(9 years, 4 months ago)
Lords ChamberI can confirm that this Government, elected only a few weeks ago, are actively considering the matter.
My Lords, the vast majority of the British Hindu and Sikh community are outraged at this amendment to the Equality Act. Does the Minister agree with the Hindu organisations that implementing this amendment would be a blow to community cohesion in this great country and that the Government should legislate to remove it from the statute book?
I agree with my noble friend that the issue is divisive. There is a strong lobby both for and against, and the Government are very concerned not to exacerbate the problem. Therefore, the present position, whereby protection from caste discrimination is developing naturally through case law, is very helpful.
(10 years, 4 months ago)
Lords Chamber
To ask Her Majesty’s Government what steps they are taking to increase trade with China.
My Lords, trade with China is at record levels. The Government are committed to helping even more British companies to do business in China. We have invested significant additional resources into UK Trade & Investment and the China-Britain Business Council that will substantially increase the support available for British companies. The Prime Minister, the Chancellor and the Secretary of State for Business, Innovation and Skills have all led large trade delegations to China.
I welcome the Minister’s reply. My question relates to visa applications. When the Chancellor of the Exchequer, George Osborne, visited China recently, he vowed to address the visa difficulties confronting Chinese tourists, business employers and students wanting to come to Britain. Will my noble friend kindly update the House on what progress has been made to ameliorate these difficulties? Also, having visited Birmingham International’s extended runway yesterday, where he witnessed the inauguration of a direct flight from Birmingham to Beijing, will my noble friend welcome that extra airport capacity, and will he use his office to ensure that Chinese airlines use it?
The noble Lord raises an important question on the subject of visas and tourism. Tourism is our fourth-largest export earner. The number of UK visas issued to Chinese nationals continued to rise in 2013. We have issued 373,000 visas to Chinese tourists and have increased the number of students coming to the UK to the tune of 14%. We encourage Chinese students to come and study at our best universities in the UK. As regards airport capacity, which has been an issue for a long time in this House, yes, we do have a capacity issue with airlines, but I am pleased to say that I was able to receive the first chartered flight from Beijing to the regional airport in Birmingham yesterday morning.
My Lords, the Government recently announced that 60 new Foreign Office staff have been placed across China. Can the Minister give me an update on that? Hopefully, the numbers are increasing, the staff will be more widespread throughout China and increased language training will be part of the approach. Do the people involved have experience in business, particularly to help small businesses to trade within China?
My Lords, small businesses are the engine of the economy. I am pleased to say that we have a large number of people from UKTI now based in our Chinese embassy. English is an international language, but it is important that they all learn Mandarin as well. Language plays an important part in bridging the gap between us and the Chinese when it comes to trade. I am pleased to say that UKTI is proactive. In fact, one of our embassies that I visited, which was a diplomatic centre, has become more of a business centre, too. Embassies play an important role in enhancing trade, both in China and in other emerging markets.
My Lords, according to a report on 17 June in the Times, the Business Minister, Michael Fallon, said that human rights must not stop trade with China. Does the Minister agree that that statement demeans the very concept of human rights?
My Lords, human rights are a major concern for this House. In fact, there was a Question on human rights earlier today in relation to Uganda, which is the country of my origin. We take human rights very seriously, but to address them we must quite often cement our relationships with countries by having more trade. I am pleased to say that we raise this issue every time our Ministers meet their counterparts in China—my right honourable friend, Hugo Swire, did so during his trip to China in May, and the former Foreign Secretary did the same thing in February. Our concerns are publicly outlined in our annual human rights report, which was published on 10 April 2014.
My Lords, there is concern that the new UKTI China initiative is marked by a number of features: a large amount of public relations; considerable new expenditure; an astonishing paucity of Mandarin speakers among the new recruits; and a focus on what is called internal reorganisation rather than business getting. Can the Minister identify, aside from the usual aspirational platitudes, what measurable targets are going to exist for UKTI and all the new expenditure in terms of the benefits to UK business?
My Lords, extra resources given to UKTI by the Chancellor will help UK companies to enter the Chinese market to win business. Jaguar Land Rover is a classic example and is benefiting hugely from the demand from China. UKTI plays an important role in engaging Chinese business with UK businesses. At the same time, it is also promoting “Exporting is GREAT”, and that is working very well. Soon we will see the benefits; indeed, we already see the benefits, as bilateral trade between the UK and China is to the tune of £75 billion. The growth rate of the exports is much higher than that of our imports.
My Lords, I am sure the Minister will correct me, but am I right in saying that the Intellectual Property Office has sent out Mandarin-speaking ambassadors from this country to protect the intellectual property rights of people with small and medium-sized businesses who go to China? I understand that they are working extremely well and that the project has been an enormous success.
