Whistleblowing
Debate between Kelly Tolhurst and Kevin Hollinrake(5 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)
I thank the right hon. Member for North Norfolk (Norman Lamb) and my hon. Friend the Member for Stirling (Stephen Kerr) for securing today’s important debate. I should also like to congratulate the right hon. Sir Norman Lamb on his knighthood, in recognition of his commitment to public service. I thank all hon. Members for their contributions today, and for the passion that they have expressed in voicing the concerns and putting their arguments on UK whistleblowing policy.
The Government recognise how valuable it is that whistleblowers are prepared to shine a light on wrongdoing. That is important at an organisational level but also, more broadly, for society, so that issues such as abuse of power are brought to light. This afternoon, stories have been shared in the House of people who, having acted as whistleblowers, have been disadvantaged and experienced severe detriment.
Effective whistleblowing policies enable workers to speak up, to prevent wrongdoing and fraud. That helps to protect employers from financial loss and reputational damage, and builds their trust with customers. Those who blow the whistle should be able to do so without fear of recriminations. Employment protection enables workers who have blown the whistle to seek redress if they are dismissed or suffer detriment at the hands of the employer because they have made what is called a “protected disclosure” about wrongdoing that they have witnessed at work.
I can assure hon. Members that over recent years the Government have taken steps to support a cultural change in relation to whistleblowing in all sectors. A number of statutory and non-statutory improvements have been made. Those include the publication of guidance for whistleblowers on what they need to do to make disclosures while preserving their employment protections; and guidance for employers, including a non-statutory code of practice.
My hon. Friend the Member for Stirling and the hon. Member for Oxford East (Anneliese Dodds) mentioned guidance. The hon. Lady spoke about the extent to which MPs have clarity in dealing with people who come to them for advice. I would like to go away and see whether there is any kind of guidance that we might publish, particularly for MPs, to improve our ability to help our constituents.
Kevin Hollinrake
The Minister heard some of my comments about the Financial Conduct Authority and its, at best, quite tepid approach to whistleblowers. What are we to do when, effectively, an agency that is commissioned by the Government does not follow through on its whistleblower obligations?
Kelly Tolhurst
I thank my hon. Friend. I was preparing to come on to that, but he is absolutely right—the FCA falls under the control of Her Majesty’s Treasury. I shall go into greater detail later, but I want to meet HMT to raise with it some of the concerns that have been voiced today in the House about the FCA and whistleblowing policy.
Oral Answers to Questions
Debate between Kelly Tolhurst and Kevin Hollinrake(5 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Kelly Tolhurst
I am happy to meet the hon. Lady to discuss this, but I would like to reaffirm the Government’s commitment to upgrade workers’ rights, protecting the most vulnerable workers. Our legal framework already ensures that employers should always treat their employees fairly, and our good work plan will introduce the biggest upgrade in workers’ rights in a generation. In the retail sector specifically, the industry-led Retail Sector Council has identified that employment is a key priority for the workstream and we will be discussing that on 20 June.
Kevin Hollinrake (Thirsk and Malton) (Con)
At the last BEIS questions, my right hon. Friend the Business Secretary gave a positive response to my suggestion of a wide-scale roll-out of solar on every public sector building—every school, hospital and prison. Is he interested in taking that proposal forward?
Oral Answers to Questions
Debate between Kelly Tolhurst and Kevin Hollinrake(5 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Kevin Hollinrake (Thirsk and Malton) (Con)
Kelly Tolhurst
My hon. Friend is a passionate campaigner in this area and for his constituents, and he knows that I would particularly like to tackle this matter. Insolvency practitioners must adhere to the insolvency code of ethics and must not allow conflicts of interest to override the fundamental principles of objectivity. Breaching the code may result in regulatory action, such as a fine, reprimand or, in the most serious of circumstances, the removal of a licence. The code is currently being updated by the recognised professional bodies that license insolvency practitioners, but I will continue the dialogue with my hon. Friend on this matter.
Oral Answers to Questions
Debate between Kelly Tolhurst and Kevin Hollinrake(5 years, 8 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Peter Heaton-Jones (North Devon) (Con)
Kevin Hollinrake (Thirsk and Malton) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)
In the past five years we have halved late payments and through our call for evidence we are looking at what more we can do to end the scourge of late payments affecting small businesses. In January, we announced £2 million of funding for our business basics programme, supporting 15 innovative projects. We continue to do that as we try to improve productivity.
Kelly Tolhurst
My hon. Friend is absolutely right. North Devon is a wonderful part of the country. The tourism sector is particularly important for our economy, providing 1.6 million jobs across all regions and contributing £67.7 billion in gross value added. The Government are committed to supporting the sector and to continuing to work with small businesses through our industrial strategy and the sector deal that is under way.
