Future of Postal Services

Andy Carter Excerpts

Tuesday 10th January 2023 Westminster Hall

[Andy Carter (Warrington South) (Con)]

Thank you, Sir Gary. Occasionally, sitting on the Government Benches, I wonder whether I am going to get in on a debate, but today I have. I thank the hon. Member for Birmingham, Hall Green (Tahir Ali) for bringing forward the debate. I am conscious that there is another debate later in the week on a similar topic, so I will confine my observations to two or three areas.

Let me start by saying that I agree with many of the things that the hon. Member raised about the hard-working posties who deliver mail to homes across the UK. They provide an invaluable service. Anyone who recognises the time spent waiting at Christmas for a card or parcel to arrive knows how important that service is. But it is also important to say that when the market changes, companies operating in those sectors have to change. If they do not, they simply will not be around in the future.

I put that point in the context of the number of letters that are sent by individuals in the UK annually. In 2004-05, Royal Mail delivered around 20 billion letters. Last year, that figure had dropped to 8 billion. The change is dramatic, and is not surprising when we consider how we live our lives today. We simply do not send as many things in the post as we once did.

While I absolutely agree that the universal service obligation should be retained, there is a need for Royal Mail to reconsider how it operates, to ensure that everybody continues to get the services. Crucially, it is the parcel market that is important. That is a vital sector for my constituency and I look forward to speaking further on this issue in coming weeks.

[Sir Gary Streeter (in the Chair)]

One and a half minutes flies by. I call Jeremy Corbyn.

[Jeremy Corbyn (Islington North) (Ind)]

I thank the hon. Member for Birmingham, Hall Green (Tahir Ali) for securing the debate. The current dispute of Royal Mail workers with the Royal Mail Group, led by the CWU, is appalling because of the sacrifices that those workers are making. I have stood with them on many picket lines, in my constituency and other places, and talked to them about the way their jobs have changed and the stress that they are under. They are now threatened with job losses through redundancy, a below-inflation pay rise and a speeding up of the way in which their work is done. The situation is appalling.

We need to value our postal workers for being part of our communities and for their dedication. Our service was unfortunately privatised by the coalition Government —thank you, Liberal Democrats, for your contribution to that Government—and separated from the Post Office. That is absolutely the wrong way to do things. We ought to keep the Post Office and Royal Mail as one.

We should absolutely retain the universal service obligation, so that every address in the whole country can get a letter or parcel. The hon. Member for Warrington South (Andy Carter) said that the number of letters has reduced. Yes it has, and the number of parcels has increased. The world has changed, but Royal Mail is there, with the universal service obligation, to meet all those changes in our society. If we take the universal service obligation away, we will be left with a lot of pretty incompetent private sector delivery companies, which simply will not be up to the mark.

[Andy Carter]

rose—

[Jeremy Corbyn]

I am not calling the hon. Member incompetent.

Energy Security

Andy Carter Excerpts

Tuesday 29th November 2022 Commons Chamber

[Grant Shapps]

My hon. Friend is right. We need energy independence, security and sovereignty. That is what we are building in co-operation with our partners, with interconnectors, so that we are never again subject to the whims of a dictator from the east, as has happened this year.

[Andy Carter (Warrington South) (Con)]

I welcome many of my right hon. Friend’s steps to ensure energy security, particularly in the nuclear sector. He talks a great deal about Sizewell C; Warrington is the home of the National Nuclear Laboratory, so the decision will secure many of the 2,500 jobs that nuclear generates in Warrington. The north-west leads the way in carbon capture and storage and hydrogen technology with HyNet, so will he outline how hydrogen can play an important part in large industry energy generation for the future?

[Grant Shapps]

My hon. Friend is right about the role of hydrogen. I know from my time as Secretary of State for Transport how important that will be, particularly for transport in the much larger category of goods vehicles, buses, coaches, marine vessels and aviation. This is not just about the jobs in nuclear, which the Sizewell decision and Great British Nuclear will help, but about the development in hydrogen power. In particular, those hubs with great expertise will be tremendously important, and this Government fully back them.

Employment Relations (Flexible Working) Bill

Andy Carter Excerpts

Friday 28th October 2022 Commons Chamber

[Yasmin Qureshi]

My hon. Friend anticipates something I will touch on in my speech relating to the financial side. In fact, I was just about to come on to the point that flexible working is good not just for employees, but for employers and the wider economy. By removing invisible restrictions, flexible working fosters a more diverse workspace. The evidence shows that that leads to improved financial returns for businesses. McKinsey points out that by fully utilising women in the UK economy, we would be adding £150 billion to our economy by 2030. Therefore, widening flexible working is very important for employers, too. It has also been shown that workers who have more flexibility are more motivated at work and are more likely to stay with a particular employer.

[Andy Carter (Warrington South) (Con)]

The hon. Lady is making a very powerful and good speech, and I am broadly supportive of the measures in her Bill. She talks about the engagement she has undertaken with charities and a number of organisations representing employees. Has she engaged with the Federation of Small Businesses and other employer organisations? I am particularly concerned about the impact the Bill might have on small businesses.

[Yasmin Qureshi]

Yes, and I have discussed the matter with Zurich Insurance Group, which is very keen on flexible working. I think that when I explain the Bill in detail, the hon. Gentleman will find that it will not place any undue financial consequences on small businesses if an employer is not able to offer flexible working. The idea is to think a bit more out of the box and more creatively. I do not think that small businesses are against flexible working either. When I talk about businesses and employers, I am including everybody in that. I am saying that it is a good thing for employers, whether they run a small business or a large business. Recent research from the charity Working Families found that half of all UK parents would leave their current job if they found one with more flexibility, so it would help an employer.

I have personal experience as an employer, and, even before the pandemic, I was a strong advocate for the benefits of flexible working. In my office alone I have accommodated staff with childcare needs, those who wished to study part-time, two employees who were job sharing and an employee who worked compressed hours so that he could fulfil his council duties. I have to say that it worked very well in my office.

