Cobham plc Merger
Andrea Leadsom Excerpts(5 years ago)
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The Secretary of State for Business, Energy and Industrial Strategy (Andrea Leadsom)
On 25 July 2019, the boards of Cobham plc and a subsidiary of funds managed by Advent International, a US private equity firm, announced that they had reached agreement on the terms of a recommended cash acquisition of Cobham for approximately £4 billion.
On 17 September, following advice from relevant Government Departments and agencies, I initiated a public interest intervention under the Enterprise Act 2002 into this merger on the grounds of national security. I required that the Competition and Markets Authority investigate the merger and provide me with a report on the transaction by 29 October, which it has done. The Secretary of State for Defence has also written to me about the national security implications of the merger and the discussions which have taken place with the parties to propose undertakings to address those implications. I am grateful for the advice I have received and the constructive engagement from the parties.
The decision on how to proceed in this case requires further full and proper consideration of the issues. Having received these reports, I will therefore have further discussions with my ministerial colleagues and the parties to the transaction to inform the decision-making process. I will update the House in due course so that hon. Members can scrutinise the Government’s decision. The full legal process will continue to be followed throughout the general election period.
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Shale Gas Exploration
Andrea Leadsom Excerpts(5 years ago)
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The Secretary of State for Business, Energy and Industrial Strategy (Andrea Leadsom)
This statement provides an update on the Government’s policy regarding shale gas exploration.
The Government continue to recognise the importance of natural gas as a source of secure and affordable energy as we aim to reach net zero emissions by 2050. The Committee on Climate Change predicts that we will still be consuming almost 70% of the gas we consume today in 2050 under our net zero target as significant reductions across building, industry and power are offset by demand for gas to produce hydrogen. It is therefore critical that the UK continues to have good access to natural gas from both domestic and international markets.
Given shale gas has the potential to provide a new source of domestic energy, the Government have supported the development of the UK shale gas industry. Domestic gas production provides jobs and other economic benefits. The industry is currently in an exploration phase and the Government have always been clear that it will only allow development in a way which is safe and sustainable—both for the environment and local people. We have therefore taken a precautionary, evidence-based approach to exploring this potential, underpinned by world-leading environmental and safety regulations.
Following seismic events in 2011 that were connected to shale gas exploration, the Government introduced regulations to mitigate these risks. A traffic light system was introduced to monitor real-time seismic activity during operations, with a clear framework for stopping operations in the event of specified levels of seismic activity.
The Government also introduced tighter controls over the shale gas industry through the Infrastructure Act 2015. This included the requirement for operators to obtain hydraulic fracturing consent from the Secretary of State which requires careful consideration and detailed scrutiny of the necessary technical and legislative requirements. This consent ensures that all the necessary environmental and health and safety permits have been obtained before activities can commence.
While the regulatory and legal framework for shale gas activities has operated effectively to date, it is right that Government and regulators regularly review whether it remains fit for purpose in light of further evidence from shale gas operations.
Cuadrilla, a private company exploring for onshore oil and gas, obtained hydraulic fracturing consent in 2018 to undertake shale gas exploration activity at their site at Preston New Road, Lancashire. Hydraulic fracturing operations took place in 2018 and 2019. Their operations were tightly controlled by the relevant independent regulators, including the Oil and Gas Authority, who are responsible for regulating the licensing of exploration and development of England’s onshore oil and gas reserves, including shale gas.
Following a seismic event of magnitude 2.9 on 26 August 2019, hydraulic fracturing at Preston New Road was suspended by the Oil and Gas Authority, in accordance with its strict regulatory controls. While seismicity was at a level below that at which we would expect significant damage, seismic activity at this level does impact local communities and was clearly unacceptable. An event of this significance was considered highly unlikely in the detailed plan that Cuadrilla provided to the regulator before their activities began.
In parallel to itsaction following the 26 August 2019 event, the Oil and Gas Authority has been analysing in detail data drawn from Cuadrilla’s earlier operations that took place at Preston New Road last year. This included commissioning a series of expert reports to better understand and learn from the induced seismicity observed in 2018. The Government have recently received these reports and they are being published alongside a summary of their findings by the Oil and Gas Authority today. The Oil and Gas Authority summary report contains a number of findings and interim conclusions and highlights that the causes of seismicity are highly dependent on local geology. While we cannot draw definitive direct comparisons between this site-specific evidence and other prospective shale gas sites, the limitations of current scientific evidence mean it is difficult to predict the probability and maximum magnitude of any seismic events, either in the Fylde or in other locations.
The Government have always been clear that we will take a precautionary approach and only support shale gas exploration if it can be done in a safe and sustainable way, and that we will be led by the science on whether this is indeed possible. It remains our policy to minimise disturbance to those living and working nearby, and to prevent the risk of any damage.
The Oil and Gas Authority intends to commission further research to incorporate new data from Cuadrilla’s more recent operations. The Oil and Gas Authority has made clear that it cannot evaluate with confidence whether a proposal to resume hydraulic fracturing in the Fylde, or to start operations elsewhere, will not cause unacceptable levels of seismicity. The OGA is therefore unlikely to approve future hydraulic fracture plans unless new evidence is presented.
On the basis of the current scientific evidence, Government are confirming today that they will take a presumption against issuing any further hydraulic fracturing consents. This position, an effective moratorium, will be maintained until compelling new evidence is provided which addresses the concerns around the prediction and management of induced seismicity. While future applications for hydraulic fracturing consent will be considered on their own merits by the Secretary of State, in accordance with the law, the shale gas industry should take the Government’s position into account when considering new developments.
Finally, alongside the Secretary of State for Housing, Communities and Local Government, I can confirm that the Government will not be taking forward proposed planning reforms in relation to shale gas that were subject to consultation last year. These include the proposals on the principles of a permitted development right for non-hydraulic exploratory shale gas development; making community pre-application consultation compulsory for shale gas development; and proposals to bring shale production development into the nationally significant infrastructure projects (NSIP) regime. Full Government responses which summarise the responses to these consultations have been published today.
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Leaving the EU: Workers’ Rights
Andrea Leadsom Excerpts(5 years ago)
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Laura Pidcock (North West Durham) (Lab)
(Urgent question): To ask the Secretary of State for Business, Energy and Industrial Strategy if she will make a statement on the Government’s plans for workers’ rights after the UK leaves the EU.
The Secretary of State for Business, Energy and Industrial Strategy (Andrea Leadsom)
The UK has a long and proud tradition of leading the way in workers’ rights and for setting the highest standards. The Government have been clear and consistent that the decision to leave the EU does not change that in any way whatever. The Government have absolutely no intention of lowering standards on workers’ rights. To suggest otherwise is scaremongering and is untrue.
The EU has traditionally set minimum standards for workers’ rights and, as all colleagues in this Chamber would expect, the UK already exceeds standards in a wide range of areas, such as maternity and paternity leave and pay. The UK offers 39 weeks of statutory maternity pay, compared with the 14 weeks of paid maternity leave required by the EU’s minimum standards. Because the Government believe in the importance of supporting families in every possible way, we have also given fathers and partners an additional statutory right to leave and pay, something that the EU is only now starting to consider. We are one of the few EU member states to have introduced shared parental leave and we are proud that in the UK we have given all employees with 26 weeks qualifying service a statutory right to request flexible working that enables so many to better balance work and life responsibilities. EU law only allows workers to make such a request if returning from parental leave.
Under the terms of the European Union (Withdrawal) Act 2018, all existing workers’ rights laws will be transferred into domestic law once we have left the EU, making sure there is no gap or lack of clarity in the minimum set of workers’ rights which, as I have already said, the UK exceeds in many areas. We are also including in the Withdrawal Agreement Bill a new requirement that every Bill brought before this place in the future that affects workers’ rights will include a statement by the Government of the day on how it impacts workers’ rights. This will ensure that Parliament always has its say. The Government have also published clauses that will require every Government, now and in the future, to monitor new EU legislation covering employment and workplace health and safety standards, and to report on those changes to Parliament so that Parliament can again have its say.
In direct answer to the hon. Lady’s question, I can absolutely assure her and this House that the Government will not lower standards on workers’ rights when we leave the EU. On the contrary, it is the ambition of this Government to make the United Kingdom the best place to work and to grow a business.
Laura Pidcock
Thank you for granting this urgent question, Mr Speaker. I persisted.
The leaked memos reported in the Financial Times over the weekend are both worrying and, at the same time, utterly predictable. They shine a light on the true politics of this Conservative Government and how they are seeking to use the withdrawal agreement Bill, as with their whole Brexit strategy, to sell out workers. The Prime Minister may keep repeating that it is an excellent deal, and no doubt that will be the mantra come a general election, but I would like to get to the truth. I want to start by asking the Secretary of State about the status of the documents, and particularly which Government Departments they were distributed to and when. At what stage was the Secretary of State aware of their existence and their content? If she was not aware, why not?
This issue is critical given that last week the Government gave a number of assurances on this issue to Members in this House, while at the same time they were seemingly discussing the very opposite among themselves. They will use Brexit as a blueprint for rapid deregulation, which will see the vital floor on protections disappear. This Government have proposed a Brexit deal that benefits their pals—the millionaires, the speculators and hedge fund managers—over working people. [Interruption.] Government Members can shout at me all they want, but that is the truth. How can we trust a Prime Minister who stood up and said they would keep the “highest possible standards” on workers’ rights, when the leaks show that the Government view such commitments as “inappropriate” and that negotiators had “successfully resisted” them being included in the legally binding part of the agreement with the EU? These rights are not inappropriate; they include things such as maternity leave, working hours, paid holiday leave—things that make a difference in people’s lives.
The Secretary of State says that the Government do not intend to dilute rights after we leave the EU. May I then ask her very simply: why did they take level playing field obligations out of the legally binding part of their Brexit agreement? Crucially, has the Secretary of State’s Department or the Cabinet Office ever looked at deregulation? If so, why? We need to get to the bottom of this. The Government are relying on the complexity of the legislation to bury their true approach to workers’ rights. Once we expose exactly the consequences of their approach to leaving the EU and what it means for our communities, they know that the Government could never win support of this House and, more importantly, of working people. Rather than resisting workers’ rights, we need a fundamental shift in power from the owners of business to workers. It is only a Labour Government who will ever do that.
Andrea Leadsom
Well, Mr Speaker, that was incredibly disappointing. The hon. Lady obviously was not listening to a thing I said. If she will allow me, I will just repeat what I actually said, rather than what she asserts I said. It is this Government’s ambition to make the United Kingdom the best place in the world to work.
I find it extraordinary that the hon. Lady thinks that the only valid protector of UK workers’ rights can be the European Union. Why on earth does she think that her party, my party, the other Opposition parties and our strong trade union tradition in the UK are utterly incapable of building on the superb tradition we already have in the UK of exceeding workers’ rights in the EU in so many areas? Once we have left the European Union, the United Kingdom will not be represented in EU institutions and nor will we have any direct influence on future EU legislation on workers’ rights. Why then should the Government and this Parliament seek to engineer circumstances where we are required to implement legislation over which we have had no say?
As we leave the European Union, we have a unique opportunity to enhance protections for the workforce and tailor them to best support UK workers. It will be for the United Kingdom to create and enhance UK employment rights and to take advantage of the superb opportunities for new UK-wide skills, jobs and prosperity that await us after we have left the European Union.
Several hon. Members rose—
Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)
May I say to my right hon. Friend that the question from the hon. Member for North West Durham (Laura Pidcock) is completely at odds with reality? If Labour Members look very carefully at wanting to remain in the EU, it is the judgments of the European Court of Justice that Professor Mary Davis of Royal Holloway, University of London—a Labour historian—has said will be a thunderclap to the left, because, with imported workers, they put business rights over workers’ rights. So, if this case is exactly what they say it is, they should be wanting to accelerate our departure from the EU to get back full control of workers’ rights to the UK.
