(6 years, 5 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
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My hon. Friend is absolutely right. Our right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith) pointed out earlier that companies invest here because it is a good place to invest. My hon. Friend’s constituency and the area around it have proved successful because there is a critical mass—a cluster—of related firms. It is important that we do everything we can to ensure that we maintain and add to the strength of that cluster, and I am absolutely determined to do so.
Ideology before jobs; doctrine before the economy. It used to be that the Conservatives were the party of business, but now they are the party of fears. When will the Government give clarity to business and hard-working families, heed warnings, and commit to staying in the single market and the customs union?
Day in, day out, I meet businesses and persuade them of the advantages of this country. I have to report that one of their concerns is the policies of the hon. Lady’s Front Benchers, which are a very significant deterrent to investment in this country.
(6 years, 5 months ago)
Commons ChamberI thank the hon. Gentleman for his comments, and I do apologise for speaking for some time. If he listens, perhaps he will get some of those pearls of wisdom in due course. The point I am making is that the Government need to recognise that businesses need support. Businesses themselves need to innovate and to ensure that they drive productivity increases in-house, but the Government need to show dedication to providing the tools required to increase fertility in the business environment. Frankly, that is not happening at the moment.
An essential element in improving retail productivity is innovation, which is the best means of raising wages and boosting the competitiveness of British industry. Innovation is required by businesses themselves, as I have just pointed out to the hon. Gentleman, but the Government must commit more money to research and development spending. They referred in their White Paper to increasing that spending to 2.4% of GDP, which is welcome, but if they are really going to support low productivity sectors such as retail and ensure that we can compete on the world stage, they need to increase it to at least 3%, as other world leaders such as South Korea and Japan have done.
I also welcome the Government’s recent establishment of a Retail Sector Council, but I have heard very little information about it since its establishment. Will the Secretary of State update the House on how often the council has met so far and whether there have been any discussions with the Government about what role the Government can play in boosting innovation in the sector? Labour has pledged to establish a catapult centre in relation to retail, to lead on technological, managerial and employee innovation. This is important because the Fabian Society recently reported that increasing managerial innovation and sharing best practice in retail can drive productivity by improving quality, as well as sale and business growth, and I call on the Government to examine Labour’s catapult centre proposals.
Infrastructure investment is also a critical part of boosting productivity in the sector. We must recognise that the future of our high streets depends on quality infrastructure, transport links, parking amenities and high-speed broadband, as well as on the local anchor institutions that draw people in, such as entertainment and leisure facilities and libraries. The sums announced in the White Paper are sadly negligible, and the TUC has stated that public investment will be increased to just 2.9% of GDP, while the average invested by other leading industrial nations in the OECD is 3.5%. Again, I hope that the Secretary of State has some earth-shattering updates for me today, to restore our faith in what the Economic Justice Commission recently dubbed
“the most regionally unequal country in the whole of Europe”
in terms of investment in our regions.
This brings me to the subject of retail workers, who are vital to the success of the sector. They provide positive customer experiences, and a lack of staff can have an adverse impact on customer service levels. The impact of job losses in retail should therefore not be understated. They have a profound impact on families and communities right across Britain. Retail has traditionally provided entry-level, part-time and flexible jobs for millions across the UK, and it has often provided livelihoods for people who have had to leave declining industries in particular regions.
One of my constituents who is directly affected by this has written to me. Her husband works in retail, and she is appalled by the contract changes being forced on people working in the sector, particularly in Sainsbury’s, where 9,000 long- standing and loyal staff will suffer a significant pay cut of up to £3,000 and see their paid breaks and premium pay scrapped.
My hon. Friend makes a vital point, and I shall come on to that shortly.
For some people, working in retail may be their only viable employment option. If a chain goes under and the local store closes or relocates out of the area, they will either have to travel further afield to find work or decide that the journey is simply not cost-effective and be forced to give up work altogether. According to a recent report by the Fabian Society, forecasts for the reduction in employment in the industry suggest that women, who make up the majority of the retail workforce, will sadly be the hardest hit. Workers in the retail sector are vulnerable, as my hon. Friend has just said. When costs need to be cut, workers are usually the first to face the squeeze. Only recently, Sainsbury’s announced sweeping changes to contracts for up to 130,000 staff in stores across the UK.
