:36:50 | |
withdraw cash after closing time. If
I were to go for a drink in bursa | 1:36:50 | 1:36:54 | |
and one evening and as the
vice-chair of the all-party group it | 1:36:54 | 1:36:57 | |
would be impolite not to, there will
be nowhere for me to get cash out. | 1:36:57 | 1:37:06 | |
To pay for a taxi home, for example.
For many young women, I'm not sure | 1:37:06 | 1:37:10 | |
if I still fall and that category
are not, on a Friday night... Thank | 1:37:10 | 1:37:15 | |
you very much an unending witty
speaker! The prospect of walking as | 1:37:15 | 1:37:21 | |
a petrol station typhoid may leave
them feeling vulnerable and afraid. | 1:37:21 | 1:37:26 | |
All of this is merely a snapshot of
the human impact that the decline in | 1:37:26 | 1:37:31 | |
community bank branches is having on
communities like mine. I am deeply | 1:37:31 | 1:37:34 | |
concerned about what will happen to
other towns should these branches | 1:37:34 | 1:37:37 | |
disappear. I had hoped that the
banks would share or at least | 1:37:37 | 1:37:41 | |
understand that concern. Instead,
when I met with representatives from | 1:37:41 | 1:37:47 | |
the co-operative bank, no longer
associated with the co-operative | 1:37:47 | 1:37:51 | |
group, my concerns were dismissed
and ignored. When I pointed out that | 1:37:51 | 1:37:56 | |
the impact assessments were riddled
with obvious inaccuracies, the | 1:37:56 | 1:38:01 | |
merely shrugged and said it would
make no difference to their | 1:38:01 | 1:38:04 | |
decision. They treated me and my
constituents with contempt and they | 1:38:04 | 1:38:07 | |
should be utterly ashamed of
themselves. This is a bank that once | 1:38:07 | 1:38:12 | |
distinguished itself in its
commitment to ethical finance. So | 1:38:12 | 1:38:15 | |
tell me what is ethical about
leaving a community without a | 1:38:15 | 1:38:18 | |
lifeline and ignoring their
objectives. What is responsible | 1:38:18 | 1:38:22 | |
about providing an incompetently
researched impact assessment which | 1:38:22 | 1:38:27 | |
sites nearby alternative branches
which closed down a year ago. What | 1:38:27 | 1:38:31 | |
is caring about hearing the concerns
of 80-year-old men and women, who | 1:38:31 | 1:38:35 | |
have used the local branch their
whole lives and simply saying to | 1:38:35 | 1:38:38 | |
those people, the world has moved
on, there is an app for that now. | 1:38:38 | 1:38:42 | |
Let's be clear, a bank which treats
people this way cannot claim to be a | 1:38:42 | 1:38:47 | |
community anything and they should
be embarrassed to even try. As the | 1:38:47 | 1:38:53 | |
statistics demonstrate, this problem
is not limited to North | 1:38:53 | 1:38:57 | |
Staffordshire, it is a national
problem, certainly, but that does | 1:38:57 | 1:38:59 | |
not mean that the hardship is evenly
distributed, far from it. In fact, | 1:38:59 | 1:39:05 | |
research from Nottingham University
found that between 1995 and 2012, | 1:39:05 | 1:39:10 | |
the areas that suffered the largest
decline in branch numbers are | 1:39:10 | 1:39:12 | |
characterised by unemployment rates
and levels of renting from the | 1:39:12 | 1:39:16 | |
public sector that are far above the
national average. They concluded | 1:39:16 | 1:39:20 | |
that the least affluent South of the
population has borne the brunt of | 1:39:20 | 1:39:25 | |
two thirds of net closures. People
making those decisions might follow | 1:39:25 | 1:39:29 | |
the reality of market forces but
Madam Deputy Speaker, I follow | 1:39:29 | 1:39:34 | |
abandoning people and communities
who need you most. Whatever you | 1:39:34 | 1:39:38 | |
choose to college, the facts are the
same, the poorest and most | 1:39:38 | 1:39:41 | |
honourable people in our country,
especially those in rural or | 1:39:41 | 1:39:46 | |
inner-city areas are frequently
discriminated against in the bank's | 1:39:46 | 1:39:49 | |
decision-making processes. The
social cost of excluding low-income | 1:39:49 | 1:39:54 | |
customers from mainstream financial
services can be severe. It can risk | 1:39:54 | 1:39:59 | |
driving people into less legitimate
but more visible and convenient sing | 1:39:59 | 1:40:04 | |
methods of finance, including loan
sharks, legal and otherwise. The | 1:40:04 | 1:40:10 | |
cost of these closures goes beyond
the individual. They have long-term | 1:40:10 | 1:40:14 | |
repercussions for the whole
community. The campaign for | 1:40:14 | 1:40:17 | |
community banking services has
argued that bank closures contribute | 1:40:17 | 1:40:20 | |
to the commercial decline of an
area, as better of consumers change | 1:40:20 | 1:40:25 | |
the purchasing habits and begin to
shop, bank and even socialise | 1:40:25 | 1:40:29 | |
further afield. Worse still,
closures are associated with a real | 1:40:29 | 1:40:34 | |
decline in local bank lending. The
lending declined by 63% in four | 1:40:34 | 1:40:43 | |
schools that was a bank branch and
it grows to 104% for postcodes that | 1:40:43 | 1:40:47 | |
lose the last bank in town. The
impact on our high streets and local | 1:40:47 | 1:40:52 | |
businesses and on future
regeneration can be devastating. | 1:40:52 | 1:40:58 | |
So, what does that mean where local
people are coming together to lift | 1:40:58 | 1:41:04 | |
their community up and push against
years of decline? There was a time | 1:41:04 | 1:41:09 | |
in the local bank was thought of as
the heart of the community, so | 1:41:09 | 1:41:13 | |
perhaps it still is. So, what
happens to a community when it loses | 1:41:13 | 1:41:18 | |
its heart? What happens when the
bunch is a collision of a town is | 1:41:18 | 1:41:22 | |
cut off mid-beat? What happens when
the last financial lifeline | 1:41:22 | 1:41:25 | |
disappears and leads the elderly and
vulnerable without support? The | 1:41:25 | 1:41:30 | |
world we live in is not the same as
it was ten years ago. Times change, | 1:41:30 | 1:41:38 | |
technology is changed and we must
change with them. We also must do | 1:41:38 | 1:41:41 | |
move to ensure... And we must
recognise that there remains a place | 1:41:41 | 1:41:50 | |
for community banking, for local
lending and phosphates to phase | 1:41:50 | 1:41:54 | |
advice. Which means, we need the --
face to face advice. There need to | 1:41:54 | 1:42:01 | |
be imaginative and consider sector
and can mean wide solutions, not | 1:42:01 | 1:42:07 | |
pass the buck and playing their
customers. And if they would do it | 1:42:07 | 1:42:13 | |
voluntarily, Mr Speaker, then we'll
have to force them to? The banking | 1:42:13 | 1:42:18 | |
sector has options. They could
invest in multifunctional ATMs so | 1:42:18 | 1:42:26 | |
that customers can pay in money,
they could find more extensively | 1:42:26 | 1:42:34 | |
community-based financial education,
assisting people with online | 1:42:34 | 1:42:37 | |
banking. They could even, Madam
Deputy Speaker, find access to | 1:42:37 | 1:42:41 | |
broadband in some of the harder
reached communities, so that their | 1:42:41 | 1:42:45 | |
customers could access online
banking. And yet, all we have had | 1:42:45 | 1:42:49 | |
from the sector is silence. Madam
Deputy Speaker, we need to ensure | 1:42:49 | 1:42:55 | |
that our banks are working in
everyone's interest, not just their | 1:42:55 | 1:43:00 | |
own. I move the motion. The question
is as only order paper, Mr William | 1:43:00 | 1:43:09 | |
Wragg? Thank you very much, indeed.
It is a pleasure to follow the | 1:43:09 | 1:43:17 | |
honourable lady, the member for
Stoke north, who gave a splendid | 1:43:17 | 1:43:21 | |
estimation of the issues that we
face in the country, as well as | 1:43:21 | 1:43:25 | |
showing the dedication that she has
shown to her constituents in her own | 1:43:25 | 1:43:29 | |
constituency. A testament to the
numbers here this afternoon. It is | 1:43:29 | 1:43:32 | |
likely that we all have an interest
in this issue. In the last 25 years, | 1:43:32 | 1:43:40 | |
in the UK, the closure of nearly
10,000 bank branches, which is over | 1:43:40 | 1:43:45 | |
half of all of them. This rate has
accelerated more than 600 large | 1:43:45 | 1:43:51 | |
closures in the past year. It is
right that we should embrace | 1:43:51 | 1:43:56 | |
technological change, but the rise
of new approaches, including online | 1:43:56 | 1:43:59 | |
banking means that you are faced
with a decline of traditional | 1:43:59 | 1:44:02 | |
banking. Many customers have a
preference for in branch banking, | 1:44:02 | 1:44:08 | |
preferring face to face service, the
chance to talk to people, to get | 1:44:08 | 1:44:13 | |
financial advice, to access their
money is physically, and having the | 1:44:13 | 1:44:18 | |
security of receiving a paper record
to prove their banking transactions. | 1:44:18 | 1:44:23 | |
One of banking's redeeming features
against a backdrop of scandals has | 1:44:23 | 1:44:28 | |
been the personal relationship that
bank still offer to customers. | 1:44:28 | 1:44:32 | |
Members of the community often
struggle when a bank closes, and | 1:44:32 | 1:44:35 | |
this is important for elderly
vulnerable people who may not be | 1:44:35 | 1:44:39 | |
using online banking. Now, my own
constituency in recent years, which | 1:44:39 | 1:44:43 | |
suffer from the closure of a number
of local banks, and like other | 1:44:43 | 1:44:47 | |
members, I am sure, my constituency
has swelled as a result. In May two | 1:44:47 | 1:44:53 | |
dozen 15, Lloyds bank in marked its
bank would be up for closure. At the | 1:44:53 | 1:45:00 | |
time, I presented a 583 petition to
this has on the half of local | 1:45:00 | 1:45:06 | |
residents to call on Lloyds to
reconsider its decision. The bank | 1:45:06 | 1:45:13 | |
went ahead regardless. This position
made it harder for hundreds of | 1:45:13 | 1:45:16 | |
customers to access their money and
to get financial advice and face to | 1:45:16 | 1:45:21 | |
face service. The NatWest has also
recently closed branches in two | 1:45:21 | 1:45:25 | |
local towns. The last case was
particularly galling. As the | 1:45:25 | 1:45:31 | |
justification given by NatWest at
the time for its closure, during the | 1:45:31 | 1:45:39 | |
statue she consultation process, was
considering an act another branch as | 1:45:39 | 1:45:45 | |
an alternative. But if you mark
after shutting the first branch, the | 1:45:45 | 1:45:50 | |
branch announced its intention to
close the other branch to. Customers | 1:45:50 | 1:45:54 | |
who had taken earlier assured about
a back up branch in good faith, felt | 1:45:54 | 1:45:58 | |
that they had been treated as full
is, and that the behaviour of the | 1:45:58 | 1:46:02 | |
bag in this instance made a mockery
of the process of consulting on | 1:46:02 | 1:46:06 | |
closures. Of course, if customers
feel sufficiently overlooked, banks | 1:46:06 | 1:46:12 | |
may find that they start voting with
their debit card and switch | 1:46:12 | 1:46:16 | |
accounts. Whilst I accept that
decisions on bank closures are | 1:46:16 | 1:46:21 | |
ultimately a commercial decision, I
would urge all banks to show more | 1:46:21 | 1:46:26 | |
consideration of the needs of
customers and how they must best be | 1:46:26 | 1:46:29 | |
met. They must think carefully
before making a bank closure, | 1:46:29 | 1:46:36 | |
particularly in rural or semirural
areas. Whilst it may not be a matter | 1:46:36 | 1:46:40 | |
for the Government to intervene
directly on a decision on a regular | 1:46:40 | 1:46:48 | |
basis, the Government do have a role
in providing access to banking | 1:46:48 | 1:46:51 | |
services. Therefore, we should
consider placing a duty on the | 1:46:51 | 1:46:59 | |
Financial Conduct Authority to
promote financial inclusion as one | 1:46:59 | 1:47:02 | |
of its core objectives. This could
include a mandate to require | 1:47:02 | 1:47:09 | |
financial services to meet certain
standards every nation to service. | 1:47:09 | 1:47:12 | |
This should require the design of
products and services to be more | 1:47:12 | 1:47:18 | |
inclusive and maintain central
services for people who may not be | 1:47:18 | 1:47:21 | |
online. During my research for this
debate, I was pleased to learn that | 1:47:21 | 1:47:24 | |
a lot of the services offered by
banks now that can be done over the | 1:47:24 | 1:47:29 | |
post office counter. The post Office
continues to offer basic banking | 1:47:29 | 1:47:33 | |
services to many bank customers, and
99% of banks personal and 95% of its | 1:47:33 | 1:47:41 | |
business customers are now able to
withdraw cash, make deposits and | 1:47:41 | 1:47:45 | |
make balance enquiries at the post
office counter. All post offices can | 1:47:45 | 1:47:51 | |
take cash deposits of up to £2000.
However, this begs two important | 1:47:51 | 1:47:55 | |
questions: Firstly, what is being
done to ensure that local people are | 1:47:55 | 1:48:04 | |
aware of the options available
following the closure of their local | 1:48:04 | 1:48:08 | |
branch? And secondly, and perhaps
crucially, whilst this is good news | 1:48:08 | 1:48:12 | |
for customers, why is it deemed
acceptable for privately owned | 1:48:12 | 1:48:16 | |
banks, and indeed publicly owned
bank in some circumstances, to close | 1:48:16 | 1:48:20 | |
their own branches and rely on the
state owned Post Office to make | 1:48:20 | 1:48:27 | |
their transactions for them. Are
they making a profit whilst the | 1:48:27 | 1:48:31 | |
overhead costs are met by the post
office? In conclusion, I would like | 1:48:31 | 1:48:35 | |
to thank everybody for turning up
today and participating in this | 1:48:35 | 1:48:39 | |
debate. I look forward to hearing
contributions and the response from | 1:48:39 | 1:48:42 | |
the Minister. Madam Deputy Speaker,
I would like to thank you for | 1:48:42 | 1:48:49 | |
calling me so early in this debate,
because I have a very long way to | 1:48:49 | 1:48:55 | |
travel, and I like to apologise and
not being there when the winding up | 1:48:55 | 1:48:59 | |
speeches take place. It is not
intentional. Can I also congratulate | 1:48:59 | 1:49:02 | |
the honourable member for making a
first-class speech. I believe that | 1:49:02 | 1:49:09 | |
she covered every single point, and
I'm left with almost nothing to say | 1:49:09 | 1:49:12 | |
as a result of this, which is rather
distressing for someone like me who | 1:49:12 | 1:49:16 | |
have a tendency to be verbose, but
there we are. This issue causes me a | 1:49:16 | 1:49:23 | |
amount of personal pain, because I
have a number of friends who work | 1:49:23 | 1:49:26 | |
for the Royal Bank at all levels of
that bank, and my comment about the | 1:49:26 | 1:49:31 | |
Royal Bank of Scotland are not
intended particular at the Royal | 1:49:31 | 1:49:35 | |
Bank of Scotland, but at the system
in general. In my constituency, we | 1:49:35 | 1:49:40 | |
are faced with the closure of three
branches. One of which, in the | 1:49:40 | 1:49:46 | |
north-west, maybe on hold. However,
in the old Royal Borough of Tain and | 1:49:46 | 1:49:50 | |
wit, the intention is to close them.
I have never seen an issue that is | 1:49:50 | 1:49:57 | |
causing so much deep unhappiness
amongst my constituents. Call me | 1:49:57 | 1:50:01 | |
old-fashioned, but the bank manager
was as much a part of the social | 1:50:01 | 1:50:05 | |
structure of these communities as
was the doctor, the Minister, and | 1:50:05 | 1:50:10 | |
the schoolteacher. I think,
particularly of what happens... From | 1:50:10 | 1:50:16 | |
little acorns, mighty oaks grow.
Someone with a business idea could | 1:50:16 | 1:50:25 | |
go to the branch of their back and
say to the manager I've got this | 1:50:25 | 1:50:29 | |
idea, will you take a punt? And I
have seen him my hometown, some | 1:50:29 | 1:50:34 | |
serious the big businesses grow in
my lifetime from absolutely nothing | 1:50:34 | 1:50:37 | |
to do but -- at all by a brave that
by the bank manager. Do not | 1:50:37 | 1:50:44 | |
underestimate that. The point about
the post offices: Our main post | 1:50:44 | 1:50:48 | |
office in the town of Tain closed.
Our post offices now very well | 1:50:48 | 1:50:54 | |
start, but it is essentially
newsagent. The app between the | 1:50:54 | 1:50:58 | |
counter where you do your business
and the magazines is only the | 1:50:58 | 1:51:01 | |
difference between these two
ventures. If you are trying to bank | 1:51:01 | 1:51:04 | |
large amounts of money at the same
time as Mrs McKenzie is trying to | 1:51:04 | 1:51:08 | |
buy her copy of the Scots Magazine,
and it all gets muddled. And | 1:51:08 | 1:51:13 | |
frankly, the staff are getting
hassled, and I do not envy their | 1:51:13 | 1:51:17 | |
position one little bit. And just a
short anecdote, to reflect on banks. | 1:51:17 | 1:51:22 | |
My first bank account was opened
when I became a student. My father | 1:51:22 | 1:51:29 | |
gave me £15. It was with the Royal
Bank of Scotland. In due course I | 1:51:29 | 1:51:33 | |
spent it all, because I was a young
first-year student and I didn't know | 1:51:33 | 1:51:37 | |
what I was doing. So, when my grant
cheque came in, I opened another | 1:51:37 | 1:51:42 | |
account in the Bank of Scotland. And
I spent all that. The trouble came | 1:51:42 | 1:51:49 | |
when the two bank manager spoke to
each other and they told my dad. | 1:51:49 | 1:51:54 | |
There was absolutely no end of
trouble over that, but in a way, for | 1:51:54 | 1:52:00 | |
those of you heart who are experts
on age moll, that conversation, | 1:52:00 | 1:52:03 | |
perhaps not completely correct
today, headed off a potential | 1:52:03 | 1:52:09 | |
multiple debt situation, and I was
pulled up and stop where I had to | 1:52:09 | 1:52:12 | |
be. That was probably to my great
benefits. It is about the human | 1:52:12 | 1:52:17 | |
face, of course it is, because juice
the something for... And actually | 1:52:17 | 1:52:26 | |
say, don't worry, the payment will
not be a footie days. That can be | 1:52:26 | 1:52:30 | |
the difference between peace of mind
or mental torture. It takes -- for a | 1:52:30 | 1:52:34 | |
feud is. We talk about online
banking, well, I can tell you. If I | 1:52:34 | 1:52:44 | |
hit the icon here, it says that I
have been logged out, no matter how | 1:52:44 | 1:52:49 | |
hard I try, I cannot get back in
again. I do not have a clue, just | 1:52:49 | 1:52:54 | |
like I was 18. So, it is not for
everyone. I think, that the issue | 1:52:54 | 1:53:00 | |
here, as has been said by the
member, is one for Government. | 1:53:00 | 1:53:05 | |
Because the only way that we are
going to stop the endless gloomy | 1:53:05 | 1:53:14 | |
slide of closures, is that the
Government to say, wait, what is the | 1:53:14 | 1:53:20 | |
public service responsibility, here?
And to come forward with some | 1:53:20 | 1:53:23 | |
thought and guidance, perhaps as has
been suggested by combining banking | 1:53:23 | 1:53:29 | |
facilities, getting them to work
together for a one-stop shop. So, | 1:53:29 | 1:53:35 | |
Madam Deputy Speaker, I would close
by saying I look for something | 1:53:35 | 1:53:42 | |
coming from the Government to say,
we recognise that this is their | 1:53:42 | 1:53:45 | |
responsibility, that this is a
danger to society, and that these | 1:53:45 | 1:53:51 | |
are the proposals that we intend to
bring forward, and I wait, and I am | 1:53:51 | 1:53:55 | |
at up to Mr, and I hope there will
be something that will sort this one | 1:53:55 | 1:54:02 | |
and fraud. -- I am an optimist.
Thank you very much. I am grateful | 1:54:02 | 1:54:08 | |
to the back bench committee for
granting this debate. This is an | 1:54:08 | 1:54:14 | |
important issue, particularly in
rural constituencies such as my own. | 1:54:14 | 1:54:18 | |
My constituency of some 250 square
mile in West Sussex consists only of | 1:54:18 | 1:54:23 | |
small market towns and villages.
