Consumer Rights Act 2015 (Enforcement) (Amendment) Order 2019
Debate between Baroness Burt of Solihull and Baroness Neville-Rolfe(5 years, 5 months ago)
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Baroness Neville-Rolfe (Con)
My Lords, I support this measure, which will improve the enforcement framework for unsafe consumer products—always a concern of mine because of my background in retail and at the business department. I want to raise two issues. The first is the adequacy of resourcing for trading standards in their important work on product safety. I welcome the new Office for Product Safety & Standards in Birmingham and hope that, through the Minister’s good offices, some of us might be able to visit it on some future occasion. Local authorities are squeezed. I fear that trading standards, which do such an excellent job across the country, do not have the funding they need to tackle product safety and product counterfeiting, which is often a cause of safety incidents in some local authority areas.
The second issue is Whirlpool. I would like an update on the recall of Whirlpool tumble dryers. I am not entirely clear on what this SI adds in the case of electrical white goods, which, as the Minister said, are already regulated, but Whirlpool is mentioned on page 3 of the Explanatory Memorandum and the 10 days of BEIS consultation on the recall are nearly up. What are the Government’s plans in respect of this matter and, even more importantly, of future enforcement of product safety more broadly? What are the criteria for recalls and speed of response, which in the case of Whirlpool has sadly been very slow—I think nearly four years, although I must commend current Ministers for moving ahead on that. Can the Minister clarify the numbers involved? I understand from Which? that the recall will involve 300,000 to 500,000 dryers, which is a fall of about 500,000 in the department’s estimate of the number of unmodified dryers since last year. Yet only some 50,000 have been modified since then, so I do not see how the numbers add up. Can the Minister also kindly advise—in writing if need be, because I appreciate that these are detailed questions—on the number of modified dryers that have caught fire, and on why the Government are comfortable, as stated in Parliament on 17 June, that they are low risk. I hope for all our sakes that this judgment is correct. We should give the owners of modified dryers further comfort if that is possible.
Baroness Burt of Solihull (LD)
My Lords, I thank the Minister for his explanation of how the investigatory powers of consumer law enforcers will be consolidated and simplified through this statutory instrument. It seems that these measures are needed in the face of mounting consumer concerns over the safety of the products that we buy.
It seems eminently sensible for the Secretary of State, or the Office for Product Safety & Standards on his behalf, to be able to investigate claims about unsafe consumer products falling within the ambit of the General Product Safety Regulations.
Sharing Economy
Debate between Baroness Burt of Solihull and Baroness Neville-Rolfe(8 years, 2 months ago)
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Baroness Neville-Rolfe
As the new Energy Minister, I have been struck by the range of opportunities in energy. On nuclear, we have made the decision to go ahead with Hinkley and a potential whole new generation of nuclear power stations. We are looking at all these other areas and we have innovation expenditure. We will be sharing our thoughts further in due course—for example, in the context of the contract for difference decisions that are due in the coming weeks.
Baroness Burt of Solihull (LD)
In her Answer, the Minister claimed that the Government are protecting our global position as a world leader in innovation and growth. Could she then explain why, in the race for Brexit, they are shutting the door on the very global talent that we need—particularly for tech start-ups—to come to this country from Europe and the rest of the world?
Baroness Neville-Rolfe
The noble Baroness is right that skills—especially digital skills—are important to our economy. We are extremely aware of that, including in the context of the Brexit discussions. I am sure she knows about all that we have done to ensure that we can get diverse digital skills from abroad, where that is appropriate, and to develop digital skills here in the UK, both through lifelong learning education and, more importantly, in schools, with computing now being part of the curriculum from five to 16.
Employment: Remuneration
Debate between Baroness Burt of Solihull and Baroness Neville-Rolfe(8 years, 3 months ago)
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Baroness Neville-Rolfe
My noble friend makes a very good point about voting. I am glad to say that one of the options we will be looking at is binding votes, for the reasons that he says.
Baroness Burt of Solihull (LD)
My Lords, it seems to me that the problem is that companies benchmark their executive pay against other companies in the marketplace. Does the Minister agree that a more diverse range of company models in the marketplace, such as mutuals where workers are also shareholders, would bring a greater sense of proportion to executive pay and have a stabilising effect on pay in the marketplace generally?
Baroness Neville-Rolfe
The noble Baroness is right that there is a place for comparisons, although, as somebody who sat on a number of boards, I actually think that one needs to look at the overall position and in relation to the wider workforce. That is something that we will certainly look at as part of the consultation that we will publish, because some of this stuff is complicated and we need to make sure that we talk to people on the detail.