(6 years, 8 months ago)
Commons ChamberAs I explained, the software that is being developed now and will be in place shortly after the summer will ensure that that does not happen. The comparatively small number of SMETS 1 meters that do not operate as smart meters when suppliers change will suddenly become compliant, and they will all be able to speak to one another electronically, which is what we all want.
We should all be proud of the progress the UK has made in meeting its carbon reduction targets. The current statistics show that we have met our first budget, are on track to exceed our second and third budgets and are 97% and 95% of where we need to be to meet our fourth and fifth budgets—[Interruption.] I hear groaning, but I think those are decent numbers, given that we are 10 and 15 years away from achieving those budgets.
The lack of commitment, focus and ambition from this Tory Government mean that we are set to miss our legally binding carbon targets. Three easy wins could be to repeal the ban on onshore wind, prioritise energy efficiency measures and zero-carbon homes and commit to the Swansea bay tidal lagoon. When are this Government going to get their act together, demonstrate their commitment to future generations and get on with it?
I think the hon. Lady perhaps wrote that before hearing my answer. Let me share two facts with her. First, Britain has led the world in decarbonising our economy while growing it at the same time, not delivering carbon cuts with recessions, as other parties would like. Secondly, there are two countries in the world considered to be doing enough to meet even a 2° C target, and those are China and the UK. We have set out what has been described as the most ambitious set of policies and proposals ever seen from a Government in the clean growth strategy. We are bringing that forward, and it would be nice to feel we had a cross-party consensus on doing something that is so vital for both this country’s future and the future of the world.
(6 years, 11 months ago)
Commons ChamberWe absolutely will. While the move towards clean growth is clear, the White Paper sets out that oil and gas remain one of the economy’s most productive sectors and refers to the intelligent use of its assets and expertise. I thank my hon. Friend for joining me on a visit to Aberdeen; we saw the prospects for the green economy, where sweating the assets is already leading to innovation.
Unlike Wales’ ambitious targets for moving towards low carbon generation in onshore wind, the lack of ambition shown by the UK Government is startling. Will the Minister confirm whether Welsh wind projects will be eligible in any future contract for difference pot 1 auction, which he has already confirmed for projects in Scotland?
The hon. Lady should be aware that this country is leading the world in the development of green energy.
(6 years, 12 months ago)
Commons ChamberThis was not a serious Budget—and I am not referring to the bad jokes that littered the Chancellor’s speech and which were as weak as the Tory Government of the man who delivered them. Last Wednesday, my Opposition colleagues and I waited desperately for an hour to hear something that would help the people we represent to live a decent life. Instead, we got a Budget that includes more spending on an ultra-hard Brexit to appease the Conservative party, which will harm the country, than there was spending on the NHS. The improvements to universal credit were welcome, but they are too little, too late. The relief from the reduction in the six-week wait is only minimal when compared with the thousands of pounds that many of the families dependent on benefits are set to lose.
The Government’s worst legacy by far must be the public sector pay cap. Cardiff North has 19,000 public sector workers—the highest proportion in Wales—and they really hoped that the Budget would end the disgraceful pay freeze that has seen nurses using food banks and care workers struggling to make ends meet. One thing we have learned to appreciate since the spring Budget is how desperately dependent we are on public services. The Chancellor’s Budget leaves public sector workers worse off than they were seven years ago. Austerity is not a policy choice: it is political.
Yesterday, the Secretary of State for Business, Energy and Industrial Strategy launched his industrial strategy to address weaknesses in the economy. The UK’s economy has been systematically underperforming on almost every key measure. Our productivity is down and we have the most geographically unbalanced economy in Europe. Part of the boost to productivity should be investment in renewables, which are set to be the backbone of our modern energy system. The plummeting cost of wind power means that onshore and offshore wind can help to improve the UK’s competitiveness and productivity. It is therefore hugely disappointing that the strategy does not set out how we can continue to support onshore wind, which is the cheapest of the new generation of energy production. We have yet to see an announcement on the Swansea tidal lagoon. That was a missed opportunity to invest in infrastructure for the future. With a cap on funding for renewables until 2025, the Government have shown they have a long way to go before they can deliver on clean growth.
