Apprenticeships

Baroness Ritchie of Downpatrick Excerpts
Thursday 10th March 2016

(8 years, 9 months ago)

Commons Chamber
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Nick Boles Portrait Nick Boles
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My hon. Friend is absolutely right about this. It is extremely important not only that employers are in charge of developing standards to ensure that those standards are directly relevant to current occupations, but that we do not involve just the large employers that have human resources departments and senior managers who can go to meetings to help to develop those standards. Before every standard is approved, we insist that small and medium-sized employers in the industry support it.

Baroness Ritchie of Downpatrick Portrait Ms Margaret Ritchie (South Down) (SDLP)
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I welcome the Minister saying that he meets his colleagues in the devolved Administrations on a six-monthly basis. Can he provide us with an estimate of how much money is likely to be allocated to the Northern Ireland Executive on a proportionate basis as a result of the increase in the apprenticeship levy?

Nick Boles Portrait Nick Boles
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The hon. Lady tempts me towards the edge of the abyss, but I can point out to her, because it is a matter of public record, that the apprenticeship levy is due to raise £3 billion in 2019-20, £2.5 billion of which will be spent on English apprenticeships, with the rest going to the devolved Administrations. I cannot tell her how that divides up, but the Chancellor will have more to say on the subject quite soon.

Oral Answers to Questions

Baroness Ritchie of Downpatrick Excerpts
Tuesday 2nd February 2016

(8 years, 10 months ago)

Commons Chamber
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Nick Boles Portrait Nick Boles
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The right hon. Gentleman is absolutely right that apprenticeships offer a fantastic opportunity to young people, but we should not get hung up on whether people are doing one at 16 or 17, or at 18, 19 or 20. We want them to do one when it is best for them, in terms of the impact on their skills and future earnings, and also best for their employer—remember that apprenticeships are jobs, and not all employers feel comfortable taking on a 16-year-old to do some jobs. We want to ensure that young people get an education in college that enables them to make the best of an apprenticeship whenever they do one.

Baroness Ritchie of Downpatrick Portrait Ms Margaret Ritchie (South Down) (SDLP)
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The all-party group on the visitor economy is currently taking evidence on apprenticeships in the catering industry. We have discovered a dearth of apprenticeships in that area. How will the apprenticeship levy assist the recruitment of chefs and others in the catering industry and help to pump-prime apprenticeships and training?

Nick Boles Portrait Nick Boles
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Obviously, larger employers in the catering industry will be paying the levy, and will therefore have a direct incentive to spend the money in their digital accounts on apprenticeships. Issues with seasonal work in this and other industries mean that employers cannot always commit to an apprentice for a full 12 months, so we are considering piloting an apprenticeship that could last 12 months out of, say, 15 or 16 months to make it more accessible to the seasonal industries.

Oral Answers to Questions

Baroness Ritchie of Downpatrick Excerpts
Tuesday 15th December 2015

(9 years ago)

Commons Chamber
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Sajid Javid Portrait Sajid Javid
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I can talk about a number of initiatives, including the Exporting is GREAT website and the roadshow that will visit constituencies up and down the country. There is obviously also the work that UKTI is doing. Most recently, I helped to launch the midlands engine scheme, which I know my hon. Friend will welcome. We released more money to help that region with exports, including a midlands engine roadshow.

Baroness Ritchie of Downpatrick Portrait Ms Margaret Ritchie (South Down) (SDLP)
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As part of the work of the export implementation group, will the Secretary of State explore with the Secretary of State for Environment, Food and Rural Affairs all options to access new markets for all our farm produce in north America and south-east Asia?

Sajid Javid Portrait Sajid Javid
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Absolutely. The hon. Lady makes an important point. I know that the Secretary of State for Environment, Food and Rural Affairs has been taking this matter very seriously. One thing we have done recently is to move some of the UKTI resources into my right hon. Friend’s Department so that there is better co-ordination.

