Thomas Cook Customers
Debate between Barry Gardiner and Andrea Leadsom(5 years ago)
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Andrea Leadsom
I am glad that the hon. Gentleman recognises the Government’s efforts, particularly on the repatriation of customers stranded overseas and, of course, in the work, which I know through chairing the Government taskforce, to try to ensure that we get the best possible arrangements for Thomas Cook staff. He asks why the Government did not bail out Thomas Cook. He will be aware that, according to court reports, there was about £1.9 billion of debt on Thomas Cook’s balance sheet. It did approach Government looking for a loan facility of up to £250 million, but it is clear that, had the Government put that significant sum of taxpayers’ money into Thomas Cook, we would have ended up in the same position as we are in today. We would have had to repatriate those customers. We would have to have done exactly as we have done, but the taxpayer would have been £250 million worse off, so it was not an appropriate use of taxpayers’ money. It is very sad that Thomas Cook went bust, but it is not right that Government should just bail out every business. Businesses need to stand on their own two feet.
The hon. Gentleman made some very important points about regulation. I can tell him that I wrote to the Financial Reporting Council asking it to prioritise as a matter of urgency consideration of an investigation into the audit of Thomas Cook’s 2018 accounts, as well as the conduct of its directors. He asked why the Government did not foresee this.
It was never envisaged that a UK tour operator would fail to insure itself fully to cover claims for personal accident or fail to ensure that it had ring fenced the funds to meet those liabilities so that they were safe if the company got into difficulty. The company has a legal obligation to cover personal injury claims arising from package holidays abroad, and that is why I have asked the official receiver to investigate, in particular, this aspect of the conduct of Thomas Cook’s directors.
Andrea Leadsom
The hon. Gentleman asks from a sedentary position who the auditors were. They were EY, and they will be investigated by the official receiver.
The hon. Member for Sefton Central (Bill Esterson) asked how the Insolvency Service supported Thomas Cook employees. It has received over 8,000 claims for unpaid liabilities from former employees and has paid out over £41 million so far to claimants for arrears in pay, compensatory notice pay, holiday pay accrued, holiday pay not taken, notice worked not paid and redundancy pay. The Insolvency Service continues to work to offer, for example, the services of BUPA’s employee assistance programme and the Centre for Crisis Psychology to Thomas Cook employees as a particular request that came from the taskforce. The Government continue to do everything possible to support those affected and we are delighted that Hays has taken over the shops, providing jobs for well over 2,000 of those who lost their jobs under Thomas Cook.
Finally, I am very keen on the BEIS Committee’s report into audit. As I made clear when I appeared before it, I will bring forward fundamental changes to audit. I expect that to be in the first quarter of next year. I am very interested to read its report and, as I also made clear, I want to see Donald Brydon’s report, which I believe he expects to provide to Government by the end of this year.
International Climate Action
Debate between Barry Gardiner and Andrea Leadsom(5 years, 1 month ago)
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Barry Gardiner (Brent North) (Lab)
I thank the Secretary of State for advance sight of her statement.
The climate emergency is worse than we feared. Yesterday, the Intergovernmental Panel on Climate Change published its special report on oceans and the cryosphere, which set out the danger starkly. Sea levels threaten nearly 1 billion people who live in low-lying coastal regions, and tipping points in the permafrost could release hundreds of billions of tonnes of carbon. The report makes it clear, yet again, that we must do everything to reduce emissions as fast as possible to limit global warming to 1.5°, beyond which climate breakdown will be catastrophic.
The purpose of the UN climate action summit was to spur on greater climate ambition towards that aim, but none of the world’s large polluters met the challenge. China, India and the EU were all unable to announce tougher nationally determined contributions. Brazil and the USA refused even to turn up. Our country must step forward to fill that vacuum of political leadership on the world stage.
The UK’s commitments at the summit need close scrutiny. The new Ayrton fund that the Government have announced allocates £1 billion to help British scientists and innovators create new clean technology. That is great, but the funding has come from the aid budget. We should not siphon off overseas development assistance to spend on UK universities and firms. They should be funded by non-ODA finance, so will the Secretary of State explain why the funding diverts precious resources from mitigation in climate-vulnerable nations? If she claims that the money is classified as aid because it will help export clean technologies to the developing world, perhaps she can today commit to following Labour’s lead and pledge to provide to the citizens of the global south free or cheap access to green technologies that we develop here.
