Vauxhall Factory, Ellesmere Port
Lord Harrington of Watford Excerpts(6 years, 1 month ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)
It is a great honour to serve under your chairmanship, Mr Rosindell. I perfectly understand your mistake in confusing the hon. Member for Wirral South (Alison McGovern) with the hon. Member for Ashton-under-Lyne (Angela Rayner); I myself am regularly mistaken for my hon. Friend the Member for Northampton North (Michael Ellis). I have sued people for less, but I am sure that that will not be necessary in this case.
I congratulate the hon. Member for Ellesmere Port and Neston (Justin Madders) on securing this debate, and all right hon. and hon. Members on their contributions. I take the automotive industry very seriously, which is why I asked for it to be included in my portfolio—not just Vauxhall at Ellesmere Port, but the automotive industry in general. I have met quite a few people in the industry since I first became responsible for it, and further to this debate I will be happy to meet any Members for constituencies in the area; it might be better if we organised that through the all-party group, but I leave the decision to them. I hope that right hon. and hon. Members know that my door is always open, and I really mean that—it is not just a platitude. They have said some quite critical things about the Government, but that is their job and I quite understand it.
I know that Vauxhall’s history is very important to it. The PSA senior management, from Carlos Tavares down, have made clear to my right hon. Friend the Business Secretary the value they place on Vauxhall’s historic brand and the commitment of its workforce. They have emphasised their intention to build on those strengths. That positive message was reiterated when the PSA Group launched its turnaround plan in November, which it called PACE, aiming to bring Vauxhall and its sister brand Opel, which were with General Motors, to profitability by 2020. Mr Tavares again made a clear commitment to Vauxhall and expressed the intention to avoid forced redundancies or the closure of any Vauxhall plants. He has consistently said that he wishes to exploit in full the company’s potential in the UK.
We have regularly met senior management, within both Vauxhall and the PSA Group, and we will continue to do so. Discussions have been based on the future strategic direction for the PSA Group and Vauxhall, and on the outstanding and supportive environment that exists here for advanced manufacturing businesses and investment.
I was disappointed, as I am sure everyone in this Chamber was, at the announcements in October last year and in January on the voluntary reductions in the workforce at Ellesmere Port. Vauxhall has made it clear that the decision was taken to safeguard the competitiveness of the plant in an ever more challenging environment across Europe. I accept what hon. Members have said about the impact of those announcements on their constituencies and about how few people now work at Ellesmere Port compared with the past, as well as about the importance of those people to the local economy and their supply chain.
Ministers—more recently including myself—have stayed in touch throughout with key decision makers from both Vauxhall and the PSA Group, and very helpfully with leaders from Unite and other unions, too. We have pressed the case for Vauxhall’s plants and highlighted the excellent UK workforce, and we will continue to do so.
The hon. Member for Ellesmere Port and Neston made a fine speech—I do not want him to think that I objected to much of it, because I agreed with a lot of it—but I reject his claim that we are in “denial” about what is happening. I will come on to Brexit business in a moment, but I do not think that claim is true, and I would tell him that privately or publicly on the record.
We have shown that auto investment is important in the UK. Recently, Toyota announced that its new model would be built in its plant at Burnaston and there have been other announcements in the last year from Nissan, BMW and Lotus. We can do it, and global demand for vehicles designed, engineered and manufactured in the UK is strong.
Christian Matheson (City of Chester) (Lab)
I am most grateful to the Minister for giving way. There is a Toyota plant next to my constituency, in the constituency of my right hon. Friend the Member for Delyn (David Hanson). Are not investment decisions such as those the Minister has mentioned taken three years in advance? That decision by Toyota had already been taken and was known even before the Brexit referendum had taken place.
Richard Harrington
I thank the hon. Gentleman for his intervention, but I do not believe that that is the case; if Toyota was concerned, particularly about the Brexit issue, whatever decision it may have taken was certainly not finalised until well after the referendum. By the way, I look forward to visiting the Toyota plant in the constituency of the hon. Member for Wirral West (Margaret Greenwood)—I think it is in her constituency—quite soon.
Richard Harrington
I do beg your pardon—in Deeside. Well, I look forward to visiting it anyway, and if I was invited to visit Ellesmere Port I would be very pleased to do so, subject to an agreement with the Conservative Whips.
Ms Angela Eagle
I thank the Minister for giving way. All of us who have an interest in this issue welcome his interest in the automotive plant, but we want a little more from him than that, since he is the Minister. Can he give us an answer on the issue of rate relief? Will the entire area be given the special status that my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) asked for?
Richard Harrington
Well, I have seven minutes and I will do my best to satisfy hon. Members, but as I say my door is open to anybody—
Ms Angela Eagle
Just say yes now; it does not take seven minutes to say yes.
Richard Harrington
The hon. Lady has been in government herself, so she knows that sometimes seven minutes is not enough to deal with these matters.
The automotive industry is very important for the industrial strategy, which is our cornerstone policy. We have announced quite significant sums of money— £80 million—for battery scale-up facilities in the west midlands, and I believe that the automotive industry, with the advanced propulsion centre and everything else, is absolutely critical to us. I hope that can help the situation at Ellesmere Port, because it will provide a framework for a modern industry of the future.
As far as Brexit is concerned, I recognise exactly the uncertainty that has been mentioned by the hon. Member for Ellesmere Port and Neston, and others. It is very important; we are not in “denial” about it. However, what I would say is that the automotive industry has been used as a model by my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy. For example, it was well publicised that at Chequers the automotive industry and its interlink with all of the companies in the supply chain, and everything in Europe, was used as an example; what my right hon. Friend would call, quite rightly, an “exemplar”.
Yesterday’s conclusion of the negotiations between the Brexit Secretary and Michel Barnier, with the transition period, showed that exactly the sort of thinking that we need for the automotive industry is recognised by our own Government and by the European Union. I am confident that that is largely the result of successful Government lobbying by the automotive industry—in which, of course, Vauxhall has taken part.
Alison McGovern
I thank the Minister for giving way. Is he saying that, given that the automotive industry was used as such an “exemplar”, the kind of arrangements agreed for the period of transition are those that we can expect to help the automotive sector in perpetuity?
Richard Harrington
Yes, I would hope so. I accept the fact that we are leaving the European Union, but I believe that common sense will prevail about the frictionless and free movement of trade between ourselves and the European Union. I think the hon. Lady is quite aware of my views on that.
Yesterday’s milestone on the implementation period will help in the short term to alleviate some of the fears mentioned by Mr Tavares and others.
Richard Harrington
I will not take the intervention, but only because of the time; under normal circumstances, I would be happy to take it. I do not want to annoy Mr Rosindell on this subject, and I am determined to do as much as I can. We as a Government are certainly determined to ensure that the UK continues to be one of the most competitive locations in the world for automotive and other advanced manufacturing.
Our vision is of a UK that is a
“champion of free trade based on high standards”,
not on low standards, and we hope that global Britain will forge
“a bold and comprehensive economic partnership with our neighbours in the EU, and reaches out beyond to foster trade”,
which I hope will help Ellesmere Port.
The right hon. Member for Delyn (David Hanson) said that we should be involved with the Welsh Assembly and others; I am very happy to meet Welsh Assembly Members. I have heard very good reports about the local enterprise partnership and it seems a very sensible idea to work with it. I would be happy to include the Welsh Assembly within any discussions on this matter.
To conclude, we are absolutely committed to a successful Vauxhall, so that it remains and thrives in the UK, both at Ellesmere Port and at the company’s plant in Luton. We have made our strong commitment absolutely clear to the company and it has full access to the support available through our industrial strategy. We want Vauxhall to be successful and—
Richard Harrington
I have not got time. We want Vauxhall to be part of a thriving economic situation. [Interruption.]
Richard Harrington
I do beg your pardon, Mr Rosindell. People were asking me to give way, but I have only two minutes.
I am happy to continue this debate offline, and to have a meeting with the hon. Member for Ellesmere Port and Neston and any colleagues. Perhaps we could do that through the all-party parliamentary group; I leave it to them to decide. Some important questions have been asked, but I assure the hon. Gentleman that we are not in “denial” and we want a prosperous Vauxhall. We want Ellesmere Port to be part of that.
Competitiveness Council
Lord Harrington of Watford Excerpts(6 years, 1 month ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)
The Competitiveness Council (Internal Market and Industry) took place on 12 March in Brussels. I represented the UK.
EU industrial policy
Ministers had a wide-ranging discussion on the future of EU industrial policy and the need for European industry to adapt to changes in the global economy and the digital revolution. The UK noted that its recently published industrial strategy identified many of the same challenges and drivers of growth, and stressed our commitment to an open, liberal market economy based around fair competition and high standards. Commissioner Bieńkowska updated Ministers on the first meeting of the “Industry 2030” High Level Roundtable which took place in February. The roundtable would work towards a future vision for EU industry. Ministers also agreed the draft Council conclusions (doc. 2793/18).
The UK also raised concerns at the recent announcement by the US Administration to introduce tariffs on steel and aluminium imports. The UK stressed that unilateral tariffs were not the right way to tackle global overcapacity. Other member states stressed the need for a solution that respected the role of the WTO which Commissioner Bieńkowska supported in her response.
Digitalisation of the EU economy
Ministers considered how to better focus national reform efforts and funding decisions, to seize the opportunities presented by digitalisation for European industry and citizens. There was wide agreement on the need to boost digital skills, to provide clear regulatory frameworks, and to see SMEs and the public sector as potential beneficiaries as well as large businesses. Member states considered that both private sector and EU funding should be easier to access and complement existing national investment in infrastructure.
