(1 year, 5 months ago)
Commons ChamberThe right hon. Lady is absolutely right. It is taking too long for the increases in interest rates to be passed on to savers, particularly with instant access accounts. The rates are more frequently being passed on to those with fixed-term and notice accounts. She is right that there is an issue there, which I raised in no uncertain terms with the banks when I met them. I am working on a solution, because it is an issue that needs resolving.
My right hon. Friend will know that increasing liquidity in the housing market will give homeowners more options and choices. Will he look at reducing the burden of stamp duty to help both current and future homeowners?
I thank my hon. Friend for his comment. The level of stamp duty is, as with all taxation measures, kept under review. We make decisions at the time of fiscal events, whether autumn statements or spring Budgets, and we will continue to do that.
(2 years, 12 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I beg to move,
That this House has considered the cider industry and duty changes.
I draw the House’s attention to my entry in the Register of Members’ Financial Interests.
I welcome the progress the Treasury is making on cider and alcohol duty. It will be helpful to hear what the Minister thinks the direction of travel is for the industry, and how the Treasury is helping. The announcements by the Chancellor in his autumn Budget on alcohol duty were largely welcome. His five-point plan will simplify the tax brackets. It is supposed to come at an overall cost to the Treasury of £555 million by 2027. The number of bands at which different duties are levied will be cut from 15 to six. That ambition is tremendous. However, I hope the debate will be helpful in ironing out some of the issues with the proposed changes.
I want to draw attention to the traditional small-scale cider makers, who make up roughly 80% of the country’s cider makers. I also wish to draw the House’s attention to the announcements on flavoured cider. My constituency of North Herefordshire is home to many small-scale and large-scale cider makers. The cider orchards of Herefordshire are said to produce more than half the cider consumed in the UK.
The call for evidence document in the Government’s alcohol duty review consultation sets out three objectives:
“a) Simplifying the current complicated system;
b) Making the basis of alcohol taxation more economically rational, with fewer distortions and arbitrary distinctions; and,
c) Reducing the administrative burden on producers when paying duty and complying with excise requirements.”
Alcohol duty was harmonised under EU law, but now we have left the EU and its onerous legislature, it is right that we consider how the duty system works. The stated aims from the Treasury are welcome, but why are the Budget announcements made only to have a consultation occur afterwards? Should it not be the other way around? On a positive note, I can report that the consultation has been managed in a way that cider manufacturers found very helpful. However, one cannot help but feel that all this could have been ironed out before the Chancellor rose to his feet.
UK cider producers sell to more than 50 countries over five continents, and that trade is worth more than £100 million a year to the economy. I hope that the duty reforms will encourage cider producers to go beyond the hobby level to become sustainable businesses and increase those figures.
What the Chancellor announced in relation to alcohol duty is welcome. However, looking a little further, there are some discrepancies, and I hope the Department will not mind me bringing them to its attention. In his Budget statement, the Chancellor proclaimed that this would be the
“biggest cut to fruit ciders in a generation.”
Fruit cider is currently treated as made-wine for excise duty purposes, and it is taxed at two and a quarter times the rate of apple cider. The proposed tweaks in the duty rate leave made-wine with a proposed excise duty two and a half times the duty rate for packaged ciders, and more than twice that of keg ciders. That is probably because flavoured ciders have a 22.8% market share of the UK’s £2.1 billion cider industry. Helpfully, the flavoured cider market is established at 4% ABV, or alcohol by volume. They are some of the lowest-alcohol ciders on the market—obviously, excluding the no and low-alcohol ciders—but they are charged a premium in excise duty.
Under current proposals, the duty on 4% packaged fruit cider bought from a shop will change from £91.68 per hectolitre to £90 per hectolitre. To put that in context, the duty on a hectolitre of apple-flavoured cider will move to just over £35. That is a difference of £55 per hectolitre. The higher rate of duty for fruit cider was introduced to protect apple cider made using British apples. However, many fruit ciders now simply have an apple cider base, made with British apples, with flavourings or colour added. The excise duty rates seem to be hampering innovation and growth in this sector—a sector that can offer much safer, lower-ABV ciders. Producers such as the ones in North Herefordshire want to increase innovation and diversity across the cider category.
At present, flavoured cider has not been included in the Government’s consultation. I hope that the Minister will agree that it can be added, as I am sure many producers would like to have their say. Helpfully, the anomaly was recognised in the Chancellor’s statement. Paragraph 2.11 of the consultation, under the heading “Anomalous and arbitrary”, notes:
“Larger cider makers felt that the duty differential between flavoured and non-flavoured cider impeded innovation in the market.”
However, paragraph 2.12 suggests that craft and small cider makers are supportive of a higher rate of duty for flavoured ciders. That is not right; in my frequent discussions with producers, I get a very different picture.
Fruit ciders, rosé ciders, mulled ciders, cider with honey, cider and elderflower and spiced cider are all treated as made-wine. Such ciders have been made for centuries, and there are records of them going back more than 400 hundred years. They are firmly part of the traditions of cider making. Many small and craft cider producers make such variants using traditional methods, and the market for them is increasing. Each household is reported to buy fruit cider an average of six and a half times a year.
The demand is also there to support local, small-scale producers, many of whom would like to tap into the fruit cider sector. Those small and craft cider producers still use traditional fermentation processes to create fruit cider, and then work with other local fruits to produce their local version of fruit cider. What does stifle innovation is the fact that when making cider through the natural process, rarely does a product come in at under 6.5% ABV. Fair enough—that changes slightly each year, depending on how much sugar is in the apple crop. Because of the way the fermentation process works, unless the cider is diluted, it will probably come out at above 6.5% ABV. My own cider, when I made it myself, was above 7%. The benchmark ABV is 4.6%, so someone wishing to make a fruit cider using traditional methods, without dilution, is likely to be hit with an excise rate too high to justify that diversification. Traditional cider makers using natural fermentation from apple juice could see upwards of a 40% increase in duty, and it could be even higher if they venture into fruit versions.
The proposed changes to flavoured ciders will only truly benefit the makers of large, mass-produced flavoured cider in the established 4% ABV market, selling in 50-litre kegs. That is Kopparberg, which is Swedish; Heineken, which is Dutch; and Aston Manor, which is French. Those manufacturers, with their foreign-owned parent companies, are destined to benefit the most from the excise duties at their current levels—the same duties that are meant to be championing the local little guy.
Would the Treasury not see benefits in bringing fruit cider in line with the apple cider rate, which is better known as notice 162? If the fruit cider market is opened up and brought into line with its apple-only equivalent, growth will occur. Flavoured ciders lead many global cider markets, so encouraging the growth of lower-ABV flavoured ciders can help the rejuvenate the industry and expand our global reach in the sector.
The changes to alcohol duty rightly address concerns about problem drinking. A recent survey asked 20,000 people about alcohol consumption in 2019 and 2020, and it found a spike in high-risk drinking following lockdown, from around 25% to 38%. According to the World Health Organisation, alcohol consumption contributes to 3 million deaths each year globally.
It is no secret that white ciders—the type sold in 2.5 litre bottles at a cheap price—have exploited the current duty system. A report by the charity Thames Reach found that of the 8,096 people found sleeping rough by outreach teams in the capital, 43% had an alcohol problem. Of those, an astounding 98% are primarily drinking high-strength cider and super-strength beers. Popular brands include the 7.5% Ace cider, which comes in a three-litre bottle and contains 24 units of alcohol, but retails at only £3.99. This is clearly wrong and dangerous, so I understand the Government's commitment to increasing the duty on this type of cider.
However, there are concerns that such products are conflated with those made by the producers I am championing today. I will quote a company in my constituency called Little Pomona, which has visits to its cidery during the tourist season:
“With over 1,000 visitors over the last year, we have never had any instances of over-drinking. We don't serve our cider in pints. Purely as thirds, halves of pints, and wine glass measures. Our ciders are served in restaurants, from modest bistros to Michelin starred establishments”.
The point is that the consumer who indulges in a craft, artisanal, small-batch cider is different from the consumer who buys a £4 bottle of white cider. I hope that my hon. Friend the Minister can point the industry to how it can best maximise its potential safely, and tell us how the Government see the industry progressing.
I declare my interest as the chairman of the all-party parliamentary cider group, and I support my hon. Friend in his argument. I know that the Minister takes a keen interest in this issue, and my hon. Friend is absolutely right that cider is an incredible, world-beating British product. He has laid the case out beautifully. Does the Minister agree that we, as a Parliament and as a Government, need to do much more to highlight the benefits of responsible cider drinking? We have Glastonbury in Somerset, and we do not get drunks on Glastonbury. It is not cider that causes the problem; it may be other things, but it is not cider.
I will have to take my hon. Friend’s expertise on that matter at face value, but I agree with all the good things he said and I thank him for his work as the chairman of the all-party group.
The cider industry in this country is unique. Family-owned companies such as Westons in Much Marcle, which has 240 employees, contribute so much more than just delicious cider from local apples. People such as Helen Thomas, to name just one of many, ensure that my constituency leads the way. That spirit of innovation and history needs to expand as we forge new relationships with nations around the world. Fruit ciders produced by a craft cider maker in North Herefordshire should be in stock behind bars from Armenia to Zimbabwe, in a truly global British fashion.
