Delivery Charges: Scotland

Douglas Ross Excerpts

Monday 7th March 2022 Commons Chamber

[Douglas Ross (Moray) (Con)]

I am delighted to have secured tonight’s Adjournment debate on an important topic for my Moray constituents. The Minister has already put in a great shift at the Dispatch Box today, and I apologise for delaying him further. However, in my article in The Northern Scot this week explaining to my constituents that I was having this Adjournment debate, I said that hopefully we would get to it quicker than last Monday’s, which started at 1.07 am, so we have done a little better already.

If the Minister wants to blame anyone for being here at this hour, he should blame the Treasury. I originally secured this debate on the use of red diesel at ploughing matches, but I am very pleased that the Minister, who was perhaps worried about what might come out in an Adjournment debate, agreed to change excise notice 75 to ensure that ploughing matches in Moray, across Scotland and in the rest of the UK will no longer be subject to the potential change. I am delighted that we got that without an Adjournment debate—no pressure, Minister, but I now expect everything I ask for this evening to be delivered.

[Alberto Costa (South Leicestershire) (Con)]

I congratulate my hon. Friend on securing this debate. He talks about blaming someone for our being here at this time of the evening. May I ask his view? This is an important debate affecting the good people of Scotland, yet on the Opposition Benches I see no hon. Member from the nationalist party. Does that not demonstrate to the people of Scotland that the important topic that he is raising is simply being ignored by nationalist MPs?

[Douglas Ross]

Well, that is for others to decide, but I am grateful to my hon. Friend, who is a fellow member of the Select Committee on Scottish Affairs.

Before my hon. Friend and I joined the Committee, it had looked at this issue. I have also secured Westminster Hall debates on it, including one that the Minister responded to 15 months ago, and I have raised it at Prime Minister’s questions. I know that it concerns Members across the House and our constituents, particularly those of us in the north of Scotland and the highlands and islands, and I make no apology for raising it again.

The surcharges on the delivery of products bought by people in Moray and across many parts of Scotland are punitive and unfair and have been going on far too long. Businesses and couriers are treating my constituents and the people affected with utter contempt. It is completely wrong, and something must be done. To put into perspective how many people the issue affects, a Scottish Parliament briefing paper suggests that 440,000 people in Scotland live in areas affected by the surcharges. To put that into context, the same report says that 87% of adults in the United Kingdom buy online. That figure rose as high as 95% during the pandemic. That means that a big number of shoppers—95% of 440,000 people—are being punished not for what they want to buy, but because of where they want to buy from.

It is absolutely wrong that the issue is raised time and again, but no action seems to be taken by the businesses or the couriers to deal with the problem. The Scottish Parliament Information Centre’s report says that the additional cost of delivery charges in commonly affected areas, compared with the rest of Scotland, is £45 million. That is £45 million that someone has to pay because they live in Moray, Inverness or one of many areas north of Perth—not the cost of the products, but the cost to deliver them.

I would like to give some examples from my constituency, and one from slightly further afield, that I have been dealing with as the local MP. I have made it very clear that I want constituents to tell me when they have faced such problems, because I want to stop them. The only way we will stop them is by highlighting the injustice, highlighting the unfairness of the system and trying to get some action. I am glad that some action has been taken. The Advertising Standards Authority has issued several enforcement notices in cases that I have referred to it and in many others. Indeed, the Minister and I discussed that in our previous debate, but let me give just a few examples.

A constituent in Mosstodloch purchased a wallet with no delivery charge advertised, yet when it came to the checkout online £15 was added. The ASA issued an enforcement notice on that company, because it had advertised no additional charges to mainland United Kingdom. A Findhorn resident tried to order a battery for a strimmer and was told it would be £30 to deliver to the IV36 postcode, which was almost more than the cost of the battery itself. Another constituent in Dyke was quoted £15 to order a tap for his motor home, even though free UK delivery was advertised. Dyke, in Moray, is part of the UK. How do these companies not get it? Why do they think that somehow we are cut off? We are not—we are part of the mainland UK. Therefore, if they advertise “free delivery to mainland UK”, whether for a tap for someone’s motor home or for something else, the person deserves to get free delivery to mainland UK. A constituent from Forres ordered goods worth £89 and the company was offering free delivery on orders over £40. She put in her IV36 postcode and the delivery charge rose to £117. So from free delivery for purchases of over £40, for her purchase of £89 it then became £117. Unfortunately, on this one, the ASA stated that because the company did not say that the free delivery applied to the whole of the UK, it was not able to take action. I would be interested to hear the Minister’s thoughts on that. Free delivery was being advertised, but just because the company did not say it was to the whole of the UK it got away with it.

Another constituent from Findhorn had ordered £155-worth of specialist pipe insulation. Normal delivery was going to be £9.95, but they entered their IV36 postcode and an additional £40 was added, taking the total delivery cost to £50. In this case, the ASA did issue an enforcement notice, and I am pleased to say that the constituent got a full refund from the company. It accepted that it had done wrong in this case, even though it applied the charge in the first place. Another constituent put in an order for some garden equipment and although free UK mainland delivery was advertised, they were asked to pay a surcharge of £24 for “Scottish highlands”. We are not in the Scottish highlands. There is a Highland Council region, and Aberdeenshire and Aberdeen regions. Moray is a region on its own, yet we are again lumped in with the highlands. Finally, a product was ordered by one of my constituents in Elgin and they were told that the delivery charge was going to be £149.95. They then changed the address to that of a relative in Rothes, which is about 10 miles from Elgin and has an AB postcode, and there was no delivery charge whatsoever. So by travelling 10 miles within Moray one can go from a charge of almost £150 for delivery to having no charge at all. That just highlights issues with both businesses and couriers; they each try to blame each other, but they are both as guilty as each other and are imposing these charges when there is no good reason to do so.

I was looking at the debate that the Minister and I held in Westminster Hall some time ago, when we spoke about how companies must at least be up front. We might not like the small print but if they are up front about things, in some cases we have to accept it. I do not accept it, but they are also not being up front. Another constituent in Elgin bought a bed for £435 and the order went through and was completed, but several days later she was contacted to say, “Actually, we have looked at your address and there is going to be a £70 surcharge for delivery.” That happened days after the purchase had been accepted by the company and agreed with my constituent. They believed that they were going to pay a certain amount, only then to get a phone call or an email to say, “Actually, we’ve found out where you live, we think it is too far away and we are going to put on another £70.” That is indefensible on the part of these companies and couriers; I am sure the Minister would agree on that, and so something must be done about it.

I also said I would give one example from outwith my constituency, and I could have chosen literally hundreds. However, the example that I gave in a previous Westminster Hall debate—even previous to the one that I had with the Minister, because I have raised this issue a number of times before—was that it would sometimes be cheaper for me to buy an item in London, and instead of paying a charge to some company for it to be delivered to Scotland, pay for a seat for the gift I had bought, or some other parcel, on my easyJet flight.