Single Market
Ministers held a policy debate on the single market to mark the anniversary of the yreaty of Maastricht. A number of member states, including the UK, called for better enforcement of single market rules and an analysis of barriers to the services market to realise the single market’s full potential.
Commissioner Bieńkowska hoped that member states would reflect their aspirations for the single market in responding to Commission legislative proposals. The UK underlined our continuing interest in the success of the single market and support for ongoing efforts to reduce barriers, and reiterated the Prime Minister’s call for an ambitious UK-EU partnership.
Other items
Commissioner Bienkowska set out the key elements of the Commission’s plastics strategy and highlighted the objectives of a review of the REACH regulation. On better regulation, the presidency presented work to highlight the role of scientific evidence in the EU’s regulatory decision making. Belgium presented a short note to highlight the risk of start-ups and scale-ups being captured by the rescue and restructuring guidelines in the state aid rules. Under the regular “Competitiveness Check-up” Commissioner Bieńkowska gave a presentation on the link between services reforms and productivity in manufacturing. Commissioner Jourova updated Ministers on the forthcoming package of consumer protection proposals which are due in April.
[HCWS564]
Oral Answers to Questions
Lord Harrington of Watford Excerpts(6 years, 2 months ago)
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Bill Grant (Ayr, Carrick and Cumnock) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)
Government research on consumer satisfaction published in August last year shows that satisfaction with smart meters is high. Eighty per cent. of consumers are satisfied with their smart meters and 80% would recommend them to friends and family. Smart Energy GB found that nearly 90% of people with a smart meter made energy savings and changed their behavioural patterns.
Lee Rowley
I thank the Minister for his response. It is good to hear that so many people are reaping the benefits from smart meters. No system is ever perfect, however, and that is the case for a small number of customers such as a club in my constituency, Killamarsh juniors athletics club, which is now on its third smart meter and is getting really unhelpful responses from its electricity provider. Can he provide any advice to the club in my constituency?
Richard Harrington
My hon. Friend has made a point about the Killamarsh juniors club in his constituency. I would be very happy to meet him on that specifically. However, I have not found this generally to be the case. The roll-out of smart meters is a very important national modernisation programme that brings major benefits to consumers generally and to his constituents specifically.
Bill Grant
Smart meters are good for consumers and suppliers alike, but the roll-out relies on there being a good mobile phone signal for them to be effective, and in many parts of rural Scotland that is simply not the case. Can the Minister reassure me that he is working across the Government and with relevant stakeholders to ensure that residents in rural areas benefit from smart meters?
Richard Harrington
I agree entirely with my hon. Friend. We are working on that, and the Arqiva radio solution provides communications services for the north region. That covers Scotland, and it is contracted to cover nearly 100% of premises by the end of 2020.
Steve McCabe (Birmingham, Selly Oak) (Lab)
Does the Minister accept that his statistics are based on surveys that are carried out about 10 weeks after installation? My own survey found that 54% of constituents would currently refuse a smart meter, 97% want to see the costs of the programme shown on their bills, and 74% said that receiving one had not yet made any difference to the size of their bills. Will he also take those findings into account?
Richard Harrington
The hon. Gentleman knows me well enough to know that I am very interested in anything he has to say. He contributed a lot to the passage of the Smart Meters Bill in the House of Commons. I would be very interested to receive those statistics, but we do receive them from quite a few different places, and I do not just quote one sample.
John Cryer (Leyton and Wanstead) (Lab)
I am sure the Minister is speaking in good faith, but I have come across constituents who find that bills are not reducing, but increasing. Has he had discussions with the utility companies about keeping an eye on this and making sure that the effect of smart meters is to reduce costs for constituents, many of whom are poor, not raise them?
Richard Harrington
I am very surprised to hear what the hon. Gentleman says. As he said—I am grateful for it—I am talking in good faith; I know he is too. I would be pleased to hear of those examples, but I cannot quite understand why bills would go up, because nearly 90% of people with smart meters say that it is changing their energy patterns and that bills are going down.
Stephen Kerr (Stirling) (Con)
Can the Minister update us on where we are with the roll-out of SMETS 2 smart meters?
Richard Harrington
As my hon. Friend, who also contributed a lot to the passage of the Bill, knows, SMETS 2 is the newer type of meter which at the moment is in its trial phase. As the months go on, SMETS 1 meters will be converted through software that is being developed by the Data Communications Company, and all new meters will be SMETS 2.
Alan Brown (Kilmarnock and Loudoun) (SNP)
How satisfied are consumers when they realise that a smart meter becomes a dumb meter when they switch suppliers? Can he put an accurate timeline on the roll-out of SMETS 2 meters?
Richard Harrington
As I explained, the software that is being developed now and will be in place shortly after the summer will ensure that that does not happen. The comparatively small number of SMETS 1 meters that do not operate as smart meters when suppliers change will suddenly become compliant, and they will all be able to speak to one another electronically, which is what we all want.
Anna McMorrin (Cardiff North) (Lab)
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)
The Government remain committed to supporting the industry and building on the £2.3 billion package announced in recent Budgets. My right hon. Friend the Minister for Energy and Clean Growth greatly enjoyed her recent visit to Aberdeen—as did I, when I visited—when the industry presented its initial proposals for a deal. My right hon. Friend is meeting the sector deal champion, Trevor Garlick, tomorrow.
Andrew Bowie
I thank my hon. Friend for that answer. The oil and gas industry based in the north-east of Scotland has contributed over £330 billion to the economy, supports over 330,000 jobs across the United Kingdom and has a supply chain worth nearly £30 billion. With an estimated 20 million barrels of oil still to get out of the North sea, the industry has huge potential to drive this country’s growth, but of course there is still uncertainty, so I know that the Minister will welcome the response—
Andrew Bowie
Will the Minister pledge to work continually with the industry to develop and deliver the sector deal?
Jim Shannon (Strangford) (DUP)
What discussions has the Minister had with the Treasury about the impact of Her Majesty’s Revenue and Customs’ new end-use procedure changes on the gas and oil industry?
Richard Harrington
I will give a very succinct answer, as you have requested, Mr Speaker. I do not know, but I will happily meet the hon. Gentleman to discuss it.
Stephen Crabb (Preseli Pembrokeshire) (Con)
What consideration is my hon. Friend giving to the downstream sector? Our remaining oil refineries are important national assets and major centres of employment, and they could benefit from clear, long-term thinking.
Richard Harrington
As my right hon. Friend will be aware, the whole sector is important to us, and specifically the supply chain. I have met various players involved, and it is of critical importance to us.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
The UK Government have so far failed to announce a sector deal for oil and gas, and there was no mention of one in their industrial strategy. There is a need for a sector deal approach to the industry. The Scottish Government have been calling for such action. Will the Minister finally rectify this glaring omission and commit that vital support for the industry and the jobs and investment it relies on?
Richard Harrington
The hon. Gentleman should be aware that this is a priority for us. We are working very hard with the sector to come up with a sector deal, and I expect those talks to come to fruition very soon.
Mr Ranil Jayawardena (North East Hampshire) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)
I know that the hon. Lady has a keen interest in this subject, and we have met to discuss the impact on many of her constituents working at the Culham Centre for Fusion Energy. As she knows, our assessment was detailed in the “Nuclear Sector Report” at the end of December last year, and in an impact assessment for the Nuclear Safeguards Bill, which was first published on 18 December. We continue to engage with stakeholders, and the hon. Lady knows that my door is always open if she wishes to discuss this matter further.
Layla Moran
I thank the Minister for his response. We know that the Government are seeking a close association with Euratom, but with just 109 days until Austria takes up the presidency, Oxfordshire needs clarity now to plan for the future. Can the Government categorically say they are seeking an associate agreement, and can they guarantee that they will kick-start the process before 1 July?
Richard Harrington
I can confirm that, as the hon. Lady knows, we are seeking the closest possible association with Euratom. We are working very hard to achieve that objective.
John Howell (Henley) (Con)
Does the Minister agree that at the recent meeting of the all-party group on nuclear fusion, which I chair, the Government’s attitude to expanding their collaboration in nuclear activity was greatly evident?
Richard Harrington
I thank my hon. Friend for that question. He also has a keen constituency interest in this, and I am very keen to represent the interests of his constituents.
Mark Menzies (Fylde) (Con)
Douglas Ross (Moray) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)
The Government are determined to improve payment practices, and we understand that retentions have caused problems for contractors in the supply chain. We consulted on the contractual practice of cash retention and we are now considering the responses to assess the extent of the issues and to determine what further intervention is required.
Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)
Paul Masterton (East Renfrewshire) (Con)
Richard Harrington
I have met Juergen Maier, the chief executive of Siemens UK, to discuss that. At a recent dinner, my right hon. Friend the Secretary of State announced a “Made Smarter” commission and asked Sir Mark Walport to work with Juergen on the development of an industrial strategy challenge for the digitisation of our manufacturing industry.
Mr Gregory Campbell (East Londonderry) (DUP)
The number of electric vehicles on our roads is likely to increase significantly over the next few years. What work is being done to ensure that charging points are more frequently powered by renewable sources over that period?
Mr Philip Dunne (Ludlow) (Con)
Richard Harrington
I was in Brussels yesterday to meet other European Union Ministers, trade union leaders and representatives of employers to ensure that we do exactly that.