From my discussions with relevant local stakeholders in the cider industry, I know that most of their concerns could be addressed via the consultation. I hope that any additional points are taken as constructive and that the Minister will be able to provide reassurance to cider makers in Herefordshire, and indeed nationwide, that their historic and significant craft will be nurtured and given the boost that the recent announcements have set out to achieve.
(5 years, 4 months ago)
Commons ChamberI thank my right hon. Friend for his intervention, and for his concern about horse tethering. I share that concern, which is why we recently had a roundtable meeting with the relevant welfare groups and authorities to discuss how we could achieve best practice in this regard. I think that there have been some case studies—particularly in the Swansea area, if I remember correctly—and that real action has been taken. We need to spread that best practice far and wide.
It is a pleasure to introduce this important Bill. We committed ourselves in September 2017 to increasing maximum sentences for animal cruelty offences, and in December 2017 we published our draft Bill for pre-legislative scrutiny. That followed the introduction of the Animal Fighting (Sentencing) Bill in July 2016 by my hon. Friend the Member for Torbay (Kevin Foster), and the introduction of the Animal Cruelty (Sentencing) Bill, also in July 2016, by the hon. Member for Redcar (Anna Turley). I pay tribute to both of them and the supporters of their Bills; I thank them for their hard work.
I am delighted to have secured the parliamentary time to introduce this small but incredibly valuable Government Bill, which is of great importance to the House, the animal welfare community and the public more widely. I pay tribute to all who campaigned for the Animal Welfare (Service Animals) Act 2019, popularly known as Finn’s law, which is closely linked to the Bill. Finn is a police dog fondly known as Fabulous Finn to his friends, and a distinguished example of the incredible bravery and hard work of service animals. This Bill will ensure that those who cause injury to a service animal will receive a proportionate penalty for their horrific actions; I will speak on this in more detail a little later.
Many animal welfare charities and other organisations have been calling for increased sentencing for a number of years. I thank them for their campaigning on the matter and for ensuring that this issue has remained at the top of the agenda: Battersea Dogs and Cats Home, Blue Cross, the Royal Society for the Prevention of Cruelty to Animals and the League Against Cruel Sports, to name but a few, have been incredibly effective in their support for an increase in the maximum penalties, and I praise their tireless efforts. Claire Horton, chief executive of Battersea Dogs & Cats Home, stated that the introduction of this Bill is a “landmark achievement”.
This Bill is indeed a landmark step forward for animal welfare in this country. It demonstrates our commitment to protecting this nation’s animals. I pay tribute to Northern Ireland and my hon. Friends in the Democratic Unionist party for setting such a great example in support of animal welfare; Northern Ireland has already introduced a higher maximum penalty of five years for animal cruelty offences, which we are pleased to be able to match in England and Wales.
I also pay tribute to those hon. Members who have consistently advocated introducing this Bill, notably my hon. Friend—most of the time my friend—the Member for Tiverton and Honiton (Neil Parish), Chair of the Environment, Food and Rural Affairs Committee. He can be grumpy on occasions—[Interruption.] Oh, he is there! I had not realised he was behind me! Indeed, I thank all members of the Committee, who tirelessly press the Government on this issue.
Our Bill and the proposals therein on animal welfare sentencing have received strong support from across the House, and I am grateful to the Opposition Front- Bench team, not least the hon. Member for Workington (Sue Hayman) for her full and wholesome support; it is much appreciated.
Thirteen years ago in 2006 when the Animal Welfare Act was going through its stages, I proposed an amendment that would do exactly what this Bill does, so may I thank the Minister for bringing it in but express regret that it has taken 13 years to do so?
I am pleased the Bill is before us today; sometimes these things take time—too often in animal welfare—but I am really pleased that through working together across this House we have seen a number of pieces of legislation come forward in recent weeks and months. That is because we are working so closely together. I am extraordinarily grateful for that and for the support we have had from the hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron), who has long called for higher sentencing.
It is also important to recognise the hard work of our Whips. They are not able to speak on this matter, but I know that my hon. Friends the Members for Chippenham (Michelle Donelan) and for Milton Keynes South (Iain Stewart) are very keen for this legislation to come through. It would be remiss of me not also to mention the irrepressible hon. Member for Bristol West (Thangam Debbonaire), who is a complete enthusiast for this Bill and I am sure would love to be associated with it.
The Bill amends the Animal Welfare Act 2006, which currently sets out a maximum penalty of six months’ imprisonment and/or an unlimited fine for the more serious prevention of harm offences. That is much lower than the current European average for animal welfare offences, which is two years; indeed many countries have much higher maximum penalties. I am pleased to say that the Bill introduces one of the toughest punishments in the world and will bring us in line with the maximum penalties in Australia, Canada, New Zealand, Ireland, India and Latvia, which are all five years’ imprisonment.
The Government published the draft Bill for consultation and pre-legislative scrutiny in December 2017 as part of the Animal Welfare (Sentencing and Recognition of Sentience) Bill. The consultation closed in January 2018 and the Department for Environment, Food and Rural Affairs received over 9,000 direct responses to it; 70% of respondents agreed with the new maximum penalties. In the summary of responses document, the Government committed to bringing forward the sentencing clauses in a separate Bill as recommended by the Environment, Food and Rural Affairs Committee scrutiny report in January 2018.
There have been a number of recent cases related to serious animal welfare offences in which judges have expressed a desire to impose a higher penalty or custodial sentence than that currently provided for under the Animal Welfare Act 2006. For example, in 2016 an 18-year-old man kicked his girlfriend’s pet spaniel to death in an horrific attack. The dog was kicked repeatedly so hard that her brain stem detached. The man was sentenced to six months in prison and ordered to pay costs and victim surcharges of more than £1,000. The judge at the magistrates court said that he would have imposed a stronger, longer sentence if the law had allowed it. It was a sickening act of deliberate cruelty and in such cases a higher sentence would have been favourable for the court.
If I may, I would like to give another horrific example of where the judge explicitly told the court that he would have imposed a longer sentence if the guidelines had allowed. In November 2016 a man gave a dog painkillers and then beat her to death with a shovel. The man was sentenced to four months in prison and was disqualified from keeping all animals for life. That sentence was clearly not appropriate for such a dreadful act, and we need to change that, and we will now.
This Bill relates closely to the warmly received Animal Welfare (Service Animals) Act 2019, commonly known as Finn’s law, which prevents those who attack or injure service animals from claiming self-defence. It received Royal Assent on 8 April 2019, and I pay tribute to my right hon. and learned Friend the Member for North East Hertfordshire (Sir Oliver Heald), who is also in his place, for steering the Bill so skilfully through this House.
When this Animal Welfare (Sentencing) Bill is enacted, those who cause harm to a service animal in the course of the animal’s duty could be subject to a maximum sentence of five years. The intention of Finn’s law was to increase the maximum penalty for animal cruelty as well as improving the protection of service animals. We are now completing the increased protection of service animals with this Bill, and as a result achieving what the Committee and campaigners have worked so hard for.
The Bill is due to commence two months after Royal Assent and has a limited impact on costs to the criminal justice system. The increase in maximum penalties will not result in an increase in the number of offenders being sent to prison; it will result only in the potential length of time that might be served by the most serious offenders. We have been in discussion with the Ministry of Justice on this matter, and the Government consider that this may lead to some marginal extra costs to the criminal justice system which are unlikely to be more than £500,000 per annum. DEFRA has agreed with the Ministry of Justice to take on the costs, as set out in the explanatory notes.
While some offences committed under the Animal Welfare Act 2006 may be more minor incidents, there are unfortunately cases of serious or systematic cruelty. For example, some forms of animal cruelty, such as dog fighting, can be linked to organised crime and are carried out for financial gain through betting and prize money.
I thank the hon. Gentleman for his well-made point, which I think we can all support.
It is absolutely right that we should seek to increase the maximum penalty for animal welfare offences from six months to five years. Britain can be proud of having some of the best animal welfare practices and legislation in the world, and the Bill does what it needs to do to enhance that reputation. The landmark Animal Welfare Act 2006 is something that, as a Labour Member, I am very proud of, because our Government brought it forward. Now, delivering maximum sentencing through the Animal Welfare (Sentencing) Bill will ensure that our high standard is maintained and builds on those original foundations.
I am aware that many Members right across the House have campaigned for this issue and for this Bill to come forward, but I would like to make a couple of particular mentions. First my hon. Friend the Member for Redcar (Anna Turley) has made a huge contribution in this House, working with Battersea Dogs & Cats Home, to put forward her private Member’s Bill. That campaign was supported when it first came to the House by many hon. Members from both sides, and I am pleased that we are making such good progress now. I would also like to thank my hon. Friend the Member for Bristol East (Kerry McCarthy) for her hard work on this issue. I also thank the Environment, Food and Rural Affairs Committee and its Chair, the hon. Member for Tiverton and Honiton (Neil Parish).
The last time I spoke on this matter on the Floor of the House was in spring 2017, following the publication of the Select Committee’s excellent report covering third-party puppy sales and maximum sentencing. We then had the short-lived draft Bill that would have covered sentencing and the recognition of animal sentience. From that, however, Ministers went back to the drawing board, which is why, to some extent, it has taken so long to get to this stage. After two years’ delay, it is really good that the Government have finally brought forward this Bill, because it is important that sentences for animal cruelty should act as a deterrent. I welcome this.