Andrea Leadsom
My right hon. Friend is absolutely right. He has done so much to promote social justice in the United Kingdom and he deserves respect from right across this place. What I would say to my right hon. Friend is that one of the EU’s own agencies, Eurofound—Opposition Members obviously do not want to hear this, because they are all chatting—ranks the United Kingdom as the second-best country in the EU for workplace wellbeing, second only to Sweden, and the best for work- place performance. That is something to be proud of.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
Despite the Secretary of State’s energetic assertions, make no mistake: the Prime Minister’s deal is disastrous for workers’ rights. Scottish workers and industry now face the spectre of Tory trade deals to lower environmental and other vital standards. The Tories can never be trusted with workers’ rights; their record speaks for itself, and anyone who believes otherwise is sorely deluded. The Prime Minister bought off Labour votes for his awful deal by pledging “the highest possible standards”. Days later, that promise, like so many others, lay in tatters.
EU law and courts provide their own backstop against UK workers’ rights being weakened. We know that this Government are planning to diverge on the key regulations post Brexit. Is not it the case that the only way to guarantee workers’ rights and avoid them being watered down is to stay in the EU? As the Scottish Council for Voluntary Organisations has pointed out:
“Loss of oversight from, and recourse to, the European Court of Justice will remove…protection from UK citizens”.
As a minimum, will the Secretary of State agree to undertake an equality impact assessment of the UK Government’s plans for workers’ rights post Brexit? If not, why not?
Andrea Leadsom
The hon. Gentleman describes my defence of our ambitions on workers’ rights as energetic. It also happens to be true, which is extremely helpful to workers in the United Kingdom. Let us look at the facts. He asserts that somehow the EU is the only thing that lies between us and the poor house, but in reality there is no minimum wage in the EU, whereas this Government are raising the national minimum wage to £10.50 an hour. UK annual holiday entitlement is 28 days, including our public holidays; in the EU it is 20 days. Our maternity entitlements are nearly three times greater than those in the EU. We have given fathers and partners statutory rights to leave and pay. We have given adoption leave. We have given employees the right to request flexible working. In every single area, the UK far exceeds the European Union. It is absolute and total rubbish to say that the EU is the only protector of UK workers’ rights.
Simon Hoare (North Dorset) (Con)
Could we turn to practical matters for a moment? Most of our constituents are in work, have worked or are related to people in work. It would be a pretty eccentric and perverse prospectus to say to our voters, “Please vote for us. We are going to make your working life worse, your standards lower and your environment less safe.” Given the practical, non-ideological politics of Government Members, does my right hon. Friend agree that that would be a very strange political message indeed?
Andrea Leadsom
My hon. Friend is absolutely right. To give some further cheery news, 80% of jobs created since 2010 are full-time jobs. The introduction of the national living wage delivered the fastest pay rise in at least 20 years for the lowest earners. [Interruption.] The hon. Member for Sheffield, Brightside and Hillsborough (Gill Furniss) might like to look at the facts rather than listen to the rhetoric coming from Opposition Members. If people want good work, good workers’ rights and decent wages, they should stick with the Conservatives.
Ms Angela Eagle (Wallasey) (Lab)
Asking people to trust the Conservative party is a bit like asking them to trust Dracula with the blood bank. We know what its record is.
Will the right hon. Lady talk about enforcement? We can have all the rights we like on paper, but this Government and their predecessors have slashed enforcement to the bone, which has meant that an awful lot of the so-called rights that people have at work are theoretical and do not exist in practice.
Andrea Leadsom
The hon. Lady knows that that is simply not the case. Since 2015 the Government have doubled the budget for enforcement on compliance with the minimum wage. The enforcement activity of Her Majesty’s Revenue and Customs has meant that 200,000 workers could access nearly £25 million in national minimum wage arrears in 2018-19. The employment agency standards inspectorate has received a 50% increase in frontline inspectors. We are investing more than £1 billion in reforming the Courts and Tribunals Service. The hon. Lady is asserting non-facts; I am giving her the facts and she should listen to them.
Margot James (Stourbridge) (Ind)
I welcome my right hon. Friend’s commitment to the UK becoming the best place in the world in which to work and grow a business. Does she agree that we need to consider the way in which employment protection and the tribunals system impact on those in low paid and insecure employment in particular?
Andrea Leadsom
Yes. My hon. Friend is absolutely right. We have consulted on proposals for a single enforcement body for employment rights. That consultation closed on 6 October and the Government will respond to it. She will know very well that this Government are committed to extending, improving and enforcing some of the best workers’ rights in the world.
Several hon. Members rose—
Alison McGovern (Wirral South) (Lab)
I am not sure how much of a favour you have done me there, Mr Speaker. The truth is that the reality of our labour market is that lived by my constituents, not the picture being painted from the Dispatch Box. But never mind that: this is about Brexit and what it could do to our economy. The Secretary of State claims the mantle of the person who will defend family rights at work and people’s ability to defend themselves against poor bosses. Will she therefore clarify whether the TUC has recommended that we accept the Government’s deal—yes or no?
Andrea Leadsom
The hon. Lady will know better than I the TUC’s view of the Government’s deal. She says that the reality is not the same as what I am saying from the Dispatch Box, but she should recognise that almost 32.7 million people are in work, including a further 280,000 over the past year; that 80% of jobs created since 2010 are full-time jobs; and that we have experienced the fastest growth in real earnings since 2015. The hon. Lady should listen to the facts and not try to scaremonger. This Government are improving and protecting workers’ rights and enhancing enforcement of them.
Michael Fabricant (Lichfield) (Con)
Anyone who has travelled in the European Union will know that conditions of employment in the UK are higher, particularly on contracts of employment, as well as the other points made by my right hon. Friend. Does she therefore share my suspicion that this UQ is motivated not by care for people’s employment rights, but more by the fact that we face, possibly, a general election?
Andrea Leadsom
I have to say that I completely agree with my hon. Friend, because what I am hearing from Opposition Members does not resemble any of the facts. It is this Conservative Government who are protecting and enhancing the rights of the workforce and ensuring a benign economic situation, which means that more people than ever before are in work, more women are in work, fewer young people are out of work, and wages are rising. We are also ensuring that employment is safe and more secure and that health and safety rules are strong. It is the Opposition who seem to be positioning themselves for a general election.
Chris Williamson (Derby North) (Ind)
If the Secretary of State is serious about making Britain the best place in the world to work, will she commit to scrapping the anti-trade union legislation? The undermining of trade unions over the past 10 years or so has led to an explosion of precarious low-paid employment, which is now endemic throughout the land.
Andrea Leadsom
The hon. Gentleman will be aware that, in leaving the European Union with the withdrawal agreement negotiated by the Prime Minister, if the European Union makes any changes to workers’ rights and employment legislation, the Government will have the facility to consult businesses and trade unions, and this House will be able to express its view on whether any changes could or should be considered for implementation in the UK. It is really important that it is this House and the United Kingdom’s courts that should judge and measure whether this or any future Government stick to their commitment to maintain the highest standards of workers’ rights.
Mr Edward Vaizey (Wantage) (Ind)
One way in which the Government could show that they are not only committed to workers’ rights but innovative in the field of workers’ rights is to look carefully at what rights we might extend to workers in the so-called gig economy, which has emerged from the success of tech in the UK. Will the Secretary of State update the House on the progress in looking at the Taylor report and on her thoughts on this important area of the economy?
Andrea Leadsom
My right hon. Friend raises a really important point. In terms of zero-hours contracts and the gig economy, the number of people on zero-hours contracts is falling, and less than 3% of the people in work are employed on them. He mentions the Taylor report. Matthew Taylor said that banning zero-hours contracts would be like using
“a sledgehammer to crack a nut”.
However, it is important that we do everything we can to ensure that workers have the flexibility they need, so we have consulted on one-sided flexibility. That consultation closed on 11 October and we will bring forward our response soon.
Ann Clwyd (Cynon Valley) (Lab)
There is no guarantee from this Government that UK employment rights will keep track with EU employment protections. For example, the gig economy was just mentioned, and the European Commission recently launched proposals to introduce transparent and predictable working conditions for gig economy workers, such as those on zero-hours contracts or in domestic employment. It is also planning other additional protections, so will the Secretary of State promise that that will happen here and that we will keep in track with EU developments?
Andrea Leadsom
I am grateful to the right hon. Lady for raising that very important point. She is right that the EU has discussed the gig economy and enhancing the rights of working parents. It is true that the EU has introduced proposals in the transparent and predictable working conditions directive, but it is not true that those proposals go further than the good work plan. For example, we brought forward a statutory instrument in March this year under which the right to a written statement on day one for every worker will come into force in April 2020, whereas under the EU’s proposals, if it does introduce that directive, it will not take effect until the summer of 2022, so the UK is bringing forward workers’ rights further and faster than the European Union.
Kevin Hollinrake (Thirsk and Malton) (Con)
The Prime Minister championed the London living wage and a much higher national living wage. Does that not demonstrate his commitment to increased workers’ rights?
Andrea Leadsom
My hon. Friend is absolutely right. This Prime Minister has been extremely keen to ensure that all workers get a fair deal. He has presided over the intention to bring the national minimum wage to £10.50 at a greater speed than was previously envisaged. We will bring forward measures to ensure that that can be put into force as soon as we can.
Stephen Timms (East Ham) (Lab)
The level playing field clause would not constrain any improvement in workers’ rights, but it would limit and stop the reduction of workers’ rights, so why did the Prime Minister want that clause to be removed from the legally binding withdrawal agreement?
Andrea Leadsom
The right hon. Gentleman is absolutely right: the EU sets minimum workers’ rights that all EU members abide by, and the UK then, like many other member states, improves on that—in the UK’s case, very significantly. Under our withdrawal agreement Bill and in a no-deal situation, all existing workers’ rights will be protected, but the UK does not intend necessarily to dynamically align with all future EU legislation. When I say that, I mean that this House will have the opportunity to look at all measures that come forward, but in many areas the UK will want to do things better than the EU. Dynamic alignment means copy and paste, and we do not want to have to do that. I just gave an example to the right hon. Member for Cynon Valley (Ann Clwyd) of an area in which the UK is introducing the right to a day one statement much faster than the EU. That is an example of our wanting to go further and faster in improving workers’ rights.
Mr William Wragg (Hazel Grove) (Con)
The purpose of leaving the European Union is not to have a bonfire of workers’ rights, but to make decisions in this House. Does my right hon. Friend agree that outside the EU, this House of Commons can pass such legislation to improve workers’ rights? We should have the confidence to do so and not leave it to others.
Andrea Leadsom
My hon. Friend is exactly right. It is for this House, the UK’s trade unions and the UK’s parliamentarians of all parties to preserve and enhance workforce rights in the UK for everybody within it in a way that is tailored to the extraordinary opportunities that await us as we leave the EU.
Melanie Onn (Great Grimsby) (Lab)
Yesterday, I and a number of my colleagues signed early-day motion 57, in the name of my right hon. Friend the Member for Birkenhead (Frank Field), as a public indication of support for the withdrawal agreement Bill through which we would have been able to secure some amendments that would give peace of mind, hopefully to Labour colleagues, that workers’ rights would not be undermined after we leave the EU. Does the Business Secretary share my disappointment that rather than bringing the Bill through this House, enabling us all to talk about these things and trying to get the strongest amendments possible, the Prime Minister has instead chosen to pull his Bill?
Andrea Leadsom
I have the greatest respect and regard for the hon. Lady, and I am sorry to say that on this I disagree with her. If Parliament really did intend to provide the opportunity for the withdrawal agreement Bill to have its Third Reading and Royal Assent, this House would also have supported the timetable to do that. Unfortunately, the fact that so few colleagues, on both sides of the House, decided to support the programme motion means that it undermined its own credibility and willingness to bring that Bill to its conclusion.
Rehman Chishti (Gillingham and Rainham) (Con)
The Secretary of State will have seen the EU report that says that 90% of economic growth in the next 15 years will be outside the EU. The United Kingdom therefore has to make decisions in line with its national interest that lead to more jobs, opportunities, prosperity and security. That is what we have been seeing for the last nine years that this Conservative Government have been in place.