Rachel Reeves (Leeds West) (Lab)
The Business, Energy and Industrial Strategy Committee has heard powerful evidence on why the Government should call in the Melrose bid for GKN on national security grounds, and the Secretary of State for Defence has written to the Business Secretary about the matter. Will the Business Secretary use his powers, before it is too late, to protect this great British engineering giant?
DMB Solutions: Liquidation
Lord Harrington of Watford Excerpts(6 years, 2 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)
Thank you, Mr Speaker, for such a lengthy and erudite introduction. I expected nothing less, and I was not disappointed.
The hon. Member for Brighton, Pavilion (Caroline Lucas) has brought a serious matter to the House, and I thank her for raising this important issue. I am also grateful for the interventions and contributions from the hon. Members for Hove (Peter Kyle) and for Strangford (Jim Shannon). We have heard terrible stories about their constituents. I have to say that I was not surprised, however. I had heard such stories before, being an occasional reader of the Brighton Argus, and I know that the hon. Lady is not just describing a one-off here. It is the job of the Insolvency Service, the Department for Business, Energy and Industrial Strategy and the entire trading standards system to do what they can to provide recompense for her constituents.
Peter Kyle
I am pleased to hear that the Minister reads the Brighton and Hove Argus. He has mentioned several of the agencies that people can turn to in these situations, but is it not the case that the landscape of regulation is very complicated? The constituents that we have been describing today simply do not think that any one agency has a grip on such situations.
Richard Harrington
I thank the hon. Gentleman for his intervention. I hope that I will be able to partly satisfy him with the comments that I am going to make. If not, I will be happy to meet him and the hon. Lady, representing the Greater Brighton constituencies, to take up any further points.
The insolvency regime is an important part of the framework of business, even though it has to deal with the unintended consequences of it. To put this into perspective, levels of insolvency are low, but when it does happen—particularly in consumer-facing companies such as this building company—it can have a significant impact on customers, employees and suppliers. It is an unfortunate fact of life that companies sometimes have to cease trading without paying their debts, and that when they do, creditors can often suffer, with little or no chance of receiving their money back. This is exacerbated in circumstances such as these when customers have paid for work in advance, because those people have often saved for some considerable time to have improvements made to their house, for example.
In many cases, insolvency proceedings such as liquidation will follow. These allow an expert in insolvency, who is authorised and bonded, to be appointed to oversee an orderly winding-up of the company’s affairs, to sell its assets and to make dividend payments to creditors from the funds available. It is an important principle of the insolvency regime that unsecured creditors rank equally when it comes to receiving such payments. Only certain creditors, such as employees, are paid in priority.
Hon. Members will appreciate that I cannot comment specifically on the liquidation of DMB at this early stage of the proceedings. The liquidators have an important task to carry out in winding up the company and making such reports to the creditors as are appropriate. I am aware that complaints have been made to trading standards—
Richard Harrington
I hope that the hon. Gentleman will bear with me. I do not want to run out of time without having tried properly to answer all the questions. If there is time left at the end, I will be delighted to give way to him.
I am aware that complaints have been made to trading standards, and we will have to wait for that authority to reach its conclusions. In the meantime, however, we are not sitting idly by. All traders are subject to consumer protection regulations which, for example, require them to provide clear and full information and allow consumers to unwind a contract if they have been the victim of a misleading commercial practice. It is right that any alleged breaches of those regulations should in the first instance be reported to trading standards.
I will set out how the regime impacts on creditors. The first thing to say is that directors who do not play by the rules can expect to be held accountable. It is a long-established principle of company law that directors must act in the best interests of their company, but once the company approaches insolvency, their first duty must be to the creditors. I note from the hon. Members’ comments that, in this case, some of the money was paid a few days before insolvency. Without speaking specifically about this firm, I can say that that is highly relevant to the possible actions open to the authorities. I will say more about that in a moment.
In the majority of company insolvencies, the law is obeyed. Once it has been established that the company cannot pay its debts, a responsible director should take steps to protect creditors, and if a solution to the problem cannot be found, the company may enter into formal insolvency proceedings.
However, not all directors are that diligent. Sometimes, they bury their heads in the sand and continue to run the company as if nothing has happened, or they try to use money owed to creditors as working capital, so that the company may continue to operate, and pay their own salaries. In those few cases, the position of creditors, such as customers who have paid for work in advance, may deteriorate, which would seem to be the case here, given what we have been told. Such directors may be subject to disqualification proceedings, which if successful will prevent them from acting as a director of a company, whether formally appointed or not, for a period of between two and 15 years.
The Government are responsible for disqualification of unfit directors via the Insolvency Service, which assesses insolvent company cases to decide whether to investigate the conduct of the directors and, where appropriate, seek disqualification orders. A person who acts as a director while disqualified is committing a criminal offence and, further, they are personally liable for any debts of a company incurred while they were breaching the disqualification.
Caroline Lucas
The people who have been affected have already contacted the Insolvency Service, which has said that it will not investigate, so where do they go now?
Richard Harrington
At this juncture, the hon. Lady and her constituents have to accept that this is the beginning of the proceedings.
An investigation may lead to evidence of criminal offences committed by directors, such as fraud. In those cases, directors may face prosecution as well as disqualification proceedings. All that will usually start—this is the relevant point—with the receipt of a report on the conduct of the directors of an insolvent company, which must be submitted by the liquidator within three months of their appointment. Having said that, in deciding whether there should be an investigation, all sources of information will be considered, including information from creditors of the company, its customers, its records and other agencies. If the hon. Lady’s constituents have information about the conduct of the directors of DMB—it appears that they certainly do—that they feel would help to decide whether there should be further investigation, they may, and should, submit it to the Insolvency Service, which has a link on its website for precisely that purpose.
Rogue directors will also discover that they may be personally liable for a company’s debts if it traded while they knew, or ought to have known, that it was insolvent and creditors suffered as a result. While I cannot comment on this particular case, if the circumstances that the hon. Lady described are correct—I have every reason to believe that they are because they are based on what her constituents have told her—the firm was trading when the directors knew or ought to have known that the company was insolvent, and creditors have suffered. A court can order that they repay money to the company out of their own pockets if it can be shown that their actions, or inaction, have harmed creditors. In this situation, the directors would have breached their duty to the creditors of the company, which has the serious effect of preventing the directors from hiding behind the normal veil of incorporation that is a limited company.
Richard Harrington
I am going to run out of time, so I will continue. I ought to emphasise again at this point that I cannot comment specifically on the case of DMB or indeed the conduct of its directors.
I mentioned earlier that the Government continue to look for ways to strengthen regulatory and enforcement systems, and disqualification is one area where there have been recent improvements. From 2015, the powers of the Insolvency Service to investigate have been expanded, and the system for liquidators reporting on the conduct of the directors has been modernised, allowing for quicker and more efficient investigations. In addition, there is a new process whereby if a director is disqualified, and it can be shown that their actions caused direct losses to creditors, the court can order that they make a payment from their own pocket to compensate creditors or the estate. These compensation orders were introduced in the Small Business, Enterprise and Employment Act 2015.
The insolvency of a construction company such as DMB may often result in some customers having paid for work that it was not possible to complete. It is not unusual to ask the customer for a proportion of the payment up front, such as in the circumstances described by hon. Members tonight. Those circumstances may be different from insolvencies that may happen when directors behave perfectly properly and get into financial difficulties, but I will not describe that as the “normal” way, because few companies do become insolvent. There are things that become a serious matter of misconduct on the part of directors and that lead to periods of disqualification, personal liability and possibly prosecution proceedings being sought.
Caroline Lucas
Apparently, we have a couple more minutes. The Minister says there is provision to get a court to order a pay-out from people’s own pockets. Does that still apply if it was a limited company?
Richard Harrington
I believe that is the case, but I do not want inadvertently to mislead the House, so I will write to the hon. Lady on that subject to answer specifically and properly.
I am genuinely sorry, as anybody would be, for the hon. Lady’s constituents following this business with DMB. It is a horrible situation, but I reassure her and other Members that there will be full consideration of whether there should be further investigation of the circumstances of this insolvency. [Interruption.] I have been given a piece of paper saying that the answer to her question is, “Yes, it does.” I will write to her anyway, because I promised that I would.
I have craved your indulgence enough, Mr Speaker—I think I have one minute left—and I hope I have been able to reassure the hon. Lady that the insolvency legislation is robust in dealing with directors who abuse the principle of limited liability. If she and her Brigtonian, Hovian and Portsladian colleague, the hon. Member for Hove, would like to meet me or the relevant officials, I am happy for them to do so.
Paul Girvan
Is it possible for protected creditors, such as Her Majesty’s Revenue and Customs in respect of VAT, to allow flexibility for those who are in most need? We are sometimes talking about the widow’s mite here.
Richard Harrington
That is not currently the situation. As the hon. Gentleman will know, some creditors are protected above others, such as banks with mortgages, and we have to be careful that companies can legitimately borrow money and pay their taxes.
Caroline Lucas
The hon. Member for Hove (Peter Kyle) and I would be grateful for the meeting the Minister describes. We will follow up with his office.
Richard Harrington
I apologise for the fact that in some cases I may not have been able to answer as fully as I had hoped.
Question put and agreed to.