That is no longer the best example that I could give. A resident of Inverness, Jim Oliver, was seeking to help his mother-in-law, who was trying to purchase a gardening tool online. The cost of the gardening tool was £40, but she was going to be charged £2,000 for delivery. [Interruption.] Oh, it gets worse! It gets a lot worse than that. Jim decided to try himself. He typed in the same product name, and the delivery charge came out, not more expensive than buying a seat on the easyJet flight to get it up to Inverness, but more expensive than the world’s most expensive footballer. They could have bought Neymar for less. The delivery charge for a £40 product came in at £2,001,997.

That was clearly a computer glitch, but I also want to highlight the fact that these companies just do not care. They literally do not care about their customers in parts of Scotland if they allow their system to say, “We will charge you more than the cost of Neymar to deliver this product to Inverness.” That demonstrates the contempt in which a number of these businesses hold our area, and the fact that they have got away with it for so long allows them to continue in the same vein.

I must give credit to the Advertising Standards Authority for the work that it does in this area. It has seriously tried to tackle the issue, and has been extremely diligent in pursuing cases that I have put to it. It has tried to deal with them by means of enforcement notices—I have given examples in which that has not been possible—but what is an enforcement notice? What does it do? It is a slap on the wrist. Enforcement notices are clearly not stopping other companies following similar practices, they are clearly not acting as a deterrent, and people in Moray and other parts of the north of Scotland are being treated completely differently from people elsewhere in Scotland and the United Kingdom as a whole. We need tougher enforcement from the ASA, and I think we should consider what further powers we could give it to take far stronger action.

I decided to return to that debate in Westminster Hall and remind myself of the points that the Minister raised in his response. I wonder if he can update us on some of the issues. Back then, he said:

“The consumer protection partnership chaired by officials in my Department continues to work on the issues.”

Can he tell us what work the partnership is doing, and what proposals it has advanced to him or to other Ministers? He also noted that

“Ofcom will be undertaking a review of its future regulatory framework for post”

—and, presumably, other items—

“over the next year.”—[Official Report, 9 December 2020; Vol. 685, c. 453WH.]

That will have reached a conclusion by now. I do not know whether there have been any delays as a result of the pandemic, but can the Minister tell us what the outcome was of Ofcom’s review?

In the past the Minister and his predecessors have been averse to the idea of legislating in this area, but does he accept that the longer we debate the issue—the more times I return to it, or it is raised by Members from my part or other parts of Scotland—while the current measures are not dealing with the problem, the more important it is to consider legislation? Why do 440,000 constituents in the far north and many other parts of mainland Scotland have to live with this day in day out, week in week out, year after year? For these prices are going up year after year. We read in parliamentary briefings that the cost for many parts of Scotland is going up and up. It was £45 million in 2021; what will it be in 2022 or 2023 if this continues?

Will the Minister seriously consider potential legislation? In the more immediate term, will he agree to meet me and some of the big companies involved—the couriers and some of the other companies that are most guilty of adding excessive charges for constituents in Moray and many other parts of the highlands and the north? We need to get these companies round the table and explain to them that the problems they are causing and the issues that this causes for local representatives and the Government have to be dealt with. At the moment, they seem to be continuing as if nothing is wrong, although, as I have tried to explain tonight, things are continuing to go wrong. We need a meeting with them and the Minister, sitting round the table, to hear their responses to these concerns and to the cases that I and other elected Members put to them. If they think that they are in the right, we need to hear the reasoning behind that, but if they accept, as I hope they will, that they are in the wrong for imposing these excessive charges, we need to hear what they will do about it. I hope that the Minister’s office will help to bring these people round the table and help to deal with the situation before it is allowed just to go on and on.

This is simply unacceptable. It was unacceptable when I raised it in 2017 in my maiden speech, it was unacceptable when I raised it with the former Prime Minister at Prime Minister’s questions, it was unacceptable when I raised it with the Minister’s predecessor in Westminster Hall and it was unacceptable when I raised it with this Minister in Westminster Hall. It is still unacceptable now, as I raise it in this Chamber in March 2022, that my constituents are forced to pay these excessive charges simply because of where they live. This is a postcode lottery. It is no longer acceptable to treat people in Moray and many parts of the country so differently from their friends and relatives in other parts of Scotland or the United Kingdom.

The time for action has long passed. It has not come quickly enough, and we now need firm action from the Government to deal with this issue. Once and for all, we need to deal with the problem that many people have faced for far too long. I hope that, in responding to this debate, the Minister can update us on any actions taken since this was previously raised in this House, tell us what more can be done and give some hope to the people of Moray as they look to the year ahead. It is never too early to mention Christmas, and people will already be thinking about purchases for the year ahead and going into Christmas—[Interruption.] Well, it probably is too early to mention Christmas, but genuinely, people look at purchases and are deterred from buying them, not because they do not want or need the product but because they are unwilling to pay these extortionate costs. The people of Moray and the people of the highlands and islands are watching with interest tonight to see what hope the Minister and his Department can give them that this long-running problem will soon be just a bad and distant memory and that we can look forward to a future when Moray and other parts of Scotland are not affected by these extortionate costs.

[Mr Deputy Speaker (Mr Nigel Evans)]

I wish you all a merry Christmas, and I call the Minister.

--- Later in debate ---

[Paul Scully]

My hon. Friend makes a good point. Businesses need to be competitive and open but, by choosing the wrong delivery partner, they are missing out on great consumers across Great Britain and Northern Ireland. As we have heard, there are remote parts of Northern Ireland and Moray, too. It is important that we are inclusive not just to tick a box but because it is the right thing to do and the practical and economic thing to do, too.

The deliverylaw.uk website established by Highland Council trading standards provides advice on delivery charges for consumers and businesses. Any consumer who believes those rules are being breached should report it through deliverylaw.uk so that incidents are recorded and appropriate enforcement action can be taken.

Furthermore, the Competition and Markets Authority and the Advertising Standards Authority have undertaken a significant volume of enforcement work to ensure compliance with transparency on charges and restrictions. The ASA issues enforcement notices to online retailers where parcel surcharging practices are raised, and it has achieved a compliance rate of over 95%. My hon. Friend the Member for Moray described one of the 5%, where, because of the way it was phrased, the ASA let them get away with it.

The CMA continues to issue advisory notices to the major retail platforms and has published guidance to retailers that sell via these platforms. It continues to work through primary authorities to ensure improvements in this area. The Chartered Trading Standards Institute has also produced a good practice guide on delivery charges, which is available on its business companion website and sets out clearly how businesses should comply with consumer law.

On legal compliance, our enforcement partners are continuing to take action where issues of non-compliance are brought to their intention. As guidance is freely available to all businesses, large or small, through both the business companion website and deliverylaw.uk, there is no excuse for businesses not to comply with their legal responsibilities.