Finally, I am frustrated about and fearful of the prospect of the financial impact of a shambolic Tory Brexit on the British and Welsh economy. The Budget includes £1 billion of additional capital funding for Wales, but more than half that must be repaid. The Budget is a missed opportunity. We needed to see one that truly transformed the economy, not more of the same.
(7 years, 1 month ago)
Commons ChamberI thank my hon. Friend for highlighting the fact that there are many new initiatives, particularly to do with the energy efficiency angle—especially business energy efficiency. Yes, there is the extension for ECO. Not only does that support a brilliant supply chain, but it helps the many people who struggle with fuel poverty. We are keen to use the money effectively to help upgrade more than 1 million homes and extend support for home energy efficiency until 2028 at the current level of ECO funding.
This long-awaited strategy sets out a good story, and I welcome the sentiment that it contains. In reality, however, it makes a mockery of clean growth and does not give any certainty for business. The ability to compete in global low-carbon markets and meet our needs from clean energy is the foundation of a prosperous low-carbon economy.
At the moment, the Government are failing to give a clear steer on emissions targets, have given no answers on the Swansea Bay tidal lagoon and are not investing in any meaningful way in renewable energy or energy efficiency. Will the Minister seek to introduce legally binding targets for renewable energy, as the Welsh Labour Government announced they would earlier this month? Successful markets need a clear strategic vision and leadership, and an effective regulatory regime. This Conservative Government have neither.
It is a shame; I can only assume that the hon. Lady has not read the report. I genuinely think that for the first time we have the clearest set of cross-Government ambitions, policies, initiatives and funding—[Interruption.] The hon. Lady should have come to the launch, where the chief executive of Siemens talked about how businesses such as his completely welcomed and supported the strategy and were investing in their supply chains on the back of it.
We have an effective, legally binding regime that operates right across the UK. It is called the Climate Change Act, introduced with cross-party support in 2008. We have to produce our carbon targets. I have set out today why I think we are on a good trajectory towards them. However, I fear that the hon. Lady wants to be one of those “command and control” Marxists who wants to predict every single thing that happens in the economy at all times. That is not how innovation works. We set out a framework for investment. We try not to pick technologies; we want the lowest carbon, the lowest cost and the most innovation. We then work with the private sector to create the most innovative ecosystems, so that we can capture the opportunities. I will be very happy to have a cup of coffee with the hon. Lady and give her a slight cheering up. There is a lot of good stuff in the report, and she should be supporting it.
(7 years, 4 months ago)
Commons ChamberI am grateful for the opportunity to raise the issue of the closure of the Tesco customer operations centre in my constituency of Cardiff North with the loss of up to 1,100 jobs. If you will allow me, Madam Deputy Speaker, I shall do three things: first, highlight the way in which Tesco has acted; secondly, describe the human impact of these actions; and finally, explore how we respond to these things and the next steps.
On Wednesday 21 June, without any warning or consultation with either the Welsh or the UK Governments, Tesco announced it would be closing its customer contact centre in Cardiff in February next year, leading to the loss of up to 1,100 jobs, with the possible relocation of 150 of those jobs to Dundee. The centre deals with inquiries from consumers all over the UK, including those made via social media. It has a highly motivated and skilled workforce who take great pride in their work.
On the morning of 21 June, staff went to work as usual. On arrival, some were told by visiting management to clear the top floor and find somewhere else in the building to work. An events management company had been brought in to install a PA system. Staff then received an email inviting them to a meeting on the top floor at 1 pm. To those crowded into that room on the top floor, an official statement was read out telling them they would all be made redundant. There was no opportunity for questions. This shock announcement has inevitably had a huge impact on the dedicated staff, some of whom have worked there for over 20 years. In some cases, two or three members of the same family work there.
Does my hon. Friend share my disgust at the fact that many of the employees, including constituents of mine in Caerphilly, only learned about the closure on social media?
Yes. Some staff members who were not there that day only actually found out that they had lost their jobs through social media. There also seems to have been no formal means of contacting them or managing their concerns.