UK Research Centre for Ceramics
Lord Harrington of Watford Excerpts(6 years, 2 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 (Richard Harrington)
I congratulate my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton) on securing this debate. I congratulate other Stoke-on-Trent Members on their carefully crafted interventions, and I paid particular attention to the chair of the all-party parliamentary group on ceramics. Despite various party political comments with which I could take umbrage, it is right that most of this discussion is really of a cross-party nature, and I shall attempt to respond to the debate in the same way. As far as my constituency is concerned, I suppose that the only interest I have to declare, without having a pottery, is that I do have Harry Potter—that is about the nearest to it. [Interruption.] Mr Deputy Speaker, you are not supposed to laugh at these jokes; Mr Speaker might get to hear.
The Potteries have made an enormous contribution to this country, but we should not simply recognise the ceramics sector for its role in the country’s industrial past, as it is very much a linchpin of today’s modern UK manufacturing economy. There is significant potential for it to increase its contribution to our industrial landscape. I accept—this point was very eloquently made by my hon. Friend—that we should be doing all we can to help the ceramics sector to continue to thrive and grow, because things move on.
Ceramics has become a vital part of the supply chain for a range of advanced manufacturing sectors, including electronics, aerospace, automotive and healthcare, so we do not take it as just one industry on its own. That is very important. I pay tribute to Laura Cohen who, if she is not here, I suspect is hiding somewhere. I was speaking outside the Chamber to the right hon. Member for Doncaster North (Edward Miliband), who remembers her very well from when he was in government, so he has a long memory. She is clearly a very effective lobbyist for the organisation that she works for, and I know we all respect that.
With regard to the industrial strategy and the ceramics sector, we know that just short of 9,000 people work in the ceramics sector in Stoke and Staffordshire—a concentration just over 22 times greater than the national average. The Government’s industrial strategy White Paper, which we published at the end of November last year, recognised the ceramics cluster based in north Staffs and the leadership shown by local partners across industry, education and local government in working together to target growth in this important sector. Clusters are a major contributor to growth. The McKinsey report commissioned by Centre for Cities identified 31 economically significant clusters in the UK. These clusters contain only 8% of the UK’s businesses but generate 20% of the country’s output. The Government are therefore committed to ensuring that the ceramics sector continues to go from strength to strength. The White Paper highlighted our ongoing support for sector deals.
Stakeholders have welcomed our proposals to extend this successful model of collaborative working on sectors. My job is to deal with most of those sectors and to encourage those that have not come forward with proposals to do so. A number of sectors have signalled their interest in developing a sector deal. I welcome the proposal from the ceramics sector for such a deal. My officials have provided initial feedback, and I know that the sector is responding positively. The White Paper sets out criteria that sectors should consider when formulating their proposals. We have to strike the right deal: one that is balanced between the asks of Government—typically around skills, cost reductions and so on—and commitments from the sector, and one that will have a real impact on productivity for these industries. I look forward to opening formal negotiations in the coming months with sectors that meet these requirements and have submitted ambitious proposals for a sector deal with the Government. As part of that, I look forward to working with the ceramics sector.
My hon. Friend mentioned the proposed UK research centre for ceramics. I thank him and others who have sent me the details about the ceramics park, called “A deal for ceramics in the UK”, which is extremely interesting—particularly the picture of the giant Grayson Perry pot. It will be a pleasure to pass it on to you, Mr Deputy Speaker, for your night-time reading this evening—or whenever you choose to do it.
Investment in our science, research and innovation base is critical, as I have said. In 2016, we announced a £4.7 billion increase in R&D investment between 2017-18 and 2020-21. We have also committed to raising investment in R&D to 2.4% of GDP by 2027, which is the biggest-ever increase in public funding of R&D. The EPSRC materials engineering in ceramics portfolio is currently worth just over £12 million. The ambition of the UK ceramics sector is to be at the forefront of research and innovation, and that is exactly what we want.
The ground work is already being done by companies such as Lucideon, based in Stoke-on-Trent, which is recognised the world over. It will be leading the research for the new Faraday Centre on the application of field-enhanced sintering of novel ceramic electrodes for a sodium battery alternative to lithium. Again, while that is about ceramics, it has much wider aspects for big parts of the industrial sector. It is vital that we in the UK retain such expertise, and develop the future research and design talent that will ensure that we continue to lead the world.
The sector deal proposal from the ceramics sector sets out a compelling vision of how that might be achieved via an advanced ceramics campus. We welcome the proposal set out by the industry and are working closely with the sector to explore ways in which we can ensure that the sector continues to go from strength to strength.
I love the fact that the ceramics sector deal proposal has a strong place element. The industrial strategy White Paper recognised that while the UK has a rich heritage, with world-leading businesses located around our country, some places are not fulfilling their potential. We want to build on the strong foundations of our city, growth and devolution deals by introducing local industrial strategies. We want to introduce new policies to improve skills in all parts of the country and create more connected infrastructure.
Sector deals such as this, with a strong place-based focus, have a role to play in that. That is why the aim of this ambitious proposal is welcome. It rightly recognises the need to improve productivity by addressing the commercialisation of ideas, training and skills, science and technical innovation. It also recognises the role that culture can play in regeneration and local growth.
I end by reminding my hon. Friend that we are introducing a new £115 million a year Strength in Places fund to build excellence in research, development and innovation all the way across the UK. We are working closely to deliver that with Research England. I encourage the sector deal partners to consider bidding for that when it is launched.
I wish the ceramics sector the absolute best for the future, and not only for itself and locally, because all these different aspects of its development, as I have tried to explain, have really good implications for many other sectors. I am very happy to meet Members who have contributed to the debate, and particularly my hon. Friend, if I get the opportunity to do so.
Question put and agreed to.
Smart Meters Bill
Lord Harrington of Watford ExcerptsMonday 5th February 2018
(6 years, 3 months ago)
Commons ChamberRead Full debate Smart Meters Act 2018 View all Smart Meters Act 2018 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 5 February 2018 - (5 Feb 2018)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)
May I say what a pleasure it is to see you in the Chair, Mr Deputy Speaker, even though it obviously means a higher level of behaviour from all of us, as well as our obeying your edicts on timekeeping and so on? I thank all Members who have contributed to the debate, particularly the shadow Minister, the hon. Member for Southampton, Test (Dr Whitehead); the hon. Member for Birmingham, Selly Oak (Steve McCabe); the hon. Member for North Ayrshire and Arran (Patricia Gibson)—I always forget the second bit—and my hon. Friends the Members for Stirling (Stephen Kerr) and for Chippenham (Michelle Donelan).
We have covered a number of areas in our debate, which has built on the consideration given to the Bill on Second Reading and in Committee. The main point about the Bill and the roll-out of smart meters—I am not making light of any of the comments made by Opposition Members, or indeed Conservative Members—is that the prize is a great one: everyone, in their own household, controlling a smart grid that will give them independence, flexibility and consumer choice. In the long run, I hope that that will lead to very significant savings for them. I felt that I should put that into perspective.
Steve McCabe
I recognise that that is the Minister’s genuine view, but how much should consumers pay for the privilege, and at what point will he feel that they are not getting the benefits they have been promised?
Richard Harrington
As the hon. Gentleman said, I am convinced that consumers will get the benefit from smart meters. In this day and age, it is absurd that people—I include myself—have to read their meters on their hands and knees, with a torch and a duster to remove the cobwebs and everything else. I think that the hon. Gentleman would agree that that is an intolerable situation and that smart meters are the cure.
Let me respond to the shadow Minister’s comments about progress to date. There are now over 8.6 million smart and advanced meters operating across homes and small businesses across Great Britain. Nearly 400,000 smart meters—obviously they affect a lot more people, because of the number of people per household—are installed every month as suppliers ramp up their delivery, and that figure is increasing significantly every quarter. The Government are committed to ensuring that all homes and small businesses are offered smart meters by the end of 2020.
Let me turn to new clause 1. Future smart meter communication licensees will need to demonstrate that they are a “fit and proper person” to carry out relevant functions. That will include factors such as the ownership of the proposed licensee, but it is not appropriate to judge suitability solely on that basis, nor to exclude non-GB companies by default. Doing so would risk failing to deliver value for money for consumers, which could undermine the effectiveness of the smart meter system. I also emphasise that the Government take the national security implications of foreign control and ownership seriously. We have powers under the Enterprise Act 2002 to intervene in mergers and takeovers that give rise to public interest concerns, including about national security.
New clause 2 is about the technical development of smart meters. Overall, we expect that more than 99.25% of premises will be covered by the national communications network. In homes, the standard wireless network will serve the majority of premises successfully. We want 100% of energy consumers to be able to benefit from smart meters, but it is true—this was raised by the Opposition—that the physical characteristics or location of a consumer’s home can affect connectivity. Challenges for systems include a diverse range of building types, including those in which meters can be a long way from the living space. We are working with the industry to identify innovative solutions and extend regulatory powers, because it is very important to have that flexibility.
Richard Harrington
I will, but I will make some progress first.
New clause 3 concerns the efficient removal and disposal of old meters. My officials have discussed this in detail with those from the Department for Environment, Food and Rural Affairs, as this falls within their remit. This point was brought up very eloquently by the hon. Member for Birmingham, Selly Oak. I am satisfied that energy suppliers, installation contractors and meter asset providers are already subject to appropriate regulation for the proper removal, recycling and disposal of redundant meters. However, as I said in Committee, we plan shortly to host a roundtable so that interested Members can hear from representatives from across the meter disposal chain. It is my intention that that will allow us collectively to agree some action. I look forward to the hon. Gentleman and other interested Members being there, because the whole supply chain has to understand fully its responsibilities.