As we have heard, in November 2020, the postal sector regulator, Ofcom, published updated information on how the parcels market was operating, as part of its annual postal service monitoring update. Ofcom found that operators take different approaches to the pricing of parcel delivery services. Some vary their prices by location, but others do not, so businesses have options.

Of the subset of suppliers that vary their delivery prices by location, some use a binary standard charge and an out-of-area charge and some set different prices for different areas. In other cases, the prices charged for parcel delivery are bespoke. Operators may start with a standard rate but will often negotiate charges on a bespoke basis with individual retailers.

As I have outlined in previous debates on this issue, some major retailers, including Argos and Wayfair, have taken positive steps and vastly improved their delivery services by removing surcharges for most customers in the Scottish highlands and islands. The parcel delivery market is competitive and the steps taken by suppliers to remove delivery surcharges will put downward pressure on other charges from other suppliers.

Ofcom is reviewing its future regulatory framework and consulting on its proposals. The consultation was launched on 9 December 2021 and closed on 3 March. Once responses have been considered, Ofcom will issue a statement in the summer of 2022-23—so in the next financial year.

In its review, Ofcom found that the parcels market is generally working well overall and that competition is driving benefits for consumers, but the evidence suggested that some problems for consumers still need to be addressed. Those problems relate to the handling of consumer complaints and contact-handling processes, as well as the fact that disabled consumers’ needs are not being met and they are more likely to experience detriment. Ofcom is therefore consulting on its proposal to issue guidance on how complaints should be handled and to require parcel operators to have in place policies that better meet the needs of disabled customers.

Ofcom is also examining improvements in respect of the accessibility and convenience of parcel services, including the expansion of pick-up and drop-off locations and the improvement of consumer control, such as through the ability for consumers to nominate delivery windows and specify delivery preferences. On geographical variations, or surcharging, Ofcom does not propose any new regulation at this stage but will continue to engage with stakeholders and policy makers.

[Douglas Ross]

The Minister will understand how disappointing that is. Ofcom has to treat this issue seriously. He has mentioned competition a lot. It seems that these businesses, and many of the couriers, do not really care about the north of Scotland and are quite happy to leave it to other people. That is a cost issue, but a significant proportion of Scotland’s population—and part of the UK population—continues to be affected by the issue and the response from Ofcom makes it look like the couriers do not care and nor does the regulator.

Oral Answers to Questions

Douglas Ross Excerpts

Tuesday 21st September 2021 Commons Chamber

[Kwasi Kwarteng]

I pay tribute to the hon. Member, who raises an extremely important point. I do not know Rob, but I am very pleased that his tireless work has been raised today. As I said, in the last fiscal year UKRI spent £15.9 million on MND research. We have had a wider offer for medical research charities—we announced £204 million for Research England in the fiscal year 2020-21—but I am very happy to meet him and see what more we can do to pursue this important topic.

[Douglas Ross (Moray) (Con)]

Lucy Lintott from Moray was Scotland’s youngest person to be diagnosed with MND, aged 19. Eight years on, she is living with fiancé Tommy Smith. They have an 18-month-old, LJ, and, on Hogmanay, they are expecting their second child, a little girl. It is believed that Lucy is the first person in the world to have had two pregnancies after diagnosis. Will the Secretary of State meet Lucy and other campaigners to see what we can do to support her family and so many others in Scotland and across the UK?

[Kwasi Kwarteng]

I thank my hon. Friend for raising in this House such an inspiring story. I would, of course, be delighted to meet Lucy and him to discuss how we can pursue further progress in this area.

UK Space Industry

Douglas Ross Excerpts

Thursday 4th February 2021 Commons Chamber

[Douglas Ross (Moray) (Con) [V]]

It is a privilege to contribute to this debate. I look forward to hearing the Minister sum up, because I wish to put a number of points directly to her.

Moray is not going to be home to a spaceport, but we have heard about other potential locations here in Scotland, particularly in the north of Scotland, from the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone), who has been an advocate for the Sutherland centre, and I am sure we will hear later from the right hon. Member for Orkney and Shetland (Mr Carmichael) about the plans up there.

Nevertheless, Moray is part of the process, particularly as it is home to Orbex. I have visited Orbex at the enterprise centre just outside Forres and was immensely impressed by the work there to be part of the UK’s space plans. It is great that Orbex is making high-value, high-invested jobs available here in Moray to develop and work with the Sutherland space centre. The jobs are greatly appreciated by the local community.

Chris Larmour, who heads Orbex in Moray, has been in constant dialogue with me about how we can continue to promote the company and its benefits here in Moray and about what Moray can offer as a base to Orbex and its teams. Chris was hopeful that I could put some points to the Minister and I agreed to set out some of his queries. He is looking for the Government to assist in the overcoming of any obstacles to the delivery of the Sutherland spaceport in Scotland, thereby helping to deliver hundreds of jobs and significant new economic benefit to the Moray region. Will the Minister look into what the UK Government can do to overcome any obstacles to the delivery of the Sutherland spaceport? Will the Government also consider working towards the development of reciprocal rights to launch UK rockets from American spaceports? That is another key issue for companies such as Orbex.

It is great that Scotland and Moray are leading Europe in the space sector through companies like Orbex, which has received strong support for an environmentally sustainable launch system from the UK Space Agency, the European Space Agency and private venture capital funds. This is a great news story not only for those parts of Scotland and the United Kingdom that will have spaceports, but for constituents such as mine here in Moray who can provide so much support and so many benefits to spaceports and to the local economy where they are based. We are delighted to have Orbex, providing high-quality jobs here in Moray, and I know that Orbex will appreciate the support of the UK Government and, in particular, responses to the points I have raised with the Minister.

UK Internal Market: White Paper

Douglas Ross Excerpts

Thursday 16th July 2020 Commons Chamber

[Alok Sharma]

No, this is not a power grab. As I have said, this is a power surge to the devolved Administrations. The hon. Gentleman talks about the consultation. I can tell him that the consultation follows the principles for a Government consultation. Yes, it is for a four-week period, but very many people and, in particular, businesses do not routinely close down over the summer. I would say to him that there is an opportunity for him and others to feed in to this consultation. I know this will be important for him and he will do it in a far shorter period time than four weeks.

[Douglas Ross (Moray) (Con)]

Does the Secretary of State agree with me that the nationalist narrative of a power grab has been well and truly burst when not a single nationalist can name a single power that Scotland will lose as a result of this? Indeed, hundreds—more than 100—powers will flow to Scotland on day one. Therefore, does the Business Secretary agree that this is not a constitutional issue, but an economic issue, and anyone standing in the way of this legislation is risking jobs, harming businesses and threatening the economy of our country?

