(1 year, 11 months ago)
Commons ChamberI thank the hon. Gentleman for his question and for so assiduously pressing the case, along with his colleagues, for Northern Ireland residents. I am delighted to see payments going out automatically to direct debit payers, and vouchers going out to others. He is quite right to focus on this. Suppliers have worked with the Post Office in trying to make sure that the right instructions are going out alongside the vouchers to help people get through this. To avoid scammers, I encourage people to go to the Post Office and, ideally, get this paid into a bank account. That will be £600 for every household and family in Northern Ireland, which will help at this time.
Obviously, management of safety is not something for which I am directly responsible, but I am happy to follow up with my hon. Friend. I always thank him for giving me prior notice, which of course he did not do today.
(2 years, 1 month ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I do not keep a tab on what papers or books the hon. Gentleman reads. I am sorry that he is disappointed that there is not a Cabinet Minister in the Chamber, but, as I have said, they were involved in negotiations at COP and they are now on their way back. The urgent question was granted and here I am. No one is denying the importance of what is happening at COP. We must make sure that we reach net zero. That applies not only to this country, but to countries around the world with which we have to negotiate.
I am anxious that we do not leave this Chamber with a picture of doom and gloom. Negotiations have taken place and there has been some progress, but sometimes we overlook that progress. I know that what matters to my constituents will no doubt matter to the hon. Member’s constituents as well. On the forests and climate leaders’ partnership, for example, 23 countries and the EU are accelerating momentum to halt and reverse forest loss and land degradation by 2030. The UK has also confirmed £150 million to protect rainforests and natural habitats. That is as a result of our leadership. It is not perfect, but we should be so proud of how far we have gone.
The accelerating to zero coalition has also been launched, and it has been announced that the zero emissions vehicle declaration has 210 signatories. Furthermore, the breakthrough agenda will result in tangible actions being taken by countries that account for more than 50% of global GDP. There is much more to do, but there is a lot to be proud of. We should continue moving forward.
Will my hon. Friend explain exactly what discussions took place in Egypt between our Government and Germany on the issue of Germany’s intent to open up lignite mining and use lignite to generate electricity—lignite being the dirtiest form of electricity generation? Is there not something of an issue for us as a country in competing with Germany if it is quite prepared to ignore all the norms and use lignite to generate electricity, while we are reluctant to even open another coalmine?
My hon. Friend makes a valid point. We often focus on what we are delivering in the UK, and that is important, but we make an argument that other European countries are somehow constantly cleaner and greener. His point is a valid one. That is why global negotiations and global collaborations matter. We must shine a light not only on countries far from home, but on countries closer to home, such as those in Europe, which unfortunately are not leading the way as much as we are.
(2 years, 2 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
There are four Back Benchers seeking to catch my eye, and we have about half an hour before the wind-ups.
(2 years, 5 months ago)
Commons ChamberThe hon. Member will know that the various parts are moving in the Government, but I am sure there will be the customary statement or Budget in November from my right hon. Friend the Chancellor of the Exchequer, and I am sure there will be some interesting measures there to deal with that particular question.
Will my right hon. Friend explain how people who live in park homes are going to be able to benefit from the £400 donation from the energy price cap?
I am very pleased to tell my hon. Friend that we recognise the difficulty there. There was a loophole, but we are in the process of consultation about how to deal with that particular issue.
Of course, these are global issues, but the Government have taken decisive action to ease pressures on supply chains, such as by managing peak demand at the end of last year, including by expanding and streamlining testing for heavy goods vehicle drivers to enable an extra 50,000 tests per year. So things are being done.
My Department remains relentlessly focused on energy security for the winter, and I have met many business groups, business people and energy suppliers over the last few days. Only last week, to protect our people from costly bills, we published the Energy Bill, and I am pleased that last week’s fourth round of the contracts for difference scheme was the most successful ever. It secured almost 11 GW across a range of clean technologies, including offshore wind, onshore wind, solar and, for the first time ever, floating offshore wind and tidal stream. This will help to boost our energy security for many years to come.