Andrea Leadsom
My hon. Friend is exactly right: a very bright future awaits us as we leave the European Union in all circumstances. From the amazing innovations in areas such as healthier, longer living through our life sciences agenda, to areas such as clean growth through our commitment to net zero, there are massive opportunities for new skills, new jobs and new prosperity across the United Kingdom. This Conservative Government will maintain and enhance workers’ rights for all.
Stephanie Peacock (Barnsley East) (Lab)
As one of the Labour MPs who have worked in good faith to find common ground—a compromise, even—over Brexit, I was disappointed to read the leaked documents. Further to the answers that the Minister has given to a number of hon. Members, will she tell us exactly what workplace rights and protections would be introduced to prevent the Government from backtracking on the commitments that they have made?
Andrea Leadsom
Again, I have a great deal of respect for the hon. Lady’s position. I absolutely assure her that it is the Government’s intention to maintain all the workers’ rights regulations as we leave the EU and to ensure that Parliament has the opportunity, in every piece of primary legislation that comes forward in future, to understand—with a statement by the Government—how that might impact on workers’ rights, so that it can express its view. At the same time, the Government of the day will consult trade unions and businesses on whether the impact is positive or negative. There will be the opportunity either to align with those changes in legislation and improve on them, as the United Kingdom so often does, or not to implement them if they are not appropriate for the UK, but it should be for this place to make that decision.
Bim Afolami (Hitchin and Harpenden) (Con)
Does the Secretary of State agree that if the Prime Minister’s deal, negotiated with the European Union, is ratified by this House, on leaving the EU the UK will have better and stronger workers’ rights than the bare bones provided by the EU?
Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)
The Tory party talks about protecting workers. Thomas Cook: no say and no pay. Asda: sign or resign. Royal Mail: agreements made but not honoured. Where is the intervention from the Tory Government? They will further weaken workers’ rights after Brexit, including on health and safety. Why is there no legal protection for existing workers’ rights in the withdrawal agreement?
Andrea Leadsom
The hon. Gentleman is not correct. There are protections for workers’ rights in UK legislation. As I have explained to many right hon. and hon. Members, the UK’s protections and rights for workers go far beyond any of the EU’s minimum standards. We are proud of that fact and have every intention of further enhancing those rights.
Andrew Percy (Brigg and Goole) (Con)
As the Secretary of State pointed out, parties on both sides have expanded workers’ rights far beyond the EU minimums, so will she go further and call out this campaign for what it is—a grubby attempt to divide employees from employers and a deliberate politically motivated campaign of misinformation? Moreover, it is deeply insulting to the British electorate to suggest that they are incapable of electing people to this place who share their aims and intentions in wanting to go further in protecting workers’ rights.
Andrea Leadsom
Yes, my hon. Friend is exactly right. It is a great shame when the House has so much to be proud of in our combined record on workers’ rights that Opposition parties are suggesting that the only way to protect workers in the UK is to stay part of the EU. It is blatantly untrue and blatant scaremongering. The Government have a proud record of enhancing workers’ rights and look forward to being able to continue that once we have left the EU.
Lady Hermon (North Down) (Ind)
The right hon. Lady will know that responsibility for workers’ rights is a devolved matter for the Northern Ireland Assembly. She will also know that we have not had a functioning Assembly for almost three years. The Secretary of State for Northern Ireland has been dedicated to the restoration of the Assembly and Executive, but his valiant efforts are now being deliberately and wilfully undermined by the Prime Minister’s stunt of an early general election. How on earth does the Business Secretary reconcile the Secretary of State’s efforts to have the institutions restored in Northern Ireland with the Prime Minister’s stunt of an early general election?
Andrea Leadsom
My right hon. Friend the Secretary of State is in his place and will have heard the hon. Lady’s comments. The parties in Northern Ireland have had ample opportunity to come together, and the Prime Minister, like his predecessor, has sought at every turn to find an accommodation so that all parties in Northern Ireland can restore the Assembly. It is a top priority for this Parliament, but so too is delivering on the will of the people in the 2016 referendum. It is not acceptable that we have yet to deliver on the decision by the United Kingdom to leave the EU. We must do so.
Chris Stephens (Glasgow South West) (SNP)
A speech the Secretary of State gave in 2012 contains this passage about small business:
“I envisage there being absolutely no regulation whatsoever—no minimum wage, no maternity or paternity rights, no unfair dismissal rights, no pension rights”—[Official Report, 10 May 2012; Vol. 545, c. 209.]
It is no wonder we are suspicious on these Benches. If the European Commission provides protections on zero-hours contracts, childcare provision and leave that are stronger than those in the Taylor report, will the UK Government match them or deviate?
Andrea Leadsom
In each of the areas the hon. Gentleman has mentioned, the UK already provides enhanced rights to workers. The Government are proud of their record on improving workers’ rights and will seek to continue that record as we leave the EU.
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
As a Member who voted for Second Reading of the withdrawal Bill, I say to the Secretary of State that it is at best confused and at worst slightly disingenuous to put more weight on the programme motion vote than on the principle of the Bill going forward, which many of us supported, as a reason for not bringing the Bill back.
On workers’ rights, I welcome the Secretary of State’s ambition, but under this Government the qualifying period for entitlement to a tribunal doubled, tribunal fees were introduced and the Trade Union Act 2016 introduced. If the Government were serious about putting these provisions into law, she would strengthen clause 31 of the withdrawal Bill, ensure a clear role for the TUC and not just workers’ representatives, recognise that the comments of my hon. Friends the Members for Barnsley East (Stephanie Peacock) and for Great Grimsby (Melanie Onn) were aimed at improving the Bill and ultimately give the House the chance to vote on it.
Andrea Leadsom
I pay tribute to the hon. Gentleman for his personal efforts to support the resolution of committing to the will of the people in the 2016 referendum. I know it has been difficult for him personally and I sincerely pay tribute to him.
Under the good work plan, the Government are committed to taking forward 51 of Matthew Taylor’s 53 recommendations, including improving the clarity of employment status checks and introducing proposals for a single enforcement body for employment rights and a right to request a more predictable contract. And of course we have introduced a tipping Bill to ensure that employees can keep their hard-earned tips. At every level, the Government show their desire and willingness to enhance workers’ rights. On the hon. Gentleman’s specific point about trade unions, we have given a commitment that when a Bill is introduced that affects employees’ rights, the Government of the day will be required to consult businesses and trade unions, and have to seek Parliament’s view on whether that should be reciprocated in UK law.
Mr Sam Gyimah (East Surrey) (LD)
The Secretary of State’s words ring hollow simply because workers’ rights were in the legally binding withdrawal agreement and have now been moved into the political declaration. But her reassurances ring hollow for another reason: the logic of leaving the EU to look for new trade deals is that whatever we want will come at the price of what the other country wants. The desire for a US trade deal as a political trophy would that mean workers’ rights could be traded away. Can she assure us that that will not happen in our pursuit of a US trade deal, if the Prime Minister’s deal were to pass?
Andrea Leadsom
I find that intervention from the hon. Gentleman, of all people, quite shameful. As an ex-Conservative Minister, he will be aware of the Government’s proud record of, and commitment to, enhancing workers’ rights and protections. It is disingenuous to suggest otherwise.
Justin Madders (Ellesmere Port and Neston) (Lab)
I understand what the Secretary of State says about new legislation introduced by the EU, but of course existing rules from the EU are not static and can be interpreted and changed, for example by European Court of Justice judgments. If the ECJ does interpret an existing employment right in a way that is favourable to the employee, will the Government legislate to enhance that in UK law as well?
Andrea Leadsom
The hon. Gentleman raises an important point. As I have tried to explain to other right hon. and hon. Members, whenever a new piece of EU legislation is brought into force, the Government will provide a report to the House so that the House can express its opinion on whether it enhances, reduces or changes workers’ rights, and when a Bill is introduced in this place that affects employees’ rights, there will be a requirement to consult businesses and trade unions on any impact, for better or worse, on workers’ rights. It will be for this House to decide what gets taken forward.
Ruth Smeeth (Stoke-on-Trent North) (Lab)
The Secretary of State has repeatedly discussed pay inflation in response to questions. The west midlands TUC has today published pay level analysis. My constituents are currently experiencing the worst pay squeeze in 200 years and are still earning less in real terms than in 2008. We cannot trust the Government on pay, so how can we trust them to deliver the workers’ rights that I, along with other hon. Members, have been trying to deliver with them as part of the withdrawal agreement Bill?
Andrea Leadsom
Again, I pay tribute to the hon. Lady for her efforts to get the withdrawal agreement Bill through the House. However, I must disagree with her. It is this Government who are committing to raising the national minimum wage to £10.50. We introduced the national living wage, our changes in the tax free allowance have taken millions of people out of tax altogether, and real wages are rising at their fastest level since 2015. There have been real increases in take-home pay for millions of workers, which is absolutely vital. This Government will always do everything we can to retain and enhance the rights of workers.
Mr Jim Cunningham (Coventry South) (Lab)
Thank you, Mr Speaker. We now have a situation, under this Government, where we actually have the working poor. We all want to know what the Government’s intentions are regarding workers’ rights. All we have to look at is the Trade Union Bill that one of the Leader of the House’s colleagues tried to take through the House last year. What value or credibility can we give to any of the Government’s commitments on workers’ rights?
Andrea Leadsom
The hon. Gentleman talks about the plight of workers. He will know that there are nearly 33 million people in work—an increase of 280,000 since last year—that 80% of jobs created since 2010 are full-time jobs, that real wages are rising, and that the Government are committed to increasing the national living wage to £10.50 an hour. Those are all incredibly important steps to give workers better rights and better conditions.
Jim Shannon
Will the Business Secretary confirm the rights of NHS staff who are skilled but do not meet the “highly skilled” threshold?
Andrea Leadsom
You have just called two of my favourite Jims in the world, Mr Speaker.
It is absolutely the case that the UK will always ensure that the immigration system is fair to the United Kingdom’s needs for a skilled workforce, but also fair to those around the world who would like to come here to contribute to our economy and to our fantastic NHS.
Liz McInnes (Heywood and Middleton) (Lab)
To understand the Government’s real attitude to workers’ rights, we need only look at the treatment of the Interserve workers at the Foreign and Commonwealth Office. Those cooks, cleaners and porters have been engaged in a long-standing dispute over terms and conditions and pay, and over the recognition of their trade union, the Public and Commercial Services Union. The Secretary of State talked about strong trade unions earlier, yet the Foreign and Commonwealth Office will not recognise the PCS. If the Government are really serious about workers’ rights, why have they allowed this dispute to run and run?
Andrea Leadsom
I am sure the hon. Lady will be delighted to know that in my own Department there has been a dispute resolution. It is obviously important for trade unions always to represent the workforce, but it is also important for the discussions that take place to be respectful on all sides, and I know that that is the case across Whitehall.
Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)
We have heard plenty of words from the Dispatch Box today but, when it comes to workers’ rights, is it not the case that the British public do not trust a word that the Tories say? Is it not also the case that the Government wish to use this deal to dispose of all those hard-won workers’ rights on the bonfire of a harsh Tory Brexit?
Andrea Leadsom
I am afraid that the hon. Gentleman is entirely wrong. The UK has gone beyond EU minimum standards in so many instances, including maternity entitlements, leave and pay for the other parent, shared parental leave, minimum holiday rights and the national minimum wage. One of the EU’s own agencies, EuroCloud, ranks the UK as the second best country in the EU for workplace wellbeing, and that is something of which the Government are extremely proud.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
In the United States, employment contracts are at will. There is no right to union representation, there is two- week holiday pay entitlement, there are no maternity rights, and there is no entitlement to sick pay. Think of that. Is it not the case that the purpose of not making alignment with the European Union legally binding is to align more closely with the United States?
Andrea Leadsom
The hon. Lady will know that what she has just said is absolutely not the case. The EU minimum standard is 20 days’ paid holiday; the UK’s is 28. There is no minimum wage in the EU; in the UK, we are moving to £10.50. Moreover, we are introducing a right of transparency from day one for all employees in respect of their employment entitlements. The UK already far exceeds the EU’s minimum standards, and there is no way that, in a free trade deal, the United Kingdom will need to—or agree to—give away anything that we think is in the interests of the UK’s workers. This Government are committed to making the UK the best place in the world in which to work.
Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)
European standards are one thing, but another aspect of European Union law is that, once member states have established enhancements, they cannot row back from those enhancements. Why did the Government seek exemptions from compulsory arbitration if they were not intending to dilute those very enhanced standards to seek a trade deal with the United States?
Andrea Leadsom
I am tempted simply to refer the hon. Gentleman to what I have just said to his hon. Friend the Member for Newcastle upon Tyne Central (Chi Onwurah). The United Kingdom far exceeds EU standards for workers’ rights. We intend to enhance those further, but it is for trade unions in the United Kingdom, for businesses in the United Kingdom and for this Parliament to decide on those enhancements once we have left the European Union.
Capacity Market
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The Secretary of State for Business, Energy and Industrial Strategy (Andrea Leadsom)
I am pleased to announce that today the European Commission has confirmed its original decision in 2014 to grant state aid approval for the capacity market, enabling this vital tool for electricity security of supply to be restored and payments that have been suspended since November 2018 to be made.
The Commission opened an in-depth investigation to gather more information on certain elements of the capacity market after the General Court of the Court of Justice of the European Union annulled the Commission’s earlier state aid approval of the scheme on procedural grounds on 15 November 2018.
The Commission has now satisfactorily concluded its investigation and has concluded that the capacity market as operated since 2014, including during the investigation, complies with state aid rules. Notably, the Commission did not find any evidence that the capacity market puts demand side response or any other capacity providers at a disadvantage with respect to their participation in the scheme.
The Government welcome the Commission’s decision, which enables the capacity market to resume its important work as Great Britain’s principal tool for ensuring electricity security of supply and provides confidence that its design is fit for purpose.
We are awaiting the Commission’s full decision, but expect that its decision means we will be able to:
Restart the mechanism for making payments to capacity providers, including the c.£1 billion of deferred payments that have been suspended because of the standstill period as well as future capacity payments. The vast majority of the back-payments will reach capacity providers in January 2020;
Invoice suppliers for the supplier charge relating to the standstill period which will be used to fund the deferred capacity payments. The Government have been engaging with suppliers during the standstill period to ensure they have been setting aside funding to meet what will be a substantial post-standstill invoice;
Confirm that the conditional capacity agreements awarded in the replacement T-1 auction, held in July 2019, have become full capacity agreements. This will ensure we have in place all the capacity needed to ensure security of supply this winter; and
Confirm the three capacity auctions scheduled for early 2020 will take place. These will secure the majority of our capacity needs out to 2023-24.
The Commission’s decision also notes that the UK has committed to implementing a number of improvements to the capacity market’s design to reflect recent market and regulatory developments, including those identified through our recent five-year review of the effectiveness of the capacity market. These will ensure the continued compatibility of the capacity market with state aid rules in the future and relate to: (i) the lowering of the minimum capacity threshold for participating in the auctions; (ii) the direct participation of foreign capacity; (iii) the participation rules for new types of capacity; (iv) the access to long-term agreements; (v) the volume of capacity to be secured in the year-ahead auction and (vi) compliance with the new electricity regulation.
My Department will shortly consult on arrangements for implementing these commitments.
I will be writing imminently to our delivery partners responsible for delivering the capacity market—the capacity market delivery body (National Grid Electricity System Operator) and the settlement body (Electricity Settlements Company)—to notify them of the Commission’s approval decision and confirm the occurrence of the deferred capacity payment trigger event and T-1 capacity agreement trigger event (the triggers for the resumption of capacity payments). These bodies will subsequently be required to resume making capacity payments, carry out new duties arising from the triggers, and restart any duties that had been suspended during the standstill period. Our delivery partners have worked closely with my Department to ensure that their systems and processes remain fit for purpose; they stand ready to support the restart process immediately.
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Oral Answers to Questions
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Anne Milton (Guildford) (Ind)
The Secretary of State for Business, Energy and Industrial Strategy (Andrea Leadsom)
I strongly believe that apprenticeships are a superb option for people to earn and learn. In my Department, we have 154 apprentices, 149 of whom are levy funded. I have taken on a new school leaver apprentice in my office every year since becoming an MP, which has been an excellent experience for them and for my team. Since the introduction of the apprenticeship levy, we have made changes to ensure that businesses can spend up to 25% of it in their supply chain, and I am delighted that the number of people starting higher-level apprenticeships has increased by over 40% since the 2016-17 academic year.
Sir Desmond Swayne
Is the 80:20 rule an overhead that is unwelcome to employers who have to provide cover for employees who are learning?
Andrea Leadsom
My right hon. Friend makes a really important point, but he will appreciate that off-the-job training is vital for apprentices to develop the knowledge, skills and behaviours they need to succeed at work. The 20% off-the-job training rule is based on standards used by apprenticeship programmes regarded as world class, such as those in Switzerland and Germany, which we have made it our ambition to at least match.
Mr Campbell
Employers complain about the inflexibility of the apprenticeship levy. What steps is the Minister taking to ensure that it becomes more flexible, leading to greater dynamism in our local economy?
Andrea Leadsom
The hon. Gentleman will be aware that the apprenticeship levy is collected from Northern Ireland businesses, with Northern Ireland subsequently receiving a Barnett consequential of spending on apprenticeships in England, which is funded by the levy. Ensuring that apprenticeship policy in Northern Ireland is delivering for Northern Ireland businesses is just one of a number for reasons why it is so essential that devolved government in Northern Ireland is restored.
Anne Milton
In Guildford, 97% of businesses are small businesses. What progress have the Government made on ensuring that they can use the 25% transfer from levy employers to build the skilled workforce that we desperately need in this country?
Andrea Leadsom
I pay tribute to my right hon. Friend for her superb work as Minister of State for Skills over the past few years. Under her watch, the importance of technical education has been raised substantially. She will be aware that sectors in all parts of the economy are now creating apprenticeship programmes, from cyber-security to offshore wind, and more than 61% of starts are now on high-quality industry design standards.
Sir Vince Cable (Twickenham) (LD)
How does the Secretary of State explain the fact that the Government’s own skill index, which measures the value added from apprenticeships and vocational training, is now 25% below 2012 levels?
Andrea Leadsom
The right hon. Gentleman will be aware that in the 2018-19 academic year, despite an overall fall, nearly 60,000 people started higher-level apprenticeships, up nearly 43% on the year before the levy was introduced. It is important that the Government continue to talk to business about how to make use of this, but we are very pleased with progress.
Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)
A recent report by the Centre for Social Justice showed that in the UK, of those who start entry- level work, only 15%—15%—will ever progress beyond it in their whole life. That is an indictment of the UK under different Governments. Beyond apprenticeships, what plans does my right hon. Friend have to find ways to encourage businesses to do on-the-job training, so that those people can move on and increase their salaries?
Andrea Leadsom
My right hon. Friend is right to raise the much bigger challenge of how to get young people not only into an apprenticeship but past it, enabling their skills to develop. We are doing that in a number of different ways. The Government continue to speak with businesses and monitor the impact of the apprenticeship levy on the performance of young people. We are doing a lot to promote start-up businesses for young people through the British Business Bank, but we continue to need to seek ways to ensure that no young person is left behind.
Jim McMahon (Oldham West and Royton) (Lab/Co-op)
People are living longer, which is a good thing, but they need care in old age. In Oldham, health and social care is a growing industry, but at the moment it attracts the lowest band of the apprenticeship levy. I saw this week that the Department of Health and Social Care was advertising jobs at just above the minimum wage. Will the Department for Business, Energy and Industrial Strategy work with the Department of Health and Social Care to raise the value of those jobs?
Andrea Leadsom
The hon. Gentleman raises a really important point. We want to see young people being attracted to apprenticeships right across the range, and he is right to raise the importance of getting good-quality people into the social care system. I would be delighted to speak with him and others who are interested in that area of future employment.
David Hanson (Delyn) (Lab)
Giles Watling (Clacton) (Con)
The Secretary of State for Business, Energy and Industrial Strategy (Andrea Leadsom)
We want to make the UK the best place to work and grow a business. We have set the target of an additional 600,000 female entrepreneurs by 2030, and the British Business Bank has delivered over £198 million to women in start-up loans. With my hon. Friend the Exchequer Secretary to the Treasury, we are implementing the initiatives of Alison Rose’s review, including focusing on female entrepreneurs’ access to finance, better enterprise education and launching the investing in women code.
Giles Watling
I thank my right hon. Friend for her answer. In my Clacton constituency, I am fortunate to have a group of very powerful businesswomen, with whom I had a very pleasant business lunch recently. In 2018, the BBC reported that women were half as likely to set up a business as men. I am pleased that the Government are doing all that my right hon. Friend said, but that must be in part due to a bias in education, so what more can be done to address this great loss of potential?
Andrea Leadsom
My hon. Friend is quite right. We need to go further in addressing education, and that is why one initiative in the Rose review specifically addressed the roll-out of enterprise education in schools and colleges to help in particular with the skills women need for business success at an earlier age. BEIS has also launched the Longitude Explorer prize, which is aimed specifically at 11 to 16-year-olds, to encourage innovative problem solving in our young entrepreneurs.
Ruth George (High Peak) (Lab)
Many of the women in business in my constituency are EU nationals, and they were extremely concerned at yesterday’s tabling of the draft Freedom of Establishment and Free Movement of Services (EU Exit) Regulations 2019, which would allow Ministers to remove their rights to own and manage companies or provide services. While we welcome the fact that the Committee was cancelled yesterday, what are the Government’s plans in this regard, because many EU nationals in business are very concerned?
Andrea Leadsom
I am sorry that the hon. Lady seeks to lean into the scaremongering. The statutory instrument has a very limited direct policy impact and will not impose additional restrictions on EU nationals or EU-based businesses or on the nationals and businesses of countries with associated agreements after we have left the EU. It is very important that we all take great care not to scaremonger and try to make people think that things are the case that are simply not the case.
Mrs Anne Main (St Albans) (Con)
Establishing a business is very difficult, particularly when business rates are so high and online businesses often do not pay their way. Is it not time, particularly for those establishing businesses, that we had a root-and-branch review of the business rates model, which affects so many businesses in St Albans?
Andrea Leadsom
I am very sympathetic to my hon. Friend’s point; I know she is a big champion of businesses in St Albans. In my Department, we are helping the British Business Bank to provide greater support to start-up businesses, providing huge support to the UK’s 1.2 million female-led SMEs, and doing everything we can to ensure that there are more incentives and opportunities for women to start businesses than ever before.
Jim Shannon (Strangford) (DUP)
If we are to encourage more women into business, it is essential that we tackle the gender pay gap at executive level. What has been done to address that issue?
Andrea Leadsom
The hon. Gentleman will know that the gender pay gap is now the smallest it has ever been and that the Government have required reporting of the gender pay gap. Such transparency can partially solve the problem, but we are not resting there: we are doing as much as possible to get more women to become entrepreneurs and to help women to acquire the skills they need to lead some of our fantastic UK businesses.
James Cartlidge (South Suffolk) (Con)
Julian Sturdy (York Outer) (Con)
The Secretary of State for Business, Energy and Industrial Strategy (Andrea Leadsom)
After two years as a sole trader at this Dispatch Box as Leader of the House, it is a huge pleasure to be here today with such a superb ministerial team. In addition to my Department’s vital work to help businesses to prepare for Brexit, we have set out three key priority areas for BEIS. First, we aim to lead the world in tackling climate change. From the Prime Minister chairing a new Cabinet Committee to our hosting of COP26 in Glasgow next year, our pathway to net zero is well under way. Secondly, we will seek to solve the grand challenges facing our society, from new support for our life sciences sector to developing fusion power to setting out how amazing UK innovations can solve the challenges of low productivity. Thirdly, we aim quite simply to make the UK the best place in the world to work and to grow a business.