[Alok Sharma]

I could not have put it better myself. My hon. Friend is absolutely right. This is about protecting jobs, protecting businesses and, ultimately, protecting livelihoods. That is why businesses across our country—across the United Kingdom—will welcome these proposals.

Business, Energy and Industrial Strategy

Douglas Ross Excerpts

Thursday 31st October 2019 Ministerial Corrections

The following is an extract from Business, Energy and Industrial Strategy Topical Questions on 22 October 2019.

[Douglas Ross (Moray) (Con)]

T10. I recently visited Orbex in Forres, which is heavily involved in the new spaceport at Sutherland and is seen as a sector leader with its new innovative launch vehicle. Will the Minister outline what support the UK Government can give to companies such as Orbex, which plans to bring 250 high-quality jobs to the region?

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

The Government support growing our national space capabilities, especially by establishing the new national space council, which will be chaired by the Prime Minister. We are supporting Orbex to develop an exciting new launch vehicle technology with a grant of £5.5 million as part of our industrial strategy. We are keen to work with it as part of the wider national space framework we are establishing.

[Official Report, 22 October 2019, Vol. 666, c. 808-09.]

Letter of correction from the Minister for Universities, Science, Research and Innovation, the right hon. Member for Kingswood (Chris Skidmore):

An error has been identified in the response I gave to my hon. Friend the Member for Moray (Douglas Ross).

The correct response should have been:

Oral Answers to Questions

Douglas Ross Excerpts

Tuesday 22nd October 2019 Commons Chamber

[The Minister for Business, Energy and Clean Growth (Kwasi Kwarteng)]

This subject has come up, and we need to look at how companies and exporters tackle serious carbon emissions. What they are doing in the Amazon is not acceptable. We need to engage with that and have a dialogue.

[Douglas Ross (Moray) (Con)]

T10. I recently visited Orbex in Forres, which is heavily involved in the new spaceport at Sutherland and is seen as a sector leader with its new innovative launch vehicle. Will the Minister outline what support the UK Government can give to companies such as Orbex, which plans to bring 250 high-quality jobs to the region?

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

The Government support growing our national space capabilities, especially by establishing the new national space council, which will be chaired by the Prime Minister. We are supporting Orbex to develop an exciting new launch vehicle technology with a grant of £5.5 million as part of our industrial strategy. We are keen to work with it as part of the wider national space framework we are establishing.[Official Report, 31 October 2019, Vol. 667, c. 3MC.]

Rural Areas in Scotland: Additional Delivery Charges

Douglas Ross Excerpts

Tuesday 2nd July 2019 Westminster Hall

[Douglas Ross (Moray) (Con)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I give my genuine and heartfelt thanks to the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) for securing this debate. I am both delighted and frustrated that we are here again to debate this matter—delighted because a Minister will respond to the concerns of MPs representing their constituencies across much of the north of Scotland, and frustrated because it is not the first time the hon. Gentleman has raised this issue, nor is it the first time I have raised it.

Since mentioning this matter in my maiden speech two years ago, I have mentioned it at Prime Minister’s questions, held a 90-minute Westminster Hall debate, raised it at Business questions and suggested that the Scottish Affairs Committee hold an inquiry into it, which it did. This matter has been raised many times, on the Floor of the House, in Westminster Hall and in our Committee Rooms. I have also met with the Minister a number of times to discuss this matter.

The issue of excessive and rip-off delivery charges affects not just the highlands of Scotland, but the whole of my Moray constituency. It is absolutely incredible that in 2019—in this day and age—couriers and companies still say that Moray and the highlands are not part of mainland United Kingdom. I do not know how many times we have to say this to get the message through, but they seem blind to the fact that Moray, the highlands, the north-east and other parts of Scotland are part of the mainland United Kingdom. One does not need to take a plane to get to Elgin or Caithness; it is all joined together as part of mainland UK and it should be treated the same.

[Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)]

At this point I want to congratulate the postmen and parcel people who work for Royal Mail and deliver six days a week to all areas, in all kinds of weather. All we are asking for in Royal Mail is a level playing field. Some of these couriers are charging ridiculous prices. We can do it; all we ask for is a level playing field for everyone. I congratulate all the postmen who do their work there.

[Douglas Ross]

I am not sure whether the hon. Gentleman might need to correct the record. As a former postman, he should have declared his interest to the House. He is clearly still a part of that, as twice in a short intervention he said “we”. I say that in jest, because he brings great experience as a postman from before he was elected to this place. It is useful to have his contribution, because those workers undoubtedly do a service. However, we are really challenging the couriers’ add-on prices, as the hon. Member for Caithness, Sutherland and Easter Ross set out clearly in his opening remarks. Someone might go online, view a product, decide that they want it and agree the price, only to find an additional cost on top of that simply because the company believes that they live too far away to deliver the product easily.

[David Duguid (Banff and Buchan) (Con)]

As a fellow Member of Parliament for the north-east of Scotland, I thank our friend, the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) for raising this important issue. I share my hon. Friend’s frustration at having to bring this issue up again. On the point that he has just made, I wonder whether he has had the same experience that I and others have had at the final check- out point online. I was ordering a sofa, which happened to be for my flat in London, but at the last minute the website said, “Not available for delivery in Scotland”—nowhere in Scotland, never mind AB or IV postcodes. I nearly refused to order it on principle, but I needed a sofa. There are great frustrations with getting deliveries to the north of Scotland, for example to Moray. I received an email last week from a constituent with a business in Peterhead, in my constituency. He was concerned that deliveries are going to Elgin and Aberdeen, but they are missing out what seems to be thought of as the extreme north-east corner.

[Douglas Ross]

I am grateful to my hon. Friend for raising that issue. He did not cancel his sofa on principle, but if he ever invites me round to his flat, I will not sit on the sofa on principle, such is the extent to which—

[David Duguid]

It was a sofa bed.

[Douglas Ross]

That is even worse! In all seriousness, my hon. Friend raises a valid point. He can get something delivered to London, but not to his constituency of Banff and Buchan. I will mention some examples that have been raised with me since I last held a debate on this matter, because there are some anomalies with the practice that these companies use. It is frustrating that the charge is added on at the end of the purchase.

I want to give a couple of examples. The first one was really remarkable. A constituent of mine in Fochabers went online and found the product they wanted. Their postcode for Fochabers in Moray is IV, like the rest of the highlands. When they put their postcode in, they immediately incurred a greater charge. He phoned up the company, which said, “We put this charge on all IV postcodes, but not AB postcodes.” My constituent happens to have another address in Clochan, which is three or four miles from Fochabers, but has an AB postcode. When he put in that address, there was no delivery charge.