In thanking my right hon. Friend for that answer, may I say that his answer to my earlier question will have been of little comfort to more than 100,000 households living in park homes? The Government are apparently still working on how to deal with this issue, but meanwhile those households fear they will miss out while those with second homes benefit more than twice, so can he guarantee that each of those households will get £400 in cash, as an energy bill rebate, whether it be in the form of a voucher, a direct payment or whatever? They need to know now that they will get the £400.
My hon. Friend has very successfully asked the same question twice, which is fair enough, and I will give him the same answer. We have had the consultation, and we will come up with a response that ensures his constituents get a fair deal on this issue.
(2 years, 7 months ago)
Commons ChamberWe should be having far more housing built in our urban areas. One of the great hopes I have for this Bill is that we will see housing built closer to where people can go to work so that there is not so much pressure on the transport infrastructure. It has been our tendency in recent times to build commuter belts where people therefore have to travel into our cities. Getting mixed development in our cities, thereby regenerating them, would take a lot of pressure off the transport system.
I do not have time—I apologise to my hon. Friend.
We need reform of land banking. The system that we have at the present time, where big developers buy land, get permission for 200 houses, build 40 and wait for the price to rise before they build the rest, results in planning blight. It results in big land banks for the developers. It means that people who live in our communities do not know what is going to happen. There are a number of solutions. My preferred one would be that if developers have not built out the permissions they have, they should not be allowed to apply for further planning permissions in the same local authority area. We absolutely have to deal with this problem, because it blights communities up and down the UK.
The levelling-up agenda is about extending opportunity to people in all parts of the United Kingdom. In regenerating our great northern cities, we have an opportunity to take pressure off the overcrowded south where housing and transport demand is too high. We need better employment opportunities spread across the country in what I would call a rebalancing of Britain. We have a great chance to have a win-win for all parts of the United Kingdom. However, unless we are able to tame inflation, none of our ambitions will be realised.
It is a pleasure to follow the hon. Member for Sheffield South East (Mr Betts). I agree with him about one thing, which is that the Government need to show a lot more conviction in expressing their opposition to windfall taxes. They are a simplistic solution that always end up hurting hardest the ordinary people who work in this population. I am against windfall taxes, and if I have time I will say a little bit more about that later.
Who would dare to criticise the content of the Gracious Speech delivered in Her Majesty’s platinum jubilee year? I am certainly not going to criticise it, but I would like to begin by drawing attention to some omissions from it. I referred to one of them in an article carried in today’s “ConservativeHome”, headed “Harm from Covid vaccinations. Don’t leave victims behind.” That is a reference to the need for changes to be made to the vaccine damage payment scheme. Currently, the maximum payment under that scheme is £120,000, which has not been increased since 2007. By way of comparison, as my hon. Friend the Minister on the Front Bench will know, industrial injuries disablement benefit has in the same period gone up by 39%. When I discussed this with my hon. Friend the Member for Erewash (Maggie Throup), the Minister for vaccines and public health, she indicated that she took the point and understood that something needed to be done. I hope that in responding, the Minister will be able to say what is going to be done and why the Government believe it is fair that this level of £120,000 should continue to remain unchanged since 2007.
The newly formed vaccine injured bereaved UK organisation, vib.uk, which has been established in the last few days is also calling for much wider changes to the vaccine damage payment scheme. I think they are absolutely correct and in the article to which I have referred I explain why I support its suggestions for fundamental reform of the scheme to make it more flexible and relevant to the plight of those who have suffered as a result of doing the right thing by getting vaccinated.
Unfortunately, I missed the article this morning but I will be sure to read it. Does the hon. Gentleman agree that one of the biggest issues with this scheme is the length of time it takes for decisions to be made? People are waiting a significant length of time even to get an initial contact with the vaccine damage payment scheme. Does he agree that that is one of the key things that needs to be fixed?