Julian Sturdy
Will the Secretary of State reassure me that her Department is fully assessing the potential of UK peatlands and peatland restoration in regions such as North Yorkshire, where my constituency lies, in getting us to net zero? Peatlands are a carbon sink that absorb more emissions than the world’s oceans each year.
Andrea Leadsom
My hon. Friend is right that peatlands have a vital role to play in delivering net zero. In addition to £10 million to help to restore more than 6,000 hectares of peatland over a three-year period, we are working with Natural England on a number of pilot projects, including one in North Yorkshire, to test our approach for moving all peatlands in England on to a path of recovery and restoration.
Rebecca Long Bailey (Salford and Eccles) (Lab)
I welcome the Secretary of State to her place for our first BEIS orals together. I know that we will have many a productive exchange.
Nine thousand UK jobs lost and 150,000 holidaymakers repatriated at an estimated cost to the taxpayer £100 million, yet the former chairman of Thomas Cook confirmed that Government financial support would have allowed him to save the company. A report from Unite the Union and Syndex also showed that £188 million in bridging loans would have prevented Thomas Cook’s collapse. With reports that banks and investors were still willing, even on the day of the collapse, to support a deal provided that the Government stepped in, will the Business Secretary explain why she failed to meet with the company in the final days and clarify her rationale for not offering support?
Andrea Leadsom
First, I would like to reciprocate by saying that I am delighted to be working with the hon. Lady. I look forward to many exchanges across the Dispatch Box.
The hon. Lady will appreciate that my Department and I were very closely involved in the run-up to Thomas Cook’s insolvency. It is a Department for Transport lead and, as all hon. Members will appreciate, too many cooks can spoil the broth, so I liaised closely with the Secretary of State for Transport who took the lead on this, but BEIS officials were very closely involved.
At the weekend I wrote to the insolvency practitioner about clawback and malus, to ATOL about looking after the insurance for those who booked holidays, and to the banking associations about ensuring that proper restraint is shown to those who sadly lost their jobs in that run-up.
Why did we not bail out Thomas Cook? Simply because it was clear that the £200 million it was asking for was just a drop in the ocean. There was no way the company could realistically be restored, despite the Government seriously considering the prospects for doing so and for making it an ongoing concern.
Rebecca Long Bailey
It is interesting that the German Government saw fit to intervene. Not only did our Government refuse, they also failed to take the basic action needed to ensure good corporate behaviour. Today, reports demonstrate a clear conflict of interest for auditing firms that, while signing off on Thomas Cook’s finances, separately advised directors on securing bumper bonuses.
BHS, Carillion and the banks all had similar auditing conflicts. Sir John Kingman officially advised the Government nearly a year ago to create a more robust statutory regulator, but to no avail. Will the Secretary of State confirm if and when she will bring forward reforms to the Financial Reporting Council and the wider auditing sector, as proposed by the Kingman review, Professor Prem Sikka and the Competition and Markets Authority?
Andrea Leadsom
First, may I gently say to the hon. Lady that the situation in Germany was extremely different? It was a separate business in Germany. If there had been an opportunity to save Thomas Cook, we would have done so. We looked very carefully at the prospects—[Interruption.] The hon. Lady is just demonstrating a lack of understanding of how UK business works, and I am very sorry to hear that. She really needs to look at the facts here, and not just at trying to make a point. This was a very serious issue, and it was something the Government took very seriously.
We have done everything possible to protect those who sadly lost their jobs. I am delighted, but the hon. Lady did not even mention, that Hays Travel has taken over many Thomas Cook shops, which is fantastic news for many of those employees. She has also not paid any regard to the fact that the Government were able to establish a repatriation on the biggest scale ever in peacetime to bring more than 140,000 people back to the United Kingdom.
Vicky Ford (Chelmsford) (Con)
Greg Clark (Tunbridge Wells) (Ind)
I welcome the Secretary of State to the Dispatch Box and hope that she will have distinguished tenure at this important time. She will know that the recommendations of the independent review of the Financial Reporting Council, conducted by Sir John Kingman, were widely endorsed and are urgently required. I was concerned that the statutory implementation of those recommendations was not included in the Queen’s Speech. Can she assure me that she is not going to miss a golden opportunity to make these reforms and give a big boost to our standing in the world?
Andrea Leadsom
First, let me pay tribute to my right hon. Friend, my predecessor, who did a fantastic job in this Department. I am delighted to stand by the position that he took as Secretary of State: it is the Government’s plan to legislate for a new regulator with stronger powers, replacing the FRC, as soon as parliamentary time allows. We are planning to progress this work in the first quarter of next year, once we have received Sir Donald Brydon’s review of the quality and effectiveness of audit.
Karen Lee (Lincoln) (Lab)
Phil Wilson (Sedgefield) (Lab)
Sedgefield is home to the largest business park in the north-east of England, with 500 companies and 10,000 to 12,000 jobs. More than 50% of the jobs and businesses there rely in some way on trade with the EU. If the Secretary of State has her way and there is no more frictionless trade with the EU, no more customs union and no access to the single market as there is now, does she not have a responsibility to publish an economic assessment on the effects that will have on my constituents’ jobs?
Andrea Leadsom
I am delighted that Hitachi in the hon. Gentleman’s constituency is doing so well and that the high value manufacturing catapult that has an operation in his constituency is also doing well—both supported by the Government. We are seeking to get the withdrawal agreement Bill through this House, so that we can move forward with a good free trade deal that works for the United Kingdom, the EU and the many people in his constituency who are employed in manufacturing, which is something in which the UK excels.
Professional Qualifications and the Common Travel Area
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The Secretary of State for Business, Energy and Industrial Strategy (Andrea Leadsom)
As set out in the memorandum of understanding signed on 8 May 2019, the common travel area between the UK and Ireland means that British citizens in Ireland and Irish citizens in the UK can work in either country, including on a self-employed basis, without any requirement to obtain permission from the authorities.
Her Majesty’s Government remain committed to ensuring the continuation of adequate and appropriate provisions to enable the recognition of Irish professional qualifications in the UK after Brexit.
We seek to build on the highly effective working relationships that currently exist between the UK and Ireland in this area. Many professional bodies and regulators in the UK and Ireland have close and long-standing links, rooted in mutual trust and familiarity. Some operate as a single body across jurisdictions. The Government will support and encourage continued close collaboration and communication between UK and Irish regulators.
My Department, along with colleagues across Whitehall, have been working closely with UK regulators and professional bodies to ensure that, as far as possible, there are appropriate systems and procedures in place for the recognition of Irish professional qualifications, whether through retained EU legislation or alternative profession-specific pathways. Some individuals will continue to benefit from bilateral arrangements already in place between UK and Irish regulators.
We recognise that it is in our mutual interest to ensure that these routes to recognition are in place to allow Irish professionals to continue in their important participation within the UK economy.
Her Majesty’s Government will continue to encourage UK and Irish regulators to work together to strengthen their relationships and minimise the impact on individuals of any necessary changes after EU exit. By building on long-standing relationships and established good practice we seek to ensure minimal disruption for all stakeholders.
Finally, Her Majesty’s Government would like to reassure professionals with Irish qualifications who have already had those qualifications recognised in the UK under the current EU directives, that their recognition decisions will still stand and they will continue to be recognised.
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Committee on Climate Change: Government Responses to Annual Progress Reports
Andrea Leadsom Excerpts(5 years, 1 month ago)
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The Secretary of State for Business, Energy and Industrial Strategy (Andrea Leadsom)
My right hon. Friend the Secretary of State for Environment, Food and Rural Affairs and I wish to inform the House of the laying of the Government responses to the Committee on Climate Change 2019 reports on reducing UK emissions and preparing for climate change.
2019 has been a pivotal year in the fight against climate change. As the scientific evidence of the dangers of global warming continues to mount, and as people of all ages call for urgent action, the message to governments around the world is clear: act, and act now, to protect the future of our planet.
The UK has long been a leader in clean growth, cutting emissions while growing the economy. We were the first to set a long-term emission reduction target in law, under the Climate Change Act (2008), and since 1990 we have reduced emissions by over 40% while growing the economy by more than two thirds. On 27 June, the Government adopted legislation to set a new net zero greenhouse gas emissions target for the UK, to be delivered by 2050. This made the UK the first major economy to set a net zero target in law, ending the UK’s contribution to global warming in three decades.
That target is an immense challenge for the whole of society—but not only is net zero achievable, it can and will be the growth story of the 21st century. We have a thriving low carbon economy, with turnover in the low carbon sector growing more quickly than GDP in 2017, supporting almost 400,000 jobs across the country.
But our success to date is not a reason to delay action, it provides the argument for going further and faster. By taking action to cut emissions we can protect our planet while putting UK businesses at the forefront of the zero carbon revolution, especially as we prepare to embrace the Presidency of COP26 next year.
As well as supporting our emissions reduction efforts, our world-leading Climate Change Act continues to provide a robust framework for strengthening our preparedness to climate change, through our national adaptation programme (NAP).
Today we are also introducing the landmark Environment Bill—the first in over 20 years—which will tackle the twin challenges of climate change and biodiversity loss. The Bill will improve air quality so that our children live longer, restore and recover environmental biodiversity, and move us towards a more circular economy, which will help to ensure Britain can be cleaner and greener for future generations.
Exiting the EU does not change the UK’s commitment to domestic and international efforts to tackle climate change. The new independent office for environmental protection, which this Bill will establish, will work closely with the Committee on Climate Change to ensure climate and environmental legislation is respected once the UK leaves the EU.
In July this year, The Committee on Climate Change (CCC) published their annual Progress Report: “Reducing UK Emissions - 2019 Progress Report to Parliament”; and their biennial “Progress in preparing for climate change”. Today we are publishing Government’s responses to both of these reports, in fulfilment of our requirements under the Climate Change Act.
Government response to “Reducing UK Emissions -2019 Progress Report to Parliament”
The Committee on Climate Change’s (CCC) annual progress report, published in July, recognised the progress that has been made, but also set out some tough messages about the need for further action across the economy. This government have heard that message, from the Committee, from businesses, and from people across the whole country.
The Government response to the CCC’s report sets out the action that is being taken across all sectors of the economy, working through the strong frameworks we have established in the clean growth strategy and the industrial strategy. It also reflects the suite of recent announcements we have made in support of our net zero target. In our response published today, we set out further actions that we will take to deliver net zero, and meet our carbon budgets, including:
Ambitious proposals to improve the energy performance of non-domestic buildings, potentially saving businesses around £1 billion per year in energy costs by 2030;
Development of a new, holistic transport decarbonisation plan to step up the pace of progress towards a cleaner, more sustainable and innovative transport network; and
A proposal to establishing new governance arrangements to drive forward cross-government efforts to deliver the net zero target, potentially including a new cabinet sub-committee on climate change.
This builds on what we have delivered over the last year. Since legislating for net zero emissions in the summer, we have announced around £2 billion to support decarbonisation in a range of sectors, including investment in hydrogen and low carbon technology in industry, electric vehicles and charging infrastructure, and projects to accelerate rollout of carbon capture and storage technology.
We recognise the importance of reducing emissions from industry and we have just set out our detailed proposals for our £315 million industrial energy transformation fund which will support industry to invest in energy efficiency and deep decarbonisation technologies.
The latest contracts for difference auction saw contracts awarded to renewable energy projects that will create enough generating capacity to power around 7 million homes, with the costs of new offshore wind projects falling by a remarkable two thirds between the 2015 and 2019 auctions. This demonstrates the scope for advances in technology to deliver unprecedented cost reduction.
And we will set out further detail on how the UK will make progress towards our net zero target in the national infrastructure strategy this autumn.
In addition to our progress at home, the UK remains at the forefront of international action on climate change. In September, we were formally nominated by our international partners to host the vital COP26 climate negotiations in 2020. We intend to use this role to catalyse ambitious global action to cut emissions further, and harness growing momentum to take us closer to delivering the goals of the Paris Agreement.
At the recent UN climate action summit, the Government announced that the UK will double its international climate finance to £11.6 billion in the period 2021 to 2025. In assisting developing countries, we will draw on the breadth and depth of the UK’s expertise to support the transformational and systemic change needed to deliver a net zero world resilient to the risks from climate change.