Varane large towns, and if one of | 1:54:23 | 1:54:28 | |
those villages, which have high
streets -- there are no large towns. | 1:54:28 | 1:54:36 | |
If one of those villages loses its
banking facilities that immediately | 1:54:36 | 1:54:41 | |
have a knock on effect to the
businesses which are in the village | 1:54:41 | 1:54:46 | |
or small market town, to the
neighbours, and it is of little use | 1:54:46 | 1:54:57 | |
to those businesses, and indeed it
is very inconvenient to be told that | 1:54:57 | 1:55:00 | |
we had to travel to a settlement
which is some miles away. Very | 1:55:00 | 1:55:05 | |
often, following his closures, there
has not been an alternative retail | 1:55:05 | 1:55:10 | |
high Street facility in the same
village or small market town. We | 1:55:10 | 1:55:17 | |
start off with a collective
agreement that it is important that | 1:55:17 | 1:55:20 | |
we maintain banking Brazil it is in
this area. -- these areas. We are | 1:55:20 | 1:55:28 | |
not yet in a position where we have
a cashless dam a cashless society. | 1:55:28 | 1:55:32 | |
Local charities, many of them are
still ready to collect in cash, and | 1:55:32 | 1:55:37 | |
indeed checks, and they need these
facilities as well. That said, I | 1:55:37 | 1:55:43 | |
think there are two important point,
here. I think that we have to | 1:55:43 | 1:55:47 | |
acknowledge the march of technology,
and the huge growth in the numbers | 1:55:47 | 1:55:49 | |
of customers that are now using
online banking services, and that | 1:55:49 | 1:55:54 | |
has changed entirely the shape of
retail banking, and the numbers of | 1:55:54 | 1:55:58 | |
people who are visiting some of the
high Street banks in my constituency | 1:55:58 | 1:56:02 | |
base closures, Belgian unsustainably
small level. And, it was absolutely | 1:56:02 | 1:56:11 | |
-- fell to an unsustainably small
level. Police forces confronted with | 1:56:11 | 1:56:20 | |
the reality and taxi very few people
in deed... Only a handful of people | 1:56:20 | 1:56:29 | |
were visiting police stations, many
of those actually requiring | 1:56:29 | 1:56:32 | |
reporting to be made at the police
stations, recognise that it was not | 1:56:32 | 1:56:37 | |
actually the best way for police to
maintain a footprint of their | 1:56:37 | 1:56:42 | |
community, by maintaining an
underused building. And, there were | 1:56:42 | 1:56:45 | |
more innovative ways for the police
to maintain presence in the local | 1:56:45 | 1:56:49 | |
committees, and that could very
often be through shared communities, | 1:56:49 | 1:56:52 | |
through setting up pop up shops in
pace were lots of people were, for | 1:56:52 | 1:56:57 | |
instance in supermarkets, and indeed
developing their online presence. | 1:56:57 | 1:57:02 | |
And that, actually, represent a
change in the nature of business of | 1:57:02 | 1:57:08 | |
policing, the shape of policing, and
how it's | 1:57:08 | 1:57:20 | |
Forces could instantly withdrawn,
there has the presence in | 1:57:20 | 1:57:23 | |
communities. It may take a different
form but there has to be a presence | 1:57:23 | 1:57:26 | |
and accessibility. We have the
opportunity of ensuring that local | 1:57:26 | 1:57:32 | |
banking services can be provided in
these communities on an ongoing | 1:57:32 | 1:57:35 | |
basis by post offices and we have
heard from my honourable friend,, | 1:57:35 | 1:57:42 | |
following the new Deal the Post
Office has done with Lloyds, the | 1:57:42 | 1:57:47 | |
coverage they can provide for basic
banking services is now very high. | 1:57:47 | 1:57:53 | |
99% for individual private customers
and 95% for businesses. I suspect | 1:57:53 | 1:58:06 | |
there is relatively low awareness
that post offices can provide the | 1:58:06 | 1:58:08 | |
services, so I agree with the
honourable member to have set that | 1:58:08 | 1:58:16 | |
it's quite important there is a
proper campaign of information to | 1:58:16 | 1:58:20 | |
local businesses were high feedbacks
are lost to explain what services | 1:58:20 | 1:58:24 | |
can be provided by the local post
offices. It's not good enough to put | 1:58:24 | 1:58:32 | |
out a newsletter saying the bank is
closing to their customers. The | 1:58:32 | 1:58:36 | |
banks have a responsibility and they
should exercise it. I think it's | 1:58:36 | 1:58:40 | |
important that we maintain the post
office network and ensure if these | 1:58:40 | 1:58:46 | |
post offices are to become local
banking hubs as well as providing | 1:58:46 | 1:58:51 | |
other services which they do, which
is a great opportunity for the post | 1:58:51 | 1:58:54 | |
offices, a useful way to maximise
the asset and ensure the investment | 1:58:54 | 1:58:58 | |
that is made in the post office
network can be realised. I take on | 1:58:58 | 1:59:04 | |
board entirely what the honourable
gentleman is saying but surely where | 1:59:04 | 1:59:07 | |
you have. This using a retail
premises that is entirely | 1:59:07 | 1:59:12 | |
unsuitable, it must be up to the
post office network to negotiate | 1:59:12 | 1:59:15 | |
suitable retail premises rather than
unsuitable for the service he is | 1:59:15 | 1:59:19 | |
talking about. White man we have two
insure the post office premises, if | 1:59:19 | 1:59:25 | |
they become the only banking
services which are in a village or | 1:59:25 | 1:59:30 | |
small market town are suitable. The
post office, in identifying premises | 1:59:30 | 1:59:36 | |
is to ensure is the case and that
the banking services can be | 1:59:36 | 1:59:41 | |
provided. In my constituency over
the past few days, the online | 1:59:41 | 1:59:45 | |
systems have been down. There have
been no banking services as a | 1:59:45 | 1:59:50 | |
result. There have been problems in
various villages and small market | 1:59:50 | 1:59:54 | |
towns in my constituency where
suitable post office can be found. | 1:59:54 | 2:00:01 | |
Suitable premises cannot be found
and we have a suspension of post | 2:00:01 | 2:00:04 | |
office services for a period of
months, even though the Post Office | 2:00:04 | 2:00:09 | |
policy is that there will be a Post
Office outlet in those communities. | 2:00:09 | 2:00:14 | |
It cannot happen if the post office
is become increasingly important | 2:00:14 | 2:00:19 | |
because they are now providing
banking facilities as well as all | 2:00:19 | 2:00:23 | |
the other important facilities they
were providing for the local | 2:00:23 | 2:00:25 | |
community. We need some more
creative thinking in this area and | 2:00:25 | 2:00:33 | |
we cannot just allow the banks to
step away from their | 2:00:33 | 2:00:39 | |
responsibilities and take away from
the thinking and responsibility that | 2:00:39 | 2:00:43 | |
they have to ensure better services
in this regard. I agree with the | 2:00:43 | 2:00:46 | |
honourable lady with a point she was
making an government has a role to | 2:00:46 | 2:00:49 | |
play because it's about stepping in
the market isn't working properly. | 2:00:49 | 2:00:55 | |
It's not working because there is
insufficient demand for banking | 2:00:55 | 2:00:58 | |
services in these areas in their
traditional form but those services | 2:00:58 | 2:01:02 | |
are still very important to local
communities whose high streets are | 2:01:02 | 2:01:07 | |
under great stress. Our high streets
in rural areas have been suffering | 2:01:07 | 2:01:12 | |
from the impact of globalisation and
competition from our online retail | 2:01:12 | 2:01:19 | |
services. It's very difficult for
the small businesses to keep their | 2:01:19 | 2:01:24 | |
heads above water as it is an
banking services are very important | 2:01:24 | 2:01:27 | |
for them. If the government's
objective helmet in the vibrancy of | 2:01:27 | 2:01:33 | |
these high streets and it is, some
very active measures to ensure that | 2:01:33 | 2:01:38 | |
post offices are promoting the best
banking services and they are well | 2:01:38 | 2:01:44 | |
publicised, the banks are stepping
up to the plate and helping | 2:01:44 | 2:01:47 | |
contribute to ensure the banking
services can be universal and are | 2:01:47 | 2:01:51 | |
just as good as the services
provided before. All those things | 2:01:51 | 2:01:53 | |
can be done. I had a use meeting
with post office senior management | 2:01:53 | 2:01:59 | |
to discuss this. My honourable
friend didn't predecessor | 2:01:59 | 2:02:04 | |
acknowledged these points and I know
the government is concerned to | 2:02:04 | 2:02:08 | |
ensure that banking services are
provided by the must look forward to | 2:02:08 | 2:02:12 | |
what can be created here using the
network we already have for post | 2:02:12 | 2:02:18 | |
offices and ensure they are provided
properly and I don't think it helps | 2:02:18 | 2:02:22 | |
us just to look backwards and think
we can set a retail banking model in | 2:02:22 | 2:02:27 | |
aspect when it is actually failing
because it will not provide the | 2:02:27 | 2:02:33 | |
services necessary for the wider
community and supplies are very | 2:02:33 | 2:02:39 | |
small number of customers. We need
banking services in these areas, | 2:02:39 | 2:02:42 | |
they could be provided more
creatively and inevitably but it | 2:02:42 | 2:02:45 | |
needs government help and needs the
bank to play their part as well. | 2:02:45 | 2:02:54 | |
Before I call the next honourable
member to speak. I ought to point | 2:02:54 | 2:02:58 | |
out for the sake of clarity that we
are in very unusual circumstances | 2:02:58 | 2:03:03 | |
today because the timing of this
business has changed and changed and | 2:03:03 | 2:03:09 | |
changed again and I appreciate that
this is the last before a recess and | 2:03:09 | 2:03:17 | |
people who have long distances to
travel are in some difficulty. I | 2:03:17 | 2:03:22 | |
have allowed for more leniency than
is usual, first of all in the timing | 2:03:22 | 2:03:29 | |
of people arriving for the beginning
of the debate and secondly in the | 2:03:29 | 2:03:34 | |
timing of their departure, either
before or after the windups. I would | 2:03:34 | 2:03:40 | |
like to make it absolutely clear to
the House that this does not create | 2:03:40 | 2:03:45 | |
a precedent, absolutely not. We have
a combination of circumstances today | 2:03:45 | 2:03:51 | |
which is highly unusual and that is
why I have allowed leniency. Not on | 2:03:51 | 2:03:58 | |
other occasions. I'm sure on behalf
of all of us, we seek your words and | 2:03:58 | 2:04:07 | |
thank you for your consideration
this afternoon. Could I congratulate | 2:04:07 | 2:04:11 | |
my honourable friend, the member for
Stoke-on-Trent North and the | 2:04:11 | 2:04:13 | |
honourable member list -- member for
his oral. Listening to the Right | 2:04:13 | 2:04:19 | |
Honourable member for Arundel and
South Downs, I listen carefully to | 2:04:19 | 2:04:22 | |
what he said but I'm afraid he
seemed to be talking himself into a | 2:04:22 | 2:04:27 | |
bank closure by his statements
because it is about banking services | 2:04:27 | 2:04:32 | |
by Dale we can also focus on a need
to creatively think about the sort | 2:04:32 | 2:04:39 | |
of sustainable bank community hub
that is necessary, maybe not in our | 2:04:39 | 2:04:44 | |
cities or even what down the street
and walked past six banks in half a | 2:04:44 | 2:04:48 | |
kilometre but for our small town
communities and semirural | 2:04:48 | 2:04:52 | |
communities around the United
Kingdom for whom it is the bank's | 2:04:52 | 2:04:57 | |
presence in and a new sustainable
form that we are fighting for and | 2:04:57 | 2:05:00 | |
championing today. In August 2017,
Reuters reported bank branches | 2:05:00 | 2:05:07 | |
across Britain have closed at a rate
of 300 per year since 1989. The | 2:05:07 | 2:05:12 | |
Daily Mail reported in December 2017
that over 1000 branches had caused | 2:05:12 | 2:05:17 | |
in the two years of 2015 and 2016
and a record 802 branches closed in | 2:05:17 | 2:05:25 | |
2017. The accelerating pace of
closures appears relentless. In my | 2:05:25 | 2:05:31 | |
dog Valley constituency. The town of
tech Hill lost its last banking | 2:05:31 | 2:05:37 | |
2015, and 2016 the tone of Thorn
lost its HSBC branch and in November | 2:05:37 | 2:05:43 | |
2017. RBS served notice that the
tone would also lose its mass -- | 2:05:43 | 2:05:49 | |
NatWest branch and eternal board is
to lose its last bank branch also, a | 2:05:49 | 2:05:53 | |
NatWest. The previous government's
response to this relentless wave of | 2:05:53 | 2:05:59 | |
bank orders was to announce an
access to banking protocol in March | 2:05:59 | 2:06:03 | |
20 15. It is clear now that the
protocol was not what it seems. It | 2:06:03 | 2:06:09 | |
laid out a timetable for
consultation about the impact and | 2:06:09 | 2:06:13 | |
the provision of alternative
banking. No mechanism to stop a | 2:06:13 | 2:06:17 | |
branch closing. The process for
closure has been determined, a | 2:06:17 | 2:06:23 | |
mechanism to hold a closure is
nonexisting. Communities have no | 2:06:23 | 2:06:27 | |
more chance of stopping the closure
than they did in 2015. The | 2:06:27 | 2:06:32 | |
government has done and is doing
nothing to change this, it is a | 2:06:32 | 2:06:37 | |
private matter, commercial matter.
We have been told on several | 2:06:37 | 2:06:40 | |
occasions during Prime Minister's
Questions in recent times. It is as | 2:06:40 | 2:06:44 | |
if closures when an inconvenient
truth that the government declines | 2:06:44 | 2:06:47 | |
to collect statistics on closures or
how many communities are now without | 2:06:47 | 2:06:53 | |
any banking services. The banks
would have you believe that it is a | 2:06:53 | 2:06:59 | |
story of enlightened pensioners
managing their eyes as an direct | 2:06:59 | 2:07:04 | |
debits on their smartphones, the
truth is harder to get to. This | 2:07:04 | 2:07:06 | |
house is not nostalgic. All opposed
to telephone or smartphone banking, | 2:07:06 | 2:07:13 | |
we're not against people managing
payment on their PCs. The selective | 2:07:13 | 2:07:17 | |
figures provided by RBS NatWest to
justify closure provide a completely | 2:07:17 | 2:07:23 | |
different -- distorted impression of
the worth of the NatWest branch to | 2:07:23 | 2:07:27 | |
each of the towns Ndong Valley. RBS
were keen to tell me that 88% of | 2:07:27 | 2:07:34 | |
customers and 86% of foreign
customers now bank in other ways. | 2:07:34 | 2:07:40 | |
Just 40 custom zones and 69 and
Thorn attend a branch on a weekly | 2:07:40 | 2:07:43 | |
basis. The time viewed for this
estimate was not provided to me. | 2:07:43 | 2:07:46 | |
When a member of my staff went to
NatWest in midweek in mid-January, a | 2:07:46 | 2:07:52 | |
quiet post-Christmas week, they saw
a queue outside the bank before it | 2:07:52 | 2:07:56 | |
opened at 10am and at 1045 they
found a queue more than ten deep in | 2:07:56 | 2:08:01 | |
the bank with several counters in
use. When I asked RBS how many | 2:08:01 | 2:08:06 | |
transactions take place at this
branch, in the first hour of each | 2:08:06 | 2:08:11 | |
day since the New Year, the bank
refused to disclose this | 2:08:11 | 2:08:14 | |
information. It was commercially
sensitive, I was told. Now would RBS | 2:08:14 | 2:08:21 | |
furnish me with what proportion of
the customers of person he -- | 2:08:21 | 2:08:26 | |
pensioners, how many transactions
took place in each branch in the | 2:08:26 | 2:08:29 | |
last year by neither branch opened
the weekend on a Saturday morning, | 2:08:29 | 2:08:33 | |
where footfall could be more
frequent. So much for dialogue and | 2:08:33 | 2:08:37 | |
consultation. When I say to Ross
McEwan, RBS chief executive. And the | 2:08:37 | 2:08:45 | |
personal business lending chief
executive, please an opportunity | 2:08:45 | 2:08:47 | |
with offers to meet a senior
representative when you refuse to | 2:08:47 | 2:08:51 | |
provide information which may
demonstrate that small businesses, | 2:08:51 | 2:08:55 | |
pensioners of the community
generally may need the services | 2:08:55 | 2:08:57 | |
provided under Thorn and other
branches than you care to admit. In | 2:08:57 | 2:09:04 | |
response to a question about the
possibility of branches sharing | 2:09:04 | 2:09:07 | |
premises to make them more viable, I
was told by Mr Matheson that | 2:09:07 | 2:09:12 | |
NatWest's arrangement with the post
office means the post offices are | 2:09:12 | 2:09:18 | |
now shared premises, on that basis,
why have any branches at all, the | 2:09:18 | 2:09:21 | |
post office is NatWest. Where is the
genuine attempt to find a model for | 2:09:21 | 2:09:27 | |
sustainable banking in these
communities? Instead of small | 2:09:27 | 2:09:30 | |
corners in corner shops, why can't
post offices be located in secure | 2:09:30 | 2:09:36 | |
bank premises, sharing them with
more than one bank. Why can several | 2:09:36 | 2:09:39 | |
banks have staff in both places.
Bank sharing overheads in secure | 2:09:39 | 2:09:46 | |
premises to create a community of
banking hub. That could be a win-win | 2:09:46 | 2:09:52 | |
situation. Where is the attempt to
bring young people into branches, | 2:09:52 | 2:09:58 | |
some real outreach to make them see
the bank as more than an app on a | 2:09:58 | 2:10:02 | |
smartphone. I don't know about
colleagues around the House today | 2:10:02 | 2:10:07 | |
but I am getting lobbied by banks
about the latest application to | 2:10:07 | 2:10:12 | |
provide for financial inclusion.
They are always telling me about how | 2:10:12 | 2:10:16 | |
they want to do more in our schools
and communities to give people the | 2:10:16 | 2:10:19 | |
skills to not only press a button on
a computer or click on an | 2:10:19 | 2:10:24 | |
application but to actually
understand what financial literacy | 2:10:24 | 2:10:29 | |
really means. They are always
lobbying as but I don't see any | 2:10:29 | 2:10:33 | |
effort to attract young people into
branches to help them with financial | 2:10:33 | 2:10:37 | |
decisions and let's not stop at
young people. Many of my | 2:10:37 | 2:10:41 | |
constituents do not have a bank
account at all and have never had | 2:10:41 | 2:10:44 | |
one. There are plenty of other
people who still don't know quite | 2:10:44 | 2:10:48 | |
how to go about getting a mortgage
or how to run and I sat for to save | 2:10:48 | 2:10:53 | |
or pay off debt. | 2:10:53 | 2:10:54 | |
My honourable friend is making an
excellent point to attract people | 2:10:57 | 2:11:02 | |
into branches. Many banks have been
dinners over a number of users try | 2:11:02 | 2:11:05 | |
to drive people out of the branches
by taking essential services away | 2:11:05 | 2:11:08 | |
from that branch. | 2:11:08 | 2:11:16 | |
In I absolutely agree. You would
think that they... It is this a self | 2:11:16 | 2:11:22 | |
fulfilling prophecy that they are
creating. Madam Deputy Speaker, | 2:11:22 | 2:11:25 | |
Parliament needs to demand more from
Government, and more from the big | 2:11:25 | 2:11:29 | |
five banks, beginning with support
for local communities. Whilst | 2:11:29 | 2:11:33 | |
branches cluster in large cities, in
lavish offices, outlying towns and | 2:11:33 | 2:11:38 | |
villages are being denied branches
that are anchors for local | 2:11:38 | 2:11:42 | |
businesses. We are told that the
average customer travels just two to | 2:11:42 | 2:11:49 | |
2.5 miles to the nearest bank
branch. I worry about figures like | 2:11:49 | 2:11:55 | |
that, because what that really means
is that they estimate all of the | 2:11:55 | 2:11:59 | |
access across the UK and then divide
it, so of course, that figure is | 2:11:59 | 2:12:04 | |
going to be distorted by the density
of branches in our cities. I give | 2:12:04 | 2:12:09 | |
way to my honourable friend. Thank
you so much for giving wave and for | 2:12:09 | 2:12:13 | |
making such a passionate speech on
this issue. One of my issues with | 2:12:13 | 2:12:15 | |
the journey Times quoted, is that I
don't believe any of them have ever | 2:12:15 | 2:12:22 | |
been done on public transport, and
do not believe any -- include how | 2:12:22 | 2:12:27 | |
many bus changes may take place. The
numbers don't make sense, do you | 2:12:27 | 2:12:33 | |
agree? My honourable friend make
such an important point, here. There | 2:12:33 | 2:12:37 | |
are so many substance about the way
that people live their lives today | 2:12:37 | 2:12:40 | |
is that there is no... To our own
experience let alone that of our | 2:12:40 | 2:12:46 | |
constituents. In my constituency, we
are footie ten or 20 miles to the | 2:12:46 | 2:12:51 | |
nearest branch. We don't hear about
that ten to 20% of people across the | 2:12:51 | 2:12:56 | |
UK who are in that situation. As
what my honourable friend says, many | 2:12:56 | 2:13:03 | |
of those people do not have access
to a car, and actually, to get to | 2:13:03 | 2:13:08 | |
Doncaster town centre but many of my
constituents, it is at least two | 2:13:08 | 2:13:11 | |
buses to get into town, and then
they are not necessarily happening | 2:13:11 | 2:13:15 | |
every five minutes. Likely situation
that many of my friends in London in | 2:13:15 | 2:13:18 | |
the big cities tend to benefit from,
and sits just not recognised. If the | 2:13:18 | 2:13:24 | |
Government really wishes to support
our small towns, to regenerate and | 2:13:24 | 2:13:30 | |
develop, and down hard to say that
in Thorne and bought three, in the | 2:13:30 | 2:13:36 | |
last ten years, it has been half,
but we are seeing a renaissance in | 2:13:36 | 2:13:42 | |
this towns. It is fantastic, and at
that tipping point, we are in danger | 2:13:42 | 2:13:47 | |
of losing our last bank. It just
does not make sense, because if we | 2:13:47 | 2:13:51 | |
want to hold the growing gap between
city and small-town Britain, we need | 2:13:51 | 2:13:57 | |
a policy to keep bank branches open
in a more creative and sustainable | 2:13:57 | 2:14:02 | |
way. It cannot be right, it cannot
be right that towns with a | 2:14:02 | 2:14:07 | |
population of four of 5000 people in
the population in the immediate | 2:14:07 | 2:14:12 | |
vicinity, let alone the many towns
even smaller are losing out. That | 2:14:12 | 2:14:15 | |
they cannot have, not just banking
services, but the presence of a | 2:14:15 | 2:14:21 | |
face, not just a tale, not just a
machine, not just a counter in a | 2:14:21 | 2:14:26 | |
convenience store for their
financial needs. So, 4000 people | 2:14:26 | 2:14:31 | |
soon with no branch in one area.
Stray Van as market town,... | 2:14:31 | 2:14:43 | |
Hornsey, all these communities soon
to be left with no bank and the | 2:14:43 | 2:14:48 | |
Government needs to do something
about it. It could begin, and I say | 2:14:48 | 2:14:53 | |
to the Minister, it could begin, by
collecting and reporting the data on | 2:14:53 | 2:14:57 | |
writers and the rate of closure,
facing this uncomfortable truth | 2:14:57 | 2:15:02 | |
about the loss of services in
small-town Britain. The Government | 2:15:02 | 2:15:06 | |
cannot be neutral on this matter.
This is not about me a -- not about | 2:15:06 | 2:15:16 | |
neoliberalism. This is about
inclusion and quality. I urge the | 2:15:16 | 2:15:23 | |
Minister to act before branch
networks are a thing of the past. | 2:15:23 | 2:15:30 | |
Thank you, Madam Deputy Speaker. I
pay tribute to the honourable | 2:15:30 | 2:15:33 | |
members. And Trent, north and Hazel
Grove for bringing this highly | 2:15:33 | 2:15:36 | |
topical issue before the parliament,
today. The announcement in December | 2:15:36 | 2:15:43 | |
that is 62 branches will be shut
across Scotland, affected my | 2:15:43 | 2:15:49 | |
constituency more than most. I wish
to concentrate and focus my remarks | 2:15:49 | 2:15:53 | |
on this announcement. Six branches
are set to close in Berwickshire, | 2:15:53 | 2:15:59 | |
Roxburgh and Selkirk in what is the
latest in a string of closures for | 2:15:59 | 2:16:04 | |
the Scottish Borders. Now, we all
acknowledge that banking habits are | 2:16:04 | 2:16:08 | |
changing, and that branches are less
well use them Easterby, however what | 2:16:08 | 2:16:14 | |
banks are failing to appreciate is
that for those who do use them, they | 2:16:14 | 2:16:17 | |
remain more vital than ever. I share
honourable member is concerned that | 2:16:17 | 2:16:22 | |
these closures will affect
vulnerable customers as well as cash | 2:16:22 | 2:16:24 | |
handed his listeners, and community
groups -- cash handy businesses and | 2:16:24 | 2:16:30 | |
community groups. The impact of bank
closures is particularly acute in | 2:16:30 | 2:16:35 | |
rural areas for a number of reasons.
Firstly, alternative services are | 2:16:35 | 2:16:39 | |
already stretched. The process in
Howick is already stretched... In | 2:16:39 | 2:16:53 | |
east Berwickshire, there is some of
the worst Internet speed in the | 2:16:53 | 2:16:56 | |
whole of the United Kingdom. Where
more than a third of people are | 2:16:56 | 2:17:01 | |
unable to receive a decent
connection. However, these people, I | 2:17:01 | 2:17:06 | |
asked, will be expected to rely on
Internet banking as an alternative. | 2:17:06 | 2:17:10 | |
High Street and their Scottish
Borders are also struggling. Selkirk | 2:17:10 | 2:17:17 | |
is currently going through a
significant amount of town centre | 2:17:17 | 2:17:21 | |
regeneration, only for the bank to
announce that they are now going to | 2:17:21 | 2:17:24 | |
leave. Another issue which affects
one of the branch closures, in the | 2:17:24 | 2:17:29 | |
Borders is disabled access. The
branches in dance is set to close in | 2:17:29 | 2:17:36 | |
RBS branch, and although the back of
Scotland remains, it is only open | 2:17:36 | 2:17:39 | |
three days a week, and both the
branch and the ATM are not | 2:17:39 | 2:17:43 | |
wheelchair accessible. Many people
in the Borders think these closures | 2:17:43 | 2:17:48 | |
have been decided by people of
little express of living outside the | 2:17:48 | 2:17:51 | |
metropolitan areas of the United
Kingdom. Someone has looked at the | 2:17:51 | 2:17:54 | |
map, without any knowledge of the
local area, and drawn Red crosses | 2:17:54 | 2:17:58 | |
all over it. There has been a
complete lack of consultation, the | 2:17:58 | 2:18:03 | |
Royal Bank of Scotland simply
announced these closures and told | 2:18:03 | 2:18:06 | |
their customers to like it or lump
it. There is a feeling in my area, | 2:18:06 | 2:18:12 | |
that enough is enough. Opposition to
the latest round of closures is | 2:18:12 | 2:18:19 | |
unprecedented, and contacted by huge
numbers of constituents. Tomorrow, I | 2:18:19 | 2:18:23 | |
will be holding three public
meetings on branch closes, spread | 2:18:23 | 2:18:27 | |
across my constituency, such is the
level of concern around these days. | 2:18:27 | 2:18:32 | |
-- around this news. Do you agree
with me that announcements by RBS to | 2:18:32 | 2:18:39 | |
keep some branches temporarily open,
I think one in my -- one in his | 2:18:39 | 2:18:45 | |
constituency, none in mind, does not
go far enough, nowhere near enough, | 2:18:45 | 2:18:48 | |
and leaves the images and more
deprived community is at risk of | 2:18:48 | 2:18:52 | |
losing their services? I think the
honourable member makes a very | 2:18:52 | 2:18:56 | |
important point. I would like to
come onto the bag's announcement | 2:18:56 | 2:19:00 | |
this week very shortly. I share her
concerns certainly. Now, I accept | 2:19:00 | 2:19:09 | |
the Government's position that this
is the commercial decision by the | 2:19:09 | 2:19:13 | |
bank. The public shares are not
managed by the Treasury. They are | 2:19:13 | 2:19:20 | |
controlled by arms length company UK
FI, whose role is to manage the | 2:19:20 | 2:19:24 | |
public investment, and not to manage
the bank. It would set a dangerous | 2:19:24 | 2:19:29 | |
precedent if there was direct
Government interference in a | 2:19:29 | 2:19:32 | |
decision like this. Having said
that, the arrangement with UK FI | 2:19:32 | 2:19:37 | |
would not have stopped the
Government I believe from telling | 2:19:37 | 2:19:40 | |
the bank that they had got this
decision wrong. The announcement | 2:19:40 | 2:19:44 | |
this week from the Royal Bank of
Scotland, with its mineral | 2:19:44 | 2:19:48 | |
congestions is simply not good
enough -- minimal concessions is | 2:19:48 | 2:19:51 | |
simply not good enough. Only Melrose
in the Scottish Borders will be | 2:19:51 | 2:19:58 | |
given a state of execution, and no
one really expects these banks to | 2:19:58 | 2:20:03 | |
avoid closure ultimately. I was
therefore, very surprised to leave | 2:20:03 | 2:20:06 | |
the comments from the honourable
member for Ross, Skye and Lochaber. | 2:20:06 | 2:20:13 | |
He was praising the bank for these
announcements. I was also surprised | 2:20:13 | 2:20:16 | |
to read his comments when he seemed
to be taking credit for what he | 2:20:16 | 2:20:23 | |
anticipated would be good news. Will
be honourable member agree with me, | 2:20:23 | 2:20:29 | |
that with the banks that have been
temporarily rebuke of the moment, | 2:20:29 | 2:20:32 | |
would he agree with me that while
that is not good enough, the UK | 2:20:32 | 2:20:36 | |
Government should be exerting its
influence as the major shareholder, | 2:20:36 | 2:20:39 | |
on behalf of the taxpayer, and
should be exerting its much greater | 2:20:39 | 2:20:43 | |
in fluent in this matter? Allen-mac
and grateful -- influence in this | 2:20:43 | 2:20:48 | |
matter. I accept that while the
Government does own the shares, they | 2:20:48 | 2:20:55 | |
do not have direct control over the
day-to-day running of the company. | 2:20:55 | 2:20:59 | |
Equally, I believe, and are strongly
argued that the Government should be | 2:20:59 | 2:21:03 | |
applying moral pressure on the bank
to think again on this | 2:21:03 | 2:21:06 | |
decision-making process. So, I think
there's announcement from the bank | 2:21:06 | 2:21:13 | |
is not going far enough. The bank
has made some changes, minimal | 2:21:13 | 2:21:17 | |
changes, they have not fully
addressed the concerns of my | 2:21:17 | 2:21:22 | |
constituents have raised. And, I was
surprised I the comments from her | 2:21:22 | 2:21:29 | |
colleagues, the leader of the
Scottish National Party, here, at | 2:21:29 | 2:21:33 | |
Westminster, and he seemed to be
trying to take credit for the bank's | 2:21:33 | 2:21:38 | |
reversal, what he anticipated was
going to be good news from the | 2:21:38 | 2:21:42 | |
banks. As a prize from that. The
bank made clear that these changes | 2:21:42 | 2:21:47 | |
were in response to concerns made
from politicians to all committal -- | 2:21:47 | 2:21:53 | |
by politicians from all political
parties. | 2:21:53 | 2:22:04 | |
Now, the truth is the campaign
against this RBS bank closures has | 2:22:12 | 2:22:16 | |
been a truly cross-party effort, led
have to say by the affairs | 2:22:16 | 2:22:20 | |
committee. -- Scottish affairs
committee. I am pleased to see | 2:22:20 | 2:22:27 | |
members of those committee. I know
that they feel as passionately as I | 2:22:27 | 2:22:30 | |
do on this issue. All members who
are losing branches in | 2:22:30 | 2:22:35 | |
constituencies share a desire to
make the bank think again. For the | 2:22:35 | 2:22:40 | |
SNP, the loss of 52 branches across
Scotland is a price worth paying to | 2:22:40 | 2:22:44 | |
save ten branches. This is that the
communities in the Borders, it is | 2:22:44 | 2:22:54 | |
bad rural communities across
Scotland. This is bad for the | 2:22:54 | 2:22:57 | |
elderly and bad for the vulnerable.
