In one of his final interviews before retiring from Westminster, John Greenway MP took time with Owain Thomas to issue a few parting shots and reminisce about two decades combining politics and insurance
John Greenway did not slip away quietly after almost two decades as chair of the All Party Parliamentary Insurance and Financial Services Committee. The departing Conservative MP for Ryedale set Labour policy and the FSA firmly in his sights as he let fly with both barrels.
In particular, Greenway attacked the regulation of financial services, explaining his belief that a complete overhaul is necessary. He argues the regulator’s reputation has been indelibly stained, along with that of the banking sector.
“The FSA has to be reformed in one way or another,” he says. “There needs to be a fresh look at what this regulatory framework is for as people felt let down by the regulator (during the banking crisis), so we have got to get a grip of what regulation is fair.
“We had this huge bank fail which the public see as a mess, and I believe we have to return banking back to the Bank of England.
“The public view isn’t just tarnished in terms of the banks, they actually have the same view as the regulator. They want to know that if they give their money to an institution it’s safe (from a bank failure), and that the institution in which they put their money in is sound financially,” he adds.
As chairman of the body which sought to provide a voice between Parliament and the insurance industry, Greenway thinks this group has helped him identify how to solve those regulatory problems. “There was too much centering on potential individual consumer detriment and not enough on the big picture,” he says.
“We need a stronger consumer-wide focus, that’s what’s missing, and I can sense that through the group.
“There’s understanding that the relationship with consumers has to improve, and we’ve been working very strongly towards it being the claims experience that is being sold, treating the claims as the product.
“We want a stronger consumer ethos (based on making claims) and if we had that we may have avoided the Payment Protection Insurance (PPI) scandal growing as big as it did, which saw people clearly being ripped off,” he adds.
Crazy plans
This consumer-centric ideal clearly is something the ex-insurance broker feels is missing from Labour proposals to re-mutualise Northern Rock, a plan he brands as ‘crazy’.
He believes the Government’s manifesto plan to re-mutualise the state-owned bank before yet another expected de-mutualisation would be a mistake and a further kick in the teeth for its shareholders.
“If you are a Northern Rock shareholder you’re feeling pretty down now, and its crazy that the Government wants to do the same thing again” he says.
Greenway will be leaving Parliament along with a host of others on 6 May, but in speaking with him, his tone portrays that he may now see his departure as a blessing, rather than the disappointment it so obviously was when announced back in 2006.
Having represented his Yorkshire constituency since 1987, the decision to stand down was thrust upon him due to boundary changes and local Conservative party differences.
But it is obvious that he will miss working with the all party committee, as he enthusiastically talks about some of the group’s achievements during his time.
“I think we have shown the value of the industry having a group of people who understand it and who are listened to by ministers,” Greenway explains.
“All the way through my time with the group we have had huge sea changes in the sector.
“We have been a good sounding board and been able to say to the industry that what it’s doing is not good enough.
“We have also been more positive and effective in bringing out into the open other areas of concerns of the industry, suggesting to Government where its policies will work and where Parliament needs to think again.
“Historically, of all our achievements, I think to persuade Michael Heseltine to form Pool Re after the 1992 election when no-one else was going to provide re-insurance for terrorist attacks, is perhaps the most important.
“That hasn’t cost a penny of tax payer’s money,” he adds.
Greenway is not concerned about the loss of experienced MPs, such has himself, from the house, suggesting that it is time for a change.
“I think it’s been a dreadful year for Parliament,” he says. “We, as MPs, will never convince the public that we’re not all reprobates, but the whole structure just was not capable of withstanding this level of scrutiny which is needed.
“But Parliament only has itself to blame, the other House (of Lords) is where we get serious democratic debate.
“The House of Commons has all the power it needs, but just doesn’t use it because all the MPs are scared witless of the whips,” he adds.
And as for the election, Greenway believes a hung parliament would be unfortunate for the country, and merely result in a further vote a year down the line.
Whatever the outcome, for the first time in 23 years, Greenway will find himself sitting on the outside, looking in.