We are supporting the Bill today, but we will seek to improve it in Committee. We have concerns, which are shared by a number of stakeholders, about the scope of the Bill. This has already been mentioned in an intervention. The proposals apply only to the Animal Welfare Act 2006 and therefore do not apply to wild animals in the way that they apply to domestic animals. Our concern is that this creates a two-tier system, even if by oversight as opposed to intentionally. The same sentences should be available to judges for similar or identical crimes, regardless of whether the animal is domesticated or wild.
I took the Animal Welfare Bill through, and I disagree with the hon. Lady’s understanding. It is possible to commit acts of cruelty only when we as human beings have power over an animal. We must deliver the animal’s five freedoms, and it does not matter whether the animal is domesticated or wild. It is our power over the creature that determines an act of cruelty. I do not think that her accusation of a two-tier system is a fair one.
That is an interesting consideration, and one that will be explored within the legal system. I am sure that we can look into it further in Committee. To give an example, the RSPCA reports that a man was jailed for just 22 weeks after he was convicted of setting his dogs on a pet cat and a fox. It is important that harming the fox can carry the same sentence as harming the family pet in those circumstances, and the law must reflect that.
I thought I was clear. In the case the hon. Lady just referred to, it was the dog that did the harm to the fox or the neighbour’s cat, not the human being. That is where the distinction arises. Had he been torturing any of the animals, he would immediately have fallen foul of this Bill.
But if any person directs an animal to do such appalling harm, should not that person bear some responsibility?
The Sentencing Council recommends that if a defendant pleads guilty at the first reasonable opportunity, the sentence may be cut by a third, so someone who commits the most serious crime against animals and pleads guilty could end up serving only four months in prison. I think we would all agree that that is an incredibly inadequate sentence for some of the crimes we have heard about.
The Minister mentioned that many people have campaigned for the increase, and I would like to mention groups such as the League Against Cruel Sports, the Dogs Trust, Blue Cross, the RSPCA and Battersea Dogs & Cats Home, all of which have campaigned strongly for the measure, having previously expressed concern about the leniency of sentencing.
I just want to add to the debate something that has not really been discussed. The most recent Labour Government introduced the Animal Welfare Act 2006, under which provision was made to increase sentencing to imprisonment of up to 51 weeks and a fine not exceeding £20,000. We did amend the law, but it never got enacted, which was bizarre. It is important to recognise that we did try to take steps. I do not know why that was not enacted.
I do not think we can have an intervention on an intervention, but the hon. Lady makes a good and valid point that it seems my hon. Friend the Member for North Herefordshire is going to deny.
I am afraid I am. I urge the House also to consider the case of lost dogs, which are now returned to councils rather than to the police. The criminal justice legislation that would have changed sentencing in the way the hon. Member for Redcar (Anna Turley) just mentioned was never brought forward by that Labour Government, so I am afraid the buck stopped very much with the Labour Government of the time. Indeed, the Minister concerned subsequently served at Her Majesty’s pleasure himself.
Madam Deputy Speaker, I have already been speaking for six minutes and I have not even started my speech, so I need to move on quickly. We want to get this legislation on to the statute book quickly, and people will be frustrated.
My right hon. and learned Friend the Member for North East Hertfordshire (Sir Oliver Heald) mentioned Finn’s law. Given that you are a fellow Essex Member of Parliament, Madam Deputy Speaker, and that my hon. Friend the Member for Clacton (Giles Watling) was interested in the matter, I should say that I was privileged to be at the event at which Paul Nicholls, together with the chief of police, unveiled the monument to police dogs. I met Finn and the whole thing was just a tear-jerker. My right hon. and learned Friend spoke about the dog barking when the legislation went through the House of Lords, and I can testify to that.
Now to my brief speech. It is true that a dog is a man’s best friend but, as we have heard already, there are too many examples of cruelty. There is a danger that we will talk about more and more horrific things, such as dogs being forced to fight against each other and the latest thing, which is sport trophy hunting. How is it that companies can be trying to attract Brits to go abroad, where these magnificent animals are enclosed, so that they can cut off their tusks and heads and so on? It is absolutely barbaric. Shame on anyone who goes on one of those holidays.
I am told that 26% of households in the United Kingdom own a dog and 18% own a cat. The vast majority of British people look after their pets well. We have one or two farmers present; introducing children to animals at an early age is a good way to get them to treat animals well. I know that not all children can necessarily empathise with animals, but I think that that would help. I join others in saying I am so glad that, as a developed country renowned for its historical championing of animal welfare, we are to have this legislation.
In 2017, the RSPCA investigated 141,760 complaints. That is a huge number. In 2018, the RSPCA phone line received 1.1 million calls. I am sure that none of them was made from the constituency of my right hon. Friend the Member for Rayleigh and Wickford (Mr Francois), but an awful lot were certainly made in Essex. The way in which the animals are protected is the first vital part of the Bill. The second important part is that it will act as a deterrent. The Bill recognises that the root of the problem is really with animal abusers, and although it may take a few months to kick in, all the literature that I have read agrees that this legislation will act as a meaningful deterrent.
There are too many examples of animal cruelty. Recently, in a national newspaper, we heard about a French bulldog that had just had puppies. How could someone have chained that dog to a car—we all saw it—and dragged it along the road? That is just horrendous, and the person responsible has still not been caught. I am glad to say that the RSPCA is on the case.
Just last week, The Independent reported that a driver in Somerset was luring birds on to a road with chips before mowing them down. That is sick behaviour beyond belief. In another shocking example, which took place at the end of last year, a man in the UK hit a dog with a hammer and strangled it with a washing line just because it was getting on his nerves—perhaps he had mental health problems. None the less, these are absolutely despicable incidents, and they are happening in our country.
Embarrassingly, my right hon. Friend recognises that I am susceptible to flattery, but as I am on the Panel of Chairs, I do not think that I can also serve on the Committee, much as I would like to.
Let me go back to the Protection Against Cruel Tethering Act 1988. When my right hon. Friend the Member for Rayleigh and Wickford was a councillor in Basildon, we opened the horse and pony sanctuary in Pitsea. It is tragic that this big event has been completely whitewashed and here we have legislation and it is not even being enforced. That is very disappointing.
Controversial lady though my good friend Ann Widdecombe is, she and I introduced a ten-minute rule Bill for endangered species some time ago. I am very glad that the Animal Welfare Act 2006—she was still here then—has been as effective as it has.
In 2017, the RSPCA investigated all these complaints. My final point is that there have been only 1,492 prosecutions, so we have a huge number of complaints—more than 1 million phone calls—but very few prosecutions. I hope that my hon. Friend the Minister will address that. It is very good that we are increasing sentences from six months to over two years, but is there a problem with resources? Do we not have the enforcement officers with local authorities? I am told that the cost of everything that we are putting in place today is about £500,000, which I realise is an awful lot of money.
I think that my hon. Friend is suggesting that he would like to see the number of convictions going up. Actually, I would like to see the number of convictions going down, because people who are committing acts of hideous cruelty are going to prison for a lot longer and are therefore less likely to do the same thing again and are less likely to involve an animal. We should judge this not by the number of convictions, but by the success with which the Bill delivers proper justice for those creatures.
My hon. Friend articulates the point that, hopefully, this sentencing will be an effective deterrent, so we will not have the same number of complaints.
On 23 May, I asked a question in this House about the lack of animal welfare officers in local authorities. I hope that the Minister might have some news on that, because, possibly, 440 RSPCA inspectors and 50 welfare officers are not enough to tackle this problem.
I repeat: this is a broken Parliament; but in a perverse way, I am glad that animals have benefited from the legislative opportunity that has arisen because it is broken. May we, in the weeks and months ahead, pass much more legislation such as this.
(5 years, 7 months ago)
Commons ChamberI am very grateful to you, Madam Deputy Speaker, and Mr Speaker for affording me this opportunity to have a long dilation on the subject of business rates. I am under no illusion: I do not think my popularity is why so many people are present. It is all to do with the popularity of and the worry about business rates and their effect on our high streets up and down the country. I am sure Members will have an infinite number of examples of how their high streets have been disadvantaged by the impact of business rates.
My hon. Friend has misled the House, although unwittingly. He is very popular; it is his natural humbleness and modesty that prevails upon us today. In Ledbury, which has one of the finest high streets in Christendom, there are only two shops that are part of the chains that can be seen on ordinary high streets, yet the shops in my constituency, like those everywhere else, are under tremendous pressure. More and more of them are becoming charity shops. Although none of us has anything against that, it is surely a sign of a deep unhealthiness in our high streets.
Ledbury comes second in Christendom after Cirencester, which is beaten by no high street town in this country. My hon. Friend is right, of course. The 80% rate relief that charitable shops get encourages a large number of them. I have a substantial number in Cirencester, although they are in the secondary streets, rather than the main square. I can perhaps beat Ledbury, in that I had only one major chain in my constituency. It was the House of Fraser, and it has recently gone bust, so as far as I know, I have no major high street chain in my constituency.
(5 years, 8 months ago)
Commons ChamberThese statutory instruments are made under the European Union (Withdrawal) Act 2018 which incorporates EU law into UK domestic law on exit. This Act also gives powers to the UK to make amendments to the retained law to make it operative. One of the things these instruments do is take powers currently held by the Commission and transfer them to the appropriate Ministers in the UK.
