Boulby Potash and Teesside Unemployment

Debate between Andy McDonald and Tom Blenkinsop

Wednesday 2nd December 2015 Westminster Hall

[Tom Blenkinsop]

My hon. Friend must have the password to my laptop, because he is quoting my speech verbatim.

To go back to the issue of unemployment, Teesside has endured a tsunami of job losses recently—I genuinely feel that that statement is proportionate. I mentioned the closure of SSI, which has had an impact on its supply chain and on other related businesses with a link to the steel industry. That does not include the contractors affected, nor the loss of the Caparo steel site in Hartlepool. In Stockton, 700 contractors were left shattered at Air Products as it halted the construction of a second gasification plant. Admittedly that is because of technical issues, not economic ones, but no timeline has been given for when construction will be brought back, so those men and women will have to find alternative employment. Jobs will also inevitably go following the relocation of offices by HMRC, as my hon. Friend highlighted. On top of that, local councils and public services continue to feel an unprecedented squeeze on finances due to reductions in central Government funding, and job losses will inevitably follow.

I have spoken at length about the 700 job losses at Boulby. Hopefully I have made it clear that the labour market across Teesside and east Cleveland is beyond crisis point. Governments are meant to make the lives of their citizens easier and provide support in tough times. I cannot call what the Government are doing inaction, because they made the HMRC decision, but they have somehow made—or endeavoured to make—the situation worse in a difficult period.

[Andy McDonald (Middlesbrough) (Lab)]

My hon. Friend makes an excellent point about the HMRC job losses. As far as his own constituency is concerned, if those jobs now have to be consolidated, people will have to travel to Waterview Park or Longbenton. The journey for those people, especially from places such as Guisborough in his constituency, will be some five hours, and that simply is not sustainable. Those jobs, as he and I have experienced in the past, will simply wither on the vine. Is that not an accurate statement of what will happen on Teesside?

[Tom Blenkinsop]

My hon. Friend accurately portrays the difficulty of not only the lack of jobs but the geography of the area.

I have mentioned the high number of private sector industrial jobs being lost, but we cannot forget the impact on well-paid, stable, sustainable public sector jobs, or the follow-on impact on small businesses. People are used to walking into their local tax office or simply picking up the phone to talk to someone there. Admittedly the Government have a reasonable agenda in trying to move towards an online system, but small businesses, in some cases, do not have the know-how, the capital or the time to do use such a system. They need to pick up the phone and get help immediately. I will go into that later.

The fact that we have just under 8,500 people officially registered as unemployed—I hasten to add that that figure is from before the job losses I am talking about today were recorded—shows the sheer degree of human waste and squandering of talent that this Government are presiding over. If those people were in productive work, they could be helping to build a better future and a better economy for Teesside. It is a waste of talent and a waste of human potential, and that is what makes the job losses even more devastating.

As a lot of the industries affected are specialised, finding suitable alternative employment is not straightforward, and the level of pay certainly cannot be matched by other local employers. If we take the example of face workers at Boulby, although their core pay is £28,000 to £29,000 a year, after bonuses they are probably getting somewhere in the region of £40,000 a year. The average income in the Tees valley is more around the £20,000 to £21,000 mark, so we are talking about 700 workers who are on double the area’s average wage. That will have a huge economic impact downstream. We do not have any more of the large-scale heavy industry employers to which there would be a good chance of skills being transferred.

Although welcome, the projects in the pipeline, such as the MGT Power plant, are some time away. If the Government are serious about the northern powerhouse, they must act in the meantime. The future of Skinningrove’s special profiles and the Teesside beam mill near Redcar is still uncertain. Leading figures from across Teesside have argued for a number of years for the need to diversify the economy away from large employers that are highly susceptible to the economic market, while keeping them in place. That continues to be the case, and sadly the fears have become a reality.

We must intervene, knowing that the market fluctuates, and help with the diversification. We cannot simply sit here and say, “This is the market,” again, allowing thousands of people to be shed, because I fear that the skills those people carry will inevitably go to other areas. That will have fiscal implications for our local area and its ability to pay for local services, especially in a political culture where our Government are devolving more and more to our local areas, while the ability of areas to retain their own wealth is being eroded and depleted.

This coming Saturday, I suspect we will all be supporting the Small Business Saturday initiative. It is more vital than ever that small businesses in my constituency are supported, because they need to grow and provide more employment opportunities for my constituents. Creating a mixed economy will require risks to be taken. However, to support and develop our existing process industries on Teesside, we need Government commitment to supporting developing projects such as the Teesside Collective so that it becomes the go-to location for future clean industrial development and Europe’s first CCS-equipped industrial zone. We need our area to be seen and developed as a prime location for the use of Durham coalfield gas—a non-conventional gas that is 50% cheaper than conventional gas—via gasification, so that we can address green costs and taxes for industry and ensure a cheap, indigenous energy supply.