Taking a broader perspective, recent figures show that there are almost 9 million economically inactive working-age adults in the UK, with 1.75 million citing caring for family as their reason for not working. Again, that is a huge reservoir of untapped talent and productivity that greater flexible working opportunities could help us tap into.

The Bill will introduce changes to the existing right to request flexible working. For those who are not familiar with the background to the legislation, the right was first introduced in 2003 for employed parents and carers of children under the age of six and disabled children under the age of 18. The legislation has been amended several times, most recently as part of the Children and Families Act 2014. The right currently allows all employees who have 26 weeks of continuous service with their employer to make one statutory application per year to change their working hours, working patterns or work location. When the employee submits such a request, they are asked to explain what effect, if any, the change would have on the employer and how that might be dealt with. Employers have to consider all eligible requests and can refuse them only on one of the eight business grounds set out in the legislation. They have three months in which to respond to the employee’s request.

The Bill, which I hope will pass through Parliament, would, along with the use of secondary legislation, give an employee a right to ask for flexible working hours from day one. An employer could decline that, but they would need a credible business reason to do so. While the day one right is not explicitly stated in the Bill, as I understand it, secondary legislation would be introduced to say that it is a day one right. I hope that the Minister will confirm that in his response.

The Bill is focused on setting the right conditions for employees and employers to have an open-minded conversation about what flexible working arrangements might be possible in any given context. It hopes to simplify and normalise the process of making and responding to flexible working requests, bringing benefits to employees and employers alike.

The Bill has four measures. The first is a duty on the employer to consult the employee before rejecting a flexible working request. I am aware that organisations such as the TUC and Working Families, who continue to lobby for stronger flexible working rights, have been making the case that, at present, it is too easy for an employer to refuse flexible working requests. Hopefully, this measure would prevent employers from just saying no without engaging with the employee as to why. We hope that that will bring on a culture shift. Of course, it requires both sides to discuss the matter properly.

Secondly, under the Bill, the employee could apply for flexible working hours twice in 12 months. That is understandable, because sometimes situations change unexpectedly. An employee could become a carer or diagnosed with a long-term health condition meaning that their work arrangements were no longer sustainable, so being able to request a change twice in a year would assist with that. Of course, in the end, all of these things benefit the employee and the employer, because otherwise good employees may well leave.

Thirdly, under the Bill, instead of a three-month period, the employer would have two months in which to respond. That would encourage responsiveness from the employer and ensure that matters are dealt with as soon as possible. With modern technology and the things that are happening, it is right that the Bill should update the current situation.

One of the final measures in the Bill is to remove the requirement for the employee to explain the effects that the changes they applied for would have on the employer and how they might be dealt with. That is quite hard for some employees. Some people are good at writing an articulate case and making a great submission, but many employees may not necessarily have the linguistic skills to make a beautiful case. New employees in particular may not have the confidence or experience to do so. It would therefore be helpful to remove that burden from the employee.



I hope this Bill will encourage more constructive dialogue about flexible working and will make employer and employee focus on finding ways that are acceptable to both. The Bill does not of course resolve all the issues concerning better flexible working, but it is a step in the right direction.

I thank bodies including Working Families, the TUC, Pregnant Then Screwed, the MS Society and other campaigning organisations, and Zurich Insurance Group, a big insurance company which continues to lead the way on flexible working. I also thank my hon. Friend the Member for Hampstead and Kilburn for her campaign over many years and her intervention. I again thank the Minister the hon. Member for Thirsk and Malton for his support. The Conservative and Labour parties can work together on this and agree that it is good for our nation. I hope all hon. Members in all parts of the House share my desire to ensure that the Bill succeeds; as we know, there are certain fragilities that accompany the private Member’s Bill process and I would like to navigate past them with the support of Members across the House.

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[Chris Clarkson (Heywood and Middleton) (Con)]

I am grateful for the chance to speak on this important Bill. I would like to thank and congratulate the hon. Member for Bolton South East (Yasmin Qureshi). It is always nice to be able to work cross-party with a fellow Greater Manchester MP—although we are both from the bit that calls itself Lancashire, so let’s say Lancashire MPs.

The covid pandemic was an extremely difficult time for this country. However, some of the solutions that were necessary during those difficult times should be looked at as opportunities for the future, and flexible working is a prime example. Many people, especially in constituency, do not work in industries where practices like working from home are possible. We owe a huge debt to those workers in industries, such as food production, manufacturing or logistics who, even at the height of lockdown, continued to go into factories and warehouses to ensure that there was food on supermarket shelves and supply chains were kept running.

None the less, in many more industries than we thought possible, we found out how flexible working could refine our workplaces. Whether that was working from home or working different hours, we saw that work could still be completed to the highest of standards and that targets and key performance indicators could still be met, with many people being able to continue meetings and work in a productive way. It also added the possibility of some jazzy backgrounds and bookshelf competitions on all those many hours of Zoom meetings.

My team were able to continue working straight out of the box. Having just been made an MP, I had to assemble a team, but they could not get into the office, so we all had to talk on Teams or Zoom for hours a day. They managed to plough through thousands of cases and we got to our 5,000th case within the first 18 months. It was an incredibly trying time. If my team had not been able to work their hours around what was going on in their own lives, such as childcare and looking after relatives, it simply would not have been possible. In a real sense, flexible working stopped this country from falling over.

[Andy Carter]

I am struck by the point my hon. Friend is making. As Members of Parliament, we are lucky to be able to use a laptop and work from home, but the vast majority of working people are not using laptops on a day-to-day basis. As my hon. Friend mentioned, they are going into their workplaces to use the equipment there. He is absolutely right that this legislation is not just about working from home; it is about the flexibility to ask for varying times and adjustments. It recognises that employers have certain requirements as well. Does he recognise that employers benefit from having those flexibilities?

