P&O Ferries
Debate between Baroness Bloomfield of Hinton Waldrist and Lord Sikka(2 years, 9 months ago)
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Lord Sikka
To ask Her Majesty’s Government what plans they have to appoint an independent inquiry to investigate the business practices of P&O Ferries and its parent company.
Baroness Bloomfield of Hinton Waldrist (Con)
My Lords, the Government have condemned the appalling way that P&O Ferries has treated its staff. These loyal employees have been working tirelessly to keep our country supplied with essential goods, particularly through the pandemic. We wrote to P&O Ferries seeking information on the decisions it took, to determine whether it had breached UK employment law. We are carefully considering its reply, which the Secretary of State and BEIS have just received. If the rules have been broken, we will not hesitate to take further action.
Lord Sikka (Lab)
My Lords, let us look at the facts. P&O has abused the employment rights of its workers. It took public money while its parent company paid £270 million in dividends. Its UK operating profits are almost wiped out by unexplained administrative expenses. The company is engaged in profit shifting and pays little or no corporation tax. Its 2020 accounts show a pension deficit of £95 million. Any responsible Government would immediately investigate P&O’s abuses. Can the Minister explain why this Government have not begun an independent inquiry?
Baroness Bloomfield of Hinton Waldrist (Con)
We are taking a number of steps. We are engaged with the Insolvency Service regarding the steps P&O Ferries took in this whole restructuring and redundancy exercise. The £15 million received by P&O was part of the furlough scheme and therefore to the benefit of the employees rather than the company. I know that P&O will still be accountable for the deficit in the pension contribution to the Merchant Navy Ratings Pension Fund. The Government are working very hard in a fast-moving situation to get answers to all those questions and to take the appropriate action.
Arcadia and Debenhams: Business Support and Job Retention
Debate between Baroness Bloomfield of Hinton Waldrist and Lord Sikka
Baroness Bloomfield of Hinton Waldrist (Con)
My Lords, it is right that all businesses make a contribution to maintaining the roads, buses and emptying bins—all things on which their customers rely—but the noble Lord asks a good question about the difficulties of following a green agenda and discouraging car use for out-of-town shopping centres. We need the whole system to be fair, which is why we will deliver a fundamental review of the whole business rates system. This will build on the changes we are making, which are worth over £23 billion to businesses over the next five years, and will take nearly half of all businesses in England out of paying any business rates at all. We have committed to small businesses by increasing the retail discount to 50% and, due to Covid-19, we have gone further and increased it to 100%.
Lord Sikka (Lab) [V]
My Lords, if Arcadia and Debenhams had worker-elected directors, they would have enriched the corporate governance at both companies. At Arcadia, they would have sought early resolution of the pension scheme deficit, and at Debenhams, they would have expressed concern about the overload of debt market equity owners. Their insights would have resulted in better outcomes for all concerned. Will the Government now follow many other European countries and legislate to create worker-elected directors for all large companies?
Baroness Bloomfield of Hinton Waldrist (Con)
I cannot comment on the Government’s intentions or otherwise to create worker-directed representation on company boards, but the audit trail of Arcadia is quite clear. The auditor’s report was clear that there was a material uncertainty about the group’s ability to continue as a going concern. It also failed to publish its 2019 accounts this August. Late filing of accounts attracts an automatic penalty fine and is an alert. As to whether there need to be specific investigations of directors, the administrators have a duty to report within three months of the insolvency on the conduct of the company’s current and former directors.