The Government’s pledge to double international climate finance, while welcome, also raises questions. Will the Secretary of State confirm that that money will be disbursed predominantly through grants rather than loans, which unfairly saddle the poorest nations with debt to pay the costs of a problem they did little to cause? Climate change is already wreaking hundreds of billions of dollars worth of damage on those communities. Will she commit to devoting any of the resources to covering loss and damage caused by climate disasters? After all, the Government perpetuate the fossil fuel economy for the poorest nations abroad, completely undermining our international climate finance. From 2013 to 2018, UK Export Finance gave £2.6 billion in export support to the energy sector, of which 96% went to fossil fuel projects, overwhelmingly in low and middle-income countries. Will she therefore commit today to ending taxpayer support for fossil fuels abroad, as so many other countries have done?
What we do abroad matters more than ever. The UK is hosting the UN climate conference, COP 26, in Glasgow next year. It is the most important climate summit since the Paris agreement. The right hon. Member for Devizes (Claire Perry) is president of COP 26, but COP presidents are normally Ministers in their Governments, and she has indicated her intention to stand down at the next general election. I therefore ask the Government what staffing resources the office of the COP president will be provided with; how much funding the Government intend to provide for COP 26 preparations; what regular reports the COP president will be able to give to Cabinet; and what objectives the COP president has been set by the Cabinet.
Those resources must be provided because at COP 26 we will need to use our diplomatic leverage to persuade other nations to bring forward much tougher NDCs. I am deeply concerned that staffing levels are inadequate. In 2009, under the Labour Government, the Foreign Office had an army of climate staff 277-strong. Seven subsequent years of austerity halved that. When the Prime Minister was Foreign Secretary, the number of officials working full-time on climate change fell to 55. Do the Government intend to restore the workforce to levels last seen a decade ago in recognition of the diplomatic resource that is now required to support the agenda of a UK-led COP 26?
The failures of the UN climate action summit raise the stakes of COP 26 so much higher. We cannot afford for the talks, or those at COP 25 in Chile, to stumble. The issue of climate breakdown is far greater than the party-political divides that afflict this Parliament, and I urge all Members to find common ground in the pursuit of a healthy and stable climate. In that spirit, I make an offer to the Secretary of State: I and my colleagues in the Labour party are fully committed to doing everything we can in a cross-party manner to ensure that COP 26 delivers the highest possible ambition.
Andrea Leadsom
I thank the hon. Gentleman. He and I worked together on energy matters some years ago and I welcome his willingness to work cross party on the issue, about which I know he cares a great deal and on which he is extremely knowledgeable. I also pay tribute to the right hon. Member for Doncaster North (Edward Miliband) for his excellent efforts on the Climate Change Act 2008, from which so much of the UK’s ambition in this space derives. I encourage the hon. Member for Brent North (Barry Gardiner) to work cross-party. I will be delighted to meet him and his colleagues to discuss how we can take the matter forward in a shared endeavour to tackle global climate change.
The hon. Gentleman asked some specific questions. I will try to answer them all, but if I cannot or if I miss some, I would be delighted to meet and tackle them further. He is right that the recent IPCC report provides the best available science on the wide range of impacts of climate change on the ocean and the cryosphere, and outlines potential measures for building resilience to those impacts. The Government welcome the report. We are very concerned about the impact of climate change on the oceans. Of course, as island nations, the United Kingdom, its overseas territories, our Commonwealth partners and close friends are especially dependent on a healthy and sustainably managed ocean, so we will be looking carefully at those recommendations.
The hon. Gentleman is right to ask about the tougher NDCs not being met at the climate summit, and he will be aware that those targets are supposed to be raised by February 2020. The UK is committed to doing that and we will, of course, be urging all others to raise their NDCs by next February.
On the Ayrton fund and its use for scientific work, the Government’s recently published green finance strategy committed to aligning all UK overseas development aid with the Paris agreement so that all our development finance is consistent with climate-resilient and low greenhouse gas development pathways. Such aid is, of course, essential because so much of the problem for vulnerable communities overseas is related to climate change, so those things are inextricably linked. Again, I am happy to speak to the hon. Gentleman more about that.
On grants versus loans, they will almost all be grants. Again, we can speak further about that.
On fossil fuel export finance, as the hon. Gentleman will know, the Committee on Climate Change has made it clear that, actually, achieving net zero requires a transition through lower-carbon fossil fuels, and I point again to the fact that, in just the past six years, we have gone from a 40% reliance on coal—the dirtiest fossil fuel—to only a 5% reliance today, which is quite an achievement. There is much more to be done, but we recognise there will be an ongoing need to use fossil fuels during the transition period.