[Chris Clarkson]

My hon. Friend is entirely correct; fundamentally, it is about making sure that work is done by the best possible people in the best possible way. The reality is that not everybody lives a nine-to-five lifestyle any more. For example, often now both parents work, and people have childcare commitments or are carers. The option for someone to vary their working practices in a way that allows them still to make a good living and maintain a good home life is incredibly important.

Flexible working can be a lifesaver for parents of young children, single parents, those with disabilities and carers. Parents are now able to pick up their children from school regularly, and that relationship is good for the mental health not just of the parent but of the child. I am of an age such that I remember my mum being at home the entire time and dad going to work, and because of the nature of his work I sometimes would not see him for a very long time. It is really important to have that relationship with both parents.

I have heard about employees nearing the end of their careers but now feeling more able to continue to work because they have the option to work differently. That is really important for small businesses in particular, because there may be a bit of institutional knowledge that cannot be easily replaced, so it is a good thing to give somebody the chance to work differently, train somebody else up, cut back their hours and look forward to their retirement as part of a managed process.

I should also highlight the positive effect of flexible working on shrinking the wage gap. ONS figures for 2022 show that for those under 40 the gender pay gap for full-time workers is just over 3%, but for those aged 40 to 49 and above the pay gap jumps to 10.9%. For those over 40, there is a lower incidence of women being promoted into higher-paid positions and a higher incidence of women moving from full-time to part-time work.

That change from full to part-time work directly corresponds with a very difficult decision that a lot of new parents have to make: whether to return to the office or stay at home to look after the children. For most, the extortionate cost of childcare means there is only one viable option. This results in parents—still mostly mothers—leaving the workforce or taking up part-time roles, thereby stalling their career development and thus increasing the gender pay gap. But we now know that this is not necessary. Parents can, and should, share duties while working from home or by changing their hours, and they should have a right to request such flexibility from their employers. We must make sure that access to such a style of working is available to everyone.

The Bill will benefit not only employees but employers. Businesses and companies thrive when the best people are in the right position and are able to do the job they are trained to do. By tearing down the barriers that prevent parents, the disabled, carers and older people from remaining in the workforce, we will unleash a wave of potential into our economy. This is a win-win piece of legislation, so I again thank the hon. Member for Bolton South East for bringing it forward. I encourage colleagues to support the Bill and look forward to supporting it myself.

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[Andy Carter]

I am grateful to my hon. Friend for allowing time for interventions. He is making an excellent speech, and I agree with many of the points that he has made, which have prompted earlier interventions from me. One of my concerns, having run a small business, is that when teams are together in the office a culture is created, with a transfer of knowledge. If someone is working from home that does not happen, which is why it is incredibly important that businesses think carefully about how they can allow flexible working to take place. It is not one size fits all, and for small businesses with only two or three people, having everyone working from home is not necessarily right. They have to create the workplace culture that is right for them.

[James Daly]

As ever, my hon. Friend is absolutely correct. We have to be mindful of that. Again, the House has to understand the pressures on businesses. This is an extremely difficult time for businesses across the country. The concept of flexible working takes second place to being able to pay wages and bills, and making sure that people are employed.

Future Hydrogen Economy

Andy Carter Excerpts

Tuesday 14th June 2022 Westminster Hall

[Andy Carter (Warrington South) (Con)]

It is a pleasure to take part in this debate. I thank my hon. Friend the Member for Redcar (Jacob Young) for securing it. It is always a pleasure to follow the hon. Member for Strangford (Jim Shannon) and to speak in the same debate as my hon. Friend the Member for City of Chester (Christian Matheson). I always worry when I speak after him that he may well have said everything I want to say. I will talk specifically about HyNet and will expand on some of the points that he has already raised.

HyNet was a momentous moment for the region. Securing track 1 status was a very strong signal for businesses in Warrington and the wider Cheshire/Mersey/Dee network area that we are serious about levelling up, serious about creating and securing well-paid jobs and about making our environment a greener place to live and work. The Minister knows that, because he came to Warrington when we launched the HyNet project and saw the transition work at the UK’s largest can recycling plant at Novelis in Latchford, which is going to transfer over to hydrogen fuel.

For the past two years, I have been pressing his colleagues and the Secretary of State to proceed with the plans so that we can get maximum benefit to the region and the country. HyNet will give a massive boost to the supply chain and will work with younger people and apprentices to upskill and make the energy sector a more attractive industry to work in. In fact, one of my local colleges that I visited yesterday spoke to me about the opportunity to create more T-levels in the green sector. The Department for Business, Energy and Industrial Strategy and the Department for Education should work together on that to join up skills for the future.

As the Minister will know, we are now in phase two of the process, focusing on the individual projects that will realise the ambitions of both the Government and HyNet. In order for the ambitious targets to be met, careful consideration of the correct level of allocations is required.

Our net zero target and the private sector’s environmental commitment have led to significant demand from industry to invest in green transition. That is really good news, but the current caps on the support contracts under the industrial decarbonisation and hydrogen revenue support scheme fall substantially short of the level of demand from industry and below that required to achieve net zero. Without a significant increase in those caps, there is a danger that hydrogen deployment will not deliver the initial scale required to gain the momentum that this fledging sector needs, potentially losing the global lead we have already made in the UK in the hydrogen economy.

The current target of about 6 million tonnes per annum for industrial carbon capture by 2030 is part of the overall target of 20 million to 30 million tonnes per annum. However, it is narrowed down to about 3 million tonnes per annum for the initial allocation under the industrial decarbonisation scheme, and that is an inadequate target to kick-start a new industry. If we split that evenly between HyNet and the East Coast Cluster, it would potentially only allow for one or two of HyNet’s flagship projects to be delivered, resulting in organisations being unable to decarbonise their industrial processes. We need to go bigger.