I will briefly focus on concerns raised about the programme costs and benefits.
Dr Drew
I thank the Minister for giving way. What I am concerned about, as always, is the urban-rural divide. We know that many rural areas are still suffering from a lack of access to broadband. Will he assure us that the rural delivery of this project is a priority, given that a lot of people in rural areas suffer because they are off the gas grid anyway?
Richard Harrington
I totally give that undertaking to the hon. Gentleman, and I apologise for saying that I would take his intervention and then forgetting to do so. I hope he will forgive me.
I said during previous debates that we would update our analysis if there were new and substantive evidence or changes in policy design. As a result of the representations that have been made in Committee and today, I am prepared to go further by committing to publishing an update of the programme cost-benefit analysis in 2019. As hon. Members know, 2018 marks a significant programme transition, with the shift from first to second-generation smart meters, so I think that 2019 really is the time to assess this.
As for new clauses 5 and 6, I do not believe that it is sensible to establish powers that enable the Government to require the provision of information on the costs of the programme in consumers’ energy bills, because I do not understand what benefit such a move would have for consumers. However, it is important that consumers understand the information that smart meters and in-house displays give them, because in that way, they understand the cost of their energy usage in pounds and pence—or as my hon. Friend the Member for Erewash (Maggie Throup) would say, pounds, shillings and pence, and probably farthings. She is a lady after my own heart. That will empower them either to change how they use energy, or to get a better tariff.
The hon. Member for Birmingham, Selly Oak has raised concerns, as he did in Committee, about the MAPs—not pictures of the world, but meter asset providers—because he believes that the provider market is not working to deliver the programme objectives. I remain of the view, however, as I have clearly stated to him before—we will have to agree to disagree, I think—that the market is operating competitively and that there is no need for regulatory intervention. There are currently two typical rental arrangements available: churn contracts and deemed contracts, which he mentioned. Churn contracts are often similar to the original rental agreements, including with the presence of an early-repayment charge in the event that a supplier chooses to remove the meter from the wall early. Deemed contracts do not include that charge, but carry the added risk for a MAP that they can involve higher rental charges. The important point is that the DCC has published its detailed plan for the enrolment of SMETS meters from late 2018, and as progress is made, I fully expect energy suppliers’ confidence in choosing churn contracts over deemed rentals to increase. Initial indications support that expectation.
I turn briefly to the amendment on the draft licence modifications envisaged under a power in the Bill to allow the costs of smart meter communication administration to be recouped from the industry, in so far as there is a shortfall. The potential scale of the costs will depend on a number of factors, including the timing and reason for the DCC licensee entering special administration, and costs arising from any legal and technical expertise appointed by the administrator in support of the execution of its duties. As I committed to doing in Committee, we have formally agreed to consult on these licence modifications. We will consider and set out an assessment of the estimated potential costs that need to be recouped from the industry.
I would like to reflect on the points made about the DCC’s parent company, Capita, and to emphasise that Smart DCC Ltd is required to operate at arm’s length from Capita. Provisions in the licence prevent Capita from taking working capital out of Smart DCC Ltd. Furthermore, the DCC’s financial arrangements are constructed so as to make the risk of insolvency low. Putting in place a special administration regime is entirely precautionary and, I believe, the prudent thing to do.
The smart metering programme will secure an overall net benefit to the nation of £5.7 billion. The Bill is important to ensuring that this vital platform for our smart energy future is rolled out effectively, allowing the Government to respond to developments as the roll-out continues. I hope that these arguments will persuade Opposition Members not to press their new clauses and amendments.
Dr Whitehead
I am disappointed that the Minister did not give us a better explanation and understanding of what “offer” means as far as smart meter roll-out is concerned. Indeed, that question was raised from the Conservative Benches. It might be that the Secretary of State can better illuminate us on Third Reading. Strictly speaking, however, that does not relate to the new clauses and amendments, on which we have had a good debate. If necessary, there will be further such debate in another place. This evening, however, it would not be wise to divide the House, so I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
Third Reading
Patricia Gibson
It is important to point out that we in the SNP accept that there are some real advantages to the consumer in switching to a smart meter and to smart meters in general. However, that does not mean that I suggest that the roll-out will be trouble-free and that I have no concerns about it, because that would not be true. Before proceeding, however, I would like to point out that I accept that the Minister has been receptive throughout to my concerns and the concerns of others across this House in Committee and beyond, and I thank him for that. I know he is keen to get this right, as we all are, and I thank him for his listening, consensual and constructive approach.
In the past, I pointed out to the Minister that I had concerns about aggressive selling which I believe is, as I have said, a result of Ofgem having the power to fine energy companies up to 10% of their annual turnover if they fail to meet their licence conditions—or certainly not assisted by that fact. One of the licence conditions is that each energy company should install smart meters in consumer homes by the end of 2020. Failure to do so can result in a massive penalty for the company. That being the case, aggressive selling starts to make more sense, given the pressure that energy companies are under to deliver smart meters to consumer homes within a rather tight deadline. I continue to detect a level of suspicion and scepticism about smart meters among far too many consumers. I hope that the Minister will accept that the licence conditions place pressure on the energy companies to roll out smart meters by 2020, and that that can place pressure on consumers in turn.
I am sure that, like me, the Minister will have been disturbed to learn of recent reports of energy companies employing salespeople to go out and proactively sell smart meters to consumers. If the reports are true, those salespeople can earn commissions of more than £1,000 week, which equates to bonuses of twice what the average worker earns in a year. Will the Minister acknowledge that this can lead to overbearing and aggressive doorstep selling, which can put consumers under pressure? Does he share my concerns about this? If so, what steps can he take to address it?
Cold calling is a discredited way of selling that puts undue pressure on consumers, particularly vulnerable ones. Does the Minister think that this is an acceptable way to proceed, given the rewards that sales reps can earn if they “persuade” enough people to install a smart meter? Is sending target-hungry salespeople to chap on the doors of the elderly and vulnerable the most desirable way we can think of to roll out smart meters? I would be extremely disappointed if the Minister—and indeed Ofgem—thought so. We know that doorstep energy selling was left with a very poor reputation after a series of investigations by Ofgem led to suppliers being fined millions of pounds for misleading customers over how much they could save. This resulted, between 2011 and 2012, in all the big six suppliers scrapping face-to-face sales practices, but smaller energy companies are now once again sending staff out to knock on doors. Is the Minister entirely comfortable with that? What reassurances can he offer to consumers and vulnerable members of our communities that they have the protection they need from such companies?
The Minister will also be aware of concerns about misleading letters being sent to consumers suggesting that smart meters are compulsory rather than optional. I want to put on record my thanks to the Minister for sending me samples of letters that have gone out to consumers from various energy companies, in order to reassure me. However, very few of those letters point out that smart meters are optional, and that the customer can refuse to have one. All the power companies in the sample of the largest suppliers say absolutely nothing about smart meters being optional. Does the Minister think that that is acceptable? Is he, like me and the trading standards authorities, concerned about this? If so, what action can Ofgem take to address the situation?
What is going on with the “You have been chosen for a free upgrade to a smart meter” letters that some companies are sending to consumers? I wish all consumers were aware that when a business tells them that they have been “specially selected” for something, it usually means that everyone has been “specially selected” for it and that the term is meaningless. Another old favourite involves the words “You are eligible”, which is also misleading, because everyone is eligible. If we all have the option to have a smart meter, why do some companies feel that it is honest and in order to tell us that we have been “specially selected”, or that we are “eligible” for one? Does the Minister have concerns about this way of misleading customers?
Richard Harrington
I thank the hon. Lady for giving way. I was trying to attract her attention while she was mid-speech. The type of sales proposal she has mentioned is totally unacceptable. It is not within the regulations, and if she would like to write to me or see me with specific examples, I will take the matter up with the regulators myself.
Patricia Gibson
I thank the Minister for his response, but the information that I am imparting tonight comes from the sample of letters that the Minister sent to me, so some energy companies are clearly using this sharp practice. I would not say that all of them are, but some are certainly not saying that smart meters are optional, instead using language such as “You are eligible” or “You have been specially selected,” which is unacceptable.
Energy Policy
Lord Harrington of Watford Excerpts(6 years, 3 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)
I hereby give notice of the Department of Business, Energy and Industrial Strategy’s intention to seek an advance from the Contingencies Fund in the amount of £2,275,000 for FY 2017-18 to provide financial cover to the Office for Nuclear Regulation (ONR).
This cash advance from the Contingencies Fund is required in order to enable ONR to establish a new domestic civil nuclear safeguards regime ahead of the UK’s withdrawal from the European Union and Euratom on 29 March 2019. This is in line with the written ministerial statements made by the Secretary of State for Business, Energy and Industrial Strategy on 14 September 2017 and 11 January 2018. The work necessary includes recruitment and training of additional safeguards officers and installation of a new safeguards IT system.
ONR has already begun some preparatory work to deliver the regime but requires this cash advance to move to its next phase of project implementation which includes financial commitments towards recruitment and asset purchases, to be able to deliver the regime ahead of day one of exit.
Parliamentary approval for additional resources of £2,275,000 for this new service will be sought in an estimate for the Department of Business, Energy and Industrial Strategy. Pending that approval, urgent expenditure estimated at £2,275,000 will be met via repayable cash advances from the Contingencies Fund.