It is a bad deal to avoid further | 2:22:57 | 2:23:01 | |
public scrutiny. It is a pleasure to
speak in this debate. Can I | 2:23:01 | 2:23:13 | |
congratulate the honourable member
for Stoke-on-Trent North. And Hazel | 2:23:13 | 2:23:16 | |
Grove for securing this debate, and
indeed for the backbench committee | 2:23:16 | 2:23:20 | |
for awarding the debate. I was
elected in 2010 following the great | 2:23:20 | 2:23:25 | |
financial crash of 2008. At the
time, MPs were tasked with two great | 2:23:25 | 2:23:32 | |
challenges. Firstly, to ensure that
the public never have too bailout | 2:23:32 | 2:23:36 | |
banking again, and secondly to
rebalance the economy | 2:23:36 | 2:23:38 | |
geographically. Both tasks in my
view require a fundamental rethink | 2:23:38 | 2:23:44 | |
of how the financial system works.
In reality, we have made little | 2:23:44 | 2:23:48 | |
progress over the last eight years.
Firstly and very briefly on moral | 2:23:48 | 2:23:52 | |
hazard. Reforms in my view have been
far too timid. We needed to break up | 2:23:52 | 2:23:59 | |
the big banks, move away from the
universal model,... That is the only | 2:23:59 | 2:24:06 | |
way to insure that the public up the
-- are protected. Instead of a | 2:24:06 | 2:24:19 | |
dominant of a few major banks.
Creating that more equal banking | 2:24:19 | 2:24:26 | |
system is a key element to rebalance
the economy of the British state on | 2:24:26 | 2:24:30 | |
a geographic basis. The banks,
having being bailed out, and we are | 2:24:30 | 2:24:37 | |
talking about is nearly £1.3 billion
in loans, grants and guarantees from | 2:24:37 | 2:24:43 | |
the public, they have now abandoned
our communities. Over 200 bank | 2:24:43 | 2:24:46 | |
branches have been closed in Wales
in the last six years. I'm sure the | 2:24:46 | 2:24:57 | |
same can be said for many rural
areas if England Scotland and | 2:24:57 | 2:25:01 | |
Northern Ireland. In my own
constituency, all the major towns | 2:25:01 | 2:25:06 | |
have faced bank closures, sometimes
left without any banking provision, | 2:25:06 | 2:25:12 | |
at all. Remember, we are talking
about a large chunk of the west of | 2:25:12 | 2:25:16 | |
my country, here. Since I have been
elected, HSBC have closed their | 2:25:16 | 2:25:20 | |
branch in front of me, and the
argument at the time was that | 2:25:20 | 2:25:23 | |
services would be provided
elsewhere. They then close that | 2:25:23 | 2:25:29 | |
branch, saying that it would be
provided yet elsewhere. Only then | 2:25:29 | 2:25:32 | |
did they closed the other branch
again. Just before Christmas in last | 2:25:32 | 2:25:40 | |
year, Lloyd announced its intention
to close in NatWest. Bank closures | 2:25:40 | 2:25:51 | |
create a four major product loans in
my view for the communities that we | 2:25:51 | 2:25:54 | |
serve, on top of pounds using their
status as commercial centres. Job | 2:25:54 | 2:26:04 | |
losses associated with the bank in
question. The loss of vital banking | 2:26:04 | 2:26:08 | |
services, and this is a huge problem
as has been mentioned in rural areas | 2:26:08 | 2:26:13 | |
where there is poor digital
infrastructure. That renders | 2:26:13 | 2:26:16 | |
Internet banking offer redundant. In
particular for people who continue | 2:26:16 | 2:26:21 | |
to rely on cash and cheques for
financial transactions. Thirdly, the | 2:26:21 | 2:26:25 | |
loss of banking services free ATMs
in our towns, and a number of the | 2:26:25 | 2:26:32 | |
speakers referred to the problem is
that can cause. And lastly, the loss | 2:26:32 | 2:26:38 | |
of banks undermine the financial
underpinning of our local | 2:26:38 | 2:26:41 | |
communities. This, despite the far
reaching consequences over recent | 2:26:41 | 2:26:46 | |
years. | 2:26:46 | 2:26:52 | |
Research indicates a blank closure
damages lending by 62%, a huge | 2:26:53 | 2:26:57 | |
impact on economic performance with
businesses deprived of access to | 2:26:57 | 2:27:01 | |
lending which is so important to
help them develop and maintain | 2:27:01 | 2:27:04 | |
sustainability. This furthers
geographical wealth and | 2:27:04 | 2:27:10 | |
inequalities, creating challenges in
those communities. What we are | 2:27:10 | 2:27:15 | |
seeing as mentioned earlier is a
huge market failure with dire | 2:27:15 | 2:27:22 | |
economic and social consequences,
and policymakers simply must address | 2:27:22 | 2:27:25 | |
the situation. We can of course look
across the world for new means | 2:27:25 | 2:27:31 | |
examples of what can be done to deal
with the situation we face. In the | 2:27:31 | 2:27:34 | |
Republic of Ireland they have
mainstreamed their credit unions to | 2:27:34 | 2:27:38 | |
make sure they provide banking
services to the citizens of their | 2:27:38 | 2:27:42 | |
country. In the US, credit unions
also provide mainstream functions | 2:27:42 | 2:27:47 | |
including critically lending to
businesses in the communities they | 2:27:47 | 2:27:49 | |
serve. They also have a strong
network of community banks which | 2:27:49 | 2:27:54 | |
underpin the local economy. In
Germany, their strong economic | 2:27:54 | 2:28:01 | |
performances underpinned by bank
networks, which essentially publicly | 2:28:01 | 2:28:04 | |
sponsored community banks. In my
view, we require action on three | 2:28:04 | 2:28:11 | |
fronts. Firstly, a US style
communities reinvestment act which | 2:28:11 | 2:28:18 | |
ensures the big banks ensure their
resources geographically and | 2:28:18 | 2:28:21 | |
equitably in order to ensure
businesses are able to obtain | 2:28:21 | 2:28:24 | |
finance and that the wealth is
shared evenly. Otherwise banks will | 2:28:24 | 2:28:29 | |
continue to conjugate on the City of
London in socially useless | 2:28:29 | 2:28:32 | |
investments which deepen the
geographical wealth inequalities in | 2:28:32 | 2:28:36 | |
the British economy. Secondly the
protection and enhancement of | 2:28:36 | 2:28:40 | |
post-office for national services,
operating essentially as | 2:28:40 | 2:28:45 | |
all-inclusive providers and
community banking hubs. For this to | 2:28:45 | 2:28:48 | |
bear fruit, we have two ensure that
the obsession of successive British | 2:28:48 | 2:28:54 | |
governments in rationalising the
network has to be resisted. Thirdly, | 2:28:54 | 2:28:58 | |
as the British Government owns 73%
of RBS which owns NatWest, surely | 2:28:58 | 2:29:04 | |
one option would be to change the
business model and use this | 2:29:04 | 2:29:08 | |
ready-made network. It appears
however that the priority of the UK | 2:29:08 | 2:29:12 | |
Treasury is to support bank closures
in order to pay RBS for failed to | 2:29:12 | 2:29:16 | |
city investors, in this would be an
enormous missed opportunity | 2:29:16 | 2:29:22 | |
considering that we the public
actually on a large share of our | 2:29:22 | 2:29:24 | |
bank. Another option put forward by
my constituency colleague Adam Pryde | 2:29:24 | 2:29:34 | |
would be in network under the Welsh
public bank brand. The consequences | 2:29:34 | 2:29:38 | |
of doing nothing means we will not
deal with the two major challenges | 2:29:38 | 2:29:43 | |
are set out at the beginning of my
speech. When the next national crash | 2:29:43 | 2:29:47 | |
comes, the public will have to bail
out failing financial institutions. | 2:29:47 | 2:29:51 | |
Secondly, there is no hope in
dealing with the grotesque | 2:29:51 | 2:29:55 | |
geographical wealth inequalities
which exist within Britain. I | 2:29:55 | 2:30:02 | |
commend the Member for Hazel Grove
and the Member for Stoke-on-Trent | 2:30:02 | 2:30:06 | |
North for acquiring this debate
today. My constituency is formed of | 2:30:06 | 2:30:11 | |
four market towns and a lot of
villages will be no surprise to | 2:30:11 | 2:30:13 | |
members we have seen a number of
bank closures in the past two years. | 2:30:13 | 2:30:18 | |
There are no branch is left at all
in Bradford-on-Avon or Corsham. | 2:30:18 | 2:30:22 | |
Locally, a key part of the problem
has been an imposition transport | 2:30:22 | 2:30:28 | |
infrastructure to get people into
those towns. -- insufficient | 2:30:28 | 2:30:31 | |
transport infrastructure. And an
above average ageing population. The | 2:30:31 | 2:30:39 | |
banking industry estimates bank
visits have been falling roughly a | 2:30:39 | 2:30:42 | |
third since 2011, and I do
understand and recognise banks are | 2:30:42 | 2:30:48 | |
businesses and their branch closes
are down to commercial reasons. | 2:30:48 | 2:30:52 | |
Fundamentally, because of advances
in technology, on loan and mobile | 2:30:52 | 2:30:57 | |
banking, this has significantly
reduced demand. -- online and mobile | 2:30:57 | 2:31:01 | |
banking. Checks are still the main
reason why people go to a bank | 2:31:01 | 2:31:05 | |
branch and a range of Czech usages
have declined severely, by 13% in | 2:31:05 | 2:31:12 | |
fact between 2014 and 15 alone. I do
correct the House, it was that check | 2:31:12 | 2:31:18 | |
usage has declined. Things have
changed, and I remember back in the | 2:31:18 | 2:31:24 | |
day when my mother used to pay in
the supermarket with a cheque-book | 2:31:24 | 2:31:28 | |
and a cheque guarantee card, now she
uses Apple pay her iPhone. To | 2:31:28 | 2:31:34 | |
explain the decrease in demand, we
must consider the purpose of banks, | 2:31:34 | 2:31:38 | |
for some people, as members have
alluded to, the banks are more than | 2:31:38 | 2:31:45 | |
just normal services. They are
actually a part of their community. | 2:31:45 | 2:31:49 | |
They offer them a personal
relationship, an opportunity to chat | 2:31:49 | 2:31:54 | |
and can prevent loneliness. This is
why closures for some is not just an | 2:31:54 | 2:31:58 | |
inconvenience or a sting but can
actually hurt. I know that has been | 2:31:58 | 2:32:02 | |
the sentiment in my own
constituency. With a view of banks | 2:32:02 | 2:32:08 | |
like this is decreasing, especially
with younger generations. Hence need | 2:32:08 | 2:32:11 | |
to specifically help and consider
the elderly when banks close. I must | 2:32:11 | 2:32:15 | |
note at this point, there are
provisions available to reduce the | 2:32:15 | 2:32:21 | |
impact of bank closures already. The
industry's access to banking | 2:32:21 | 2:32:27 | |
standard, launched in 2017, makes a
commitment to information about | 2:32:27 | 2:32:29 | |
branch closures along with the
options they have locally. To | 2:32:29 | 2:32:34 | |
continue to access banking services.
And it also includes specialist | 2:32:34 | 2:32:38 | |
assistance for customers who need
specific help. Importantly, it | 2:32:38 | 2:32:42 | |
commits to providing a minimum
three-month notice of branch | 2:32:42 | 2:32:45 | |
closures. However, I personally
don't think three months is enough. | 2:32:45 | 2:32:50 | |
It isn't long enough for people to
change their habits or to prepare | 2:32:50 | 2:32:54 | |
themselves. I call on the Minister
to call on the banks to operate a | 2:32:54 | 2:33:00 | |
six-month policy which seems fairer
and more adequate. It is vital that | 2:33:00 | 2:33:05 | |
when banks make decisions on
closures, they do review the public | 2:33:05 | 2:33:09 | |
transport network and infrastructure
and ensure that provision is | 2:33:09 | 2:33:12 | |
available so banks are accessible
within the parameters of the area. | 2:33:12 | 2:33:18 | |
Mobile banking is a perfect example
of a halfway house. It costs only | 2:33:18 | 2:33:24 | |
19% of a physical branch. RBS group
and Lloyds have built a large | 2:33:24 | 2:33:28 | |
network of mobile banks across the
country, and HSBC had just started | 2:33:28 | 2:33:32 | |
to do the same. These help in areas
where it is not accessible to have | 2:33:32 | 2:33:38 | |
an alternative provision and can be
used as transitional arrangements to | 2:33:38 | 2:33:41 | |
enable people to adapt and have more
time. I completely take on board the | 2:33:41 | 2:33:51 | |
point made about mobile banks, but
there is an issue here about the | 2:33:51 | 2:33:54 | |
public having to queue outside the
mobile bank in bad weather and | 2:33:54 | 2:34:00 | |
getting soaking wet, also because
many mobile banks handle paper | 2:34:00 | 2:34:03 | |
transactions. I don't believe mobile
banks are the answer, and proposing | 2:34:03 | 2:34:12 | |
potentially they are part of the
solution. Considering cold weather | 2:34:12 | 2:34:15 | |
is a valid and worthy point. I have
worked with Lloyds myself locally to | 2:34:15 | 2:34:20 | |
reduce the impact and manage the
transition of the loss of branch in | 2:34:20 | 2:34:24 | |
Bradford-on-Avon and caution, and
I'm pleased to say we have a | 2:34:24 | 2:34:27 | |
provisional agreement to a mobile
banking trial in Corsham. I am sure | 2:34:27 | 2:34:32 | |
you agree with me, the case is just
as valid in Bradford-on-Avon, and | 2:34:32 | 2:34:36 | |
I'm sure the Minister also agrees,
being a local member for Wiltshire. | 2:34:36 | 2:34:42 | |
Turning to the impact of branch bank
closures, the case is different in | 2:34:42 | 2:34:47 | |
every circumstance. When severe, I
can suggest a lack of investment and | 2:34:47 | 2:34:53 | |
training and support for old and
vulnerable people alongside the | 2:34:53 | 2:34:56 | |
closure. That's why I do reiterate
that I think three months is not | 2:34:56 | 2:35:00 | |
long enough. It also takes time to
build the confidence of some people | 2:35:00 | 2:35:06 | |
in the security of digital banking.
In fact, I have run three fraud | 2:35:06 | 2:35:12 | |
workshops alongside Lloyds bank and
Barclays would have been heavily | 2:35:12 | 2:35:15 | |
attended, particularly by the
elderly community. Support to | 2:35:15 | 2:35:19 | |
vulnerable residents and the elderly
is crucial. It is important to | 2:35:19 | 2:35:24 | |
remember that about 4 million people
are not online at all. These are | 2:35:24 | 2:35:28 | |
mainly the elderly. However, we must
not write off older people as | 2:35:28 | 2:35:34 | |
incapable of using the Internet, but
support and manage them and give | 2:35:34 | 2:35:37 | |
them the tools and skills to make
this progress. In fact, already over | 2:35:37 | 2:35:42 | |
600,000 customers aged over 80 have
online banking. They put me to shame | 2:35:42 | 2:35:48 | |
as I only just joined last year.
Another stumbling block to digital | 2:35:48 | 2:35:55 | |
banking can be deprivation. It can
render some people unable to own a | 2:35:55 | 2:35:59 | |
computer or a smartphone. There are
mobile blackspots and patchy | 2:35:59 | 2:36:04 | |
Internet services, both common in
the villages in my constituency. | 2:36:04 | 2:36:08 | |
Banks should ensure an alternative
option is at Festival, such as | 2:36:08 | 2:36:13 | |
mobile banking or sufficient public
transport to the nearest branch. -- | 2:36:13 | 2:36:19 | |
alternative options are available. I
do not think that post offices are | 2:36:19 | 2:36:27 | |
the answer, but I do think they are
part of the solution. Post offices | 2:36:27 | 2:36:31 | |
can play an essential role. Post Our
offices have been struggling for | 2:36:31 | 2:36:37 | |
years, but incorporating banking
into their services is proving to | 2:36:37 | 2:36:40 | |
increase football and engage people
in their services once again. | 2:36:40 | 2:36:44 | |
Currently the post office offers
baking banking services to many | 2:36:44 | 2:36:50 | |
customers and is expanding to
business customers as well. -- basic | 2:36:50 | 2:36:54 | |
banking. Awareness is the problem
here and it is also about changing | 2:36:54 | 2:36:58 | |
consumers habits. I was pleased that
in the autumn budget of 2017, the | 2:36:58 | 2:37:03 | |
Treasury wrote to the post office
and UK finance and stressed the | 2:37:03 | 2:37:07 | |
importance of raising public
awareness. I would like to know from | 2:37:07 | 2:37:11 | |
the Minister what has been the
result of that. In conclusion, I do | 2:37:11 | 2:37:16 | |
think it is important that we don't
resist technology. That we accept | 2:37:16 | 2:37:21 | |
and embrace change to enable
progress and grow our economy and | 2:37:21 | 2:37:24 | |
compete on the international stage.
But I do want to be realistic here, | 2:37:24 | 2:37:29 | |
I believe it is inevitable that all
branches will eventually close. In | 2:37:29 | 2:37:33 | |
fact, the supply of them has reduced
by 60% of my own lifetime. What I | 2:37:33 | 2:37:38 | |
think we should be doing is
encouraging a sustainable hub model | 2:37:38 | 2:37:42 | |
to emerge, a one-stop shop,
somewhere where post offices can be | 2:37:42 | 2:37:47 | |
banking facilities can be offered,
debt advice potentially, maybe even | 2:37:47 | 2:37:52 | |
see a beak, and this will help
safeguard our high streets. The | 2:37:52 | 2:37:59 | |
transition period is so important
along with the support available at | 2:37:59 | 2:38:02 | |
the moment. Banks do need to be
leading the way in training and | 2:38:02 | 2:38:05 | |
supporting people who are currently
unable to support themselves with | 2:38:05 | 2:38:10 | |
the digital skills. We must also
encourage the roll-out of mobile | 2:38:10 | 2:38:13 | |
banking. Today, I hope that I have
outlined that the banking world is | 2:38:13 | 2:38:20 | |
changing, but there is a process
where we can improve the transition | 2:38:20 | 2:38:24 | |
so that everybody in society can
continue to embrace technology, and | 2:38:24 | 2:38:31 | |
we must support our community. I
congratulate my honourable friend | 2:38:31 | 2:38:43 | |
from Stoke-on-Trent North for
securing the debate as well as my | 2:38:43 | 2:38:45 | |
honourable friend the MP for Hazel
Grove. I would like to speak to my | 2:38:45 | 2:38:53 | |
comments, or direct my comments to
Ramsbottom. Ramsbottom is frequently | 2:38:53 | 2:38:57 | |
in the top ten list of best places
to live and visit. Of the two market | 2:38:57 | 2:39:05 | |
towns I am proud to represent, it's
Ramsbottom that has been hit first | 2:39:05 | 2:39:10 | |
and hardest by this bank closure
trend. It is in need of a community | 2:39:10 | 2:39:17 | |
banking offer, visiting small
businesses in December, small | 2:39:17 | 2:39:23 | |
businesses, shopkeepers and
charities all spoke of problems they | 2:39:23 | 2:39:27 | |
faced keeping their heads above
water. Community banks and banks | 2:39:27 | 2:39:31 | |
generally bring tradespeople to the
town, they increase football and | 2:39:31 | 2:39:35 | |
help determine a town's future
prospects. Paying in, cashing up, | 2:39:35 | 2:39:41 | |
small impulse buys, floats, cash
only stalls, depositing, General | 2:39:41 | 2:39:45 | |
local bank services are all still
part of business life and life and | 2:39:45 | 2:39:50 | |
living Ramsbottom. But first
Barclays, then that West, closed. | 2:39:50 | 2:39:59 | |
Now Royal Bank of Scotland. -- then
NatWest. Reducing hours and | 2:39:59 | 2:40:03 | |
customers producing with it. For any
retail operation or business, a bank | 2:40:03 | 2:40:07 | |
nearby is likely to determine your
opening hours, as you will need to | 2:40:07 | 2:40:12 | |
factor in banks closing time with
your own. And that of your staff. It | 2:40:12 | 2:40:17 | |
will be one of the things you
consider to help you determine where | 2:40:17 | 2:40:20 | |
you set up in the first place.
Hoping to attract new shops, they | 2:40:20 | 2:40:29 | |
will quite understandably opt for
another eatery for the night-time | 2:40:29 | 2:40:32 | |
economy or reach for a high street
name thus risking and diluting the | 2:40:32 | 2:40:36 | |
independent offer of a town like
ours which is in its first instance | 2:40:36 | 2:40:41 | |
of the fundamental nature of the
place and why visitors come at all. | 2:40:41 | 2:40:47 | |
It is all tied into this proud
community which has pulled together | 2:40:47 | 2:40:51 | |
at a time of morning recently. And
after the Boxing Day floods two | 2:40:51 | 2:40:56 | |
years ago. There's always something
fun to do and good to see, whether | 2:40:56 | 2:41:01 | |
that is a festival, competitions,
head for the Hills music Festival, | 2:41:01 | 2:41:09 | |
civic and town markets, or just a
healthy walk around the shops, but | 2:41:09 | 2:41:12 | |
of course this isn't all at the door
the banks but they are a | 2:41:12 | 2:41:17 | |
considerable part of the tutelage of
aspects facing this community, | 2:41:17 | 2:41:22 | |
including business rates and public
transport links drying up -- | 2:41:22 | 2:41:25 | |
cumulative. It is the independent
nature of them spot and where he | 2:41:25 | 2:41:32 | |
gets the seal from, these are our
entrepreneurs, and they are rightly | 2:41:32 | 2:41:46 | |
defending their modern but
traditional offer, the butcher, the | 2:41:46 | 2:41:51 | |
baker, the dressmaker. The Art
gallery, coffee lounge, craft shops, | 2:41:51 | 2:41:56 | |
pet shops, chocolate factory and
specialist food stores and family | 2:41:56 | 2:42:02 | |
run restaurants and the charity
shops, they have all spoken to me | 2:42:02 | 2:42:05 | |
about the impact for them of this
drying up of available banking at | 2:42:05 | 2:42:08 | |
our local bank. The increasing risk
of isolation for our older | 2:42:08 | 2:42:15 | |
communities is also a consideration.
Those for whom it is the nearest | 2:42:15 | 2:42:20 | |
town, with a bang, they have average
broadband speed -- with a bank. With | 2:42:20 | 2:42:27 | |
my constituency right 62nd ad of 75
constituencies in the North West on | 2:42:27 | 2:42:33 | |
this measure, 467 out of 650
constituencies in the UK. Broadband | 2:42:33 | 2:42:42 | |
is practically nonexistent and we
all know that areas with no history | 2:42:42 | 2:42:45 | |
of suitable broadband will also
suffer from low skilled internet use | 2:42:45 | 2:42:50 | |
for the inevitable claim... Thank
you forgiving the won -- for giving | 2:42:50 | 2:43:03 | |
way, he makes a very good point
about broadband and I can vouch for | 2:43:03 | 2:43:07 | |
the fact that in my constituency it
is a nightmare either making mobile | 2:43:07 | 2:43:14 | |
phone calls or getting onto the
internet, so couldn't the government | 2:43:14 | 2:43:19 | |
say to the banks, until those areas
have the pleasure fast broadband | 2:43:19 | 2:43:22 | |
like the cities, dated not be
closing those -- dated not be | 2:43:22 | 2:43:28 | |
closing those services. That is an
excellent point, and too often when | 2:43:28 | 2:43:34 | |
we see the march of progress that
people assume and that the have-nots | 2:43:34 | 2:43:41 | |
will catch up and it doesn't require
any intervention from government... | 2:43:41 | 2:43:46 | |
When asking the town for their input
on this debate, the following | 2:43:46 | 2:43:49 | |
contribution stood out, Stephen
White, pet shop owner, on the high | 2:43:49 | 2:43:55 | |
street he said we banked with
NatWest in our have to queue at one | 2:43:55 | 2:44:02 | |
counter at the post office while
others are doing all sorts -- and we | 2:44:02 | 2:44:04 | |
have. There is now a delay in the
pavement hitting our account and so | 2:44:04 | 2:44:10 | |
when things are tight as they
sometimes are we can no longer rely | 2:44:10 | 2:44:14 | |
on getting our days recedes into
help with cash flow. We could move | 2:44:14 | 2:44:18 | |
banks but there's no confidence that
who we will move to will stay in the | 2:44:18 | 2:44:21 | |
town or nearby. The woman who runs a
luxury ice cream place says they | 2:44:21 | 2:44:28 | |
find it increasingly difficult to
bank cash. RBS is now closed two | 2:44:28 | 2:44:34 | |
days in the week and there is little
consideration given to the elderly | 2:44:34 | 2:44:39 | |
population who largely prefer
face-to-face banking. Louise from a | 2:44:39 | 2:44:45 | |
switch up, -- sweet shop, there are
so many less people in the town now, | 2:44:45 | 2:44:58 | |
and if the bank is now used as a
wine bar, there will be fewer people | 2:44:58 | 2:45:03 | |
there in the day and they won't be
buying sweets. Offering solution, | 2:45:03 | 2:45:09 | |
the government should sponsor more
banks to stay in the region and we | 2:45:09 | 2:45:15 | |
should look at extending and
mandating the role of credit unions. | 2:45:15 | 2:45:18 | |
Labour Bottom | 2:45:18 | 2:45:20 | |
we should make sure that community
banking is available. We should | 2:45:22 | 2:45:31 | |
reward tax with tax incentives,
community operations where the | 2:45:31 | 2:45:35 | |
balance sheet argument by the
existing bank is that a Danny Briggs | 2:45:35 | 2:45:38 | |
even. But I fear that the government
will simply say, we are just a | 2:45:38 | 2:45:44 | |
government, what can we do? There is
a role for government to intervene, | 2:45:44 | 2:45:48 | |
for the industrial strategy to
incorporate the experiences of these | 2:45:48 | 2:45:52 | |
hundreds of thousands of businesses.