If the Government are to achieve their stated target, they should be proceeding with about 6 million tonnes per annum in total industrial capture in the first clusters by 2027. That is the lowest cost approach to achieving the 20 million to 30 million tonnes per annum target by 2030. At the same time, the Government should be looking towards a road map for future allocations to give confidence to other projects to proceed into further development.

In addition, to get a functioning hydrogen market, with hydrogen producers connected to hydrogen users, we need business models that are consistent with hydrogen production targets. That means that 2025 will be too late for these business models to be put in place, resulting in the 10 GW target that the hon. Member for City of Chester mentioned being missed.

The message to the Government is really clear: the private sector that is investing in this area wants to proceed and is keen to expand the operation, but it would like Government support to do that. Will the Minister confirm that his Department has done a proper assessment of the impact that the current plans may have on companies reliant on HyNet hydrogen production and infrastructure to decarbonise? Does it leave them facing increased risks and uncertainty from the impact of carbon cost and market share?

I recognise the importance of moving towards decarbonisation and I know that the Government are committed to ensuring that we have the tools in place to achieve net zero by 2050, but it is ambitious projects such as HyNet, bringing together businesses, creating jobs and bringing investment, that pave the way for achieving our target. It is critical that we listen to the needs of those working in the sector to make sure we get this right. I urge the Minister to take heed of the challenges HyNet is currently facing and to seek to resolve them as soon as possible.

[Sir Edward Leigh (in the Chair)]

We have time for five minutes for the SNP spokesman, five minutes for the Opposition spokesman and 10 minutes for the Minister. I call Stephen Flynn.

Copyright (Rights and Remuneration of Musicians, etc.) Bill

Andy Carter Excerpts

Friday 3rd December 2021 Commons Chamber

[Dean Russell]

My hon. Friend makes an incredibly important point. As a fan of Peter Kay, I know he does an incredibly good sketch—I recommend it to anyone who can find it, but especially on his own DVDs—in which he explains quite a good story about getting wrong the lyrics of famous songs. I strongly recommend that my hon. Friend continues to do that, even though what she did back in those days may have been on the border of what we were allowed to do.

I say this because there is an important point here about discovery, such as the discovery of new artists and the discovery of new musicians. One of the challenges I find with the Bill—as I say, I am very supportive of its principles—is that streaming platforms do provide a great opportunity to find new artists. Not all of them do it to make money just off that platform, but also refer people to TikTok or other platforms to explore their other artwork, forms of art or music, as well as to help tell different types of stories.

[Andy Carter]

One of the great pleasures of coming into this House was meeting the hon. Member for Perth and North Perthshire (Pete Wishart). I remember, having worked in radio, hearing his songs on the radio, including “Loch Lomond” from his days in Runrig. I was able to go away and listen to his songs, and in fact I have some of them on my phone now, so having listened to him speak, I can listen to him sing as well.

[Graham Stuart (Beverley and Holderness) (Con)]

I know which is preferable!

[Andy Carter]

Absolutely. One of the great advantages of the internet is that it has opened up to us so many artists, some of whom were, I have to say, before my day. The internet allows such discovery to continue in a way that perhaps would not have been possible without it.

[Dean Russell]

My hon. Friend makes an incredibly powerful point, which highlights the immediacy for us now of music and of art in general, which I see with film and in many other areas. Recently, as a member of the Joint Committee on the Draft Online Safety Bill, I was praising the Common Sense website, which states what age a child should be to watch a film. That has solved many arguments in families, who are able to find quickly not just the age rating for a film or television show but the recommended age at which a child could perhaps start watching things. With the conversations we can have, and the immediacy with which we can find information as well as music and movie soundtracks, the interconnectivity that we have through culture is incredible.

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[Julie Elliott]

I thank the right hon. Gentleman for that comment. Our Select Committee has looked in great detail at this issue in recent months. I do not come from a musical background—you really would not want to hear me sing—but I have always been a huge music fan. I was always told off for spending all my pocket money on music—on Smash Hits, as it was in those days, to see the lyrics, and on vinyl. One thing came out when we were looking at the impact of the pandemic on the music industry. As people could not perform live, that source of funding completely stopped for musicians and artists, and we then went on to look at streaming. Until that point, I had not given a huge amount of thought to where musicians’ and artists’ money came from—it had not really crossed my radar to such a degree. As we went through this streaming inquiry, what became apparent was the absolute unfairness of the system on the people who produce the music we love. It is not the people at the top of the music industry that this Bill would affect to any huge degree, but the people coming through—not just those starting out, but those at a middling level, who are winning awards; we have probably heard of them but they are not quite at the top of their career. They are literally struggling to pay their bills and that is not right. If this is not put right, people will not enter the music industry because they simply will not be able to afford to do so. That is of no benefit to anybody and that is the issue that needs sorting out.

It was interesting listening to just how opaque some of the dealings are between the record companies, publishers and everybody else. I innocently said it sounded a bit like a cartel—I am not saying it is a cartel, but it just sounded like one. Trying to follow where money was coming from, where it was changing hands and where it was going to was almost impossible. This idea of equitable remuneration struck me as a sensible way forward. I am not saying it is a perfect solution, as there probably is not one, but it is a sensible way forward to at least begin to put right the issue that clearly exists. As we all know in this place, the way the digital world has transformed our lives over the past 20 years, in music or in anything else, means that it is very difficult for legislation to keep pace with the changing digital world. Digital skills need updating every five months, but legislation in this area certainly has not changed every five months. I am pleased that the Government have referred some of this area to the Competition and Markets Authority, because there are definitely things that need looking at there.