What makes this even more remarkable is that the product was delivered by Parcelforce from its depot in Inverness, and to get from Inverness to Clochan, one has to go through Fochabers, to go further down the road to Clochan. There my constituent had free delivery, but had he wanted the product delivered closer to the Parcelforce depot, he would be charged extra simply because of his postcode. Not only do the couriers not understand that Moray and the highlands are part of mainland Scotland; they do not even understand the local geography and will deliver something further away at no cost, as compared with delivering something to a different postcode.

A constituent has emailed me another example, which I have written to the Advertising Standards Authority about. This constituent is a charity fundraiser. She wanted to purchase five tins to collect money for her charity. The tins cost £2.98 each. She was happy with that price and was going to purchase them for the charity. However, there was a £10.50 charge to deliver those five tins, because the charity, Outfit Moray, is based in Moray and has an IV postcode for its headquarters in Lossiemouth. The price to deliver the product was equivalent to the cost of three and half charity tins. It is simply wrong that charities, individuals, consumers and constituents are being punished in this way.

I want to give some examples of action taken in response to the hon. Member for Caithness, Sutherland and Easter Ross and other Members from all parties having raised this matter. Every time I get a case regarding this—I get many—I write to the Minister, with whom I am in regular correspondence, and I write to the Advertising Standards Authority, because it is wrong and unacceptable that the charge is added only after the purchase is made.

I have had two examples in the last couple of months where the Advertising Standards Authority has written back to say that it agrees. The first case involved chums.co.uk, which said it was offering free standard UK delivery for orders over £50. However, when the ASA received my complaint it investigated and agreed that IV postcodes appear to be charged a delivery fee. As well as that, “The delivery information section of the website states that there is a standard postage fee for the UK mainland and that is clearly not the case.” The ASA continues: “The delivery information on the company’s website looks like it is misleading and our compliance team are taking action by sending an enforcement notice.” Another case came up last month, this time involving amenity.co.uk. The ASA said that it agreed there was a problem with its delivery claims, and it too will be sent an enforcement notice.

I use those examples not because I condone what was happening, but to show what happens when we raise the matter and get in touch with the companies—I always write to the company and say that I am reporting it to the Advertising Standards Authority. It is encouraging that the ASA is now taking enforcement action to deal with this. However, we are only picking at the surface. Of all the constituents who contact me and those in the hon. Gentleman’s geographically vast constituency, which is punished in the same way as Moray, many will just give up, move on and buy something elsewhere. They should not be forced to do that. They should be able to purchase a product that anyone else in Scotland or across the UK could purchase for the same delivery price.

[Jamie Stone]

May I start my intervention with an anecdote? Many years ago, a letter from the United States of America arrived in my home town, addressed to “The representative of the Lord Jesus Christ, Tain”, and some wag in the post office wrote “Try Jamie Stone” on it.

The point about delivery companies is that they do not always leave the parcel where they should. I have heard too many examples of old ladies finding their parcel months later in the garden shed or some other completely inappropriate place.

[Douglas Ross]

As the Leader of the House sometimes says at business questions, that is an excellent topic for an Adjournment debate. The hon. Gentleman rightly raises an important issue that we could debate for many hours and links it to the important issue of excessive, rip-off delivery charges.

I support the hon. Gentleman’s efforts to support what MPs across the parties are trying to do on the issue. Considerable work has been done in the Scottish Parliament, both by the Scottish Government and on a cross-party basis. The Scottish Government have launched an excessive parcel delivery charges map, and they want constituents to contact their MSPs so that they can put their information on it—they say that that will highlight where the problem exists. However, although there are some examples outwith the north-east of Scotland, the highlands and islands, and Moray, I think that we can comfortably say that those are the areas most affected. I am sure that the map will tell us what we already know, but what we need is solutions.

It is right that the Advertising Standards Authority should take action when cases are raised, but we need it to be proactive rather than reactive. I am pleased to have been invited to join a new body that it has set up for MPs to work with it on the issue. Ultimately, we have to get a simple message across to the companies and the couriers. First, it is not acceptable for the companies to say, “That is a charge that our courier puts on.” They should change their courier. If a courier cannot tell the difference between mainland UK and the islands, or if it thinks that Moray and the highlands are an island, it does not deserve to be a courier. Secondly, the couriers need to wise up. Inflicting these charges on people in Moray, in the highlands and across the north-east of Scotland is unacceptable, inappropriate and damaging to their reputations and to the reputations of the companies that they pretend to serve.

I know that the Minister takes the issue seriously. She has met me and we have done some good work on the issue, but we need to do more. It is unacceptable that this practice continues in this day and age—we need to stop it once and for all.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

I thank the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) for securing this important debate. I am delighted to participate in it, although I wish it were not necessary, because it has a pressing relevance not just to people in the north-east, but to my constituents—particularly those who have the great pleasure of living on the islands of Arran and Cumbrae. Like a million other consumers across Scotland, they face the challenges of coping with unfair delivery surcharges and late deliveries, or are even excluded from delivery services altogether when shopping online.

We must be under no illusion, because this is more than an inconvenience; it has a genuinely negative impact on rural businesses as well as consumers. Citizens Advice research tells us that the UK parcels market has grown by more than 50% since 2010, and much of that growth has been driven by parcels sent to consumers who shop online. The Scottish Parliament information centre has costed additional parcel delivery surcharges for Scottish consumers, in comparison with the rest of the UK, at approximately £38 million per year, which is completely unacceptable. A shocking £11.4 million of that is spent by consumers over the Christmas period, simply because of where they live.

Despite a fair delivery charges campaign, the figures are rising, and at a time when more and more of us are shopping online, for a variety of reasons. That is self-evidently and necessarily the case for those who live in rural areas. Some of us pay what can only be described as a postcode tax, which is often imposed randomly by some retailers, although not all. Such charges are discriminatory and hit consumers and rural businesses in fragile areas very hard indeed. The problem is deeply concerning for my constituents and other rural constituents. The penalising of the delivery of goods bought online and the consumer exclusion are such that 10.9% of retailers exclude some Scottish islands from a delivery service altogether.

The statement of principles on parcel deliveries has had little effect on the problem. The UK statement of principles is designed to assist retailers in their policies on the delivery of goods purchased over the internet by individual consumers. It sets out best practice principles for how retailers can ensure that their delivery services meet the needs of consumers. The UK-wide statement of principles builds on the Scottish guidelines that were launched in November 2013. The principles have arisen following agreement between representatives of the UK and Scottish Governments, online retailers, parcel delivery operators and consumer organisations. The logic is that having companies follow the course of actions outlined in the principles is helpful in ensuring that the UK parcels delivery market works in the interests of consumers and businesses. However, the last time I checked—perhaps the Minister has more recent figures—only four out of 449 businesses had even heard of the principles.

There is no doubt that the UK Government need to use the Consumer Rights Act 2015 to support education for businesses about the requirements under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013. There also needs to be support for education for consumers about the information that they should be provided with and the minimum standards defined in the regulations. The principles were designed to secure a better, fairer deal for consumers in our rural areas, but not enough work has been done to increase delivery operator and retailer buy-in to the principles with a plan of action to promote the scheme.