These are the real employers, the | 2:45:52 | 2:45:58 | |
wealth creators and the tax
creators, 80% or more of our economy | 2:45:58 | 2:46:02 | |
is made from these people and
job-creating heroes sweating so the | 2:46:02 | 2:46:07 | |
government gets its tax receipts. So
don't dismiss Tiago Sousa that this | 2:46:07 | 2:46:12 | |
is simply a commercial decision for
the big banks. -- so don't dismiss | 2:46:12 | 2:46:18 | |
the argument that this is simply a
commercial decision. They can stand | 2:46:18 | 2:46:23 | |
up in central these real employers
and heed these concerns on the | 2:46:23 | 2:46:26 | |
withdrawal of banks, committing to
new community banking and include | 2:46:26 | 2:46:31 | |
everyone in our society to benefit.
Thank you very much. I congratulate | 2:46:31 | 2:46:40 | |
the members for Stoke-on-Trent North
and Hazel Grove for securing this | 2:46:40 | 2:46:43 | |
debate. This is a matter of interest
to me as early in December at Lloyds | 2:46:43 | 2:46:48 | |
Bank announced the closure of three
branches in the Waverley Valley | 2:46:48 | 2:46:53 | |
dairy in Suffolk, in fungi >>
STUDIO: -- Waverley Valley area in | 2:46:53 | 2:47:08 | |
Suffolk, including my constituency
for the shortly after the Lloyd's | 2:47:08 | 2:47:12 | |
announcement NatWest announced the
closure of their branch also in my | 2:47:12 | 2:47:19 | |
constituency, and the main issue of
concern with these closures is that | 2:47:19 | 2:47:21 | |
if Lloyds proceeds with the closure
of their branch there will be no | 2:47:21 | 2:47:27 | |
bank left in the town, and I believe
that we need to be putting in place | 2:47:27 | 2:47:31 | |
policies to prevent this happening.
Some might say that I am a Luddite | 2:47:31 | 2:47:36 | |
in making such suggestions, that one
can't hold back the inevitable march | 2:47:36 | 2:47:40 | |
of the internet and modernisation,
but my concern is that some banks | 2:47:40 | 2:47:47 | |
are closing branches in an
indiscriminate non-strategic way | 2:47:47 | 2:47:51 | |
that will have an adverse negative
impact on the elderly and the | 2:47:51 | 2:47:55 | |
disabled and those without transport
and small businesses, and those | 2:47:55 | 2:48:01 | |
economies of those towns and their
hinterlands which are left with no | 2:48:01 | 2:48:04 | |
banks standing. In the last two
years Bart Bles and -- Bart Bles and | 2:48:04 | 2:48:13 | |
the Lloyds -- Bart | 2:48:13 | 2:48:16 | |
this has upset many people who
transferred their accounts to Lloyds | 2:48:19 | 2:48:28 | |
after the previous closures, and
this will have a real impact on many | 2:48:28 | 2:48:31 | |
people. There are three concerns I
would like to highlight, firstly if | 2:48:31 | 2:48:38 | |
Lloyds proceed with their closure
there will be no cashpoint available | 2:48:38 | 2:48:41 | |
in the town centre with 20 four
sevenths access, and Bungay has | 2:48:41 | 2:48:50 | |
three street fairs each year which
brings a lot of business into the | 2:48:50 | 2:48:54 | |
town, an estimated 1500 people came
at Christmas and there were long | 2:48:54 | 2:48:57 | |
queues at the Lloyds cashpoint, and
many of the traders go to these | 2:48:57 | 2:49:02 | |
street fairs only handle cash and if
it is not available locally then | 2:49:02 | 2:49:06 | |
there is a real worry that these
fares which add so much to the | 2:49:06 | 2:49:10 | |
vibrancy of the town will suffer.
Secondly, it is important to | 2:49:10 | 2:49:15 | |
emphasise that many businesses both
in the towns and countryside still | 2:49:15 | 2:49:19 | |
use cash and cheques and the lack of
immediate access to cash and deposit | 2:49:19 | 2:49:25 | |
points will in the short term at
least cause considerable | 2:49:25 | 2:49:29 | |
inconvenience and added expense.
From my own experience as a partner | 2:49:29 | 2:49:33 | |
in a local family farm I would
comment that for several farmers the | 2:49:33 | 2:49:38 | |
easiest way to handle payments from
the grain merchant is still through | 2:49:38 | 2:49:43 | |
checks and rents from small
businesses for farm buildings and | 2:49:43 | 2:49:49 | |
workshops are quite often still paid
by cash. It should also be pointed | 2:49:49 | 2:49:54 | |
out that the change to internet
banking in rural areas will require | 2:49:54 | 2:49:58 | |
considerable improvement in
broadband connectivity which is an | 2:49:58 | 2:50:03 | |
issue we have heard throughout this
debate. The third one, the lack of a | 2:50:03 | 2:50:10 | |
bank in Bungay were fact the town's
ability to draw in customers on the | 2:50:10 | 2:50:14 | |
surrounding -- will effect. Lloyds
are redirecting customers and what | 2:50:14 | 2:50:21 | |
this means is that people who came
to Bungay, say, once a week to go to | 2:50:21 | 2:50:27 | |
the bank and do their shopping, they
might now do all of this in tackles. | 2:50:27 | 2:50:35 | |
-- Beccles. I asked Lloyds to
reconsider their decision, and it is | 2:50:35 | 2:50:41 | |
appointing I have not had a response
from them though hopefully this | 2:50:41 | 2:50:45 | |
means that they are giving the
matter serious consideration -- it | 2:50:45 | 2:50:48 | |
is disappointing. With regard to the
closure of NatWest in Beccles I had | 2:50:48 | 2:50:54 | |
a meeting with them last month and
whilst I'm disappointed with their | 2:50:54 | 2:50:56 | |
decision they took me through in
some detail as to why they have | 2:50:56 | 2:51:02 | |
reached the decision to close the
branch and how they are now engaging | 2:51:02 | 2:51:05 | |
with their customers. By prepared to
work with the local community and as | 2:51:05 | 2:51:10 | |
well as the mobile bank and working
with the post office they have plans | 2:51:10 | 2:51:19 | |
for a community banker who would
have set days in the town possibly | 2:51:19 | 2:51:23 | |
at the library and in the town hall.
I've mentioned the closure of Lloyds | 2:51:23 | 2:51:27 | |
in Bungay would mean there is no AGM
available and it is necessary to | 2:51:27 | 2:51:34 | |
make sure there's is a good network
of cashpoint across rural Britain. I | 2:51:34 | 2:51:44 | |
urge the government to support the
FSP campaign to get the payment | 2:51:44 | 2:51:49 | |
system regulator to make sure they
are suitable measures in place to | 2:51:49 | 2:51:56 | |
guarantee the consumers can easily
access their money without charge. | 2:51:56 | 2:52:00 | |
As I've mentioned, it is important
that the measures are introduced | 2:52:00 | 2:52:05 | |
that can help avoid a situation
where towns are left without a | 2:52:05 | 2:52:10 | |
single bank and this could be done
in a variety of ways, in particular | 2:52:10 | 2:52:15 | |
building on the post office network,
which generally has a better rural | 2:52:15 | 2:52:20 | |
rich than that of high-street banks,
and the policies put in place first | 2:52:20 | 2:52:26 | |
by the coalition government and the
current government, have been | 2:52:26 | 2:52:30 | |
successful in making the post office
network more resilient. In Bungay | 2:52:30 | 2:52:35 | |
the post office is in the newsagents
and there's a drawback of lack of | 2:52:35 | 2:52:38 | |
space. In towns which are at risk of
having no bank I would suggest the | 2:52:38 | 2:52:44 | |
consideration should be given to
providing additional funding to put | 2:52:44 | 2:52:48 | |
in place a more substantial post
office branch. Ultimately I would | 2:52:48 | 2:52:52 | |
look for this to be funded by the
banks. Alternative options that | 2:52:52 | 2:52:56 | |
could be considered our mutual
societies and pop-up banks where the | 2:52:56 | 2:53:02 | |
high-street banks join together to
sustain a presence in the town. In | 2:53:02 | 2:53:09 | |
conclusion Bungay was a pioneer of
provincial banking with a precursor | 2:53:09 | 2:53:14 | |
of Berkeley 's -- Barclays Bank
opening a branch in 1908, and menus | 2:53:14 | 2:53:23 | |
on it will be a very sad day if the
town no longer has its own bank -- | 2:53:23 | 2:53:28 | |
over a hundred years on. We have to
make sure this does not happen. | 2:53:28 | 2:53:35 | |
Thank you very much. It is a great
pleasure to follow the member for | 2:53:35 | 2:53:45 | |
Waverley, and the member for Bury
North and other contributors to this | 2:53:45 | 2:53:48 | |
debate but I would like to pay
thanks in particular to my friend | 2:53:48 | 2:53:52 | |
the member for Stoke-on-Trent North,
I was intrigued by the description | 2:53:52 | 2:53:59 | |
of her first experience of banking,
remembering as I did my wonderful | 2:53:59 | 2:54:04 | |
cheque-book with a nice colourful
kingfisher on. Thanks as well to the | 2:54:04 | 2:54:11 | |
member for Hazel Grove who also
secured this debate. I have to say, | 2:54:11 | 2:54:19 | |
I am completely fed up, my
constituents are fed up and many | 2:54:19 | 2:54:23 | |
businesses in my constituency are
fed up as well, and the reason we | 2:54:23 | 2:54:29 | |
are fed up is that we are
considering sea of 240 square miles | 2:54:29 | 2:54:33 | |
and we have a total of one bank
branch left. -- we are a | 2:54:33 | 2:54:39 | |
constituency for. I don't know what
happened about the rhetoric of the | 2:54:39 | 2:54:49 | |
last bank, but that did not happen
in areas like mine and it is not | 2:54:49 | 2:54:54 | |
happening in great areas of the
country. I welcome the banking | 2:54:54 | 2:54:58 | |
protocol, and the cross-party group
of members of this house, we went to | 2:54:58 | 2:55:02 | |
see Professor Grix about that and I
welcomed it and I welcomed many of | 2:55:02 | 2:55:06 | |
the suggestions in it. I welcomed
the fact that the protocol | 2:55:06 | 2:55:11 | |
highlighted the need for the
collection of cash from businesses | 2:55:11 | 2:55:20 | |
and the coordination of that, and I
welcomed many of the things in that | 2:55:20 | 2:55:23 | |
voluntary code but what strikes me
is that there is not enough that has | 2:55:23 | 2:55:29 | |
happened since and it certainly has
not halted the closure of bank | 2:55:29 | 2:55:34 | |
branches. In 2016 the last of the
two banks to close, at that time, | 2:55:34 | 2:55:47 | |
myself and a staff member took it
upon ourselves to visit 126 | 2:55:47 | 2:55:50 | |
businesses on the high streets. | 2:55:50 | 2:56:02 | |
Apologies to any constituents we may
have left out. As we went around, we | 2:56:02 | 2:56:07 | |
discovered the many issues facing
businesses on our high streets. | 2:56:07 | 2:56:14 | |
Earlier in the debate, some
reference was made to post offices. | 2:56:14 | 2:56:19 | |
I welcome, as someone who has worked
with local businesses, individuals | 2:56:19 | 2:56:24 | |
in my constituencies and post
offices, I welcome where | 2:56:24 | 2:56:28 | |
improvements have been made and I
also welcome the work the Treasury | 2:56:28 | 2:56:32 | |
has done on the standardisation so
we are not now in that daft position | 2:56:32 | 2:56:36 | |
we were in which was, it worked with
some bags for and things, it worked | 2:56:36 | 2:56:43 | |
with others for other things, it is
much more standardised and better. | 2:56:43 | 2:56:48 | |
There are Post Office branches where
that works magnificently. But there | 2:56:48 | 2:56:51 | |
are post Office branches where it
simply does not work, and it doesn't | 2:56:51 | 2:56:57 | |
work because if you are in the
middle of somebody buying a packet | 2:56:57 | 2:57:00 | |
of crisps and somebody buying a bar
of chocolate, and you have got your | 2:57:00 | 2:57:06 | |
banking transaction to deal with in
the middle, that is not a | 2:57:06 | 2:57:09 | |
sustainable solution. If we are
looking at developing the Post | 2:57:09 | 2:57:14 | |
Office in that way, that may be one
exciting option we can look at round | 2:57:14 | 2:57:19 | |
the country, and I know for a fact
the post offices are doing all sorts | 2:57:19 | 2:57:24 | |
of things, for instance, the work
they now do to make access for | 2:57:24 | 2:57:29 | |
credit union members, to access cash
in that way, I welcome that where it | 2:57:29 | 2:57:35 | |
works but we must look at what
provision is put in place where bank | 2:57:35 | 2:57:39 | |
closures happen. One member in this
debate spoke about when a bank | 2:57:39 | 2:57:47 | |
wishes to close, perhaps the
notification period should be | 2:57:47 | 2:57:50 | |
longer. I think there's a case by
that, but I also think into many | 2:57:50 | 2:57:55 | |
cases we know that when a bank
notifies its going to close a | 2:57:55 | 2:57:58 | |
branch, that is what it's going to
do. We can petition here to our | 2:57:58 | 2:58:04 | |
hearts content, we can say there can
be 38 degrees petitions, petitions | 2:58:04 | 2:58:07 | |
in this House, changed all
petitions, in fact we could even | 2:58:07 | 2:58:12 | |
invent our own website and have some
more petitions, but we know in most | 2:58:12 | 2:58:16 | |
cases it does not make one jot of
difference. I thank the Member for | 2:58:16 | 2:58:24 | |
giving way. As the honourable member
agree with me that more time does | 2:58:24 | 2:58:28 | |
give people the ability to hone in
on their digital skills and that | 2:58:28 | 2:58:32 | |
banks have a role for that to make
sure people are prepared for the | 2:58:32 | 2:58:36 | |
closures, so whilst they may still
close, it does give people time to | 2:58:36 | 2:58:39 | |
prepare? Indeed, and I would welcome
that. I think that's a very positive | 2:58:39 | 2:58:45 | |
point. But I think that when we look
at this issue as well, we have to | 2:58:45 | 2:58:54 | |
look at what the banks have been
saying to us. My honourable friend | 2:58:54 | 2:58:59 | |
spoke about some very commercial,
sensitive information she was not | 2:58:59 | 2:59:05 | |
allowed to have. I had a similar
experience because I also asked for | 2:59:05 | 2:59:11 | |
sensitive information like how many
people had accounts at the bank, | 2:59:11 | 2:59:14 | |
that was not something they could
tell me but better than that, I was | 2:59:14 | 2:59:18 | |
told that I asked how many people on
a typical week went in with queries, | 2:59:18 | 2:59:22 | |
I was told something
earth-shattering. I was actually | 2:59:22 | 2:59:27 | |
told that queries might not really
be queries. I asked what this meant. | 2:59:27 | 2:59:31 | |
I was told that if someone saw
someone going into the bank and | 2:59:31 | 2:59:38 | |
standing by the Cancer and asking a
question, that may not be a query. I | 2:59:38 | 2:59:42 | |
made the point that for the person
asking the question it was very much | 2:59:42 | 2:59:47 | |
a query. I was told of it was not a
formal transaction, it was not a | 2:59:47 | 2:59:52 | |
query. It is a parallel universe.
What I would say is as we move at | 2:59:52 | 2:59:58 | |
this juncture, we need to see what
on earth the banks plan to do next. | 2:59:58 | 3:00:02 | |
It is no longer, one honourable
member made the case about, first of | 3:00:02 | 3:00:08 | |
all we were fobbed off by being told
one could go to the next village, | 3:00:08 | 3:00:12 | |
the next town, it was all right, it
was just a walk down the road. | 3:00:12 | 3:00:17 | |
Something like an old-fashioned
countryside treasure hunt. You go | 3:00:17 | 3:00:20 | |
onto the next Post Office, then you
off to the next one. After that, | 3:00:20 | 3:00:25 | |
suddenly you realise you have to go
quite a long way to the next post. | 3:00:25 | 3:00:31 | |
This cannot be a way of dealing with
this problem. I also think of utmost | 3:00:31 | 3:00:36 | |
seriousness is what we do about the
issue of cashpoints and ATMs. I | 3:00:36 | 3:00:41 | |
think there are about 70,000 of them
in the country at the moment, and | 3:00:41 | 3:00:46 | |
the bulk of them are free to use. I
know at the start of 2016, the then | 3:00:46 | 3:00:53 | |
chair of the Treasury Select
Committee, Andrew Tyree, made the | 3:00:53 | 3:00:56 | |
point that it was of great concern
what would happen in terms of | 3:00:56 | 3:01:00 | |
charging for these cashpoints.
Potential closure and charging for | 3:01:00 | 3:01:06 | |
these cashpoints, Andrew Tyree made
the point then that if this was not | 3:01:06 | 3:01:12 | |
something, the ATM companies are
going to deal with, it is something | 3:01:12 | 3:01:17 | |
that this House needed to look at.
He rightly made the point that it | 3:01:17 | 3:01:22 | |
was going to affect people in rural
communities and people on low | 3:01:22 | 3:01:28 | |
incomes the most. That is of serious
concern. As far as I can see at the | 3:01:28 | 3:01:32 | |
moment, one of the problems with
what's happening with cashpoints and | 3:01:32 | 3:01:36 | |
ATMs, broadly speaking, the 38 or
however many banks that are part of | 3:01:36 | 3:01:41 | |
the ATM network are having a little
scrap. As they knock metaphorical | 3:01:41 | 3:01:47 | |
spots off each other, each deciding
they are all paying too much, it is | 3:01:47 | 3:01:51 | |
the customer that is losing out.
Thank you for giving way. The | 3:01:51 | 3:01:58 | |
honourable member may not be aware
that actually the price of an | 3:01:58 | 3:02:01 | |
average transaction has not gone up
for nine years, it is not costing | 3:02:01 | 3:02:05 | |
the banks more money, they just
don't want to pay for it any more. I | 3:02:05 | 3:02:09 | |
think the average, where there are
charges, I think the average on a | 3:02:09 | 3:02:15 | |
single transaction is £1.70. That is
seriously concerning, that we are | 3:02:15 | 3:02:21 | |
not looking more at free access to
cash. I think that is a basic right. | 3:02:21 | 3:02:28 | |
We do not say this about drinking
water. We do not say this about many | 3:02:28 | 3:02:33 | |
other things. It is nonsense that we
are in a situation where we are | 3:02:33 | 3:02:36 | |
prepared to let these banks charge
money for us to basically go to a | 3:02:36 | 3:02:42 | |
cashpoint, and that undoubtedly will
hit hardest in poorest communities. | 3:02:42 | 3:02:48 | |
I'd like to pay credit to some
examples in my constituency of where | 3:02:48 | 3:02:57 | |
people are fighting against that. I
can think of in con when town | 3:02:57 | 3:03:02 | |
Council, the businesses that, it's a
wonderful town, con win. I do not | 3:03:02 | 3:03:06 | |
know if members have visited, it's
fantastic. I do not know if you have | 3:03:06 | 3:03:12 | |
been on the steam train, sorry. It's
a wonderful place for tourism. It | 3:03:12 | 3:03:19 | |
has wonderful local businesses,
there they want to really develop | 3:03:19 | 3:03:22 | |
community banking and look at that
in a very real way. People are | 3:03:22 | 3:03:25 | |
adapting, we are not expecting
Captain Mannering and Sergeant | 3:03:25 | 3:03:31 | |
Wilson to come back, we are not
expecting to go back to a previous | 3:03:31 | 3:03:35 | |
Iraq but what we do need is a type
of banking that works for us, a type | 3:03:35 | 3:03:39 | |
of banking that works for
communities like those in my | 3:03:39 | 3:03:44 | |
constituency and others across the
country. What we need to do is for | 3:03:44 | 3:03:47 | |
the government to step in if the
banks or the ATMs are going to start | 3:03:47 | 3:03:53 | |
this mechanism of charging, of
closing the banks, we need the | 3:03:53 | 3:03:56 | |
Treasury to be tough on them. We
must stand up to them because at the | 3:03:56 | 3:04:00 | |
end of the day, the world's local
banks and other local banks, if they | 3:04:00 | 3:04:05 | |
really mean anything by community
banking, they must mean it | 3:04:05 | 3:04:08 | |
nationwide. It's a great honour to
follow the honourable member for | 3:04:08 | 3:04:17 | |
Clywd South. I would like to
congratulate also the honourable | 3:04:17 | 3:04:22 | |
member for Stoke-on-Trent North and
Hazel Grove for securing the debate. | 3:04:22 | 3:04:26 | |
Technology has been used to
modernise the banking sector for | 3:04:26 | 3:04:30 | |
decades, and as an industry, banking
has seized the opportunity to use | 3:04:30 | 3:04:34 | |
technology to mostly improve the
customer experience wherever it is | 3:04:34 | 3:04:37 | |
arisen. In the 90s, I worked as a
technology procurement manager for a | 3:04:37 | 3:04:42 | |
bank and during this time, we
upgraded the bank infrastructure. | 3:04:42 | 3:04:47 | |
Thinking back, the introduction of
the ATM network would have been one | 3:04:47 | 3:04:51 | |
of the first steps away from
personalised face-to-face banking, | 3:04:51 | 3:04:54 | |
but what would we do without them?
The answer is, we could not do | 3:04:54 | 3:04:58 | |
without them, so I could not agree
more with the honourable member for | 3:04:58 | 3:05:02 | |
Clywd South that it is important as
we do face changes in our banking | 3:05:02 | 3:05:07 | |
industry that the ATM network and
free access to the ATM network is | 3:05:07 | 3:05:12 | |
preserved. Throughout the country.
The revolution in thin tech has | 3:05:12 | 3:05:16 | |
forced another change in the banking
model, as banks no longer collect | 3:05:16 | 3:05:21 | |
the income of merchants and disburse
the cash to individuals. Our | 3:05:21 | 3:05:26 | |
behavioural patterns have changed
with technology. In 1988, we have | 3:05:26 | 3:05:29 | |
over 20,000 bank branches in the UK.
25% of adults were paid in cash. In | 3:05:29 | 3:05:37 | |
many respects, cash has had its
heyday. Now accounting for less than | 3:05:37 | 3:05:42 | |
50% of transactions, we have seen a
decline of 11% between 2015 and 2016 | 3:05:42 | 3:05:47 | |
alone. Cash may still be king about
its crown is certainly snipping. | 3:05:47 | 3:05:53 | |
This trend is set to continue.
Already 6% of the population rarely | 3:05:53 | 3:05:59 | |
use cash, young people in particular
but by digital payment methods such | 3:05:59 | 3:06:03 | |
as card, online and mobile banking.
The model of branch banking as a | 3:06:03 | 3:06:10 | |
conduit for cash movements therefore
needs to change to ensure banks | 3:06:10 | 3:06:13 | |
remain commercially viable. The
speed of change has surprised many | 3:06:13 | 3:06:18 | |
communities and with the uptake of
digital banking being relatively | 3:06:18 | 3:06:23 | |
recent, it is important that
adequate notice is given when | 3:06:23 | 3:06:25 | |
changes are made to local banking
services. In 2012, at least one of | 3:06:25 | 3:06:32 | |
our major banks had no major mobile
users at all, today there are more | 3:06:32 | 3:06:37 | |
logins to mobile banking per day
than via the web. Meanwhile the | 3:06:37 | 3:06:43 | |
average branch bank customer will go
to the bank to three months. Branch | 3:06:43 | 3:06:49 | |
closes throughout the nation are
largely in response to decline in | 3:06:49 | 3:06:52 | |
demand. In my constituency, Barclays
Bank in East Woodring closed citing | 3:06:52 | 3:06:56 | |
a fall in transactions. However they
have identified 80 customers who | 3:06:56 | 3:07:03 | |
exclusively use the branch services
for their banking needs and these | 3:07:03 | 3:07:06 | |
people need to have alternative
provisions put in place. It is | 3:07:06 | 3:07:11 | |
important that closing banks get in
touch with customers and advise them | 3:07:11 | 3:07:16 | |
about all the other services
available online, via telephones or | 3:07:16 | 3:07:20 | |
mobile banking. But many banks to go
by on this and offer training and | 3:07:20 | 3:07:25 | |
support to customers, especially the
elderly and most vulnerable, | 3:07:25 | 3:07:28 | |
ensuring they are not excluded by
the shift to digital services. Like | 3:07:28 | 3:07:33 | |
everybody else in this discussion, I
am concerned there is an increased | 3:07:33 | 3:07:38 | |
risk of financial exclusion due to
either a lack of digital know-how or | 3:07:38 | 3:07:42 | |
access to technology. For many,
especially older members of society, | 3:07:42 | 3:07:47 | |
personal banking is something they
greatly value. In many cases, the | 3:07:47 | 3:07:50 | |
alternatives are not suitable. We
need to make sure these customers | 3:07:50 | 3:07:55 | |
know that the Post Office offers
branch banking services for all | 3:07:55 | 3:07:59 | |
major high street banks. They can
facilitate all the things they do in | 3:07:59 | 3:08:05 | |
a bank, traditional cash and cheques
services, and this is a good | 3:08:05 | 3:08:10 | |
alternative is over 98% of the
population lives within three miles | 3:08:10 | 3:08:13 | |
of one of our 11,600 post offices
nationwide and that makes up | 3:08:13 | 3:08:18 | |
Europe's biggest retail network. The
structure of community services are | 3:08:18 | 3:08:24 | |
changing, with traditional high
street names consolidating into | 3:08:24 | 3:08:28 | |
shared services. And becoming a
community hub is important. In | 3:08:28 | 3:08:33 | |
Chichester, the Post Office has
managed this well, collaborating | 3:08:33 | 3:08:37 | |
with retailers like me corner shops
and book shops, and this is a | 3:08:37 | 3:08:43 | |
win-win for sustainability, many
people in this House would have been | 3:08:43 | 3:08:45 | |
involved in debates about Post
Office closures in the past. We must | 3:08:45 | 3:08:48 | |
make sure the network of
face-to-face services is secured in | 3:08:48 | 3:08:54 | |
some way, and I believe the post
offices are a good alternative. It | 3:08:54 | 3:08:59 | |
is important that these are well
designed as has been mentioned, I | 3:08:59 | 3:09:04 | |
recently visited the new Chichester
Post Office which is co-located with | 3:09:04 | 3:09:08 | |
the Sussex stationers and book
shops. Here there are seats | 3:09:08 | 3:09:11 | |
available for those who can't kulak
or stand for a long time, is laugh | 3:09:11 | 3:09:15 | |
on hand to assist people using
self-service kiosks, all waiting for | 3:09:15 | 3:09:20 | |
those who are waiting to use a
cashier, which are similar to the | 3:09:20 | 3:09:23 | |
old bank branches with privacy that
is provided and needed. I believe | 3:09:23 | 3:09:29 | |
this is the right model, but these
new post offices must be well | 3:09:29 | 3:09:35 | |
designed and perhaps more can be
done to promote best practice and | 3:09:35 | 3:09:38 | |
best practice design. The government
has made significant strides to | 3:09:38 | 3:09:44 | |
improve both mobile and broadband
coverage with 95% of households now | 3:09:44 | 3:09:48 | |
able to get superfast broadband.