The cash advance will be repaid upon receiving Royal Assent for the Nuclear Safeguards Bill and the Supply and Appropriation Bill.
[HCWS445]
Oral Answers to Questions
Lord Harrington of Watford Excerpts(6 years, 3 months ago)
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Martin Vickers (Cleethorpes) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)
I am delighted that the industrial strategy White Paper commits to considering a town deal for Grimsby, which I know has been warmly received by my hon. Friend. I welcome the strong public-private approach to driving forward ambitious plans for the regeneration of Grimsby. The Department and the project board are in close contact on the detail of this deal, and I hope that we will have a proposal for consideration in the very near future.
Martin Vickers
I thank the Minister for his reply, and I would point out that this deal also includes Cleethorpes—it is for Greater Grimsby. I know that discussions are continuing at official level, but I would welcome an opportunity for the Minister to meet representatives of the project board in the new future, so that we can give some political clout to this deal, which could provide a pilot for many provincial towns up and down the country.
Richard Harrington
I would be delighted to meet my hon. Friend and members of the Greater Grimsby—including Cleethorpes—project board either as soon as I am able to leave Westminster or in Westminster. I encourage my hon. Friend to organise a meeting here so as not to lose any time in holding this important engagement—and if he wants to bring some local fish and chips, that would be fine.
Melanie Onn
The hon. Member for Cleethorpes (Martin Vickers) will know that Great Grimsby is obviously the centre of the universe, certainly in northern Lincolnshire. This project is really important, and it is essential to improving jobs, skills, housing and culture in my constituency of Great Grimsby. It does seem to have been ping-ponged between the Ministry of Housing, Communities and Local Government and the Department for Business, Energy and Industrial Strategy. Who is taking the lead, how much will the Government commit to ensuring its success and when will my very patient constituents start to see the change that they deserve?
Richard Harrington
I assure the hon. Lady that I am not a ping-ponger, and this shows the Government working together. We will continue to work together, and I will take responsibility for making sure this happens as soon as is possible.
Paul Blomfield (Sheffield Central) (Lab)
Gillian Keegan (Chichester) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)
We have a range of grant schemes to support the installation of charging infrastructure—on-street, off-street and at workplaces. At the autumn Budget, the Chancellor announced a £400 million joint public and private charging infrastructure investment fund.
Mark Pawsey
My constituency is already home to the new electric London taxi, and we have recently heard the announcement of £80 million of investment in a new electric battery development facility in Coventry. Does the Minister agree that this presents opportunities for my constituency and the wider area to establish leadership in the electric vehicles sector?
Richard Harrington
It certainly does, and I have had the honour of visiting my hon. Friend’s constituency. On the day we announced the battery facility he mentions, the CEO of Jaguar Land Rover declared:
“We also intend to produce battery electric vehicles in the region, bringing the West Midlands to the forefront of modern mobility in the UK.”
That is the industrial strategy in action.
Gillian Keegan
Chichester District Council has invested in 20 new electric vehicle charging points in carparks throughout the district. However, a constituent recently told me that it took him six and a half hours to get from Chichester to Oxford in his electric car because there were insufficient charging points during the journey. What is the Minister doing to join up individual council initiatives to ensure that there is a comprehensive network of charging points nationwide?
Richard Harrington
We are pressing hard on this. The Government are taking powers under the Automated and Electric Vehicle Bill to ensure that the infrastructure is rolled out. Government leadership, along with local authority engagement and a growing private sector, means that the UK now has more than 11,500 publicly accessible charge points. The Government have committed £15 million to ensuring that there will be one every 20 miles on the strategic road network. That is coming, and it will be coming soon.
John Penrose (Weston-super-Mare) (Con)
Mr Laurence Robertson (Tewkesbury) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)
The sector has huge growth potential. The Government support the industry through the aerospace growth partnership and have committed £3.95 billion for it, which already supports 200 companies, including Safran and GE Aviation in my hon. Friend’s constituency.
Rachel Reeves (Leeds West) (Lab)
Kevin Hollinrake (Thirsk and Malton) (Con)
Will the Minister support Transport for the North’s strategic transport plan, which calls for a 50% increase in regional infrastructure spending across the north of England?
Richard Harrington
Infrastructure is a major pillar of the Government’s industrial strategy White Paper, and local input is essential. I welcome Transport for the North’s input, and I am sure that my right hon. Friend the Secretary of State for Transport will welcome this, too.
Jack Dromey (Birmingham, Erdington) (Lab)
The hostile takeover of GKN by Melrose threatens break-up, sale and closures. The Secretary of State has powers under section 58 of the Enterprise Act 2002 to intervene. Will he intervene to block this hostile takeover, which is not in the national interest?
Energy Frameworks
Lord Harrington of Watford Excerpts(6 years, 3 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)
I am today launching a public consultation on the draft national policy statement and supporting environmental appraisals for geological disposal infrastructure for higher activity radioactive waste. I am also laying the draft national policy statement before this House which will be subject to parliamentary scrutiny, including review by the Business, Energy and Industrial Strategy Select Committee.
A second consultation “Working with Communities” proposes how local people should be engaged if they express an interest in hosting a disposal facility. A facility will only be approved for construction with the consent and support of the local community affected.
In 2014 the Government set out a renewed approach to finding a site to host a geological disposal facility in the “Implementing Geological Disposal” White Paper which was developed following consultation with stakeholders and the public. In it, the Government committed to bringing geological disposal facilities and the deep investigatory boreholes necessary to characterise sites within the definition of nationally significant infrastructure projects and to producing a draft national policy statement for this type of infrastructure in England. The relevant secondary legislation to designate geological disposal facilities and deep investigatory boreholes as nationally significant infrastructure projects was passed in March 2015.
The draft national policy statement sets out a clear route for future planning decisions in respect of geological disposal infrastructure in England, as well as providing planning guidance for developers of such projects and for the Planning Inspectorate and Secretary of State in their consideration and determination of any such applications. The national policy statement will give greater certainty to developers and lead to faster and more transparent delivery of planning decisions. The Government have appointed Radioactive Waste Management Ltd, a wholly owned subsidiary of the Nuclear Decommissioning Authority, to develop this infrastructure. It does not prevent any other developer from bringing forward an application for development consent for a geological disposal facility or deep investigatory boreholes; however, we are not aware of any other developers showing an interest in developing a geological disposal facility and do not expect this to occur.
In this consultation we are actively looking for views and suggestions on the draft national policy statement and the related environmental and sustainability appraisal documents to enable us to meet our objective of delivering a clear planning process for a geological disposal facility in the most effective and efficient way.
The consultation will run for 12 weeks, and will include a series of regional events and technical workshop with interested parties. In parallel with this consultation, we are also running another consultation seeking views on a draft framework for Radioactive Waste Management Ltd’s engagement with willing communities as part of the separate process of finding a suitable site for a geological disposal facility. The approach of working with a willing community to host a geological disposal facility, as set out in the 2014 White Paper, gives communities an opportunity to decide whether or not they wish to proceed with the development of a geological disposal facility. The working with communities policy sets out how Radioactive Waste Management Ltd will work with a community throughout the siting process. Once a community has indicated its support for hosting a geological disposal facility the national policy statement sets out how a geological disposal facility application will be assessed through the planning system. It is important to stress that all the usual opportunities for the public to have a say in the development of a facility like this through planning, safety, security and environmental permitting processes will also be in place.
Planning is a devolved issue and so this draft national policy statement provides the framework for the decision making on development consent applications for geological disposal infrastructure in England only. The planning process in Wales and Northern Ireland is to be decided by their respective Administrations. Scotland has a different policy for the long-term management of higher activity radioactive waste.
Following our analysis of the responses to this consultation and the consultation on working with communities and feedback from the Select Committee, we will finalise our policy approach.
The “relevant period” for parliamentary scrutiny of the national policy statement will be from 25 January 2018 to 28 September 2018.
The consultation document and supporting papers will be laid in the Libraries of both Houses.
Today I am also publishing the seventh and latest annual report on the geological disposal programme covering the period April 2016 to March 2017. The report can be found at: https://www.gov.uk/government/publications/implementing-geological-disposal-annual-report-april-2016-to-march-2017 and I have made available copies in the Libraries of both Houses.
[HCWS427]
Pubs Code 2016
Lord Harrington of Watford Excerpts(6 years, 3 months ago)
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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
Toby Perkins (Chesterfield) (Lab)
It is a pleasure, as always, to serve under your chairmanship, Mr Robertson. I congratulate my hon. Friend the Member for West Bromwich West (Mr Bailey), who has been an incredibly important contributor to us getting as far as we have towards justice for pub tenants and a fully functioning, fair market in our pubs industry. My hon. Friend made his case in a typically impressive fashion and laid out many of the issues that face all those who want the pubs code to work in the way that Parliament originally intended.
I do not propose to repeat all the history that my hon. Friend laid out, but it is important to remember that Parliament, and subsequently the Government, took the fairly unprecedented step of intervening in a market—and despite the rhetoric, that has not been the Government’s modus operandi over the last few years—because of historic market failure. There was recognition that pub companies had failed to get their house in order, despite numerous opportunities to do so, and that there was an unfair imbalance in the relationship between powerful pub companies and tenants, who were individual small business people.
For that reason, hon. Members in all parts of the House voted to support the introduction of a market rent only option in the pubs code as part of the Small Business, Enterprise and Employment Act 2015. The support of Conservative and Liberal Democrat Members meant that the Government were defeated, and the market rent only option was put in. It is important for us all that that works, and that we deliver on the principles intended by the 2010 to 2015 Parliament.