Kevin Hollinrake
Sadly, HBOS managers were found guilty of defrauding their own small business customers, yet the Financial Reporting Council has steadfastly refused to seriously consider whistleblower evidence that KPMG and the bank colluded to cover up bank losses partly attributable to that fraud. What will my hon. Friend do to ensure that this matter is seriously investigated?
Kelly Tolhurst
My hon. Friend raises a really important question. There have been several criticisms of the FRC, which is why the Secretary of State commissioned Sir John Kingman to lead a review of the regulator. We are taking forward Sir John’s recommendations to create a stronger regulator with stronger powers. I assure my hon. Friend that I will continue to meet him on the particular issue he raises, so that we can find a resolution.
Oral Answers to Questions
Debate between Kelly Tolhurst and Kevin Hollinrake(5 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Kevin Hollinrake (Thirsk and Malton) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)
It is right that the FRC refers any concerns it has relating to the insolvency case to the ICAEW, which is a recognised professional body that regulates insolvency practitioners. In this case, I understand that the ICAEW has considered the issues put forward and is investigating a number of matters. I will happily meet my hon. Friend to discuss this issue again, as I already have. It is right that we investigate any concerns that British businesses have about the regulations.
Post Offices (North Yorkshire)
Debate between Kelly Tolhurst and Kevin Hollinrake(5 years, 12 months ago)
Westminster HallRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)
It is a pleasure to serve under your chairmanship for the first time, Sir David.
I congratulate my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones) on securing this debate on post office services in North Yorkshire. He has been an energetic and passionate advocate of post office services in his constituency. Post offices play such a vital role at the heart of our local communities, so it is only right that we have opportunities to debate the Post Office and the services it provides locally. The Government recognise and value the economic and social importance of post offices, in particular to communities in North Yorkshire. That is why our manifesto made a commitment to safeguard the post office network and to support the provision of rural services.
I point out that I am the Minister with responsibility for post offices, so it is right for me not only to champion the Post Office but to listen to hon. Members’ concerns. I, also offer challenge directly to Post Office Ltd in our role as its Government owner. I will first look at some facts.
Between 2010 and 2018, the Government provided nearly £2 billion to maintain and invest in a national network of at least 11,500 post offices. Ninety per cent. of the UK population must be within one mile and 99% within three miles of their nearest branch. Government investment has enabled the modernisation of more than 7,000 branches, added more than 200,000 opening hours per week and established the Post Office as the largest network trading on a Sunday.
Kelly Tolhurst
I will make some progress first.
Post office banking services enable 99% of personal and 95% of business banking in any one of 11,500 branches, supporting consumers, businesses and local economies in the face of accelerated bank closures. Financial performance has improved, as my hon. Friend the Member for Harrogate and Knaresborough outlined, from a loss of £120 million to a trading profit of £35 million in financial year 2017-18, thereby reducing Government funding from £415 million in 2013-14 to £50 million by 2020-21.
I encourage the House to look objectively at those facts. They clearly show that the network is at the most stable it has been in a generation. All that has been achieved notwithstanding increasingly challenging trading conditions in the Post Office’s core markets and in the wider retail sector. The Post Office offers a huge range of products and services to the UK public, while ensuring that those services remain at the heart of towns and villages throughout the country. In doing so, it offers great value for money for the taxpayer.
Finally, we recognise that changing consumer behaviour presents a significant challenge for small retailers, including the many postmasters up and down the country. In the Budget last week, therefore, we announced a one-third reduction in small retailers’ business rates bills for two years from April 2019. A retailer could save up to about £8,000 per property per year, which will benefit a range of retailers, including post offices.
Kelly Tolhurst
As I said before the debate, I am happy to look at York specifically in the future, asking any questions that the hon. Lady might have of Post Office Ltd directly.
I appreciate that the proposed changes to the delivery of post office services can cause much concern to the communities affected. Post office branches, however, are not closing but are being franchised, whether on site or to be relocated to high streets. Franchises typically provide the same range of post office services as those offered at Crown branches.
Working with a retail partner is a sensible response to the challenges faced by our high street retailers, with the benefit of shared overheads across the combined post office and retail business, including property and staff costs. Franchising is a part of the Post Office’s strategy to ensure that the network is secure, sustainable and successful in the long term. In fact, more than 90% of post offices throughout the UK are operated successfully by independent businesses and retail partners.