Steel Industry

Debate between Andy McDonald and Tom Blenkinsop

Wednesday 28th October 2015 Commons Chamber

[Andy McDonald (Middlesbrough) (Lab)]

I speak as somebody from Middlesbrough, and at the last time of counting, 33% of the workforce at Redcar hailed from my constituency. I have no reason to believe that the figures are much different today.

We need an inquiry into the collapse of SSI. I echo the demand from my neighbour, my hon. Friend the Member for Redcar (Anna Turley), who has done a sterling job in her fight for her constituents. We also need an inquiry into whether the Department for Business, Innovation and Skills is fit for purpose. I think it has been sadly lacking in many respects. The bottom line is that this Government could have acted in Redcar and they did not. The coke business was viable and it is an outrage that PWC was not directed to ensure that that business was sustained. That coke could have been made. There was a ready-made market for it. That would have put electricity into the national grid. It was a viable business, and people on Teesside cannot understand why the Government sat back and allowed it to fail. It is a very Conservative failure, and death by neglect—they sat back and did nothing at all. We have heard a lot of blether today about what the Government cannot do. What we want to hear is what the Government can do and what they will get on with.

[Tom Blenkinsop]

My hon. Friend will be aware that for the sake of £17 million, the third grade required in the three grades for sellable foundry coke could have made that business viable. The often-quoted £2 million cost was actually about South Bank coke ovens, which was already designated for mothballing in April 2016. Redcar coke ovens was profitable and viable, which is why SSI tried to re-form itself as a new company, and Kirby Adams, a former CEO of Tata Europe, tried himself to set it up as a business.

[Andy McDonald]

My hon. Friend and neighbour makes a very good point. We have heard throughout that the coal in situ was not suitable for purposes other than the blast furnace. Other coal could have been brought in. Hargreaves was able and available for that and was not embraced. Any sensible Government would have grabbed that opportunity with both hands, but they did not do so.

UK Steel Industry

Debate between Andy McDonald and Tom Blenkinsop

Wednesday 15th July 2015 Westminster Hall

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

I beg to move,

That this House has considered the future of the UK steel industry.

I am grateful for the opportunity to introduce this important debate, and I am grateful to hon. Members for attending. I welcome the Minister to her new role. She has already surpassed her predecessor, the right hon. Member for West Suffolk (Matthew Hancock), by attending this debate. She should not worry because I will be positive and compliment her, and hopefully she will compliment the all-party group on steel and metal-related industries by providing good answers to our questions.

The steel industry is a vital strategic foundation for the UK. Steel is fundamental to strategic sectors such as automotive, construction and energy. Being infinitely recyclable, steel is perfectly suited to sustainability. Like those of many hon. Members here, my constituency has a great and proud history rooted in the production of steel and associated products, and I hope that steel will play a strong role in the future of my area and my country.

The manufacturing of steel products makes a significant contribution to the British economy. Exports of British steel were worth £4.9 billion in 2013 and contributed £2.4 billion to the UK’s balance of trade. The sector’s overall contribution to the UK economy is worth some £9.5 billion a year. It underpins many other economic activities and will continue to do so for the foreseeable future. The industry provides jobs for thousands of people and supports domestic businesses and employment in the supply chain, with associated knock-on benefits for the national economy generated by tax revenues.

During the previous Parliament, the Government said that they would take swift and robust action by introducing compensation payments in relation to the EU emissions trading scheme in 2013, carbon price support in 2014 and making a commitment to commence payments in relation to renewables levies later this year and next year, but the industry faces a number of urgent and critical challenges today if it is to succeed tomorrow. The need for major ongoing investment will continue, and a meaningful partnership between the industry and the Government is required to overcome those challenges.

The changing nature of the economy means that the UK now imports more of the steel it consumes, largely in the shape of finished goods. In 1970, 90% of the steel consumed in the UK came from domestic production; that share is now less than 20%, with consumption broadly the same. That has compelled the UK metals sector to become increasingly export focused, which exposes us to shifting wider demand patterns and movement in exchange risks, as we have seen recently. Meanwhile, the UK remains open to imported steel material from as far away as China.

The UK steel sector continues to suffer an ongoing economic crisis. The service sector-led economic recovery has left steel-consuming sectors, such as construction, between 5% and 10% below 2007 levels; and recovering activity in such sectors has been less steel-intensive. UK steel demand in 2015 is forecast to be 75% of pre-recession levels, compared with 94% in Germany and 180% in China. Such demand levels are a real problem for a capital-intensive business such as steel.

