Newspaper Supply Chain

Debate between Jim Shannon and Priti Patel

Wednesday 19th March 2014 Westminster Hall

[Priti Patel (Witham) (Con)]

It is an honour to serve under your chairmanship, Mr Dobbin. I am grateful to Mr Speaker for granting this debate. I commend the Minister because this is her second debate in a row.

The issue of the newspaper supply chain and independent newsagents is covered by two Government Departments, so it is important that independent newsagents know which Minister and Department they can go to. I am delighted that my hon. Friend the Minister is responding this afternoon. I would be grateful if, in her response, she told us whether there are plans for one Minister to take the lead on this issue and oversee the policies that affect independent retailers.

Independent newspapers have been an integral part of many communities for decades. I am the daughter of former shopkeepers, and I spent more than 35 years living above a shop. My parents would go downstairs at the crack of dawn to open the shop, mark up newspapers and deal with the many challenges of the newspaper supply chain, so I have first-hand experience of the benefits to local communities of independent newsagents and the challenges of the newspaper supply chain.

Today is Budget day, so we should remember that our economy benefits from having prosperous, dynamic, independent newsagents; it is an important sector. Whether it is a friendly face at the counter who knows exactly what each customer comes in to buy, or a paper boy earning money for the first time and getting work experience—I have plenty of experience of delivering newspapers—independent newsagents offer high-quality, personalised services. As much as we welcome choice in where we shop, we all recognise that large supermarkets and online platforms do not do that.

Conservative Ministers deserve credit for taking action to support the sector. In particular, they have cut the small profits rate of corporation tax, increased the cap on business rates—that is an important step—cut fuel duty by more than Labour planned, reduced the burden on employers of national insurance contributions, and cut red tape, which has made a significant difference. The announcements in today’s Budget, apart from the usual increase in tobacco duty, with which we would not argue, also give independent newsagents a helping hand.

However, it is clear that over a number of years independent newsagents have faced difficult challenges that have forced many out of business. New tobacco controls have harmed responsible independent retailers. They have also driven many customers into the arms of illicit traders and smugglers, but that is a subject for another debate. The expansion of supermarkets brought more challenges. Changes to the newspaper and magazine market, including the expansion of existing newspapers’ online media platforms, new entrants to the market and the growth of free newspapers, have led to a decline in newspaper sales. The terms and conditions imposed on independent retailers by wholesalers are a part of the challenge they face.

I want to concentrate on the relationship between newspaper and magazine wholesalers and independent newspapers. The underlying trends and changes in how consumers digest newspapers and the news is highly relevant, because it has led to change in the marketplace.

Since the turn of the millennium, independent newsagents have suffered a fall in sales caused by the emergence of free newspapers—we all pick them up—that target the commuter market. The Metro and the Evening Standard, which are available in railway and underground stations, are two prominent examples. However, newsagents have also felt the impact of technological changes; more and more content is available online. All the main newspapers now invest heavily in their online platforms, which are updated minute by minute, particularly on Budget day. The growth in the use of smartphones and tablets has enabled news groups to provide news in a much more user-friendly way. Consumers are able to seek out and read news stories on other platforms, such as blogs. As a result, hard copy sales are falling. In the past two years alone—between March 2012 and February 2014—sales declined by 16% from 18.3 million to 15.4 million.

Despite the challenges that those changes pose to the traditional ways of selling newspapers, there are still some positive features for independent newsagents. Many people still go to their newsagent on the way to work and value the service they receive, and national news groups still see a role for print editions, which is important for independent newsagents. Few of us would find fault in news groups’ entrepreneurial and commercial decisions to use new technologies—we have all got to embrace new technology—or the cost-effective ways in which consumers digest news.

However, an issue that needs to be addressed, which places independent newsagents at a disadvantage and hampers their ability to compete and respond, is the wholesalers’ control of the newspaper supply chain and their vice-like grip on independent newsagents. The Minister is aware of the campaign that the National Federation of Retail Newsagents, the Association of Convenience Stores and many others in the sector ran to raise awareness about the lack of competition in the wholesale market. The are only two main wholesalers that operate in Great Britain: Smiths News and Menzies Distribution. They operate in what can be described only as a near monopoly, or near duopoly. National publishers of newspapers and magazines sign exclusive distribution rights deals with those wholesalers. Prices are set and there is no scope for independent newsagents to get involved in the negotiations, so their voices are not heard. A third wholesaler, Dawson Holdings, ended its magazine and newspaper distribution activities in 2009 after losing out on contracts with publishers.