Following the announcement, I met Tesco executives to press them on their reasons for the job losses and why jobs in Dundee have seemingly been prioritised over jobs in Cardiff. We were told that there is more space in Dundee and that the company had already taken the decision to have one site where customer relations staff would be based. They were unable to provide any reason why they had not entered into discussions with either the UK Government or the Welsh Government.
I congratulate my hon. Friend on securing this debate. I, too, have constituents who have been affected by this absolutely absurd decision. Does she agree that it is completely bizarre for Tesco to not provide those reasons, particularly when Cardiff has gained a reputation as an excellent place for customer care centres? Many different companies choose Cardiff because of the excellent skilled workforce there.
I absolutely agree with my hon. Friend. I think that these job losses are the latest in a string of cuts implemented as part of the so-called turnaround plan by Dave Lewis, the group chief executive, who joined Tesco in autumn 2015.
As my hon. Friend knows, job losses on this scale will be felt keenly not just in Cardiff but across south Wales. A constituent of mine who works for Tesco contacted me, saying:
“I believe that what they (Tesco) have told the press is incorrect as I know they are outsourcing parts of their business to a site in Bury.”
Does my hon. Friend agree that the company should be questioned on that, too?
I absolutely agree with my hon. Friend that it should be questioned on that, and I will address the issue later in my speech.
In his first year in charge as the group chief executive, Mr Lewis axed nearly 5,000 head office staff and UK store management jobs, as well as more than 4,000 roles overseas and at the group’s banking division. More than 2,500 jobs were lost with the closure of 48 so-called underperforming Tesco stores, and 3,000 jobs were put at risk in April when the chain cut night shifts for shelf stackers in some of its biggest supermarkets.
I am grateful to my hon. Friend and parliamentary neighbour for securing this debate. According to last year’s Tesco accounts, the chief executive, Dave Lewis, was given a £4.15 million pay package, of which £2.4 million was a bonus. Does my hon. Friend agree that he could have taken a little bit less and the company could have kept a few more of those jobs? Every little helps.
I think it is absolutely the case that the company is prioritising management over the hard-working workforce, who are highly skilled and motivated.
I suspect that nearly every Member of this House has a Tesco store in their constituency. It is one of the UK’s biggest and most recognisable brands, with a loyal customer base.
I commend the hon. Lady for bringing this debate to the House. Does she agree that there is something obscene about the loss of 1,100 jobs at the customer contact centre at Tesco House in Cardiff? On behalf of Tesco employees in my constituency, I register my support for her campaign. Does she agree that we should ask the chief executive officer of Tesco to reconsider his decision immediately?
I thank the hon. Gentleman for his support.
In his desire to achieve more savings, Mr Lewis needs to understand that he has an absolute responsibility to treat his employees fairly and with respect. He owes them a duty of care and he should listen to what his staff are saying.
In the days following the announcement, I went to the customer centre to meet the staff affected, along with my hon. Friend the Member for Cardiff Central (Jo Stevens) and my local Assembly Member, Julie Morgan. The staff are utterly devastated and feel let down by a company to which some have dedicated their working lives. One staff member told me:
“We had felt like we were part of one big family and took pride in coming to work. This feels like being dumped like an old pair of shoes after being promised a secure future. Now we are feeling exploited and used.”
Some of the worst-affected households are those with multiple members losing their jobs. Some families will lose two, three or even four wages from their budgets. One couple in their late 20s who had their first child less than a year ago are both set to lose their jobs.
Following the coalition Government’s halving of the statutory consultation period from 90 days to just 45 days, the employees whose whole lives will be devastated by these redundancies have just 45 days to find another job in a small area where there will be more than 1,000 redundancies. Does my hon. Friend agree that 45 days is far too short a period for employees to find alternative jobs and for companies to look at straightforward alternative business proposals to fulfil their duty to consult properly with staff and look at real alternatives to keep those jobs in place?
I absolutely agree with my hon. Friend about that, which is precisely why I brought this debate to the House.
One worker told me:
“We are absolutely devastated as my fiancée is currently on maternity leave with the birth of our baby daughter. We have also planned to get married next year so this news has come at the worst possible time for us in our lives and we are very worried for the future.”
