Oral Answers to Questions

Debate between Lord Hanson of Flint and Margot James

Thursday 8th February 2018 Commons Chamber

[Margot James]

My right hon. Friend refers to the universal service obligation that will guarantee 10 megabits per second. According to Ofcom, that is enough for multiple usage in the home, and for downloading film and video.

[David Hanson (Delyn) (Lab)]

Villages such as Lixwm, Ysceifiog and Bagillt in rural areas of my constituency are getting increasingly frustrated with the performance of Openreach in delivering broadband. Two years ago, the Government pledged through Ofcom to deconstruct Openreach from BT, but what progress has been made on that objective?

[Margot James]

I encourage the right hon. Gentleman to remember that BT and Openreach are no longer a monopoly. I draw his attention to today’s announcement by TalkTalk that it is cutting its dividend and connecting more than 3 million homes to full fibre, building Britain’s full fibre future.

Oral Answers to Questions

Debate between Lord Hanson of Flint and Margot James

Tuesday 7th November 2017 Commons Chamber

[David Hanson (Delyn) (Lab)]

11. What discussions he has had with the Chancellor of the Exchequer on the conclusions of the recent Financial Conduct Authority report on the Royal Bank of Scotland and small business customers.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)]

My right hon. Friend the Secretary of State has frequent discussions with the Chancellor on a range of matters, including financial regulation. The Financial Conduct Authority has published a summary of Promontory’s skilled persons report, to which I think the right hon. Gentleman refers. The FCA is now considering the report’s conclusions, including whether there is any basis for further action.

[David Hanson]

Constituents of mine have, in good faith, used Government-based schemes such as the enterprise finance guarantee scheme to grow their businesses, only to find the Royal Bank of Scotland using the very same scheme to close down their businesses. Given that there is a litany of such cases throughout that report, is it not now time that the Minister and the Treasury conducted a proper investigation and perhaps even a judge-led inquiry?

[Margot James]

The enterprise finance guarantee scheme was exactly designed to enable businesses to borrow when they lacked collateral, with taxpayer support. If a bank is closing down overdraft facilities to claim on the guarantee—as in the case to which I believe the right hon. Gentleman refers—that would clearly be a gross abuse of the scheme. Any evidence of that will certainly be looked at very carefully by my Department.

CSC: Redundancies

Debate between Lord Hanson of Flint and Margot James

Tuesday 28th February 2017 Westminster Hall

[Margot James]

I have sympathy with the hon. Gentleman. I have the assurances from the Cabinet Office, which is in regular contact with CSC, and I am sure that my Cabinet Office colleagues are wary of the information they are being given in the climate that has been described this afternoon. I will undertake to have a direct conversation with my counterpart in the Cabinet Office to test out the assurances that he or she has been given. In the past, I have been exposed to corporations that have been going through this process of rapid change. That can be very worrying, especially where software and computer contracts are the main focus, because there could be a loss of the skills vital to the delivery of such contracts. In this country, we have had many concerns about public sector contracting for IT systems. It would be a reckless Minister who assumed that all was well, given the circumstances we have heard about this afternoon.

[Mr Hanson]

To be clear, my constituents have been made redundant, but the jobs are not redundant; the jobs have been offshored to other countries. Have the Government got a view in any way, shape or form on not only the company’s current performance but its future performance, which is equally important for my hon. Friend the Member for Chesterfield (Toby Perkins) and others?

[Margot James]

I thank the right hon. Gentleman, because I note that the hon. Member for Chesterfield said in his opening remarks that a lot of jobs had gone offshore to India. The Government have to be cautious in how we respond to that. Business change is an inevitable consequence, and it is not for the Government to direct companies as to how they fulfil their contracts. Unless contracts have certain stipulations within them from the outset, it is difficult for a Government to intervene. Once those contracts have been agreed, it is for the company to fulfil that contract and organise itself in the best way possible.

Having said that, I will say a couple of words about how the Government view public sector contracting. I am responsible for small business, and I am conscious that the Government have set a target that a third of all public sector contracts of a decent size should go to small and medium-sized enterprises. In committing ourselves to that goal, I do not think we meant SMEs in India; I think we meant SMEs in the United Kingdom. Members raise pertinent points. However, once a contract is agreed, if it does not have stipulations on the supply chain, how the company fulfils the contract using its own employees and where those employees are located, it is difficult to intervene part way through.