High levels of steel imports are another challenge faced by the industry. Members of the APPG, of which I am chair, are increasingly concerned about the dramatic increase in UK steel imports, most notably from China. Steel imports from China have doubled in the first four months of 2015 compared with the same period last year.

[Andy McDonald (Middlesbrough) (Lab)]

Does my hon. Friend agree that the Government should adopt the charter for sustainable British steel and bring that standard into their procurement practices? That would help to tackle some of the import problems that he outlines.

[Tom Blenkinsop]

My hon. Friend makes an excellent point, which both the APPG and EEF, the manufacturers’ organisation, have been making for some time. I hope the Minister will respond on that.

Compared with the same period last year, some products are registering truly staggering increases in imports of between 1,000% and 3,000%. The primary cause of those increases is the slowdown in Chinese construction activity, which has prompted certain Chinese producers to seek new markets in which to dump excess production. Those producers have come to the UK because they are already accredited under the British accreditation scheme to sell in far eastern markets such as Hong Kong and Singapore, which use the same accreditation scheme.

The APPG is committed to free trade, but what we are currently experiencing with some steel products cannot be considered free trade. The Government need to take a more proactive approach in such cases—some would say that they need to adopt industrial activism—and I welcome the news that, in last week’s European Commission anti-dumping committee, the Government voted in favour of maintaining anti-dumping duties on wire rod. The Minister heard my colleagues on that issue and took action. In a short period of time, she has been an infinitely better Minister than her predecessor. I will keep praising her in the hope that we get even better answers as the debate continues.

Loss of sales of the magnitude we are seeing now is unsustainable in the longer term for the one remaining British producer of rebar, Celsa, which is based in the constituency of my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty). The argument is not about creating barriers but about ensuring a level playing field not only in this case but in future anti-dumping cases, such as those on reinforcing steel bar, grain-oriented electrical steels and cold-rolled steels, which are all at various stages of investigation by the European Commission anti-dumping committee.

The steel industry is not all doom and gloom. An industry that remains innovative in which people continue to invest will create direct jobs, skills and broader regional economic growth. The steel industry has the potential to enjoy a long, sustainable, innovative and productive future. Earlier this month, for example, BOC, the biggest industrial gas company in the UK, signed a 15-year agreement to supply industrial gases to Sahaviriya Steel Industries UK, a major integrated iron and steel manufacturing facility based on Teesside in the constituency of my hon. Friend the Member for Redcar (Anna Turley) at the Teesside Cast Products site. The agreement is one of the largest gas contracts ever awarded in the UK. There has since been a turnaround, and the agreement represents a huge vote of confidence in the long-term sustainability of steelmaking on Teesside and the wider UK.

Another example, again from Teesside, is the cluster of energy-intensive industries in the Tees valley that recently set out a bold plan for the UK to lead the world in combining a growing industrial base with substantial reductions in carbon emissions. What is planned will be Europe’s first industrial carbon capture and storage network. CCS is a group of proven technologies that can capture, transport and permanently store up to 90% of carbon dioxide emissions produced by burning fossil fuels, thereby preventing them from entering the atmosphere. To date, the focus in the UK has been on commercialising CCS for electricity generation. Teesside Collective is an important departure; its premise is that a range of industries will be able to capture their emissions, plug them into a shared pipeline network and send them for permanent storage under the North sea. CCS is significant for the steel industry, as an energy-intensive industry, because the EU emissions trading system is likely to remain the primary driver of reducing industrial emissions up to 2030. Following the agreement of a new EU climate change package in 2014, sectors within the EU ETS will collectively need to reduce emissions by 43% between 2005 and 2030. Such reductions may be hard to achieve for sectors such a steel, but that type of programme offers a high-tech solution.

Projects such as the Teesside Collective may be crucial for the long-term future of the steel industry, and I welcome the support that the project has received from the Department of Energy and Climate Change. It is vital that the Government are proactive in supporting the steel industry. Such support does not have to consist of intervention similar to that in Italy, where the largest steelworks is in the process of being nationalised—incidentally, it is one of the worst-polluting steelworks in the EU. Government support could take the form of policies such as competitive energy prices and business rates. Following the review that ended in June, a swift, positive response is now required.

Transport (Tees Valley)

Debate between Andy McDonald and Tom Blenkinsop

Tuesday 10th February 2015 Commons Chamber

[Andy McDonald]

I thank the hon. Gentleman for that intervention. I think we are speaking with one voice for Tees Valley and I am grateful to him for his support.

Quite simply, the Tees Valley transport infrastructure, opposite the existing and future needs of businesses and communities, is lacking in key areas, and those deficits need to be addressed if we are to capitalise on the terrific potential of our region. Undoubtedly, Tees Valley is not configured like the self-styled core cities, but it has its own unique configuration and status that warrants a seat at the table. The Minister will be aware of the excellent inclusive outcomes that have been achieved in the governance arrangements for Rail North, and I hope he will agree with me that it would be entirely sensible to take that sort of inclusive approach in terms of the board of Transport for the North. I urge the Minister to take the necessary steps to ensure that Tees Valley has a seat.