Alas, in rural areas such as my own | 3:09:48 | 3:09:53 | |
constituency many still suffer from
areas of poor connectivity with some | 3:09:53 | 3:09:57 | |
ranking in the worst 10% across the
country. As we rely more and more on | 3:09:57 | 3:10:03 | |
digital banking services, blanket
connectivity is becoming | 3:10:03 | 3:10:05 | |
increasingly important and we must
continue our investment in digital | 3:10:05 | 3:10:09 | |
connectivity to mitigate the impact
of branch closures. And to allow | 3:10:09 | 3:10:14 | |
people to utilise the technology of
today. It's clear that for some of | 3:10:14 | 3:10:19 | |
the older generation, the digital
era will already have all but passed | 3:10:19 | 3:10:24 | |
them by, and expecting them to bank
digitally is simply not realistic. | 3:10:24 | 3:10:28 | |
In cases such as these, the post
Office must be advertised as the new | 3:10:28 | 3:10:33 | |
place for local face-to-face
banking. I am concerned that banks | 3:10:33 | 3:10:37 | |
may be reticent to advertise Post
Office banking as indeed they may | 3:10:37 | 3:10:40 | |
also compete in some areas. All
businesses must adapt to stay ahead | 3:10:40 | 3:10:46 | |
of the game. The major banks are
under increasing pressure to | 3:10:46 | 3:10:50 | |
modernise their services with new
entrants destructing banking models | 3:10:50 | 3:10:53 | |
for businesses and individuals. | 3:10:53 | 3:11:01 | |
To keep our major banks, customers
had to move to a more digital model | 3:11:01 | 3:11:08 | |
of working, and changes in the
banking sector have revolutionised | 3:11:08 | 3:11:11 | |
the way we do business and the way
we handle our personal finances and | 3:11:11 | 3:11:15 | |
overall I believe these have been to
the benefit of society. The advent | 3:11:15 | 3:11:20 | |
of the microchip, internet and
mobile services have altered many of | 3:11:20 | 3:11:24 | |
our industries and banking is no
different. Banking practices have | 3:11:24 | 3:11:28 | |
had to change to remain commercially
viable and invest in digital banking | 3:11:28 | 3:11:32 | |
platforms which has made life easier
for most of us but we must take care | 3:11:32 | 3:11:37 | |
of those who are not willing or able
to use the services, these | 3:11:37 | 3:11:41 | |
individuals must be informed of the
other service providers like post | 3:11:41 | 3:11:45 | |
office it to -- post offices and
banks that are closing have a moral | 3:11:45 | 3:11:54 | |
obligation to do so for these people
put up. Congratulations to the | 3:11:54 | 3:12:05 | |
members who secured this debate, and
by the end of June this year four | 3:12:05 | 3:12:10 | |
bank branches will have closed in my
constituency of Sedgefield. NatWest | 3:12:10 | 3:12:13 | |
are closing two branches and
Santander have closed their branch, | 3:12:13 | 3:12:21 | |
which is across the street from the
NatWest branch which has closed and | 3:12:21 | 3:12:26 | |
Barclays are closing their branch in
Sedgefield village. This recent | 3:12:26 | 3:12:32 | |
round of closures will deprive every
community in my constituency of a | 3:12:32 | 3:12:36 | |
bank branch except one which will
still have a Halifax, Barclays and | 3:12:36 | 3:12:43 | |
TSB were mainly, that is the biggest
town in the constituency with about | 3:12:43 | 3:12:46 | |
30,000 people. The local post office
still operates in these communities | 3:12:46 | 3:12:52 | |
and offers banking facilities but
when you want to discuss issues | 3:12:52 | 3:12:58 | |
relating to your banks, like
mortgages and loans, such failures | 3:12:58 | 3:13:01 | |
for a rural constituency and the
surrounding villages and hamlets, | 3:13:01 | 3:13:10 | |
the bus network is not what it
should be and it is difficult to get | 3:13:10 | 3:13:13 | |
around if you don't have a car or
other means of transport. Most | 3:13:13 | 3:13:17 | |
banking is now done online but there
are still those in our communities | 3:13:17 | 3:13:25 | |
who need to be able to walk into
their local bank branch because they | 3:13:25 | 3:13:28 | |
are not online and don't have access
to a telephone, especially the | 3:13:28 | 3:13:32 | |
elderly foot -- elderly | 3:13:32 | 3:13:38 | |
many banks have acknowledged these
concerns. NatWest will be deploying | 3:13:39 | 3:13:48 | |
mobile banking services to reach out
to customers, when a branch has | 3:13:48 | 3:13:50 | |
closed. Other banks have pointed out
that the way people do their banking | 3:13:50 | 3:13:56 | |
has changed radically over the last
few years and NatWest told me the | 3:13:56 | 3:13:59 | |
number of people using their bank
branch network has fallen by 40% | 3:13:59 | 3:14:07 | |
since 2014 and in the same period
mobile transactions have increased | 3:14:07 | 3:14:12 | |
by 73% and in the first half of 2017
1.1 billion mobile and online | 3:14:12 | 3:14:21 | |
transactions were carried out by
NatWest customers. In the NatWest | 3:14:21 | 3:14:25 | |
branches in my constituents 88% of
customers and 89% of their customers | 3:14:25 | 3:14:35 | |
in the two branches of banking other
ways for the transactions have | 3:14:35 | 3:14:40 | |
fallen by 33% and 34% in the
branches and in both branches the | 3:14:40 | 3:14:43 | |
number of customers has fallen to
between 60 and a hundred each week | 3:14:43 | 3:14:50 | |
but customers who use the branches
always say they are busy and so the | 3:14:50 | 3:14:55 | |
reality seems to be different from
how the customer sees it to the | 3:14:55 | 3:15:01 | |
bank. With Santander, they say 91%
of customers use other means of | 3:15:01 | 3:15:08 | |
banking besides walking into the
local branch and 45% use other | 3:15:08 | 3:15:14 | |
branches and 45% use online banking
and their mobiles. Barclays in | 3:15:14 | 3:15:18 | |
Sedgefield village, I used to live
near their and I could remember | 3:15:18 | 3:15:24 | |
they're always been a Barclays Bank
in Sedgefield. There had been one in | 3:15:24 | 3:15:30 | |
Sedgefield in that same building for
nearly a hundred years. But now they | 3:15:30 | 3:15:35 | |
say 74% of their customers use other
forms of banking and 5000 customers, | 3:15:35 | 3:15:42 | |
22% use the branches gruesomely for
their banking, and Barclays have | 3:15:42 | 3:15:49 | |
identified 250 people who had they
have considered vulnerable and they | 3:15:49 | 3:15:53 | |
said they are proactively contacting
them to assist with their future | 3:15:53 | 3:15:55 | |
banking needs. The number
transactions at the branch has | 3:15:55 | 3:16:00 | |
fallen by 17% and in the region it
has gone down by 12%. I believe | 3:16:00 | 3:16:05 | |
banks like Barclays and NatWest and
others who are closing branches | 3:16:05 | 3:16:11 | |
should report how many of those
vulnerable customers they have been | 3:16:11 | 3:16:14 | |
able to retain or have gone to other
banking mechanisms and systems, so | 3:16:14 | 3:16:21 | |
that they haven't ended up
financially excluded. So we can take | 3:16:21 | 3:16:26 | |
a snapshot of how me people are
becoming financially excluded | 3:16:26 | 3:16:29 | |
because of the closures. I will give
way. Thank you. Would he agree with | 3:16:29 | 3:16:39 | |
me that the number of closures right
across the UK, and some very often | 3:16:39 | 3:16:46 | |
elderly constituents, those who are
disabled, they are badly affected, | 3:16:46 | 3:16:50 | |
and soon there will be no banks and
we will be resorting to putting | 3:16:50 | 3:16:58 | |
money under the bed as we did my
grandmother's day, the humanity has | 3:16:58 | 3:17:06 | |
gone out of banking. Yes, you make a
good point, there does have to be a | 3:17:06 | 3:17:12 | |
social conscience in banking and he
doesn't have to be just -- and it | 3:17:12 | 3:17:18 | |
doesn't just have to be sorted out
by the public sector, it has got to | 3:17:18 | 3:17:23 | |
be sorted out by the private sector,
as well. There is a growing trend to | 3:17:23 | 3:17:26 | |
do banking by mobile phone and
online, and we can't deny that, and | 3:17:26 | 3:17:33 | |
Barclays have pointed out that on
average their customers use mobile | 3:17:33 | 3:17:36 | |
banking more than 28 times a month
and visit a branch less than twice a | 3:17:36 | 3:17:41 | |
month and the bank carries a 12
digital transactions are second and | 3:17:41 | 3:17:46 | |
says 24 branches are using video
banking, as well, so this phenomenon | 3:17:46 | 3:17:56 | |
is happening across mainland Europe,
as well. According to data from the | 3:17:56 | 3:18:00 | |
House of Commons library by the end
of 2016 the number of bank branches | 3:18:00 | 3:18:04 | |
in Germany have fallen by 32,000, a
reduction of nearly 6%, and in | 3:18:04 | 3:18:11 | |
France where there had been robust
opposition to bank closures, but | 3:18:11 | 3:18:21 | |
they have still announced the
closure of 26% of their bank | 3:18:21 | 3:18:27 | |
network, that is society general,
but the French bank network is still | 3:18:27 | 3:18:35 | |
extensive with six branches per
10,000 head of population which is | 3:18:35 | 3:18:39 | |
the highest figure in the EU. Spain,
since 2012, has closed 10,000 | 3:18:39 | 3:18:46 | |
branches between 2012 and 2016, so
banking is changing driven by | 3:18:46 | 3:18:51 | |
technology which is convenient to
the vast majority of customers. I | 3:18:51 | 3:18:54 | |
would like to address two areas of
concern, what more can the | 3:18:54 | 3:19:02 | |
government do and what work will
they undertake with the financial | 3:19:02 | 3:19:06 | |
sector to encourage banks to look
after their vulnerable customers so | 3:19:06 | 3:19:09 | |
they are not left behind. There is a
wider question, real areas like | 3:19:09 | 3:19:15 | |
County Durham are seeing the
destruction of rural bus services | 3:19:15 | 3:19:18 | |
and there are issues around
broadband provision and customers | 3:19:18 | 3:19:23 | |
being able to access the internet
and therefore online banking in the | 3:19:23 | 3:19:27 | |
first place. The closure of bank
branches highlights a key problem | 3:19:27 | 3:19:32 | |
that is now facing our town centres
and the future of a town centre in | 3:19:32 | 3:19:41 | |
my constituency has been
controversial for many years. The | 3:19:41 | 3:19:45 | |
owner of the town centre have
invested in the centre, but the | 3:19:45 | 3:19:49 | |
closure of two bank branches will
add to the number of already vacant | 3:19:49 | 3:19:52 | |
shops. This isn't a story reserved
for my constituency but is town | 3:19:52 | 3:19:59 | |
centres throughout the country and I
would suggest town centres need to | 3:19:59 | 3:20:02 | |
be more leisure focus with more bars
and restaurants and coffee shops. | 3:20:02 | 3:20:08 | |
Where people are more likely to shop
online, of course. Many retailers | 3:20:08 | 3:20:16 | |
are cutting jobs and issuing profit
warnings and I would make this | 3:20:16 | 3:20:21 | |
request to the banking sector, you
can change or off on the high stick | 3:20:21 | 3:20:26 | |
at how can you make a physical bank
present more affordable and | 3:20:26 | 3:20:31 | |
accessible -- you can change your
offer on the high street. You could | 3:20:31 | 3:20:38 | |
have a bank branch within a cafe,
for example. The closures of banks | 3:20:38 | 3:20:42 | |
does not happen in isolation and
they affect vulnerable people and | 3:20:42 | 3:20:47 | |
the town centres and communities and
our ways of life and what the banks | 3:20:47 | 3:20:53 | |
have got to remember, although there
is a trend of new technology, there | 3:20:53 | 3:20:59 | |
are people who could be left behind,
and there is a life off-line as well | 3:20:59 | 3:21:03 | |
as online. I ask that they think
creatively because they also have a | 3:21:03 | 3:21:10 | |
social obligation to their customers
and not just to their bottom line. | 3:21:10 | 3:21:17 | |
We have seen a debate this afternoon
of extreme unity between parties and | 3:21:17 | 3:21:22 | |
regions and countries and it is fair
to say that every MP in this house | 3:21:22 | 3:21:27 | |
is concerned about the rapid closure
of the banking network and I pay | 3:21:27 | 3:21:34 | |
salute to the lady from
Stoke-on-Trent North, because it | 3:21:34 | 3:21:39 | |
really has, it feels like we are
seeing rapid change in high street | 3:21:39 | 3:21:42 | |
banking at a rate that I'd never
seen before. The reason for that is | 3:21:42 | 3:21:48 | |
probably us, the consumer, we have
gone down the route that the banks | 3:21:48 | 3:21:53 | |
have encouraged, to go up the
contact list route, to use mobile | 3:21:53 | 3:21:58 | |
banking and internet banking and to
make our transactions not by check | 3:21:58 | 3:22:01 | |
any more, and first or you have got
to find your cheque-book which you | 3:22:01 | 3:22:07 | |
can't find in the new have to find
an and then a stamp. -- first of | 3:22:07 | 3:22:11 | |
all. We have all fallen probably
rightly to the ease and speed of | 3:22:11 | 3:22:17 | |
online banking and as the lady from
Chichester said very clearly, the | 3:22:17 | 3:22:24 | |
volume of cash transactions in
society is now below 50%, but even | 3:22:24 | 3:22:31 | |
though we have this advance of the
cashless society and I'm sure is an | 3:22:31 | 3:22:34 | |
advance that is warmly welcomed by
the Treasury so that most | 3:22:34 | 3:22:39 | |
transactions can be appropriately
taxed, it is going to be a very long | 3:22:39 | 3:22:44 | |
while, a matter of decades yet,
until cash is completely out of the | 3:22:44 | 3:22:49 | |
system. There are a number of cash
businesses and every constituency | 3:22:49 | 3:22:54 | |
would have them, and my fears are
that when banking facilities are | 3:22:54 | 3:23:00 | |
further and further away, the volume
and amount of cash might be to be | 3:23:00 | 3:23:06 | |
held by these businesses and by the
owners of these businesses in their | 3:23:06 | 3:23:09 | |
homes and perhaps in safes is going
to be a bigger and bigger amount and | 3:23:09 | 3:23:15 | |
with that there are security risks,
security risks for the staff that | 3:23:15 | 3:23:19 | |
are responsible for taking that cash
to an ever-increasing further away | 3:23:19 | 3:23:24 | |
bank. Of course. One of the issues
that has been raised with my | 3:23:24 | 3:23:33 | |
constituents is community groups to
fund raised a big festivals, one day | 3:23:33 | 3:23:38 | |
they generate cash and unlike
businesses who might be able to | 3:23:38 | 3:23:41 | |
mitigate against some of these
issues, for volunteers, never having | 3:23:41 | 3:23:46 | |
done before, this is a huge issue
and the post office will only take | 3:23:46 | 3:23:51 | |
cash to buzzards of £2000 so it
makes it even harder for them. -- | 3:23:51 | 3:23:55 | |
only take cash deposits. You make a
perfect point, and the member for | 3:23:55 | 3:24:04 | |
South Downs made that point very
clearly, charities, when you have | 3:24:04 | 3:24:09 | |
grand County fairs you might have
temporary trade that will not have | 3:24:09 | 3:24:14 | |
the contact list facilities and it
will be a very cash -based business, | 3:24:14 | 3:24:20 | |
but also there are clubs and
societies who rely on cash and | 3:24:20 | 3:24:24 | |
cheques for the small transactions
between themselves | 3:24:24 | 3:24:30 | |
and it wasn't that long ago that if
I recall, an advert that said we are | 3:24:32 | 3:24:41 | |
open all the time, we are keeping
our branches, and it said we have | 3:24:41 | 3:24:47 | |
made our bank into a new trendy wine
bar, nicely many of these across the | 3:24:47 | 3:24:55 | |
country. By first bank account was
in Lloyds 32 years ago and that | 3:24:55 | 3:25:00 | |
branch had been there 50 years and
is now a quite nice Cypriot | 3:25:00 | 3:25:07 | |
restaurant -- my first bank account.
But it highlights the fact that the | 3:25:07 | 3:25:12 | |
network is disappearing. In
Broadstairs in the last year alone | 3:25:12 | 3:25:16 | |
we have lost NatWest, and Lloyds. As
the lady said before, I generated a | 3:25:16 | 3:25:26 | |
petition and very kindly the
regional director from NatWest came | 3:25:26 | 3:25:33 | |
to my offices and I delivered the
petition and I received the ball was | 3:25:33 | 3:25:38 | |
that we are consulting, but of
course the app, was determined | 3:25:38 | 3:25:42 | |
sometime before the petition was
even thought that -- I received the | 3:25:42 | 3:25:46 | |
warm words that we are consulting | 3:25:46 | 3:25:49 | |
even thought that -- I received the
warm words that we are consulting. | 3:25:49 | 3:25:52 | |
In Sandwich, in the last 18 months
and we have lost HSBC and Lloyds and | 3:25:52 | 3:25:56 | |
NatWest. And in those towns,
Broadstairs and Sandwich, we are | 3:25:56 | 3:26:01 | |
left with just nationwide. I pay a
particular salute them to staying to | 3:26:01 | 3:26:07 | |
some of their roots of services to
the community and they have | 3:26:07 | 3:26:12 | |
maintained their branch network. | 3:26:12 | 3:26:24 | |
I don't know what members
experiences are but whenever I | 3:26:24 | 3:26:28 | |
perceive that cheque. Our heart
sinks when they get one in the post | 3:26:28 | 3:26:34 | |
because we have to wonder to do
something with it and accuse seem as | 3:26:34 | 3:26:37 | |
long as it ever were. The post
office network is fantastic but it's | 3:26:37 | 3:26:43 | |
not always there and available. | 3:26:43 | 3:26:54 | |
3500 people live in Thanet and we
have had the post office closed. | 3:26:56 | 3:27:08 | |
Canterbury is 60 miles away and
Ramsgate is eight miles away. Why | 3:27:08 | 3:27:17 | |
don't we get onto mobile apps and
the Internet? That's all very well. | 3:27:17 | 3:27:22 | |
I do not want the elderly to be
forced into having to accept that | 3:27:22 | 3:27:27 | |
type of banking. Those who have
difficulties but the managing | 3:27:27 | 3:27:34 | |
independent living, they need help
with those type of banking | 3:27:34 | 3:27:36 | |
facilities. Now I think about my
father I don't want them to go on to | 3:27:36 | 3:27:47 | |
banking under any circumstances. It
is not uncommon that he will say to | 3:27:47 | 3:27:51 | |
me. I have an e-mail from Santander
and I don't even bank with them. | 3:27:51 | 3:28:03 | |
Those younger than me will be very
Internet savvy and will recognise | 3:28:03 | 3:28:07 | |
the banking scam e-mail but for many
of the elderly, they will not | 3:28:07 | 3:28:12 | |
recognise it and may respond to it
and give up their Internet banking | 3:28:12 | 3:28:15 | |
details. I don't want to carry on
for too long. It's up to the | 3:28:15 | 3:28:29 | |
government to do something. The
government should do this and that | 3:28:29 | 3:28:36 | |
and we see this on the order paper
on a daily basis. This is not for | 3:28:36 | 3:28:42 | |
the government to do things. It can
help to inform the debate but what | 3:28:42 | 3:28:47 | |
this debate this afternoon by
members from all parties very loudly | 3:28:47 | 3:28:53 | |
and clearly to the banks is stop
what you are doing and start | 3:28:53 | 3:28:56 | |
thinking about the communities. Much
has been said about the opportunity | 3:28:56 | 3:29:03 | |
for joint banking facilities.
Premises cost a lot of money, has to | 3:29:03 | 3:29:13 | |
be heated, business rates, staff,
security they could be five major | 3:29:13 | 3:29:20 | |
banks coming | 3:29:20 | 3:29:30 | |
together banks, please extend your
availability of your mobile caravan | 3:29:35 | 3:29:43 | |
time, a regular banking facilities
that can go to our smaller | 3:29:43 | 3:29:48 | |
communities. I am still a bit of a
cash person, I still even go in the | 3:29:48 | 3:29:57 | |
bank and sign a cheque for cash. It
wasn't many years ago that the | 3:29:57 | 3:30:04 | |
cashier would say use the cash
point, I do use cashpoint spot that | 3:30:04 | 3:30:08 | |
I am passing bank I will often cash
a cheque. If I use a cashback, I'd | 3:30:08 | 3:30:16 | |
say do not put yourself out of a job
because of more and more of us do | 3:30:16 | 3:30:20 | |
that, you are signing the death
knell of this branch. We see it in | 3:30:20 | 3:30:29 | |
the cafes in this house. I am amazed
that some of the younger people who | 3:30:29 | 3:30:33 | |
work here, they will be using
contactless for a summer jam cup of | 3:30:33 | 3:30:40 | |
coffee for £1.90. I'm not like that
but I can see that my own level of | 3:30:40 | 3:30:45 | |
the using a card is diminishing as
years go by. My level at the moment | 3:30:45 | 3:30:50 | |
is about £20 and over, I will use
the card but I am getting | 3:30:50 | 3:30:55 | |
increasingly tempted under that £20
limit to go for the contactless | 3:30:55 | 3:30:58 | |
card. I would recommend that
members, we encourage our | 3:30:58 | 3:31:06 | |
constituents to get into your banks
that still exist and use those | 3:31:06 | 3:31:09 | |
counter facilities. The banks will
then not be able to say, we are | 3:31:09 | 3:31:15 | |
closing because we are not getting
used enough. The clarion call from | 3:31:15 | 3:31:22 | |
this chamber today, cross-party, has
got to be, banks, please stop, let's | 3:31:22 | 3:31:25 | |
think again, let's work together,
joint facilities, more mobile | 3:31:25 | 3:31:32 | |
caravan type banking facilities
going to our communities and we can | 3:31:32 | 3:31:35 | |
all do our bit by getting into the
banks and actually using them. It's | 3:31:35 | 3:31:41 | |
a pleasure to follow the honourable
gentleman I pay special attention | 3:31:41 | 3:31:49 | |
credit to the introducer of the
debate, the honourable lady for | 3:31:49 | 3:31:54 | |
Stoke-on-Trent North and giving us
an opportunity to make some | 3:31:54 | 3:32:03 | |
contributions. I have had five banks
close in my area, the latest one | 3:32:03 | 3:32:07 | |
hasn't closed yet but is going to
close and I want to make some | 3:32:07 | 3:32:11 | |
comment about that. Also for
Northern Ireland as well and said | 3:32:11 | 3:32:18 | |
clearly the bank closures aren't
just in one of the United Kingdom, | 3:32:18 | 3:32:22 | |
they are in all of the regions and
others have said that than others | 3:32:22 | 3:32:26 | |
will follow will say that. I
represent the most beautiful | 3:32:26 | 3:32:33 | |
constituency to the best of my
ability. . Everybody knows that | 3:32:33 | 3:32:40 | |
nobody doubts that. | 3:32:40 | 3:32:43 | |
I'm blessed to wake up with a
beautiful view. I'm blessed to have | 3:32:46 | 3:32:56 | |
50 mile journey that takes me to my
constituency office. | 3:32:56 | 3:33:08 | |
We have rural and town centres. The
bank of Ireland and the first trust | 3:33:09 | 3:33:18 | |
bank closed on either side of the
peninsula and we have had banks | 3:33:18 | 3:33:25 | |
close but closed years ago. Trying
to buy the -- try to fight the | 3:33:25 | 3:33:35 | |
closure. We are meeting with the
Ulster bank officials and, with | 3:33:35 | 3:33:39 | |
ideas on how we are going to... We
can't stop the closure but some | 3:33:39 | 3:33:45 | |
ideas as to how we can make it
easier. It seems to be the latest | 3:33:45 | 3:33:51 | |
banking sad, close the smaller
branches, centralise everything, it | 3:33:51 | 3:33:55 | |
doesn't matter how much it affects
customers it is how much they can | 3:33:55 | 3:34:02 | |
make for shareholders. I'm
highlighting the Ulster bank, I want | 3:34:02 | 3:34:06 | |
to make it clear, when it with the
officials for the Ulster bank about | 3:34:06 | 3:34:11 | |
an open and frank discussion about
the proposed closure, the bank said | 3:34:11 | 3:34:16 | |
it was closing and nothing would
change the decision, which was | 3:34:16 | 3:34:19 | |
disappointing because your purpose
of having meetings is to try to | 3:34:19 | 3:34:21 | |
change opinion ever mindful there
are others at a different level are | 3:34:21 | 3:34:27 | |
making decisions. To outline the
need for the branch to remain for | 3:34:27 | 3:34:31 | |
the needs of the rural community and
those who are really isolated as | 3:34:31 | 3:34:34 | |
well as a need. Farmers, fishermen,
they banked at the Ulster bank for | 3:34:34 | 3:34:43 | |
many years and businessmen in the
villages that stroll down to the | 3:34:43 | 3:34:47 | |
bank and an elderly population who
looked upon the bank is more than | 3:34:47 | 3:34:50 | |
just a bank because they had a
relationship with the people in the | 3:34:50 | 3:34:53 | |
bank. Those were lost and we have a
credit union that started up and | 3:34:53 | 3:34:58 | |
falsely it can fill some of that
vacancy but cannot fill itself of | 3:34:58 | 3:35:02 | |
the nature of what they do. A real
concern that these decisions have | 3:35:02 | 3:35:06 | |
been made by big banks look only at
the prophet of the bank and not the | 3:35:06 | 3:35:10 | |
profit across the province, so when
it comes to making decisions, rural | 3:35:10 | 3:35:15 | |
proofing has to be part of the
decision-making process and | 3:35:15 | 3:35:20 | |
hopefully when a minister responds
you can give us some idea in his | 3:35:20 | 3:35:24 | |
discussions with the bank, has he
been able to raise the issue of | 3:35:24 | 3:35:29 | |
rural proofing and how it affects
the rural community? The customers | 3:35:29 | 3:35:32 | |
who pay the same charges should
receive a service similar to the | 3:35:32 | 3:35:37 | |
customers in Belfast and this is not
the case. Once again, they are | 3:35:37 | 3:35:43 | |
isolated and a whiff of face-to-face
interaction which is an essential | 3:35:43 | 3:35:46 | |
part of the banking trade. We all
remember our introductions to | 3:35:46 | 3:35:52 | |
banking and the first loan at it
from the bank, I will not go into | 3:35:52 | 3:35:55 | |
detail here, the bank manager was
most accommodating. It was done very | 3:35:55 | 3:36:06 | |
quickly and his knowledge of knowing
you and knowledge of your parents, | 3:36:06 | 3:36:11 | |
probably, and solid banking over 40
years previous to that. I put | 3:36:11 | 3:36:14 | |
forward the case for the fishermen
and farmers, what will be offered to | 3:36:14 | 3:36:21 | |
help these valued customers. I'm
disappointed and annoyed, I was | 3:36:21 | 3:36:24 | |
somewhat grateful that is opposed to
walking away which many banks have | 3:36:24 | 3:36:31 | |
done, and had the too bad, so sad
attitude, this bank has committed to | 3:36:31 | 3:36:35 | |
leave behind service which will take
the form of one day we'd banking | 3:36:35 | 3:36:41 | |
caravan. That is an option that
could be used. We have secured a | 3:36:41 | 3:36:46 | |
bank once a week in the village,
which means the elderly can get down | 3:36:46 | 3:36:52 | |
and those can have an interaction.