I reassure Members that suppliers are contractually obliged to meet their performance requirements. Those obligations remain in place regardless of any internal changes that a supplier implements. Through the Cabinet Office, the Crown representative for CSC regularly monitors the company’s performance across all its Government contracts. CSC currently delivers services for a variety of important public sector organisations. It has been formally requested to offer reassurance that the current redundancy programme will not impact on that service. CSC provided verbal assurance during a programme board at the beginning of February. NHS Digital and the Department of Health continue to seek full written assurances. The Cabinet Office are in regular contact.

I understand the concerns that have been expressed this afternoon, not only about redundancies but about their impact on public sector contracts. Every collective redundancy situation, large or small, involves individuals and needs to be managed carefully. It is a very difficult time for CSC employees and their families. It is therefore important that individual workers receive the information and support they need as and when they need it. I am clear that we cannot stand in the way of certain changes, but we have a reasonable hope that companies will act in the long-term interests of their communities and employees. As Members know, the Government recently issued a Green Paper on corporate governance. One thing we are looking at is extending the responsibilities of publicly quoted companies to large private companies. The facts that have emerged during the debate underline the importance of the Green Paper. I am sure that Members will want to debate the Government’s response to it in due course. I thank Members for all their contributions.

Oral Answers to Questions

Debate between Lord Hanson of Flint and Margot James

Tuesday 31st January 2017 Commons Chamber

[Margot James]

The British Business Bank has created the business finance guide, which is widely distributed and offers comprehensive information about the financing options available to businesses, including alternative sources of finance. The Financial Conduct Authority regulates peer-to-peer lending platforms and is currently reviewing its regulatory regime to ensure that it is robust and up to date.

[Mr David Hanson (Delyn) (Lab)]

What assessment has the Minister made of the impact of bank closures in town centres on the availability of business finance, to ensure that those such as my local one in Holywell, which is potentially losing three banks this year, will still have access to business finance and will still be positive town centres?

[Margot James]

The impact of bank closures is, to some extent, ameliorated by the Post Office’s announcement a few weeks ago that it will be enabling both personal and SME banking customers to have a massive increase in face-to-face banking services across the country.

Oral Answers to Questions

Debate between Lord Hanson of Flint and Margot James

Tuesday 13th December 2016 Commons Chamber

[Mr David Hanson (Delyn) (Lab)]

Is it not time for the Secretary of State to order an investigation into the Royal Bank of Scotland’s practices on lending to small businesses?

[Margot James]

The situation with RBS is under review and I am sure proposals will be made in the near future.

Policing

Debate between Lord Hanson of Flint and Margot James

Wednesday 24th October 2012 Commons Chamber

[Mr Hanson]

I was also in Swindon yesterday, while campaigning for Clare Moody, Labour’s candidate there, and know that that was a live issue in many discussions. The matter has now been referred to the Independent Police Complaints Commission, which will have to look at it, but I recognise my right hon. Friend’s strength of feeling.

On the question of CCTV, the code of practice we expect next year will certainly reduce the number of CCTV cameras and increase the bureaucracy, which in my view will have an impact on fighting crime. If we look at the DNA database and changes that my right hon. Friend the Member for Kingston upon Hull West and Hessle looked at hard, we see that the Government’s changes will make the database weaker, go against the Home Office’s own evidence and ensure that people who would have been caught and prevented from committing murders or serious sexual offences will now be able to commit them. Our own evidence in July 2010 showed that, under the system proposed by my right hon. Friend, 23,000 people each year would have been on the database who, under the Government’s plans, will not be and so will go on to commit further offences. What has it come to when the so-called party of law and order cuts policing, reduces CCTV, stops people—23,000 of them—being caught as a result of DNA evidence and, lastly, removes ASBOs, which are there to help protect communities against antisocial behaviour?

[Margot James (Stourbridge) (Con)]

Last year the chief constable of West Midlands police, Chris Sims, appeared before the Home Affairs Committee and made a commitment that his force would be able to deliver continuous improvement in crime reduction at the same time as reducing its budget. The results have borne out his early confidence. We have seen a 13% fall in crime to the year ending June 2012, and at the same time the chief constable has been able to reduce officer numbers by 4% and police staff by 6.2%. I think that is a good result for our taxpayers, who themselves are having to do more for less in the private sector.

[Mr Hanson]

rose—