It is regrettable that the state cannot currently compete alongside private companies for rail franchises, but putting that argument to one side for another day I am nevertheless pleased that on the awarding of the new franchise the business case has been won for the reintroduction of a direct Middlesbrough to London rail service, so I need not repeat it. Clearly, the economic growth that this will deliver is unarguable. The disappointment is that the service will come into being only in five years’ time in 2020. I wish to place on record my thanks to the Under-Secretary of State for Transport, the hon. Member for Devizes (Claire Perry) for meeting me to discuss this matter last week. I would like to think that she was persuaded by the veracity of the case for accelerating the start of the service. I hope that Virgin East Coast can find ways and seize whatever opportunities present to bring forward the start date of the service.

Turning to a matter that concerns Network Rail, just over a year ago the main entrance to Middlesbrough station was closed because of structural difficulties with the Victorian cloister buildings that sit underneath the station main car park. This means there is now no vehicular or indeed pedestrian access to the station from the main southerly aspect, because of the inherent dangers. A year on, plans are now being progressed to board up the frontage, install signage and prepare alternative parking arrangements while architects and engineers go about preparing plans for reconstruction and development. All well and good, but this is all simply far too slow. The people of Middlesbrough deserve better than this. They pay their taxes, unlike some HSBC super wealthy customers. I can only look on with envy at the £895 million redevelopment of Reading station. It looks fantastic and is entirely fit for purpose in the modern railway age. Back in Middlesbrough, however, progress is painfully slow. The town’s people are incredibly patient—they’ve had practice. Indeed, while Dresden, Frankfurt and Berlin were all rebuilt in the aftermath of the second world war, Middlesbrough railway station’s beautiful glass and steel-domed roof was destroyed by the bombs dropped by the Luftwaffe in 1942 and we are still waiting for it to be put back. I urge the Minister in turn to press home the need with Network Rail for much greater urgency and I plead for better communication. It surely cannot be too much to ask for there to be a dedicated website to explain directly to the public what the problem is, what they are doing about it and how long it will all take to put right.

Turning to Darlington railway station, which is the sub-region’s east coast mainline hub, there are significant encumbrances, but their resolution will facilitate significant developmental opportunities. I am confident that my hon. Friend the Member for Darlington (Jenny Chapman) will not mind me trespassing, but the entrapment of the local west-east line out of Darlington station, between the north and southbound lines of the east coast, causes immense difficulties in terms of managing the competing traffic demands. It is also a source of congestion and delay for the east coast service itself. The accepted solution is to move the local line from its current configuration and relocate it free of the mainline crossover. Not only will that improve both local and long-haul services, it will free up a major commercial developmental opportunity within the station itself.

All that was brought into stark reality for me just two weeks ago, when changing trains from the King’s Cross Darlington train for the Darlington-Middlesbrough train. The local train was a Pacer train—perhaps one of the worst in the fleet with the metal-framed bus seats. There was a problem with the points, and there were no trains in or out of Darlington for more than an hour. On a bitterly cold evening, the choice facing passengers was to step out on the freezing platform or to wait in their seats and suffer the dreadful poisonous diesel fumes coming into the carriages. That these are our travelling conditions some 200 years after George Stephenson created the first passenger railway in the very town of Darlington simply beggars belief.

My plea to the Minister is that we get rid of these cattle trucks as quickly as possible and replace them with some decent forms of transportation. David Higgins, the CEO of HS2, has himself said that if the good people of the south of England were asked to tolerate such appalling rolling stock, there would be riots. The time for change is long past. I know that the Secretary of State has been pressed on this, but they need to go, and to go quickly.

With more than 70% of major local businesses internationally owned, we remain globally competitive by offering effective transport links and resilient infrastructure. Undoubtedly, rail connectivity needs to be improved, and electrification across the north of England is crucial to this objective. While the TransPennine and Northern franchises have yet to be awarded, it is absolutely essential for the vitality of Tees Valley, the entire northern region and the UK as a whole that good and direct links be preserved and developed right across the north to include direct services from Middlesbrough to Leeds, Manchester and Liverpool.