Oral Answers to Questions

Baroness Ritchie of Downpatrick Excerpts
Tuesday 10th November 2015

(9 years, 1 month ago)

Commons Chamber
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George Freeman Portrait George Freeman
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May I pay tribute to my hon. Friend, who is a doughty champion for British beer and Burton brewers? He makes a very important point and I would be delighted to convene that meeting with UKTI. We need to roll out the barrel for British beer and I am delighted to say that my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs and I have set out an ambitious food and agri-tech export plan, to ensure that the whole world experiences the benefits of British beer and food.

Baroness Ritchie of Downpatrick Portrait Ms Margaret Ritchie (South Down) (SDLP)
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The Northern Ireland agri-food industry depends on exports. With the Secretary of State for Environment, Food and Rural Affairs in China this week, what further steps will the Department for Business, Innovation and Skills take in accessing new market opportunities for British and Northern Ireland exports?

George Freeman Portrait George Freeman
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The hon. Lady makes an important point. The Northern Ireland sector is a crucial part of the UK sector, and that is why we have set up the exports implementation taskforce. We are absolutely dealing with the points she has raised about Northern Ireland.

Oral Answers to Questions

Baroness Ritchie of Downpatrick Excerpts
Tuesday 15th September 2015

(9 years, 3 months ago)

Commons Chamber
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Nick Boles Portrait Nick Boles
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We certainly want to support a range of construction firms, both small and large, but it would have been nice if the hon. Gentleman had taken advantage of his Back-Bench position to reflect a little more openly and honestly on the legacy of the last Labour Government, which saw the construction industry crushed. Housing starts are up by 50% from the low that was achieved at the end of the last Labour Government. There is a lot further to go, and we will work closely with construction firms to make that progress, but let us be honest about where the industry started.

Baroness Ritchie of Downpatrick Portrait Ms Margaret Ritchie (South Down) (SDLP)
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Will the Minister and his colleagues hold a range of discussions with their colleagues in the Treasury and Her Majesty’s Revenue and Customs, to discuss the need to reinstate the aggregate levy scheme, and particularly the exemptions, as that would assist the construction sector and the cash-flow situation for industries in Northern Ireland?

Nick Boles Portrait Nick Boles
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I would be happy to invite the hon. Lady to meet me to discuss that in detail.

Oral Answers to Questions

Baroness Ritchie of Downpatrick Excerpts
Monday 20th July 2015

(9 years, 5 months ago)

Commons Chamber
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Baroness Morgan of Cotes Portrait Nicky Morgan
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I thank the hon. Gentleman very much for his question. My understanding is that the measure he suggests does not necessarily tell us anything more than the free school meals measure does, but he, like me, wants the best for all disadvantaged pupils in the system, and to ensure that the funding is spent most effectively, not only helping those pupils to close the gap with their peers but ensuring that the brightest and best get right ahead.

Baroness Ritchie of Downpatrick Portrait Ms Margaret Ritchie (South Down) (SDLP)
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How will the Minister broaden opportunities for disadvantaged students and pupils in school, particularly primary school children, given that there are proposals in the Welfare Reform and Work Bill, which will be discussed later today, to eradicate various measures of child poverty?

Baroness Morgan of Cotes Portrait Nicky Morgan
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I understand that there will be a debate on the Welfare Reform and Work Bill later today in the House, but the important point that the Secretary of State for Work and Pensions made in his statement to the House was that just measuring an income target does not solve issues of disadvantage, one of which is educational attainment, and children from disadvantaged backgrounds not making the grade in basic skills such as reading and writing. Following spending on the pupil premium, we have seen the attainment in reading, writing and maths of disadvantaged pupils aged 11 increase by five percentage points since 2012.