Consumer Protection: Online Ticketing
Debate between Baroness Burt of Solihull and Baroness Neville-Rolfe
Baroness Neville-Rolfe
I thank my noble friend for all he has done to make this legislation exist and Professor Waterson’s report to be tabled. We have certainly taken note of his recommendation that the primary and secondary ticketing markets should act, on a voluntary basis, on the issues that the professor has identified. I look forward to that being pushed forward. Clearly, we should try to ensure that these changes happen, because it is in the markets’ interest that they act before we look to legislate further.
Baroness Burt of Solihull (LD)
My Lords, it is clear that the online secondary ticketing industry is making a fat profit out of fans desperate to see their favourite entertainments. I am glad that the Government have announced a compliance review following Waterson. However, will the Minister ensure that trading standards is mandated and directed to enforce the law as it stands right now, otherwise what is the point of passing legislation such as the Consumer Rights Act in your Lordships’ House if it will be ignored and flouted?
Baroness Neville-Rolfe
The Government will of course consult the enforcement bodies, including trading standards, before we publish our response. We are in discussion with them now. The noble Baroness makes some good points, but of course the internet has fundamentally challenged the ticketing environment. Professor Waterson himself said:
“Britain may be an island, but it is not an internet island”.
We have to recognise that and look forward.
BHS
Debate between Baroness Burt of Solihull and Baroness Neville-Rolfe
Baroness Burt of Solihull (LD)
I, too, thank the Minister for repeating the Statement. Our thoughts are with the staff and their families. We welcome the support that has been given and the Government’s ongoing investigations. The Labour spokesperson has just commented on the position of creditors, which has irked me for some time. However, the Government’s complacency and short-term approach is very concerning. Eight thousand jobs have been lost and there are 3,000 in the supply chain. However, the Statement says that,
“the retail sector as a whole is resilient”.
What does the Minister make of the British Retail Consortium’s forecast that 900,000 retail jobs will be lost by 2025? We need a retail strategy, just as we need a manufacturing strategy. Why do the Government wait for disaster to strike? We have seen it three times now, with British steel, Austin Reed and British Home Stores. The people affected need to be retrained to do different jobs. They need lifelong learning and continuous professional development as part of a working life they enjoy and in which they can take pride. If we had a retail strategy, we could look at making the high street a destination of choice—somewhere that people want to visit as well as being able to order goods online. However, at the end of the day, if you lose your job to a computer, you had better learn how to programme one.
Baroness Neville-Rolfe
I agree with the noble Lord, Lord Mendelsohn, that this is a very important matter. As he said, we face the potential loss of 11,000 jobs, some of which are in the supply chain.
In answer to the noble Baroness, Lady Burt of Solihull, the retail sector, of which I used to be a member, does have a certain resilience. The Statement rightly referred to the way it has come back from the recession. With Woolworths—and I was a retailer then, not a government Minister—we found that other retailers were quick to buy the properties and adapt them to new uses. We found some of our best people from ex-Woolworths staff. I hope that the Jobcentre Plus process, which I will come on to describe, will be able to build on things in a similar way. Everything is difficult but the high street is changing, as are consumers. In our towns and cities, we need to think about that and about what other sources of employment and customer pleasure can come through. That will, of course, include things such as restaurants and catering as well as retail, and online stores as well as conventional shops.
Our approach involves the regulatory framework, and I will start with pensions. The pensions legislation was strengthened by the previous Labour Government in 2005 with anti-avoidance provisions. There are provisions for dawn raids and the regulator has strong powers. Trustees have quite strong powers, too, but I think they are always a little worried about precipitating insolvency if they move ahead too fast. As the noble Lord, Lord Mendelsohn, said, this is not an easy area, but the Insolvency Service is undertaking an investigation and I will come back to that. The Pensions Regulator is engaged and we look forward to its report. I am sure we will be looking to make sure that trustees and regulators have the right powers in future. In the new world of lower interest rates, which the noble Lord rightly described, things are obviously much more difficult.