Government response to “Progress in preparing for climate change”
In July 2019, the CCC published their third progress report on adaptation, their first on the second national adaptation programme (NAP) detailing action from 2018 to 2023. The progress report contains twelve recommendations for Government spanning four of the key themes of the second NAP, published in 2018; the natural environment; infrastructure; people and the built environment, and business, as well as 33 sectoral progress scores, such as water supply, rail, roads, agricultural productivity, amongst others. The CCC highlights areas of good planning and progress as well as areas where they identify the need for further policy development and evidence to support and monitor the success of adaptation.
The Government response mirrors the CCC’s progress report. The headline message is that we have made progress on adaptation and broadly accept the recommendations made by the CCC. We will build on this progress to ensure the country is well prepared to face the challenges a changing climate brings. The CCC’s recommendations will be addressed in our current and future policies and programmes such as through the 25 year environment plan, the Agriculture Bill and Environment Bill, amongst other policy areas across Departments. In particular the Environment Bill, introduced today, will include ambitious legislative measures to take action to address the biggest environmental priorities of our age, many of which are linked directly to climate change.
At the same time we are demonstrating leadership at a global level on the agenda, driving action as co-lead of the resilience and adaptation theme of this year’s UN climate action summit, where a UK co-led call for action has been endorsed by 112 countries and counting.
We remain grateful to the CCC for their scrutiny, analysis and expert advice, which will be more vital than ever as we set the UK on a firm path to net zero. The challenges of reducing our emissions, and preparing for the changes that climate change will bring, are immense but, the rewards of action will be greater still. This Government have listened to the science and the clear message from across society and we are redoubling our efforts to drive down emissions while seizing the economic opportunities at hand, as we lead the world towards a cleaner, greener, net zero future.
[HCWS3]
Business, Energy and Industrial Strategy
Andrea Leadsom Excerpts(5 years, 1 month ago)
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Sir Edward Davey (Kingston and Surbiton) (LD)
Does the Secretary of State agree that the climate emergency demands that we reform the whole financial system, to decarbonise capitalism and green the City? If so, why are the Government taking three years to implement the mandatory disclosure of climate-related financial risks, when it could be brought in within one year?
Andrea Leadsom
The right hon. Gentleman will be aware that just this weekend the Prime Minister doubled our international climate finance contribution, from £5.8 billion to £11.2 billion, for 2021 to 2025. That demonstrates our commitment to providing support for those in developing countries.
[Official Report, 26 September 2019, Vol. 664, c. 909.]
Letter of correction from the Secretary of State for Business, Energy and Industrial Strategy (Andrea Leadsom).
An error has been identified in my response to a question on my statement on International Climate Action.
The correct response should have been:
Andrea Leadsom
The right hon. Gentleman will be aware that just this weekend the Prime Minister doubled our international climate finance contribution, from £5.8 billion to £11.6 billion, for 2021 to 2025. That demonstrates our commitment to providing support for those in developing countries.
International Climate Action
Andrea Leadsom Excerpts(5 years, 1 month ago)
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The Secretary of State for Business, Energy and Industrial Strategy (Andrea Leadsom)
I am delighted that my first statement as the Business and Energy Secretary is on a subject that matters so much to every Member of this House and also to every person on the planet. As we heard from a 16-year-old girl, Greta Thunberg, it is vitally important to act now so that our children and grandchildren have a bright future ahead of them. We only have this planet, and we all have a duty to do everything we can, cross-party, cross-country and cross-world, to leave it a better place than we found it. So today, with permission, I would like to make a statement on the UN climate action summit in New York that took place on Monday this week.
The Prime Minister and the Secretary of State for International Development joined the UN Secretary General, world leaders and key figures from business, industry and civil society at the UN climate action summit on Monday. The science is clear about the speed, scale and cost to lives and livelihoods of the climate crisis that is facing us. Costs show that the total global damage from climate-related events was more than $300 billion in 2017 alone. We know that, globally, emissions are continuing to rise year on year with tragic impact. We also know that the world’s most vulnerable are being hit hardest by the impacts of climate change. Natural disasters are already pushing 26 million people a year into poverty, with hundreds of millions of people potentially facing major food shortages in the coming decade.
The Prime Minister and other world leaders met because they are determined to take decisive collective action to cut emissions and to improve the resilience of countries and communities, and the Prime Minister showed very clearly what decisive climate action looks like at home and abroad. In the UK, we have cut emissions by 42% since 1990, while growing the economy by 72%. We have cut our use of coal in our electricity system from almost 40% to only 5% in just six years, and we are leading the world in the deployment of clean technologies such as offshore wind. In just that one renewable sector, the UK is home to almost half the world’s offshore wind power. We became the first country in the G20 to legislate for net zero greenhouse gas emissions by 2050.
We are already seeing thousands of jobs being created as part of this transition. Almost 400,000 people are employed in the low-carbon sector and its supply chains, a number that we plan to grow to 2 million by 2030. We are also playing a critical part on the world stage. In his closing speech, the Prime Minister set out his determination to work together with others to tackle the climate crisis. He called for all countries to increase their 2030 climate ambition pledges under the Paris agreement and confirmed that the UK will play our part by raising our own nationally determined contribution by February next year.
To help developing countries to go further and faster, we also committed to doubling the UK’s international climate finance from £5.8 billion to £11.6 billion over the period from 2021 to 2025. This funding will support some of the most vulnerable communities in the world to develop low-carbon technologies and to shift from fossil fuels to clean energy by, for example, helping to replace the wood-burning stoves and kerosene lamps used by millions of the world’s poorest families with sustainable and more reliable technologies such as solar power for cooking, heating and lighting.
This new funding will also help our incredible rain forests and mangroves, which act as vital carbon sinks, and help to restore degraded ecosystems such as abandoned land, which were once home to forests, mangroves and other precious habitats. So many of us have been glued to David Attenborough’s incredible series, “The Blue Planet” and “Planet Earth”, which really brought home the scale of destruction and the need for global action. Doubling our international climate finance will help the most vulnerable to deal with the damaging effects of climate change and to become more resilient.
On Monday, as part of the international climate finance commitment, the Government clearly put technology at the heart of our response with the new £1 billion Ayrton fund to drive forward clean energy innovation in developing countries. The fund is named after the British physicist and suffragette Hertha Ayrton, whose work at the beginning of the 20th century inspired the Ayrton anti-gas fans that saved lives during the first world war. This is new funding that leading scientists and innovators from across the UK and the world can access, to save lives in the future as Hertha Ayrton’s work did over a century ago.
Our Prime Minister is not alone in taking action. We led on the summit’s adaptation and resilience theme with Egypt, and delivered a powerful call to action, joined by 112 countries. As part of that, we launched a first of its kind coalition for climate-resilient investment to transform infrastructure investment by integrating climate risks into decision making, ensuring that, for example, when roads and bridges are built, climate risk is taken into account. We also launched a new risk-informed early action partnership, which will help keep 1 billion people safer from disaster by greatly improving early warning systems of dangerous events such as floods and hurricanes, giving people vital extra hours, days and even weeks to prepare for them.
We were delighted that 77 countries, 10 regions and 100 cities committed at the summit to net zero by 2050. The incoming Chilean COP 25 presidency announced a climate ambition alliance of 70 countries, each signalling their intention to submit enhanced climate action plans or nationally determined contributions.
Businesses are taking action, too. More than 50 financial institutions pledged to test all their $2.9 trillion in assets for the risks of climate change. Nine multilateral development banks have committed to supporting global climate action investments by targeting $175 billion in annual financing by 2025.
However, the climate action summit was by no means an end in itself. It was a call for global action, which the UK and many others heeded. We cannot and will not be complacent. Coming out of the summit, the combined commitments of all those countries and all that good will still do not put us on track to meet the temperature goals of the Paris agreement. People across the country and across the world are every day sending a clear message that we must all go further, and as the Secretary-General said, “time is running out”.
Globally, much more is needed. The UK, as an acknowledged world leader in tackling climate change and as the nominated host for COP 26 in 2020, has a unique opportunity to work with countries and business across the world, to build on the foundations laid at this week’s summit, to drive the action agenda forward and to turn the tide of emissions growth. There is no other planet: this is it, and we must look after it.
Several hon. Members rose—
Barry Gardiner (Brent North) (Lab)
I thank the Secretary of State for advance sight of her statement.
The climate emergency is worse than we feared. Yesterday, the Intergovernmental Panel on Climate Change published its special report on oceans and the cryosphere, which set out the danger starkly. Sea levels threaten nearly 1 billion people who live in low-lying coastal regions, and tipping points in the permafrost could release hundreds of billions of tonnes of carbon. The report makes it clear, yet again, that we must do everything to reduce emissions as fast as possible to limit global warming to 1.5°, beyond which climate breakdown will be catastrophic.
The purpose of the UN climate action summit was to spur on greater climate ambition towards that aim, but none of the world’s large polluters met the challenge. China, India and the EU were all unable to announce tougher nationally determined contributions. Brazil and the USA refused even to turn up. Our country must step forward to fill that vacuum of political leadership on the world stage.
The UK’s commitments at the summit need close scrutiny. The new Ayrton fund that the Government have announced allocates £1 billion to help British scientists and innovators create new clean technology. That is great, but the funding has come from the aid budget. We should not siphon off overseas development assistance to spend on UK universities and firms. They should be funded by non-ODA finance, so will the Secretary of State explain why the funding diverts precious resources from mitigation in climate-vulnerable nations? If she claims that the money is classified as aid because it will help export clean technologies to the developing world, perhaps she can today commit to following Labour’s lead and pledge to provide to the citizens of the global south free or cheap access to green technologies that we develop here.
The Government’s pledge to double international climate finance, while welcome, also raises questions. Will the Secretary of State confirm that that money will be disbursed predominantly through grants rather than loans, which unfairly saddle the poorest nations with debt to pay the costs of a problem they did little to cause? Climate change is already wreaking hundreds of billions of dollars worth of damage on those communities. Will she commit to devoting any of the resources to covering loss and damage caused by climate disasters? After all, the Government perpetuate the fossil fuel economy for the poorest nations abroad, completely undermining our international climate finance. From 2013 to 2018, UK Export Finance gave £2.6 billion in export support to the energy sector, of which 96% went to fossil fuel projects, overwhelmingly in low and middle-income countries. Will she therefore commit today to ending taxpayer support for fossil fuels abroad, as so many other countries have done?
What we do abroad matters more than ever. The UK is hosting the UN climate conference, COP 26, in Glasgow next year. It is the most important climate summit since the Paris agreement. The right hon. Member for Devizes (Claire Perry) is president of COP 26, but COP presidents are normally Ministers in their Governments, and she has indicated her intention to stand down at the next general election. I therefore ask the Government what staffing resources the office of the COP president will be provided with; how much funding the Government intend to provide for COP 26 preparations; what regular reports the COP president will be able to give to Cabinet; and what objectives the COP president has been set by the Cabinet.
Those resources must be provided because at COP 26 we will need to use our diplomatic leverage to persuade other nations to bring forward much tougher NDCs. I am deeply concerned that staffing levels are inadequate. In 2009, under the Labour Government, the Foreign Office had an army of climate staff 277-strong. Seven subsequent years of austerity halved that. When the Prime Minister was Foreign Secretary, the number of officials working full-time on climate change fell to 55. Do the Government intend to restore the workforce to levels last seen a decade ago in recognition of the diplomatic resource that is now required to support the agenda of a UK-led COP 26?
The failures of the UN climate action summit raise the stakes of COP 26 so much higher. We cannot afford for the talks, or those at COP 25 in Chile, to stumble. The issue of climate breakdown is far greater than the party-political divides that afflict this Parliament, and I urge all Members to find common ground in the pursuit of a healthy and stable climate. In that spirit, I make an offer to the Secretary of State: I and my colleagues in the Labour party are fully committed to doing everything we can in a cross-party manner to ensure that COP 26 delivers the highest possible ambition.