These instruments are grouped as they both relate to amendments to EU organic legislation, namely Council Regulation (EC) No. 834/2007 on organic production and labelling of organic products and Commission Regulation (EC) No. 889/2008 laying down detailed rules for the implementation of Council Regulation (EC) No. 834/2007, with regard to organic production labelling and control, and Commission Regulation (EC) No. 1235/2008 laying down detailed rules for implementation of Council Regulation (EC) No. 834/2007 as regards the arrangements for imports of organic products from third countries.
I should make it clear that the instruments do not make any changes to policies; they are purely technical in nature. They correct technical deficiencies in organics legislation to ensure it remains operable on exit and to preserve the organic standards of the current regime. The Government are strongly supportive of organic standards, many of which were developed in the UK and adopted by the EU. The UK has a world-recognised standard of food production and labelling which we wish to see maintained.
The UK organics industry is currently regulated by EU law, which sets out standards for organic production. Regulations apply to the production of food, animal feed and livestock, including bees and farmed fish, marketed as organic. The regulations set out the requirements for organic production, processing, labelling and imports as well as the inspection systems that must be in place to ensure the requirements are met. They stipulate that organic food must be inspected and certified within the scope of a tightly regulated framework and originate from businesses registered and approved by organic control bodies on the basis of a rigorous annual inspection.
The UK has over 6,000 organic operators and the sector is worth over £2.3 billion in the UK economy. Many operators are farmers and small and medium-sized enterprises. Indeed, the Soil Association reports that in 2018 the organic sector was worth £2.3 billion to the UK economy, with organic sales increasing by 5.3% in 2018. The market is in its seventh year of growth. Home delivery of organic produce through online and box schemes is growing fastest, at 14.2%, and independent retailers maintain strong sales of organic, with sales increasing by 6.2%. Key categories driving growth in the market are beers, wines and spirits and chilled foods, and in 2017 exports are estimated to be worth £225 million, excluding food from other processing and animal feed. Ambient grocery products, which include tinned and packaged food, are the largest export.
The first instrument, the Organic Production (Control of Imports) (Amendment) (EU Exit) Regulations 2019 makes operable retained EU legislation in Council Regulation (EC) No. 834/2007. Commission Regulation (EC) No. 889/2008 and Commission Regulation (EC) No. 1235/2008 deal with reserved measures covering imports and trade in organic food, feed and vegetative propagating material or seeds for cultivation. For example, the instrument transposes powers from the Commission to the Secretary of State to recognise countries and control bodies that can operate for the purposes of export to the UK. Organic control bodies in third countries will be able to apply to the UK to be recognised to certify products from around the world to import to the UK.
The instrument also sets out minor technical amendments and maintains the status quo until 31 December 2020. To maintain the status quo, this SI gives recognition to certified organic products imported from the EU, the EEA and Switzerland for 21 months. The instrument also applies for the same period of time limit during which the UK would not require additional border checks for organic products imported from the EU, EEA and Switzerland.
My hon. Friend will, I hope, come to this later in his speech, but how will we ensure that the standards of our organic farmers in the UK are not undermined if we are not overly attentive of what is being shipped in at the borders?
My hon. Friend can be assured that we are in no way seeking to water down our standards. We will no doubt talk further about that during the rest of the debate.
The approach that I have referred to responds to industry concerns and helps to maintain continuity, ensuring a flow of products. The organic regulations will now apply to imports at UK borders rather than EU borders and will ensure the continued regulation and certification of imported organic products to the standards currently applicable in the UK—I underline that point. The import system allows traceability of each product at all stages of production, preparation and distribution. This gives consumers confidence that imported organic products have been produced to the same high standards as UK organic produce.
The draft Organic Production and Control (Amendment) (EU Exit) Regulations 2019 ensure that organic standards remain the same for organic operators within the UK by making operable EU legislation in Council regulation 834/2007 and Commission regulation 889/2008. Without these amendments, part of the legislation would not be operable when applied in a UK-only context—for example, references to the UK as a member state. The certification and traceability of organic food and feed products will continue and standards will remain the same. This instrument sets out minor technical amendments. It also references the time-limited period of 21 months during which we would not require additional border checks for organic products being imported from the EU, European economic area and Switzerland.
The first set of regulations concerns reserved matters, as these regulations relate to the control of imports and exports. The second set concerns devolved matters. That is why we have two SIs before us today. Although there is no formal duty to consult as there are no substantive changes to the status quo, we have engaged with the United Kingdom Organic Certifiers Group, UKOCG, and from that engagement it is clear at the outset that the UK organic control bodies are particularly concerned about continuing recognition of UK certified organic products by the EU and recognition of EU imports by the UK. Our decision to continue to recognise products from the EU, EEA and Switzerland for a time-limited period has been welcomed by the group as it provides certainty on imports for the immediate future. We continue to work closely with the group on this and on the future implementation of the UK regulations.
These statutory instruments apply to the United Kingdom, and we have worked with the devolved Administrations on their development. Officials have had very helpful discussions with their counterparts in the DAs, and we are working with them on all aspects of the organics regime to form an agreement on how we can all work together moving forward.
Absolutely. I thank my hon. Friend—I could not agree more. He is right about the south-west. I was going to name just some of the businesses in the area. We have Riverford Organic Farmers, which has franchises all over the region; there may be some in his constituency. We have Merricks Organic Farm in Langport and Stream Farm in the Quantocks. They often do a whole range of products—beef, chicken, lamb, and even trout and strawberries. They are holistic but often small businesses that are absolutely dependent on keeping the purity of the standards for organic produce.
What I find most important is that the consumer has confidence, when they see what the label says, that that is actually what they are going to buy. That is not always true of pasture-fed produce, but it needs to be. The support that the organic sector has had from the legislation and the Government has been tremendous. I would like us to spread this much further and encourage more businesses like those my hon. Friend mentioned. I hope she agrees.
I thank my hon. Friend for that intervention. I thoroughly agree. I know that his own beef animals are pasture-fed—an excellent system in its own right that is really good for sequestering carbon in the grass. He is so right about the labelling. The consumer needs to know what they are buying. That is why these regulations are really important. If people are buying organic, they need to know that it is organic and up to our high standards, not some watered-down standards from somewhere else.
We have quite a large number of organic milk farms, as my hon. Friend the Member for Tiverton and Honiton (Neil Parish) mentioned. In Somerset, we have Coombe Farm Organic—milk producers who have three main farms and 1,000 cows. It is imperative for companies such as that that we know that their produce is organic, why it has been classed as organic and that it has been checked. Often, it has been checked by the Soil Association, which is the main organisation in this country that certifies organic produce. It has 27,000 members and is very much valued. It developed the world’s first organic certification system, way back in 1967. The standards have been widened since that time, so they encompass agriculture, aquaculture, ethical trade—I have a company in my constituency, Hambleden Herbs, that imports lots of spices and herbs, all organic—food processing, forestry and horticulture. It is really important that we maintain this system of standards so that these businesses can carry on operating from day one on leaving the EU and we can know that they are doing the right thing. It is important that we keep our high standards.
The organic sector is valuable, as we have heard—it brings £2.2 billion per annum to the UK economy, and our exports are worth £200 million, so that is also significant. The sector is growing because there is now a lot more emphasis on what we might call environmental farming or eco-farming. That is all referenced in the Agriculture Bill, the new environmental land management schemes, the 25-year environment plan and the forthcoming environment Bill. I believe that the organic system will grow, which is why it is even more important that we maintain our standards.
Just today, as luck would have it, I hosted an event on soil in Westminster, which was attended by more than 200 people. We talked about the degradation of our soils and the cost to the economy, which is a staggering £1.2 billion a year. I am pleased to say that there is a great deal of talk about soil going on through the Bills that are being introduced. The way to prevent soil degradation is to introduce policies that ensure healthy soils and biodiversity, with all the things that soil brings to us, including carbon capture, which will help with our climate change targets and mitigation—I see the Minister for Energy and Clean Growth sitting on the Front Bench—as well as flood resilience and providing healthy food.
Inevitably this soil health agenda will drive us towards management systems that are along more environmentally friendly farming lines and, for purists, along more organic lines. The standards will remain very necessary, as they will if we work towards improving biodiversity in this country, which is equally important. For example, there has been a desperate crash in insect numbers here and globally, with flying insect populations globally down by two thirds. Insects are the workforces of agriculture—they pollinate our crops, and we rely on them. The sustainability of the planet depends on redressing these crashes in biodiversity across the board for all sorts of species. That inevitably means that we will use less pesticides and adopt more environmentally friendly methods of farming through land management systems, and if we head towards organic, the standards that we will maintain through the regulations will be more important than ever. The regulations apply to imports and exports; that is very important. We must ensure that they cover vegetative material for propagation in the horticultural industry and others and seeds for cultivation.
One of the most exciting and interesting television series I ever presented back in the day was called “Loads More Muck and Magic”. It was an organic gardening series—I think it was the only one ever on television—on Channel 4. It was filmed in conjunction with the Henry Doubleday Research Association, which was the expert in organic growing at the time and is now called Garden Organic. That series instilled in me a great knowledge; I learned a great deal. I will never profess to be an expert, but I realised what purists organic farmers are and how valuable they are to the environment. They remain so, and I believe they will have more influence. The regulations will ensure that those standards are maintained, and I fully support them.