Cyber-bullying

Baroness Ritchie of Downpatrick Excerpts
Tuesday 3rd December 2013

(11 years ago)

Commons Chamber
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Baroness Ritchie of Downpatrick Portrait Ms Margaret Ritchie (South Down) (SDLP)
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It is a pleasure to follow the thoughtful, reflective contribution of the hon. Member for East Worthing and Shoreham (Tim Loughton), and I commend the hon. Member for Upper Bann (David Simpson) and his party for tabling this motion on the very important topic of cyber-bullying. As the Minister said, there is no doubt that cyber-bullying is perpetrated with a large degree of anonymity and distance, which makes it particularly insidious and frightening for children. In many instances it has led to truancy from school, self-harm, suicide and many other issues. We all know that cyber-bullying can be done in many situations, and people who commit it say things on the internet, Twitter and Facebook that they would not say to someone face to face. When someone reads such a comment about themselves on the internet, Facebook or Twitter, it can be particularly intimidating. In fact, people have even been purged as a result, so it is important to reflect on that.

Cyber-bullying and legislation throw up various definitional issues. Cyber-bullying is defined as:

“when the Internet, cell phones or other devices are used to send or post text or images intended to hurt or embarrass another person”.

However, legislative difficulties arise in defining the difference between cyber-bullying and cyber-stalking, and in defining each of those concepts. That brings us into the arena of cyber-defamation law. Cyber-bullying has proved difficult to legislate on because of freedom of speech issues. Absurdly, many people argue that such legislation violates the bully’s freedom of speech. I find it unacceptable that a bully should feel that he is being prevented from saying something. However, this all comes back to the fact that such bullying is anonymous and from a distance, and that it can cause people to take certain actions, in a mistaken belief, to try to protect themselves. The hon. Member for Upper Bann is right to say that serious consideration has to be given to the legislative consequences of cyber-bullying, because at the moment, as the hon. Member for East Worthing and Shoreham said, cyber-bullying has had little consequences. In Northern Ireland, a review of sentencing is taking place and reference must be made to cyber-bullying in that. We must also have the primary legislation here and in the devolved institutions to deal with this issue.

Lord Dodds of Duncairn Portrait Mr Nigel Dodds (Belfast North) (DUP)
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Does the hon. Lady share my concern that the law in Northern Ireland does not require schools even to mention cyber-bullying in their anti-bullying policies? The local Minister for Education needs to get on with it.

Baroness Ritchie of Downpatrick Portrait Ms Ritchie
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I thank the right hon. Gentleman for his intervention. I absolutely agree that more urgent, robust and assertive action needs to be taken to deal with this issue. I believe that there is not one family of a Member in this House who have not been bullied, either face to face or by cyber-bullying, which is much more insidious.

The statistics are interesting. Ofcom found this year that some 43% of five to 15-year-olds have a social networking profile. Ofcom has also found that 81% of teenagers own a smartphone, with 60% of teenagers claiming that they are highly addicted to smartphone usage. This year, it also found that children and young people are now spending 17 hours a week online, although I would judge that the real figure is much higher. To see that, one has only to witness the use of this technology by children, be it on the school bus, in school or in a family or other environment.

This debate is all about what we do to deal with the problem and what political action is required. Like my colleagues in the DUP, I believe that the British Government and the devolved institutions have to give serious consideration to legislative consequences and to legislation itself. Until the Government here and the devolved institutions take it seriously, people who are dedicated to this form of bullying will get away with it.

I have no doubt that there needs to be lobbying for sustained nationwide campaigns similar to those for road safety, including TV advertisements, radio broadcasts and adverts, and video. An onus and obligation should be placed on the provision of funding and sponsorship from the big players such as the search engines, including Google, the social media platforms, such as Twitter, and mobile phone companies, such as O2, Orange and Vodafone. An action plan must be put in place to deliver awareness talks to parents, community and church leaders, educators, young people and children about this vice, which is a form of cyber-terrorism.

The hon. Member for Upper Bann referred to the work being done in the Republic of Ireland and how it is approaching legislation. The British and Irish Governments, along with the devolved institutions and the Governments of the Channel Islands and the Isle of Man, are part of the British-Irish Council. I urge the British-Irish Council to give immediate attention to this issue of cyber-bullying, because the Council would be a good context in which it could be discussed and in which Governments and devolved institutions could consider the matter and take positive legislative action.