Andrea Leadsom
I thank the hon. Gentleman. He and I worked together on energy matters some years ago and I welcome his willingness to work cross party on the issue, about which I know he cares a great deal and on which he is extremely knowledgeable. I also pay tribute to the right hon. Member for Doncaster North (Edward Miliband) for his excellent efforts on the Climate Change Act 2008, from which so much of the UK’s ambition in this space derives. I encourage the hon. Member for Brent North (Barry Gardiner) to work cross-party. I will be delighted to meet him and his colleagues to discuss how we can take the matter forward in a shared endeavour to tackle global climate change.
The hon. Gentleman asked some specific questions. I will try to answer them all, but if I cannot or if I miss some, I would be delighted to meet and tackle them further. He is right that the recent IPCC report provides the best available science on the wide range of impacts of climate change on the ocean and the cryosphere, and outlines potential measures for building resilience to those impacts. The Government welcome the report. We are very concerned about the impact of climate change on the oceans. Of course, as island nations, the United Kingdom, its overseas territories, our Commonwealth partners and close friends are especially dependent on a healthy and sustainably managed ocean, so we will be looking carefully at those recommendations.
The hon. Gentleman is right to ask about the tougher NDCs not being met at the climate summit, and he will be aware that those targets are supposed to be raised by February 2020. The UK is committed to doing that and we will, of course, be urging all others to raise their NDCs by next February.
On the Ayrton fund and its use for scientific work, the Government’s recently published green finance strategy committed to aligning all UK overseas development aid with the Paris agreement so that all our development finance is consistent with climate-resilient and low greenhouse gas development pathways. Such aid is, of course, essential because so much of the problem for vulnerable communities overseas is related to climate change, so those things are inextricably linked. Again, I am happy to speak to the hon. Gentleman more about that.
On grants versus loans, they will almost all be grants. Again, we can speak further about that.
On fossil fuel export finance, as the hon. Gentleman will know, the Committee on Climate Change has made it clear that, actually, achieving net zero requires a transition through lower-carbon fossil fuels, and I point again to the fact that, in just the past six years, we have gone from a 40% reliance on coal—the dirtiest fossil fuel—to only a 5% reliance today, which is quite an achievement. There is much more to be done, but we recognise there will be an ongoing need to use fossil fuels during the transition period.
On staffing resources for COP 26, the hon. Gentleman will be aware that the president is a prime ministerial appointment. I will be working closely with my right hon. Friend the Member for Devizes (Claire Perry), the COP president, to make sure that all the parliamentary updates will be made available on time. I will also be working closely cross-party. The UK has a huge ambition to decarbonise and to retain our global leadership in tackling global climate change.
Sarah Newton (Truro and Falmouth) (Con)
I very much welcome the Secretary of State’s determination, because this is the greatest challenge we face as a country. I am sure we can maintain the excellent radical consensus achieved by the right hon. Member for Doncaster North (Edward Miliband) through the Climate Change Act 2008. This remains above party politics, and everyone in the country will expect us to do that.
On the road to COP 26, will the Secretary of State assure me that there will be roadshows and lots of opportunities for businesses and enterprises the length and breadth of the country that are coming up with solutions that will enable not only us here at home but so many developing nations around the world to meet our net zero carbon target?
Andrea Leadsom
My hon. Friend is exactly right. It is important that during 2020 we spend a good amount of time promoting not only the Government’s work but the brilliant ideas of UK scientists and the efforts around the world to try to tackle global climate change.
Andrea Leadsom
I am grateful to the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) for his raft of points, and I will try to tackle them all.
First, I congratulate the Scottish Government on their work in also legislating to achieve net zero by 2045. Of course they, like the UK Government, are following the advice and recommendations of the Committee on Climate Change, and we will need to work together to ensure that we all meet those targets.
The hon. Gentleman asks whether there will be a clear plan and pathway for net zero, and there will be. My Department is working flat out to provide particular pathways for us to consult on.
The Committee on Climate Change is clear that our clean growth and industrial strategies provide the right frameworks for delivering net zero, so we will continue to deliver through those strategies, including, for example, recent record low prices for offshore wind, the new future homes standard, the CCUS action plan, the £400 million investment in charging infrastructure for electric vehicles and the £390 million investment in hydrogen and low-carbon technology to reduce emissions from industry.
Finally, on Hinkley Point C, I am sure the hon. Gentleman will be aware that there is no cost to the taxpayer.
Mr Edward Vaizey (Wantage) (Ind)
I welcome my right hon. Friend to her post and, through her, I thank her excellent officials for their brilliant work in replicating the Euratom treaty provisions and for her Department’s continued support for nuclear fusion, which is such an important industry in my constituency. Can she assure me that, in her no doubt long tenure in her new post, she will continue to support investment and research in nuclear fusion, where Britain helps to lead the world?
Andrea Leadsom
My right hon. Friend raises an important point. I assure him that my Department is looking carefully at many different innovations, including nuclear fusion, which is important to his constituency.
Edward Miliband (Doncaster North) (Lab)
I welcome the Secretary of State to her post. She is deeply committed to this issue, and she certainly has a big task in front of her.
COP 26 is obviously an important moment not just for Britain but for the world. We will be trying to persuade Europe, India, China and others to ramp up their ambition for 2030, because the Intergovernmental Panel on Climate Change has told us that we have 10 years to turn round the path of emissions. Can I therefore suggest to her that, as well as having a net-zero target for 2050, we need to ramp up our ambition for 2030? Will she therefore ask the Committee on Climate Change to look not just at the pathway to 2030 but at what more we can do as a country so that we can persuade others to follow us?
Andrea Leadsom
The right hon. Gentleman raises an important point and, as he will no doubt expect, that is exactly the kind of area we are looking at. There obviously needs to be a pathway, as we cannot suddenly decarbonise in 2049, so we are now looking at the trajectory and at the development of different technologies, at how quickly we can deploy them and at the choices to get the best value for taxpayers’ money, while setting a real example that we can demonstrate for COP 26 next year.
Neil Parish (Tiverton and Honiton) (Con)
Air quality is very much part of climate change, and we must increase our air quality in this country. Having more electric cars and charging them at night would use and store a lot of renewable energy, so there is a great advantage in driving those technologies. We must have better quality in this country.
Andrea Leadsom
Of course air quality is vital, and the move to electric vehicles is important. My hon. Friend will be aware that we have a £400 million investment in charging infrastructure for electric vehicles, but it is also vital that we generate electricity from low-carbon sources to provide electricity for those electric vehicles.
Sir Edward Davey (Kingston and Surbiton) (LD)
Does the Secretary of State agree that the climate emergency demands that we reform the whole financial system, to decarbonise capitalism and green the City? If so, why are the Government taking three years to implement the mandatory disclosure of climate-related financial risks, when it could be brought in within one year?
Andrea Leadsom
The right hon. Gentleman will be aware that just this weekend the Prime Minister doubled our international climate finance contribution, from £5.8 billion to £11.2 billion, for 2021 to 2025. That demonstrates our commitment to providing support for those in developing countries.[Official Report, 30 September 2019, Vol. 664, c. 10MC.]
Anne Marie Morris (Newton Abbot) (Con)
The Secretary of State might be interested to know that, as well as Greta Thunberg, young people in my constituency of Newton Abbot are absolutely determined to have a voice on climate change. They attend Torquay Grammar school and have uploaded to YouTube content that has gone viral, but they want to know how they can get involved. Could the Secretary of State tell my constituents what they need to do to engage with Government and get young people’s voices heard?
Andrea Leadsom
My hon. Friend raises such an important point. So many young people are taking part in demonstrations and want to know what they can do to help. We will hold Green GB Week early in the new year, which will be a great opportunity for schools to get involved and for young people to give their views.
Caroline Lucas (Brighton, Pavilion) (Green)
I welcome the commitment to double the aid spending on international climate finance, but it has to be new money and the Government have to be consistent. It makes no sense to give with one hand but to invest in fossil fuels with the other. My hon. Friend the Member for Brent North (Barry Gardiner) on the Front Bench raised the issue of the 96% of export credit finance going to fossil fuel energy projects. That makes no sense at all. The Secretary of State says that we need a transition, but that locks developing countries into dependence on fossil fuels for decades to come. That is not a transition, so will she look into stopping doing that in the future?
Andrea Leadsom
I think the hon. Lady will be delighted to hear about the Ayrton fund, which provides £1 billion for that transition from fossil fuels—including, as I have said, kerosene lamps, coal-fired stoves and so on—to solar power for cooking, heating and lighting. This is a genuine opportunity for developing economies to transition early.
Alex Chalk (Cheltenham) (Con)
British carbon emissions are down by 42% on 1990 levels, which is a fantastic achievement, but we are responsible for just 1% of global emissions, and emissions overall are rising. What can the international community do to ensure that polluters such as India and China, which are responsible for nearly 30% of global emissions, clean up their act?
Andrea Leadsom
It is absolutely clear that this has to be a global effort. The UK, as my hon. Friend rightly points out, is responsible for a small proportion of global emissions, and those emissions continue to rise. It is incumbent on us all to follow the instruction of the Paris climate change agreements and for the United Kingdom to provide encouragement and do everything we can to lead the way.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
May I urge the Secretary of State, who is a persuasive woman, to persuade every Member of Parliament—Lords and Commons—to read Professor Steve Jones’s compelling new book, “Here Comes the Sun”, which is about the fragility of our planet and what human beings are doing to it? Will she also wake up the Commonwealth Parliamentary Association and the Inter-Parliamentary Union? We as legislators should be persuading our fellow legislators around the world to move on this issue. Let us share technology with them.
Andrea Leadsom
I hope the hon. Gentleman is not the agent for that particular book and taking a commission on every one sold. Obviously, that would be a conflict of interest. Nevertheless, I take his point. We need to be shouting from the rooftops. There are so many brilliant young people out there doing that for us, but he is right: we all need to do all we can to tackle the issue.
Mark Pritchard (The Wrekin) (Con)
May I welcome the Government’s commitment to net zero by 2050 while creating jobs? Given today’s paper, I hope that most of them will be green jobs. What is the Government’s rationale for not agreeing with the Opposition’s target of 2030?
Andrea Leadsom
I regret to say that the 2030 target announced by the Labour party is simply not credible. Paul Johnson of the Institute for Fiscal Studies has said:
“We need zero emissions. Getting there by 2050 is tough and expensive but feasible and consistent with avoiding most damaging climate change. Aiming for zero emissions by 2030 is almost certainly impossible, hugely disruptive and risks undermining consensus.”
I urge Members to work, on a cross-party basis, on zero emissions by 2050.
Ben Lake (Ceredigion) (PC)
The Secretary of State has rightly emphasised the need urgently to decarbonise our economy. Will the Government consider looking again at the contribution that a tidal lagoon project might make to decarbonising our energy supply? Perhaps a regulated asset base model could finance the development.
Andrea Leadsom
The hon. Gentleman may have raised this issue four years ago—we could talk about this for a long time. A lot of consideration has been given to the potential of tidal power. It is incredibly expensive and was ruled out on those grounds. We are looking at a regulated asset base model for the financing of big energy efficient projects. We will continue to keep that under review, but of course it has to offer good value for taxpayers’ money. The path to net zero that we are setting out will enable further opportunities to consider different technologies.
Mary Robinson (Cheadle) (Con)
I welcome the launch of the Ayrton fund and the £1 billion for the creation of new technologies. We also have a proud history of commitment to developing countries through international aid. How will the fund fit into our existing commitments?
Andrea Leadsom
The UK Government have committed to spending 0.7% of our national income on aid. Analysis shows that without urgent action on climate change, development progress is at risk. Tackling climate change and protecting the environment is bound up with development, so it is right that it has to be a priority for UK aid. It is also very important that the OECD criteria for official development assistance include addressing climate change, and that is what we are doing.
Kerry McCarthy (Bristol East) (Lab)
The Secretary of State has mentioned the £140 million package for protecting and restoring forests around the world. That is all well and good but if we are still bound to the trade in beef and livestock feed for the Amazon, we are contributing to the problem. When is she going to say something about that?
