(8 years ago)
Commons ChamberI am going to make some more progress.
The Social Mobility Commission talked about treadmill families, who are running fast but are stuck in the same place, and who are working hard but do not have anything to show for it at the end of the week. Childcare and early years intervention will do far more to address those problems than would a focus on new academic selection at age 11. Yet we have seen the closure of more than 800 Sure Start centres since 2010, the loss of around 45,000 childcare places and the closure of 1,000 childcare providers in the last five years.
There are similar challenges facing our existing schools. The Institute for Fiscal Studies has shown that our schools are facing the first real-terms cuts to their budgets in nearly two decades, just as demand for school places is growing. We already know the consequences: more staff leaving, more schools in disrepair and more courses being cut. The Department for Education has missed its teacher training targets for four years in a row, while more experienced teachers are leaving the profession in record numbers and half a million pupils are being taught in super-sized classes. It should be our mission to provide an excellent education for all children, and we know what is needed to provide that: high-quality early years education, and the best heads and teachers teaching the right curriculum to manageable classes in decent school buildings, with high standards and good behaviour.
Let me say to the Education Secretary and all Government Members that if they take serious action to make the changes our education system needs, I will be the first to support them, because education policy should not be about ideological dogma, but about looking at all the evidence and pursuing policies that will improve the lives of all children.
Does the hon. Lady agree that the academy programme has delivered considerable success? Will she give it her unequivocal support, and will she condemn the members of the National Union of Teachers who picketed the Kimberley School in my constituency when it had the temerity to break free of the local authority and establish an excellent academy?
Education—I hope we can agree on this—is not about the vehicle, but about the drivers. Focusing on the vehicle does not deal with the fundamental issues of collaboration, leadership and good teaching in our school system.
Courtaulds is very much part of that supply chain and, as I mentioned in my statement, this is not just about the workers at BHS. Of course, it is a dreadful moment for those individuals and their families when they lose their job, but there is also huge concern right the way through the supply chain. As an east midlands MP, I am of course familiar with Courtaulds. It is a great company, and, like my hon. Friend, I am concerned about its demise. I take this matter very seriously. I do not know whether someone in my Department has already offered to meet her to discuss these matters, but I am more than happy to meet her to ensure that the best is now done by Courtaulds.
We must never forget that pensions are deferred wages for people who have worked hard all their lives. The Pension Protection Fund was set up under a Labour Government, and it plays a vital role in protecting workers and pensioners when an employer goes out of business. Will the Minister join me in sending a clear message from this House that the pensions regulator has our full support in being as robust as possible on this matter? We must also look to the proposed pensions Bill to close any loopholes and deal with any scapegoats that exist as a result of the current regulations. We need to make those regulations much firmer so that people can no longer get away with any wrongdoing when it comes to wages.
The hon. Lady makes a good point. When people reach retirement, they look forward to receiving the pension they have paid into. They have put their money into their pension on trust, and they expect a certain benefit to come back to them when they retire because they have already paid into it. We all know that there are a lot of problems with a lot of our big pension schemes, but it is imperative that all employers do the right thing by those schemes. I absolutely pay tribute to the Labour Government for setting up the Pension Protection Fund. We are not content, in that it cannot always deliver what people would have had if their schemes had been successful, but it is nevertheless an extremely good lifeboat when pension schemes unfortunately fail. As I have said, an investigation is taking place and there are no doubt lessons to be learned.
I always try to give a straight answer to a good, straight question, but I simply do not know the answer to my hon. Friend’s question. I undertake to make full inquiries to answer it. I will write to my hon. Friend, and if any other hon. Members would like to see a copy of my letter, I am more than happy to share it with them, including the hon. Member for Wallasey (Ms Eagle).
I, too, would be happy to receive of copy of that letter. I associate myself with the comments of others about the conduct of Philip Green, and I welcome the Minister’s comments about the investigation by the pensions regulator. Just over a week ago, the pensions regulator had the corporate plan and published it, referring to austerity/efficiency cuts within it. Will the Minister reassure me that there will be a robust approach and that the pensions regulator will have enough resources to produce a timely response to ensure that this does not happen to anyone else?
There will be a robust investigation, and I have full confidence in the regulator.
I congratulate the right hon. Member for Doncaster North (Edward Miliband) on securing the debate. I also pay tribute to all the men who have served at Hatfield and who now face the end of that work, and to their families. I say “served” because there is a service in the working of coal, especially when it takes place underground in a deep pit.
