Nick Smith
MP for Blaenau Gwent and Rhymney · Labour · United Kingdom
“This summer, wildfires raged across south Wales and other parts of the UK. On one day alone, our emergency services received 1,000 telephone calls. Our South Wales fire and rescue service worked tirelessly alongside firefighters from across the UK.”
“The House of Commons Administration provides a variety of training for Members and their staff to help them respond to domestic and sexual abuse casework, which includes a day-long training course on dealing with cases of domestic abuse, human resources sessions on domestic abuse awareness and an e-learning module on safeguarding.”
“I thank my hon. Friend for raising this important topic, and it is great that she has good local services. I have already outlined the training and guidance we currently have on offer. The Commission is keen to ensure that Members are well supported in this area and is open to suggestions to develop the training offer.”
“Although it is a civil matter, where a jury trial cannot apply, yesterday we found out that Virgin Media has been fined a record £28 million for ripping off its customers, yet the chief executive appears to be getting off scot-free.”
“Many of us remain frustrated by delays to Royal Mail postal deliveries. My constituent Anthony Barnes was removed from a treatment waiting list on three occasions because hospital communications did not arrive in time.”
“I welcome the Government’s ongoing commitment to supporting our veterans and delivering fairness for them. Can we please have a statement from the Veterans Minister on reducing processing times for war pension scheme claims? My constituent Denzil Hancock, an 88-year-old nuclear test veteran, continues to await a decision.”
The complete record
Every one of 600 lines we hold for Nick Smith, in date order, each linked to its source. Free to read, in full, without an account. Page 11 of 12.
“I congratulate the Minister on his role, and say “Well done” for travelling around Wales and hearing people’s concerns about the future. When will the consultation on the shared prosperity fund begin?”
“The Minister seems reluctant to give us a date for when exactly the consultation will begin, but does he agree that it should begin, and finish, before the comprehensive spending review is delivered?”
“British Steel workers will be glad that the Government have stepped in here, but in Wales 9,000 jobs rely on this whole sector, and many workers and their families in south Wales will be troubled by the wider situation. Can the Secretary of State please confirm whether the new fleet solid support ships will be built with UK steel?”
“Some 9,000 people work in the Welsh steel industry, so can I ask the Secretary of State to think again, and support a permanent customs union and commit to a common external tariff on steel imports to support steel jobs in south Wales?”
“Our security services say that this is the first ever leak from the National Security Council. May I press the Secretary of State to tell us whether there will be a criminal investigation?”
“Millions of people are not on the electoral register. There is anecdotal evidence that providing the necessary national insurance information could be part of the problem, especially for young people. May we have a statement about the sharing of data between public agencies to increase voter registration and help to boost our democracy?”
“I am concerned that many applications to go on the electoral register are being stymied for administrative reasons, such as the lack of a national insurance number. May we have a statement from the Cabinet Office containing an estimate of the number of uncompleted voter registration applications, and stating what the Government are doing to overcome such hurdles so that we can boost electoral registration?”
“I called for this debate because of a specific mis-selling crisis that affected hundreds and potentially thousands of people across south Wales in particular. Two years ago, the British Steel pension scheme began to restructure its fund after a difficult period for the industry. Scheme members had a hard deadline to make a critical decision: they could go into a new scheme, be defaulted into a lifeboat fund or transfer out. They had to decide against a backdrop of serious uncertainty about the scheme and the industry. The scheme’s administrators were under enormous pressure, with 4,000 calls a day. Vital information about pension advisers from the Financial Conduct Authority was often highly technical. All that helped to create a perfect storm.”
“I beg to move, That this House has considered pension transfers and the British Steel pension scheme. For many of us, pensions are a distant, complex and opaque topic. Everyone hopes that their pension will provide financial security for their family’s future. It is often the single biggest pot of money that anyone will have, but that makes pension pots ideal targets for mis-selling. Unfortunately, in recent years pensions mis-selling has got worse. Since further pension freedoms were brought in four years ago, it is easier to transfer out of defined-benefit pension schemes. More than 200,000 people have done that, but as transfers have increased, so have the problems. The compensation paid out for poor transfer advice increased to £40 million last year.”
“To deal with that possibility, the FCA now needs to set out a clear programme of how it will identify the steelworkers affected, how it will let them know and what practical support it will provide to help to get them through this process.”