We are worried about this case, but it is different from steel, which was a whole sector facing unparalleled pressure. I take the point that retail is facing pressure, but I do not think it is on quite the same scale and it is not so concentrated in particular communities. It is tough for those whose jobs in town centres are lost when BHS closes but, as I said, I am hoping that, with the help of Jobcentre Plus, we can ensure that people either get jobs using their experience and training or get the opportunity to retrain. Jobcentre Plus is on standby and in contact with the administrator to plan the support. The administrator will, of course, have to make funds available for redundancy. The rapid response service will be activated and has been in contact with BIS since the administration started. I am pleased that we have had such a timely Statement and are able to update noble Lords.
Apprenticeships
Debate between Baroness Burt of Solihull and Baroness Neville-Rolfe(8 years, 7 months ago)
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Baroness Neville-Rolfe
I am not sure that I agree with the noble Lord but, looking forward, we are clear that younger apprenticeships matter a lot. That is why the system tries to encourage them. We also want to give the younger people the jobs, without stopping older employees being able to apply for apprenticeships as well, but I agree that the cliff edge between the younger apprenticeships and the older apprentice is an important issue.
Baroness Burt of Solihull (LD)
My Lords, the apprenticeship levy that is coming in next year is in danger of having some unintended consequences. Imposing a cap on what can be claimed per higher apprenticeship may drive employers towards more low-level apprenticeships, so that they can claim more of their own money back. Making the levy exclusively for apprenticeships may deter them from offering a wider range of training opportunities for their staff. Do the Government recognise those dangers, and what are they going to do to address them?
Baroness Neville-Rolfe
We will be publishing further proposals on funding and the logistics of this scheme in June. I note the noble Baroness’s points but we should focus on apprenticeships. I am a great one for focusing on an area and getting it done right, rather than trying to extend it right across the board of training, as she suggests. But of course we can learn from our experience.
Apprenticeships: Women
Debate between Baroness Burt of Solihull and Baroness Neville-Rolfe
Baroness Neville-Rolfe
Thanks partly to work done in this House by a series of committees, we are moving in that direction. Of course, people stay at school for longer now, so you would not necessarily get apprenticeships that lasted for five years. However, often you need an apprenticeship of more than one year to pick up all the skills that you need. In the end, you need a proper qualification that allows you to take your portfolio elsewhere. That helps flexibility in our economy, which obviously does a lot better than many other economies because of that very strength.
Baroness Burt of Solihull (LD)
My Lords, from the Minister’s response, it seems that the target of 3 million is quite a way off yet. However, is that missing the point somewhat? Should we not be concentrating on high-quality apprenticeships across the board? Otherwise we will run into the scenario of “Never mind the quality, feel the width”. On female apprenticeships in non-traditional occupations, what are the Government doing to encourage role models to inspire girls and women to bring their talents into these non-traditional areas?
Baroness Neville-Rolfe
As I have said, our new campaign will focus on role models, including female degree-level apprenticeships in engineering. We have Tomorrow’s Engineers Week, which responded to the Perkins review of engineering skills. The Your Life campaign, which I think the noble Baroness is well aware of, helps to ensure that the UK encourages women to move into maths and science in schools in a much more fundamental way. There is also the STEM Ambassadors programme, which I hope many noble Lords can help with. Some of us were not lucky enough to study science in school. We have to move forward and change the dynamics in our schools.
Steel Sector
Debate between Baroness Burt of Solihull and Baroness Neville-Rolfe
Baroness Burt of Solihull (LD)
My Lords, I am sure that I represent everyone in the House when I say that our thoughts today are with the steelworkers and their families.
A major cause of this, it would seem, has been the dumping of Chinese steel. We are part of the largest trading bloc in the world, and this has been going on for a very long time. What are the Government doing to defend our interests and to fight for British steel in the EU? The noble Baroness said that some things are being done but I think that everyone would agree that we need to do more to mitigate some of the worst problems that we are going through at the moment.
The British Government need to do more, but so do the Welsh Government. My Liberal Democrat colleagues in Wales have called for scrapping business rates on planting in the Welsh steel industry. The Labour Party has criticised the Government in England but seems to have done nothing where it is in charge in Wales.
Finally, one-third of the production in Port Talbot is for the car industry—a highly successful industry. The Minister says that there is no excuse not to buy, and every reason to buy, British steel. So why does she think, given all that she said, it is not being bought?
Baroness Neville-Rolfe
I start by agreeing with how devastating today’s news is, and I agree with the statement made by the First Minister in Wales, Carwyn Jones. Our first thoughts today are with the families, communities and supply chain businesses that are dependent on steel production in Port Talbot, Llanwern and Trostre. This is a severe blow to the community and to steel production in the UK. Indeed, I welcome the task force that has been set up in Wales today, which will meet this week. That follows the model of task forces set up in other areas, such as Redcar. They have done very good work and are particularly good at focusing locally, not only on issues affecting steelworkers but on businesses in the supply chain, which are obviously vital to future jobs.