Smaller independent wholesalers that traditionally operate at a local or regional level have been squeezed out as publishers have concentrated their contracts with Smiths and Menzies. As a result, if a newsagent wishes to trade in newspapers, they are effectively at the mercy of the wholesaler when it comes to terms and conditions, the quality of service—which many newsagents would question—and charges.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady for raising this issue. Like her, I have been contacted by constituents and small newsagents who are penalised by Menzies and other wholesalers, and have had their contract conditions changed without negotiation or consultation. Will the Minister respond to that issue? If an independent newsagent has a contract, how can they be charged extra money without consultation? There is no thought for the independent newsagent, who makes little money as it is.

--- Later in debate ---

[Priti Patel]

I completely agree with the hon. Gentleman. The shops that we are talking about are the lifeblood of many communities. I have seen, over 35 years, a massive change; there is no doubt that we have seen many big changes. Increases in carriage charges are relevant not only to Great Britain but to Northern Ireland. Newsagents there have faced huge increases in the past 12 months alone. I would be interested to hear from the Minister about where there is scope to review the changes to carriage charges.

[Jim Shannon]

On that subject, the costs in Northern Ireland are exorbitant—I believe they are greater than here on the UK mainland. Independent newsagents have informed me and other elected representatives that it is getting to the point where they will have to decide whether to carry newspapers at all, because the margins are so tight. At the end of the day, it does not add up. Let us be honest: small shops are selling perhaps 100 newspapers, or 200 at the very most—there is no profit in that.

[Priti Patel]

The hon. Gentleman makes a really interesting point. I make it my business to visit many independent shops, particularly newsagents, and I always ask about the number of newspapers they are selling. The figures are staggering, because they are declining at such a rate. I remember, when I was a child, the bundles of our Sunday newspapers being enormous—we were dealing with hundreds and hundreds of newspapers on a weekend alone. That landscape really has changed completely.

Along with all the additional costs, independent retailers are frustrated by the appalling service that they receive from wholesalers. Of course, that has a knock-on effect on their business and the quality of service that they can offer to their customers. When their newspapers are delivered late, people stop going to those shops. I hear many reports from newsagents about late paper deliveries. Other newsagents find that the wholesaler has given them the wrong order or the wrong number of newspapers, or that the supplier has gone to the supermarket down the road, and not to their shop.

Although there is a process by which a newsagent can complain, it does not change a thing. It just adds to the stress and frustration of running a business. Newsagents feel increasingly powerless to get redress for their situation. With the latest promotion by one supermarket chain—it gives away free newspapers to customers spending more than £5—the squeeze is being felt even more. Will the Minister update us on what action the Government are taking to investigate possible abuses in the supply chain and to ensure that independent retailers are not unfairly disadvantaged?

In conclusion, independent newsagents, some of which are dependent for 75% of their business on newspaper sales, deserve to be treated with fairness—the debate is all about fairness in the supply chain. Unless changes are made to boost competition and give them a fair deal, including involvement in negotiations and decision making, more and more newsagents will struggle to compete. We will see more withdraw from the marketplace because they will not be able to survive, and our communities will be much poorer as a result. One newsagent put it clearly:

“the big point that needs to be made is that falling sales, shrinking margins and disproportionately high carriage charges will before long drive many smaller news retailers out of the market, to the detriment of consumers—notably the elderly who may not be tech-savvy and digitally aware of the alternatives to print editions.”

I hope that the Minister will give due consideration to the points I have made, and will help us to see what can be done to support the future of independent newsagents. These are small and micro-businesses, and the Government are doing great things for similarly sized companies. The issue should be reviewed by the Competition and Markets Authority, and the Government should work with newsagents to assess the reforms that are long overdue. I look forward to hearing what the Minister has to say.

Immigration Controls

Debate between Jim Shannon and Priti Patel

Tuesday 22nd October 2013 Westminster Hall

[Priti Patel]

My hon. Friend is absolutely right. As I touched on earlier, immigrants are entrepreneurs and business people, and immigration touches on the skills agenda—another issue we could debate for a long time. Where people make a positive contribution, we should find the best routes—the right routes—to make them welcome and support them in visa applications and so on. We must be proactive on that front, but we can only do that and change the system in their favour once we have tackled the catalogue of problems, some of which I have highlighted.

The devastation left by the Labour Government was so great that we cannot overestimate the challenges faced by the Government and the Minister. Repairing the damage will no doubt take a long time. Labour’s legacy can still be seen across the country. I am sure that many hon. and right hon. Members see cases in their constituencies involving immigrants who have been deemed to have no right to remain in the UK, but, quite wrongly, pursue every legal avenue to remain here. In my constituency, there have been cases of immigrants who have outstayed their welcome. Such cases demonstrate the systemic failures of the controls put in place under the previous Government. I could reel off many cases, but I have a couple that I would like to highlight.