Another staff member contacted me on Facebook. He said:
“It’s been stressful for a lot of us, some more than others. I’ve been made aware that there are options to apply for a store role or to move to the Tesco site up Dundee. This is not an option as it’d be too much of a drastic life change and there are very few roles considering the number of employees in our centre. The announcement has also left me wondering, if I moved to another role in the business, would I be any less vulnerable to another redundancy announcement in future.”
He went on:
“A lot of my colleagues whose time at Tesco exceed 10 years are choosing to stay until the end for their redundancy package as they’ll get a significantly larger amount but for many employees like myself who have been with Tesco just a little over a year, we see no incentive in staying as I don’t feel valued as an employee anymore and barely feel like I’m part of the place now.
The morale has dropped rapidly on my work floor whereas it felt like a small community only a year back, and now it feels very empty and makes me feel quite down whenever I’m in the environment. I used to love coming to work but now the hours feel longer and it just feels like it’s getting in the way of the hours I could be using to find progression in life.”
Those are just a few of the many messages I have had from distraught members of staff who have been affected.
What is going to happen now? The Welsh Government’s Cabinet Secretary for Economy and Infrastructure, Ken Skates, has announced the formation of a taskforce to find new employment opportunities for the staff. That is a welcome development. It will pool the knowledge and resources of key partners to ensure that the 1,100 people currently working at the centre are provided with the very best support in seeking further employment, as well as welfare and emotional support. Following my question to the Leader of the House on 22 June, I ask the Minister before us to urge the Department for Work and Pensions to work with the Welsh Government and dispatch its emergency taskforce to help ensure that the staff who are affected are fully supported.
While that work goes on, along with the Union of Shop, Distributive and Allied Workers, I will be making the case for Tesco to rethink its plans and for better engagement with its workforce. If there is to be any outsourcing of jobs, at the very least I would like an assurance from Tesco and the management that they will go to companies based in south Wales.
My hon. Friend is being very generous with her time. When she and I met staff at Tesco, the point about outsourcing was raised. We heard that work had been outsourced for the past 12 months and that when people left Tesco House, they were not being replaced. Does she share my concern about the lack of transparency from Tesco management about where the work is going, because the number of jobs being lost and the jobs being offered in Dundee simply do not add up?
I agree with my hon. Friend: there has been no transparency on this issue, and that is what I would like to see. I call on the Minister to request it.
I reiterate my deep disappointment at the way Tesco has handled the situation. I struggle to understand its rationale for losing such a highly dedicated workforce. As a company that supposedly values its workers, it should not want to lose decades of experience and the specialist skills staff have acquired. We all know Tesco, we have all shopped there. It has a loyal customer base in Cardiff and its staff deserve more and better than this. I hope that the Minister will join me in condemning this behaviour and work with me and alongside the Welsh Government in making the case to Tesco to rethink its plans and offer better engagement and more transparency to the workforce.
Let me reassure the hon. Lady. The fact that this is the worst case for 10 years points to the buoyancy of the economy in Wales. That part of the country is doing well. When I visited it just two months ago, I was very impressed by the dynamism that I found in Cardiff and the surrounding area. I do not share the hon. Lady’s pessimism about the opportunities for people. However, as I said earlier, I certainly appreciate that it is not a simple case of getting another job and all is well, particularly when a whole community is affected as this community has been.
Let me say something about the legislation. Collective redundancy legislation strikes a balance between the needs of the business and the needs of employees. It applies when 20 or more employees are made redundant at one establishment within 90 days. In those circumstances, employers have a statutory duty to consult employees’ representatives about the proposed redundancies. The consultation must be with the employees’ trade union representatives, or with other elected employee representatives when there is no recognised trade union. It must be completed before any dismissal notices can take effect, and it must be undertaken with a view to reaching agreement, although sometimes—I recognise this—agreement may not be possible. It must include consideration of ways of avoiding redundancies in the first place, reducing the number of people to be made redundant, and importantly, mitigating the effect of the dismissals. Employers also have a number of obligations, including a requirement to notify the Secretary of State for Business, Energy and Industrial Strategy of the proposed collective redundancies before the start of the statutory consultation.
Redundancy can be—and usually is—a stressful time for those affected. I want to highlight the service offered by the ACAS helpline, which can advise people on their particular circumstances. ACAS has also produced a guide for employers on handling large-scale redundancies such as those that we are discussing this evening.