It is right to say that we have made a lot of progress since we last discussed this in the autumn. Noble Lords will remember that there were five asks from industry, trade unions and others. There are two more today. We have made substantial progress on four of those five asks, as I pointed out in my Statement. We have not made progress on rates because they are the subject of a current review by the Government. In Wales action on rates is, rightly, for the devolved Administration, as has already been said.
I was asked when the Prime Minister first raised steel in China. I know that he certainly raised the issue of steel when President Xi visited us in October. In Brussels, which I was asked about, we have of course changed our approach on steel. In the relevant committees in July and in November, for the first time we pressed for action and voted against rebar. Individual cases of Chinese and other dumping have been pursued and accelerated. There was a summit of the EU Competitiveness Council, a special meeting that took place entirely because of a request by the Secretary of State to Brussels. I think noble Lords will agree that looking at these things together in Brussels is necessary, and that the action on energy costs and industrial emissions directives has come about directly as a result of that work. These things are difficult, but we have been determined to do a lot and we have been acting in Brussels constructively.
Sunday Trading
Debate between Baroness Burt of Solihull and Baroness Neville-Rolfe
Baroness Neville-Rolfe
My Lords, we have made it clear in our consultation that shop workers who want to work on Sundays will have greater choice to work more hours, but that those who do not wish to work on Sundays will continue to be protected. This important point comes through from the consultation.
Baroness Burt of Solihull (LD)
My Lords, the Liberal Democrats understand the Government’s considering allowing this decision to be made at a local level. However, we are concerned that this power, if given, could be seen as a boon to out-of-town traders. Will the Minister reassure us that any devolution will come with strict caveats on its use to ensure that local authorities focus on benefiting small independents and not out-of-town shopping malls?
Baroness Neville-Rolfe
My Lords, under our proposals, this would be a matter for local authorities. I know that they have different views on how to benefit their local economies and SMEs, but actually, this measure could be good for SMEs, particularly in areas with great tourism potential, where the footfall would help small companies—not only retail shops but restaurants and leisure outlets, for example.
Business: Advice Services
Debate between Baroness Burt of Solihull and Baroness Neville-Rolfe
Baroness Burt of Solihull
To ask Her Majesty’s Government what assessment they have made of the impact of the closure of the Business Growth Service, including the Manufacturing Advisory Service, on economic growth and access to advice for businesses.
The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills and Department for Culture, Media and Sport (Baroness Neville-Rolfe) (Con)
My Lords, we do not expect closure of the Business Growth Service to have an impact on economic growth. The most important way we can help small businesses is to continue to secure a strong growing economy by cutting red tape, extending small business rate relief and dealing with late payment. In future, businesses will be able to go to their local growth hub, which will co-ordinate local, national, public and private sector support.
Baroness Burt of Solihull (LD)
My Lords, the Business Growth Service has supported more than 28,000 businesses and since 2012 has added £4.8 billion GVA and 100,000 jobs. Manufacturing industry, which began a welcome rejuvenation under the last Government, is reeling from the sudden decision to close these services. Given how fundamental a part of the industrial strategy this service was, will the Minister tell the House how the Government intend to support the industrial strategy and companies’ ambitious to grow in the future?
Baroness Neville-Rolfe
My Lords, the Chancellor made it clear in his Autumn Statement that businesses need an active and sustained industrial strategy. We continue to work closely with different industry sectors—I do so with electronics and professional services. A whole series of announcements were made in relation to manufacturing to provide more support for aerospace, automotive, defence and transport.
Enterprise Bill [HL]
Debate between Baroness Burt of Solihull and Baroness Neville-Rolfe
Baroness Burt of Solihull (LD)
Perhaps I may ask the noble Baroness a question. We are struggling with where in the legislation these amendments might come. If we do not press this amendment now and Third Reading goes ahead, at what stage could further provisions which had been agreed by all the parties be legislated for?
Baroness Neville-Rolfe
My Lords, I do not think I can make a promise. Of course, the Bill is unusual in having been introduced in this House and it will be discussed further. Obviously we would have to work together to find something satisfactory. I say that in an optimistic frame of mind but I do not want to promise to deliver something that I am not able to deliver in the event.