They took the form of a community | 3:36:52 | 3:37:03 | |
bank. Not just the more well back, a
community bank they had the | 3:37:03 | 3:37:07 | |
interaction, working from an office
based business to help with | 3:37:07 | 3:37:10 | |
one-on-one issues. With the mobile
bank and with the community bank, | 3:37:10 | 3:37:15 | |
two things. They have been allowing
people to bank in the post office | 3:37:15 | 3:37:23 | |
for basic withdrawals unbalanced
checks. In the six months to the | 3:37:23 | 3:37:28 | |
closure of the bank there was a
dedicated staff member who help | 3:37:28 | 3:37:31 | |
people to better understand and use
the online banking system and damage | 3:37:31 | 3:37:36 | |
listed among the honourable
gentleman said because it happens | 3:37:36 | 3:37:38 | |
that there are ... The community
officer is available to fishermen | 3:37:38 | 3:37:45 | |
and farmers over a period of time to
make sure there is confidence in the | 3:37:45 | 3:37:49 | |
system. When there is confidence in
the new system, we have watched | 3:37:49 | 3:37:55 | |
people going into bank and explain
how the online service works. As | 3:37:55 | 3:38:00 | |
soon as I walked into that bank,
they were never going to use it. | 3:38:00 | 3:38:04 | |
That may soon as they walked into
the bank. They didn't know what the | 3:38:04 | 3:38:07 | |
purpose of it was and were confused
and there has to be more time spent | 3:38:07 | 3:38:11 | |
in relation to that. This is not the
outcome I hoped for but it is a | 3:38:11 | 3:38:16 | |
clear determination that customers
will not be abandoned and I thank | 3:38:16 | 3:38:20 | |
the bank for the long-term promises.
They made the same commitment to the | 3:38:20 | 3:38:25 | |
village on the other side of my
constituency and too many banks are | 3:38:25 | 3:38:28 | |
pulling, leaving customers who are
not confident with online banking | 3:38:28 | 3:38:33 | |
having no option other than to bank
in this way and that's the problem I | 3:38:33 | 3:38:36 | |
have, it doesn't suit everybody and
it needs to be some alternative for | 3:38:36 | 3:38:40 | |
many people. The issue I have with
this is that I've seen on the | 3:38:40 | 3:38:45 | |
customer services represents the
customer services representative | 3:38:45 | 3:38:46 | |
toxic customers, it is clear to me
that they are unhappy and unsure how | 3:38:46 | 3:38:50 | |
it works. The paper Trail of
banking, I like that and I can | 3:38:50 | 3:38:55 | |
remember, as others have said, when
my mother opened my bank account at | 3:38:55 | 3:39:05 | |
16 and give me £20 starter, which a
fortune in those days. In five or | 3:39:05 | 3:39:11 | |
six years I have £46 and I could I
and many car for £45. That will give | 3:39:11 | 3:39:16 | |
you an idea of how back it goes. We
thought we were rich and I was rich | 3:39:16 | 3:39:21 | |
because I got my first car and I had
been with the bank ever since. I | 3:39:21 | 3:39:25 | |
don't bank online and I couldn't
with my computer skills and a double | 3:39:25 | 3:39:30 | |
leave the bank should be enforcing
those on those who are not Internet | 3:39:30 | 3:39:33 | |
savvy and leave themselves open to
being victims of fraud as they don't | 3:39:33 | 3:39:37 | |
know how to protect themselves and
that's another thing we must | 3:39:37 | 3:39:39 | |
remember. Others have said it but
when somebody phoned up and says I'm | 3:39:39 | 3:39:44 | |
from whatever bank, can begin your
details, there are so many scams | 3:39:44 | 3:39:47 | |
going on and the elderly feel
vulnerable. We need to protect them. | 3:39:47 | 3:39:52 | |
It is something I have concerns
about, especially in my | 3:39:52 | 3:39:55 | |
constituency. We do not let children
Internet bank as the protect their | 3:39:55 | 3:40:03 | |
interests but the more computer
savvy than a 65-year-old fishermen | 3:40:03 | 3:40:08 | |
who we tried to enforce onto this
way. I'm coming to the end, I just | 3:40:08 | 3:40:13 | |
realised that the clock is marching
on. I recently spoke on the RBS | 3:40:13 | 3:40:20 | |
debate and look forward to the
response. I will make it clear, this | 3:40:20 | 3:40:24 | |
is not a witchhunt against the banks
but I have been impressed with the | 3:40:24 | 3:40:31 | |
Africa when they pull out of the
area and they have done that in some | 3:40:31 | 3:40:34 | |
of the areas in my constituency,
however a time permitted, I call for | 3:40:34 | 3:40:43 | |
a return to the old-fashioned cause
of truth, honesty, fairness, common | 3:40:43 | 3:40:48 | |
decency, integrity and transparency
in the whole of the banking | 3:40:48 | 3:40:51 | |
industry. A return for the bank
manager, who has an intimate | 3:40:51 | 3:40:55 | |
knowledge of his branch and the
people in it because he has not have | 3:40:55 | 3:40:58 | |
a glance of an online profile, stop
pulling managers and get to know the | 3:40:58 | 3:41:02 | |
people whose money you take. | 3:41:02 | 3:41:09 | |
Euro I call the compensation for
small businesses and resolution for | 3:41:09 | 3:41:15 | |
those... I understand banking is a
business and must be run as such but | 3:41:15 | 3:41:20 | |
when they put their faith into our
hands in this house, this is more | 3:41:20 | 3:41:24 | |
than simply a hand-out, this is for
something for us to look and see | 3:41:24 | 3:41:29 | |
what is happening and we must take
our duty very seriously. It is a | 3:41:29 | 3:41:35 | |
pandemic of rural bank closures and
it must be addressed and we have a | 3:41:35 | 3:41:38 | |
duty in this place to address it and
I intend to do so. And I know many | 3:41:38 | 3:41:43 | |
members wish to do the same. Thank
you. Paul Sweeney. Thank you for the | 3:41:43 | 3:41:51 | |
opportunity to contribute. It is
always a pleasure to follow the | 3:41:51 | 3:42:07 | |
member. I congratulate my friend,
the member for Stoke-on-Trent, for | 3:42:07 | 3:42:14 | |
securing this debate and speaking so
passionately and knowledgeably about | 3:42:14 | 3:42:18 | |
the issue, and also the member for
Hazel Grove fall so securing the | 3:42:18 | 3:42:23 | |
debate. -- for also securing. I have
grown up around community banks | 3:42:23 | 3:42:32 | |
given my mother's work in retail
banking her whole career and I | 3:42:32 | 3:42:35 | |
remember as a child being taken into
the vaults of the bank in the Bank | 3:42:35 | 3:42:39 | |
of Scotland in Charing Cross where
my mum worked and opening my scroll | 3:42:39 | 3:42:45 | |
saving -- squirrel Saver account. I
speak with great affection but I | 3:42:45 | 3:42:51 | |
also know how important community
banks are, especially to elderly | 3:42:51 | 3:42:56 | |
customers and vulnerable people
because they developed a close and | 3:42:56 | 3:43:01 | |
affectionate relationship with the
staff who know them well and know | 3:43:01 | 3:43:03 | |
what their needs are and can
accommodate them. It is a personal | 3:43:03 | 3:43:07 | |
interaction and builds a
affectionate relationship and a | 3:43:07 | 3:43:11 | |
long-term relationship with banks
which is usually the Bible for banks | 3:43:11 | 3:43:16 | |
-- hugely valuable for banks. It is
a shame to think that that bank I | 3:43:16 | 3:43:25 | |
mentioned is now a Starbucks, and so
this is something we really need to | 3:43:25 | 3:43:31 | |
challenge because this is
approaching a cliff edge in our | 3:43:31 | 3:43:33 | |
communities. My concern is that the
programme of bank closures in recent | 3:43:33 | 3:43:39 | |
years, it appears to target the
poorest communities in recent years, | 3:43:39 | 3:43:44 | |
well over a thousand branches
closing in the last two years alone, | 3:43:44 | 3:43:47 | |
and my constituency of Glasgow North
East where an employment is twice | 3:43:47 | 3:43:52 | |
the national average. --
unemployment. We have seen RBS | 3:43:52 | 3:43:59 | |
closures. And we have also seen the
closure of RBS branches in other | 3:43:59 | 3:44:09 | |
areas, and that is followed by the
closure of the Clydesdale bank. I | 3:44:09 | 3:44:14 | |
went down to see the Clydesdale bank
branch next to the shopping centre. | 3:44:14 | 3:44:27 | |
... It is a rapacious organisation
which basically mis-sells consumer | 3:44:27 | 3:44:33 | |
goods, outrageous rate of interest
and this is something we should | 3:44:33 | 3:44:37 | |
challenge. As more people are forced
out of commercial banking, into | 3:44:37 | 3:44:43 | |
these rapacious lenders, this has
got to be challenged. Thank you for | 3:44:43 | 3:44:50 | |
giving way, he's talking about the
poorest communities being left by | 3:44:50 | 3:44:53 | |
the changes in banking and he is
absolutely right. These are some of | 3:44:53 | 3:45:02 | |
the wealthiest communities in
Scotland, three of the banks that | 3:45:02 | 3:45:04 | |
have been saved recently I in the
Scottish Secretary of State's | 3:45:04 | 3:45:08 | |
constituency and the government is
the majority shareholder in RBS and | 3:45:08 | 3:45:14 | |
so surely there is a role for them
to step in and have a look at these | 3:45:14 | 3:45:18 | |
deprived communities. It is correct,
is one thing we don't see but I have | 3:45:18 | 3:45:23 | |
tried to piece together the
evidence, it is not nationally | 3:45:23 | 3:45:26 | |
recorded, but what is the density of
banking operations amongst the | 3:45:26 | 3:45:30 | |
poorest communities? The data is not
gathered on this issue. I know that | 3:45:30 | 3:45:35 | |
in parts of Springburn they fall
into multiple deprivation and that | 3:45:35 | 3:45:42 | |
is the bottom for unemployment and
health and housing indicators and | 3:45:42 | 3:45:47 | |
that seems to be the case with a lot
of branch closures. Maybe the | 3:45:47 | 3:45:52 | |
government could oblige banks to
provide the data as a matter of | 3:45:52 | 3:45:55 | |
national standards. Also, looking at
the contrast with the wealthiest | 3:45:55 | 3:45:59 | |
parts of the city, every major bank
is represented in that area, the | 3:45:59 | 3:46:06 | |
wealthiest postcode in Glasgow,
seven interesting contrast, banks | 3:46:06 | 3:46:10 | |
are withdrawing from the poorest
communities -- so an interesting | 3:46:10 | 3:46:16 | |
contrast. It paints a dismal
picture. It has been argued that | 3:46:16 | 3:46:22 | |
this is the reality of technological
change, more people using online | 3:46:22 | 3:46:27 | |
services but 2 million Scots do not
use online banking and they are | 3:46:27 | 3:46:31 | |
disproportionately older people who
are not familiar with the technology | 3:46:31 | 3:46:36 | |
and so we have got to look at the
rate of transition which is | 3:46:36 | 3:46:39 | |
practical in order to prevent the
harm to people in society. Over a | 3:46:39 | 3:46:45 | |
third of people using citizens
advice Scotland services have no or | 3:46:45 | 3:46:50 | |
limited internet access so think
about how they will access finance | 3:46:50 | 3:46:55 | |
and banking if their local
communities are affected by these | 3:46:55 | 3:47:00 | |
decisions by the major banks, and it
is not just given by technological | 3:47:00 | 3:47:04 | |
change. Of course the banking sector
is a huge driver of innovation and | 3:47:04 | 3:47:11 | |
we have seen huge ten logical
changes. -- technological. In 2016 | 3:47:11 | 3:47:21 | |
it was a Scot James Goodfellow who
was inducted into the Scottish | 3:47:21 | 3:47:25 | |
engineering Hall of Fame for his
work in patenting the first ATM, and | 3:47:25 | 3:47:33 | |
that was in response to the major
banks to closing on Saturday | 3:47:33 | 3:47:36 | |
mornings and so they were trying to
find a means of using technology to | 3:47:36 | 3:47:43 | |
compensate for the desire banks to
close on Saturday mornings and that | 3:47:43 | 3:47:46 | |
is why the ATM came into being and
that is why it is so ubiquitous. We | 3:47:46 | 3:47:49 | |
have got to harness technology for
the public good and not just using | 3:47:49 | 3:47:55 | |
it as an excuse to ridiculously
disinvest from our communities at an | 3:47:55 | 3:47:58 | |
inappropriate rate. It is about
adopting the technological change | 3:47:58 | 3:48:03 | |
for the public good. I think when I
mentioned that the closures are not | 3:48:03 | 3:48:11 | |
just given by technological change,
we have got to look at the reality | 3:48:11 | 3:48:14 | |
of the banking sector, five banks
hold 85% of all current accounts in | 3:48:14 | 3:48:20 | |
the UK and if you combine each of
the commercial banking in this | 3:48:20 | 3:48:24 | |
country where you combine personal
banking services with commercial, | 3:48:24 | 3:48:28 | |
that is symptomatic of a difficult
sector to manage which has tightened | 3:48:28 | 3:48:36 | |
our national prosperity in the last
decade. -- threatened. It is one of | 3:48:36 | 3:48:42 | |
the most centralised banking sectors
in the world and as Adam Smith | 3:48:42 | 3:48:45 | |
mentioned it is recognised, the
profit seeking behaviour is contrary | 3:48:45 | 3:48:50 | |
to the common good and the creation
of national wealth and that is what | 3:48:50 | 3:48:54 | |
we should remember when we consider
this issue. In Germany there are | 3:48:54 | 3:48:59 | |
over 400 local savings banks and a
thousand cooperative run banks and | 3:48:59 | 3:49:03 | |
300 private commercial banks in
contrast to the five huge banks in | 3:49:03 | 3:49:09 | |
this country. They are providing
patient finance to consumers and | 3:49:09 | 3:49:16 | |
industry, and look back at the
innovation I mentioned regarding the | 3:49:16 | 3:49:20 | |
ATM, when James Goodfellow made his
speech after receiving that | 3:49:20 | 3:49:23 | |
induction to the engineering Hall of
Fame, he said it was a regret that | 3:49:23 | 3:49:28 | |
ATMs were invented in this country
but by not built and manufactured in | 3:49:28 | 3:49:33 | |
this country and we have not
benefited from the industrial | 3:49:33 | 3:49:37 | |
innovation in this country. This is
symptomatic of the banking sector, | 3:49:37 | 3:49:42 | |
we don't finance industrial growth
because we are seeking high risk and | 3:49:42 | 3:49:45 | |
high return profits in the city and
we are not looking at investing in | 3:49:45 | 3:49:49 | |
the real economy and that is the
contrast to the German banking | 3:49:49 | 3:49:51 | |
system. They have the largest
manufacturing sector in Europe and | 3:49:51 | 3:49:59 | |
the world, and they have a banking
system which looks at long-term | 3:49:59 | 3:50:06 | |
economic resilience. We see that in
the productivity where German | 3:50:06 | 3:50:14 | |
workers are producing in four days
what UK workers produce in five | 3:50:14 | 3:50:16 | |
days. We have got to grip this at
all levels and that is something we | 3:50:16 | 3:50:22 | |
need to address the that is why I'm
proud to stand here as one of the 39 | 3:50:22 | 3:50:27 | |
cooperative members of parliament,
the largest group in Parliament ever | 3:50:27 | 3:50:32 | |
and the third-largest party group in
this house, and they have long | 3:50:32 | 3:50:35 | |
recognised the structural problems
in society and that is why our party | 3:50:35 | 3:50:40 | |
propose turning RBS into a mutual
owned by its members and run in a | 3:50:40 | 3:50:43 | |
not profit way. We also want to
create a legislative mechanism to | 3:50:43 | 3:50:53 | |
support the development of credit
unions in the UK, perhaps based on | 3:50:53 | 3:50:57 | |
the American act of 1979. The key
innovation which that act brought in | 3:50:57 | 3:51:05 | |
in America under the Carter
administration was to combat his | 3:51:05 | 3:51:08 | |
collation and access to credit for
low and moderate income committees | 3:51:08 | 3:51:10 | |
will stop -- combat the lack of
access. That is where the United | 3:51:10 | 3:51:21 | |
States essentially put a red line,
where banks were basically | 3:51:21 | 3:51:28 | |
blacklisting people, and that is
happening in this country albeit on | 3:51:28 | 3:51:31 | |
a Opec basis. -- opaque. Legislating
using that community reinvestment | 3:51:31 | 3:51:41 | |
act, could be similarly inclined. It
would apply a rating to the banks | 3:51:41 | 3:51:48 | |
based on the density of their
operation in poorer areas and | 3:51:48 | 3:51:53 | |
includes investment credit unions
meaning the credit union sector is | 3:51:53 | 3:51:57 | |
worth but billions of dollars and
compete on an equal footing with | 3:51:57 | 3:52:02 | |
commercial banks got up looking at
Santander, £11 billion five-year | 3:52:02 | 3:52:08 | |
commitment to support community
benefits in the US, but that does | 3:52:08 | 3:52:12 | |
not extend its American community
reinvestment activity to the UK | 3:52:12 | 3:52:18 | |
because there is no regular tea
imperative to do so. -- regulatory. | 3:52:18 | 3:52:25 | |
So banks are being withdrawn from
our most vulnerable communities. It | 3:52:25 | 3:52:30 | |
is the duty of the government to not
capitulate to free-market dogma, but | 3:52:30 | 3:52:34 | |
to control the market in the public
interest. I'm delighted to | 3:52:34 | 3:52:40 | |
participate in this debate, although
I wish it were unnecessary, but I | 3:52:40 | 3:52:46 | |
wish to thank the member for
Stoke-on-Trent North for bringing | 3:52:46 | 3:52:48 | |
the debate forward and for her
rancid opening speech will stop -- | 3:52:48 | 3:52:54 | |
comprehensive opening speech was the
speeches have shown there are common | 3:52:54 | 3:52:59 | |
concerns across the UK by the
stampede of the banks out of our | 3:52:59 | 3:53:02 | |
communities and we are concerned
about that. Of course we have at the | 3:53:02 | 3:53:06 | |
announcement of yet more bank
closures by RBS with a further 62 | 3:53:06 | 3:53:13 | |
branches closed in Scotland,
although ten have been retrieved | 3:53:13 | 3:53:16 | |
after negotiations with the SNP
leadership. This does not go far | 3:53:16 | 3:53:20 | |
enough, it certainly doesn't... In a
moment. It's only doesn't do | 3:53:20 | 3:53:27 | |
anything for my constituency but I'm
not mean-spirited enough to not | 3:53:27 | 3:53:31 | |
recognise when progress is made. The
member for Berwickshire, I know he | 3:53:31 | 3:53:37 | |
would rather cut his head off and
give the SNP any credit for | 3:53:37 | 3:53:42 | |
anything, but I really do think that
on this case he should be a bit more | 3:53:42 | 3:53:47 | |
gracious because although he said
that this was as a result of | 3:53:47 | 3:53:53 | |
concerns expressed by all parties,
the fact is that around the | 3:53:53 | 3:53:58 | |
negotiating table was the SNP and
RBS and nobody else. So I do think | 3:53:58 | 3:54:02 | |
that the member might put that in
his pipe and smoke it. LAUGHTER | 3:54:02 | 3:54:10 | |
I will not give way. You have put
the boot in and I have put the boot | 3:54:10 | 3:54:17 | |
back and we will leave it at that. I
would be disturbed if the fact that | 3:54:17 | 3:54:24 | |
UK Government despite being the
major shareholder in RBS has not | 3:54:24 | 3:54:29 | |
lifted a finger. He can chant from a
secondary position, given by his | 3:54:29 | 3:54:37 | |
hatred of the SNP, and his lack of
care for communities who have been | 3:54:37 | 3:54:41 | |
offered a reprieve, it really is
quite sad. It is concerning that | 3:54:41 | 3:54:47 | |
government despite being the major
shareholder in the RBS has not | 3:54:47 | 3:54:51 | |
lifted a single finger to encourage
or to force RBS to pause the closure | 3:54:51 | 3:54:58 | |
programme and carry out impact
assessments or consultations with | 3:54:58 | 3:55:02 | |
the communities affected. Order. The
honourable lady has said she's not | 3:55:02 | 3:55:12 | |
giving way. It is disappointing that
the UK Government on half of the | 3:55:12 | 3:55:17 | |
taxpayer has not lifted a single
finger to do anything to protect | 3:55:17 | 3:55:22 | |
communities affected by these bank
closures and whilst I'm disturbed | 3:55:22 | 3:55:27 | |
that UK Government was not consulted
about these closures as the major | 3:55:27 | 3:55:32 | |
shareholder, that is unfortunate and
raises questions. I'm pleased for | 3:55:32 | 3:55:38 | |
those communities whose banks have
been reprieved but it does nothing | 3:55:38 | 3:55:42 | |
for my own constituency who still
face the prospect of losing three | 3:55:42 | 3:55:50 | |
banks. Of course, closing the last
bank in town is something that this | 3:55:50 | 3:56:00 | |
bank has tried to disassociate
itself from, and it sounded good at | 3:56:00 | 3:56:03 | |
the time from the PR companies but
it hasn't bothered... No, I will not | 3:56:03 | 3:56:08 | |
give way. The member is being
extremely rude, driven not by | 3:56:08 | 3:56:14 | |
concern about banking communities
but by his hatred of the SNP, which | 3:56:14 | 3:56:18 | |
really is rather pathetic. | 3:56:18 | 3:56:23 | |
It sounded good to RBS when they
said that they would not close the | 3:56:23 | 3:56:29 | |
last bank in town but that has been
long abandoned. As a result, the | 3:56:29 | 3:56:34 | |
town in my constituency of around
16,000 people now faces the prospect | 3:56:34 | 3:56:41 | |
of losing its last bank and what we
have seen this week is that RBS is | 3:56:41 | 3:56:45 | |
not deaf to the uproar these
closures have given rise to. Their | 3:56:45 | 3:56:51 | |
public image lies in tatters but the
bank has opened the door and inch to | 3:56:51 | 3:56:57 | |
reprieve some branches and myself an
SNP activists who have been out | 3:56:57 | 3:57:02 | |
every weekend, Saturdays and Sundays
since after Christmas, collecting | 3:57:02 | 3:57:07 | |
Parliamentary petition signatures to
save our banks have collected | 3:57:07 | 3:57:12 | |
thousands of signatures, we now
propose to run at the door that has | 3:57:12 | 3:57:16 | |
been slightly opened and keep it
open wide to save our branches. We | 3:57:16 | 3:57:21 | |
will not be giving up in our quest
to save our banks. We've bailed out | 3:57:21 | 3:57:25 | |
the banks and it is now time they
lived up to their moral obligation | 3:57:25 | 3:57:31 | |
to our communities. In my own
constituency, if these closures go | 3:57:31 | 3:57:35 | |
ahead it will bring the number of
towns with no bank to six. And now, | 3:57:35 | 3:57:45 | |
shortly it seems RBS intent to add
how we need to do list and I don't | 3:57:45 | 3:57:51 | |
think any other constituency in the
UK has been so adversely, so cruelly | 3:57:51 | 3:57:56 | |
hit and the banks are stampeding out
of Ayrshire at a staggering rate. | 3:57:56 | 3:58:01 | |
People today have talked about post
offices picking up the slack, but | 3:58:01 | 3:58:05 | |
the range of services that banks
provide are not always available in | 3:58:05 | 3:58:10 | |
post offices and having a corner at
the back of a Spar supermarket is no | 3:58:10 | 3:58:15 | |
compensation for customers who will
get no prissy and not the same level | 3:58:15 | 3:58:18 | |
of services. It was only ten short
years ago when it was post offices | 3:58:18 | 3:58:24 | |
that were under attack and
stampeding out of our towns. I | 3:58:24 | 3:58:28 | |
cannot overstate the sense of anger,
the sense of betrayal felt by these | 3:58:28 | 3:58:36 | |
communities and similarly affected
communities across the UK. For a | 3:58:36 | 3:58:39 | |
bank which has been bowed out by the
taxpayer to secure its very survival | 3:58:39 | 3:58:44 | |
due to its own incompetence, a
Baghdad is still 73% owned by the | 3:58:44 | 3:58:49 | |
taxpayer is a bitter pill to swallow
and this pill is made all the more | 3:58:49 | 3:58:53 | |
bitter to swallow by the fact that
last year, this very bank paid £16 | 3:58:53 | 3:59:02 | |
million in bonuses. The culture of
excess bonuses lives on what the | 3:59:02 | 3:59:07 | |
customer and the taxpayer continue
to suffer. The UK Government retains | 3:59:07 | 3:59:11 | |
all legislative and regulated powers
in respect of financial services, so | 3:59:11 | 3:59:17 | |
the UK Government does indeed have
the authority to call a halt, a post | 3:59:17 | 3:59:23 | |
to this devastating round of
closures whilst banks stakeholders | 3:59:23 | 3:59:27 | |
and the UK and Scottish governments
consider how best to take account of | 3:59:27 | 3:59:31 | |
the obligation to banking customers
and our communities. Whatever the | 3:59:31 | 3:59:36 | |
banks may say, they do have an
obligation to our communities, a | 3:59:36 | 3:59:41 | |
service obligation, a financial
obligation and a moral obligation. | 3:59:41 | 3:59:45 | |
Let's be clear about what these bank
closures mean. They mean that the | 3:59:45 | 3:59:50 | |
affected communities no longer have
access to data the essential banking | 3:59:50 | 3:59:54 | |
services. It means my constituents
must undertake a round-trip of 18.8 | 3:59:54 | 4:00:01 | |
miles to access new so-called local
bank, many of them most of them I | 4:00:01 | 4:00:06 | |
would suggest we live on public
transport to do so. It means RBS | 4:00:06 | 4:00:12 | |
customers are being directed to the
next RBS which is a round trip or | 4:00:12 | 4:00:17 | |
12.8 miles away and Cal Winnie
customers are being on to take a | 4:00:17 | 4:00:22 | |
chip of 16.6 miles to visit their
new local branch and all of this is | 4:00:22 | 4:00:27 | |
before you get to the impact on
local businesses who are | 4:00:27 | 4:00:32 | |
increasingly finding themselves
without access tonight saves. If | 4:00:32 | 4:00:34 | |
they cannot bank their takings at
the end of the day, they must incur | 4:00:34 | 4:00:40 | |
an extra insurance charge for
keeping the cash overnight with all | 4:00:40 | 4:00:43 | |
the security applications that that
creates and these small businesses | 4:00:43 | 4:00:47 | |
are the backbone of our communities
and our local economies. They could | 4:00:47 | 4:00:52 | |
be a mistake, to leave a town with
their bag is financial and social | 4:00:52 | 4:00:56 | |
exclusion. I have been told by RBS
that the closures in my constituency | 4:00:56 | 4:01:03 | |
will be replaced by mobile banks.