One lady from the Philippines was granted permission to enter the country in 2006 on a 48-month work permit to work in a care home. Since then, her husband, family and children, who have gone to local schools, have all come over. Once the visa expired and she was asked to leave, little action was taken, so the family remain in the UK. Last summer, the case was brought to my attention and an appeal to remain in the UK was rejected. To avoid deportation, the family lodged a further application to remain in the UK on human rights grounds in January this year, which was refused in June. The case is now going on and on. In July, they lodged another appeal, which is still pending. If that appeal is rejected, the family may undertake another appeal and prolong the process even more. Surely that cannot be right.

Another case in my constituency that has been ongoing for years involves a family from Nigeria who are here without any right to remain. They were informed that they should leave the UK two years ago, but they, too, embarked on a series of applications and appeals. Such actions are all about delay and prolonging the process for people who have no right whatever to remain in the country. That undermines public confidence in the immigration system. A stop must be put to repeated applications and appeals.

I welcome the measures in the Immigration Bill to limit the number of appeals that immigrants make. I urge the Minister to look at ways of going further in speeding up cases—the issue is the efficiency and effectiveness with which cases are determined—so that those who are deemed to have no right to remain in the UK can be removed without delay. Once someone has lost their case or appeal, unless there are genuinely exceptional circumstances, there is no reason why they should not leave voluntarily or be deported, if that has to be done, within a couple of weeks. They should certainly not be here for a prolonged period. That would obviously restore public confidence in the system and send a powerful signal to those who have abused the system. It would send a message that Britain is not a soft touch and will take tough action.

I also welcome the approach that will be taken to deporting foreign criminals before their appeals are held. I ask the Minister to consider extending that approach to other persons staying in the UK illegally and involved in repeat applications and appeals. An aspect of immigration controls that greatly concerns my constituents and the wider public is the way foreign offenders, prisoners and terrorists are able to remain in the country, despite the overt threat they pose to public safety and national security. The Abu Qatada case is symbolic of the wider problem with immigration controls and human rights laws: judicial activism and judgments from Europe that, frankly, undermine this country. We should be able to remove the likes of Aso Mohammed Ibrahim, who killed a 12-year-old girl, and serial Somali criminals Abdisamad Adow Sufi and Abdiaziz Ibrahim Elmi, without the courts and human rights laws interfering and our courts being lectured on what we should be doing.

Killers, sex offenders, violent criminals, persistent offenders and supporters of terrorists should face the automatic expectation of deportation. They should not expect to be protected by the ridiculous interpretations of human rights laws that the European Court of Human Rights, and sometimes even our own courts, provides. We should have a prison-to-plane approach, whereby foreign national offenders who have served custodial sentences are removed. When they leave prison, they should be taken to an airport and deported at the earliest opportunity. My constituents and the British public would feel greatly reassured if they knew that such dangerous criminals were not able to set foot again in our country and their communities. I welcome the fact that the Government are taking the matter seriously; that is shown in the way that they are initiating deportation proceedings sooner. As a result, the average time taken to remove a foreign national offender following the completion of a custodial sentence was lowered to 77 days in 2011. We still have 11,000 foreign national offenders in our prisons and thousands more who avoid custodial sentences.

The Minister knows of my concern about the fact that more than 3,100 foreign nationals who are subject to deportation orders are still in the country. Shockingly, that includes 2,300 people who have been on the list for more than a year, 25 of whom have been here for more than 10 years. Every day, hard-working British taxpayers are left to pick up the hefty bill for legal costs and other expenses for those individuals. We must put an end to it, and if that means going further on the Human Rights Act, reforming the European convention on human rights and taking unilateral action to defend parliamentary sovereignty from European judicial activism, my constituents and the British public would expect nothing less from a Conservative Government acting in the national interest.

I urge the Minister and his colleagues in the Ministry of Justice to look at ways to deport European prisoners to their countries to serve their sentences. As he is aware, the Council of Europe convention on the transfer of sentenced persons enables European national prisoners to be deported to serve their sentences in the country of their nationality, but unfortunately, it is a voluntary agreement. There are 4,000 or so European national prisoners in our jails, but only 138 applications were received in 2011, with 127 being referred to other jurisdictions for consideration. The numbers being deported under the convention are too small. In 2007, 111 prisoners were deported, but that number is declining and has since dropped, meaning that not even 1% of European national prisoners serve their sentences in their own countries. Slightly more than 1,000 foreign national offenders from the European economic area were deported in 2011. I hope that the Minister will make that issue a priority in his discussions in Europe and seek to secure the deportation of more European national offenders.