(5 years, 11 months ago)
Commons ChamberI regard my job as to go on making the case for a sensible middle way out of this situation. I do not believe that we can afford the economic cost of a no-deal exit, but I equally do not believe we can afford the political and societal costs of trying to undo the decision of the British people in the referendum. We have to find a negotiated way forward. The Prime Minister has presented us with the route forward, and we have to take it.
I am very reassured to hear what the Chancellor has just said, because he said in his opening statement that he felt that Brexit itself might be at risk, which of course is very much at odds with what the Prime Minister has promised us. Will he go on reassuring people like me that the will of the people will be followed by this Government?
My right hon. Friend the Prime Minister and I have said many times that the choice before this House is very simple: it is this deal, no deal or no Brexit. Those are the opportunities that we have to choose between.
It is a pleasure to follow the hon. Member for Liverpool, West Derby (Stephen Twigg), and, of course, my hon. Friend the Member for Plymouth, Moor View (Johnny Mercer).
Let me first commend the Prime Minister’s determination, fortitude and persistence in her negotiations with the European Union and in her repeated statements to the House. I, like many, want to conclude Brexit as swiftly as possible and to fulfil the result of the 2016 referendum, but the withdrawal agreement contains enormous problems. The Northern Ireland protocol provides for an extension of the customs union that would keep the United Kingdom in the customs union and some aspects of the single market. The Attorney General confirmed to the House, both in his statement and in his published legal opinion, that the backstop had no unilateral exit mechanism: leaving the backstop and the customs union could be more difficult than leaving the European Union. The people who voted for Brexit voted for independence, and the backstop prevents us from fully leaving the EU. The current withdrawal agreement therefore does not respect the will of the people to leave the EU.
If the Government are unwilling or unable to secure a better deal, the default position is trading on World Trade Organisation terms—no deal, or a clean global Brexit, as it should be known. People who say that that would be a disaster—the consensus on the Opposition Benches is that it might be—are, generally speaking, people with whom I disagree, usually because they are wrong. Our exports to countries with which we trade on WTO terms have grown three times faster than our trade with EU countries since the 1990s. We currently run a surplus on our trade with our biggest national export market, the United States. By contrast, we run a deficit on our trade with European single market partners. Anyone who is afraid of the WTO should simply look around their home and note the sheer volume of items made in China, America and the rest of the world in order to conclude that the WTO is not quite the demon that Opposition Members make it out to be.
On Tuesday, the Grieve amendment looked, at first, like it had put power back into the hands of the House of Commons. Although many of my colleagues and constituents tell me that anything for which the House votes will not be legally binding, we have seen this week that the Government cannot ignore Parliament. The purpose of the amendment was to put at risk the clean global Brexit, given that it will not be supported by Parliament, so I worry that extensions to article 50, or a second referendum, could win the support of MPs who do not respect the result of the original people’s vote. They should use this debating opportunity to remind the public that they will not seek to undo the result of the referendum, in exactly the way my right hon. Friend the Member for Mid Sussex (Sir Nicholas Soames) did earlier.
Voting for the deal itself represents a threat to Brexit, but it also represents a threat to the Government. Ironically, DUP Members, who will support the Government in a confidence vote if the deal is lost, would be closest to the hard border that the backstop seeks to prevent. Surely they must have their views respected above all else.
For our £39 billion, we deserve a proper arrangement with the EU that is mutually beneficial, as well as good value for our taxpayers. I fear that this deal does not open the door to positive trade negotiations. It hangs the threat of the backstop over the heads of our negotiators, which will force them to compromise and concede. Therefore, as it stands, I do not want to support the deal, but I hope that the Prime Minister will take our concerns on board and will act. I hope that she will return to this House with a deal that I and my colleagues can wholeheartedly support.
(8 years, 10 months ago)
Commons ChamberDoes my hon. Friend agree that the new body, the FCA, is as toothless as ever and that it is more likely to refer people to the ombudsman than to do anything itself? Will he urge the Government to change that?
I regret that I have to agree with my hon. Friend. The financial ombudsman service is too often seen as an option by the FCA when problems are brought to its attention. Unfortunately, I also have some comments to make on the performance of the ombudsman in relation to this issue.
(9 years, 4 months ago)
Commons ChamberI believe there is a Blairite in Leicester. It might be too difficult for me to go up there.
It is sad that the key issues are being missed. We ought to be prepared to work across the House on opportunities to improve the offer available to local government. Whether Opposition Members like it or not, a good deal of work was done under the coalition Government and more is being done now to hand power down to local communities. That is a good thing in itself. It must be right to give significant economic drivers—London and the other major cities—the power to raise revenue and invest it more for themselves. Could we go further? I think we should, but we should recognise this as a very important first start.
I must be careful with the number of interventions I take, as other Members want to get in, but I shall give way to my hon. Friend.
I am grateful to my hon. Friend. He referred to some excellent legislation introduced by the previous Government. There is no finer bit than the Localism Act 2011, but in Herefordshire we are seeing brakes put on the powers of local people by the local authority. Does he find that happening elsewhere?
Sadly, it does happen. One of the disappointments I have had is, I am sorry to say, that local authorities have been slower than I would wish in putting in place up-to-date local plans. There is a good deal more movement on that than previously, and I hope that the political certainty we have since the general election will encourage local authorities to move forward on that. I hope we can do more to encourage the uptake of neighbourhood plans, which my right hon. Friend pioneered and which offer a chance to give granularity to local communities’ involvement.
We should look again at the sort of fiscal incentives we can offer local authorities to support growth. The new homes bonus is important, as is the ability of cities like Manchester to retain 100% of the uplift in business rates. Personally, I think we should aim by the end of this Parliament to make that the norm across the country, rather than the exception. Those are the things that we ought to be talking about, rather than re-running history.
We need to offer other incentives in the housing field. A great deal more needs to be done. There is an issue with skills in the construction sector. When I talk to people in the sector, they tell me that as well as the planning side, which we can tackle, we need the skilled trades—the carpenters and the bricklayers, the supply systems. The Government are tackling that through their apprenticeship schemes, and we need to push that forward with great rigour. We need to ensure that the planning system deals not only with housing issues, but with the need to supply aggregates and other materials that are critical to the building trade. I hope we all recognise that we should be ruthless in prioritising building on publicly owned land. Today we had—I congratulate my hon. Friend the Member for Uxbridge and South Ruislip (Boris Johnson) on this—the first meeting of the London Land Commission, which is bringing forward something that has been mooted for a very long time.
I shall say one more thing about London. Devolution to other cities is welcome, but I hope that the Government do not think that means London has had enough devolution. I say that not only as a London MP but as joint chair, alongside the hon. Member for Croydon North (Mr Reed), of the all-party group on London. The truth is that London, as a major powerhouse, can and should have further fiscal devolution. I commend to hon. Members a thoughtful piece in today’s Financial Times by Professor Vernon Bogdanor, in which he writes that it is important that our major cities and powerhouses have devolved powers. I am very happy for them to have elected mayors, but the developer will ask not only “Have you got a mayor?” but “Can you give me a tax incentive? What breaks can you give to make it attractive?” I hope that we can build on that, too.
The Budget presents great opportunities for local government. Let me end by pressing one final reform upon my right hon. Friend the Secretary of State. We have done a great deal to boost the structural arrangements and we have started on the right track in relation to fiscal devolution. I hope that we can do more to encourage the supply of housing through the various initiatives I have suggested. The final thing we need to do is deliver infrastructure planning more effectively. One thing we could do is have a serious reform of compulsory purchase legislation, which is overdue, and which I have talked about before. It will be the work of a Parliament, but it is worth starting now. I think we could achieve cross-party consensus on that, because delivering the underpinning roads, rail and other infrastructure will speed the sustainable delivery of housing, which is critical.
My constituency was once represented by Harold Macmillan. I can tell hon. Members that he would have been very proud of my right hon. Friend the Secretary of State and of this Budget.
(9 years, 5 months ago)
Commons ChamberThe hon. Gentleman points out something that appears in the Rothschild report—that the bank still faces a range of uncertainties, particularly regarding regulatory action from America. The price today therefore reflects that information.
I welcome my friend and parliamentary neighbour to her new role—she has a tremendous wealth of City experience. My constituents would like to know whether the Government expect the share price to go up, in which case they ought to buy some, or whether it will go down, in which case we should sell considerably more.
I thank my constituency neighbour for his question. As he rightly acknowledges, neither he, his constituents, the Government or the market have perfect foresight into whether the shares will go up or down. They will go up or down, and it will be a phased programme for reducing the holdings. Today we are announcing the decision point and the potential for an initial sale.
(9 years, 10 months ago)
Commons ChamberToday is the first day of the consumer electronics show in Las Vegas. Fifteen years ago, at the 2000 show, Bill Gates presented an early version of the tablet computer and Nokia presented a device that had an electronic diary and could make phone calls. Today, many colleagues find their tablet an indispensable tool in their parliamentary and constituency work, and we take it for granted that our mobile phones have in-built diary and note functions. We are living in a fast-paced world where technology is constantly developing and making great leaps forward.