“Unfortunately, it meant that a safe bet could turn into a bad bet, and a high fee was often part of the deal too. It was the case that 7,800 steelworkers transferred out altogether, of whom 872 had transfers arranged by firms that were eventually ordered—ordered—to stop advising by the FCA. One steelworker lost £200,000. Many others lost tens of thousands of pounds. Many suffered incredible stress and anxiety. I heard yesterday that £1.8 million has been paid out in compensation to steelworkers so far. I emphasise the words “so far”. Because that might not grasp the full scale of the issue, the FCA has now reviewed the files of 2% of the nearly 8,000 steelworkers who transferred out. It found that 58% of the advice was not suitable, which means that the tally of those who lost out could run to several thousands.”
“The advice is there. The difficulty is that for many people it is too technical and complicated; working through it is really very hard. Transfers were talked up, and pension sharks soon began circling around the key steelworking sites across south Wales and the rest of the UK. They were often facilitated by unregulated introducers, through word of mouth. For example, constituents of mine were approached by a rogue financial adviser at their caravan while they were on a family holiday. Wider possibilities were common currency: a place in the sun, a conservatory and a deposit for a son’s or daughter’s new home were all said to be within reach. The pension changes meant that it was easier to transfer from a stable fund into investments that were far riskier, on the promise of better returns.”
“My hon. Friend makes a really good point. The FCA is a large organisation based in London. I believe it does not have sufficient resources to help consumers on the ground in places such as Port Talbot or Shotton, or across the country, where pensioners need support at their homes.”
“At the moment, the pension sharks have generally received administrative sanctions only, but I think they need to face serious penalties. Will the Minister scrutinise the effectiveness of the FCA’s enforcement regime? Steelworkers say the FCA needs to impose heavy financial penalties on bad financial advisers. I think it needs to employ its powers much more often, as it seems this has not been done sufficiently.”
“My right hon. Friend gets to the nub of the situation. Who does one trust when one has a pot of gold and people want access to it? He poses a really important question. The FCA has got to help our steelworker pensioners and their families. It can be argued that this was a unique situation, but many of the underlying problems that allowed it to happen are still there. Rogue financial advisers do not face sufficiently tough consequences from the regulators. The FCA’s register has been improved, but consumer information sometimes remains unclear. The support for people who might have been mis-sold pensions is insufficient. I recognise that some steps have been taken to improve co-ordination between regulators. That is welcome, but much more needs to be done.”
“Although BSPS members have been supported by a strong team in Port Talbot, including a financial adviser and a lawyer, there needs to be a single initiative, aimed specifically at people who may have been mis-sold in cases such as BSPS.”
“My hon. Friend makes an important point. Given reports that the FCA is investigating so-called introducers in connection with a major scam, the Government should now ensure that they, too, are regulated. The Treasury has to take action to ensure that financial advisers always have—this comes to my hon. Friend’s point—sufficient insurance to pay out, should they go into administration. Will the Minister ensure that the FCA updates the Treasury on how it is supporting the potentially several thousand steelworkers who might have received poor transfer advice in this instance? The Treasury needs to co-ordinate with the Department for Work and Pensions and other key bodies in order to help victims of mis-selling to access the support they need.”
“They worked hard for decades to earn their pensions, and they expected a secure pot to provide for them and their families. That was put at risk because of the wrongdoing of a few bad actors and a weak response from the regulators. Steelworkers and their families have been let down. The Government and the FCA must improve their act and support those people better. The rogues who ripped off steelworkers and their families must be held to account. If the regulators cannot do that, the police need to step in. We need to make sure that good people see their hard-earned money better protected in future.”
“I ask the Treasury to actively support that proposal and to investigate how many people are currently suffering uncompensated financial losses because of poor advice. We need justice for steelworkers who are ripped off. If the FCA will not do that, local police forces in south Wales need to pursue what appear to be complicated cases of fraud. The crimes are committed locally; the losses are clear and often substantial; and those responsible are identifiable. I call on the police forces across south Wales to open files and thoroughly investigate whether those cases amount to fraud. Criminal investigations have to start. If they do not, I call on the forces to state publicly why not. The financial and emotional toll that this crisis has taken on my constituents and many others has been heavy.”
“Finally, the review suggested that the Pensions Regulator work with BSPS, trustees and trade unions—Community and Unite have been particularly good in south Wales—to select a panel of reliable financial advisers that members can use. Those advisers must be able to deal with the scale of the problem with BSPS and with the insurance needed. Can the Minister explain how the Department is progressing those recommendations and when we can expect the changes to be fully implemented? In his valedictory speech, Mark Neale, the outgoing chief executive of the Financial Services Compensation Scheme, strongly advocated increasing the compensation limit in cases of poor transfer advice. They were powerful remarks, so let us listen to him.”