The final aspect of immigration controls I shall raise relates to immigration from Europe. The free movement of goods and peoples is an important principle of the European Union, but the unrestricted access given to European nationals has added significantly to our population and the strain on public services. Of the 2.7 million residents in this country who were born in other EU countries, 1.1 million are estimated to have been born in those countries that joined the EU since 2004. In 2003, more than 500,000 nationals from other EU countries and 50,000 from countries about to join in 2004 were employed in the UK. By 2011, that number more than doubled to 1.29 million, which included more than 700,000 nationals from the 2004 intake of member states and more than 500,000 from the pre-2004 accession.

On top of that, there are an estimated 600,000 economically inactive EU nationals in the UK, many of whom will be accessing public services and benefits. This morning, I read that one person in 25 claiming jobseeker’s allowance is an EU immigrant, so the pressure on the public purse and public services is clearly enormous. Meanwhile, child benefit is being paid in respect of 40,000 children living in other European countries.

It cannot be right that our country faces an uphill battle, and legal action with Europe, to reduce some of the benefits being paid to EU nationals. I encourage the Minister and the Government to consider how we can renegotiate the position with Europe to bring common sense and sanity to our immigration controls, so that they do not prevent the working of the free market but enable us to limit immigration, prevent abuses of free movement rights and remove those who should not be here and are pushing the boundaries by accessing benefits and public services.

I also press the Government to make greater use of the powers already available through the free movement directive to restrict the right of entry and the right of residence on the grounds of public policy, public security or public health. It is almost inevitable that we would be challenged by the European Commission for doing so, but there are many cases, especially involving European national criminals, where we must take a firm approach and give the public confidence.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Lady for bringing this matter before the House for consideration. I apologise for not being here at the beginning of the debate; I had problems with the tube and was 45 minutes behind time. I understand that there is a top 10 list of countries that contribute to the crime rate in the United Kingdom. Not all of them are European; they are: Poland, Romania, Lithuania, Nigeria, India, Jamaica, Somalia, Portugal, Pakistan, and our neighbour, Ireland. Does she feel that the Minister should focus on those top 10? If we can deal with the top 10, we will deal with the majority of the crime rate.

[Priti Patel]

I thank the hon. Gentleman for his timely intervention. I was about to come to that list. It is right that we start focusing. There has been too much generalisation in the past, so we need a focus on some countries.

I have urged the Minister to take firm action on European national criminals. I also urge him to consider the transitional controls on Romanian and Bulgarian immigrants. The transitional controls are due to expire at the end of this year. First, immigration is about sustainability, and Britain cannot sustain or cope with a large influx from eastern Europe. Secondly, criminal gangs are an issue that is well documented; the hon. Member for Strangford (Jim Shannon) read out the list of countries. In the last 10 days, we have seen reports of Romanian criminal gangs committing crimes. They are flying into some of our airports daily. The experience of the last decade has led the public to feel anxious about new waves of immigration. This is an opportunity for the Government to reassure the public and give confidence about the new accession countries.

It is almost inevitable that we will feel the impact of new countries’ accession to the free movement directive. The Minister knows as well as anyone that more action is needed to establish an immigration system that is finally fit for purpose and has public confidence. The Government are taking the right steps towards creating a system of controls that enables wealth creators and entrepreneurs—those who want to make a positive contribution—to come to our country, as well as tourists, whom we invite, while keeping out people who should not be here. Once the excellent new Immigration Bill has gone through Parliament, I trust he and his ministerial colleagues will continue to focus on strengthening our immigration controls and taking action to secure our borders. As I have stated throughout this debate, we must send out positive messages to those whom we should welcome to this country and, importantly, reassure hard-pressed British taxpayers that we are fixing the broken system. We should give the public confidence in the immigration system.

East of England Ambulance Service

Debate between Jim Shannon and Priti Patel

Tuesday 25th June 2013 Westminster Hall

[Priti Patel]

My hon. Friend’s assessment of the culture in the NHS is absolutely correct. Let us not forget that the Under-Secretary of State for Health, my hon. Friend the hon. Member for Central Suffolk and North Ipswich, alluded to the rotten culture in the NHS. I will come to the fact that cultural change is required and that we must stop this revolving door and this recycling of people in the NHS.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Lady on bringing this matter to the House. Although the debate is specifically about the East of England Ambulance Service NHS Trust, the same rationale applies across the whole of the United Kingdom of Great Britain and Northern Ireland. The response by paramedics relies on data and modern technology, so it is important that funding restrictions do not limit what they can do. Does the hon. Lady feel that it is essential that funding is always available so that they can do the work they need to? Does she also feel that training is important?