There is no doubt that the Scottish Government’s road equivalent tariff ferry fare structure should have helped to reduce the costs of delivering goods to islands such as Arran and Cumbrae, but I am afraid that the reductions seem not to have been passed on to consumers. More work must be undertaken with delivery operators for our rural and island consumers across Scotland. We need to ensure that customers on islands and in rural areas can access a full range of delivery options to their local post office, local shop or any other place that is convenient to them and may reduce costs.

The Scottish Government have done all they can about the issue with the very limited powers they have, as the hon. Member for Caithness, Sutherland and Easter Ross pointed out, but not a great deal has changed in reality. The Scottish Government have unveiled the “Fairer Deliveries For All” plan to protect rural consumers and businesses and empower online shoppers to recognise and act on unfair and misleading delivery costs. The Scottish Government’s work on a voluntary code is also important, but the real power to put the matter right lies with the UK Government, who need to act. Our rural consumers and businesses need them to use their powers to regulate and do the right thing, so that they can access a fair deal.

I want a better deal for my island constituents on Arran and Cumbrae, and for rural constituents across Scotland and the UK. That is why I support a people’s delivery guarantee to pull together all aspects of delivery charges and guarantees, and to ensure that consumers are getting the fair deal that they deserve—not being misled by claims that delivery will be free, only to be told during or after purchase that that is not the case. The Minister may tell us that the Advertising Standards Authority launched a crackdown last year on misleading claims about rural delivery charges to consumers, but that has not really delivered the change that rural communities need.

[Douglas Ross]

I understand the hon. Lady’s argument and her point that more could be done, but I have given concrete examples of the ASA taking action. We should at least recognise that companies are now receiving enforcement notices, which was not happening in recent months and years.

[Patricia Gibson]

I am aware that the hon. Gentleman mentioned that the Advertising Standards Authority has been launching initiatives to crack down on such practices, but my point is that the kind of real change that he and I hope for has not come about.

A million consumers in rural Scotland face punitive surcharges. That has to stop. There needs to be better and greater dialogue between the UK Government and the delivery operators. The UK Government can and should regulate charges. Concrete and decisive action is needed to ensure that consumers in large areas of Scotland do not face higher delivery charges or even have their orders refused.

I first spoke out on this issue four years ago, weeks after first being elected as an MP, and in that time I have seen the Scottish Government do what they can to improve a bad situation over which they have no real power. This Parliament and this Government have the power to deliver the fairness and the inclusion that is needed. I urge the Minister to use her good offices to deliver change at long last. For the most part, self-regulation has failed. I really hope that we will not still be debating this injustice four years from now. We know what the issue is and we know that it can be remedied, so I hope that we can stop endlessly debating it and instead act. It really is time that my constituents on Arran and Cumbrae, and rural consumers right across Scotland and the UK, are no longer disadvantaged by this postcode tax.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

It is a pleasure to serve under your chairmanship, Mr Hollobone, and I congratulate the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) on securing this important debate on an issue that continues to be important for his constituents and those of other Members. I thank all hon. Members for their contributions and the passion with which they represent consumers in their communities.

As the hon. Gentleman will remember, we met last November to discuss his concerns about this issue and we have since corresponded, including my recent responses to the parliamentary questions that he has tabled. I understand the concerns that he and others who are here today have raised that consumers in some parts of Scotland are being charged more for delivery than those in other parts of the UK. I also recognise that similar issues exist for consumers in Northern Ireland.

I am pleased to take part in the debate and to outline the progress that has been made since this issue was last debated in Westminster Hall in a debate responded to by a previous Minister, my hon. Friend the Member for Stourbridge (Margot James), back in December 2017. The Government are committed to promoting growth in the UK economy. The growth in online shopping is increasingly important in achieving that and it is of particular importance to rural communities, where access to physical retail outlets is limited. As hon. Members have said, it is crucial that retailers are up front about their delivery charges, including where they deliver to, what they charge and when premiums apply. Consumers will then know where they stand and can make an informed decision before they purchase. That is what the law requires.

The Government strongly encourage businesses to provide consumers, as far as possible, with a range of affordable delivery options. To help to achieve that, the Government have ensured that everybody, including retailers, has access to an affordable postal service for deliveries across the UK under the universal service obligation, which has been mentioned in the debate. Through the universal service obligation, Royal Mail delivers parcels up to 20 kg, five days a week, at uniform rates throughout the UK. Let me make it clear that it is up to businesses themselves to determine the most appropriate delivery option for the consumers of their products. There are no rules to prevent differential charging between businesses for deliveries, and I do not believe that, for example, imposing a price cap is a practical answer. We should not seek to force retailers to use a specific supplier, such as Royal Mail, because competition in the delivery market is an important driver of efficiency. A competitive market should be a sufficient incentive to put pressure on charges applied by retailers and delivery operators.

There are positive signs that things are changing and businesses are listening. Wayfair took the decision earlier this year to scrap delivery charges for orders over £40 to anywhere in the UK and to charge a standard rate of £4.99 for orders below that threshold. That type of commercial decision will set the company apart from its competitors, drive competition and lead to lower costs. On the delivery side, Menzies Parcels launched a highland parcels service last year, which enables delivery to a virtual address for onward delivery at a fixed price.

Provided that consumers have the information they need at the point of purchase and the ability to shop around, shopping around is effective. Research from December 2017 shows that 59% of those faced with a surcharge often, or always, find the item elsewhere online. However, I can reassure hon. Members that the Government are not complacent. The Consumer Protection Partnership, chaired by my officials in the Department, has recognised the issue as a priority that needs to be addressed.

As hon. Members know, the CPP has been looking over the past year to improve online retailers’ compliance with consumer protection law and considering concerns raised about the level and fairness of parcel surcharging. Its work has involved partners including Citizens Advice Scotland, the Consumer Council for Northern Ireland, the Advertising Standards Authority, and the Competition and Markets Authority. The partners have been working with both the parcel and retail industries and other external organisations, including Ofcom. The work has included liaising with bodies representing both operators and retailers to try to understand the pricing models and structures that influence pricing decisions. The aim is to help industry—both parcel operators and retailers—to find a solution that works for all parties, including consumers.

We have also been liaising with officials in the Scottish Government, who launched a fair delivery action plan last November that maps both delivery hotspots in Scotland and what might constitute a fair charge. The CPP work will be informed by the outcomes and conclusions of that action. The CPP also worked with highland trading standards, the Citizens Advice consumer service and Advice Direct Scotland to launch the delivery law portal last year, which will gather information about delivery charges and parcel surcharging to inform the work and support enforcement. In the past year, the portal has received up to 1,000 hits per day. Referring potential breaches and unfair practices to the site will help enforcement agencies to ensure that retailers meet their legal obligations.