Let me now say something about the support that is available to employees who are made redundant. Throughout the redundancy process, employers still have obligations to their employees, and should be thinking about the help that they can offer at all times. Employees with at least two years’ service who have been given notice of redundancy have a right to reasonable time off so that they can look for a new job or arrange training. The Department for Work and Pensions and the local Jobcentre Plus have already been in touch with Tesco to offer their support.
I recommend that, in the case of redundancies, employers should always contact Jobcentre Plus as soon as possible to discuss appropriate support that can be delivered locally. All decisions about appropriate support are made locally, because a decision based on a specific redundancy situation, an individual’s own transferable skills and experience, and the availability of jobs in the local area is far more likely to be the right decision.
Does the Minister agree that these are not normal redundancy circumstances? Does she agree that the DWP should dispatch the emergency taskforce to help those affected to seek new employment, and work with the Welsh Government as well?
I very much agree with what is behind the hon. Lady’s intervention. My right hon. Friend the Secretary of State for Wales is taking that forward, and has already met the chief executive. The south-east Wales district Jobcentre Plus will deploy its redundancy response action plan, which includes working with partner organisations such as Careers Wales, the Welsh Government, the National Employer Partnership Team, the local authority, DWP pensions and Tesco trade unions to deliver a bespoke package of support, which I think is what the hon. Lady is after. The typical support provided for individuals is matching people to local known job vacancies and/or helping to construct or improve CVs. Where there is scope to do so, support can be delivered on a group basis, for example by bringing redundant workers and employers together at a jobs fair as well as at group sessions and one-to-ones on site, to provide support and information on benefits, pensions, support from DWP and Careers Wales. Matching current vacancies to the skills and requirements of the affected individuals is a key part of the service Jobcentre Plus provides. This has been successful in many other redundancy situations.
Tesco has assured Government that its first priority is to do everything it can to support its colleagues in Cardiff, including helping them to find roles within Tesco, working with Jobcentre Plus, USDAW and the Welsh Government, and connecting with other local employers who might have vacancies.
I am very sympathetic to that point; that seems to add insult to injury. My right hon. Friend the Secretary of State for Wales has raised that issue with the chief executive of Tesco, and I am sure he will raise it again thanks to the hon. Lady’s intervention.
The Welsh Government have already established a taskforce, which stands ready to support the Cardiff workers once the outcome of the consultation is known. It is being led by Ken Skates; Fiona Jones, DWP’s director for Wales work services, is a member of the taskforce, too. Tesco has confirmed that it will also work closely with the Welsh Government on its redundancy action scheme—ReAct—a programme that funds training for people living in Wales who are facing redundancy. Tesco will be engaging with the Welsh Contact Centre Forum and will be keen to reach out to other employers who might have vacancies. A significant number of businesses have already approached both Tesco and the Welsh Government, but the current focus has to be on the ongoing consultation process before any detailed discussions can progress with other companies. At present, Tesco is not able to provide specific details on the package available to staff, as this will be considered as part of the ongoing 45-day consultation.
In conclusion, I reiterate that retail is a vital sector for the UK economy and we are committed to it.
Will the Minister join the Leader of the House in condemning the way in which Tesco made this announcement? When I asked the Leader of the House about this shortly after the announcement, she was appalled at the way things had been done.
I do not think I would go as far as to condemn that, because I believe Tesco made every effort to inform people on a one-to-one basis. Some people were away. [Interruption.] If I am wrong about that, I apologise, but the information I have had is that Tesco did make every effort. Some people were away; it did contact them. It is appalling that some people found out about this on social media—and the situation in the Chamber lighting-wise has slightly thrown me off.
I know that the fact that retail is highly competitive and buoyant will be of little comfort to Tesco workers at the Cardiff customer engagement centre who are facing an uncertain future. Every collective redundancy situation involves individuals, and their needs need to be managed carefully. It is vital that individual workers receive the information and support that they need, as and when they need it. This Government and the Assembly in Wales stand ready to provide every possible support to the hon. Lady’s constituents and those of other Members representing the Cardiff area. I wish them all the very best in their search for new employment if the redundancies go ahead.