The argument for electrification has long since been won. I shall not recite the environmental and economic justifications, but the benefits to Tees Valley would be enormous. Much is said about the interconnectivity of our core cities, and rightly so. We have to address that issue, but the same principle applies to interconnectivity within regions such as the north-east and sub-regions such as Tees Valley. It currently takes up to one hour and 36 minutes to travel between Middlesbrough on the Tees and Newcastle on the Tyne—a distance of 40 miles by road between the two major conurbations; and it takes 53 minutes to travel from Saltburn to Darlington by way of a bone-shaking Pacer that has no part in modern-day transport in one of the richest countries on the planet. Mo Farah would give it a good run for its money! I know that the electrification taskforce will report imminently, but I trust that the Minister will agree that the case has been more than made that electrification from the east coast main line from Northallerton through to Teesport is a top priority.

The concept of the Tees Valley metro has been on the stocks for some considerable time, but only electrification of the existing sub-regional network could make it feasible. A light rail or tram system would be trans- formational for Tees Valley.

The way in which bus services are currently delivered is encapsulated in the stories I hear when I speak to Avanta, which is charged with delivering the Work programme. It tells me that far too often it can source entry level work at places such as Teesport and elsewhere across Tees Valley, only for it to prove impossible for the client physically to travel to such places of work at the times the businesses need them and/or to get home again. Quite frankly, we do not have a public transport system worthy of the name.

My constituents in places such as Berwick Hills tell me of the lack of buses to get to the hospital. It is essential that when powers are devolved to combined authorities they include the re-regulation of buses, in the way that benefits London, and mandatory comprehensive transport coverage for accessing health services and other key destinations. A truly integrated transport system must be one where bus, road and rail services coalesce around the needs of our businesses and communities.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

My hon. Friend makes an excellent point about the bus service through Park End. This follows the recent news of the closure of the medical clinic in Park End, which also served his constituents in Berwick Hills. Not only are primary health care services being cut, but access to secondary health care services is being reduced as a result of the bus service terminations.

[Andy McDonald]

My hon. Friend makes a good point. People need to get to hospital when they are ill or visiting relatives, and they need to get to work at the time their businesses need them and then get home again.

Almost finally, roads warrant an entire debate of their own, but as my hon. Friend the Member for Stockton North (Alex Cunningham) said, Tees Valley is crying out for an additional road crossing over the Tees. Several plans have been prepared over the years, and I would urge the Minister to have his officials consider them.

In conclusion, Tees Valley has a proud history of major contribution to the economic vitality of this country, and not only does it continue to make that contribution, but the capacity for even greater achievement is immense. However, that vast potential can only be realised if the Government understand and respond in appropriate terms. In addition, I ask that the core cities realise that the northern powerhouse story is not just about creating a London of the north, but about building interconnected communities and economies that provide inclusive prosperity for all.

Small Business Saturday

Debate between Andy McDonald and Tom Blenkinsop

Thursday 4th December 2014 Westminster Hall

[Andy McDonald]

I would be delighted to accept that invitation. I pay tribute to those people, because we see it in our communities—parades of shops where people go the extra mile, like the small greengrocer who decides, “I will do some bespoke delivery services. I will ensure that the entire parade of shops can market itself and get materials out to people.” We see good instances of people’s innovative drive. Those people are absolutely vital to our communities. If they disappeared from our sub-regional shopping centres, we would be all the poorer for it. I pay tribute to them, because they are the lifeblood of our communities. Their businesses are the ones that define our local economies. The big multinational stores bring much to our high streets and shopping centres, but it is the smaller local businesses that mean so much to our communities. As the hon. Member for City of Chester pointed out, for each pound spent in small businesses, the vast majority of that pound—some 60p—circulates in the local economy. That should always be borne in mind.

What was self-evident last year was the huge number of young women who had started their own businesses, especially in the fashion street I mentioned, but in other places as well. I am delighted that my friend and colleague Louise Baldock, the prospective parliamentary candidate for Stockton South, will be with the Stockton business women’s forum providing encouragement, support and opportunities to local female entrepreneurs and business leaders. She has her own marketing consultancy offering services to a variety of businesses, and I look forward to welcoming her into the House in 2015, where I am sure her experience and expertise in business will make a significant contribution.

Without any shadow of a doubt, we want to praise our local small businesses, but we should also focus on the need to create the conditions that enable businesses to flourish. I want to mention the work of Middlesbrough council, which has invested in the regeneration of a redundant building in the heart of the town centre that was riddled with asbestos. It has also underwritten a project to create a new hotel with 138 bedrooms. The beauty of that project is that it will bring people to the town and encourage and stimulate business activity in its immediate vicinity. Those sorts of projects and initiatives cannot be ignored, and I pay tribute to the council.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

My hon. Friend is pointing out the good facts about Middlesbrough town centre and his constituency. In south Middlesbrough, we are equally reliant on the town centre being strong and providing employment. The civic pride that those small businesses provide and reflect in a town or area is equal in the smaller shopping precincts outside—in Hemlington, Marton, Coulby Newham, East Cleveland and Guisborough and places like that. The civic pride comes from those small businesses not only providing profit for themselves, but having pride in their local area and helping to maintain it. I pay tribute to Middlesbrough council for its free parking scheme, which it has been running for some time to provide small businesses with extra support, encouragement and footfall.