The other area I wish to discuss is that relating to Children’s Commissioners. We have one in Northern Ireland, one in the other devolved institutions and one here in Britain. An immediate conference should be held at which they could reflect on this subject, because they have a dedicated responsibility for children, in order to see what can be done. [Interruption.] I am conscious of the time, Madam Deputy Speaker. As of 20 November, Canada introduced legislation covering matters such as distribution, removal, forfeiting the device, reimbursement to victims, court orders and investigative powers. We should be examining that strong Canadian legislation to see where we could take action.

In supporting this motion, I suggest that tackling these issues and the gaps in education and awareness are paramount, as is legislation. Cyber-bullying will continue to have a profound effect on our young people’s lives and on our future society. Parents feel largely helpless in this matter, and the debate today should be a warning to the Government that we all want to see action of a legislative kind to tackle this form of terrorism as it is so insidious in our wider communities today.

PISA Results

Baroness Ritchie of Downpatrick Excerpts
Tuesday 3rd December 2013

(11 years ago)

Commons Chamber
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Michael Gove Portrait Michael Gove
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My hon. Friend is both right and liked universally across the House. If I agree with him, I hope that I am right, but I can never aspire to be as liked or as popular as he is.

Baroness Ritchie of Downpatrick Portrait Ms Margaret Ritchie (South Down) (SDLP)
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When did the Secretary of State last meet the Minister for Education in Northern Ireland to discuss educational performance with an emphasis on the fairer distribution of financial resources?

Michael Gove Portrait Michael Gove
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I had the opportunity to talk to Minister O’Dowd several months ago, when I also talked to the Welsh Education Minister. It is striking that Northern Ireland is broadly at the same level as England in these results but Labour-run Wales is significantly behind. I think that we can draw the appropriate conclusions about that. I hope to visit Northern Ireland in the new year to talk to head teachers and others about how we can work together to ensure that our examination systems are aligned in a way that promotes social mobility across all these islands in the interests of a truly united kingdom.

Oral Answers to Questions

Baroness Ritchie of Downpatrick Excerpts
Monday 24th June 2013

(11 years, 5 months ago)

Commons Chamber
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David Laws Portrait Mr Laws
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The pupil premium has to be passed down properly to all schools, and before it existed, many young disadvantaged people were not getting any proper additional funding in many rural areas. My hon. Friend may wish to know that we also recently widened entitlement to the pupil premium to include pupils in families who had been entitled to free school meals at any time in the past six years. She will be pleased to know that as part of our recent funding review, we have introduced a sparsity factor of up to £100,000 that will allow local authorities to give extra money to schools in rural areas, and one of the big gaining authorities will be North Yorkshire.

Baroness Ritchie of Downpatrick Portrait Ms Margaret Ritchie (South Down) (SDLP)
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Given that the Secretary of State has had meetings with devolved Education Ministers in Northern Ireland and Wales about other examination matters, will the Minister confirm whether the Secretary of State had discussions with them about the potential for rural schools, their potential closure and the need for them to be sustained?

David Laws Portrait Mr Laws
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My right hon. Friend did not, but he would be happy to.

Phonographic Performance Ltd

Baroness Ritchie of Downpatrick Excerpts
Wednesday 6th July 2011

(13 years, 5 months ago)

Westminster Hall
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

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Baroness Ritchie of Downpatrick Portrait Ms Margaret Ritchie (South Down) (SDLP)
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I am grateful for the opportunity to have this important debate under your chairmanship, Mr Bayley. I want to talk about the licence regime operated by Phonographic Performance Ltd, which governs copyright for musical recordings, and by the associated Performing Rights Society; they issue music licences that cover the copyright for musical and lyrical compositions. Both licences are required by businesses if they want to play music in public places or hold a live performance.

I want to draw attention to the over-complex and expensive licensing regime in this market. The problem has been highlighted by the European Union and the Federation of Small Businesses, and by various businesses and constituents throughout my constituency in Northern Ireland. The regulations impact financially on many small enterprises across Britain and Northern Ireland, which are already over-burdened by Government regulation and red tape. Broadly speaking, as we seek to develop and grow the economy in Northern Ireland, such measures can place an undue strain on businesses that already have narrow profit margins.