That is not what constituents want. | 4:01:03 | 4:01:07 | |
These are not reliable and are not
disability compliant and Ari Poor | 4:01:07 | 4:01:11 | |
substitute for the presence of a
bank in our towns. We will continue | 4:01:11 | 4:01:16 | |
to fight these closures, we will
continue with a Parliamentary | 4:01:16 | 4:01:21 | |
petition signatures because RBS must
understand that the people of North | 4:01:21 | 4:01:24 | |
Ayrshire and Arran will not sit
quietly and take the poor treatment | 4:01:24 | 4:01:30 | |
that's been offered out to them and
I urge the Minister to use all the | 4:01:30 | 4:01:34 | |
means at his disposal as the
majority shareholder on behalf as | 4:01:34 | 4:01:38 | |
the taxpayer to sort this out and
ordered the banks to pause, consult | 4:01:38 | 4:01:43 | |
with communities and do the right
thing. This matter will not go away. | 4:01:43 | 4:01:54 | |
Can I firstly congratulate my
honourable friend for Stoke-on-Trent | 4:01:54 | 4:01:59 | |
North for securing the debate. It
has been a excellent debate. There | 4:01:59 | 4:02:10 | |
has been cross-party acknowledgement
and examples of the devastating | 4:02:10 | 4:02:15 | |
impact on all our communities of the
closures to branches of a variety of | 4:02:15 | 4:02:19 | |
banks, the impact on accessibility
has been a point well made. The | 4:02:19 | 4:02:24 | |
impact on individuals and
communities as the social market | 4:02:24 | 4:02:29 | |
foundation points out, 11% of the
population rely on using high street | 4:02:29 | 4:02:35 | |
bank branches and that is typically
the older and poorer parts of our | 4:02:35 | 4:02:39 | |
communities. This is an example of
where financial exclusion is a very | 4:02:39 | 4:02:46 | |
real problem up and down the country
and indeed 30% of the over 65 | 4:02:46 | 4:02:55 | |
population, only 30% use online
banking. This is something of | 4:02:55 | 4:03:02 | |
particular importance in
constituencies like mine which is in | 4:03:02 | 4:03:04 | |
the top 20 of constituencies for
people over the age of 65 and a very | 4:03:04 | 4:03:12 | |
real concern and I should come back
later on to some of the examples of | 4:03:12 | 4:03:17 | |
what has happened in my
constituencies. Individuals and | 4:03:17 | 4:03:20 | |
businesses need banking services
that suit them, that suit their | 4:03:20 | 4:03:24 | |
needs. The British banking
Association acknowledges from its | 4:03:24 | 4:03:28 | |
own survey that 58% of people
surveyed believe that access to a | 4:03:28 | 4:03:35 | |
branch using a branch is important
to them and that 50% -- 57% say | 4:03:35 | 4:03:44 | |
face-to-face relationships with
their banks are imported. Those | 4:03:44 | 4:03:47 | |
figures go up for businesses, the
figures are 66% who find that these | 4:03:47 | 4:03:56 | |
to face banking is important. The
impact of branch closures is felt by | 4:03:56 | 4:04:03 | |
individuals in their personal
banking and for business banking as | 4:04:03 | 4:04:07 | |
wealth, with particular impact on
our high streets, communities and as | 4:04:07 | 4:04:14 | |
the Federation of small business
warns, it's a great worry for its | 4:04:14 | 4:04:17 | |
members, the way that many small
businesses now are struggling to do | 4:04:17 | 4:04:22 | |
their banking that they need. In my
constituency we have seen in the | 4:04:22 | 4:04:28 | |
last few years, closures of RBS,
TSB, the Co-op of HSBC and alongside | 4:04:28 | 4:04:37 | |
that, for those members who have
talked about the Post Office network | 4:04:37 | 4:04:42 | |
and the important role the Post
Office has to play in providing | 4:04:42 | 4:04:46 | |
banking services, we have seen
significant Post Office closures as | 4:04:46 | 4:04:49 | |
well and I don't see evidence of a
coordination between the banks and | 4:04:49 | 4:04:53 | |
the Post Office in ensuring that
post offices are providing services | 4:04:53 | 4:04:59 | |
in place of banks when their rock
closures. Just looking at one of the | 4:04:59 | 4:05:04 | |
three towns in my constituency, the
town where I live, we have seen | 4:05:04 | 4:05:10 | |
significant closures including
Barclays. The RBS there is now down | 4:05:10 | 4:05:18 | |
to two days, Monday and Friday,
which was pointed out to me by one | 4:05:18 | 4:05:24 | |
constituent and means for their
business where they have to thank | 4:05:24 | 4:05:27 | |
the takings every day, it is
hopeless. What do they do Tuesday, | 4:05:27 | 4:05:34 | |
Wednesday, Thursday? The NatWest
justification which is online and | 4:05:34 | 4:05:37 | |
anyone can see it for the closure of
its branch included that is only 3.4 | 4:05:37 | 4:05:43 | |
miles to the nearest bank, which
again is hopeless if you cannot get | 4:05:43 | 4:05:47 | |
there by bus or by car. And for
again the many older people that is | 4:05:47 | 4:05:53 | |
completely out of the question. They
included in that document that they | 4:05:53 | 4:05:59 | |
consulted their local MP, said they
truly think that means it's OK | 4:05:59 | 4:06:04 | |
because they asked me if it was all
right to close the branch. I didn't | 4:06:04 | 4:06:09 | |
say it was OK. Turning to some of
the speeches we have had. We heard | 4:06:09 | 4:06:18 | |
from the number from Stoke-on-Trent
North. The vital function of | 4:06:18 | 4:06:24 | |
businesses depositing the day's
takings and the proposed closure of | 4:06:24 | 4:06:28 | |
the Link network and the impact that
would have. An intervention from the | 4:06:28 | 4:06:33 | |
member from Baltimore, he spoke of
NatWest closures and he now has a | 4:06:33 | 4:06:40 | |
constituency with only one bank in
it. Another made the point of the | 4:06:40 | 4:06:47 | |
lack of awareness of Post Office
services. My honourable friend from | 4:06:47 | 4:06:52 | |
Donovan made a very powerful case...
I'm sorry, my right honourable | 4:06:52 | 4:07:03 | |
friend made the excellent case for
creating sustainable community hubs. | 4:07:03 | 4:07:12 | |
She is working very hard on this
campaign as well as working hard to | 4:07:12 | 4:07:17 | |
achieve the recognition in this
place. My honourable friend from | 4:07:17 | 4:07:23 | |
Midlothian mentioned the bank
closures on all sides. No love was | 4:07:23 | 4:07:31 | |
forced on a couple of occasions, but
a very important point about the | 4:07:31 | 4:07:36 | |
very limited response being raised
by RBS to the concerns about those | 4:07:36 | 4:07:42 | |
closures. My honourable friend from
Bury North pointed out the key one | 4:07:42 | 4:07:46 | |
of banks impact in footfall and
trade for other local businesses. He | 4:07:46 | 4:07:53 | |
was right to raise the importance of
Labour's regional banking offer and | 4:07:53 | 4:07:59 | |
the opportunity it gives for
delivering community banking. My | 4:07:59 | 4:08:02 | |
honourable friend from clue itself
is another MP with only bank branch | 4:08:02 | 4:08:08 | |
to serve all of her constituents. My
honourable friend from Sedgefield | 4:08:08 | 4:08:13 | |
mentioned bus services and the fact
that many constituents of his do not | 4:08:13 | 4:08:17 | |
have access to the Internet or phone
as well as the impact on his town | 4:08:17 | 4:08:21 | |
centres. My honourable friend from
Glasgow North East spoke of the way | 4:08:21 | 4:08:27 | |
that banking closures hit the
poorest communities hardest and he | 4:08:27 | 4:08:33 | |
was right to quote the success in
Germany and how we might do well to | 4:08:33 | 4:08:36 | |
emulate and learn from what goes on
there. Because the impact of bank | 4:08:36 | 4:08:43 | |
branch closures are happening at the
same time as banks are making | 4:08:43 | 4:08:47 | |
healthy profits, and we have to
wonder who the customers are. And | 4:08:47 | 4:08:54 | |
whether the banks have lost sight of
the fact that it is the personal and | 4:08:54 | 4:09:02 | |
business banking customers who are
their customers and I always thought | 4:09:02 | 4:09:04 | |
that for a business, putting 1's
customers first was the way to | 4:09:04 | 4:09:11 | |
succeed in the way to operate.
Certainly a lesson island when I ran | 4:09:11 | 4:09:15 | |
a business and as the time, to put
public good ahead of short-term | 4:09:15 | 4:09:21 | |
profit. It is something that the
challenge of banks, whether that is | 4:09:21 | 4:09:26 | |
Metro or the bank of Dave, the
entrepreneurial report approach, | 4:09:26 | 4:09:32 | |
have demonstrated it is possible to
be successful in having a bank | 4:09:32 | 4:09:37 | |
branch. Is it time to see banks and
the financial services as a utility, | 4:09:37 | 4:09:46 | |
and essential public service that
delivers for customers, for high | 4:09:46 | 4:09:51 | |
streets, communities and small
businesses? Be regulated the | 4:09:51 | 4:09:56 | |
financial services sector now and if
this Government won't add to that | 4:09:56 | 4:10:01 | |
regulation by addressing this issue,
I can certainly tell the minister | 4:10:01 | 4:10:05 | |
that the Labour Party in government
will do so. We will approach it by | 4:10:05 | 4:10:10 | |
ensuring that no closure can happen
without proper local consultation | 4:10:10 | 4:10:13 | |
and crucially, without the approval
of the Financial Conduct Authority. | 4:10:13 | 4:10:24 | |
I couldn't finish that without
mentioning the honourable member who | 4:10:24 | 4:10:29 | |
mentioned RBS and the systematic
abuse, the intentional and according | 4:10:29 | 4:10:33 | |
to approach that RBS board
responsibility for small businesses. | 4:10:33 | 4:10:40 | |
Another reminder that the attitude
and approach of banks is not what is | 4:10:40 | 4:10:45 | |
needed by the customers. Government
must intervene it so that the banks | 4:10:45 | 4:10:49 | |
work for us. The banking access
protocol has not delivered as many | 4:10:49 | 4:10:55 | |
members pointed out. The impact on
communities, travel, the | 4:10:55 | 4:10:59 | |
environment, economies and
businesses by having fitful of the | 4:10:59 | 4:11:06 | |
lunar landing that happens in the
places without bank branches, 10% of | 4:11:06 | 4:11:11 | |
households don't have the Internet
and only 9% of small firms approach | 4:11:11 | 4:11:15 | |
their banks in 2016 for finance. All
of these add up as examples of why | 4:11:15 | 4:11:22 | |
and how the banking system is not
delivering. This isn't about | 4:11:22 | 4:11:26 | |
mastalgia of Captain Mannering, it
is about what is needed today, these | 4:11:26 | 4:11:36 | |
banking, personal business and
personal customers matter, service | 4:11:36 | 4:11:40 | |
matters, bank branches matter and
can be alongside the post office. | 4:11:40 | 4:11:45 | |
But if we put the public good first,
we can be successful. The voluntary | 4:11:45 | 4:11:52 | |
approach has not worked and the only
organisation that can ensure our | 4:11:52 | 4:11:55 | |
banking system delivers is
Government. Time to act. Thank you. | 4:11:55 | 4:12:02 | |
I would like to firstly commend the
member for Stoke-on-Trent North and | 4:12:02 | 4:12:09 | |
Hazel Grove on securing this debate
and the bank bench business | 4:12:09 | 4:12:13 | |
committee for allowing it. We have
had a very lively debate, 16 | 4:12:13 | 4:12:17 | |
contributions from backbench
members. This debate has rightly | 4:12:17 | 4:12:23 | |
aroused a lot of passion. I would
observe this is the third debate in | 4:12:23 | 4:12:26 | |
four weeks since I've been in post,
twice in Westminster Hall. I think | 4:12:26 | 4:12:31 | |
the banks will need to respond to
what they have heard, all over the | 4:12:31 | 4:12:44 | |
country, we have heard the case made
for banks to remain open. In my own | 4:12:44 | 4:12:52 | |
constituency, I will be meeting with
Lords bank tomorrow to discuss the | 4:12:52 | 4:12:55 | |
closure of Wilton bank, which is
scheduled for the 19th of March this | 4:12:55 | 4:13:01 | |
year. This is a very, very important
issue and I listen very carefully to | 4:13:01 | 4:13:07 | |
the observations from members across
the House over what Government | 4:13:07 | 4:13:11 | |
should do. It ranged from the member
for Thanet side who is very reticent | 4:13:11 | 4:13:16 | |
as he is to see Government get
involved committee member from | 4:13:16 | 4:13:22 | |
Sefton Central, in a very measured
speech, held out the prospect of | 4:13:22 | 4:13:26 | |
significant intervention from
Government. But I believe that there | 4:13:26 | 4:13:32 | |
is a role for Government in dealing
with this issue and in my remarks | 4:13:32 | 4:13:36 | |
know I want to talk about the
Government was an actions to support | 4:13:36 | 4:13:40 | |
those who require banking services
and the Government's commitment to | 4:13:40 | 4:13:45 | |
widespread free access to cash. I
want to address the banking standard | 4:13:45 | 4:13:51 | |
and I note the right honourable
lady's comments about the inadequacy | 4:13:51 | 4:13:56 | |
of that. And also be banking
services available at the post | 4:13:56 | 4:14:00 | |
office in terms of the concerns that
people have raised about the way | 4:14:00 | 4:14:04 | |
that that works. I will also address
the UK ATM operator links financial | 4:14:04 | 4:14:11 | |
inclusion programme. Madam Deputy
Speaker, I want financial services | 4:14:11 | 4:14:16 | |
that deliver for all customers up
and down this country, from | 4:14:16 | 4:14:21 | |
Salisbury high Street to the
farthest reaches of the Hebrides. | 4:14:21 | 4:14:25 | |
All honourable member will
appreciate that banking needs to | 4:14:25 | 4:14:29 | |
respond to the changing customer
behaviour, we have heard that | 4:14:29 | 4:14:33 | |
depicted very widely in this debate
this afternoon. Change which is | 4:14:33 | 4:14:38 | |
driven by the unrivalled speed of
innovation in the financial services | 4:14:38 | 4:14:42 | |
sector is not easy to remedy. How
many of us in this House regularly | 4:14:42 | 4:14:49 | |
use our local branch? How many of us
manage our finances online or | 4:14:49 | 4:14:55 | |
through our mobile phones?
Ultimately, what I have repeatedly | 4:14:55 | 4:14:58 | |
made clear in these four weeks I
have been in this place is that the | 4:14:58 | 4:15:03 | |
management decisions of banks are
made without intervention from | 4:15:03 | 4:15:06 | |
Government. I do hear the call from
the honourable lady from North | 4:15:06 | 4:15:13 | |
Ayrshire and Arran to intervene, I
think it is somewhat at odds when I | 4:15:13 | 4:15:16 | |
read about the fact that when we
come to look at Prestwick, where the | 4:15:16 | 4:15:21 | |
Scottish Government owns it
completely, that I am told from the | 4:15:21 | 4:15:29 | |
Scottish Government spokesman,
ministers have no role in the | 4:15:29 | 4:15:31 | |
operation of contractual agreements
made by the airport. There is an | 4:15:31 | 4:15:36 | |
inconsistency there. I think that's
really important that we acknowledge | 4:15:36 | 4:15:40 | |
that and the Government actually
acts through the regulator, and that | 4:15:40 | 4:15:45 | |
isn't a static dialogue. I've
already spoken extensively to the | 4:15:45 | 4:15:51 | |
head of the SCA and work can be
done. The Government believes these | 4:15:51 | 4:15:57 | |
firms have a responsibility to
minimise the impact of closures on | 4:15:57 | 4:16:00 | |
communities where ever possible and
that is why I am pleased to address | 4:16:00 | 4:16:03 | |
this motion today. The Government
already supports a range of measures | 4:16:03 | 4:16:08 | |
to protect access to banking
services in local communities in the | 4:16:08 | 4:16:11 | |
UK, but we must acknowledge this
change that has happened. Branch | 4:16:11 | 4:16:16 | |
footfall is following year on year,
down by a third since 2011. And the | 4:16:16 | 4:16:23 | |
number of banking at transaction has
risen massively to 932 million | 4:16:23 | 4:16:30 | |
transactions in 2016, an increase of
57% on the previous year. I don't | 4:16:30 | 4:16:37 | |
think... Government cannot resist
that, but what can we do? I want to | 4:16:37 | 4:16:42 | |
come to the banking standard, the
access to banking standard, because | 4:16:42 | 4:16:47 | |
the standard commits all major high
street branches to a series of | 4:16:47 | 4:16:50 | |
outcomes when they decide to close a
branch. There are three principal | 4:16:50 | 4:16:55 | |
obligations, banks will give
customers three months notice of | 4:16:55 | 4:16:58 | |
closure, I note the call from the
member for Chippenham, they are | 4:16:58 | 4:17:03 | |
tasked to extend that time period,
they have a responsibility as soon | 4:17:03 | 4:17:09 | |
as operationally ready, I notice in
RBS's is they give six months | 4:17:09 | 4:17:12 | |
notice. Banks will work with
customers after the announcement has | 4:17:12 | 4:17:17 | |
been made to ensure the note how and
where they can continue to bank. The | 4:17:17 | 4:17:24 | |
third point, vitally important,
banks are required to identify | 4:17:24 | 4:17:27 | |
vulnerable customers and ensure they
receive all the help they need. This | 4:17:27 | 4:17:31 | |
could mean helping customers get
online for the first time and to | 4:17:31 | 4:17:35 | |
demean it showing them the
facilities at the local. There is or | 4:17:35 | 4:17:40 | |
ensuring they have access to a
mobile branch, a telephone banking | 4:17:40 | 4:17:43 | |
service or a local free to use ATM.
Every bank will take a different | 4:17:43 | 4:17:48 | |
approach, but the principle is
standard is that the outcome for | 4:17:48 | 4:17:52 | |
customers will be the same. In July
2017, the lending standards board is | 4:17:52 | 4:17:59 | |
now responsible for monitoring and
enforcing the standard. It does have | 4:17:59 | 4:18:06 | |
the power to cancel or suspend the
registered firms registration and | 4:18:06 | 4:18:10 | |
give directions on the future
conduct. I will look carefully at | 4:18:10 | 4:18:14 | |
her remarks and how those matters
can be strengthened and see if there | 4:18:14 | 4:18:18 | |
is anything further that can be
done. This independent oversight is | 4:18:18 | 4:18:25 | |
welcome and an important addition to
the way the standard works. I want | 4:18:25 | 4:18:28 | |
to turn also to the issue of the ATM
network, and the post offices, | 4:18:28 | 4:18:36 | |
because I acknowledge the Government
has also made great strides in | 4:18:36 | 4:18:42 | |
bolstering over the counter banking
services available to customers at | 4:18:42 | 4:18:46 | |
the post office and an extra £370
million was announced in December to | 4:18:46 | 4:18:50 | |
support at work. UK banks and
building societies have reached a | 4:18:50 | 4:18:54 | |
new agreement with the post office
which has set the standard for the | 4:18:54 | 4:18:58 | |
banking services available in eight.
It ensuring a uniform level across | 4:18:58 | 4:19:02 | |
all the branches. These services can
include the ability to check a | 4:19:02 | 4:19:09 | |
balance as well as withdraw and
deposit cash using a debit card and | 4:19:09 | 4:19:13 | |
chip and pin or a preprinted peeing
in slip and deposited checks. There | 4:19:13 | 4:19:18 | |
is a cash deposit limit of £2000 by
the post office estimates this | 4:19:18 | 4:19:23 | |
covers 95% of all transactions. We
should not forget the 99.7% of | 4:19:23 | 4:19:31 | |
people now live within three miles
of the local post office and 93% | 4:19:31 | 4:19:35 | |
within a mile. At the autumn budget
in 2017, my predecessor wrote to the | 4:19:35 | 4:19:42 | |
post office and UK finance to ask
them to consider how they could | 4:19:42 | 4:19:47 | |
fulfil the aim is that they've set
out. Yesterday, I have written again | 4:19:47 | 4:19:53 | |
to impress on them... I will be
happy to give way. Would the | 4:19:53 | 4:20:00 | |
Minister furnish us after this
debate with Will he get the figure | 4:20:00 | 4:20:06 | |
from 4093%? I don't see how that
there is any relationship to the | 4:20:06 | 4:20:10 | |
reality of many of our constituents.
I would be very happy to do that. I | 4:20:10 | 4:20:15 | |
want to make the point I have
written to the post office and UK | 4:20:15 | 4:20:20 | |
finance to impress on them the
importance of developing detailed | 4:20:20 | 4:20:25 | |
joint proposals to achieve the
objectives everyone has set out that | 4:20:25 | 4:20:29 | |
they rightly require. I am clear
these proposals must include a | 4:20:29 | 4:20:34 | |
shared vision for public awareness
made broking services available. | 4:20:34 | 4:20:36 | |
This, measurable outcomes that the
party agree they can use in | 4:20:36 | 4:20:45 | |
delivering that vision, specific
action is the post office and | 4:20:45 | 4:20:48 | |
parties to the banking framework
agree to achieve the outcomes, | 4:20:48 | 4:20:53 | |
collectively and or individually.
And a timeline for doing so, and | 4:20:53 | 4:20:57 | |
arrangements for measuring the
impact of the specific actions on | 4:20:57 | 4:21:00 | |
public awareness throughout the UK
to ensure the outcomes are achieved. | 4:21:00 | 4:21:05 | |
This is an issue I know colleagues
across the House feels strongly | 4:21:05 | 4:21:09 | |
about and I have heard that today,
one on which I am determined to see | 4:21:09 | 4:21:14 | |
progress on. I have asked for a
response by the end of March. I will | 4:21:14 | 4:21:18 | |
be happy to update the House.
Several of you have mentioned access | 4:21:18 | 4:21:25 | |
to cash. The Government continues to
work with the industry to ensure the | 4:21:25 | 4:21:29 | |
provision of widespread free access
to cash and Link, the organisation | 4:21:29 | 4:21:34 | |
which runs the ATM network, has
assured us it is committed to | 4:21:34 | 4:21:39 | |
maintaining an extensive network of
free to use cash machines and the | 4:21:39 | 4:21:43 | |
present spread of ATMs is
maintained. On the 31st of January, | 4:21:43 | 4:21:49 | |
the announced plans to bolster its
financial inclusion programme which | 4:21:49 | 4:21:52 | |
ensures the provision of ATMs clear
demand would not make one viable. | 4:21:52 | 4:21:59 | |
They have confirmed this will
include addresses in instances where | 4:21:59 | 4:22:02 | |
there is the closure of the bank.