I turn now to contract adjustment and the fourth part of this Bill, which deals with the 20 years to give notice on a contract. I have been a little surprised at some of the things I have heard about that in the House today. When we start any job, we get a contract of employment. In this day and age, very few people will still be party to that contract of employment after 20 years. People enter into a legal contract when they get married, but there is nothing to say that after any point, if that does not work, they cannot give notice and go through a legal process to get divorced. Why should artists tied to record labels, often at a very early stage of their career when they often do not have sufficient advice and support, be tied to a contract for more than 20 years if they do not choose to be? Just as record companies can renege on the contract after however many records have been produced, it is right that after 20 years any artist should be able to do so.

[Andy Carter]

Could the hon. Lady explain to me a practical point on this? If one particular artist were to give notice, that would then mean that the piece of music could not be broadcast or used in streaming. What would that mean for all the other artists performing on that track?

[Julie Elliott]

I do not think the basis for the hon. Gentleman’s question is quite accurate—I do not think it has that impact. I do not think a period of 20 years is an unreasonable length of time after which to be able to give notice on a contract if somebody chooses to do so.

In conclusion, there seems to be broad agreement among most hon. Members in the House today that the impact of the streaming of music and of people’s work is not fair, that remuneration as it stands is not fair, and that it would be welcome if we could take this Bill to the next stage to look at it in more detail. If that ends up not happening today, I urge the Government to look carefully at this area of legislation. Something must be done to ensure fair and equitable remuneration for people starting out and moving through the music industry so that, as an old trade unionist like me would say, they get a fair day’s pay for a fair day’s work.

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[Andy Carter (Warrington South) (Con)]

It is a pleasure to follow the hon. Member for Feltham and Heston (Seema Malhotra). I wish to start by congratulating the hon. Member for Cardiff West (Kevin Brennan), because in bringing this Bill to the House and having it delivering this level of attention, he has highlighted what an important sector UK music is. I cannot claim to be an ace musician—my piano lessons in secondary school led only to headaches for my parents—but I have spent some 20 years working in music broadcasting. During that time, I was part of the industry working group that negotiated with music rights holders, including PPL, the Performing Right Society and the Mechanical Copyright Protection Society, to secure permission to use recorded music on commercial radio. So I am aware of the relationship of businesses that build success on the back of playing recorded music, and I see the need for rights holders to be paid a fair settlement for their work.

I wish to step back a little and pay a brief tribute to the UK music sector. Everyone in this House should be incredibly proud of British music and the contribution it makes to not only our wellbeing, but our economy. For us in this country, British music is the soundtrack to our lives, but that is true around the world, too. UK recording artists feature on radio stations and streaming platforms around the globe every second of every day, and that has not come about because we have legislated to promote our great music. It is worth noting that some countries, such as France, do legislate to ensure that their broadcasters play French music, because they want to give it an unfair advantage. We, though, maintain an interest in supporting brilliant talent. UK music’s success has come about because we allow creativity to flourish, we invest, we nurture talent and we have the advantage of the English language. Above all, we have incredible songwriters, great musicians and brilliant performers who deliver what an engaged audience wants to listen to.

Let me just set out one or two figures that demonstrate that. The UK music industry contributed £5.8 billion to the UK economy in 2019, which was an 11% increase on the prior year. Employment in the industry hit an all-time high in 2019, at 197,000 people, which was an increase of 3% on the prior year. That is not just people playing instruments and singing songs; we are talking about songwriters, producers, artists’ managers, publishers, the people in recording studios, musicians, promoters, crew, and those in record labels and collective management organisations. They are all part of an industry that supports almost 200,000 jobs, which are critical to UK plc. The total export revenue of the music industry was £2.9 billion in 2019, which was an increase of about 9% on the prior year. This is such an important sector, and it is so crucial that we treat it with care when we consider legislation.

[Gareth Davies]

My hon. Friend is making an extremely powerful speech outlining the importance of the music industry to our economy. Will he acknowledge that it is also a vital part of our tourism attraction, bringing in about £4.7 billion in tourism revenue for this country every year?

[Andy Carter]

I thank my hon. Friend for that, as he pre-empted exactly what I was going to say next. We are talking about £4.7 billion of spending in the UK economy, which was an increase of 6% of the prior year. UK music tourism is crucial, and it is so important that we have live performances back in concert venues, pubs and locations across the UK. Our music industry is a critical national asset. It makes us feel good. It enriches our lives with tunes that get into our head and make us tap our feet, and it really does set the mood for the nation. What we do in legislation in this space could have profound implications.

[Dean Russell]

What my hon. Friend has just said is so important. The music industry contributes to not only tourism and the economy, but the culture of this country. So if we rush into legislation without making sure we have engaged with every possible partner and every possible organisation, we could get it wrong and therefore have dramatically bad effects for everyone. We need to support our artists—I am very supportive of the principles of the Bill—but we have got to get it right.

[Andy Carter]

I thank my hon. Friend for his intervention. We have to accept that we are talking about a global industry, and it is possible today to pick up a business and locate it anywhere in the world. If we make legislation in this country that makes it difficult to do business, we will see global businesses deciding to go and locate in other countries. My right hon. Friend the Member for Maldon (Mr Whittingdale) mentioned K-pop, and we should be very aware of what is going on in Asia. It is easy for international businesses to identify different markets, build on those phenomena and generate significant revenues from elsewhere in the world.

The developments we have seen over the last 20 years, from music lovers being able to walk into Our Price or HMV and buy a CD to a model where they can have any sort of music instantly available on their phone simply by saying the name into a smart speaker, have changed the game completely and in a way that most of us could not have imagined 20 years ago.

This private Member’s Bill follows on from Parliament’s inquiry into the economics of streaming. At a base level, it seeks to alter the artist-label relationship through copyright law reforms to rights ownership and how revenue stemming from an artist’s recording is shared out. Actually, the way in which streaming moneys are split between an artist and the label or distributor they work with on their recordings is entirely dependent on how each individual record and distribution deal is reached. The artist could receive anything from a few per cent. to 100% of the money they generate. That is based on the contract they sign when they enter into business.

