Digital, Culture, Media and Sport

Debate between Lord Beamish and Margot James

Wednesday 28th March 2018 Ministerial Corrections

[Mr Jones]

I have no doubt that the Minister’s Department keeps the budget under review to see whether the Information Commissioner has enough resources, but what about how the money is spent in practice? As with many such quangos, the question is who is ensuring that the money is spent properly.

[Margot James]

The Information Commissioner’s Office has a financial controller, a board, and a chief executive. It is held to account not just by my officials, but by the Secretary of State and me.

[Official Report, Second Delegated Legislation Committee, 26 March 2018, c. 8.]

Letter of correction from Margot James:

An error has been identified in the response I gave to the hon. Member for North Durham (Mr Jones).

The correct response should have been:

Draft Data Protection (Charges and Information) Regulations 2018

Debate between Lord Beamish and Margot James

Monday 26th March 2018 General Committees

[Mr Kevan Jones]

It might have been a good idea to have consulted Members of Parliament, as my right hon. Friend the Member for Birmingham, Hodge Hill said. I am not calling for an exemption. The way it has been constructed is a waste of taxpayers’ money, because in addition to the cost of IPSA administering it, if people do not pay by direct debit, there is an extra £5 that can be claimed. That will add to the costs, which is silly.

[Margot James]

I shall take the hon. Gentleman’s views back. At the moment, there is a proposal to consult. If hon. Members feel we should just pay it through IPSA, that is a perfectly valid view.

The hon. Gentleman also asked about the Information Commissioner’s accountability for the budget. The majority of micro-payers—very small businesses and organisations—are exempt for various reasons, chief among them that they do not process very much personal data in their day-to-day duties. In my Department, we keep the ICO budget under review on an annual basis, to ensure that the budget is adequate for the Information Commissioner’s requirements, but not overly generous.

I think the Committee is more worried about whether the ICO will have sufficient resources. That was the concern expressed by my hon. Friend the Member for Windsor and the right hon. Member for Birmingham, Hodge Hill.

[Mr Jones]

I have no doubt that the Minister’s Department keeps the budget under review to see whether the Information Commissioner has enough resources, but what about how the money is spent in practice? As with many such quangos, the question is who is ensuring that the money is spent properly.

[Margot James]

The Information Commissioner’s Office has a financial controller, a board, and a chief executive. It is held to account not just by my officials, but by the Secretary of State and me. I meet with the Information Commissioner regularly, and we assess through various means whether adequate financial controls are in place. To date, the ICO has proved that they are. Obviously, a significant uplift of at least a third in revenue, and all the additional headcount that that implies, will be a moment of transition, where the sort of problems that we have seen in other organisations may emerge. We will keep a very close eye on that, to ensure that they do not.

My hon. Friend the Member for Windsor was concerned that there were not enough resources, and that £30 million was too low. We will keep that figure under review. Certainly, the events of the past few weeks have shone a torch on just how much could be demanded of the ICO. As well as increasing the budget, and enabling the Information Commissioner to increase the number of staff that she has at her disposal, we have increased her powers. The right hon. Member for Birmingham, Hodge Hill said that in Committee I walked back from the commitments that the Secretary of State gave to reviewing the powers that we have given the Information Commissioner in the Bill. We have strengthened her powers, and we have discussed with her her desire for greater powers. We debated that in Committee, and I confirmed that we would review her powers before Report. The Secretary of State and I are honouring that commitment.

draft Electricity Supplier Obligations (amendment and excluded electricity) (amendment) regulations 2017

Debate between Lord Beamish and Margot James

Monday 16th October 2017 General Committees

[Margot James]

I thank Committee members for their questions. I am very pleased that they agree with the direction of this important statutory instrument. In answer to the questions from several hon. Members, led by the shadow Minister, concerning the discrepancy in the notes on the increased cost of household bills due to this measure, the difference in estimates of an additional £1 and £1.80 to people’s bills is because the population of eligible energy intensive industries is less than we originally estimated. As a result, the burden on consumers has reduced from approximately £1.80 to £1 a year. In answer to another question from the shadow Minister, there have been no over-exemptions as yet, as the regulations have not yet been enacted. We have general powers to claw back any over-exemptions if needed, but we are looking at whether a specific mechanism would be helpful.

[Mr Jones]

There is a huge drop from £1.80 to £1. I understand what the Minister is suggesting, but what is the percentage drop for the industries that will be eligible? If it is of that order—nearly 100%—it must be quite big. Are the estimates wrong about the number of industries that would be eligible or, as the policy has developed, have certain industries been taken out of the process?

[Margot James]

The estimate was too high in the first place and it has reduced. I will look into the reasons for that and I will write to the hon. Gentleman. In his speech, he asked about the policy for this sector of the economy post-Brexit—might we pursue a more competitive approach vis-à-vis the rest of the European Union? I think that he is asking what our policy on state aid will be after we leave the European Union, and that is a matter for the negotiations.

I think I have addressed the questions raised by Committee members. The hon. Member for Bethnal Green and Bow said that the average increased cost of electricity for a medium business user would be £3,100 a year—she is correct on that point.

[Margot James]

For this measure to be cost neutral, the cost of exempting some energy intensive users has to be distributed fairly among businesses. For an average user—a medium-sized user—the uplift will be about £3,100. As yet, the Government do not have plans to mitigate that.

[Mr Jones]

What assessment have the Government made of what types of businesses will be affected? I see the logic of the draft regulations in helping energy intensive industries, many of which consist of large entities that I accept are in international markets, but £3,000 a year is a huge amount for a small or medium-sized business. Has any assessment been made of which businesses the burden will fall on?

[Margot James]

I said “a medium-sized user” of electricity; I did not mention small businesses. I agree that that would be a significant increase for a small business. We are developing a package of measures to support businesses to improve their energy use and productivity and to make them more energy efficient. That is how their bills will be reduced in the long term.

The average increase represents less than 0.5% of the total electricity bill of a medium-sized business. I feel that that is an appropriate price to pay for the benefit that energy intensive users will gain. The shadow Minister indicated the Opposition’s support for this measure. As she said, if we do not do this, high users of energy might be driven out of the UK, which would result in carbon leakage. That would not be a satisfactory outcome, so we have amortised the costs elsewhere. I think that 0.2% is a sustainable increase for the average medium-sized business user of electricity.

[Mr Jones]

I accept that, but I have to say that the Minister is flying blind here. Have the Government made any assessment of the businesses that will be affected? Do not get me wrong. I support the main thrust of the draft regulations, which aim to protect substantial users of electricity, but if the Government do not properly assess their effects we might protect one side of the economy but lose jobs elsewhere.

[Margot James]

Eligible energy intensive industries can also be small and medium-sized businesses. Very few of the vast array of companies across the country are exempt. The cost of the exemption will be amortised across many million businesses, so the average increase will be small, and the average company can bear that. I will write to the hon. Gentleman with any further information that we have that demonstrates the assessment that we have made of those companies.

I mentioned that we have developed a package of measures to support businesses to improve their energy efficiency. That aims to improve energy usage by at least 20% by 2030. We have also launched an independent review of the cost of energy, which I am sure the shadow Minister is familiar with. That review is led by Professor Dieter Helm and is all about helping companies to reduce their energy usage, which will be good for the environment and for company costs.