Government Plan for Net Zero Emissions

Derek Thomas Excerpts

Tuesday 8th October 2019 Westminster Hall

[Derek Thomas (St Ives) (Con)]

I thank my hon. Friend the Member for Truro and Falmouth (Sarah Newton) for her excellent opening remarks, and for putting this subject back on the agenda. I also commend my constituents, hundreds of whom have spoken to me this year about their concerns in a way that has been constructive and productive, and that has helped me to understand my role as a local MP in bringing about change. We must do all we can to accelerate our charge to reach net zero emissions, as that is the right thing to do. The opportunity to improve people’s lives is significant, and much can be done straightaway. What is not to like?

We can improve and deliver cheaper-to-run homes and transport. Getting that right will lead to improved and sustainable farming and food production, improved and healthier natural environments, and improved skills and pay, particularly in vocational jobs. In places such as St Ives, Cornwall and the Isles of Scilly, vocational jobs in construction and renewable energy are a way of creating and spreading wealth.

This is a great opportunity for a progressive Government, and we need leadership. If we want to bring forward plans to ban the production of cars powered by dirty fuel—and I think we should—we must find a way to step up the production of electric vehicles and support low-income families to purchase them. We must properly roll out smart meters so that we use energy when it is available, and we must help households to generate and store energy. To achieve a significant reduction in carbon emissions, the Government can introduce helpful, exciting and ambitious legislation to bring those things together and help families to use better and cheaper transport.

My hon. Friend the Member for Truro and Falmouth talked about the opportunity to reduce emissions from our homes. As has been said, homes and transport contribute an enormous chunk of our carbon emissions. We can quickly accelerate the reduction of carbon emissions by addressing those things. With my background in the building trade, I know that it can be done. It is right to accelerate policy to make all new homes carbon neutral, and to look at providing interest-free loans to improve the efficiency of businesses and homes. However, as the draft environment Bill comes forward, we should quickly seize on the idea of having the most ambitious nature recovery network to benefit every corner of the country.

Oral Answers to Questions

Derek Thomas Excerpts

Tuesday 16th July 2019 Commons Chamber

[Chris Skidmore]

The hon. Lady mentions electric vehicles and battery storage. The Prime Minister made a significant announcement yesterday at her business council, attended by the Secretary of State: £500 million-worth of export finance will be provided for electric vehicles. There are also the guarantees on looking at charging points. The White Paper is due this summer; I cannot give any more guarantees beyond that, but it is absolutely critical as the next milestone going forward that we have the legislation in place for net zero, and we now need to set out a plan. The clean growth strategy was set out earlier—late last year. We are on track to meet 90% of carbon budgets 4 and 5, and we will do more to ensure that we meet them.

[Derek Thomas (St Ives) (Con)]

Publicly owned buildings such as schools and hospitals can access interest-free loans in order to retrofit their buildings and put on solar panels and so forth. What consideration will be given to allow that kind of scheme to be available to small businesses?

[Chris Skidmore]

I entirely agree that taking a local, bottom-up approach is the way in which the Government want to go. For instance, the rural communities energy fund has recently been established—an extra £10 million has been made available there—and we have the smart export guarantee when it comes to looking at renewable sources of power for small businesses or other small community buildings—

Climate Change, the Environment and Global Development

Derek Thomas Excerpts

Wednesday 10th July 2019 Commons Chamber

[Gillian Keegan (Chichester) (Con)]

It is a pleasure to follow the hon. Member for Dundee West (Chris Law) and hear about examples of best practice in Scotland, that fantastic member of the United Kingdom.

There is no doubt that our actions are changing the planet. Our relentless consumption of the earth’s resources over centuries has consequences, and today we are starting to see them. Many of our once abundant coral reefs are bleached white and left lifeless. Vast expanses of land where rain forests once stood are stripped bare for farming. Even in Europe, some reports suggest that deserts will expand across the southern Mediterranean. We are destroying the earth’s natural carbon sinks, and with them, the wider biosphere—so much so that our planet is now in the midst of its sixth mass extinction. Not since the extinction of the dinosaurs have we seen such a loss of plant and animal species. According to one study, current extinction rates are 1,000 times higher than they would be if humans were not around. The International Union for Conservation of Nature’s red list found that more than 27% of all assessed species on the planet are threatened with extinction.

We have the facts about what is happening to our world today, and we know why these changes are occurring, so in theory the solution should be simple. In one sense, it is—we need to stop producing carbon dioxide and implement strict protections for vulnerable ecosystems. But to do that, we need both the political will and a sense of economic realism. We need to take the people of the country with us, which is why this must not be a party political issue.

I have heard the calls for putting the UK on to a war-like footing, immediately banning combustion engines, limiting flights and turning off the taps to traditional fossil fuels. It can be tempting to get swept away on this wave of emotion and the calls for drastic change. There is a serious risk of gesture politics overtaking pragmatic, sensible policy making. Setting goals without a plan is wishful thinking. We need a plan, but it must be carefully constructed to avoid the mistakes of the past. We all remember diesel cars—we were all convinced that we had to buy them. As a result, the market share went from 14% to 65%, and look what happened next.

We need to ensure that these actions are complementary. I co-chair the all-party parliamentary group on the United Nations global goals for sustainable development. We need to check that the policies we put in place are coherent, because some policies to pursue one goal may impact negatively on another goal. This is the whole world’s ecosystem we are talking about, and we need to take account of that.

[Derek Thomas (St Ives) (Con)]

My hon. Friend is right that we need to take people with us and ensure that this works for them. Does she agree that if we provide enough charging points for electric vehicles and support people to purchase them, we can help to clean up our environment and significantly reduce the cost of living, because electric vehicles are so much cheaper to run?

[Gillian Keegan]

Yes. Last year I went to the Nucleus conference at Goodwood and saw one of the world’s leading electric car manufacturers, NIO—a Chinese company—which is solving the problem in a different way. Instead of creating lots of charging points, they had changeable units that people could pick up and drop off in a garage, like we do with Calor gas on the continent. We need to consider all the best practice, because we do not want to get policy wrong again.