Although the Bill raises some critical issues—I support action on many of the themes that have arisen in today’s era of streaming—some unintended consequences may arise from it. Those need to be discussed because, although I want to see change, I also want to ensure that future generations of British artists receive the investment that they deserve. On the back of the Select Committee inquiry, the Government are already working with the sector to assess the market for all stakeholders through the Competition and Markets Authority, the IPO and DCMS, and I look forward to hearing what the Minister has to say shortly.

We need to have a data-driven and evidence-based approach to such a complex and important issue. The arguments that underpin the Bill are emotionally compelling, but I am afraid that they incorrectly play on the David versus Goliath narrative. I have seen headlines saying that artists are not earning from streaming, but streaming has actually provided artists with greater success than the CD era. The shares of label revenue that artists receive are higher than they were in the past. Artist remuneration has risen to 46% of overall revenue, compared with an increase in label revenues of 31%, meaning that artists are claiming a larger share of streaming revenue than they have done traditionally.

Other terms have also improved in the artist’s favour, including sharing equity in streaming services, digital breakage and writing off unrecouped balances, as well as royalty rates increasing. The hon. Member for Perth and North Perthshire (Pete Wishart)—I want to refer to him as the hon. Member for Runrig—said that one of the challenges he faced was that his unrecouped revenues were never reached, so he never earned any money. Artists are talking action on that, and I am pleased that they are being listened to.

A study of musicians’ pay by the IPO showed that between 2008 and 2019 artists and composers have seen their earnings rise faster than those of record labels. The intentions behind the Bill do not reflect those advances, and are not supported by the robust data and evidence delivered by independent academics in the IPO’s recent report.

The set of legislative proposals included in the Bill, although well intentioned, could actually harm the very model that has underpinned the industry’s renaissance. The focus needs to be on securing better deals with streaming companies. I was really struck by the comments of the former CEO of EMI Records, Tony Wadsworth, who suggested that if Bill were passed today,

“these proposals would create huge uncertainty, a mountain of red tape and make the U.K. a terrible place for investment in music.”

We do need to do something, but that something needs support from across the sector. I would argue that we need to see the outcome of the investigations by the CMA before any changes in the Bill are actually brought into force.

In business, and particularly in the music business, I am afraid that we see a need for instant gratification and success, and music labels are the only players that can tackle that. Their long game is what is really critical. We need to take their views seriously and recognise their concerns about this Bill. Successful artists from the 1980s funded investment into new artists in the 1990s, which in turn funded investment into the young artists of the 2000s. Artists such as the Pet Shop Boys, Radiohead, Robbie Williams, Coldplay and many others were supported by that investment in their early years, and that music ecosystem will continue to support music artists in the future.

Labels will continue to invest huge amounts each year in emerging talent through artists and repertoire, the music industry’s equivalent of research and development. My right hon. Friend the Member for Tatton (Esther McVey) indicated earlier that the amount of money being spent could be cut. I suggest to her that if we look at the music business around the world, 30% R&D is what is happening in all markets. I am afraid I do not see that changing any time soon, because if businesses could find a way to reduce that, I think they would; it would be an incentive to businesses to be able to reduce it at an early stage.

However, there is no denying that the new cast of characters in the market, such as Spotify, Apple Music and content platforms such as YouTube, have changed the game. When physical sales were king, the top 10 artists were twice as dominant in earnings terms as they are now. With streaming, considerably more new talent can build up a real fan base, while popular established acts are able to find new audiences and become timeless.

I am not suggesting there is nothing to fix. Music is being devalued and musicians’ earnings are being impacted. Ad-funded streaming services are not paying fairly for the music that drives their business, and that is an issue we should absolutely tackle. YouTube accounted for more than 20% of streaming consumption in the UK last year, but generated only £35 million in royalties, £20 million less than artists and labels earned from good old-fashioned vinyl records. The question we should really ask is how such services can get away with paying so little.

The market is by no means perfect but, unlike the giants of free content, subscription-based streaming services enable more artists to share in the money they make from music. In my view, the contemporary music landscape is much wider, and I fear the Bill will harm chances for newer and more diverse artists and businesses that have either escaped the old-world paradigm, or grown up in the newer, more open ecosystem in which many businesses flourish today.

I turn briefly to the term “equitable remuneration”, which is often used. I make no bones about this: I am afraid equitable remuneration will not mean fair payment in the sense that it is commonly understood. I have heard a number of hon. Members on the Opposition Benches talking about fair pay for a fair day’s work. I am afraid equitable remuneration will not deliver that in the sense that they perhaps believe it will.

Analysis by the Association of Independent Music suggests that applying ER to streaming will not address income inequality in music. In fact, the top 1% will get richer at everybody else’s expense. There is an argument that ER favours the old world over the new, or artists who have had success in the CD era and before over the new generations of diverse creators and entrepreneurs who are succeeding in the digital age. I want to see all artists rewarded fairly, but we need to create that environment when we have all the information to do so.

The industry would not know whether it would have 70 years or 20 years in which to recoup its investments if the Bill moved forward, because of the flexibility it would allow for contracts to be terminated. That would have a major influence on how much labels would be able to invest in new signings, new recordings and marketing, and on the terms they would offer in new deals.

As the hon. Member for Sunderland Central (Julie Elliott) said earlier, there are some practical problems for multiple performers, where revocation by a single performer would prevent continued commercialisation of a record. I recognise that when she responded to my question, she said there was much more to look into in that particular area, and I suggest that that is a real-world problem that the Bill does not necessarily address.

As I said earlier, I believe we need to see changes to fairly reward artists and grow the music sector in the most effective way to benefit artists. The UK is the second biggest exporter of recorded music in the world—one in 10 songs streamed globally is by a British artist—but I am afraid that the Bill would put that model at risk. The legislation would seek to only hasten the decline if large labels decided to invest more in overseas territories than in the UK. On that basis, I urge the Minister and DCMS to do more work before we take the Bill forward.