Moving the directly managed Crown offices to retail partners has helped to reduce the losses in part of the network from £46 million as recently as four years ago to break-even today. I must stress that franchising is not about closing branches, but about moving a branch to a lower-cost model while continuing to offer high-quality service, more convenient hours and better locations. I understand that my hon. Friend the Member for Harrogate and Knaresborough has questioned location, and we can look at that, but Citizens Advice found that franchised branches deliver the same or better standards of service to the customer.
Regarding the recent WHSmith announcement, the communities of Harrogate and Knaresborough, as well as other communities in North Yorkshire, are not losing their post offices, which will be relocated to WHSmith branches, making services more accessible to customers.
Kevin Hollinrake
The Minister makes a good point on the Government’s support for the post office network. The concern is where, because of the closure of banks, post offices end up being the only physical premises at which someone can bank. If the Government were to withdraw their support, those towns will have no banking service. Can we do more either to stop banks closing the last branch in a town, or to give longer-term support to post offices to ensure that that does not happen?
Kelly Tolhurst
My hon. Friend makes an important point about the role that post offices play in the banking sector. As he knows, the Post Office and the banks have an agreement about the enjoyment of post office facilities for use in offering services traditionally provided by high street banks. The Post Office is in negotiation with the banks to renew that agreement. As the Minister responsible, I have been clear about what I believe: the Post Office needs to benefit; customers need to benefit from a banking framework; and the banks need to accept their responsibility for the role now being played by post offices.
For example, those WHSmith changes will add four and a half hours to the opening time of the Harrogate branch in the constituency of my hon. Friend the Member for Harrogate and Knaresborough. Rest assured, however, that the existing branches will continue to serve the community until the changes are finalised by the Post Office.
My hon. Friend is right that the Coal Bath Road post office closed on 1 October. Post Office Ltd is committed to delivering a new partner or provider for that branch. There have been commercial issues with regard to provider and post office. Sometimes, unfortunately, contractual matters get in the way, but I absolutely accept that it is something we want to deliver.
With regard to the process, my hon. Friend is right that Post Office Ltd will carry out the consultation from tomorrow. Again, I request that anyone who can puts in a response to the Post Office, because it has to look at the consultation to ensure that it answers the questions and deals with the concerns expressed by the community. I will, however, raise the questions of process directly with the Post Office. He is right to challenge me as the Minister responsible to pass that challenge on to the Post Office.
The Post Office runs local consultations to engage local communities and to help shape its plans. That is in line with its code of practice on changes to the network. Citizens Advice reported that the process is increasingly effective, with improvements agreed or reassurances provided in most cases, demonstrating that the Post Office listens to the community. I know that the Post Office will continue to engage with local communities and to consider all options to ensure provision of sustainable post office services before its plans are finalised.
My hon. Friend wants the Post Office to consult on the concept of franchising before it consults on any new locations. However, these decisions must be commercial ones for the business to take within the parameters set by Government to ensure we protect our valued network. Post offices operate in a competitive environment and we should allow the business to assess how best to respond to the challenges it faces in order to meet our shared ambition of securing post offices for the future.
On the reduction of services that my hon. Friend thinks is taking place, he is correct that the biometric enrolment for UK Visas and Immigration, which is currently available at 99 branches, is not easily transferrable. He is absolutely right that that agreement is directly with the Home office, and it will obviously cause him concern.
I understand my hon. Friend’s concerns about first floor access for the disabled to the WH Smith and that post office, and about car parking. We need hon. Members to challenge the Post Office about those directly to ensure that it provides accessible centres within our communities.
Finally, the Government are completely committed to ensuring that we strengthen and support our post office network throughout the UK. To date we have done that effectively and kept branches open, of which I and the Government should be proud. We have seen a reduction, but we should celebrate what we have done.
We want our post offices to remain at the heart of our communities. We want them to provide services that are more accessible for our communities. They have always been at the heart of our communities and I hope they remain so. As the Minister responsible, I assure my hon. Friend that I will do my best to ensure that the Government—the owner of Post Office Ltd—duly represent our constituents regarding any issue he raises about the post office network. I am happy to have further conversations with my hon. Friend over the next few weeks as the consultation progresses. I will happily meet him and any other hon. Member any time to discuss the consultation and any changes.
I thank my hon. Friend for securing this debate. It has been an opportunity to challenge the new franchise system but also to celebrate what the post office system is doing and the value that post offices bring to our communities. Without them, we would be in a very different place. It is absolutely right that the Government continue to back the Post Office. I thank my hon. Friend for giving me the opportunity to mention the individuals who work within the post office network, who are integral to ensuring that those services are delivered day in, day out throughout the country.
Question put and agreed to.