Andrea Leadsom
As the hon. Lady will know, that would be a matter for comment by the Secretary of State for the Department for Environment, Food and Rural Affairs. I am sure that the opportunity to raise the issue will come up at DEFRA questions soon.
Richard Graham (Gloucester) (Con)
The decision to hold the UN climate change summit 2020 in Glasgow was a great success for Anglo-Italian diplomacy. It also highlights an advantage for Scotland of being a member of the United Kingdom, with some 30,000 attendees are expected. I do not share the concern of the hon. Member for Brent North (Barry Gardiner) about the £1 billion coming from our international development fund. Will my right hon. Friend confirm that one of the advantages of the money is that it can be used to help to save forests in Indonesia, and does she agree that our climate change unit should continue its good work there?
Andrea Leadsom
My hon. Friend is exactly right. We are all delighted that COP 26 will be held in Glasgow. We shall all be there. It will be a great opportunity to visit Scotland as part of a stronger United Kingdom post Brexit. We all very much look forward to it. My hon. Friend is exactly right to say that the Ayrton fund offers a fantastic opportunity to contribute to low-carbon technologies for use in developing economies.
Anna McMorrin (Cardiff North) (Lab)
May I begin by saying that it is good to see the Secretary of State in her place and to be able to question the Government on climate change, which we did not think we would have the opportunity to do? Data from Antarctica suggests the onset of irreversible ice sheet instability, which would result in sea levels rising by several metres. This was not the future my father envisaged for his children when he spent years working in Antarctica more than 40 years ago, and it is not what I want for my children either. Why are the Government so reluctant to show leadership in setting hard and fast targets, particularly on the tried and tested technologies of onshore wind and solar?
Andrea Leadsom
I thank the hon. Lady for her collegiate approach; I think we should attempt to continue in that vein. She will know that we have more than 10 GW of onshore wind capacity in the UK. No doubt she knows also that just a couple of weeks ago we had a successful round of contracts for difference for offshore wind, showing costs of sub-£40 per MWh, which is extraordinary; when I was an Energy Minister only a few years ago, the cost of CfDs then was about £150 per MWh. The UK is leading the world. We should be proud of that. Of course, we will continue to look at all renewable technologies.
Sir Oliver Heald (North East Hertfordshire) (Con)
The Conservative Environment Network recently produced its manifesto. One of the proposals for a quick win on emissions is to increase the amount of ethanol in petrol to 10%, which would also help the British bioethanol industry, farmers and us all. Has my right hon. Friend considered that? Will she encourage the Transport Secretary to implement that measure? It would be equivalent to taking 700,000 cars off the road.
Andrea Leadsom
I am aware of the idea my right hon. and learned Friend mentions. I am to meet the Secretary of State for Transport soon to talk about how we can speed up the decarbonisation of the transport system, and I am sure we will discuss it then.
Steve McCabe (Birmingham, Selly Oak) (Lab)
We have mentioned the involvement of young people. One of the demands of the Student Climate Network is to reform the curriculum to reflect the ecological crisis as an educational priority. Has she discussed, or will she discuss, the matter with the Secretary of State for Education?
Andrea Leadsom
The hon. Gentleman makes a good point. I have not yet discussed that with the Secretary of State for Education, but I certainly will make a point of doing so.
James Gray
Yes, but I was brought up in Ochil and South Perthshire, so we have a great deal in common, although there is a slight age difference.
One way in which the UK can truly lead the world in this generational battle against climate change is through climate science, in particular polar science. In that respect, I pay tribute to the father of the hon. Member for Cardiff North (Anna McMorrin), after whom the McMorrin glacier in Antarctica is named. Will my right hon. Friend the Secretary of State join me in congratulating British scientists in universities and institutions throughout Britain, who make a vast contribution to polar and climate science, and will she, today of all days, pay tribute to the launch of SS David Attenborough from Birkenhead and perhaps make passing tribute to the great man himself?
Andrea Leadsom
Yes, the RSS David Attenborough—“Boaty McBoatface”—is launching today. I am always delighted to pay tribute to David Attenborough, whose series on Earth and our oceans have brought home to so many people the urgent need for action. I also pay tribute to my hon. Friend the Member for North Wiltshire (James Gray), himself a bit of an Arctic explorer who has done a great deal to highlight climate change, and we should be grateful to him for that.
Tim Farron (Westmorland and Lonsdale) (LD)
If we are serious about tackling climate change, we need to keep fossil fuels in the ground. To that end, does the right hon. Lady agree that the proposals for the west Cumbria coal mine should be cancelled, and will she speak to her right hon. Friend the Secretary of State for Housing, Communities and Local Government, to whom I have written? Will she instead commit Government money through the northern powerhouse to create renewable industry and energy jobs in west Cumbria instead?
Andrea Leadsom
I am sure the hon. Gentleman is as delighted as I am that we have shifted from 40% reliance on coal to only 5% today. That is quite an achievement. He makes an important point about fossil fuels. He will be aware that we are looking at carbon capture, usage and storage, and an action plan with projects to improve our use of fossil fuels and to make them lower carbon. There is a lot to be done in this area, and we will continue to look at how we can make that work.
Luke Graham
Thank you very much, Mr Speaker. As part of the Cabinet Office team that pushed for Glasgow to host COP 26, I thank my right hon. Friend for coming through and ensuring that one of the greatest cities in our United Kingdom can showcase the fantastic commitments we are making and how we are developing world-leading technologies. We are making our name known internationally and locally, with UK Government investment in the international environment centre in Alloa and the world-leading recycling facility being built in South Perthshire. Great progress has been made in the past two years, but will my right hon. Friend meet me to discuss taking the next step to bring geothermal energy and smart grids to Clackmannanshire?
Andrea Leadsom
My hon. Friend tempts me to make some budgetary commitments, which I cannot do right now, but I am always delighted to talk to him about his brilliant ideas for his constituency and the surrounding area.
Deidre Brock (Edinburgh North and Leith) (SNP)
Our Government in Scotland are consulting on public sector climate change responsibilities and reporting duties. What work will the Department for Business, Energy and Industrial Strategy be doing with UK public bodies based in Scotland, whose emissions will count against our world-leading targets?
Andrea Leadsom
The hon. Lady will know that there are regular and frequent discussions between officials at all levels on how to meet our carbon commitments. Those will continue and will, I dare say, be increased in the run-up to COP 26 next year, so there will be plenty of opportunities for collaboration between nations.
Dr Matthew Offord (Hendon) (Con)
It has been reported that 38% of Americans believe that we face a climate crisis—slightly fewer than Americans who believe that aliens walk among us. What is the Secretary of State doing to encourage all countries to treat climate change as a priority?
Andrea Leadsom
As others have done, my hon. Friend makes the important point on the need for global action. In seeking to host COP 26 in Glasgow, we demonstrate our determination to be part of the solution and to lead other nations into showing the same level of commitment.
Thangam Debbonaire (Bristol West) (Lab)
The Secretary of State told my hon. Friend the Member for Bristol East (Kerry McCarthy) that she could not answer her question because it was a matter for DEFRA, which I understand. Will she join the call from the schools and schoolchildren of Bristol to ask the Prime Minister to bring back the Department of Climate Change?
Andrea Leadsom
Obviously, I am delighted to be fulfilling the role of Secretary of State for energy as well as for business. I see the clear link between the amazing UK-led science and innovation and the need for commercialisation of many of the solutions that tackle climate change, so I feel comfortable with the way the Department is now managed. The hon. Lady makes an important point about the specifics of the DEFRA portfolio, but there will be an opportunity to put oral questions to that Department.
Dr Julian Lewis (New Forest East) (Con)
Do we have a policy of using our large international aid budget as a means of incentivising other countries to improve their climate change policies?
Andrea Leadsom
My right hon. Friend will be aware that in our recently published green finance strategy, we committed to aligning all UK overseas development aid with the Paris agreement, so that our development finance is consistent with climate-resilient and low greenhouse gas development pathways. We urge all nations to do likewise.
Liam Byrne (Birmingham, Hodge Hill) (Lab)
I want to follow the point made by my right hon. Friend the Member for Doncaster North (Edward Miliband), who is right to say that we will not be a leader abroad unless we are a leader at home. We in the west midlands have been the leader of industrial revolutions for three centuries, but we need a green development corporation to build homes, we need municipal energy companies to roll out solar, and we need a regional investment bank to roll out climate finance here at home. Give us the tools and we will show the leadership.
Andrea Leadsom
We have already taken a number of actions on charging infrastructure for electric vehicles, investments in hydrogen and low-carbon technology to reduce emissions from industry. We will be doing a lot more, and we will set out our plans in the next few weeks.
Maria Caulfield (Lewes) (Con)
HMRC is having to change VAT rates from 5% to 20% for the installation of renewables, such as solar panels, to meet the EU VAT directive. Will the Minister commit to reversing that decision when we leave the EU?
Several hon. Members rose—
British Steel
Andrea Leadsom Excerpts(5 years, 2 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Business, Energy and Industrial Strategy (Andrea Leadsom)
I want to update the House on the latest developments regarding British Steel Limited.
On 22 May British Steel entered insolvency, and control of the company passed to the court appointed official receiver. The Government provided an indemnity to the official receiver which enabled British Steel to continue to trade, customers to receive orders, key suppliers to maintain their services, and staff to continue to be employed.
Since then, the official receiver has been running an independent sales process with a view to finding a secure future for British Steel. The Government have worked tirelessly with the official receiver and all interested parties to leave no stone unturned to find a suitable buyer for the company and to keep steel coming off the production line.
Following several weeks of discussions with a number of interested parties, on the 16 August the official receiver confirmed it had accepted a bid from Ataer Holding AS for the whole business. This is an important and positive step towards protecting thousands of direct jobs and many more in the supply chain, and to securing steelmaking operations at British Steel’s sites in Scunthorpe, Skinningrove and on Teesside.
Work is now continuing to seek to finalise the details of a sale and the Government will continue to work closely with the official receiver and the preferred bidder during this process.
This has been a worrying time for British Steel’s dedicated workers, their families, those in the supply chain and their wider communities. Throughout this process their welfare has been paramount. This positive step, and the ability to secure a new owner, is due in large part to their commitment to securing the future of the company. This commitment and drive was abundantly clear in my visit to the site in Scunthorpe with the Industry Minister, during my first week as Business Secretary.
The Government’s determination, coupled with the support of Members from across the House of Commons, ensured every possible step was taken to secure a buyer and throughout the process our focus remained firmly on securing a buyer who could take the whole business forward.
While much remains to be achieved, Ataer has a long-term, strategic vision for growing British Steel with their parent company OYAK publicly stating that if this sale goes through their priority will be to increase production capacity and investment. Ataer is already in the steel industry, as the largest shareholder in Erdermir, Turkey’s largest flat steel producer. ln the first three months of this year alone, Erdermir posted profits of $186 million and 2.4 million tonnes of liquid steel production.
While the completion of the sale is by no means certain, the Government will continue to fully engage with all relevant parties as the sales process continues.
I would like to pay special tribute to the excellent work and dedication of the British Steel Support Group as well as that of my predecessor, the right hon. Member for Tunbridge Wells (Greg Clark). The support group includes Members from across the House of Commons, local political leaders, local enterprise partnerships, trade union representatives, British Steel management, in addition to Make UK and the FSB. Working constructively with the Government, this body has been instrumental in helping to move to the next stage of this process.
While there are challenges in the global steel market, the opportunities for growth are substantial—including an additional £3.8 billion per year of potential domestic sales for UK steel producers from 2030. Britain and the rest of the world will continue to need high-quality steel, and British steel is among the best in the world. The Government have already taken wide-ranging action to support the industry, including compensation for energy costs and introducing specific public procurement guidelines for steel.
Each one of British Steel’s sites has a proud record of steelmaking excellence which we are determined to see continue. I want to reassure colleagues that the Government remain firmly committed to securing a bright future for British Steel. In the days and weeks ahead we will continue to work closely with all parties to leave no stone unturned to finalise the sale and will take every possible step to ensure a long-term future for these valuable operations.
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