Absolutely, and I have been campaigning for changes since I first raised this issue in the House last September. In the article I refer to the fact that at the meeting I had with the vaccines Minister on 21 April she told me that, at last, an organisation has been appointed to carry out the administrative job of assessing the claims. There are now over 1,300 claims and the first assessments have not even begun, but I am told they will now begin on 16 May. The new organisation that has got the contract is committed to dealing with 1,800 such assessments each year, which is an indication of the extent of this problem. As the hon. Member for Aberdeen North (Kirsty Blackman) rightly says, it is appalling that we have had to wait for so long, and only last autumn the Prime Minister was assuring a correspondent that people who have suffered vaccine damage should not be ignored and left to suffer in silence. So I very much agree with the hon. Lady on that point and again commend the article to her.
Another significant omission from the Gracious Speech is any reference to the promised changes from RPI to CPI as the measure for calculating the maximum annual increase in charges for pitch fees for park home residents. This issue is dear to my heart; I have been chairman of the all-party group on park homes for many years, and the Government have outstanding, overdue business not just on that aspect but on dealing with the issue of rogue operators in that field.
When I was first elected in Christchurch—25 years ago, Madam Deputy Speaker—I would never have been able to contemplate that we would have a Conservative Government presiding over the highest levels of taxation in a generation and with inflation raging at 10%. I note from the Gracious Speech that the
“Government will drive economic growth to improve living standards”—[Official Report, 10 May 2022; Vol. 714, c. 4.]
and I hope I am right in concluding from that that the Government are not going to introduce any further tax increases. Yet there is talk, even from some of my Conservative colleagues, about new tax increases: so-called windfall taxes. Describing a tax as a windfall tax does not make it any less of a tax and I am concerned that the Government still seem to be flirting with the idea of ever higher taxes despite all the evidence showing that windfall taxes would be a further disaster.
I have been in the House rather longer than the hon. Gentleman and I remember when the first windfall tax was introduced; it was by the Conservative Prime Minister Margaret Thatcher. She made very good use of a windfall tax on the banks, which had made a very big profit. I thought it was a very good innovation; what is wrong with Thatcherism these days?
As with so many things about Thatcherism, the Labour party tried to copy it and, when Gordon Brown introduced a windfall tax, it was such a disaster that ever since Governments have decided that windfall taxes are a very bad idea. I was not in the House at the time, but the justification for the windfall tax to which the hon. Gentleman refers was that the Government had pushed up interest rates in response to rising inflation, so the banks had received a windfall benefit. Those arguments are nothing like those prevailing at the moment, where we need to encourage our oil and gas industry to invest, rather than disinvest, in our economy. Instead of windfall taxes, the Government should be talking about paying back to taxpayers some of the windfall receipts of tax revenue. VAT receipts are now expected to be £47 billion in the coming year, £9 billion more than predicted. So the case for removing VAT on energy bills completely and scrapping green levies on energy bills is overwhelming. It could be financed from the windfall receipts.
I am concerned that throughout this debate there has been insufficient reference—indeed, hardly any reference—to the issue of productivity, which is fundamental if we are to get the economic growth we need. However, I congratulate the Government on, it seems, being on the threshold of completing Brexit, resolving the issue of the Northern Ireland protocol and ensuring all those restrictive practices we continued to sign up to after we left the European Union can be removed. If this Government are able to finally deliver the full Brexit, they will have my full support.
I was reminded by my staff that I have been present at 42 Queen’s Speeches—this is the 42nd. May I say how concerned I am that the Government seem to be downgrading Parliament all the time? I cannot remember one of these debates without a Secretary of State on the Government Front Bench defending the Queen’s Speech and the elements within it. As a long-serving Member, their consistent and persistent downgrading of Parliament worries me very much indeed.
The Queen’s Speech is deeply disappointing. So many things have been missed out. I disagree with almost everything said by the hon. Member for South Dorset (Richard Drax), except—Madam Deputy Speaker, I am sure you would like some bipartisan remarks—on the strength of our Army. I have stood up in this Chamber for a long time to say that it was dangerous to have fewer than 100,000 personnel in our armed forces. We are now planning to go down to 72,000 at a time when the world is a very worrying place and we have to take that very, very seriously indeed. It is what is missing from the Queen’s Speech that worries me so much.