I would like the Minister to clarify that he is responsible for the pubs code. I was under the impression that the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Burton (Andrew Griffiths), had taken over the role.
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)
I confirm that I have that portfolio. That has happened only in the last few days, but I am and will be responsible for pubs. I am listening eagerly to what the hon. Gentleman and other hon. Members are saying.
Toby Perkins
I thank the Minister. If that was not press released, he has just released it. I congratulate him on that important role. He may well know the history, but others may not.
One of the founding principles of the pubs code’s introduction, as laid out by the right hon. Member for Twickenham (Sir Vince Cable) when he was Secretary of State for Business, Innovation and Skills, was that there should be a rebalancing of the level of reward between pub companies and tenants. The Government’s intention was specifically that tenants should be better off as a result of the pubs code’s introduction.
My hon. Friend the Member for West Bromwich West referred to two key principles: that the market rent only option should be on a fair and reasonable basis, and that tenants who were tied should not be worse off than those who were free-of-tie. I will come back to that point.
Perverse and bizarre as it may sound, the introduction of the pubs code was simultaneously late to arrive and rushed. It had a short period of implementation and took a long time after the legislation was passed to be delivered. As a result, sufficient preparation was not done by Government, or by some companies, to get ready for its introduction.
The appointment of the Pubs Code Adjudicator was surrounded by controversy. My hon. Friend referenced the inordinate delays and some of the methods used to prevent landlords fulfilling their rights to go market rent only. It is important to remember that many tenants are in a perilous financial position when they seek to go free-of-tie. They are not in a position where inordinate delays, very substantial outlays of cash or huge legal costs are attainable.
If we want to deliver the opportunity—the right—for the tenant to assess an independent market rent and decide whether they want to have a landlord-tenant relationship, or whether they want to receive all the services from a pub company, it is important that the delays are not inordinate and that false additional charges are not put in to prevent them from being able to take up that right. That is one of the strategies that seem to be being used very deliberately.
Most tenants have a five-year contract period. If they come to the end of a contract and attempt to get a free-of-tie rent assessment, the clock is ticking on their next five-year contract. That delay is being put in there, but if they subsequently go free-of-tie or get an arbitration or adjudication award in their favour, there is no opportunity to backdate that to the start of their five years—all the more reason why the principle should be that the adjudicator carries out their role in the most timely fashion possible. Any tenant who manages to get an independent assessment and decides to take that up does not get that rent backdated. The code should be amended so that rent is backdated to the point of application. I ask the adjudicator to adjudicate on that and the Minister to clarify that in his remarks.
For many tenants, there is a narrow window in which they can take up the right to get an independent assessment. At the end of their contract, they have to let their pub company know. They are often waiting for a new assessment and under the impression that they are still part of a negotiation by the time that they realise that they have missed out on their opportunity to take advantage of it.
My hon. Friend referred to the conflict of interest that many people feel Mr Newby had when he took on this role. There are two important elements of that for tenants’ confidence in the process. We should be clear that many tenants would like the opportunity to take up their right, but have lost confidence in the process. They believe that if they try to take up that right, they will only take on additional cost, so they are not taking advantage of this. I am sure that that disturbs all hon. Members who wanted the legislation to be introduced.
There is a financial conflict. Mr Newby continues to hold shares and to be owed money by Fleurets, which has many leading pub companies as its customers. Whatever the questions about his history, it is absolutely wrong that he did not divest himself of that interest when he took on this role. We are talking about a relatively small sum—although significant for an individual —so given the importance of the industry and the legislation, it would have been far better for him to have divested himself of that.
The point about the Chartered Institute of Arbitrators ruling against the PCA’s arbitrating on four different cases is significant. The Chartered Institute of Arbitrators’ spokesman said that when a challenge was upheld, an arbitrator’s appointment in that dispute is “immediately terminated”, and they should not be involved in that case again. In response to that, a spokesperson on behalf of the Pubs Code Adjudicator said that because his responsibilities were established by an Act of Parliament, the PCA did
“not accept that the Chartered Institute of Arbitrators has any jurisdiction to appoint or remove an individual from the role of arbitrator in a pubs code arbitration.”
That is an important matter of law for the Government, and also a matter of direction.
I believe that as a matter of law, the PCA should have listened to the Chartered Institute of Arbitrators. Even if it is true that the institute does not have the power to remove him, a sensible arbitrator would say, “Given that an independent body says that I have a conflict of interest, it surely makes sense for me to stand down and appoint a truly independent arbitrator.” The question of the extent to which the Pubs Code Adjudicator is both an adjudicator and an arbitrator is significant, because arbitrations happen in private and adjudications happen in public.
What we have seen from the Pubs Code Adjudicator so far is that he is much more of an arbitrator than an adjudicator. Might the Government consider separating those roles? The role I envisage for the PCA as a spokesman for the code is undermined by the fact that so much of his dealings are done in private, so he has not taken on nearly enough of a forceful role, which is what I would like him to play. If he criticises some of the pub companies, as he does, that perhaps makes it more difficult for him to arbitrate in private with them, so there are real difficulties in all of that.
My hon. Friend the Member for West Bromwich West referred to the section 40 powers of the Small Business, Enterprise and Employment Act 2015, which impose a duty on the Pubs Code Adjudicator to notify the Secretary of State if he believes the code is being breached and not followed. It is clear from his public pronouncements that he believes the code is being breached, but I am under the impression that there has never been a section 40 notice given to the Secretary of State. If that is the case, will the Minister or the Secretary of State pursue that with the Pubs Code Adjudicator? If he is publicly saying that there is wrongdoing, why has he not written to the Secretary of State with suggestions about altering the code to clarify and strengthen his case, or made the report that he has a duty to make?
There are two or three key questions in the pubs code that it is important to clarify. One of them concerns market rent only. The right to market rent only is laid out in the Act, and that should not need any arbitration. It is a fact that if someone reaches one of the trigger points, they are entitled to ask for a market rent only option. The pub company has a right to make an offer, but if the tenant believes the offer is not fair, they have the right to go to an independent arbitrator. For some reason, the Pubs Code Adjudicator considers all the different applications to be arbitrations, but an independent assessment should not be a matter of arbitration. That is absolutely the principle of the clause in the Bill that we all approved.
On the market rent only option, the fact that someone would pay rent for the pub and not be tied on the drinks that are sold is absolutely accepted by the tenants and the pub companies. The question then arises: which of the other terms in the contract should also be a part of the contract? The pub companies would say a market rent only option means market rent only, and that is the basis of the entire relationship, whereas the tenants say that anything that is common in the industry that was part of the original contract should be part of the subsequent contract. Will the Minister clarify that?
Finally, to be positive, the appointment of the Deputy Pubs Code Adjudicator is welcome. We have seen a real difference since she was appointed. I would like to see her take an ever greater role. Some tenants are getting a better tied deal as a result of the threat of going free of tie. However, the question of deeds of variation is important. Will the Minister set out his view on that?
In conclusion, how many times, if at all, has the Pubs Code Adjudicator written to the Secretary of State to report failure to adhere to the spirit of the code? What is the Government’s view on whether terms that were in a previous tied contract should remain in free-of-tie contracts? Do the Government agree that Mr Newby should accept the verdict of the Chartered Institute of Arbitrators, and do they believe that the Chartered Institute of Arbitrators has a right to a view on those questions? It is important. The pubs code is a vital opportunity for the industry. It is important that we all make it work.
Bill Esterson (Sefton Central) (Lab)
It is a pleasure to serve under your chairmanship, Mr Robertson, and I congratulate my hon. Friend the Member for West Bromwich West (Mr Bailey) on—yet again—securing a debate on this topic. I did not attend the debate on pubs last year, but I did attend the one before that. I am no longer the shadow pubs Minister; that is now my hon. Friend the Member for Sheffield, Brightside and Hillsborough (Gill Furniss), but sadly she has the flu and has sent her apologies for today’s debate.
Bill Esterson
I will pass on that message from the Minister.
Given that I follow the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), I will point out that my constituency includes the oldest pub in Lancashire, the Scotch Piper Inn—there is a link there of some sort. We have three microbreweries and two micropubs, the Beer Station and the Corner Post. The hon. Member for Strangford (Jim Shannon) made a good point about the importance of pubs as community hubs, and I agree with his other comments about the need for accountability in the implementation of the code.
My hon. Friend the Member for West Bromwich West set out the key issues with his usual forensic accuracy, and he mentioned the concerns about the appointment and continuation in post of Mr Newby. I raised concerns about conflicts of interest in the debate two years ago, and such concerns have continued. Sadly, the predictions about Mr Newby’s difficulty in obtaining the trust of pub tenants have been all too well demonstrated. The cases against him by the Chartered Institute of Arbitrators—that he has continued to arbitrate and has not accepted the decision, and that he is in breach of the code of conduct for a body of which he is a member—have not helped, and they continue to give the impression that all is not well with the implementation of the pubs code.
My hon. Friend the Member for Chesterfield (Toby Perkins) was modest in not mentioning his role in securing cross-party agreement on amendments to the Small Business, Enterprise and Employment Bill in 2015. The cross-party agreement had a lot to do with his work, as well as that of Greg Mulholland and other Members across the House. We had the insertion of the market rent only option, but the delivery of that is missing, as is any assurance on the intention that tied tenants should not be worse off than they would be if they were free of tie. My hon. Friend made those points extremely well. As he said, it is vital that we make this work. That is why it is so important that we are having this debate.
