Oral Answers to Questions

Debate between Lord Sharma and Mark Pawsey

Wednesday 15th June 2022 Commons Chamber

[Mark Pawsey (Rugby) (Con)]

7. What progress he made at COP26 on supporting the transition to zero emission vehicles.

[The COP26 President (Alok Sharma)]

At COP26, the UK presidency launched the zero emission vehicles declaration. Over 140 parties, including Governments, vehicle manufacturers and businesses, committed to working together towards ensuring that all new car sales are zero emission by 2035 in leading car markets and by 2040 globally. We continue to gather signatories.

[Mark Pawsey]

The move from internal combustion to electric vehicles will only be successful with good access to infrastructure, but policy on parking at public charging stations rests with local authorities. Does the COP26 President agree that that should be restricted to electric vehicles, and will he join me in regretting that this is not currently the case in Warwickshire?

[Alok Sharma]

As my hon. Friend points out, parking policy enforcement is devolved to local authorities. He certainly makes an interesting point and I encourage him to raise it with the Department for Transport. Local authorities can, under a traffic regulation order under the Road Traffic Regulation Act 1984, implement parking restrictions, for example dedicated electric vehicle bays.

[Alok Sharma]

The hon. Gentleman makes an interesting point. Perhaps I can write to him or get a fellow Minister to do so on this issue.

[Mark Pawsey (Rugby) (Con)]

T1.   If he will make a statement on his departmental responsibilities.

[The COP26 President (Alok Sharma)]

Last month, I co-chaired a ministerial meeting with Egypt’s COP27 President-designate, bringing together almost 50 Governments to discuss progress on the implementation of countries’ COP26 commitments. We discussed the commitments to revisit 2030 emission reduction targets, finance, and work programmes on adaptation, loss and damage. While some progress has been made in turning commitments into action, countries need to significantly accelerate the pace of implementation on the road to COP27.

[Mark Pawsey]

On Friday, I joined the Rugby Green Christian group for a question time event to consider national and local responses to the challenges we face. Does the COP26 President agree that those discussions are essential to building local support for the measures the Government are taking?

[Alok Sharma]

I commend my hon. Friend for the work he is doing in this area and he is absolutely right. We can all play a part in tackling climate change. It is vital that we do so to make not only the environmental case but the very positive economic case for climate action.

Corporate Insolvency and Governance Bill

Debate between Lord Sharma and Mark Pawsey

2nd reading & 2nd reading: House of Commons
Wednesday 3rd June 2020 Commons Chamber

[Alok Sharma]

Of course, that is part of the measures that we will bring in. I recognise why my hon. Friend wants to ensure that tenants have protection, and that is why we will introduce the temporary measures around this issue, but of course we also need to think about landlords. I will address that point as I go through my speech.

Returning to the moratorium, the time-limited easing of the eligibility criteria for a company to enter a moratorium, to make that more accessible during the covid-19 response period, will be in place for a month after Royal Assent. Of course, that can be extended if it is deemed necessary.

The second part of the new permanent restructuring measures will allow companies in financial difficulty to propose a rescue plan to restructure complex debt arrangements, and to bind creditors to it, as long as certain thresholds are met. That means that viable companies struggling with debt obligations will be able to restructure under the new procedure.

There are, however, significant safeguards and protections for creditors, which is right and proper. The plan must be sanctioned by the court and, indeed, any dissenting creditor class bound to a plan must not be made worse off than it would have been in the next most likely outcome. I know that a number of colleagues, both in the House and outside, have raised this issue. That is why we have ensured that this measure is in place.

The third part of the restructuring package will prohibit termination clauses. That will prevent suppliers from terminating contracts or raising prices just because a company has entered an insolvency procedure or a moratorium. Of course, we recognise that requiring companies to supply under those circumstances may cause them financial difficulties, so we have built in a number of protections for suppliers too.

If continuing supply would cause a supplier hardship, it can apply to the court for permission to terminate the contract. In addition, if goods or services supplied after the insolvency begins are not paid for, the supplier can terminate the contract. Further, the Government will temporarily exempt small suppliers from this requirement altogether during the covid-19 crisis, recognising the particular challenges that those firms face.

[Mark Pawsey (Rugby) (Con)]

Small businesses often find themselves dictated to by larger organisations, and the last thing we want is for small businesses to be put at a disadvantage by being compelled to supply when they are not capable or it is not in their interest to do so. Will the Secretary State reassure us that small businesses in particular will be protected by these provisions?

[Alok Sharma]

My hon. Friend raises a really important point about protecting small suppliers. They will of course have this exemption. According to the definition in the Companies Act 2006, a small supplier is one that meets two of the following three criteria: having up to 50 employees, a turnover of up to £10.2 million, and gross assets of up to £5.1 million. I think that will cover a very large number of businesses in our country.