The Government have acknowledged that the economy in the north of Ireland needs to be rebalanced, and the proposed steps to devolve corporation tax powers to the Northern Ireland Executive are encouraging. However, it has been noted that businesses are still subject to around 60 regulations, including licensing arrangements, which cost firms throughout the UK £13 billion. Those regulations may be particularly burdensome for our small and medium-sized businesses, which may not have staff dedicated to compliance issues. It is therefore important that we pay attention to the criticism that such firms have expressed about the licensing arrangements for performance music.

I would like to draw attention to more specific issues within the broader context of the debate. In March 2009, the PRS introduced an exemption rate for businesses with fewer than four employees to cover employees playing music in private that was not audible to the public. Under that arrangement, such companies were to pay £44 a year plus VAT, and that decision has since been upheld by the High Court. Such exemptions are welcome, but unfortunately they are some way short of a classification that would help small and medium-sized enterprises, given that SMEs are classed as organisations with fewer than 50 employees. I want to encourage the Government to examine such exemptions, and to make them more consistent with the definition of a small business.

Pete Wishart Portrait Pete Wishart (Perth and North Perthshire) (SNP)
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After 10 years as a Member of Parliament, I have not received one complaint on the subject from an SME in my constituency, and I, too, represent a rural area. Most small businesses are content to pay a small price to enable them to use wonderful music to enhance their businesses. When the hon. Lady is talking about exemptions, is she thinking about the musicians, most of whom survive on less than £16,000 a year? If small businesses with fewer than 50 people were exempt, the impact on musicians would be massive. Does she understand that musicians are struggling, and survive on the scraps that they get from the PRS?

Baroness Ritchie of Downpatrick Portrait Ms Ritchie
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I thank the hon. Gentleman for his welcome intervention. I recognise that in another life he was a musician, and is a member of a popular Celtic folk band in Scotland, which has played in Northern Ireland on several occasions. I recognise the musicians’ plight, and that they and the music industry are an integral part of small businesses. I am reflecting on the position of small and medium-sized enterprises in Northern Ireland, where we have a predominantly public sector-led economy, and are trying to grow our economy and encourage small businesses. Any additional taxation or fees simply imperil their financial situation.

Mike Weatherley Portrait Mike Weatherley (Hove) (Con)
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Does the hon. Lady agree that it is a blunt instrument to use the arbitrary definition of small businesses as being those with fewer than 50 people, when radio usage in small companies is often higher than in large companies?

Baroness Ritchie of Downpatrick Portrait Ms Ritchie
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I thank the hon. Gentleman for his intervention, but I am simply using the definitions proposed by the European Union. I accept his point, but perhaps I could continue my speech.

It is likely that many firms with fewer than four employees are unaware of the exemption, and more should be done to ensure that they are not paying excessive amounts. That brings me to a related issue: the cost of referring a case or complaint to the Copyright Tribunal can be prohibitive. As Consumer Focus highlighted, that is especially likely to be the case for small and medium-sized businesses, and even for a trade association, such as the Federation of Small Businesses. We must be especially aware of such concerns given the relative monopoly held by the collection organisations. Businesses have no alternative within the market.

In contrast with most other European countries and the US, the UK does not provide in law for the regulation of licensing collection bodies, and no authority is charged with their ongoing supervision, except in relation to the ad hoc resolution of complaints through the Copyright Tribunal. Given that somewhat unbalanced field of play, it is important to consider the charges that companies face. With reference to the PPL charges, businesses defined by the European Commission as small enterprises —including, for example, a hair salon with more than four employees and with more than five treatment or stylist chairs—that use a radio, CD player or MP3 player will have to pay PRS £169 and PPL £121 a year. An office or factory with 135 employees will pay PRS £1,142.03, plus VAT, and PPL from £113 depending on square metres. A small café seating up to 30 people will be charged for television, radio and CD. The PRS fee will be £440.72 and the PPL fee will be from £113, depending on square metres.