--- Later in debate ---

[Derek Thomas]

I thank the hon. Lady for her enthusiasm and for the opportunity to intervene. She will be aware that the Committee on Climate Change has said that this is about upscaling and making sure that we have the skills we need right across the country. In places like Cornwall, which I represent, the skills are not there and low-paid jobs are the norm. Does she agree that this gives us the opportunity to create wealth and spread it across every corner of the United Kingdom?

[Rachel Reeves]

I absolutely agree. Some of those coastal towns, cities and regions stand to benefit the most. In my own region, Yorkshire and the Humber, the job opportunities from offshore wind have helped to transform previously deprived communities. There will be huge opportunities in Cornwall, with battery technologies giving huge potential for growth and jobs in an area that desperately needs them.

--- Later in debate ---

[Stephen Kerr]

My hon. Friend is absolutely right. Now is the time to unite the generations and the nation itself to tackle the challenge that lies before us. Yes, we have filled columns and columns in Hansard discussing Brexit—it is the national obsession at the moment—but the issues in this debate transcend any of the matters relating to Brexit, which will very soon, I hope, be a chapter in the story of our nation. This is about the future of our planet, and young people absolutely get that.

It is essential that we build a cross-party consensus by dealing with the issues as they arise on an evidence-led basis. The Intergovernmental Panel on Climate Change said in its most recent overview of climate science:

“Warming of the climate system is unequivocal, and since the 1950s, many of the observed changes are unprecedented over decades to millennia. The atmosphere and ocean have warmed, the amounts of snow and ice have diminished, and sea level has risen.”

I repeat: it is vital that we have an honest conversation between ourselves as political representatives and the people we represent in our deliberations in the House.

The Committee on Climate Change has said there is currently no Government strategy to engage the public in the transition to a low carbon economy and adds that that will need to change. That warning—that very strong nudge—needs to be accepted by us all on the Government Benches. There needs to be a shared determination to address the need for a national conversation. My constituents, of all ages, reach out to me to discuss climate change because it concerns them. Sir David Attenborough yesterday mentioned how a 90-second, two-minute clip in one of his documentary series on the damage that plastics were doing to the ecology of the oceans of the world had galvanised a whole body of opinion not just in this country but across world.

That feeling was reflected in a meeting I attended the Sunday before last with the green team at Stirling Methodist church. They wanted to talk to me about their ideas and suggestions, which they wanted to share more widely, for how people could choose to act and even the mental attitude they could adopt to establish our own net zero carbon target. I could not help but think about that when I was listening to my hon. Friend the Member for Chichester (Gillian Keegan). In addition to sending a first-class Member of Parliament to this House, her constituents have done the planet a power of good by reducing the number of times she flies from 200 to something a little bit more manageable.

We have an individual responsibility in terms of our own lifestyles. In that meeting with the Methodists, we shared together as Christians our sense of having a covenant responsibility to be keenly aware of our responsibility as stewards of the earth. We all agree that we owed it to each other, to our children and to our children’s children to bring about a wider conversation in Stirling and beyond about what these new net zero targets would mean for our lifestyle expectations and how we behaved as individuals, not least in terms of diet. We must be under no illusions as to the real change that will be required of our country and of us as individuals if we are to meet the challenge we have set ourselves of net zero by 2050.

I will make a short list of some of the areas where we need action this day—to borrow a phrase from Winston Churchill—and I will start with single-use plastics. Pragmatically speaking, we need to address this issue. There will always be a place for plastics, even single-use plastics—for medical purposes, food hygiene and other specific purposes—but we must adopt the default position that plastic should not be used as a single-use material. I intervened earlier on the hon. Member for Dundee West (Chris Law) to highlight a report that appeared in the Scottish press a few days ago and which mentioned that Scottish households alone were spending £600 million just on the packaging of the goods they were buying, which they were then either recycling or otherwise disposing of.

[Derek Thomas]

I have been visiting schools for a long time now, and everyone I have spoken to wants a plastic-free school, but the pupils tell me that many of the items that are supplied to the canteens—over which they have no control—are wrapped in single-use plastic. Those children are at their wits’ end, because they feel that they do not have the power to bring about change. What does my hon. Friend think we should be doing about that?

[Stephen Kerr]

We need to do something, and I think we need to have a discussion about what that means, because I think the House has a part to play in that something that we need to do. I have become personally aware—much more than I have ever been—of the extent and volume of single-use plastic in my life. I know that during Lent some of my hon. Friends, and indeed some Opposition Members, engaged in a fast to clear their lives of single-use plastic. That was exemplary in setting the pace for all of us in the House and for the whole country, but we really need to apply some fresh thinking to the urgent need to deal with single-use plastic.

For instance, as I said earlier to the hon. Member for Dundee West, we need action on the proposed deposit return scheme. I know that it takes time for these things to be put together, and I know that it is important for there to be as much discussion as possible in Parliament, in Whitehall and, of course, with the business community, especially the retailers who will have to manage much of the scheme. I also appreciate that the Scottish Parliament, on an all-party basis, has done some pioneering work in this regard. I must say to the Minister, however, that it is surely not beyond the realms of possibility for all the Governments on these islands, at all levels, to work together to create a single UK-wide scheme for the return of plastic bottles in particular. That would remove any danger of geographical or cost anomalies. By working together, we could help to cement the idea of deposit return with the public. The sooner we do that, the better.

The second point that I want to make concerns transport. I do not want to repeat some of the things that have been said earlier, but it is important for us to understand that 15% of global man-made carbon emissions come from cars. We have a huge opportunity to move to lower emission vehicles, but we need many more electric charging points. The infrastructure is patchy to non-existent, and it does not give confidence to potential purchasers of low emission or electric vehicles. The planning laws throughout these islands should be changed to insist that car-charging points are installed in all new private houses and commercial properties as part of their initial construction. We also need a single system for using car chargers: expecting drivers to have several cards in their wallets and separate registrations for different charging points is absurd if we wish to make it easy for people to make the transition to electric vehicle use. Governments need to do what Governments, and only Governments, can do, and bring together every party so that a sense of co-ordination and working together is at the heart of this national infrastructure project.

Let me ask the Minister a question that I asked during a debate just a few days ago. Where is the promised competition for a standard charging point design—the so-called Hayes hook-ups? I think that that could capture the imagination of the wider public. [Interruption.] Yes —the Hayes hook-ups are named after our right hon. Friend the Member for South Holland and The Deepings (Sir John Hayes).