I want my constituents in North Herefordshire to be able to benefit from the latest in innovative technology. However, as those in London start looking at 4G and possibly even faster mobile phone connections, my constituents are being left behind. Too many parts of North Herefordshire and other rural areas suffer from patchy or non-existent mobile phone reception. It is indeed telling that while I am holding this Adjournment debate, my hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman) held an earlier debate in Westminster Hall on mobile phone signal and internet connections in Herefordshire. He and I think that more needs to be done to address the problem, particularly in rural areas such as the beautiful county of Herefordshire, which we are both proud to represent.
The Government are now keen to improve the situation and launched the mobile infrastructure project to help tackle not spots. Many will remember that the Prime Minister told a newspaper in an interview last summer that he had to return from his holiday in Cornwall in 2011 and 2013 because of poor signal; he was twice forced to return to London so that he could remain updated on the fall of the Libyan leader Muammar al-Gaddafi and on the Syrian conflict respectively. The Prime Minister at that point restated his desire to tackle not spots across the country. However, although the Prime Minister can return to London to keep updated, my constituents need a better signal where they are. The solution for the residents of North Herefordshire cannot and should not be to go to London.
It was also in the summer of 2014 that I learned that Fownhope, a village in North Herefordshire, had suffered a blow in its quest for improved mobile signal. Fownhope had been selected to have a new mobile phone mast as part of the mobile infrastructure project. Instead of that being good news for the village, it became clear over the summer that the proposed mast for Fownhope was not going to proceed. The mast had already been through pre-planning and the proposal was in the public domain. Not only was that a terrible blow to the prospects of improvements to mobile phone reception in the village, but thanks to prior publicity of the mast there was notable public disappointment for Fownhope residents, whose hopes had been dashed. In July I visited Fownhope and accepted a petition, signed by over 300 villagers, about the decision.
I was initially informed that Arqiva, the company running the project on behalf of the Department for Culture, Media and Sport, had found that some not spot areas that were originally targeted for the project had existing mobile coverage. I later discovered what had happened in the case of Fownhope after asking the Minister a number of written questions. It appears that not spot data are compiled and held by Ofcom, with information provided by the mobile network operators. The planning for the mobile infrastructure project was based on data originally provided in 2010. Since 2010 the operators have made changes to their networks, including consolidating and sharing sites, which had an impact on the locations of not spots. In March 2014 the mobile network operators submitted updated information on where they thought they had coverage, as predicted by desktop planning tools. The information was compiled by Ofcom and fed into Arqiva, which subsequently altered its plans accordingly. The updated information showed that coverage had improved in Fownhope since the inception of the mobile infrastructure project in 2010. That meant that Fownhope was no longer eligible for the project and the proposed phone mast was withdrawn.
In some areas where coverage was thought to be marginal or there was uncertainty about coverage, Department for Culture, Media and Sport officials commissioned on the ground drive testing to assess the level of coverage. On the ground drive testing did not happen at Fownhope. Instead, Ofcom chose to rely on the mobile phone operators’ maps to assess coverage and did not carry out the tests for all 34,000 not spots across the UK containing premises. Before removing Fownhope from the mobile infrastructure project, Arqiva did not assess the reception in Fownhope or visit the village. Instead, it relied on the data provided by the mobile operators to Ofcom.
In early September I met Arqiva representatives, who confirmed the process whereby the mobile network operators send Ofcom their maps, which are overlaid on top of one another to give an exact area where there is no signal. They said that if there is even a hint of a signal from one operator, even a poor signal, in an area previously deemed to be a not spot, that is sufficient under state aid rules for the phone mast to be withdrawn. I do not believe that this process is ideal because people pay the same amount for 2G as a person receiving 3G or even 4G, so there is an inbuilt incentive for phone operators to claim that their coverage is better than it really is. That should change, as my constituents in Fownhope and other areas are being grossly overcharged for a service that is unsatisfactory.
In October I formally met the Secretary of State about the mobile phone signal and the removal of the proposed mast for Fownhope. During the meeting I handed over to my right hon. Friend the petition that I had received about the mast, with more than 300 signatures. As a result of our meeting, he asked Ofcom specifically to go to Fownhope to check the strength of the mobile signal, rather than relying on data maps provided by the phone operators. Although this offer to test the signal did not necessarily mean that Fownhope would get its mast, it reassured me that the decision on whether or not to proceed would be based on accurate data—or at least, I hoped it would—instead of predictions made by the mobile network operators.
A recent report published earlier this year jointly by Which? and OpenSignal based on over 67 million data readings taken from over 39,000 users of the OpenSignal app showed that the coverage for users significantly differs from the coverage maps provided by the mobile companies.
Ofcom did visit Fownhope and came back to me with its results—extraordinarily—yesterday. What a lucky thing we had the debate timetabled for today, or we may never have known what the results were. It is far from clear from the results what Ofcom will decide. It has produced a picture of Herefordshire covered with little red dots and little green dots. The red dots indicate no signal; the green dots show an adequate signal. There is a little patch around Fownhope covered in orange dots. There are large numbers of red dots, the odd green one and huge numbers of orange dots. The report says, I believe, that Ofcom has not decided yet what an orange dot means. It is going away to think about it. But what it means is that people cannot make a mobile phone call from Fownhope, even if they are lucky. However, we will see what Ofcom tells the Minister in due course.
During our meeting with the Secretary of State, he mentioned his plans to introduce national roaming. At present someone from abroad holidaying in Herefordshire whose phone is set to roam will get a better mobile signal than a Herefordian. I agreed with the Secretary of State that this was not fair or satisfactory.
On 5 November the Government launched a consultation on improving mobile phone reception. I urged my constituents to respond to it. Many of them took part in it and many more told me about the problems they were having with mobile phone reception. One constituent told me that they have to go upstairs in their house and lean out of the window to get a decent signal, and another said that he can make mobile phone calls within his home only from one small corner of his kitchen.
I place on the record my entry in the Register of Members’ Financial Interests as a director and shareholder of two telecoms companies. I, too, have to lean out of my window to get a mobile signal at home. Does my hon. Friend agree that the roll-out of certain technologies with wi-fi calling means that the rolling out of the mobile phone signal in bad areas goes hand in hand with the roll-out of broadband signal across the country?
My hon. Friend is absolutely right. He cannot begin to imagine my delight when our new coalition Government chose Herefordshire to be one of the four pilot schemes for the roll-out of superfast broadband. The whole point of a pilot scheme is that one learns from one’s experiment—but oh no, so pleased were the Government with the pilot scheme that they decided roll it out everywhere, irrespective of how well it was working. At this point, people who had fallen into the pilot scheme areas for superfast broadband found that they were not at an advantage any more and very quickly became at a disadvantage. Instead of receiving superfast broadband by 2015, perfectly timed, with all the political intuition required of a Government, to coincide with the general election, we will not get our superfast broadband in Herefordshire until 2016.
That is of course a bitter disappointment to me, but more so to the people who live in places such as Fownhope who could have seen a better use of technology to piggy-back a better mobile phone signal from a superfast broadband link. This is particularly bizarre given the fantastic military infrastructure we have in Herefordshire, and the broadband delivery to all our schools. The superfast highway does exist. It is not a magic thing that needs to be created; it is there and we have not managed to exploit it in the way that we should have done. I extend my total sympathy to my hon. Friend for having to lean out of the window for a signal. In my house, an orange signal means that one has to lean out of the bathroom window, but luckily O2 is more effective.
I apologise for missing the first few moments of my hon. Friend’s remarks. I can bear testimony to the fact that in Fownhope in his constituency, which I visited very recently, one could not only not lean out of a window for a signal but not lean anywhere because there was no signal at all. I very much welcome this debate and value his contribution.
I could not be more grateful to my hon. Friend, not only for visiting my constituency but for staying at the Greenman pub, a wonderful place in Fownhope, when he came to see me. He is absolutely right. Despite what everybody who has a vested interest says, the people who go to Fownhope or live there will find that they cannot use their mobile phones.
My constituents have told me that there are more problems in North Herefordshire with all four mobile operators. Although EE and Vodafone top the list of operators I have been contacted about, my constituents have problems with phone signals in Stretton Grandison, Much Cowarne, Lugwardine, Wellington, Kington, Kingsland, Lingen, Burghill, Much Marcle, Linton, Bromyard and Wigmore—from Withington to Bodenham, Almeley, Stretton Sugwas, Bartestree, Leintwardine, Orleton, Eardisley, Winforton, Ledbury and Colwall.
One constituent highlighted the problem that when they buy a phone there is no way of knowing whether it is going to work when they get it home, and said that they would like a trial period to be introduced for those living in rural areas. To be fair to my constituents, I tested this. If someone has seven days to test their phone before returning it, they will usually find that their SIM card arrives on the eighth day so they cannot possibly do so. They should be able to take their device home and ensure that they will have reception before they are committed to a purchase. That is a very helpful suggestion which I hope will be taken up commercially.
It may also be worth considering introducing reduced rate tariffs for those living in rural areas where it is known that there is a poor signal from the operator that the contract is held with. There is nothing like the power of the market to motivate these companies. Knowing that they will get a lower rate if they do not provide a decent signal to people’s addresses might be just the little whip that they need to spur them into action. It is clear to me that all four mobile network operators desperately need to invest and improve their infrastructure in North Herefordshire so that my constituents can make and receive calls and texts.
