5.9 pm
Mr Bailey: Perhaps I had better start by saying that I am the Member for West Bromwich West, not West Bromwich Albion. Representing, as I do, a constituency that is evenly divided between West Bromwich Albion supporters and Wolverhampton Wanderers supporters, I am always anxious to demonstrate that my football loyalty resides with Cheltenham Town football club. I am a season ticket holder there and a member of the supporters’ trust.
This has been a good debate. There has been some political partisanship, but that is good, and it is probably good for the co-operative movement that the Government are being put on their political mettle to demonstrate their level of commitment. It struck me that it would have been almost impossible to have this debate 10 years ago, because the movement had not then demonstrated how important it is, not just to the economy but to the development of policies relevant to each of the party’s
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political platform. I ought to mention that that is demonstrated pictorially, and effectively in the Co-operatives UK report “The UK co-operative economy 2011: Britain’s return to co-operation”. If Members have not read it, I recommend that they do so. It is a succinct and easy-to-read document, just right for Members of Parliament, and it graphically and effectively demonstrates the range of co-operatives, their impact and their potential.
Turning to the issues raised, credit unions were mentioned a lot. We will wait with bated breath for the legislative reform order, but it is good that the Government have at least recognised the issue and are prepared to take action to advance that agenda. It has always been a source of amazement to me that credit unions, so powerful in a number of countries that are not regarded as cradles of co-operation, do not seem to have taken off in this country. There is enormous potential for a Government to provide the right legislative background for them to do so, and I welcome that.
There was a fairly sharp political exchange on Northern Rock. From my perspective, there is definitely a feeling in the financial press and elsewhere that the option of any form of mutual ownership has been closed. The Minister says that the door is open and that mutuals still have the opportunity to bid. However, I get the feeling that the conventional Treasury-backed wisdom is that that is not appropriate. My right hon. Friend the Member for Cardiff South and Penarth (Alun Michael) made a point about Treasury thinking.
The Minister commented on the previous Government’s record on de-mutualisation. I cannot remember exactly which building society de-mutualised when, but I know that when Labour first came to office, co-operators found it difficult to get the Treasury and Whitehall to understand what made mutual organisations and co-operatives different and what potential they had. Numerous battles were fought to obtain that recognition, some of them through the passage of private Members’ Bills; my hon. Friend the Member for Harrow West (Mr Thomas) piloted one of them. Over time, we were
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successful. I do not say that we have won every battle, or that there are not battles still to be fought, but we undoubtedly gained much greater recognition of that difference and the importance of the model within the range of financial services. We need reassurance that that opportunity still exists. If it is rejected, we need the reasons for the rejection to be clearly stated and understandable by the co-op movement.
Several other issues were raised, including that of the Post Office. My hon. Friend the Member for Harrow West said that we are happy that the model is being considered for Post Office, but given the interdependence of Royal Mail and Post Office, the right business relationship between them is needed so that a co-operatively or mutually run Post Office is not undermined. It would be disastrous to the movement for an organisation of the sheer scale and public standing of Post Office to be made into a mutual in such a way that the financial model undermined it and it was not successful. That could put back the cause of mutuality and co-operation for many years.
My last point concerns an issue on which there was a lively exchange—Conservative co-operators, whom I welcome. It is a reflection of the success of the movement that so many politicians are now willing to jump on that bandwagon. However, some of us were co-operators through the difficult days of the ’70s and ’80s and have brought our battle scars into Parliament with us. The commitment and capacity of Conservatives to claim co-operative credentials will be judged only when they can demonstrate what they have delivered during this Parliament. Co-operators such as my hon. Friend the Member for Harrow West can do so, having piloted a co-operative Bill through the Commons. A range of changes were made as a result of pressure applied by Co-operative Members of Parliament. We in the Opposition are looking at Conservative and Liberal Democrat Members to see whether they can do the same with their Government.