With better infrastructure will come greater consumer confidence, but the Government should restore the incentives for buyers of electric vehicles that they reduced last year, because they have had some impact. We must be ambitious, and set new targets to eliminate the use of internal combustion engines from our cities by the middle of the next decade. I think that that is realistic. I also agree with something that was said by an Opposition Member earlier: it is important for the Government to give a clear signal to manufacturers, because investment decisions are made within the framework of public policy.

Bank Holidays in 2020

Derek Thomas Excerpts

Tuesday 18th June 2019 Commons Chamber

[Derek Thomas (St Ives) (Con)]

I am grateful for the opportunity to bring this important issue before the House; it concerns many of my constituents and many other people around the country. Since being elected in 2015 I have secured a number of debates in Parliament, all triggered by someone from west Cornwall and Scilly raising an issue with me that deserves proper scrutiny and representation. The issue of the early May bank holiday next year is no exception.

I am here to add my full support to the decision to make the 75th anniversary of VE Day on 8 May 2020 a bank holiday and a national day of celebration and commemoration. Victory in Europe Day, generally known as VE Day, is a day celebrating the formal acceptance by the allies of world war two of Nazi Germany’s unconditional surrender of its armed forces on 8 May 1945.

It is worth remembering how we celebrated that momentous event all those years ago. At 11 am on 8 May church bells rang out across the nation signifying the end of the most destructive war Europe had ever seen. More than 1 million people took to the streets of London to celebrate. Crowds filled Trafalgar Square and up the Mall to Buckingham Palace, where King George, Queen Elizabeth and Winston Churchill stood on the palace balcony, waving and cheering the crowds on. Around the country, millions gathered in villages, towns and cities, marking the end of war in Europe with street parties, dances and parades. Social norms were abandoned as strangers hugged and danced with one another, and bonfires were lit in the street—I cannot imagine what local councillors would do about that these days. Despite rationing and years of economic strife, communities came together to cook sweet treats for children and shared meals with what food they had, and pub licensing hours were extended. Buildings and streets in major cities were illuminated for the first time since the start of the war, after years of blackouts to prevent German bombings.

[Julian Knight (Solihull) (Con)]

I congratulate my hon. Friend on securing this debate and add my support to the bank holiday idea. I recently read through the biography I wrote of my grandfather, who was a 17-year-old paratrooper—they used to lie about their age—in northern France and Germany in 1945; it addressed that time and when he came home. Does my hon. Friend agree that it is not unusual to mark the end of wars and major events in this way? For many years we marked Trafalgar Day and even the accession to the throne of Queen Elizabeth I.

[Derek Thomas]

I thank my hon. Friend for that intervention. The days that he has referenced are really good opportunities for MPs to take part in the commemorations that happen right across the country, which I enjoy. I make a point of taking part in them and taking my children along as well, so that they can learn about our great heritage and our great service.

[Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)]

I agree with what the hon. Gentleman says about the 75 years, and about the 50 years. I have been a trade unionist for 30 years, and the only day of action I took was for the bank holiday to remain as a traditional May Day bank holiday. It must remain. Give us the extra day for the 75, but the traditional May Day bank holiday on the first Monday of every May is for workers and trade unions, and it must remain as well.

[Derek Thomas]

That is the argument I will be making as I remind the House about the incredible event that took place on VE Day and explain why it is absolutely right that we set aside time to celebrate that next year, so that the whole of Great Britain can take part.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for giving way, and if he needs any advice on bonfires in Northern Ireland, we would certainly have lots of information. We do them every 11 July, by the way. I attend one in Newtownards and it is always very well attended. There have been almost 1,000 people there in years gone past. Does he not agree, however, that it is difficult for businesses and even community groups to accept this roll-out of a new bank holiday date? I support the principle of what he is saying, but the proposal is not even for a year’s roll-in. Does he share my dismay at the news of calendar makers losing hundreds of thousands of pounds due to the short roll-in? Does he share my concern at the environmental aspects of the wastage of perfectly good material because the Government, in this case, did not pre-empt the change in the same way as was done with the last change to a bank holiday, which was announced in 1993 for a roll-out in 1995?

[Derek Thomas]

I welcome that intervention, and I would be happy to apply for a Westminster Hall debate with the hon. Gentleman if he chose to speak on that further.

I want to make the point that I am not a fan of the way in which the Government have come to this decision, but it is really important for me, knowing what a great thing it is to remember the sacrifice made by the millions of men, their families and all the people involved in working and fighting for peace in Europe, that we spend a little bit of time remembering the great event that took place when that finally came to an end. For me, seeing the footage of crowds in the streets celebrating this momentous occasion—for them, a bittersweet moment after years of hardship, loss and fear—it is right that we should put aside all else and commemorate and celebrate that day on 8 May next year. I hope that we will be able to re-enact many, if not all, of the activities in our towns and villages. I would not need to go far, as I have a couple of sons in my own home who would be quite happy to tell me how to light fires, which the hon. Member for Strangford (Jim Shannon) mentioned.

As I have said, I have no problem with the decision to move the bank holiday to 8 May. My problem is the cack-handed way in which the Department for Business, Energy and Industrial Strategy went about reaching this decision. I would be interested to hear from the Minister what impact assessment the Department did on the lateness of making such a substantive change to the bank holidays in 2020 before announcing this decision. What was the Department thinking when it decided to give just 11 months’ notice of the cancellation of the early May bank holiday?

[Dr David Drew (Stroud) (Lab/Co-op)]

I am sure the hon. Gentleman is going to talk about this, but I will pre-empt him. At least two people have written to me to say that that was the ideal date for them to get married, and that they had invited people for the whole weekend. Their plans are now in tatters. We cannot just let people down in this way. It is not fair. People plan these things years in advance, based on the dates they know. Why do we not just have an extra day?

[Derek Thomas]

I am glad that I have support from around the House, because Adjournment debates are often poorly attended. I thank the hon. Gentleman for that intervention, and I completely agree with him. The Secretary of State announced the change to the early May bank holiday, and it was an enormous decision for large numbers of small businesses, for the tourism industry—which I particularly want to focus on—for the people who have already, for good reasons, booked their holidays next May, and for the people who have decided to use that weekend because they would be able to take their children away without interfering with their schooling.