One of the greatest challenges we have is health and social care. We have been promised, have we not, a Bill and firm Government action to do something about social care. I do not know about Doncaster in your constituency, Madam Deputy Speaker, but in Huddersfield one big problem in the health sector is that people are taken into accident and emergency and into hospital but cannot be released because there is no suitable supported housing for them in our communities. There has been nothing about social care and, on housing, nothing about building appropriate housing for supported living. That is a very big miss in this Queen’s Speech.
The other big miss is a moral miss. The fact of the matter is that all of us in politics know that our country has been in terrible trouble. Our constituents have had a tough time. They have had covid, years of austerity and now the higher cost of energy to heat their homes and the higher cost of food to fill the tummies of their children and other members of their families. That traumatic background is the truth of it. I was expecting a Queen’s Speech that said, “This is a national crisis. Let us get together and sort it.” What is missing in this debate is honesty. We are promised lower taxation. All of us know in our hearts that somebody has to pay to put the country right and to do all the things we want in health and social care, and to rebuild the welfare state that was found wanting as we faced covid. This country has one of the lowest rates of unemployment benefit. People who never thought they would lose their jobs or be made unemployed were shocked when they realised how weak the support was for their family.
In a second.
I meet a lot of people who are earning pretty good money, professional people with good salaries, and they tell me, “We should be paying more tax.” They say, “We want a decent society, so we want to pay more tax.” Can I just put that on the record? Let us be honest with people. If we want a decent welfare state, decent services and decent local government, we must be willing to pay for them.
Two minutes.
We have demoralised so many people on the frontline. I do not use that in a military sense; I mean our health workers, nurses, doctors, care workers and local authority workers who do everything to make our local society and local community viable and decent to live in. They have all felt undervalued. They have all felt that nobody really values the service they provide, whether emptying bins or running schools. When local government had decent resources they did believe that, and we believed that that was the right thing to do.
We were expecting great things from the Queen’s Speech, but we do not have them. We have an environmental crisis. We have had COP26. We have aspirations to say that the other great challenge, apart from health, is our environment. We have a country where in many of the communities we represent we are poisoning children, poisoning pregnant women and poisoning our constituents with the filthy air they breathe. Nothing in the Queen’s Speech will meet that challenge—there was very little to touch it. There was little reference to a cleaner transport system. That is not enough when, as we were reminded only yesterday, we face global warning and climate change and we will get the increase in temperature that will eventually destroy life on this planet. Nothing in the Queen’s Speech will address that. It is as though it does not exist and there is no threat.
As well as health and social care, there is education. I am very proud that I went to the London School of Economics, both as an undergraduate and a postgraduate, and our motto was “to understand the causes of things”. When I look at the causes of inequality in our country, I immediately see education and levels of child poverty. I worked with Tony Blair and his 1997 Government and, as we remember, the main thrust of the campaign was “education, education, education”. We know from the system we have had that if we want to tackle underprivilege, poor attainment at school and poor attainment of skills, we have to invest in early education—in pre-school and early years—and in supporting families in literacy, numeracy and using the English language. The fact is that there is nothing in the Queen’s speech about levelling up. Where is the determination to bring back children’s centres? Where is a policy like the one we used to have to try to give every child a proper chance in their lives? It is not there. It is an appalling missed opportunity.
Turning to some positive things, we have seen cross-party unity in how we have faced covid together and we have had cross-party co-operation on the support for Ukraine—thank goodness—so surely there are things that we could have done in this Queen’s Speech. We could have agreed that we need 500 sustainable towns and cities in this country, based on the United Nations sustainable development goals. That would have lifted us up and given people the chance to roll up their sleeves and change their environment, not just on a global level, but in their communities locally. That is what is missing. We have wonderful vision, passion and commitment in some areas, but this Queen’s Speech has failed to deliver on the environment, education and aspiration, and I am very sad that that is the case.