Significant work has been undertaken by the ASA and the CMA to ensure that businesses comply with the legislation, and both have acted swiftly where that has not happened. The ASA, which is responsible for ensuring compliance with the British code of advertising, sales promotion and direct marketing, has issued more than 200 enforcement notices to online retailers regarding their parcel surcharging practices and has achieved a compliance rate of more than 95%.

The CMA has issued a number of advisory notices to major retail platforms and, as a result, eBay and Amazon have reviewed and improved their policies and guidance for retailers who sell via their platforms. However, on the back of this debate, and the intelligence mentioned by the hon. Member for Caithness, Sutherland and Easter Ross that suggests that Amazon may be taking a retrograde step in what it allows its online retailers to do with delivery charges, I would be happy to raise the matter directly with Amazon. I would be very grateful for any information that could be provided to me as the Minister, and I thank the hon. Gentleman for raising the issue.

I reiterate that the advisory notices are making companies such as eBay and other online platforms look at their practices and review them. The CMA continues to work through primary authorities to ensure continued improvement in this area. On the legal compliance side, significant progress has been made and our enforcement partners will continue to monitor and take action where necessary.

I want to touch on a few of the issues hon. Members have raised, beginning with the hon. Member for Caithness, Sutherland and Easter Ross. He is right to highlight that we expect more of our online retailers and that they should be up front and transparent with their consumers. Applying large surcharges after a purchase has taken place is therefore something we take seriously on the enforcement side. I concur with what my hon. Friend the Member for Moray (Douglas Ross) said about when he has had issues and has been able to get the ASA involved to carry out enforcement. That is highlighted by the number of enforcement notices the ASA has levied over the past year.

I highlight again that the CMA has issued, and will continue to issue, advisory notices where it sees fit. My hon. Friend the Member for Moray was absolutely right to raise a concern about postcodes. Such issues need to be raised directly with retailers. I co-chair the Retail Sector Council with Richard Pennycook and, although this is not a workstream within the council, I commit here today to mention it at the next meeting as an issue that particularly affects Scottish consumers. At least then we can ensure that from a knowledge and a lobbying point of view those retailers understand that there are problems for their Scottish customers.

Companies are missing out on business when they choose to employ couriers that charge large surcharges for deliveries into the highlands. If the information is transparent, the consumer has the opportunity to shop around, and we have seen from research that 60% of consumers will do that and will find a cheaper price or a different supplier. Retailers need to understand that they are potentially missing out on a very valuable market by being restrictive with the Scottish market. The hon. Member for North Ayrshire and Arran (Patricia Gibson) is absolutely right about Scottish consumers. The evidence suggests that people in Scotland pay 30% more for their deliveries, and in the highlands the figure can go up to 50%. That is why the CPP’s work has yet to be finished; we are still monitoring the matter and will continue to engage with the industry and retailers.

I am not sure whether I have stood with the hon. Member for Sheffield, Brightside and Hillsborough (Gill Furniss) and spoken about Scottish surcharges, but we have spoken about most things consumer. She is absolutely right to challenge me on when the potential White Paper will be launched. I can assure her that I have been particularly interested in and working on the enforcement side and, although I cannot guarantee a date today, we hope to introduce it as soon as possible. She is right to highlight the beauty of our universal service, which offers 20 kg at a fixed price to anywhere in the UK, and it is a shame that some retailers have moved away from using it.

We can never forget that the hon. Member for Coatbridge, Chryston and Bellshill (Hugh Gaffney), who is no longer in his place, is a postman. Every opportunity he gets, he bangs the drum on behalf of Royal Mail, our posties and the great service they provide. It is correct that businesses can choose to use different couriers. Some businesses will argue that in certain cases, further costs are incurred for delivering within Scotland and the highlands, which need to be passed on to the consumer. However, we are committed to continue working on that.

[Douglas Ross]

On the point that the Minister has made about further costs sometimes being involved, I take her back to my example, in which companies are not looking at the costs involved; they are simply looking at a postcode. In Moray, when they deliver further because the address has a different postcode, some companies charge no more for delivery than they do for an address that is closer to the depot. If companies were looking at it strategically, based on their costs, I could maybe understand it, but they are not; they are taking a blanket approach for any IV postcodes, and that is not right.

[Kelly Tolhurst]

I agree; my hon. Friend has highlighted a particular example. Since he has been elected, he has spoken with me many times, and he is known as a champion in this area. He has been pushing me as much as any constituency MP to take action. He has raised the issue of postcodes with me, and he is right that in that particular circumstance, there seems to be an absolute unfairness for the Scottish consumer. That is why one of the most important things is that we are working with couriers and highlighting the unfairness of that example.

We are putting pressure on businesses to make sure that when they instruct a courier with a contract, they do so with the best interests of their Scottish and Northern Irish consumers at heart. In some cases, we are talking about large retailers that have buying power, and they have the ability to go into negotiation with those couriers and negotiate better prices and services. I am particularly concerned about the small online retailers that do not have buying power with the couriers and, because of the number of parcels they send out in a day, cannot negotiate with them to perhaps get those surcharges reduced. My hon. Friend the Member for Moray is absolutely right: we need to continue to move forward and get more transparency.

I welcome the work that the Scottish Government have been doing on this, because they are close to this area. We in the Department for Business, Energy and Industrial Strategy and the CPP will keep engaged with the Scottish Government, and a lot of their work and its results will inform what we are doing with the CPP. I understand hon. Members’ frustration about what they perceive as a lack of progress, but I believe we have made progress, although it may not have been along the lines they would have liked to see. We have taken enforcement action; we are looking at this area, and it is being monitored. It is also right that we continue to do our best to make retailers consider their consumers who are being disadvantaged, because in not being able to supply products to those Scottish consumers, those retailers are ultimately the ones that are missing out. I congratulate the CPP on its work to ensure that when consumers purchase goods online, information is up front and transparent, and to take action swiftly when that is not the case.

Although there might be no quick fix on this issue, and although I am unconvinced at this moment about the need for further legislation, that does not mean that the issue is being ignored. I look forward to hearing about further progress through the CPP’s work and the Scottish Government’s initiatives. I am happy to update Members about progress as that work continues, and I thank the hon. Member for Caithness, Sutherland and Easter Ross for having secured the debate.

I understand the concerns of Members. After the next meeting of the Retail Sector Council, I commit that I will write to Members present today to outline what I was able to raise there. This is about a two-pronged attack: dealing with the couriers, but also making the retailers recognise that their decision making has an impact on consumers in Scotland and Northern Ireland. As the consumer Minister, I of course want there to be fairness and transparency for consumers throughout the United Kingdom, including those in the Scottish highlands and mainland Scotland.