I am disappointed that the Secretary of State himself is not here to respond to the debate, because the late notice of the announcement demonstrates a tin ear towards the tourism industry. For those in any doubt about the meaning of the expression “tin ear” and its use in relation to the Department’s attitude towards small businesses and many other people, it is defined as “a deafened or insensitive ear”. However, I want to make it clear that I do not include the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Pendle (Andrew Stephenson), who has been asked to respond to this debate, in that definition, because he has had nothing to do with it.

I received a letter from a businessman on the Isles of Scilly a day after the announcement, and he put his concern across much more diplomatically, saying:

“I have to say whichever government department decided at this late stage, 11 months before, to change the dates really does need to wake up to the realty of the holiday market. This change has the potential to create many upset guests unable to change their booked dates.”

I know that I am not alone in receiving correspondence and representations from constituents and businesses, and I have selected a few extracts that help to express the various implications of the decision being so late. One constituent asked the following question of the Secretary of State in an email to me:

“Have schools been considered in this late announcement about the changes to the May bank holiday? This will cause problems especially as holiday dates are already issued, residentials and school trips will have been planned, and this is the Friday before the important Y6 SAT tests”.

Another wrote:

“Hello Mr Thomas,

I have also been affected by the change of the bank holiday. I have booked my Hen Do”—

we have already had a reference to weddings—

“for the bank holiday weekend, paying more to go on these dates so that more people could make it as they wouldn’t have to take the day off work. As the date has now changed, people are not able to make my Hen Do, and I am forced to pay to cancel the holiday booked for us all losing over £1000.

I hope you can help in this issue by asking the government to not take away our original bank holiday date.”

Another constituent wrote to me to say:

“Dear Sir,

I am extremely pleased that VE day is to be celebrated as a priority in 2020.

However, I do not believe that the decision yesterday to change the date to 8th May 2020 provides a suitable length of time for the country to adapt.

My family are now left with the option of losing financially to cancel our annual May Day Bank Holiday as our children will be required to attend school.

The tourism industry is just one example where 11 months’ notice is not suitable.

I would expect that more foresight would have been given to this scenario.”

Someone who is not a constituent—I will leave the House to work out where they are from—wrote:

“Dear Mr Thomas

I understand you are bringing up the cancellation of the May day holiday in Parliament.”

A small group of us, they continue, organises

“the annual bikers’ event and May day Morris dancing in Hastings. It is by far and above the biggest weekend in the annual calendar. Not only will it affect our events badly, it will also be a massive blow to local tourist businesses who rely on that weekend after a hard winter and tell me it’s their biggest earner of the year...Currently, Morris dancers and bikers from across the country”—

this is something that we can all look forward to—

“are planning a protest at Parliament on July 23rd. This is something we would rather not have to do”—

although I think we would welcome it.

“We fully support a commemoration of VE Day, but we do not support having our events that have already been booked and paid for, plus all those who have already booked hotels, disrupted with so little notice.”

Returning to my constituency, many will know that the world gig rowing championships take place on the Isles of Scilly on the early May bank holiday every year. It is a momentous event in my constituency’s calendar, and it takes a considerable amount of time to get all the gigs over to Scilly. However, it is currently unclear what changes will need to be made if the Government stick to their decision. Moving on to other disruption that I am aware of, we have all seen the story in the national press about the small business that is set to lose £200,000 having just printed next year’s calendars.

I am sure the Government do not need me to say how disruptive this decision is given how late in the day the announcement was made. The only possible, practical and pragmatic response is for the Government to keep the bank holiday to commemorate VE-day and to reinstate the early spring bank holiday on Monday 4 May. I make it clear to the Minister, to the House and to business that I have no appetite to create extra cost and disruption for small businesses, and I have never previously supported the idea of extra bank holidays. However, the fact remains that the Department for Business, Energy and Industrial Strategy has left the decision far too late and has caused far too much disruption and potential expense to far too many people. The appropriate response must be for the Department to reinstate quickly the bank holiday on 4 May.

There is support for that proposal, which may not surprise the House. The British Beer & Pub Association sent me a letter:

“For clarity the BBPA does support the extra bank holiday that Mr Thomas is proposing. Based on the four-day bank holiday weekend for the Queen’s Diamond Jubilee in 2012, we predict that the extra bank holiday would provide a boost to Britain’s pubs and brewers, with an estimated 10 million extra pints sold. This would also support the taxman and the economy—the taxman would receive £4.5m in extra duty revenue and VAT and it would provide a £30m boost to the economy.”

All of us, particularly those of us with rural constituencies, know the importance of small rural village pubs and how such opportunities really help them to continue their business of providing a community hub and keeping an eye on those who are otherwise often left at home on their own.

[Hugh Gaffney]

The hon. Gentleman mentioned earlier that people book holidays for that weekend, and sometimes it is the only time that families get together because they have to work through the school holidays to keep a roof above their head. The UK has the fewest bank holidays in the G20. Does he agree with Labour, which wants to increase the number of bank holidays? Let us start next year with VE Day and then look at each country’s patron saint’s day.

[Derek Thomas]

The hon. Gentleman will realise that I do not fully support everything he has just said, but I support what he says about next year. That is the whole point of this debate.

We have left it too late. There is no question but that we need 8 May, but we should reinstate and keep the 4 May bank holiday, because that is what people have planned for, expect and, in many cases, have paid for. Tourism is a significant part of my constituency’s economy, and people have booked in advance because there has been real growth in staycations. People are staying in the UK for holidays, and Cornwall is obviously their No. 1 choice, particularly west Cornwall and the Isles of Scilly.

I have always maintained that I represent the most beautiful, precious and wonderful part of the country. If people have any concerns about their wellbeing, they should come down for a well-deserved rest and therapy. I hope I have been able to get that across in this short commercial break.

I agree about the extra bank holiday for next year, but I do not have it within me, as a former businessman, to impose further bank holidays, particularly on small businesses, unless there is a good reason to do so and the Department handles it much better than it has on this occasion.

The British Beer & Pub Association’s letter continues:

“Furthermore, the BBPA have already called on the Government to grant extended hours to pubs, so pubs can make the most of the celebratory weekend.”

