Oral Answers to Questions

Debate between David Mowat and John Hayes

Thursday 14th March 2013 Commons Chamber

[Mr Hayes]

There are few in this House who can match the hon. Gentleman’s understanding, knowledge and support for the coal industry. I cannot match it, but what I can match is his determination to do right by the workers there. I had a positive meeting with the unions yesterday; I also met UK Coal yesterday and, again, had a positive meeting. The Government will do all they can, not only to protect the future of the coal industry, but to protect the interests of those workers who will lose their jobs at Daw Mill. I made that abundantly clear. We cannot match the hon. Gentleman’s knowledge of these things, but I can certainly match his determination.

[David Mowat (Warrington South) (Con)]

The Minister said in his response that coal had a good future in this country if it was combined with carbon capture and storage, a technology that is many years from working. Across the rest of the world, unabated coal is accelerating. In particular, countries such as Germany that produce 20% more carbon per unit of GDP and 20% more carbon per capita than us are launching a number of coal-fired stations. Why is their position so different from ours?

[Mr Hayes]

We are committed to CCS because we believe it can work. My hon. Friend will know that the carbon capture and storage cost reduction taskforce predicted it could work much earlier than previously estimated—by the early 2020s. With carbon capture and storage, coal can play an important part in our future. I cannot be clearer than that, Mr Speaker, surely.

Oral Answers to Questions

Debate between David Mowat and John Hayes

Thursday 13th December 2012 Commons Chamber

[David Mowat (Warrington South) (Con)]

In his discussions with the EU Commissioner yesterday, did the Minister have the chance to raise the case of Germany? It burns about 25% more carbon per head than the UK, yet has just decided to go ahead with 23 unabated coal power stations, which will increase that differential still further.

[Mr Hayes]

I would never be so impertinent as to raise the policy of another sovereign state in such a call. However, my hon. Friend is right to say that the future of coal is clean coal. That is the way forward and it is why we are running our £1 billion competition. May I draw the House’s attention to the conclusion of the UK CCS cost reduction task force, whose members I met yesterday afternoon? It has said clearly that coal power stations equipped with CCS have

“clear potential to be cost competitive with other forms of low-carbon”

technology.

Royal Mail Privatisation

Debate between David Mowat and John Hayes

Tuesday 18th January 2011 Westminster Hall

[Mr Hayes]

I was about to say that stamps will continue to bear the sovereign’s head, which is right and proper. I hear what my hon. Friend says, and I share her view; it is important that we retain the iconic pillar box with the Royal monogram on. That is something that the Government will consider. I can say no more at this stage, but I know that my hon. Friend will want to take up that point and see what can be done.

In evidence to the Postal Services Bill Committee over recent weeks, there has been strong backing for the separation of Royal Mail and Post Office Ltd. I noted that no one made a case against that today. As I said, it was, I think, accepted by most Members in this House. They are different businesses that will benefit from focusing on different challenges. In his evidence to the Committee, Richard Hooper of Consumer Focus and Postcomm supported the separation of the ownership of the businesses.

In her evidence to the Committee, Moya Greene, chief executive of Royal Mail, said that it would be unthinkable not always to have a strong relationship between the Post Office and Royal Mail. To underline that point, Donald Brydon, Royal Mail’s chairman, pledged in his evidence that before any privatisation of Royal Mail could take place, a continued long-term commercial contract will be in place between the two businesses for the longest duration that is legally permissible—a point that was picked up by the hon. Member for Argyll and Bute (Mr Reid). Such a pledge provides a reassurance about the marriage between the two, which is essential to maintaining the post office network that we all feel so strongly about. This is done not for sentimental reasons, but because it makes good commercial sense. The post office network has an unparalleled reach and a very strong brand. As my hon. Friend the Member for Newton Abbot (Anne Marie Morris) said, we can be optimistic about the relationship. A stronger Royal Mail is more likely to secure the future of many more post offices. If we do not take the necessary radical steps to support and invest in Royal Mail, post offices will be at risk. That is something that we can look to with confidence, based on the belief that post offices not only provide important services, but are at the hub of local communities. The post office in my own village of Moulton, which is run by Gary and Jane, does an excellent job not just providing postal services but as a centre for all kinds of activities in the village. It is a shop, too, and provides a valuable local service.

As a representative of a rural constituency, I understand some of the concerns expressed by other rural colleagues. We heard from the hon. Member for North Ayrshire and Arran that there are concerns about the spread of the network—the universality. Let me make it clear that in terms of universality, the Bill will create a fundamental duty at the heart of the legislation for a six-day per week collection and delivery of letters at uniform and affordable prices. To do that, we need a service that is spread across the whole nation and not a partial service; we are committed to that and I personally feel very strongly about it.

It is important to say that the future success of the post office network will depend on its providing a fuller and wider range of services. I hear what my hon. Friend the Member for Warrington South (David Mowat) says about cost and subsidy. We can deal with that by allowing post offices to do more, thus ensuring that they can be profitable businesses. We are looking at a range of additional services—both local government and national Government services—that post offices can provide. Post offices can act as a front line for those clients or users that need to do things in their community in a way that is accessible and convenient. We are piloting a range of services that post offices can provide and, as a result of this debate, we will look at other things that Government can do to make the post office network more viable, commercial and profitable. I know that my hon. Friend is anxious about that and I understand why.

However, there will always be small rural post offices, perhaps in more remote communities, that will find it very hard to operate without subsidy. I do not have a problem with that. Post offices are so culturally and socially important that we need to take that on board. Certainly, all those that can be profitable should be profitable.

[David Mowat]

After the modernisation programme, how many post offices does the Minister think will be self-sufficient?

[Mr Hayes]

As part of the recent £1.34 billion funding package, there is a legally binding commitment to a minimum number of post offices—the Post Office is required to provide a network of at least 11,500 branches. As I have said, there will be no closure programme under this Government. I am confident that many more post offices can be made profitable, but I will not speculate on which post offices will take up which services in which locations; my hon. Friend can hardly expect me to do that.

I have just time to say a word about demutualisation, which was raised by the hon. Member for Edinburgh East (Sheila Gilmore). Demutualisation is not something that we see happening; indeed it will be specifically prohibited.

A better future for Royal Mail means a brighter future for post offices. This Government seek that brighter future and will deliver it; nothing less will do.

Oral Answers to Questions

Debate between David Mowat and John Hayes

Monday 15th November 2010 Commons Chamber

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

The hon. Gentleman will understand that the Government are acting on the basis of evidence. I assure him that our determination is to ensure that disadvantaged learners are protected. He will know that the evidence conducted for the Department and for the Institute for Fiscal Studies suggested that the deadweight costs of the current arrangements were at 90%. That is not acceptable; he must understand that.

[David Mowat (Warrington South) (Con)]

T3. The comprehensive spending review has set out that we intend to spend £16 billion on about 600 schools during the spending period as a replacement for the Building Schools for the Future programme. The Secretary of State will be aware that a number of initiatives, pursuant to BSF, were lost in Warrington. When does he expect to be in a position to announce the results of his capital review?