[Andy McDonald]

I entirely endorse what my hon. Friend says. That local initiative was important, because we all face the challenges of out-of-town shopping centres. We want to ensure that people have an equal opportunity to come into town centres to shop. He is absolutely right when he talks about the sense of place and identity and people supporting their sub-regional centres, which is vital.

In conclusion, I put on record my enthusiasm for small business Saturday. We got off to a good start last year, when the event added some £500 million of trading to GDP in 24 hours. I strongly suspect that with the momentum and capacity that has built up over the past 12 months, this year will be even better. I welcome the initiative and congratulate the hon. Member for City of Chester on securing the debate.

Taxis and Private Hire Vehicles

Debate between Andy McDonald and Tom Blenkinsop

Tuesday 29th April 2014 Westminster Hall

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

Thank you, Mr Chope, for the opportunity to speak in the debate. I congratulate my hon. Friend the Member for Easington (Grahame M. Morris) on securing it and on expounding a well worked-out argument, with which I am certain that most hon. Members in the Chamber agree. The Law Commission consultation is extensive, asking many questions and offering several sensible proposals. I will focus on my concerns about the accessibility of taxis and private hire vehicles for disabled people.

At the beginning of this year, Boro Taxis, which operates in the south Middlesbrough part of my constituency, hit the headlines in national and local media outlets following what many might see as exploitation of and disregard for disabled passengers. On 31 December 2013, Middlesbrough council’s licensing department was reported to have found that a number of private hire operators were charging disabled passengers—wheelchair users, in particular—up to twice the standard fare, with licensing officer Tim Hodgkinson arguing that this was a “widespread” practice and a “direct consequence” of passengers’ disability.

The council sent notices to the relevant operators advising them that it considered the practice to be in breach of their regulatory and statutory obligations. I am sure that most hon. Members find such flagrantly discriminatory practices repugnant. Disabled people throughout the country struggle to access transport as is, and to charge them extra because of their disability strikes me as totally wrong.

[Andy McDonald (Middlesbrough) (Lab)]

Does my hon. Friend agree that one of the fundamental principles underpinning the Equality Act 2010 is that disabled customers should not be treated on less favourable terms than able-bodied customers, and that surely extends to the price that fare-paying taxi customers are charged for the same journey? If that happens under the existing regulatory framework, what on earth will things look like if the deregulation programme goes ahead?

[Tom Blenkinsop]

I agree with my hon. Friend. Such circumstances are occurring now, while the trade is regulated, but my fear is that with further deregulation, instances such as the one I described will become increasingly common and harder for local authorities to monitor and to manage.

On 11 January 2014, somewhat astonishingly, the owner of Boro Taxis, Mr Bashir, admitted that his own company policy at the time was “morally totally wrong”. The firm, however, subsequently started to refuse to carry any wheelchair users, arguing that it would be “uneconomic” to do so. News of the Boro Taxis decision resulted in a ferocious backlash, and thousands of social media users, many of whom were likely customers, called for and pledged to a boycott of the firm.

The company quickly performed a welcome U-turn on the decision, given the ensuing negative publicity, but the issue continues to be one that users of the taxi service talk about and it is often referred to when the firm is discussed. That there was even such a proposal in the first place, however, I fear shows an unwelcome eagerness to discriminate and to treat disabled passengers as liabilities, rather than as valued customers. My main fear about the proposed deregulation of the trade is that such practices will become more common.

That is only one case, but it demonstrates a problem that I suspect, from communications from disabled people throughout the region, to be systemic. The Law Commission is therefore correct to identify equality and the needs of disabled passengers as an area in desperate need of legislative reform. In the consultation, disability groups highlighted the lack of training and disability awareness among taxi and private hire drivers, with issues such as an increased risk of injury due to wheelchairs not being properly secured, or a deaf passenger being unable able to communicate effectively with the driver. That is of course a two-way street: drivers may also injure themselves while helping disabled passengers in an inexpert fashion. Employers have to ensure that their drivers are trained and compensated properly for such training.

Some excellent training schemes are available to drivers on all aspects of dealing with people with a disability, such as loading and unloading wheelchair users, securing the wheelchair, or how to operate the swivel seat, the hearing loop and so on. More importantly, however, training will ensure that drivers and indeed taxi firm owners are aware that it is imperative to treat all people of differing abilities with dignity.

Various training schemes have been adopted by local authorities, but I firmly believe that national safety standards should be applied as a minimum and that this should include disability awareness training. On a business level, there should therefore be a fair playing field and a good standard of customer services maintained for all, especially disabled people, nationally. Furthermore, a statutory requirement should be placed upon licensing authorities to take steps to ensure taxi and private hire drivers’ compliance with their equalities obligations.