That is what happened 75 years ago, and I hope the Government follow suit.

In summary—I am reluctant to keep people away from any activity they might want to pursue in the beer industry later this evening—I have no appetite to create further cost and disruption for small business. That is clear, and I spend my time trying to do what I can to support small businesses. In fact, I have spent a lot of time over the past four years arguing that the Government should improve the lot of small business by simplifying the tax system—scrapping business rates, for example—creating training opportunities and ensuring that businesses have affordable access to credit.

I have a record of wanting to support and promote small business, and I am not one to disrupt it any further, but I believe we should give the extra bank holiday on this occasion. The Business Secretary has given too little notice of the changes to the early May bank holiday. The Government should reinstate the bank holiday on 4 May and keep the planned bank holiday for 8 May that was recently announced to celebrate the 75th anniversary of victory in Europe.

I completely support the proposed bank holiday. The challenge for businesses, particularly in tourism, is that the Government have given just 11 months’ notice of this change, as if the 75th anniversary has come as some sort of surprise. I sincerely apologise to business, which can ill afford another bank holiday, but it is too late to scrap the 4 May bank holiday. The Government should reinstate it, and reinstate it quickly—hopefully in the next 15 minutes.

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

Before I call the Minister, I welcome the Assistant Serjeant at Arms, Nick Munting, to his position.

Net Zero Emissions Target

Derek Thomas Excerpts

Wednesday 12th June 2019 Commons Chamber

[Derek Thomas (St Ives) (Con)]

Cornwall was early in declaring a climate emergency, and it will be glad to hear today’s commitment, not least because of the opportunity to create well-paid, skilled jobs by doing the right thing. The Committee on Climate Change recommendations talk about a massive skilled jobs programme and we have seen the need for that today. We are talking about the roll-out of smart meters, which helps to address the climate change emergency; the need for storage, as we heard from my Cornish colleague; home efficiency improvements; and even the management of waste food. Those things all require new skills and existing skills that people do not have at the moment. Will the Secretary of State work with the Department for Education and, in particular, with the Treasury to make sure that further education colleges, which are well placed to deliver these skills, have the money and have it quickly?

[Greg Clark]

I will indeed do that. Let me give the example of the offshore wind sector deal, where one of the major commitments between the industry and government was to establish the skills needed in the supply chain to be able to create those jobs and allow the industry to flourish. This does not just apply to offshore wind; it applies across the clean energy sector. That is a good model for how to proceed.

Oral Answers to Questions

Derek Thomas Excerpts

Tuesday 11th June 2019 Commons Chamber

[Chris Skidmore]

It is important to put on record the content of the Government’s letter to the Committee on Climate Change. After careful consideration of the committee’s advice, the Government decided to hold in reserve a small proportion of over performance from carbon budget 2—88 megatonnes of a total over performance of 384 megatonnes. The reserve will act solely as a contingency. [Interruption.] I have 384 mega- tonnes, but I will happily correct the record when I look at the statistics. Eighty-eight megatonnes are being held in reserve and act solely as a contingency against changes in the baseline. This will be released once it is clear that it will not be needed to address any technical changes to the baseline. We have also asked the Committee on Climate Change to look at those technical changes. We would not have asked the committee to take forward work on net zero if we did not believe we will be able to implement this.

When it comes to the cost reduction, I entirely agree with the hon. Gentleman that costs have come down on technology and will continue to come down. The Committee on Climate Change has made it clear that it can be done within the envelope of 1% to 2% of GDP, as set out for the 80% reduction.

[Derek Thomas (St Ives) (Con)]

9. What steps he is taking to ensure that people can access post office services in rural areas.

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

The Government absolutely recognise the importance of post offices to rural communities across the UK. There are over 11,500 post offices nationwide, and Government subsidy safeguards post offices, which can be the last shop in the village, so that they can continue to serve their communities. The Post Office delivered almost £10 million of investment via the community fund between 2014 and 2018 to facilitate rural community branches to invest in their retail businesses.

[Derek Thomas]

I thank the Minister for her response but, unfortunately, there is one fewer post office today, as Porthleven post office in west Cornwall closes. Six months ago, the Minister said from the Dispatch Box that, guided by the Post Office, a mobile service will be available in west Cornwall to deal with the nine post offices that have so far closed and are now no longer available. Can she please tell me when we will get that mobile service so that people can once again access post office services?

[Kelly Tolhurst]

I thank my hon. Friend, who has long been a campaigner for post offices in his region. It is true that west Cornwall communities have been unduly inconvenienced, and he is right that the Post Office is now waiting for Cornwall Council to issue a formal permit to formalise the agreement. I have been assured that, due to the closure of Porthleven post office this morning, there will be a weekly mobile service in place very shortly. I just want to highlight that, with such a diverse network in many different locations and settings, it is true that some post offices will close due to unforeseen circumstances and lots of other reasons. It is important that the Post Office keeps up with that challenge to make sure our communities are well served.

--- Later in debate ---

[Jake Berry]

I agree with the hon. Lady that people like me and her, who have been born and brought up in the north of England for our entire lives, can see that European structural funds have made a real difference. That is why this Government, with their UK shared prosperity fund, are absolutely committed to driving jobs and growth not least across the north of England. On the consultation on the shared prosperity fund, 500 stakeholders have been consulted so far at 25 events and that has included consultation by me with the northern metro mayors and all other mayors. I look forward to working with the new North of Tyne Mayor in Newcastle not least on this but also to discuss how he can spend £345 million—

Mr Speaker: Order.

[Derek Thomas (St Ives) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

Since our previous questions, we have launched the west midlands local industrial strategy in Coventry, building on the region’s reputation for excellence in low-emissions vehicles, with further funding for the UK Battery Industrialisation Centre. Shortly after the recommendation by the Committee on Climate Change that we legislate to reach net zero emissions by 2050, Britain enjoyed its first ever coal-free fortnight since the industrial revolution. We will make our response to the committee’s report shortly to reaffirm our commitment to leadership in this important endeavour.

[Derek Thomas]

Most of us have hospitals, schools, council buildings and police stations in our constituencies. What more can the Government do to encourage the use of renewable energy in those buildings?