Set against that, I note that the PPL’s total licence fee income grew 10.7% to £143.5 million from £129.6 million the previous year. It boasts of a revenue growth from public performance of 2%, and claims that that is noteworthy. Its last press release around 8 June stated that

“it was achieved despite...extremely difficult trading conditions for many of the company’s customers and licensees.”

The fact that so many businesses are complaining about the high cost of the licences and the undue strain that it is placing on their finances indicates that there is a more draconian approach to compliance. It is vital—I say this advisedly—that PPL works closely with such businesses, and that the relationship is symbiotic rather than confrontational. Proclaiming their own revenue growth at a time of difficulty for the businesses that purchase their licences is not a step in the right direction.

As well as considering the level of charges, it is important at this stage to consider the sort of businesses that are most likely to be affected by the current arrangements. In my constituency, which is on the east coast of Northern Ireland, a large proportion of the economy revolves around the tourism and hospitality industry. The complexity and cost of requiring two separate licences, combined with an aggressive compliance regime, can put undue pressure on the bars, hotels and restaurants that form the background and backbone of our tourism industry. If those establishments are forced to cease playing music, business will suffer, customers may leave and the public’s exposure to artists’ music will be greatly decreased. As highlighted in a recent report by Consumer Focus, the European Commission commented, in reference to competition, copyright and collective rights management, that

“no other sector operates such complex licensing arrangements.”

Before concluding, I wish to raise an associated and relevant concern that relates specifically to businesses that play radio stations. Although the radio station will have paid a royalty fee for playing the music, the small or medium-sized enterprise effectively has to pay that fee again, which I consider amounts to double taxation. In a similar manner, an hotel may be faced with a double cost for playing music in separate areas. That overly severe and inflexible approach damages small businesses. If those businesses are forced to stop playing music, it will hurt not only the businesses but those artists who, as the hon. Member for Perth and North Perthshire (Pete Wishart) pointed out, may live off a small wage and rely on being played on the radio for exposure. In summary, the licensing arrangements, which in some instances comprise many different tariffs, are cumbersome and cost-prohibitive for many owners of small and medium-sized businesses.

Mike Weatherley Portrait Mike Weatherley
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I wonder whether the hon. Lady will expand on one aspect of that argument. If music is a necessity and part of the raw material required to provide a service in a café, for example, how does it differ from any other products offered by that café, such as coffee? Does the hon. Lady suggest that the Government should subsidise all other services offered by that business?

Baroness Ritchie of Downpatrick Portrait Ms Ritchie
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If I may, I will say with a degree of temerity that there is a major difference between paying two licence fees, and paying for coffee and other services offered by a café. I am sure that we could elaborate further in the margins of the debate.

The licensing arrangements, combined with what is perceived to be an increasingly draconian compliance regime, is putting businesses under pressure. If we recognise that, we must find a solution that protects our valuable music industry, of which small businesses form an integral part. I urge the Government to take steps to create a simpler and more effective licensing regime. It is vital that licensing requirements and costs do not disproportionately impact on small and medium-sized businesses at a time when many already face a challenging economic climate.

In Northern Ireland, all parties are collectively trying to rebalance the economy and change it from being 77% public sector-led, to a system that puts greater emphasis on the private sector and will provide opportunities for people to develop business ideas. Given the degree of compliance involved in the licensing system, and the fees that are charged in such a cumbersome way, the charges need to be streamlined so that people and businesses can enjoy greater comfort. People should be able to enjoy the music without facing difficult charges. It is vital that the licensing requirements be streamlined and reviewed as a matter of urgency, and on behalf of small to medium-sized enterprises throughout Britain and Northern Ireland, I ask the Minister to take those views on board. I recognise that we have devolved arrangements in Northern Ireland, but the responsibility for licensing lies in London.

John Hayes Portrait The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)
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It is delightful, Mr Bayley, to speak in successive debates in this Chamber under your benevolent stewardship. I congratulate the hon. Member for South Down (Ms Ritchie) on securing this debate and on her speech, and in the short time available I will do my best to deal with some of the points she has raised.