Middlesbrough council’s report into accessibility, which highlighted the issue of charging disabled passengers extra, was a welcome step. It will have made a real difference for disabled people in the town. That should be the practice nationwide, and it should be done on a regular and standardised basis. I am aware that some councils are hesitant to undertake monitoring and testing due to concerns about the safety and welfare of their employees, but a statutory requirement of that kind could be met through regular consultation with disabled passengers by licensing authorities, and through improved and easier reporting structures for recording incidents.

Cleveland Fire Authority

Debate between Andy McDonald and Tom Blenkinsop

Monday 13th May 2013 Commons Chamber

[Tom Blenkinsop]

Thank you very much.

Many operational issues arise from the proposals, relating to, for instance, local, regional and national resilience. I understand that the Fire Officers Association, the Chief Fire Officers Association and the Fire Brigades Union have raised them with officials in the Department for Communities and Local Government. I shall focus on four specific concerns. The first is the apparent lack of employee support for the proposals, and the uneasy lack of public awareness. The second is the sheer lack of transparency on the part of both the Government and the fire authority's senior officers. The third is the question of whether a spun-out brigade would raise additional revenue. If so—as a caveat—would such a spin-out have an adverse impact on existing local economy arrangements? Finally, and most importantly, I want to discuss the real risk that these proposals could lead to the privatisation of front-line fire services on Teesside.

I am a member of the Co-operative party, and a supporter of co-operatives and mutuals. I believe that if a mutual is to function effectively, it will require the support of its members, and that measures should not be forced on a work force. I am not at all convinced that that would be the case in Cleveland, given that the proposals appear to be very much management-driven. The only letters I have received from firefighters in my constituency about this matter strongly oppose the proposals. Indeed, at a single meeting attended by more than 250 firefighters, approximately half the uniformed service in Cleveland, there was unanimous opposition to them. The FBU, which represents some 85% of uniformed fire service workers, has identified a total lack of demand from staff for employee ownership in the fire sector. Instead, there has been “overt hostility”, except from a “smattering of principal managers”. Indeed, I doubt whether there is support even among principal managers, with 40 English chief fire officers and fire chief executives adding their names to the CFOA’s pre-consultation response, which highlighted major concerns with these proposals.

Even the language used by those promoting the model seems to have been redefined to address the level of employee support. According to the FBU, the model was originally promoted as a John Lewis-style, employee-owned mutual. However, that was only until it became apparent that employees did not want ownership, and nor would they be afforded shares as per that model. The title changed to an “employee-led” mutual, until the vast majority of employees indicated that they did not support the model, and that the only employees who did were a select group of senior managers. The latest title employed is a “locally led” mutual, which in effect acknowledges employee opposition and in doing so employs the term “mutual” as a misnomer.

Interestingly, one senior local manager has indicated that 51% work force support is the threshold required, although FBU legal advice suggests the fire authority has the ultimate say. It is difficult even to assess the extent to which any spun-out fire brigade would in fact be a mutual, with the authority’s senior officers showing a total disregard for transparency in these proposals. In the authority’s meetings, just about everything related to the proposals has been transacted under “confidential business”, making it impossible for me, my hon. Friends, the media or the public to scrutinise them. Although I believe that the authority will be putting out a business plan to public consultation in due course, I fear it may be presented as a fait accompli. It is indeed remarkable that the authority’s officers, prior to spending tens of thousands of pounds of taxpayers’ money, did not consult stakeholders to ascertain the appetite for these proposals or involve them in setting the terms of reference for the creation of any business plan.

The Minister may want to say that the authority’s integrated risk management planning has previously stated that it would explore alternative business models, which it did, but only in the most generic terms. What it has not done so far is consult in detail the people of Cleveland. It has not even indicated whether this would be subject to detailed consultation as part of the ongoing IRMP process.

The Government are doing all they can do to prevent us from analysing these proposals. The fire authority’s senior officers are also providing the bare minimum they can under freedom of information legislation. When my office requested copies of these briefings and their assessment of procurement options for spinning out the brigade, they declined to provide a copy. Amazingly, they argued that it was not in the public interest to do so.

[Andy McDonald (Middlesbrough) (Lab)]

I note my hon. Friend’s comments about the failure to publish the pre-consultation responses. Does he share my concern that the proposal fundamentally to change the basis upon which our fire and rescue service is delivered is being progressed beneath a veil of secrecy? If the scheme is such a good idea, should it not be subject to open and transparent scrutiny, with comprehensive information being shared among all interested parties?