“My hon. Friend is a champion for miners’ pensions, on which she has done some great work, and I think she is absolutely right. I press the Minister on the Treasury’s response to recommendations that others have made about the crisis. The Rookes review suggested that the FCA needs to look at how it handles advisers who have had regulatory issues in the past. Phoenixing, as it is called, has allowed some advisers to reinvent themselves to sell anew. There must be greater scrutiny to stop rogues re-emerging in the marketplace. The review also suggested that the FCA work with the Treasury and the DWP to use digital channels to help to communicate important information to pensioners and to help them.”
“I want to focus on what the Minister calls the 6%—perhaps nearly 8,000 people—who may have been badly advised in this case. What is he going to do to get the FCA to up its game, contact those people and help them, in case they have been badly advised?”
“In appendix 1, there is a letter from Mick Antoniw AM, who chairs the Constitutional and Legislative Affairs Committee of the National Assembly in Cardiff. The letter is dated 6 February 2019. It points out the “problem that the Welsh Government and the UK Government disagree as to whether State Aid is devolved.” Mr Antoniw states: “The Welsh Government has requested from the UK Government, an explanation of their legal position but there has been no response.” Can the Minister please give us the Government’s legal position on that?”
“Other contributors spoke clearly about these serious issues, and about what needs to be done to help in the future. It is clear that a lot of things went badly wrong, and hard-working people found their life savings put at risk. The problems that have been highlighted today need to be addressed as a matter of urgency so that we do everything we can to prevent this from happening again further down the line. I hope the Minister will see through the changes that are needed, given the problems that we have identified today. We will work with him to do that. Question put and agreed to. Resolved, That this House has considered pension transfers and the British Steel pension scheme.”
“Thank you, Mr Howarth for chairing what has been a productive debate on an important issue. There have been some strong contributions about some of the key problems that steel pensioners have had to work through in the last 18 months or so. In particular, my hon. Friend the Member for Aberavon (Stephen Kinnock) spoke movingly about the human impact on his constituents, who were at the epicentre of these problems. I have seen the impact too, and it has been heartbreaking. My constituency neighbour, my hon. Friend the Member for Torfaen (Nick Thomas-Symonds), emphasised the importance of looking at the possibilities for criminal proceedings. I strongly endorse that point, which needs to be taken on urgently by the South Wales police or the FCA.”
“Mr Antoniw’s letter was dated 6 February, which is now over two months ago. May I press the Minister on when we will get the Government’s legal position? Can she give us a date, please?”
“I think what we heard from the Minister in her intervention on my hon. Friend was that the Government have still not published their legal position on this matter. We have all been effectively waiting for it for two months. Can he try to elicit from the Minister when we are likely to see that legal position made clear?”
“Surely the Minister accepts that, although she may assert what the Government think, it is fair and reasonable for us to ask them to give us the legal explanation for their view. That is all we are asking for, and we should have it.”
“Democracy works best when it is easy to participate. The Government are engaged in voter suppression here, so why can we not have more pilots to help people on to the electoral register?”
“The Government talk about a trading relationship that is “as close as possible” with the EU, but they have repeatedly rejected the best way of securing it, which is a permanent customs union and strong alignment with the single market. Given that 90% of Welsh lamb exports go to the EU, will the Minister listen to Welsh hill farmers and press for the closer economic relationship that they need?”
“Shocking figures today show that life expectancy for women in poorer areas has declined badly under this Government. This shameful inequality in our society is quietly worsening. May we please have an urgent statement outlining concrete action so that everybody can reach a good age, not just the prosperous?”
“British Steel pensioners in Blaenau Gwent have received poor advice, high adviser charges and seen their families’ fortunes put at risk. Being removed from the register and suffering financial penalties is insufficient to deter pension sharks. May we have a statement from the Treasury to promise new criminal charges for rogue financial advisers, so that they are properly held to account?”
“9. What recent discussions he has had with representatives of the business community on the potential effect on the UK economy of leaving the EU without a withdrawal agreement.”
“If we crash out, what will the Minister say to Welsh farmers when they cannot sell their lamb to European markets because they face tariff rates of 46%?”
“I voted for Labour’s Brexit deal, but does the Secretary of State agree with the CBI that a no-deal Brexit will mean “a lost decade, stifling the UK’s potential and leaving us less competitive, productive and prosperous for years to come”?”