[Greg Clark]

My hon. Friend makes an excellent point on behalf of one of the sunnier parts of the country. The public sector energy efficiency loans scheme is open to public bodies so that they are able to invest in just that technology. I will ensure that he has the full details of that scheme, which might also interest the hon. Member for Ynys Môn (Albert Owen), given his question.

Oral Answers to Questions

Derek Thomas Excerpts

Tuesday 12th February 2019 Commons Chamber

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

The hon. Lady is correct to say that cyber-resilience must be a key part of our industrial strategy. I was in Northern Ireland last Friday to discuss with organisations how they could be involved in our AI programme and with setting up masters programmes in cyber-security.

[Derek Thomas (St Ives) (Con)]

T7. I was glad to hear of the Minister’s offer to visit the south-west and meet our hon. Friend the Member for Torbay (Kevin Foster). Will she continue all the way down to Penzance and meet post offices in my area that are threatened with closure or have already closed?

[Kelly Tolhurst]

I would love to come to Penzance if time permits—it is an area of the country I would love to visit—and I will continue to work with my hon. Friend to deliver post office services in his region. He is a passionate supporter of the Post Office and I welcome his support for me in my role as the Minister in that area.

Oral Answers to Questions

Derek Thomas Excerpts

Tuesday 8th January 2019 Commons Chamber

[Derek Thomas (St Ives) (Con)]

In my constituency, 85% of employees are employed in small businesses, which tell me they struggle to find the skilled workers they need. What can my hon. Friend’s Department do with the Treasury and the Department for Education to ensure that small colleges in particular have the funding they need to provide those skills?

[Richard Harrington]

As my hon. Friend knows, my Department is part of the picture; he correctly says the DFE is responsible for skills, but that is an important part of our industrial strategy, both nationally and locally. We are really pushing to put the skills agenda at the top of LEP programmes and everything else to do with that, because we realise, as he says, that small business will power the economy of the future.

Rural Post Offices

Derek Thomas Excerpts

Thursday 13th December 2018 Commons Chamber

[Derek Thomas (St Ives) (Con)]

Heamoor, Guval, Carbis Bay,  Leedstown, Praa Sands, Newlyn, Crowntown, Lizard, Porthleven, St Keverne: these are communities that have either lost their post office branch in recent history or where the branch is at risk of closure. I stand here today to call on the Government to make it clear that there is no post office closure programme. However, we must do more to secure the future of these rural post offices, and to do that we need to enjoy the confidence of sub-postmasters and the businesses that could consider hosting a post office counter in their outlet. I believe that large numbers of sub-postmasters have lost confidence in Post Office Ltd, and for businesses considering taking on a post office service within their current establishment, the word is out that it is not a viable business and they would do well to leave well alone. This is not something that I have stumbled upon recently. I have been working with post office branches, Post Office Ltd and local communities for over three years now, and despite an extraordinary effort by all concerned, including local Post Office Ltd personnel, we have not yet been able to resolve the difficulties faced by sub-postmasters. 

It is vital that we secure the future of the rural post office network which, as we know, is integral to rural communities, often forming the hub of commerce within their villages and providing banking and post office services to constituents who would otherwise be unable to access them. The problem of post office closures is not a west Cornwall issue alone, although I would argue that if we can resolve some of our particular challenges, such solutions could be applied elsewhere, strengthening the network for all who need it.

The National Federation of SubPostmasters, with which I have been working closely, informs me that in 2018 some 8% of post offices have seen temporary closure, with 66% of those closing due to the resignation of the postmaster. For many postmasters, the business is neither viable nor fair financially. That is particularly the case in rural constituencies like mine, and it has a profoundly adverse effect on customers who rely on the vital services that the post office network provides.

Earlier this year I sought the support of constituents in west Cornwall in calling on the Government and Post Office Ltd to make sure that sub-postmasters have a viable business, to force banks to pay sub-postmasters a fair price for their services, and to increase the services available to rural post office branches. I want to touch on those three areas and explain why they are so important.

During the campaign I contacted 10,000 people and received over 1,700 responses. That is a greater response than to any previous local campaign and shows how important the issue is to my rural constituency. Those who responded agreed with me that it is in everybody’s interest to have a viable post office network, which creates thousands of jobs and sustains communities. I am grateful to the communities right across west Cornwall and the Isles of Scilly who are so passionate about maintaining the post office network, and to the sub-postmasters, who work hard every day to provide a service and to provide access to good provision.

It is vital that the Government intervene to ensure that sub-postmasters have a viable business. Post Office Ltd takes responsibility for the post office network on behalf of the Government and it is falling short. This is despite the Government’s £2.4 billion investment in the network since 2012. People expect to get value for money. Overall remuneration to postmasters fell again last year, by £17 million, and is predicted to fall by a further £10 million. The rural post office network is not in a good place yet Post Office Ltd reported profits of £36 million in the year 2017-18.

I have been working with one particular community on the Lizard. The current arrangement, which ensures that the local community has access to post office services in the summer and also in the quieter winter period, cannot be maintained—and nor should it be—but the Post Office has spectacularly failed to find an alternative arrangement that maintains a service for the community and treats the current sub-postmaster, who has given several decades of his life to his community, with respect. In a meeting with the chief executive of Post Office Ltd on 24 April this year, I was assured of her commitment to find a solution, but there has been no further communication from her or her office. It has been left to the local community and local Post Office representative—whose responsibilities span the entire Duchy of Cornwall—to find a solution. So, three years on, there is no change.

I have now taken the fight to the Government. In a recent meeting with the Minister for Rural Affairs, I proposed a winter payment plan that recognises that the footfall over the winter is considerably reduced. That plan would help the businesses to be sustained through quieter off-peak periods. This would maintain the service for those who live in the area all year round, and ensure that the service is open when the visitors descend. I also stressed the need for a dedicated mobile service so that post office services can be provided quickly following a post office branch closure. Six of the seven post office closures in west Cornwall have left local residents with no easy access to post office services since their branch has closed. In fact, the one post office that enjoys a mobile service has had no service this week because of ill health. Even that post office, which provides temporary services for two hours, two days a week, has not provided those services this week. This is in Newlyn. It has a large community and is the fourth biggest fishing port in the country, yet is has no post office service.