Net Zero Strategy and Heat and Buildings Strategy

Andy Carter Excerpts

Tuesday 19th October 2021 Commons Chamber

[Greg Hands]

The hon. Gentleman asks a reasonable question with a rather unreasonable preamble, if he does not mind my saying so. I do not think there have been failures of Government policy in this area. Actually, our overall record—not just this Government’s record but the record of the country as a whole over the past 30 years in reducing emissions while achieving economic growth—is one of success.

Of course we are learning from previous schemes, and we are making sure that this new scheme goes with the flow and is simpler and easier to administer. We will also make sure that the parameters are set very clearly in the lead-up to the launch next April.

[Andy Carter (Warrington South) (Con)]

I welcome the Government’s support for the HyNet cluster, which is a huge vote of confidence in north-west businesses. Does my right hon. Friend agree that this announcement will put the north-west and the UK at the cutting edge of hydrogen technology and will help to secure thousands of jobs in the north-west, including in Warrington?

[Greg Hands]

I concur with my hon. Friend, who is a tireless champion for his Warrington constituents. We are delighted with today’s announcement. Carbon capture, utilisation and storage is a huge opportunity for the UK. When I talk to the industry, it makes strong points about how the UK is geologically, geographically and economically well suited to make sure that carbon capture, utilisation and storage is a big part of our low-carbon future, and I commend him for his support for the HyNet cluster in the north-west of England and across into north Wales.

Oral Answers to Questions

Andy Carter Excerpts

Tuesday 21st September 2021 Commons Chamber

[Paul Scully]

The hon. Lady started talking about supply chains and ended up talking about welfare, but let me tackle the supply chains issue. We are working closely with sector leaders to understand how we can encourage more people to work in these areas. Through our plan for jobs, we are also giving people the skills and qualifications that they need to quickly take up roles in key sectors. That is why we are inviting employers from a range of sectors, including farming and hospitality, into local jobcentres, as one of the most effective ways to promote vacancies is for employers to come out and market their opportunities directly to our work coaches and jobseekers

[Andy Carter (Warrington South) (Con)]

11. What steps his Department is taking to support hydrogen production in the UK.

[Peter Gibson (Darlington) (Con)]

20. What steps his Department is taking to support hydrogen production in the UK.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Lee Rowley)]

My hon. Friend the Member for Warrington South (Andy Carter) asks a timely question; he may be aware that the United Kingdom recently published a hydrogen strategy outlining the Government’s comprehensive package to incentivise low-carbon hydrogen, and a broader plan to help the wider hydrogen economy to develop.

[Andy Carter]

The recent increase in wholesale energy prices strengthens the case for investing in hydrogen in the north-west of England. May I urge the Minister to come to Warrington and see the businesses that rely on intensive use of energy, and rapidly progress hydrogen and the HyNet scheme to produce carbon capture and storage in the UK, so that businesses such as Novelis Recycling and Solvay Interox are able to decarbonise rapidly?

[Lee Rowley]

My hon. Friend is a doughty champion for the north-west and his constituency of Warrington. The Secretary of State has said to me that one of the ministerial team would be happy to visit. I think the Secretary of State would be happy to do that—indeed, I think he has already visited. As my hon. Friend is aware, many of the decisions around this matter are currently under way, so I am not going to comment on them at this point. At the end of the process, we will have a low-carbon hydrogen economy to be proud of.

Green Energy in the North-west

Andy Carter Excerpts

Wednesday 23rd June 2021 Westminster Hall

[Andy Carter (Warrington South) (Con)]

It is a pleasure to serve under your chairmanship, Mr McCabe. I thank the hon. Member for Birkenhead (Mick Whitley) for securing this really important debate.

The Government have taken a global leadership role in setting an ambitious trajectory to reduce greenhouse gas emissions. My constituency has seen the closure of the Fiddlers Ferry coal-fired power station, which has been a physical landmark in the north-west of England over the past 12 months as the UK has shifted its focus from coal-fired power stations to more sustainable forms. However, that has had an impact on experienced, secure jobs in my part of the north-west.

We in the north-west are in a prime position to support the green industrial revolution, with local and regional industry acting as a springboard for low-carbon growth. With a diverse range of low-carbon projects already happening on the ground, I am optimistic that the north-west is destined to make a significant contribution to the UK’s net zero carbon emissions target. This is a legacy that we need to build on over the next few decades as we head towards our 2050 net zero target, from offshore wind and hydrogen to carbon capture and electric vehicles. Warrington in particular is a regional centre of excellence in the nuclear sector. These specialisms are conceived in northern minds and built by northern hands, and while it is right that our clean energy plans should be ambitious, much like the first industrial revolution, they must come with a positive return for local people.

I mentioned the jobs we have lost. We need skills change. We need more employment, and most importantly for the economic growth of our region, we need this to come quickly. I am really excited, therefore, by the prospect of HyNet, to which the Government have already committed £33 million and which is currently being developed by Cadent. As the Minister knows, HyNet will involve the development of new hydrogen pipelines across Merseyside, Greater Manchester and Cheshire and the creation of the UK’s first carbon capture and storage infrastructure.

HyNet has the potential to create £17 billion of added economic value for the north-west region and could create up to 5,000 jobs in the region by 2025. It will also deliver more than a million tonnes of CO₂ savings per annum—the equivalent of taking more than 600,000 cars off the road every year—and will have a decarbonising effect against other sectors such as transport, industry and home heating. In short, it really is a game changer for the north-west. I am keen to ask the Minister, given the likely readiness of HyNet, whether she will look carefully at this project being given priority—track 1 —as one of the first projects to be moved forward in 2025.