“This should include permanent restrictions, financial penalties, and, when necessary, referral to the police for criminal investigation. The crisis that saw many steelworkers see their hard-earned money put at risk should not have happened. On this St David’s Day, we need to work together and sort things out for them.”
“I encourage steelworkers who transferred out to get in touch when that has been set up. Secondly, if the number of people affected is as high as we all fear, there needs to be pressure to make sure that the industry insurers fully honour their obligations. Thirdly, arrangements for compensation need to be looked it. The financial services compensation scheme has reviewed earlier claims and increased the compensation in some cases, and that is positive. However, we also need to look at the rate that is used to calculate this compensation, because that has a big impact on steelworkers and their families. It needs to be as generous as possible so that the steelworkers are not disadvantaged when making claims. Finally, rogue advisers who prey on steelworkers have to face serious consequences.”
“We know that 872 of the steelworkers were advised by firms who were prevented from advising by the Financial Conduct Authority. Now there are real concerns that the final number might be even greater. Since then, the FCA has reviewed the files of 2% of the steelworkers who transferred out. It found that 58% of this advice was not suitable. That could mean that thousands of steelworkers were affected. This is a very serious situation, and it requires a strong and co-ordinated response with much more granular analysis of what occurred. That response should focus on four specific areas. First, steelworkers who transferred out need to make sure that the advice given was appropriate. There are advisers and solicitors who are supporting steelworkers, working on an independent initiative to help them.”
“I congratulate my hon. Friend the Member for Gower (Tonia Antoniazzi) on introducing this debate. May I say how great it has been to acknowledge the contribution of our friend, Paul Flynn? Every week when I go through Newport train station, I remember his dry wit and his friendship. We will miss him greatly. A year and a half ago, steelworkers from across south Wales were hit by a pensions storm. They had a hard deadline to decide on their futures against a backdrop of serious uncertainty for their industry. Then they were aggressively targeted by financial advisers, and about 8,000 of them ended up transferring out of their pension scheme altogether. While the full scale of the problem is not entirely clear, it looks set to be as bad as many feared.”
“17. Domestic violence protection orders give essential support to the victims of domestic abuse. Effective training for police officers on these orders is key, so will the Minister review the funding of the “Domestic Abuse Matters” training course, which is unclear for next year, in order to support the victims of domestic abuse in the future?”
“Will the Secretary of State say how much has already been spent since the NHS no-deal contingency plans were active, and what the overall bill will be?”
“This morning, the Health Secretary said that the NHS is spending £11 million preparing for no deal. In January, this House voted for the Spelman-Dromey amendment to take no deal off the table, so can the Solicitor General explain why the Government are ignoring the will of the Commons by trying to keep no deal on the table, and spending that £11 million unnecessarily?”
“Following on from the previous question, a KPMG survey reports that 64% of businesses say that making tax digital is a good idea but that they need more support. Unsurprisingly, the British Chamber of Commerce has called for a delay until 2020. Does it make a good point?”
“How many companies have been penalised for breaking the rules on the national minimum wage? How many prosecutions have been brought in the last year?”
“The Minister replied to my question by saying that there had been 14 prosecutions since the introduction of the national minimum wage, but that was not the question I asked. I asked how many prosecutions there had been in the last year. Could the Minister clarify that, please?”
“There is still confusion among clinicians and veterans over how the armed forces covenant guarantee of priority treatment for conditions related to the veterans service is applied, so what discussions has the Minister had with the Health Minister in Wales to support our veterans there?”
“T8. Paul Flynn was a funny, generous man, and we will miss him in Gwent.Capita’s performance on Army recruitment has been hopeless. When is the Secretary of State going to sack them?”
“HGV traffic can be dangerous, and the road safety charity Brake says that school crossing patrols are vital, so does the Minister have an estimate of the number of lollipop women and men who have been cut and whether or not that has led to an increase in accidents for children walking to school?”
“I thank my hon. Friend for giving way. She is doing a great job here this evening. Does she agree that we are not disputing the importance of the Government guarantee? It is giving retired miners like my uncles peace of mind that their pensions are secure, and that is really important. The question is whether the Government still need to take a 50% share, more than £3 billion over 25 years, out of the scheme, when they have not made any—any—direct payment into it. Finding the best way of giving former colliers and their families a fairer share of the pension is what has earned our focus tonight, and that is what she is leading on.”
“I understand that the mineworkers’ pension scheme trustees tried to meet the Department before Christmas to talk about the guarantee but have still not heard from the Department about a meeting. Will the Minister pledge this evening to meet the mineworkers’ pension scheme trustees within the next fortnight?”