I am grateful that Lord Gardiner and his officials agreed to meet the chief executive of Post Office Ltd to explore these demands. A post office branch must be a viable business for the owner, and I have long argued that Post Office Ltd has no vision or plan for rural post office services. It is now for the Minister to intervene and find a bespoke solution that supports post offices during the winter to maintain an essential service all year round. This is true not only for rural west Cornwall but for about 6,000 sub-post offices around the country.

Also, post office banking must pay. We are all acutely aware of the decline in high street banks. Now that most banking transactions can be made in a post office branch, this offers a real opportunity and a great plus for the post office network. In 2016, when it first became possible for banking services to be provided in post offices, it was a great leap forward and offered real hope and opportunity for many post offices. Post office banking has experienced strong growth of £20 million, as reported in the Post Office’s own financial report this year, but the reality is that only £3 million of that £20 million has filtered through to the postmasters. The industry average charge to a business depositing £1,000 in local and community branches of the Post Office is £10, of which the postmaster will receive only 24p for the transaction. In a larger branch, the figure rises to 37p per £1,000 transaction. For at least one of my former post offices, it was the banking that broke the camel’s back. The postmaster was taking the risk and the responsibility of handling tens of thousands of pounds every week but being paid only a few hundred a year for the privilege. That community no longer has a post office branch.

Another part of the campaign, which has received such support in my constituency, is that the Government and Post Office Ltd must maintain and grow post office services. The Government share some responsibility for the services that are available over a post office counter. As we speak today, the Department for Work and Pensions is writing to people who use their post office account to receive their money to encourage them to switch to a bank account. Those people can still do the transaction at the post office for as long as the post office survives, but the DWP is sending a worrying message regarding the Government’s commitment to the post offices by encouraging people to move away from the post office account.

I have met, and received some reassurance from the DWP Minister on this issue. The Government need to be taking steps that help our post offices and our vulnerable constituents, not creating confusion and divorcing our constituents from their source of support. For many, the post office is their only way of accessing the benefits system, and the Post Office relies upon offering this service to customers. Furthermore, sub-postmasters look out for vulnerable customers and often reach out to the lonely and isolated. Opportunities for someone to do that are becoming rarer in rural communities such as mine, so securing the sub-postmaster will secure not only the service, but provide the chance for someone to look out for the vulnerable and isolated in the countryside.

An added dimension and potential threat to the Post Office network that must be considered is that Royal Mail and the Post Office are different businesses facing different challenges. To maintain the Post Office in public ownership and enable private sector investment in Royal Mail’s letters and parcels business, Post Office Ltd was separated from Royal Mail Group Ltd in April 2012. To ensure the continuation of their existing business relationship, the management of Royal Mail and the Post Office put in place a commercial contract between the two parties at the time of separation with the longest possible contract length permitted by law. That commercial agreement is coming to an end, and negotiations on their future relationship have started. They complement each other well and are natural business partners. In fact, the chief executive of Royal Mail said it would be “unthinkable” that there would not always be a strong relationship between Royal Mail and the Post Office.

However, I understand that Royal Mail has already introduced a service whereby people post items directly through the counter at the sorting office, bypassing the post office, and is trialling a local collect service using a national convenience store rather than the post office network. It would not be right for the Minister to intervene in a commercial contract, but I plead with her to press the Post Office to ensure that it is doing everything to be competitive and to tender for vital services.

There is no time to waste. Thousands of post offices are at risk. This is an opportunity for the Government to reaffirm their commitment to local businesses and their recognition of the essential and valuable work of the rural post office network. For the sake of rural post offices and the many sub-postmasters both in my constituency and around the country and for all those who value and depend on post office services, my plea to the Minister is to ensure that sub-postmasters have a viable business, to work with the banks to ensure that they pay sub-postmasters a fair price for their services, and to ensure that every Department demonstrates a commitment, where they can, to increase the services available in rural post offices.

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

I congratulate my hon. Friend the Member for St Ives (Derek Thomas) on securing this important debate. He has been a passionate advocate for post office services in his constituency. We have spoken at great length about the post office network and have another meeting booked in for the new year. As he outlined, he has also met Lord Gardiner to discuss this topic. One of the best things about my role is being responsible for postal services—I know how important the post office is to all our communities, not just rural areas, so this is an important part of my responsibilities. For centuries, post offices have been the centre of social life in our communities, towns and villages. That is especially true in rural areas, which is why our 2017 manifesto committed to safeguarding the post office network and supporting rural services.

Between 2010 and 2018, this Government provided nearly £2 billion to maintain and invest in a national network of at least 11,500 post offices. The Post Office currently meets and exceeds all the Government accessibility targets at national level. Government investment has enabled the modernisation of more than 7,500 branches, added more than 200,000 opening hours a week and established the Post Office as the largest network trading on Sunday.

The Post Office’s agreement with the high street banks has enabled personal and business banking in all branches, supporting consumers, businesses and local economies facing bank branch closures, particularly in rural areas. The Post Office’s financial performance has improved significantly and, consequently, the Government funding required to sustain the network has drastically decreased and is set to decrease even further in coming years.

I encourage the House to look objectively at those facts, which clearly show that the network is as stable today as it has been in decades. We must remember that the post office network declined by 38% under the last Labour Government, with more than 7,000 branch closures.

Serving rural communities is at the heart of the Post Office’s social purpose. There are more than 6,100 post offices in rural areas, with nearly all the population in such areas living within three miles of a branch. Last year, Citizens Advice found that seven out of 10 rural consumers buy essential items at post offices and that almost 3 million rural shoppers visit a post office on a weekly basis. That is 31%, compared with 21% of people living in cities. Illustrating how important the post office is to such areas is the fact that almost half of rural post offices have community status. The post office is the last shop in some villages.

Rural branches, whether main branches, local branches or traditional branches, can offer the same products and services as urban branches of the same category. The Post Office recognises the unique challenge of running a community branch and supports such postmasters differently from the rest of the network. They receive fixed remuneration, as well as variable remuneration to reflect their special situation.

In addition, the Post Office delivered almost £10 million of investment via the community fund between 2014 and 2018, which enabled community branches to invest in their associated retail business. The Post Office has now launched a smaller community branch development scheme, which will benefit an anticipated 700 branches. Let me be clear that this Government and Post Office Ltd will continue to support rural post offices.