I will go through three points for the Minister, who I welcome to his new role. His brief is interesting and exciting, and it is important for many people across the country. I hope he is able to get to grips with the real challenges and concerns that remain. Three questions have been brought to my attention in preparing for this debate. They have been covered, but I will attempt to summarise them. First, the Government may make the point that the code is complicated and will take time to bed in. That is true, but it is overly complicated and completely unnecessarily so. As other Members have said, that complexity has allowed pub companies to use their resources and their power in the relationship—my hon. Friend the Member for Chesterfield made this point—to make it difficult for pub tenants to challenge them and achieve the fair market approach that they should be entitled to. Because of the size of the legal bills, it is simply not possible for pub tenants who attempt to use the code to come up with the necessary resources.
The second point that the Government may make is that the Pubs Code Adjudicator, through the Government, was not prepared for the huge take-up. Few staff were in place at the start, and there was a delay in putting in place a deputy adjudicator, despite the overwhelming evidence of abuse. There were 15 years of inquiries by Select Committees, as my hon. Friend the Member for West Bromwich West set out in his opening speech. The system was not set up in the right way, and it should have been.
The third point that the Government may make is about whether there has been an improvement in the financial balance between the pub-owning companies and pub tenants. Ballpark figures suggested to me are that a pub company would typically earn £90,000 from an average pub, which possibly breaks down to £20,000 in rent and £70,000 from tied products. The tenant earns just £10,000. Because of the process, the delays and the inaction from the adjudicator, it is difficult to do anything about that; but for those who try, there has been something of a change, as my hon. Friend the Member for Chesterfield alluded to. There may be a slight improvement, with a £5,000 or £10,000 reduction in the rent and an increase in the tenant’s income to £15,000 or £20,000, but that is still not a realistic living wage for someone running a pub, and the pubco is still earning £80,000 or £85,000.
The point is that legislation was supposed to leave the tenant no worse off than they would be if they were free of tie, not marginally better off than poverty levels. That is the point being made by the campaigners. I pay tribute to all the campaigners who have lobbied so hard over the years—including for this debate—advocating for pub tenants. I include in that Liverpool CAMRA, which has been in contact with me a number of times over the years.
On their own, the three areas that I have set out are grounds for the Minister in his new role to make an early commitment, today or after he has considered the debate, to carry out a proper review of the application and implementation of the pubs code and how the adjudicator is operating. If he can address that and the other points made by my hon. Friends, we will make some real progress.
I am tempted to say—so I will—that the right hon. Member for Chipping Barnet (Theresa Villiers) demonstrated a certain failure by a Government of which she was a member for some years to support a pub in her constituency. I can assure her that the next Labour Government will stand up for pub tenants in a way that so far has not happened under this Government, and that will not happen unless they make the changes touched on in this debate. I was grateful to the hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont) for pointing out that in Scotland, Labour is at the forefront of introducing a pubs code north of the border.
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)
It is a pleasure to serve under your chairmanship, Mr Robertson. I very much thank all Members who have spoken, particularly the hon. Member for West Bromwich West (Mr Bailey). I make clear that I was gesticulating to the shadow Minister, the hon. Member for Sefton Central (Bill Esterson), simply because I wanted the time to be able to go through the points he was raising. His comments, like those of everyone else, were extremely useful. I will do my best in the time allocated, conscious of the fact that I need to give the last word to the hon. Member for West Bromwich West, who secured this debate on a serious matter.
I was made the Minister with responsibility for pubs just this week. One can never say in politics that something is not a temporary job, but pubs are part of my portfolio—I accept that the shadow Minister is here because of the sickness of his colleague, and he dealt with that extremely well, as he always does—and I want to learn. Today’s debate is part of the learning process. The Government remain fully committed to the pubs code, because we intend to ensure that tied tenants can operate in a fair environment that allows their businesses to thrive.
Many Members, but in particular my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont), went through what the Government are doing to support pubs. The announcements in Budget 2017—the freezing of alcohol duty and the extension for another year of business rate relief for pubs valued under £100,000—are important, but we are here to discuss the pubs code.
The pubs code regulates the relationship between more than 500 tied pubs in England and Wales and their tenants, and there are six pub-owning companies involved. In total, 11,500 tied pub tenants are covered by the pubs code, so it is quite a lot, given that it is comparatively new.
We all know the principles, which I do not have time to go through. The code was intended to ensure fair and lawful dealings by pub-owning companies in relation to their tied tenants, and that those tenants should be no worse off than if they were not subject to any tie. It is now 18 months old. The shadow Minister asked whether the Government would carry out a review. That was an important point, but the legislation makes it clear that the Secretary of State will carry out a review of the pubs code and the performance of the Pubs Code Adjudicator every three years, with the first review period running from July 2016 to March 2019. That does not mean that I am avoiding anything, but the law is very clear. We will not just ignore the situation until that time, and I am very conscious of the points the hon. Gentleman made.
The tenants are engaging with the Pubs Code Adjudicator, Mr Paul Newby, and his office. His role is very clearly to oversee the pubs code, and to encourage and monitor compliance by the businesses in scope. He has the enforcement powers to arbitrate individual disputes concerning the pubs code. It is still early days, but I can see that individual tenants do not have confidence in that approach, given the many people in the Gallery today and the comments that have been made by hon. Members, reflecting what they have been told by pubs in their constituencies.
I hope many people have confidence in the PCA’s decisions. Some tenants have reported publicly—I looked at the reports before the debate—that PCA decisions have left them better off. However, I would be very ignorant, blind and deaf to what has been said today if I said that everything is fine. I realise that there is a problem. Many hon. Members in the Chamber have spent a lot of time and effort getting the legislation to the stage that it is at today and monitoring its implementation. I do not intend just to say that everything is fine. I recognise the points made about the PCA’s performance.
As a result of today’s debate, I read the correspondence between the PCA and the hon. Member for Leeds West (Rachel Reeves), the Chair of the Business, Energy and Industrial Strategy Committee, with whom I dealt many times when working on my previous portfolio and for whom I have a lot of respect. I read the letter that she wrote to the PCA last year. There are key concerns about the speed of the arbitration process. Clearly, the PCA’s office has faced far greater demand than predicted, and the number of referrals has been significantly greater than was foreseen. At the PCA’s request, we have taken action to build up the team. The appointment of a Deputy Pubs Code Adjudicator, Fiona Dickie, who started at the beginning of November last year, has been mentioned. She is supporting Mr Newby in enforcing the pubs code, including arbitrating individual disputes. If it is under-resourced, it is our job to ensure that that is not the case. The PCA seems to be very conscious of that matter, and has not as far as I know asked for resources that have not been given.
The statements of principle on clauses mentioned by my right hon. Friend the Member for Chipping Barnet (Theresa Villiers) seem to me a very good idea, and I will look into that straight away. Officials may tell me that it cannot be done for some reason, but it seems to me, on the face of it, to be a very good idea to look into.
I am very conscious of time, Mr Robertson, but on the arbitration point, the PCA has received 225 cases for arbitration and accepted 186 as valid referrals. Of the accepted cases, 165 related to the market rent only tenancies that have been mentioned today. The PCA has issued 93 final awards. The fact is that Parliament chose arbitration as the means to resolve such disputes under the pubs code. My right hon. Friend the Member for East Yorkshire (Sir Greg Knight) asked why it was always in confidence. Arbitration, by definition, is a confidential process—that point was made later in the debate. We do not see individual cases. It is not right that the Government should see such cases such as that of Gary Murphy, the constituent of my right hon. Friend the Member for Chipping Barnet, because that is not how an arbitration system works. That does not take away any comments about the merits of the case, but it is not right that we, as the Government, are in a position to second-guess the arbitrator’s result. That is just how the system of arbitration works, but hon. Members might feel that it is not the right system.
The PCA has already published 40 products on its website, which I looked at before the debate. It provides a lot of information and guidance on the pubs code and PCA activities. As has been mentioned, it published the result of a verification exercise to understand the tenant’s experience in applying for MROs. When that was published, the PCA undertook work with the pub companies to inform the development of a compliance handbook that was published just before Christmas, setting out minimum standards for pub companies to comply with the pubs code MRO requirements.
The point about the lack of enforcement was a valid one. Perhaps on another occasion I will be able to go into greater detail, when I have more time. The PCA has set out his approach to investigations and enforcement in statutory guidance, and stands ready to take further action.
On the conflicts of interest point that was made about Mr Newby, the Secretary of State explained to the BEIS Committee that the appointment process was in full accordance with the code of practice for ministerial appointments to public bodies. I cannot comment on this one in particular, because I was not involved in it, but I have seen that practice for many other appointments that I have been involved in as a Minister. The process is very thorough, and I cannot believe that things were not disclosed and not considered properly. The panel concluded that Mr Newby had no particular conflicts of interest that should call into question his ability to do the job. I know what hon. Members meant—they are being very graceful in not chuntering—but there were proper processes.
The Government support the pubs trade. In the short time remaining, I would like to say that I have never met Mr Newby. I intend to send him a copy of the Hansard report of today’s debate when it comes out tomorrow, and ask for a meeting with him—perhaps in two or three weeks, to give him a little time—where he can provide answers to the specific questions that have been raised. After that, it is my intention to speak again to the hon. Member for West Bromwich West, and ask him to attend a meeting with me to go through those responses.