On staffing resources for COP 26, the hon. Gentleman will be aware that the president is a prime ministerial appointment. I will be working closely with my right hon. Friend the Member for Devizes (Claire Perry), the COP president, to make sure that all the parliamentary updates will be made available on time. I will also be working closely cross-party. The UK has a huge ambition to decarbonise and to retain our global leadership in tackling global climate change.
Oral Answers to Questions
Debate between Barry Gardiner and Andrea Leadsom(8 years, 4 months ago)
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Andrea Leadsom
As I have just explained, we do not want to set a specific target. However, we are successfully providing support to organisations that then go on to help people to switch. I love the idea that if anybody listening to this really wants to help their grandparents, neighbour or whomever, who may not have the confidence to switch themselves, they could go and help them switch, possibly saving them several hundred pounds. Instead of setting targets and blaming people when they are not met, we need to persuade people of the advantages of switching.
Barry Gardiner (Brent North) (Lab)
I pay tribute to the right hon. Member for Hastings and Rye (Amber Rudd) and congratulate her on her appointment as Home Secretary. Under her charge, the Department of Energy and Climate Change played an important role in securing the Paris climate agreement, and she was a strong and enthusiastic champion for it. Only two weeks ago, some might have suspected that today she would be more likely to be standing at the Dispatch Box saying goodbye to me, but in this place we are beginning to learn to expect the unexpected. She was always courteous and often actually helpful in our exchanges, and we wish her well in her new role.
The CMA report states for the past five years the big energy companies have been overcharging customers by more than £4,657,000 every single day. Can the Minister name any other swindle of such enormous magnitude where the Government would simply say, “It is the customer’s fault. People should have shopped around and switched to another provider”?
Andrea Leadsom
I am grateful to the hon. Gentleman for his question, but I completely refute the suggestion that the Government are saying it is the customer’s fault. We have been clear that we support the CMA’s recommendations; some huge changes are being undertaken. We are rolling out smart meters; simpler tariff rules are coming in; we will enable newer suppliers to pitch cheaper deals to inactive consumers; and there will be improved accuracy of quotes on price comparison websites. A range of remedies are being undertaken, and in no sense is there inaction on the part of this Government.
Barry Gardiner
The hon. Lady said that she was going to be meeting the industry and the big six. The Government’s own figures state that in England 2.38 million households are living in fuel poverty. Her Department could today take action to force—not to talk to, but to force—energy companies to pass on changes in wholesale prices immediately to customers through their tariff structures. In that way, customers would benefit directly from the drop in wholesale prices. Why is she failing to do this?
Andrea Leadsom
I am afraid that just shows that the hon. Gentleman does not really understand how the energy market works. His party’s proposal to cap energy bills to consumers was a grave mistake, because we have seen wholesale prices come down and all consumers have benefited from that. I say again that this Government are absolutely committed to getting bills down for consumers at every opportunity, to implementing the CMA’s significant reforms and to looking at what else is available to be done.
Andrea Leadsom
The right hon. Gentleman will have to wait and see, but I can tell him that the commitment to our energy trilemma, smart meters and all our polices will remain as strong as ever.
Barry Gardiner (Brent North) (Lab)
Smart meters can reduce our energy usage, but there were 43,900 excess winter deaths last year and a “Panorama” investigation revealed that more than 9,000 of them were directly related to living in cold and poorly insulated homes. Will the Minister explain why there has been an 80% drop in the installation of major energy efficiency measures in British homes over the past four years, and will she agree to have urgent talks with Lord Adonis to ensure that energy efficiency is a top priority for the National Infrastructure Commission?
Andrea Leadsom
I agree with the hon. Gentleman that fuel poverty in this country has to be tackled, and that is an absolute priority for my Department. He may be aware that we have launched our consultation on the energy company obligation to ensure that we refocus it on the fuel-poor and do everything we can to ensure warmer homes.
Barry Gardiner (Brent North) (Lab)
Some 23,000 businesses in the UK have solar panels on their roofs. If proposals in the current review of business rates go ahead, instead of paying £8 per kW, those companies could end up paying between £43 and £61 from next April. Up until last week, the Minister’s Department did not even know about that. Will she find out why her officials have been sleeping on the job, and speak to Ministers in the Department for Communities and Local Government to get this mess sorted out?
Andrea Leadsom
I am not aware of any sleeping on the job. If the hon. Gentleman wishes me to liaise with DCLG I will look into that, but we are certainly not asleep on the job.
Draft Nuclear Industries Security (Amendment) Regulations 2016
Debate between Barry Gardiner and Andrea Leadsom(8 years, 4 months ago)
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Andrea Leadsom
I am grateful to all colleagues for their contributions. As they have all rightly pointed out, this is a matter of the utmost importance. Reassuring members of the public is absolutely vital, and I take this incredibly seriously.