(3 years, 1 month ago)
Commons ChamberVery briefly, may I say that I very much welcome the proportionate response from my hon. Friend the Minister? He says that this issue goes back many years. I remember raising an Adjournment debate entitled “Cowboy Builders” in the 1983 Parliament. In the 1987 Parliament, I was rewarded by becoming the Minister for the construction industry. I remember the representations then, and I remember working with the Federation of Master Builders and others.
As a lawyer, one of the most difficult questions I ever had to answer was, “Can you recommend a good solicitor?” That is also a really big challenge for those who are engaged in or thinking about having building work done. I hope that, as a result of today’s debate, people will realise that they should look at organisations such as the Federation of Master Builders and Checkatrade, and go for people who have a reputation locally. It may be a little more expensive, but otherwise they could get into all sorts of difficulties. When I worked for Ernst and Young, my boss there, who I thought had the wisdom of Solomon, ended up getting a rogue cowboy to redo his driveway. He then came to me, as a non-practising lawyer, asking for legal advice about it, and I said that it was too late.
Anyway, that is enough from me. I am pleased by the Government’s proportionate response. The Bill does not seek to define “domestic building works”, which must obviously be the starting point for any regulations.
(3 years, 2 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
That is another important point. I think the Minister will accept my saying: I have been a Minister; never trust a Minister—partly because one day they will not be, and it will be someone else in the seat. Government should set the standards, but the delivery of that sort of information must be seen to be independent and to have sound validity for those involved.
When we look at delivery, one thing that is often missing from the conversation is the fact that central Government cannot deliver on many of these things. Central Government has to work through other agencies. That can be the private sector, but we need the strategic planning to take place at local, and sometimes sub-local, level. If we are going to not simply change attitudes but introduce the necessary infrastructure—the infrastructure of skilled training for the capacity to make the changes that we need—we must deliver locally. That does mean a much stronger partnership. Again, that is a recommendation in the report between central Government and local government. I say to the Minister that if that partnership does not include the proper transfer of funding so that local government can do this job, then we will be gifting the ambition but not delivering the tools with which to achieve it.
This is a very important report. Once again I congratulate the hon. Member for South Cambridgeshire. He is trying to deliver a balanced judgment. He is probably a little more optimistic than I, but he did emphasise that the crisis is not looming; it is with us. This is a call now to move beyond planning. Words can be good in setting ambition, but it has got to be now about serious delivery on the ground. We have had so many wake-up calls. This call says, “Now is the time for action.”
This is a very interesting debate. There is a parallel debate taking place in the main Chamber, where there is a three-minute time limit on speeches, I suspect. Before calling the last Back-Bench speaker in this debate, if anybody in the main Chamber is following what is going on in Westminster Hall, I am happy to accept additional Back-Bench speeches if Members show up, notwithstanding the fact that they were not here at the beginning for the initial remarks.
I thank the hon. Gentleman for that intervention, and clearly I agree with him. It is great that he has recognised the work that is going on to restore peat bogs in Scotland. As he said, the UK Government’s tree-planting target is welcome, but I am sceptical that they have a plan in place to meet that target. They have never met any target for tree planting to date, so the idea that they can scale up massively in a couple of years is beyond belief. I was going to mention tree planting in Scotland later on, but in 2019, 85% of trees planted in the UK were planted in Scotland via the Scottish Government’s scheme. The Scottish Government have aggressively pursued tree planting—they have led the way on it—while the UK Government have not yet put plans in place to meet their ambitions.
There are too many policy gaps to mention, even though we have a lot more time today than we expected. We need to see an impact from the net zero aviation strategy, for example. I am not convinced by the plans that are in place. As the hon. Member for Leeds North West said, there is a transport decarbonisation plan in place, but when it comes to hydrogen and conversion of HGVs, we have heard the hon. Member for Bristol East say that not enough zero-emission buses are being produced. We really need to move quickly on these matters.