My hon. Friend will be interested to hear that network modernisation has led to the creation of 450 additional opening hours in his constituency, delivering greater convenience to consumers. However, I am aware that there have been a number of service issues in St Ives, and it is fair to say those issues have not been sorted as quickly as the Post Office would have liked. I fully appreciate how frustrating it is for a local community when post office services are interrupted.

In rural areas such as the St Ives constituency, when the shop in which the post office is based closes, there may be few other commercial premises from which services can be offered to consumers. In such instances, the Post Office explores how an outreach service run by a nearby postmaster can ensure the continuity of services for the community, such as via a mobile van.

For example, in my hon. Friend’s constituency the St Keverne postmaster will be extending the mobile visit timetable to provide services at—excuse my pronunciations if they are not correct—Heamoor, Gulval, Carbis Bay, Leedstown, Praa Sands and Crowntown over the coming months. Outreach and mobile services are highly valued by the communities they serve, as they offer all the same services as a bricks-and-mortar branch.

[Derek Thomas]

I thank the Minister for listing those places—she was not far off. Does she accept that it was the work that we have been doing as a local community to put pressure on the Post Office, and to bring this issue to the Minister and other Ministers, that finally got the Post Office even to consider that mobile service, which at the moment is not in place? Some of those villages have not had post office services for more than a year.

[Kelly Tolhurst]

I thank my hon. Friend for his point. He is right in what he says and I recognise that. I was going to come on to this later, but I will respond directly to his point now. The Government are the sole shareholder in the Post Office. It is right that we work with the Post Office, challenging it where necessary, and with constituency MPs and the community to make sure that we can deliver the right services for the community. As I always do when speaking about post offices at the Dispatch Box, let me say that we are committed to working with MPs and their communities, and we will continue to do so in order to maintain the branch network we have and to try to serve communities as best we can.

Outreach and mobile services are highly valued by the communities they serve, as they offer all the same services as bricks-and-mortar branches. They have been successful in taking key services such as everyday banking to customers, giving them vital access to cash in areas where there are no bank branches nearby. The Post Office directly contributes towards the costs of those outreach services, in conjunction with the postmaster running them, whose parent branch benefits from the transactional income accrued from the visits to outlying communities.

My hon. Friend raised important points about the specific challenge of running a post office in communities where seasonal trade and variation plays a significant role. I know that the Post Office listens to the community and the postmasters in St Ives by taking a more flexible approach to opening hours requirements across the year. That will allow branches to be more sustainable through the leaner, off-peak seasons, when their post office and associated shop has fewer customers. As he said, the issue was taken up by Lord Gardiner in his meeting with Paula Vennells, the Post Office’s chief executive officer, on 4 December. I understand that there will be a follow-up meeting with her in the constituency in the New Year to discuss this and other matters further. I am confident that this ongoing, frank and sustained engagement is the right way to proceed, so that the issues can be understood and a solution be provided for the benefit of postmasters, businesses and residents of St Ives.

Finally, I would like to take this opportunity to clarify some misconceptions about the Post Office’s franchising programme, particularly the assumption that franchising means closures and the downgrading of services. Those criticisms are misplaced. Post Office branches are not closing, but are being franchised, either on-site or by relocating to other high street locations. Franchising is nothing new; almost 98% of post offices across the UK are successfully operated by independent businesses and retail partners. Moving the directly managed Crown offices to retail partners has been instrumental in reducing losses in that part of the network.

My hon. Friend raised an important point on postmasters’ remuneration, especially for everyday banking services. As these services have developed and increased, I know the Post Office is looking at ways to better recognise the effort required of its postmasters for banking transactions. In fact, the Post Office has recently notified postmasters that their rates for banking deposits have been increased this year. I understand that the Post Office has now entered negotiations with banks on the next banking service agreement. The Post Office has reassured me that it will do all it can to ensure that postmasters are better remunerated for the vital services that they offer. I should add that the Post Office is picking up vital services in areas that banks have left. It is right that the Post Office does its best to make sure the banks accept the responsibilities involved and the work that post offices are doing on behalf of those communities and, we hope, properly remunerate them.

My hon. Friend also raised an important point about postmasters who cannot exit the business because of the absence of alternative operators to take over their branch. Although that is an operational matter, I assure him that the Post Office is taking it very seriously. As of November 2017, there were more than 450 branches of that type across the network. To help the remaining postmasters, the Post Office has extended the network transformation resignation timeframe to March 2020. That means that all parties can continue to work together to ensure that no communities are left without the invaluable post office services that they rely on. The postmasters affected will continue to receive both fixed and variable remuneration throughout that period. Where solutions are found, the postmasters concerned can leave while still qualifying for their leaver’s compensation.

My hon. Friend raised some particular issues relating to his constituents. I am not aware of some of the detail of those cases, but we are meeting in the new year, so I look forward to discussing those points and seeing how we can move forward.

I reassure my hon. Friend that all post offices across the network, including rural branches, are of the utmost importance to the Government. We recognise their value and importance, and we will continue to honour our manifesto commitments so that post offices can thrive and remain at the heart of our rural and urban communities. I thank my hon. Friend again for making his points, and for his hard work in support of access to post office services for his constituents. I assure him that I will continue to work with him and the Post Office to make sure that the constituents of St Ives receive the post office service that they deserve.

Oral Answers to Questions

Derek Thomas Excerpts

Tuesday 16th October 2018 Commons Chamber

[Greg Clark]

When the right hon. Gentleman was a Minister in the Business Department, he took part in a decision to defer revaluation, for reasons that he understands. I accept the point—it has been made strongly by the Retail Sector Council—that reflecting the contribution that high street businesses make to their communities is a significant need. As business rates are reviewed, that is one of the council’s recommendations that we will take forward.

[Derek Thomas (St Ives) (Con)]

The Secretary of State will know that I have been concerned about this issue for some time. I met a business on Saturday whose business rates, which are currently about £300 a month, will go up to over £1,000 a month next April. What can I take to that business to assure them that we are on its side?

[Greg Clark]

My hon. Friend can reflect on the fact that the Government have taken action to permanently double business rates relief from 50% to 100% and to raise the threshold from £6,000 to £12,000. That means that a third of all properties, including small shops, now pay no business rates at all.