As I said, I am not satisfied by the process by which mobile reception is predicted across the country. Ofcom relies too much on the data maps that are provided by the phone operators, the accuracy of which is often questioned. Ofcom accepts that there will always be cases where there is no coverage where predicted and some coverage where none is predicted. Ofcom’s “Infrastructure Report 2014” states:
“The maps of mobile coverage produced by operators are based on theoretical models…that are broadly accurate overall but can never be absolutely accurate in predicting coverage at a specific location.”
Indeed, Ofcom is currently looking into new methods by which it can predict mobile phone reception. It is planning to continue to refine and develop coverage and other performance statistics, with the aim of reflecting as closely as possible what consumers are actually experiencing.
Ofcom’s 2014 report suggests that partial not spots are of greater concern than full not spots, with 16% of UK premises being partial not spots for indoor coverage. Indeed, while 2G networks operated by EE, O2 and Vodafone provide similar total levels of coverage of the UK, the three networks do not perfectly overlap, which leads to partial not spots. Ofcom’s data suggest that, although all three networks cover 90% of UK premises indoors, the imperfect overlap means that 16% of UK premises indoors are covered by only one operator.
I am pleased that a number of operators are now trying to utilise various technologies to bring a signal to rural communities. However, I do not want that to deter them from investing in and upgrading their networks in rural areas. In Cumbria, EE has connected all 129 house- holds in Sebergham by trialling a new micro-network technology. The new micro-network wirelessly connects small mobile antennas to a suitable nearby site, without the need for cabling, dramatically improving the economics of connecting hard-to-reach areas. I understand that micro-networks can connect communities of about 100 to 150 homes and businesses across an area of about 0.5 square miles with just three or four small antennas, which EE claims can be installed on any building in just a few hours without a requirement for planning applications. EE announced in December that by the end of 2017 it wants to connect more than 1,500 rural communities using that micro network technology.
Fownhope now looks set to benefit from similar work being done by a different mobile network operator. Following my meeting with the Secretary of State in October, I wrote to the residents of Fownhope to encourage them to consider applying for Vodafone’s rural open sure signal programme. Rural open sure signal works with a local broadband connection to create a 3G signal which a mobile phone can pick up as long as it is within range. Each open sure signal unit provides up to 500 metres of 3G coverage, with Vodafone usually installing four in each community.
Following my recommendation that residents apply to Vodafone, I am very pleased that Fownhope is now one of 100 communities that has been selected for the project. However, for rural open sure signal to work there needs to be a minimum internet connection of at least 4 megabits per second.
The broadband connection in Herefordshire is currently being improved by the Fastershire project, run by BT with Herefordshire and Gloucestershire county councils. Area 11 of the Fastershire plan, which includes Fownhope, has been surveyed and planned and the roll-out started ahead of the expected date of 30 June 2014. Fastershire expects the majority of work to finish by 30 June 2015, with further work expected to be completed by December 2016. Once the Fastershire work is complete, Fownhope should be able to access faster broadband with a minimum speed of 2 megabits per second.
EE checked its network in Fownhope and believes it provides good 2G and 3G signal outdoors. It will shortly launch wi-fi calling, which will enable any wi-fi to carry voice calls seamlessly from cellular coverage should the latter drop out. That will markedly improve any areas where there is poor indoor coverage.
The Government recently signed a deal with the four mobile network operators on improving mobile phone coverage and I think we will all be happy to talk through the specifics of that deal over the coming weeks. As part of that, the Government are looking at reforming the electronic communications code, which governs land access rights for building new masts and maintaining existing ones. That is essential to meeting higher coverage ambitions.
Overall, EE has privately invested £17 billion since 2000, building the UK’s biggest and fastest mobile network. EE could almost have written this speech itself! Its 2G voice coverage reaches more than 99% of the population, 3G coverage 98%, and superfast 4G coverage is on course for 98% by the end of this year.
We need the mobile network operators to invest in their networks. That is the only way reception will be improved significantly in rural areas such as my constituency. Vodafone is planning to invest £1 billion in its network this year, as part of a development plan to bring voice and mobile internet coverage to 98% of the UK population. I am very pleased that it plans to increase the number of households and businesses in north Herefordshire that can receive a good-quality outdoor voice and mobile internet signal from about 75% to 95%.
O2 acknowledges that its service in Fownhope is currently not good, with its nearest mast more than 5 km away, but it claims it will invest in the area in 2016. O2 says it is investing £1.5 million a day in its network to upgrade existing 2G and 3G networks, in addition to switching on 4G. In 2016, it intends to make improvements to the service in the Fownhope area so that 2G is available indoors. It also intends to make 3G available indoors and outdoors, and 4G available outdoors.
In its communications with me, Three has been unable to specify when it will improve its coverage in Fownhope. However, it has suggested that my constituents will benefit from its pledge to cover 98% of the UK population by the end of 2015.
After my meeting with the Secretary of State in October, I was hopeful that mobile reception in north Herefordshire would benefit from his plans to implement roaming. With roaming enabled, residents’ mobile phones would automatically switch between networks to find the best reception when they lost signal. That would allow someone with a phone on Three to pick up an O2 or a Vodafone signal.
However, roaming was not to be. On 18 December, the Secretary of State announced that his plans for roaming had been dropped, and that he had instead signed
“a landmark, legally binding, deal with the UK’s mobile operators, securing £5bn of investment into infrastructure and committing each of them to 90 per cent geographic coverage of the UK by 2017.”
I understand the deal means that full mobile coverage—where every operator provides signal—will increase from its current level of 69% to 85% of geographical areas by 2017. As a result, the number of both partial and total not spots will be vastly reduced, improving consumer and business experience all around the country.
I have yet to see detailed plans on how that commitment will benefit my constituents and our great county, which has suffered from unacceptable mobile reception for too long. However, I join the Secretary of State in welcoming the fact that the mobile operators have committed to the agreement voluntarily. I am also pleased that, owing to the legally binding nature of the agreement, sanctions can be imposed if the operators do not undertake the work they have agreed to do.
I understand that the Secretary of State believes this deal will be better for the country than national roaming. The deal locks in guaranteed investment, and ensures that competitive pressure will still exist between operators. The Government believe the deal will ensure that the UK’s mobile coverage is among the best of any European nation, while making it easier for people to communicate and for business to compete and grow.
I look forward to seeing details in the coming weeks and months of how the agreement will improve signal in not just Herefordshire, but in Fownhope specifically. Its residents, who are good people, are paying the same, so they deserve the same. It could well be that 4G is the solution for the last 5% of broadband coverage that we all need. I urge the Minister to take this opportunity to do everything he can to put more pressure not only on mobile phone providers but on BT to provide the one thing we all want—in the 21st century, it is our right—and that is our ability to communicate.
What a welcome addition to this debate you are, Mr Speaker. The seamless transition from Mr Deputy Speaker to Mr Speaker perhaps reflects the growing importance of this debate.
May I congratulate my hon. Friend the Member for North Herefordshire (Bill Wiggin) on securing this debate. If the people who watch our debates in this House are sometimes sceptical about politicians and their commitment to their constituents, in the past half hour they will have seen a masterclass in how a constituency MP goes about pressing a case for his constituents. Concerned as he is about their broadband and mobile phone coverage, he has met the Secretary of State; he has met and communicated with all the mobile operators; he has met the regulator, Ofcom; and he has invited colleagues, such as my hon. Friend the Member for Windsor (Adam Afriyie), to visit his constituency to test the mobile signal for themselves. He has covered all the bases and listed for our benefit, and that of Hansard, the number of villages where coverage is poor. He is the definition of a constituency champion, and his constituents will recognise his hard work.
My hon. Friend is knocking at an open door as far as the Government are concerned, and he has already achieved one success—no doubt working with his constituency—because the village of Fownhope will now receive the rural open sure signal project. To be clear that I cannot pull any strings in my area as telecoms Minister, I encouraged villages in my constituency to apply to that project, but as yet I am unaware whether any have achieved success because Vodafone has not chosen to share that data with me.
I met Vodafone today and, to add to the range of ideas put forward by my hon. Friend, I stressed that in my experience as telecoms Minister a lot of rural communities are keen to help themselves. Were Vodafone to offer a tariff to rural communities such as parish councils to provide an open sure signal, at a cost, once its effectiveness has been tested—I understand that Vodafone will meet the costs for the 100 villages networking under the pilot programme—I am sure that a lot of parish councils would look keenly at effectively buying an upgrade for their mobile service on behalf of their parishioners. I have stressed that point to other mobile operators as well.
I am also keen to stress that Openreach should have a tariff—I have been pushing this point for many months—so that it can go to a community and say, “You’re not part of the programme. We have been open in saying that the programme does not yet have 100% coverage, but we will work with you and provide you with a tariff. Crucially, we will work with you physically so that you can undertake some of the infrastructure work.” Openreach is represented in rural communities with many keen farmers with their own equipment who could help, and that would make a huge difference.
I should perhaps have mentioned this during my speech, but is the Minister aware that DEFRA has changed the rules for most farmers, so that all their single farm payments will now be made electronically online? Those people cannot always get a signal, so perhaps money could be made available from DEFRA to help with that project, which I welcome.