[Tom Blenkinsop]

I absolutely agree with my hon. Friend, who himself has had to get FOIs and put those letters of information into the House of Commons Library, due to the lack of transparency.

One of the main genuine reasons why some members of the fire authority are even considering going down this route is their belief that it would mitigate some of the cuts, due to the spun-out body’s ability to bid for private contracts. Also, one of the chief fire officer’s stated aims is job creation. The areas the CFB is exploring are not related to core FRS activity; indeed, these are services currently provided by other sectors. The CFB proposals seek to replace these “others” by providing the same service with their existing work force, thus removing other workers from employment. That in no way can be described as job creation; in fact, it is the very opposite. However, nor do I believe that this would raise any further revenue.

--- Later in debate ---

[Andy McDonald]

rose—

[Tom Blenkinsop]

rose—

[Brandon Lewis]

I will give way first to the hon. Member for Middlesbrough (Andy McDonald).

Accident and Emergency Provision (North-East)

Debate between Andy McDonald and Tom Blenkinsop

Wednesday 13th February 2013 Westminster Hall

[Tom Blenkinsop]

I thank my hon. Friend for that point, which I will try to extrapolate from during the debate.

Paramedics say that delays prevent them from responding to calls, and fear that such delays could lead to a tragedy. As recently as last week, it was reported that the hospital was the second worst in the north-east for hospital handover delays of longer than two hours. Any hospital handover delay of more than two hours is classified as a serious incident by the NEAS. Of equal concern is the fact that in December, the hospital failed to meet national targets of responding to 75% of the most serious incidents—classified as red incidents—within eight minutes; its result was 69%.

Accident and emergency departments are the foremost example of NHS front-line services. If they appear to be failing, it is hard to deny that something is not right. It is not justifiable to have patients queue in a corridor, as Gladys Herbert had to. She described the situation:

“It’s as plain as the nose on my face there’s not enough beds and not enough staff in the hospital”.

That occurred at James Cook hospital, where there was a queue of up to 10 ambulances at one point. Frankly, that is an appalling risk to patient safety. The Prime Minister has personally promised to protect the NHS, but he is leaving patients such as Mrs Anderson and Mrs Herbert waiting longer in pain and discomfort.

[Andy McDonald (Middlesbrough) (Lab)]

I rise to support my hon. Friend, and I congratulate him on securing this debate. I entirely support what he is saying, because some weeks ago my own mother lay on a hospital trolley for five hours at James Cook hospital, waiting for admission to a ward. Ambulance staff had to remain with her until she was admitted before they could go on to their next task, which is a complete and utter mismatch of resources. I support my hon. Friend’s comments.

[Tom Blenkinsop]

My hon. Friend makes an excellent point. It is a sorry state of affairs, and personal experiences, that people from our area are reporting. The warning signs are there, and I believe front-line staff when they say, as has been reported:

“Somebody is going to die somewhere down the line and it could be the most vulnerable, children. Families of sick people arrive at hospitals and expect to find them in a bed, but they are still outside in an ambulance.”

In fact, a tragedy has already taken place. Last year, an ambulance crew brought a patient to the hospital, but he was not officially handed over to A and E staff. Before he could be seen by a nurse or doctor, he went into a fatal cardiac arrest. The patient, who has not been identified, died at James Cook university hospital, having waited for emergency treatment for more than two hours.

The delays are obviously stretching resources all over the place; for example, ambulances from as far away as Lancashire are being brought in to cover other emergencies. I fear that, with changes in NHS provision elsewhere in the north-east and north Yorkshire, James Cook hospital’s resources might become even more stretched. Surgeries’ general reduction in their late opening times for out-of-hours appointments in some areas across the north-east is putting further pressure on regional A and Es. For example, in County Durham, 69 GP surgeries offered late opening appointments in 2011, but in 2012 that was down to 61 surgeries, which is a 7.6% drop. In Newcastle, 33 GP surgeries offered late appointments in 2011, which dropped to 24 surgeries in 2012. In Hartlepool, 15 GP surgeries offered late appointment times in 2011, but that dropped to 10 in 2012, which is a 31.3% decrease. As the Minister will admit, triage is essential, and that is enormously helped by walk-in centres in my constituency, across Middlesbrough and in Redcar, especially as regards less affluent transient populations who are often not on GP registers.

As the Minister knows following the meeting he kindly agreed to have with me and a representative of the trust, urgent care provision in east Cleveland is facing particular problems. The trust claims to be taking steps to resolve the problems, but if the issues are not resolved, I fear that in the interim—and possibly in the longer term—a reduction in urgent care provision in east Cleveland might further increase the demand faced by James Cook hospital’s accident and emergency department, as patients search for alternative treatment. To an extent, we have already seen that with the draw-down in services at Guisborough general hospital’s minor injury unit.