It has been suggested—and rebutted—a number of times that nuclear materials would be strapped into a passenger seat. Can I reassure anybody listening that that could not be further from the truth? This is one of the most serious aspects of governance and security. The greatest precautions are taken.
All hon. Members were right to raise their concerns and I will try to whistle through the answers to all their questions. I think I have them all here and obviously I am happy to answer any further questions. Specifically, I can tell the hon. Member for Brent North that we brought forward the regulations as soon as we became aware not that there was a gap in what we were doing, but that there was the potential for a gap in the regulatory regime. There are no specific consequences set out in the convention for failing to comply fully by having these regulations, but we are committed to being in full compliance.
A number of Members asked whether we have ever moved civil nuclear material by air before. It has been moved once by air in the UK in 2010. Although there was no specific regulatory regime in place, the air movement in 2010 was conducted under the auspices of the Office for Nuclear Regulation, with all the appropriate safety and emergency response arrangements implemented. We recognise that a formal regulatory structure is necessary and that is exactly what we are legislating for.
Barry Gardiner
The hon. Lady has explained that this took place in 2010, and I am grateful for that clarification. The obvious question that follows is this: why has it taken five and a half years, given that she said the Government wanted to plug that gap as soon as they found out they were in breach? They must have known five and a half years ago that they were in breach. Again, the reassurances that the hon. Lady is giving us do not necessarily match up with the facts that she is telling us.
Andrea Leadsom
It was not understood at the time that a specific regulation—the actual writing of the rules—was required. Today’s debate is a further look at the rules. My Department has looked again at the legislation and concluded that, for completeness, the regulatory environment should be extended to include air transportation. However, I want to be very clear that the actual carrying out of the one movement in 2010 was done absolutely in accordance with all our regulatory and safety and security principles and supervised by the Office for Nuclear Regulation.
Barry Gardiner
Surely the point is that this statutory instrument, if passed, will give the authority the regulatory powers. The hon. Lady gives us a partial reassurance that it supervised what happened, but the point remains that it did not have regulatory powers at that stage, because that is what is being granted here today—if it is. Therefore, I am indeed surprised that it has taken five and a half years for the Government to wake up to the fact that they conducted this transportation of civil nuclear material and were known to have done so by an authority, but not by a competent authority. In knowing that it was not a competent authority, why were those regulations not then put in place?
Andrea Leadsom
Just to be very clear for the hon. Gentleman, at that time it was not believed that this regulation was identified as necessary. It is from a more recent look at the regulation that the Department has decided that this regulation should be put in place in order to be completely in line with the convention. It is not that there was some sweeping under the carpet or whatever; it was only identified more recently that this regulation should be put in place. That is what the Department has done: to act as quickly as possible to put that in place. At no time was there any sense, in reality or otherwise, that the one air movement was not carried out under the auspices, guidance and absolute control of the Office for Nuclear Regulation. The hon. Gentleman is talking about the interpretation of whether the regulations needed to be updated then, and the understanding was that they did not, but a more recent look has suggested that in fact it would be appropriate for the regulations to be updated.
Andrea Leadsom
I will give way one final time. I think I have answered the hon. Gentleman.
Barry Gardiner
It is indeed the case that the convention, when it entered into force in 1987, stipulated that it required security to be guaranteed for international transport, including air travel. Therefore, will the hon. Lady do two things? Will she enlighten us as to whether the movement that took place in 2010 was international travel and will she tell us—I think she owes us this at least—the date upon which it was realised that these regulations needed to be updated in this way? That is so that the Committee can make a judgment for itself as to whether the Government acted in a timely fashion.
Andrea Leadsom
In answer to the hon. Gentleman’s first point, I am afraid I will not give him the answer he seeks about where material was transported to, because that would not—
Andrea Leadsom
I will not answer the hon. Gentleman, because the fact is that we keep all issues of specific operations absolutely confidential.
Andrea Leadsom
No, I am sorry, I will not give way to the hon. Gentleman again. I have answered his questions absolutely openly and transparently. What I am saying to him is that it is not a matter of realising we were in breach; it is a matter of a more recent look that has decided that, for completeness, these regulations should be updated. He is trying to suggest that there has been some sort of coming to the game late, and that is not the case. This is a case of a more recent review of the regulations suggesting that this should be carried out for completeness. That is the end. That is all I am prepared to say on the matter. I will now move on to the other questions.