I agree with my hon. Friend. DEFRA put up £10 million at the beginning of this Parliament, which DCMS matched, to help smaller rural and community broadband providers to provide broadband in areas that were not part of the national programme. DEFRA is and will continue to be an effective partner in our broadband roll-out programme, which is developing all the time. I do not want to give the impression that we are doing that on the back of an envelope, because we have a clear programme. It is right for my hon. Friend to highlight the difficulties faced by him, his constituents, and indeed the Prime Minister, but it is also worth stating —perhaps I can turn to the glass-half-full element of the debate—that we are making significant progress.
As my hon. Friend is aware, phase 1 of our rural broadband programme involved a £500 million fund from the Government matched by local authorities and Openreach, to enable up to 90% of premises nationwide to get superfast broadband speeds of at least 24 megabits a second. That programme has already gone out to more than 1.2 million homes. We expect soon to announce the milestone of 1.5 million homes, and we are on course to reach 4 million homes under that programme in good speed. Indeed, in many areas the project is ahead of schedule. As my hon. Friend is aware, in his area about £35 million went into phase 1 of the Hereford and Gloucestershire Fastershire project, covering some 113,000 premises. Latest figures suggest that the programme has already reached 35,000 homes. That figure will be higher by now. The vast majority of those 110,000 premises will be reached this year, although some will be reached in the year after.
My hon. Friend will also be aware of phase 2. We secured an additional fund of £250 million, which was again matched by Openreach and local authorities. In the Fastershire area of Herefordshire and Gloucestershire, that amounts to almost £20 million to target a further 33,000 premises; so, just under 150,000 premises all told in phase 1 and 2, reaching coverage of approximately 93% of all premises in Herefordshire and Gloucestershire.
One important point to make is that, when we have these debates, my hon. Friends and other hon. Members will, understandably, point to where things are not going as well as anticipated and where the problems are in order to highlight those problems. As I say to them again and again, however, we are on the same page. These funds have not come from nowhere. They have not been magicked out of the air in the past week. We recognised, in the very first weeks after the election, that rural coverage for broadband was a big problem. We were not prepared to accept the previous Government’s commitment to provide speeds of 2 megabits under a rural broadband programme. We recognised immediately that by the time the programme rolled out people would be demanding faster speeds. We set a target of 24 megabits, which is more than adequate. Most people nowadays would expect, if they think about how they use broadband—accessing iPlayer, or indeed receiving payments from the rural payments agency—speeds of about 7 megabits or 8 megabits to be more than adequate. We have recognised absolutely the need to provide broadband for rural areas. The programme is, despite some of the critiques that have been levelled at it, going extremely well. We will see even more of a step change this year than there was last year.
The other element of the equation is phase 3—I am still dealing here with fibre broadband, but as my hon. Friend pointed out that is very relevant for mobile broadband coverage—where we have set aside £10 million to test out different technologies. Critics of Openreach will be delighted to know that a number of smaller providers have secured those funds to test out new technologies to reach the very hardest-to-reach premises. When we talk about hard-to-reach premises, we are talking about perhaps a house at the end of a long track, where it would cost £20,000 to £25,000 to provide a superfast broadband connection. In terms of value for money, one could argue whether that is an effective use of taxpayers’ money. If we can find new technologies that would bring down that cost substantially, it is incumbent on us to examine them. Those programmes are under way. We will evaluate them and come up with a sum that we think is adequate to get to our often-stated target of reaching 100%. We have not been specific about when or how much money, but that is our ambition.
The Minister is lucky to be able to make voice calls, and, indeed, to text. He would not be able to do that if he lived in Fownhope. The biggest robbery of the mobile phone industry resulted from the extortionate 2G and 3G licences that were levied under the last Government, which I believe led to the lack of investment with which we are miserably trying to deal by means of this debate.
I hope that I do not become a hostage to fortune when I say that I concur with my hon. Friend. With hindsight, I think that £22 billion was an astonishing amount of money, and the last Government did not use it to invest in digital infrastructure. A much more realistic price was paid for the 4G spectrum that we auctioned recently.
Let me now deal with some of the specific points raised by my hon. Friend. He mentioned, in passing, the mobile infrastructure project. We invested £150 million as a first stab at recognising the problem of poor coverage and not spots. As I have said, both in Westminster Hall and during today’s debate, it has not been smooth running. This is the first time that the Government have been involved in a subsidised project with the mobile phone operators. As 4G was about to be rolled out, we made a 2G project into, effectively, a 4G project. As the case of Fownhope illustrates, another reason for the bumps in the road has been the difficulty of measuring mobile phone coverage objectively.
The aim of the project is to provide coverage for the small percentage of people—0.3% or 0.4%—who currently have none at all. Let me return to my definition of a complete not spot as a place where it is impossible to obtain a signal from any operator. In a partial not spot, coverage can be obtained from one operator, or perhaps two, but not from all of them. The first mast went up in Weaverthorpe, North Yorkshire, in 2013, and we have recently put one up in north Molton, in Devon. In order to assess the not spot data locations, we had to update our original radio plan so that MIP could target true not spot areas. Negotiations are taking place with landlords on 120 sites, and so planning applications have been submitted.
In Fownhope, however, there has been a problem. Ten sites in Herefordshire, four of them in my hon. Friend’s constituency, are at various stages of delivery, including the carrying out of site searches. The mobile infrastructure project had been intended to include the building of a mast to provide coverage for the area, and the delivery contractor, Arqiva, had begun discussions with the planning authority. As my hon. Friend explained, the revised data showed that coverage in Fownhope had improved, although it is not great. There is a handful of not spots on the outskirts of the area, but owing to the small number of premises in a total not spot, it does not qualify for inclusion in the MIP. I know that is disappointing news, as my hon. Friend has made clear, for residents in Fownhope. As I mentioned earlier, mobile phone coverage is a key issue for us. That is why I was so pleased that my right hon. Friend the Secretary of State for Culture, Media and Sport was able to negotiate the deal he negotiated with the operators just before Christmas. That will lead to some £5 billion of investment in mobile infrastructure. Mobile services will come to many areas in the UK for the first time. I also mentioned our planned reforms of the electronic infrastructure code.
Our most recent data estimate that about a quarter of Herefordshire is affected by partial not spots and only a small percentage has no coverage at all. We think that, as a result of that deal, complete not spots in Herefordshire will be eliminated all together, and only 5% will remain in partial not spots. Those improvements should happen over the next three years. Therefore, 95% of Herefordshire should have coverage from all four operators. I hope that my hon. Friend will agree that that is a significant improvement.
My hon. Friend mentioned in passing—he did not dwell on the point—that Ministry of Defence infrastructure exists in his constituency. That point was music to my ears. It reminded me of that well worn phrase “Great minds think alike.” For two or three years, I have been mildly obsessed with the fact that in this country a great deal of digital infrastructure is not joined up. I have finally persuaded the Government to put together a digital taskforce, chaired by my right hon. Friend the Minister for the Cabinet Office. Working with me and some very able officials, he has discovered about 23 different digital projects that the Government are nominally responsible for. We are already making significant savings for the taxpayer, running into hundreds of millions of pounds. More importantly, to address the point that my hon. Friend made, we are joining up those projects—I am not saying we can do this overnight or that the infrastructure in his constituency would be relevant—so that we can use existing infrastructure to upgrade the digital capability of an area. His point is therefore extremely well made and we are looking at the issue.
As for the trial period for mobile phones, it is a good point to make to mobile phone operators—they should give people the chance to try out a phone for a period. There may be commercial reasons why that proves difficult. It may be difficult, if people return a phone, to sell it to another customer. There may be an attrition rate for people who take a phone on a trial period and do not return it. There may be costs associated with trying to track down people who inadvertently do not return the phone.
It is not necessarily essential that those people should try the phone. It is the signal that is key, so only a SIM card is required.
I hear what my hon. Friend says. Often people underestimate the ingenuity and entrepreneurship that exist in the House. Perhaps we could together propose to mobile phone companies a SIM card that simply expires after seven days so that people could fit it in their phone to check whether it worked. It should be possible to go on a website provided by the relevant operator to at least have some assessment of whether the area receives coverage from that operator.
Speaking off the top of my head, having a lower tariff in areas with poor coverage strikes me as somewhat problematic. I would not want to be too cynical, but people might suddenly arrive as potential lodgers in rural areas to take advantage of the lower tariff and then merrily use their phone in London for extended periods, so that may be difficult. However, my hon. Friend has an answer to that point.
The Minister has just created the most marvellous whip with which to beat the mobile phone operating companies so that people do not do that, because the signal will be just as good in the rural areas. I congratulate him on that brilliant suggestion.
I am not sure that that would be the answer that the mobile phone operators wish to receive, but as a former Whip my hon. Friend is keen on whipping the mobile phone operators into shape. He has already done that most effectively with this timely Adjournment debate.
May I conclude by offering a metaphorical hand across the Chamber? I often find myself, both in this Chamber and Westminster Hall, hearing the concerns of both hon. Friends and other Members. My message to them again and again is that the Government have heard these concerns, and what we are debating is not the principle that rural areas deserve better broadband coverage and better mobile phone coverage, but the detail of the implementation. The spirit is always willing, but it is, I am afraid, sometimes the case that the flesh is weak.
Question put and agreed to.