The noble Baroness has made an important point. We are addressing the issue of intellectual property and we now have legislation in place. We are asking our Chinese counterparts to comply with our regulations on intellectual property.
Can the noble Lord tell the House how many additional flights from Heathrow to China have been introduced since this Government came to power?
(10 years, 4 months ago)
Lords ChamberMay we hear from this side? The noble Lord will have an opportunity to speak later.
For the United Kingdom, my right honourable friends the Prime Minister and the Foreign Secretary are engaged in diplomatic talks and processes, and I assure all noble Lords that these will continue and that all our energies will be applied to achieving the kind of resolutions that we think are important for all parts of the world where there is conflict.
(10 years, 4 months ago)
Lords Chamber
To ask Her Majesty’s Government what recent assessment they have made of the value for money achieved from the sale of Royal Mail.
My Lords, the Government’s overall objective in selling shares in Royal Mail was to protect the universal postal service by ensuring that Royal Mail has a sustainable and secure future. The sale raised £2 billion for the taxpayer and it enables Royal Mail to access the private sector capital that it needs to invest in growth. The sale guards against the real need for Royal Mail to request additional taxpayer support in the future.
My Lords, I thank the Minister for his reply, even though it was what I expected. If the enhanced share price, which today stands at 479.60p, was just market “froth”, can the Minister explain why the long-term priority shareholders sold their stakes for huge profits? Given that the National Audit Office has said that the business department’s desire to sell Royal Mail before the election next year resulted in a knockdown price that cost taxpayers £750 million, does the Minister feel that there are any lessons to be learnt for any future sale?
My Lords, there are a number of questions in the noble Lord’s question. First, let me cover the share price. The share price for Royal Mail is very volatile. It reached £6.15 in January and stands at £4.79 as of this morning. The Government achieved their intention to ensure that Royal Mail started with core, long-term, stable investors who understood the business, along with some hedge fund participation to ensure liquidity in the aftermarket. This was absolutely real value for money and such a success story of this Government.
Would the Minister remind the House that the Labour Party failed completely in its own attempt to sell Royal Mail, and was much relieved when this Government managed to sell it for what was certainly at that time a fair price, in order to save the post offices which we still have and—most importantly—to save the pension scheme, which had no money left in it at all?
My noble friend raises a very important question. The party opposite failed to achieve a sale or to find a solution to the problem of Royal Mail. This Government have taken a loss-making public enterprise and turned it into a highly successful, respected public company. Both the National Audit Office report and last week’s Select Committee report reached the important conclusion that we had successfully achieved our objectives. The Royal Mail IPO has inspired other companies in the UK to go for a flotation.
My Lords, the noble Lord will be aware that much concern has been expressed by Royal Mail and others at the threat posed to the sustainability of the universal postal service by the rapid rise of direct delivery competition in postal services, which are able to cherry pick the lowest hanging fruit without any obligation to serve less profitable and harder-to-reach markets. Would he agree that, in those circumstances, it would be helpful if Ofcom, which has responsibility for the integrity of the universal service, undertook a full review of direct delivery as a matter of urgency, instead of in 2015 as planned, and determined quickly any regulatory changes needed to protect the universal service?
My Lords, the businesses complement each other. As the chief executive of Royal Mail has said, it is unthinkable that the two companies will not always work very closely. Ofcom is an independent organisation and it will regulate and oversee the function of the Royal Mail.
My Lords, we certainly do not need to be reminded of the failure of the previous Labour Government, because I still feel the shame about how the Bill was introduced in this House. However, putting that to one side, could I ask the Minister a question that is pretty much along the lines of the previous question? I am sure that he will recall the assurances that the Government gave to Royal Mail and the British public. In talking about the value of Royal Mail, one should look at the value of the service that it gives. Has the Minister any idea of bringing forward the review, which I am told will not be until next year? The cherry picking is already having a great effect on the ability of maintaining a universal service, and I am sure that the Minister will agree that, if it carries on haemorrhaging the profitable parts of the mail business to unregulated operators, the regulator will quickly have to have another look at Royal Mail’s situation. Could he please give us the assurance that the review will take place sooner rather than later?
My Lords, here was a company which prior to privatisation was turning around £9 billion a year. It lost money for a number of years, to the tune of £1 billion. Preceding the era of privatisation it made a £300 million profit, hence we went for the flotation, at the time when there was the real threat of the American debt crisis as well as unions threatening to strike—and each strike day costs roughly £30 million, so a £300 million profit can be wiped out in 10 days. It was a successful flotation, and the Secretary of State has appointed the noble Lord, Lord Myners, to look into how best we can do any future flotations.
My Lords, despite the generally successful privatisation of the Royal—