In the time I have left, I will also mention some of the smaller projects, which can fuel and heat our homes deep within local communities. I was really pleased to learn that Lymm Community Energy, in my constituency, has secured funding from the rural community energy fund to assess the feasibility of constructing a 5 MW solar farm. The project has the potential to supply local residents, businesses and community facilities with electricity, and is investigating whether it could accommodate battery storage too. The proposed solar farm would support 1,500 homes and would save around 1,130 tonnes of CO₂ emissions annually. As well as that, any financial surplus generated will be put back into a community benefit fund that would support local projects and organisations. The combination of the large-scale HyNet project and the smaller Lymm energy project will fuel our homes, businesses and transport in the future. I look forward to seeing these projects achieve net zero and level up the country.

Advanced Research and Invention Agency Bill

Andy Carter Excerpts

2nd reading
Tuesday 23rd March 2021 Commons Chamber

[Andy Carter (Warrington South) (Con)]

It is a pleasure to follow my hon. Friend the Member for Bracknell (James Sunderland). We have heard about Bracknell; I will tell the House about the wonders of Warrington.

We in the UK have a proud history of scientific excellence and innovation. From the early theorists, such as Sir Isaac Newton and Charles Darwin, to the major scientific discoveries of hydrogen by Henry Cavendish and penicillin by Alexander Fleming, and of course Oxford University’s coronavirus vaccine, we have made huge contributions to science both past and present, so I warmly welcome the plans that the Secretary of State set out today to support and encourage our next generation of pioneering inventors and innovators, backed by this new independent research funder.

By funding high-risk, high-reward scientific research, ARIA will give visionary scientists the support and freedom to identify and fund transformational science and technology at speed. Our brilliant scientists have led the way in the development of the coronavirus vaccine and our high-risk strategy has shown the world what can be achieved when academia and private and public investment are brought together. ARIA will allow the UK to make good on its Government’s ambitions as a global scientific superpower and allow us to contribute to Build Back Better through innovation. The agency will be able to operate flexibly and quickly, better supporting the UK’s most pioneering researchers and, importantly, avoiding unnecessary bureaucracy. By stripping back the red tape and putting power in the hands of innovators, ARIA will drive forward the technologies of tomorrow. While there is definitely space in the UK’s research landscape for a new funding agency that supports that sort of risk and investment, it should be designed in a way that complements the wider system of funding streams that already exist. Will the Minister set out clearly how the new agency will complement the existing bodies?

I want to see funding distributed across our prime science capabilities in the north of England. The Daresbury laboratory sits on my constituency doorstep, so towns such as Warrington, perfectly located midway between the two great northern cities of Liverpool and Manchester, could really benefit from such investment, allowing the high-tech sectors that develop there to be rocket-powered. I am sure that the hon. Member for Weaver Vale (Mike Amesbury) will not mind my plugging the opportunities further to bolster the Daresbury campus, which is recognised as the north’s centre of excellence for innovation in high-tech business from start-ups to multinationals across all kinds of sectors and research disciplines, including the growth challenge areas of healthcare, energy, environment and security.

As the Minister will know, the Cockcroft Institute and its particle accelerator research already has a home at Daresbury, and I know there are spaces there for a few more new ideas. Warrington is also well known as the research centre for the nuclear sector, and building on that campus at Daresbury and encouraging collaboration between the brightest minds and those that are already in the north-west means we have an opportunity to level up through the programme. Life sciences make up an integral part of the north’s economic ecosystem, generating £7.5 billion annually for UK, but the north has historically been underfunded for research and ARIA offers a great opportunity to narrow that divide.

A report published just last week shows that in the past 10 years, 72% of additional jobs created in the 10 most R&D intensive industries were located in the regions covering London, Oxford and Cambridge, despite those regions containing only 20% of the population. In 2018, London and the south-east received almost 50% of Government and UKRI’s total R&D spending. The Nesta report estimates that the regions outside London and the south-east have missed out on Government R&D funding of about £4 billion each year, which could have leveraged a further £8 billion from the private sector.

For ARIA to achieve its transformational change, it must work closely with industry partners. The north-west of England receives private investment in R&D at three times the rate of public investment. Industry recognises the opportunity available in my region, and ARIA is an opportunity to add extra drive and open up more opportunities in constituencies such as Warrington, where jobs and livelihoods are already supported and sustained by the thriving Cheshire life science corridor. We are already seeing northern universities collaborate through the Northern Health Science Alliance, N8 and the introduction of Northern Gritstone. We just need to give them the financial backing and the freedom to make this happen. I very much welcome the plans set out today and look forward to supporting the Bill later.

Oral Answers to Questions

Andy Carter Excerpts

Tuesday 9th February 2021 Commons Chamber

[Paul Scully]

We work with Public Health England and with the Health and Safety Executive to ensure that we have the best safer workplace guidance, and if there are specific examples where that is not working, I would be happy to take that on board, but with 12.3 million first-dose vaccinations undertaken to date, hopefully we can get through this period and have even safer workplaces as the economy comes back to normal.

[Andy Carter (Warrington South) (Con)]

What steps his Department is taking to achieve net zero emissions by 2050.

[Henry Smith (Crawley) (Con)]

What steps his Department is taking to achieve net zero emissions by 2050.

[The Minister for Business, Energy and Clean Growth (Anne-Marie Trevelyan)]

We are matching the UK’s world-leading net zero ambition with world-leading action. The Prime Minister’s 10-point plan for a green industrial revolution will accelerate our path to net zero with £12 billion of Government investment, including a commitment to power every home in the UK with offshore wind by 2030. In December, we published the energy White Paper and we will publish our net zero strategy ahead of COP26.

[Andy Carter [V]]

I thank the Minister for her statement. Could she expand on some of the points she makes, particularly the support that small businesses in towns such as Warrington might expect to receive to reduce their carbon emissions and contribute to net zero targets at a time when many are concerned about the costs of day-to-day business in the light of covid?