Andrea Leadsom
I think that I have been clear about that. The change is merely to ensure that any air movements, rare though they may be, come under the same official regulatory regime as road and rail transport. It is not a change; it is merely an update to ensure that the regulation is complete for all potential modes of transport. It is not changing any policy.
Andrea Leadsom
I have given way a lot. I would like to move on to my conclusion now.
Finally, the hon. Member for North Ayrshire and Arran asked why we move radioactive waste over long distances. I reassure her that the swap announced by the Prime Minister in March 2016 is not a movement of radioactive waste; it is a movement of high-value nuclear material, as I explained in my opening remarks, in exchange for medical isotopes, which are important right across Europe for use in things such as scanners and so on. We are not moving radioactive waste long distances.
In closing, it has been a useful discussion. I absolutely understand and endorse the concerns of all Members. They are quite right to raise questions about safety and so on. It is absolutely vital. As I said in my opening remarks, the effect of the amendment is to bring the transport of civil nuclear material by air within the same stringent regulatory framework for security as the transport of such material by land or sea. This means that the independent Office for Nuclear Regulation will have the same oversight and approval function in relation to the security of civil nuclear material transported by air as it has in relation to the transport of such material by land or sea.
The regulations will help ensure that the UK gives full effect to the convention on the physical protection of nuclear material, and they will allow us to consider all credible options when planning moves of nuclear material to ensure that we make the right decision in terms of safety and security. Nuclear material can be safely and securely transported by air, and it is right that our regulatory framework facilitates that. Any future movement of civil nuclear material by air will be subject to regulation and oversight by the independent nuclear regulator, the Office for Nuclear Regulation. I therefore commend the regulations to the Committee.
Question put.
Draft Energy Efficiency (Private Rented Property) (England and Wales) (Amendment) Regulations 2016
Debate between Barry Gardiner and Andrea Leadsom(8 years, 5 months ago)
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Andrea Leadsom
I am grateful to the hon. Gentleman, because I agree with a lot of what he says, particularly the vital importance of sorting out the lack of efficiency in the homes of some of the most vulnerable people, and some businesses that really struggle. It is, of course, also important in meeting our climate change goals that we address those issues.
I do not agree with the hon. Gentleman that we should force them to do it. As he points out, the 90%-plus of landlords who are good people trying to offer a good service and do the right thing will already do it. These regulations seek to address the fact that a minority does not want to do it to look after tenants and the most vulnerable. We are seeking to ensure that the regulations tackle those people. By giving a suitable amount of time, suitable notice, we can ensure that those non-domestic and domestic properties are improved.
Barry Gardiner
I do not wish to make this too much of an iterative process. Today we are looking at the exemptions. The hon. Lady and I agree that the vast majority of landlords will do the right thing. They want to do the right thing and provide a good service. We are looking at the exemptions that precisely that 11%—or 440,000 properties-worth of landlords—will seek to take advantage of. I do not see why we should not use wider powers. If we say, “Look, you cannot even rent your property if you do not get it up to standard,” why are we countenancing not using something such as an equity release scheme that says, “You need to be able to go down that track. There is value in the property.”? That can then be pursued.
Andrea Leadsom
Again, we are both on the same side. The whole point about delaying the effective start date of the exemptions register is precisely to look at the issues that the hon. Gentleman raises. We can argue about the green deal; that was before my time and he has made his points.
What we are dealing with today is the position where, if we introduce the exemptions register right now, landlords will be able to say that there are no means by which they can avoid spending money. Unless we delay the exemptions register from taking effect, we are creating an opportunity for landlords to take advantage of a policy interregnum. We are saying that we need to delay it so that we can consult landlords and tenants associations to get the right balance, so as to ensure that lots of people do not end up homeless because their landlord cannot or will not sort out the home, while at the same time we make it as difficult as possible for anybody to avoid bringing the quality and standard up to the right level.
I will make one final point. Since April 2010, Government policies have supported the insulation of 3.8 million lofts and 2.1 million cavity walls. We are absolutely clear that more than 1.2 million households have achieved lower bills due to energy efficiency improvements over the past five years. I do not accept that we have not done a good job. We are absolutely committed to energy efficiency and to resolving some of the terrible issues of fuel poverty.
The 2015 energy efficiency regulations are an important step towards providing domestic and business tenants with more comfortable properties and lower energy costs. Building on the new timeframe established by these amendments, we will work with our stakeholders to deliver the exemptions register and, by so doing, support landlords so that they can meet their obligations efficiently, and support enforcement authorities in their duty to ensure that that happens.
Question put and agreed to.