The hon. Member for South Cambridgeshire complimented the work that is being done on decarbonising the electricity system. That work is truly welcome, but there is still not a proper plan for ending unabated gas-fired electricity generation by 2035, nor a proper structured plan for the decarbonisation of the electricity grid to meet the 2035 target set by the Government. If they are going to meet the target of a net zero electricity grid by 2030, there are some things that I suggest the Minister needs to be cognisant of. The Government need to review the grid charging system, which will end the farce of Scotland having the highest grid charges in Europe. That system disincentivises the construction of renewable energy production in Scotland—puts it at a disadvantage compared with projects in England—but it does not help the UK to meet its net zero target, either. We need to make net zero a statutory consideration for Ofgem, and the Government need to review the capacity market to address its reliance on fossil fuels, and allow storage that is co-located with renewable energy to be able to bid into the capacity market. Bizarrely, that is blocked at the moment.
As I touched on earlier, the Government need to end their nuclear obsession. Instead of spending another £20 billion on a new station at Sizewell, not to mention the billions they want to invest in small modular reactors and the mythical advanced nuclear reactors, they should be investing that money in renewable energy—in green hydrogen production and storage. The UK has now fallen behind France, the Netherlands and Germany in terms of hydrogen production proposals, so an urgent rethink of policy development is required. The 5 GW hydrogen target is not ambitious enough. The Scottish Government have a 5 GW hydrogen production target, so surely the UK Government need to up their game.
The UK Government should be investing in pumped storage hydropower—a proven technology that allows dispatchable energy to be added to the grid when the wind is not blowing and the sun is not shining. This is something that can progress quickly. SSE is ready to progress with the Coire Glas scheme, and Drax is advancing plans to double output from the existing Cruachan dam pumped storage hydro plant. What is needed is a pricing mechanism to be agreed with the Government, like a carbon floor mechanism. I raised this with the previous Minister. Will the current Minister look at a pricing mechanism to allow pumped storage hydro to progress? It is a good use of renewable energy.
Wave and tidal turbine power—technology Scotland literally leads the world in— needs help to get to the next phase of scaling up. The industry requested a ringfenced sum of money in part 2 of the contracts for difference—round 4 is coming up shortly. Ringfencing money in part 2 has been done for floating offshore wind; all that the wave and tidal industry are asking for is the same ringfencing to allow them to compete and get a slice of the pie. It is believed that the Treasury blocked this ringfencing, which is ridiculous, considering that it would not have cost the Government any money. There is a risk that this technology will lose out and move abroad, and as happened with onshore wind, we will lose the opportunity to have the manufacturing set up in the UK and lose the export opportunities and growth that comes with that. Hopefully the Minister will listen the arguments. I would be more than happy to meet and discuss it, and he would be very welcome to meet industry representatives. Small changes could be made that will not cost the Government money, but could generate fantastic growth opportunities.
In Scotland’s commitments to the Paris climate change targets and net zero, we are genuinely leading the way. We were the first Government to set a net zero target with a date of 2045, the first to declare a climate emergency, and we have set up the Just Transition commission. Admittedly, we also did not meet our emissions target of a 55% reduction by 2020, a 51.5% reduction is still fantastic progress. In Europe, Scotland is second only to Sweden in terms of the scale of reduction achieved. Interestingly, one of the reasons Scotland missed its latest target is that the process under way of rewetting peatlands necessitates the removal of some trees. As the hon. Member for Rochdale (Tony Lloyd) pointed out, Scotland is doing fantastically with peat bog and wetland restoration, as well as having a fantastic tree-planting operation.
When it comes to energy production, Scotland has led the way in decarbonisation; last year, 97% of equivalent electricity demand was produced by renewable energy—this is absolutely tremendous. We have ambitious plans and we are making them happen; they cannot nor should not be blocked by decisions made in Westminster. I appreciate the UK Government does have ambitious targets, but as the report from the CCC shows, more policy and further intervention from Government are required—and they are required sooner rather than later.
Dr Alan Whitehead, I think you need to limit your remarks to 45 minutes.