And they have specifically committed | 4:22:02 | 4:22:06 | |
to protecting all free to use ATMs
which are a kilometre or more from | 4:22:06 | 4:22:14 | |
the next free to use ATM. I would
like to thank the members for | 4:22:14 | 4:22:23 | |
Stoke-on-Trent North and Hazel Grove
and all the members who have spoken | 4:22:23 | 4:22:26 | |
this afternoon. I hope I've been
able to give some reassurance the | 4:22:26 | 4:22:30 | |
Government recognises the
frustration and disappointment | 4:22:30 | 4:22:36 | |
caused by bank branch closers.
Ultimately, the Government cannot | 4:22:36 | 4:22:42 | |
reverse market movements or
significant changes in customer | 4:22:42 | 4:22:46 | |
behaviour. I believe it is right the
Government does not intervene in | 4:22:46 | 4:22:50 | |
commercial decisions would respond
to these changes. I will continue to | 4:22:50 | 4:22:55 | |
work to ensure everyone can access
the banking services they need for | 4:22:55 | 4:22:58 | |
everyday lives. This Government has
taken measures to maintain access to | 4:22:58 | 4:23:06 | |
vital banking services and ensure
banks support community is across | 4:23:06 | 4:23:09 | |
the UK when the local branches
close. I think the engagement of all | 4:23:09 | 4:23:16 | |
members across the House in that
process is one that banks will need | 4:23:16 | 4:23:21 | |
to continue to respect and respond
to. I encourage every member to keep | 4:23:21 | 4:23:25 | |
the dialogue open with their
constituents on how they can take | 4:23:25 | 4:23:29 | |
advantage of the many options
already in place. Thank you, may I | 4:23:29 | 4:23:38 | |
thank the Minister for his response.
I have a lot of respect for him and | 4:23:38 | 4:23:42 | |
I wish him more luck with Lloyd's
bank tomorrow than I had. There is | 4:23:42 | 4:23:48 | |
some issues that we need more
clarification on. I think the | 4:23:48 | 4:23:52 | |
emphasis should be on the banking
sector to resolve these issues, but | 4:23:52 | 4:23:55 | |
if they won't act and so far
happened, we are going to have to | 4:23:55 | 4:24:00 | |
act as the Government and Parliament
to hold to account. They are not | 4:24:00 | 4:24:05 | |
being imaginative. One of my issues
is the Link access to ATMs. I | 4:24:05 | 4:24:12 | |
welcome any announcement in terms of
what that might mean, so far | 4:24:12 | 4:24:16 | |
evidence suggests 3500 ATMs might be
closed. That could be a challenge, I | 4:24:16 | 4:24:23 | |
would urge you to look more closely
at that as well as the post office. | 4:24:23 | 4:24:29 | |
We have agreed that face-to-face and
personal contact is vital at the | 4:24:29 | 4:24:33 | |
role of the post office network,
while helpful, does not fulfil in | 4:24:33 | 4:24:38 | |
its current function what we need
from it and we need to talk about | 4:24:38 | 4:24:42 | |
public transport infrastructure so
that people can access alternatives. | 4:24:42 | 4:24:46 | |
I thank you very much for the debate
and I look forward to working with | 4:24:46 | 4:24:49 | |
you on this issue going forward. The
question is asked on the order paper | 4:24:49 | 4:24:55 | |
as many rows of that opinion it's a
aye. The contrary no. The ayes have | 4:24:55 | 4:25:02 | |
it, the ayes have it. The tightening
up of regulations remained private | 4:25:02 | 4:25:13 | |
landlords, I should have declared...
It was an oversight, I want to take | 4:25:13 | 4:25:20 | |
this opportunity to correct that. I
thank the honourable gentleman for | 4:25:20 | 4:25:24 | |
putting his point on the record.
Thank you. I beg to move this House | 4:25:24 | 4:25:33 | |
be now adjourned. The question is
that that's House due now adjourn. | 4:25:33 | 4:25:40 | |
Madam Deputy Speaker, I have asked
for this debate to enlist the help | 4:25:40 | 4:25:43 | |
of the Minister to get North East
Hertfordshire up to speed with | 4:25:43 | 4:25:49 | |
superfast broadband. | 4:25:49 | 4:25:53 | |
My constituency contains towns which
already have good broadband speeds, | 4:25:53 | 4:26:01 | |
but they're also many small rural
hamlets which do not yet superfast | 4:26:01 | 4:26:05 | |
broadband. North East Hertfordshire
is by far the largest constituency | 4:26:05 | 4:26:13 | |
geographically in Hertfordshire, yet
we have a far lower total of | 4:26:13 | 4:26:19 | |
superfast broadband coverage than
other parts of the county and I will | 4:26:19 | 4:26:23 | |
be asking the Minister to help me to
push the current coverage in my | 4:26:23 | 4:26:28 | |
constituency up to the Hertfordshire
average of 95% this year, and then | 4:26:28 | 4:26:33 | |
to complete the job of reaching the
target of close to 99% in 2019. I | 4:26:33 | 4:26:39 | |
have been pressing hard on this in
the last year according to the House | 4:26:39 | 4:26:43 | |
of Commons library, the coverage has
gone up from 67% to 77% in my | 4:26:43 | 4:26:49 | |
constituency, but this is far from
being good enough and we do need | 4:26:49 | 4:26:53 | |
sustained efforts from ministers,
Openreach under Herts county council | 4:26:53 | 4:26:59 | |
delivery organisation called
connected counties to push the | 4:26:59 | 4:27:04 | |
figure higher and quicker. In the
last few months I have discussed | 4:27:04 | 4:27:08 | |
this personally would be Secretary
of State, with the managing director | 4:27:08 | 4:27:11 | |
of Openreach and the present and the
previous leaders of Herts county | 4:27:11 | 4:27:21 | |
council. Long ago it was agreed by
government and in this House that it | 4:27:21 | 4:27:27 | |
would have to fund the roll-out of
superfast broadband in | 4:27:27 | 4:27:35 | |
noncommercially viable areas such as
my hamlets. I was one of the MPs who | 4:27:35 | 4:27:39 | |
persuaded the Government that it had
to be involved and I can remember | 4:27:39 | 4:27:44 | |
lobbying secretaries of state
including my honourable friend for | 4:27:44 | 4:27:48 | |
South West Surrey and for
Basingstoke for such funding and | 4:27:48 | 4:27:51 | |
being pleased at their recognition
in successive phases of the strong | 4:27:51 | 4:27:56 | |
case that such coverage is essential
if a structure akin to other | 4:27:56 | 4:28:01 | |
utilities. Money was made available.
Despite my part in securing this | 4:28:01 | 4:28:06 | |
funding, it has been disappointing
and frustrating to watch the lack of | 4:28:06 | 4:28:11 | |
progress in connecting up my rural
areas while successive ministers | 4:28:11 | 4:28:14 | |
have assured me that the county as a
whole has achieved first 92% and | 4:28:14 | 4:28:21 | |
then 95% coverage, is only recently
been acknowledged that the coverage | 4:28:21 | 4:28:23 | |
in my area has edged up at a smell's
pays to the current 84% and its | 4:28:23 | 4:28:31 | |
cooling to my constituents to land
that ultrafast broadband is being | 4:28:31 | 4:28:36 | |
piloted in Bishops Stortford when
they are languishing with no | 4:28:36 | 4:28:40 | |
coverage or a few crimes such as 0.8
megabits per second. To give an | 4:28:40 | 4:28:46 | |
example, the village of Little
Howard which is three miles from | 4:28:46 | 4:28:50 | |
Bishops Stortford has 61%, receiving
under 10 megabits per second. He | 4:28:50 | 4:28:57 | |
should not be forgotten this is not
a remote area. Some of the bases | 4:28:57 | 4:29:02 | |
with the worst coverage, for example
in Hartford raw Southwood, are some | 4:29:02 | 4:29:07 | |
20 miles from London. Many people
now work from home, something that | 4:29:07 | 4:29:12 | |
is encouraged for London workers to
take the strain of the transport | 4:29:12 | 4:29:16 | |
system. My constituents would like
the opportunity to do that, | 4:29:16 | 4:29:20 | |
particularly those with caring
responsibilities but cannot do it | 4:29:20 | 4:29:23 | |
without broadband. They arrive high
number of small businesses in these | 4:29:23 | 4:29:27 | |
areas, many encouraged by the offer
of office space in former farm | 4:29:27 | 4:29:34 | |
buildings, diversification on farms
is encouraged by our local councils | 4:29:34 | 4:29:36 | |
and the Government and to give
another example, the villages of | 4:29:36 | 4:29:42 | |
Western Lycos to Stevenage.
Stevenage has download speeds of | 4:29:42 | 4:29:46 | |
close to 70 megabits per second but
in Western, 83% are unable even to | 4:29:46 | 4:29:53 | |
receive 10 megabits per second. I am
grateful to do which organisation | 4:29:53 | 4:29:59 | |
for pointing out to me that recent
data from Ofcom showed that the | 4:29:59 | 4:30:03 | |
average download speed in North East
Hertfordshire is 47.8 Mb per second, | 4:30:03 | 4:30:10 | |
whereas other neighbouring
constituencies are the 60 megabits | 4:30:10 | 4:30:14 | |
per second mark. However which an
analysis of speed tests found that | 4:30:14 | 4:30:19 | |
the media download speed in North
East Hertfordshire is only 13.9 | 4:30:19 | 4:30:25 | |
megabits per second and a quarter of
speeds recorded were less than 6.8. | 4:30:25 | 4:30:29 | |
I would like to offer the Minister
my analysis of the problems in the | 4:30:29 | 4:30:35 | |
roll-out process. Connected counties
has operated with Openreach | 4:30:35 | 4:30:39 | |
identifying areas which may not be
commercially viable and connected | 4:30:39 | 4:30:44 | |
counties then offering Openreach
subsidy to do the works. Where | 4:30:44 | 4:30:49 | |
take-up turns out after all to be
commercially viable, Openreach | 4:30:49 | 4:30:54 | |
returns the subsidy to connected
counties and it can be useful as | 4:30:54 | 4:30:58 | |
commercially viable areas. I am told
this return subsidy has happened in | 4:30:58 | 4:31:03 | |
about 50% of cases and it seems to
me that this clearly demonstrates | 4:31:03 | 4:31:09 | |
that the subsidy has been used to do
many areas which are in fact | 4:31:09 | 4:31:14 | |
commercially viable and meaning
those less viable areas have had | 4:31:14 | 4:31:17 | |
their roll-out delayed. This
overcautious assessment of | 4:31:17 | 4:31:21 | |
commercial risk has meant that those
like me who pressed for subsidy for | 4:31:21 | 4:31:25 | |
areas like North East Hertfordshire
hamlets which are not commercially | 4:31:25 | 4:31:30 | |
viable have been delayed and
disappointed. I would like to ask | 4:31:30 | 4:31:34 | |
ministers if they have met the chief
executive of Openreach Clive Selley | 4:31:34 | 4:31:39 | |
and the chief financial Officer Matt
Davies to discuss this and to | 4:31:39 | 4:31:45 | |
tighten up assessment proceedings.
Since my latest push on speeding up | 4:31:45 | 4:31:50 | |
broadband roll-out, further progress
has been made and this has continued | 4:31:50 | 4:31:54 | |
since the last House of Commons
library information. The leader of | 4:31:54 | 4:31:58 | |
the county council has told me this
week that the latest assessment puts | 4:31:58 | 4:32:03 | |
coverage in my constituency now at
84%, but this is all by fibre to the | 4:32:03 | 4:32:10 | |
cabinet rather fibre to the premises
which is needed in many small | 4:32:10 | 4:32:12 | |
hamlets. I was staying with friends
this weekend in a very rural | 4:32:12 | 4:32:19 | |
location in deepest Suffolk and was
very surprised to learn that they | 4:32:19 | 4:32:22 | |
have fibre to the premises with high
speeds were my constituents 20 miles | 4:32:22 | 4:32:28 | |
from London have none. I have taken
up with ministers Openreach an | 4:32:28 | 4:32:33 | |
Hertfordshire County Council the
particular case of Western | 4:32:33 | 4:32:36 | |
Greensmith Standen whose residents
petitioned the House about their | 4:32:36 | 4:32:43 | |
situation. In early 2016, many
residents signed up a competitor of | 4:32:43 | 4:32:51 | |
Openreach for superfast broadband to
be installed by March 20 17. In | 4:32:51 | 4:32:58 | |
about June 2016, connected counties
including Openreach announced that | 4:32:58 | 4:33:00 | |
they were going to install superfast
broadband in these hamlets by March | 4:33:00 | 4:33:05 | |
2017 and the effect of this is that
many residents withdrew who decided | 4:33:05 | 4:33:12 | |
not to go ahead at that time. Then
in January 2017 to the anger and | 4:33:12 | 4:33:18 | |
dismay of residence, Openreach
announced the roll-out had to be | 4:33:18 | 4:33:22 | |
remapped and in June 2017, a
timetable for superfast broadband | 4:33:22 | 4:33:29 | |
roll-out was given for 2018-19. This
caused understandable outrage. The | 4:33:29 | 4:33:35 | |
residents had only decided not to
proceed because Openreach had offer | 4:33:35 | 4:33:44 | |
the same timetable. I have discussed
this unacceptable situation with all | 4:33:44 | 4:33:48 | |
those involved and was pleased that
Openreach agreed to bring forward | 4:33:48 | 4:33:52 | |
the start of works in these hamlets
to June 20 18. Other ministers | 4:33:52 | 4:33:58 | |
should be aware of the great
unhappiness locally with what has | 4:33:58 | 4:34:02 | |
happened and anything she can do to
encourage Openreach to bring forward | 4:34:02 | 4:34:07 | |
the works even further would be very
helpful. I recognise that the | 4:34:07 | 4:34:12 | |
national roll-out is an enormous
undertaking with a limited number of | 4:34:12 | 4:34:15 | |
providers in the field and
nationally a great deal has been | 4:34:15 | 4:34:20 | |
achieved, however the subsidy for
which I campaign was designed to | 4:34:20 | 4:34:25 | |
ensure that areas which were not
commercially viable were connected | 4:34:25 | 4:34:28 | |
up. In the last year we have seen
coverage in my constituency driven | 4:34:28 | 4:34:34 | |
up from 67% to the current 84%, up
17%, but I want us to see us hit the | 4:34:34 | 4:34:42 | |
county average before the end of
2018 and hit the national target as | 4:34:42 | 4:34:46 | |
soon after that as is possible. In
this day and age, people living near | 4:34:46 | 4:34:52 | |
London in raw won locations expect
superfast broadband and it is in the | 4:34:52 | 4:34:57 | |
Government's interest to achieve it.
I hope the Minister will ask | 4:34:57 | 4:35:02 | |
Openreach, connected counties and
the council to do all they can to | 4:35:02 | 4:35:05 | |
ensure that north-east Fisher comes
up to speed this year and that the | 4:35:05 | 4:35:11 | |
unfairness to Westland greens is
addressed now. I would like to thank | 4:35:11 | 4:35:21 | |
the member for securing this debate.
And for his extremely well-informed | 4:35:21 | 4:35:27 | |
speech and I have learned a great
deal from it and I shall be reading | 4:35:27 | 4:35:31 | |
it again after the debate. He's
clearly been involved in this issue | 4:35:31 | 4:35:36 | |
for a long time and has the
outstanding knowledge of the | 4:35:36 | 4:35:40 | |
problem. But it does give me an
opportunity to update the House on | 4:35:40 | 4:35:47 | |
the Government's plans and progress
towards ensuring universal | 4:35:47 | 4:35:50 | |
high-speed broadband. It's crucial,
more so in raw won communities | 4:35:50 | 4:35:58 | |
across the UK and even in our urban
centres and so the Government and | 4:35:58 | 4:36:03 | |
local partners are investing 1.7
billion in the superfast broadband | 4:36:03 | 4:36:08 | |
programme. The programme has
provided superfast coverage with | 4:36:08 | 4:36:12 | |
speeds of more than 24 megabits per
second for over 4.75 million | 4:36:12 | 4:36:18 | |
premises in areas that would not
otherwise have been covered by | 4:36:18 | 4:36:22 | |
commercially funded roll-out. 95% of
homes and businesses in the UK can | 4:36:22 | 4:36:29 | |
now access superfast broadband, up
from 45% in 2010. At least £210 | 4:36:29 | 4:36:37 | |
million of funding will be available
to support further investment as a | 4:36:37 | 4:36:42 | |
result of efficiency savings in the
initial roll-out. Because of the | 4:36:42 | 4:36:46 | |
high levels of take-up, we will also
have gained share funding from the | 4:36:46 | 4:36:50 | |
additional profits from the network
it is predicted to reach at least | 4:36:50 | 4:36:56 | |
527 million and that means that a
total of 737 million will be | 4:36:56 | 4:37:02 | |
available to support further
roll-out. I know my honourable | 4:37:02 | 4:37:05 | |
friend will recognise that
improvement has been achieved in his | 4:37:05 | 4:37:10 | |
own constituency over the past few
years, he did quote some figures. | 4:37:10 | 4:37:14 | |
Since the beginning of last year,
superfast coverage in his | 4:37:14 | 4:37:19 | |
constituency has increased to 84%
while 92% of premises have speeds of | 4:37:19 | 4:37:26 | |
10 megabits per second or above. The
connected counties project which he | 4:37:26 | 4:37:34 | |
referred to delivering across both
Hertfordshire and Buckinghamshire | 4:37:34 | 4:37:39 | |
has to date provided superfast
broadband access to over 71,000 | 4:37:39 | 4:37:44 | |
premises that would have otherwise
been left behind. This equates to | 4:37:44 | 4:37:51 | |
over 96% superfast coverage across
Hertfordshire. Additionally, 23,000 | 4:37:51 | 4:37:56 | |
further premises are still to be
covered through the projects current | 4:37:56 | 4:38:00 | |
roll-out plans. Beyond the scope of
the connected counties project, | 4:38:00 | 4:38:08 | |
Hertfordshire County Council also
progressing the option of a new | 4:38:08 | 4:38:12 | |
recruitment exercise. I understand
they have undertaken an open market | 4:38:12 | 4:38:16 | |
review to understand the latest
commercial plants in the county. | 4:38:16 | 4:38:19 | |
This evidence is the council's
commitment to ensuring areas are not | 4:38:19 | 4:38:26 | |
left behind. I recognise that
communities, some of which my | 4:38:26 | 4:38:29 | |
honourable friend referred to in his
speech, which have not yet got this | 4:38:29 | 4:38:35 | |
coverage, will feel left behind. In
the case of Hertfordshire, the local | 4:38:35 | 4:38:41 | |
authority has managed the current
delivery contract with BT to | 4:38:41 | 4:38:45 | |
maximise coverage to as many
premises as possible as quickly as | 4:38:45 | 4:38:49 | |
they can. This can sometimes leave
gaps on the ground where some areas | 4:38:49 | 4:38:54 | |
are covered and adjacent areas are
not as he himself outlined in his | 4:38:54 | 4:39:00 | |
speech. However, the alternative
would have been to prioritise some | 4:39:00 | 4:39:04 | |
communities over others during the
roll-out, this would have been less | 4:39:04 | 4:39:09 | |
efficient and involved the local
authority in making choices to | 4:39:09 | 4:39:14 | |
determine which communities should
get covered first. The approach | 4:39:14 | 4:39:19 | |
taken by Hertfordshire County
Council in the contacts therefore | 4:39:19 | 4:39:21 | |
seems reasonable. Broadband delivery
UK have also manage the programme | 4:39:21 | 4:39:30 | |
effectively. Thereafter yeah major
infrastructure projects which | 4:39:30 | 4:39:33 | |
achieve their delivery target on
schedule and with so much funding | 4:39:33 | 4:39:36 | |
being returned. I recognise the need
to ensure that new housing has | 4:39:36 | 4:39:43 | |
superfast coverage, Openreach have
committed that all new developments | 4:39:43 | 4:39:48 | |
with at least 30 properties will
have fibre to the premises. This | 4:39:48 | 4:39:52 | |
will ensure that almost all new
housing has full five access | 4:39:52 | 4:39:56 | |
provided. We are also continuing to
focus very much on the remaining 5% | 4:39:56 | 4:40:03 | |
of premises which do not yet have
superfast access. Across the UK as a | 4:40:03 | 4:40:08 | |
whole, we are confident that at
least half the remaining premises | 4:40:08 | 4:40:12 | |
will get their superfast coverage to
the continued roll-out. However, | 4:40:12 | 4:40:16 | |
even with this further delivery,
some premises will still remain | 4:40:16 | 4:40:22 | |
without the superfast broadband that
they need. We are therefore working | 4:40:22 | 4:40:27 | |
hard on our commitment to ensure
universal high-speed broadband of at | 4:40:27 | 4:40:31 | |
least 10 megabits per second by
2020. We will shortly set out the | 4:40:31 | 4:40:37 | |
design for a legal right to
high-speed broadband in secondary | 4:40:37 | 4:40:41 | |
legislation alongside our detailed
response to become to attention. | 4:40:41 | 4:40:47 | |
Ofcom's imprint a chimp is expected
to take two years from way really | 4:40:47 | 4:40:54 | |
secondary legislation, meeting the
Government 's commitment of giving | 4:40:54 | 4:40:57 | |
everyone access to high-speed
broadband by 2020. | 4:40:57 | 4:41:03 | |
The better broadband scheme is
available for any home or business | 4:41:03 | 4:41:07 | |
with speeds below 2 megabits per
second. This provides a subsidy of | 4:41:07 | 4:41:12 | |
up to £350 for any eligible premises
for satellite broadband or, if we | 4:41:12 | 4:41:19 | |
are available, other solutions,
including fixed for GE, fixed | 4:41:19 | 4:41:24 | |
wireless autoimmunity fibre
projects. This scheme has no | 4:41:24 | 4:41:28 | |
supported over 13,000 homes and
businesses. Communities which | 4:41:28 | 4:41:33 | |
currently do not have superfast
broadband can consider the option of | 4:41:33 | 4:41:38 | |
undertaking their own committee
project. Community projects can | 4:41:38 | 4:41:41 | |
either be completely self managed
and delivered or involve two | 4:41:41 | 4:41:46 | |
amenities co-funding with providers
such as BT via their community fibre | 4:41:46 | 4:41:53 | |
partnership scheme. Ever focus until
now has been on extending the | 4:41:53 | 4:41:57 | |
superfast broadband coverage, but we
also need to move to ensure a | 4:41:57 | 4:42:03 | |
transformation in the UK's digital
infrastructure so it is based on a | 4:42:03 | 4:42:07 | |
fiver to the presence or full five.
Currently, only 3% of premises have | 4:42:07 | 4:42:13 | |
a fibre-optic connection. We accept
that is not good enough. We have a | 4:42:13 | 4:42:21 | |
target of 10 million premises which
have the full fibre connection by | 4:42:21 | 4:42:23 | |
2022. Recent industry announcements
show this is achievable, BT open | 4:42:23 | 4:42:31 | |
reach, and in answer to my right
honourable friend's question, I have | 4:42:31 | 4:42:36 | |
met the chief executive, and when I
next to meet him I will raise with | 4:42:36 | 4:42:41 | |
him the tobacco my right honourable
friend described when residents | 4:42:41 | 4:42:46 | |
turned down the offer on the basis
that BT open reach were apparently | 4:42:46 | 4:42:52 | |
going to deliver then it to their
needs in a timely manner, only to be | 4:42:52 | 4:42:56 | |
let down. I do take that to heart,
the residents must be deeply | 4:42:56 | 4:43:03 | |
frustrated and upset. I will raise
that with them. Virgin media, hyper | 4:43:03 | 4:43:13 | |
optic, and others all have plans for
significant new fibre coverage. Last | 4:43:13 | 4:43:19 | |
week, open reach and aged their plan
to reach 3 million premises by 2020 | 4:43:19 | 4:43:25 | |
and the proposal to get to 10
million by 2025 if the conditions | 4:43:25 | 4:43:30 | |
are right. I was pleased today to
hear that the talk talk | 4:43:30 | 4:43:35 | |
announcement, that they were going
to reduce their dividend in order to | 4:43:35 | 4:43:40 | |
connect 3 million new premises with
full fibre. I congratulate the board | 4:43:40 | 4:43:46 | |
of talk talk on that decision. The
Government has a number of measures | 4:43:46 | 4:43:51 | |
to support full fibre roll-out, the
local network programme has six | 4:43:51 | 4:43:58 | |
we've one projects underway and beds
for a wave to wear received on | 4:43:58 | 4:44:02 | |
January 26 of this year. We expect
to announce the successful week to | 4:44:02 | 4:44:06 | |
projects in March, and in line with
our manifesto commitment we will | 4:44:06 | 4:44:12 | |
make fuller fibre connection
vouchers available for companies | 4:44:12 | 4:44:16 | |
across the country in 2018. The
digital infrastructure investment | 4:44:16 | 4:44:22 | |
fund is now in place, to provide 400
million of investment capital is | 4:44:22 | 4:44:32 | |
alongside private capital for new
expanding providers of five | 4:44:32 | 4:44:35 | |
broadband. Our barrier busting task
force is also now established and | 4:44:35 | 4:44:42 | |
tackling the barriers to fibre
roll-out across the UK. We are | 4:44:42 | 4:44:48 | |
introducing a five-year release from
business rates in England for new | 4:44:48 | 4:44:51 | |
fibre infrastructure. We are making
progress in providing rural | 4:44:51 | 4:44:59 | |
broadband coverage, but we recognise
there is much still to do to finish | 4:44:59 | 4:45:03 | |
the job and it is our intention to
do that fairly. We will be pushing | 4:45:03 | 4:45:08 | |
hard on a full fibre coverage and I
welcome the continued interest and | 4:45:08 | 4:45:12 | |
support from members of this House
and the expertise as well, | 4:45:12 | 4:45:17 | |
particularly that of my right
honourable friend, as I continue to | 4:45:17 | 4:45:21 | |
drive this work and ensure we
deliver against our goals. The | 4:45:21 | 4:45:27 | |
question is that this house do now
adjourned. As many of that opinion | 4:45:27 | 4:45:33 | |
say aye. The ayes habit. Order,
order. | 4:45:33 | 4:45:45 |