I absolutely understand about the age of those men, and, as the right hon. Gentleman knows, I understand—perhaps better than many Members, including those on the Opposition Benches—the effects of coalmining, and of the closure of a mine, on a community. I was brought up in Worksop, next door to Manton colliery, and I went to the comprehensive school that served the Manton estate. Because of my background, I fully understand the huge sacrifices made by men when they work underground. I will be frank: they are indeed lions, often led by donkeys in my experience.
I have never understood, however, why there has been such an over-sentimental attachment to working underground in, often, the most appalling conditions. As a girl, I was never allowed underground, but at Manton we built a coalface on the top: we could all visit, and see the photographs and understand the experience of men who were stripped to the waist and often worked squatting for long shifts in the most appalling conditions, as these men will have undoubtedly done at some stage in their lives. It is indeed darned hard work and it is a service.
I want to make it absolutely clear, however, that the right hon. Gentleman is effectively saying that millions of pounds of taxpayers’ money should now go, and continue to go, to keep open this mine until next August even though, unfortunately, it has failed to secure a single contract, despite all the hard work and efforts of its board and the will and determination of all those involved in the pit.
My right hon. Friend the Member for Doncaster North (Edward Miliband) talked about the economic benefits of keeping the mine open at the moment. The Minister’s earlier rhetoric was really positive, but what comes out of this same old Tory Government are ideological attacks on the miners. When will the Government give them a break and give them what they deserve?
I am afraid I am going to treat that contribution with the contempt it deserves and will continue with my speech.
We have made a commitment, and this is what we have done. In May 2015 the Government announced we had agreed to provide Hatfield with a longer-term repayable grant of up to £20 million to enable the colliery to continue operating until its planned and agreed closure in August of next year. This funding is state aid which has been approved by the European Commission. Further funding would require further state aid approval.
Last week the directors of Hatfield Colliery Partnership Ltd told my officials they had been unable to secure sufficient customers for their coal, thus calling into question the viability of the original closure plan. Since being advised of this position, the Government have done all we can to assist the directors of Hatfield, including reiterating our earlier commitment to provide up to £20 million to help the company achieve an orderly and safe closure, and accepting that this funding is, in the light of developments, now unlikely to be repaid. Despite this, the directors concluded it was not economically viable to continue mining and so took the decision to stop coal production on 30 June. It was their decision.
To understand the cessation of mining at Hatfield, it is important—[Interruption.] No, we did not pull the plug on it; absolutely not. We said we would give £20 million. We will continue to give up to £20 million. The decision was taken by the directors because they failed to secure the contract. This is the history, which I hope the hon. Member for Hemsworth (Jon Trickett) will listen to.
Hatfield’s difficulties go back some time. I believe it closed in 2001 and 2004. Most recently it entered administration in 2010—[Interruption.] If the hon. Member for Ashton-under-Lyne (Angela Rayner) continues to mutter in the way she is doing, I will take great exception, especially if she makes sexist comments.
And no, I will not give way. I have already heard what the hon. Lady has to say.
Hatfield was restructured at the end of 2013,and in September 2014 had to secure a £4 million loan from the NUM to allow mining to continue. Owing to the continued deterioration in world coal prices, together with production issues, the NUM funding was fully utilised by November, so all that money had already been spent.
Unable to secure further funding elsewhere, Hatfield approached the Government in November of last year to request funding. In January of this year, the Government provided Hatfield with a short-term commercial bridging loan of £8 million. The intention was to provide time for the Government to consider options for longer-term financial support, which would allow mining to continue at Hatfield until 2016.
In undertaking the due diligence, and owing to changing conditions in the coal markets, it became clear that Hatfield would require funding in excess of the initial £8 million bridging loan and that longer-term support could not be delivered commercially. The Government worked extensively with the company directors and the European Commission to facilitate further support, and approval for state aid was quickly agreed with the Commission. I know that the right hon. Member for Doncaster North has paid tribute privately to, and I know he will join me in thanking publicly, all the officials in my Department for the really hard work that they put in to secure that arrangement.
It has been suggested that the Government could have provided Hatfield with additional support in the light of possible offers to buy Hatfield coal which might have kept the mine open until August 2016. The directors’ managed closure plan had assumed that replacement contracts, from June this year onwards, would be secured for all Hatfield’s coal output at pricing similar to what had been achieved before. I am aware that there was a possible offer—I have seen the email—from one company for about 50% of Hatfield’s coal output, in addition to other possible commitments and bridging loans. Those offers were at a significantly lower price than the previous contracts that were being replaced. That level of interest was deemed insufficient by the directors—it was they who made the decision—to support the planned closure through to August 2016, and, as we know, no contract was even drafted, even less signed.