(3 years, 2 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I do not think that it is relevant, because there is no way that any storage in the world will mitigate the effect of a quadrupling of the gas price in four months, as we have seen. The answer is actually getting more diverse sources of supply and electricity through non-carbon sources—through nuclear, on which I am still very unclear as to the Opposition’s view, and through other sources of decarbonised energy.
Why do we not reduce VAT on fuel as a temporary measure? We did it for the hospitality industry, which was badly affected by covid-19. Why do we not abolish VAT for consumers on fuel now?
My hon. Friend is quite right: we did a whole range of interventions to alleviate the burden on consumers and on businesses. Those were fiscal interventions that the Chancellor pursued last year, and I am sure that he is looking at a range of things this year, but that is a matter for him to decide ahead of the Budget.
(4 years, 2 months ago)
Commons ChamberI beg to move, That the Bill be now read a Second time.
This takes me back to my days of being a Whip on the Treasury Bench. It is a great honour to speak to this Bill, which I introduced back in March. It was the very last thing that I was able to speak on before we went into a new normal, which we are still continuing to get used to, with covid. At the time of the debate, I recall the Minister for Business, Energy and Clean Growth saying to me that we need to have more debates about such matters—Westminster Hall debates, Adjournment debates and so on. I had genuinely hoped that before I got to the point of speaking on Second Reading, we might have had more opportunities to speak about the Bill, but sadly events precluded that. I believe that the Bill is a simple measure that would provide transparency to the public about what companies are doing to tackle carbon in supply chains. It very much mirrors a measure that I introduced as the Minister responsible for tackling modern slavery and organised crime in the Modern Slavery Bill—now the Modern Slavery Act 2015—supported by my right hon. Friend the Member for Maidenhead (Mrs May), who was then Home Secretary, to make sure that companies took seriously the issue of human trafficking and modern slavery in supply chains.
We did that, because it is far too easy for people to hide behind the regulatory requirements to report on the measures that they are taking within their own businesses. Supply chains are different. What goes on in a long, complex supply chain can amount to abuse and include things that keep the costs low for the business in the UK and, ultimately, UK consumers but would not be tolerated if they were happening in the UK. Section 54 of the Modern Slavery Act was incredibly important, and my right hon. Friend will know that we went to considerable effort as Ministers to secure Government sign-off.
The Government are not keen on new regulation. I am not in any way naive about that, but this is a unique type of regulation, because it does not say to business, “This is what you must do. This is how you must behave.” Instead, it says, “Tell us what you have done.” If the business has not done anything, it should say so. If, as a business, it does not want to find out whether there is human trafficking and modern slavery in its supply chain, it should tell us, by putting up a statement on its website, signed off at board level, saying that it has not taken any action. Consumers will be able to read that. People who might want to work in the business will be able to read it too, and can make an informed decision about whether they want to be involved or associated with it, or whether they want to be employed by it. If a business has not taken any steps whatsoever or any action, why would anyone want to have anything to do with that business?
This is about giving power to the consumer and the employee. It is about giving power to people who would not normally have that power to make a decision about whether they want to transact with that company. As I have said, the measure is important; it has to be signed off at board level. We all know from dealing with business that if decisions are made below board level, often the board does not know about them. The board needs to know about this, and it needs to take the right steps.
Can my right hon. Friend tell the House the effect of the measure on dealing with people trafficking and modern slavery registration? Has it resulted in less of that illegal activity or has it not made any difference at all?
I think it has begun to make a difference, but the measure was only introduced in 2015. It applies only to large companies with a turnover of over £36 million, and we have only just begun to see it being used. I know from friends I used to work with when I was employed as a chartered accountant that they are taking this matter seriously. In fact, my right hon. Friend the Member for Maidenhead and I were on a panel only yesterday—this Sunday is Anti-slavery Day—discussing exactly that point and the measures that businesses are taking to identify slavery in their supply chains. It is making a difference. More can be done, and I am pleased that the Home Office has taken more steps in that direction, but it is making a difference.