I hope that hon. Members will join me in recognising the success of the 45,000 performers and almost 5,000 record companies that are members of Phonographic Performance Ltd. They make a significant contribution to the cultural life and economic wealth of our country. The industry of which they are part—the creative industries—acts as an important ornament to all that we are and all that we do. It is one of the big growth areas in our economy and has the support of the Government. We are working with the creative industries to develop ways in which they can grow still further. Our country is home to the largest national creative sector in Europe, and the creative industries account for 5.6% of gross value added in the UK, and provide around 2 million jobs. They are not merely ornamental but make a difference to the health and well-being of our economy and of communities up and down Britain.

Intellectual property and the copyright system lie at the heart of our creative industries. Many of those industries are small firms—the hon. Lady drew our attention to that once again in her speech. PPL tells us that the vast majority of its members are small and medium-sized enterprises. As she has said, those industries rely on copyright to survive, and it provides them with a legal framework to sustain and protect creative value. Although we are committed to minimising unnecessary burdens on small businesses, we also want to maintain a fair and balanced copyright system in which artists can gain fair rewards for creative works, and licensees can expect access to content via a licensing system that is fair, transparent, and reasonable.

As the hon. Lady has said, PPL plays an important part in that system. Like all collecting societies, it has a valuable role in managing and clearing rights. Its collective licensing activities mean that users do not have to approach every single rights holder for permission, which helps to reduce transaction costs. As a collecting society, PPL is a private commercial organisation that manages the rights of its members. The collecting society functions of PPL and all other collecting societies are not specifically regulated by the Government. PPL acts on the basis of mandates given to it by its members, which it uses to license those rights—the exclusive rights that the international and domestic legal framework gives to copyright owners—for those who want them.

The licensing system in the UK is relatively unregulated compared with other jurisdictions. Our system expects the licensor and the licensee—or their representative body or trade association—to negotiate freely and agree a market rate for the licence. If negotiations break down, the licensee or their representative can refer the matter to the Copyright Tribunal. The collecting society has no corresponding right. That is intended to act as a check on the power of what is effectively a monopoly supplier when dealing with, for example, the kind of small businesses championed by the hon. Lady.

As the hon. Lady will know, Professor Hargreaves has reviewed these matters. In his work, he noted that collecting societies in the UK fulfil a valuable role in licensing markets, but that they are also effectively unregulated natural monopolies. Licensees do not generally enjoy the protections that are available to consumers when dealing with broadly comparable organisations such as utility companies. Professor Hargreaves recommended that collecting societies should be required by law to adopt codes of practice approved by the Intellectual Property Office and UK competition authorities to ensure that they operate in a way that is consistent with the further development of efficient, open markets.

Following that inquiry and review, the Government are considering their response to Hargreaves’s recommendations, which will be made public in the near future. The hon. Lady’s Adjournment debate could not be timelier, because the Government are open-minded about this issue, mindful of the recommendations and anxious to move forward. The constraints within which we work are, of course, international and European obligations. The hon. Lady will be familiar with those, too. None the less, I think that further progress can be made, and I will say a few words about that in the time available to me.

Baroness Ritchie of Downpatrick Portrait Ms Ritchie
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rose—

John Hayes Portrait Mr Hayes
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The hon. Lady wants to intervene to inform my brief contribution with her expertise.

Baroness Ritchie of Downpatrick Portrait Ms Ritchie
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I thank the Minister for his answer and his speech so far. He has referred to the Government response to the investigation and report by Professor Hargreaves. Can he provide an estimated timetable for the Government response? Is it likely to be produced in the next month, the next two to three months or the next six months?

John Hayes Portrait Mr Hayes
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I shall deal with that specific question before I finish speaking. No doubt inspiration will wing its way to me to inform my response—the hon. Lady knows what I mean by that. She has made it clear that there are areas in which we can make improvements, notwithstanding the constraints to which I have referred. Ah! Inspiration may already have reached me, but I want—not tantalisingly, but temptingly—to delay what I say about that for a few moments.