(5 years, 8 months ago)
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I beg to move,
That this House has considered Amazon and the treatment of SMEs.
It is Kevin Brennan, actually, Mr Chope. I was once briefly knighted in the Mail Online by a journalist making exactly the same mistake, but I always consider myself more shovelry than chivalry.
I am grateful for the opportunity to speak in the debate today about Amazon. I will tell a story about my constituent, Roland Brana, who this year should have been celebrating 20 years of his successful and growing family business, selling motorcycle protective clothing. He spent 11 years as a sole trader, then eight years as a limited company, and in each year he achieved continued growth. It was a successful, viable business with quality products that were competitively priced and in demand.
In 1999 his business, Bikers Gear, began importing self-designed own brand motorcycle clothing from a factory in Pakistan and sold it online via his own website and on eBay. In 2001 he opened a high street shop in Barry, south Wales, and in 2002 he accepted an invitation from Amazon to become a merchant on its newly launched non-video and book UK marketplace. His business continued to flourish. In March 2010, Bikers Gear UK was incorporated as a limited company and in 2013 the brand launched across Europe via Amazon’s European platforms.
In 2013 Bikers Gear registered for VAT in both Germany and France, and in 2014 a German and French speaking customer service team was launched, based in Leipzig. In 2015 Mr Brana completed EU-wide registration of the Bikers Gear trademark logo. This should be the story of a lad from a council estate and a single-parent family who made good. Instead, it is the story of a small businessman who finds himself having to start all over again, having had to close his business, because of the way that his small company, Bikers Gear UK, was treated by the global conglomerate Amazon.
The real problems started when Amazon approached Mr Brana in May 2016 for a retail manufacturer partnership. He accepted that as an opportunity for the business to go to the next stage. He would concentrate on expanding the manufacturing of the product and Amazon would concentrate on selling. Amazon forecast great potential for growth. He was aware that one of his manufacturers in Pakistan had a family relative trading in Australia, who sold similar motorcycle garments, so in 2010 he created an image user agreement to protect his online images from any potential infringement by this Australian brand.
Following the agreement, during 2017 Mr Brana began to receive offers of orders for more than €1 million from Amazon. To begin with he could not accept many of the orders because of delivery windows and not holding enough stock in south Wales. The problem lay with his main supplier in Pakistan, which was refusing many large purchase orders. He took action to drop this supplier. Because of this and complaints from Amazon regarding poor order acceptance rates, Mr Brana travelled to Luxembourg twice in 2017 and met Amazon buyers. Mr Brana reassured them that he would increase the stock in the south Wales warehouse to improve the order acceptance rate for 2018. He explained to Amazon buyers that the low acceptance rate was due to the problem at one particular factory, and explained that, to resolve the supply issue in 2018, he planned to introduce another supplier. He informed them that he would personally be investing £75,000 to increase his holding stock as he was fully committed to the Bikers Gear UK business, and that he would do so by re-mortgaging his home.
In 2018, Mr Brana approached Barclays Bank, obtained the mortgage and, as promised, began increasing the stock in his south Wales warehouse. All should have been well but, at the same time, he noticed that the Amazon order had by now almost stopped. He started investigating and noticed that the Australian brand had started selling its brand on the Amazon UK platform. At that point, it appeared to be offering different garments from the Bikers Gear UK garments and not selling products with his barcode or European article number—now known as the international article number—that delineated the product on websites. With the exception of the new 2018 range, however, no orders were being received from Amazon by Bikers Gear UK. Even its best-selling garments were not being ordered.
Mr Brana presumed that Amazon holding stock would run out and he would be able to return to selling the garments successfully, as he did prior to the 2016 Amazon agreement. He started checking the website stock level, which is clearly visible when someone makes a purchase on the Amazon website. It would state things such as, “Four left in stock—more on the way.” He checked back days later, and the stock available had gone up on his product from four to 18. It was clear that, even though Amazon had not purchased any new stock, its inventory was going up, not down. Something was clearly wrong.