Oral Answers to Questions

Douglas Ross Excerpts

Tuesday 11th June 2019 Commons Chamber

[Clive Lewis (Norwich South) (Lab)]

11. What plans he has to help ensure that solar power is (a) accessible to and (b) affordable for all households.

[Douglas Ross (Moray) (Con)]

19. What plans he has to help ensure that solar power is (a) accessible to and (b) affordable for all households.

[Wera Hobhouse (Bath) (LD)]

20. What plans he has to help ensure that solar power is (a) accessible to and (b) affordable for all households.

--- Later in debate ---

[Chris Skidmore]

The hon. Gentleman mentioned the drop in solar installations, which came about at the end of the feed-in tariff scheme. March was a record month for installations in the last two years, as we saw a rush for applications before the scheme closed. We had a question earlier about fuel poverty, and the point about the feed-in tariff is that, although it was important at the time and helped 850,000 people to use solar panels on their households, it was going to cost £30 billion, which would mean an average of £14 on every single household’s bill. We must now look into moving forward so that we can take a locally adopted position and ensure that we can generate a market.

[Douglas Ross]

I will try to be more positive than the hon. Member for Norwich South (Clive Lewis), but there has been concern among the industry, including AS Solar, about the proposed changes for reduced rate VAT for energy-saving materials. This presents a roadblock for many of the 60% of households that hope one day to get photovoltaic and battery storage, so will the Minister meet me urgently to discuss the matter to ensure that the solar industry gets this support from the Government?

[Chris Skidmore]

I thank my hon. Friend for raising those points, which reflect what the hon. Member for Norwich South (Clive Lewis) mentioned in the previous question. This obviously comes on the back of a specific European Court of Justice ruling. I understand Members’ concerns and sympathise with the industry, but I reassure the House that VAT continues to be zero rated for installations on new build housing. I will happily meet my hon. Friend to discuss the opportunities for future change.

Climate Change Policy

Douglas Ross Excerpts

Tuesday 23rd April 2019 Commons Chamber

[Claire Perry]

I neglected to mention the £8 million we have put into local energy partnerships. We often find that local authorities have lots of ambition but not necessarily the skills, and we want to make sure they have them and the investment. I also referenced the Salix pot, which is available for many local government buildings, which are also an important part of the built environment.

[Douglas Ross (Moray) (Con)]

Solar energy plays a crucial role. Last month, I met the Minister and Moray-based AES Solar, which explained its concerns about the cliff edge the industry was facing because of a change in policy. More than three weeks later, that policy gap still exists. I am sure she accepts the urgency of this issue, so can she tell us when the Government will publish their smart export guarantee policy?

[Claire Perry]

It will be published as soon as possible. I thank my hon. Friend for that meeting. As he will know, energy companies are voluntarily bringing forward what are in effect smart export guarantee prices, so those price signals are already coming through. As I said, we want to get it right. We do not want to find, as we did with feed-in tariffs, that we have committed more than £30 billion, as we will have done over the lifetime of that scheme, to deliver a relatively small number of installations. We want to future-proof the smart export guarantee and we want to make it stick.

Community and Sub-Post Offices

Douglas Ross Excerpts

Wednesday 27th March 2019 Commons Chamber

[Gavin Newlands]

I totally agree. The first thing that has to be done, though, is to increase the rates that make post offices viable in the modern age. I hope the Minister will take that step.

In 2018, sub-postmasters were far more likely to state their intention to close in the coming year than small businesses in general, with 22% intending to close or downsize their operation. Those with such plans overwhelmingly came from deprived areas. Sub-postmasters also face increasingly difficult working conditions, with often 40-plus hours being dedicated just to the post office side of their business and 27% of them working longer hours in 2018 than 2017. They average fewer than 10 days’ holiday each year, and one third took no time off whatsoever. They also face less take-home pay, with 61% taking home less in 2018 than 2017, 76% making less than the national minimum wage for hours worked and 19% of them or their partners taking on extra work to supplement their income.

Since network transformation, many post offices designated as local post offices, such as Kirklandneuk in my constituency, have had some services removed, such as Parcelforce services and passport services, which may otherwise cross-subsidise the lack of remuneration for banking services. Clearly that would be less of an issue were they simply paid a fair rate from the banks.

[Douglas Ross (Moray) (Con)]

Will the hon. Gentleman give way?

[Gavin Newlands]

I will give way if the hon. Gentleman promises to be brief, and I congratulate him on the birth of his child.

[Douglas Ross]

I am very grateful to the hon. Gentleman for that. I have done my bit for the Post Office recently, with the number of cards I have been receiving since the birth of my child—although perhaps 35 cards did not have a stamp put on them, because I have not had any from SNP Members so far, but I have had many congratulations, which I am grateful for.

I have raised this issue a number of times. We are fortunate that the director for Scotland for the National Federation of SubPostmasters, Paul McBain, owns post offices in Moray. An issue that comes up time and again is that the public are not aware of the wide range of services that are available in post offices. They know what was historically available, but much more is now available, and we need to promote that message, to encourage more of our constituents to use post offices rather than online services.

[Gavin Newlands]

I thank the hon. Gentleman for his intervention. That is certainly the case, and the survey bears that out; that is the belief of sub-postmasters. But at the end of the day, more customers going into a post office to use the services will just swamp it and perhaps make it an even bigger loss-making venture than it currently is. We need to sort the rates out as well.

Bridge of Weir post office, which I have raised in this place in the past, has serious concerns about its long-term financial viability. After making a small loss last year, it anticipates that the losses will continue to rise. All told, if this continues, it expects its accumulative losses over 10 years to reach £70,000, despite the centre being run almost entirely by volunteers, with just one paid member of staff in the post office.

When I previously raised the Bridge community centre post office, in asking the Leader of the House for a debate on this issue, I pointed out that despite being the textbook definition of a community institution—run by the community for the community, because no retailer would take up the franchise—it receives no community subsidy from the UK Government, and this is regrettable. Owing to the Government’s rules on distance to other retailers and to other post offices, it does not qualify for any support, but with a dose of common sense, this would be entirely avoidable.

Let us remember that no other Bridge of Weir retailer wanted to take this on. In addition, the Bridge’s other retail offerings—tea and coffee, cards, second-hand books—do not operate in competition with any other Bridge of Weir retailer. There is another post office within the three-mile limit, which also rules out community status. However, the community designation ignores local public transport links, which Bridge of Weir had gei few to start with, and recent cuts have eviscerated the village’s bus service. In addition, the next closest post office is a 10-minute walk from the nearest bus stop, meaning that access, even with an adequate bus service, is a huge issue.

This all said, I understand the need for community status criteria to be in place, but it is clear to me that we need to look again at these criteria, or to allow for common sense exceptions in places such as Bridge of Weir. The community subsidy is still vital as it supports many branches that might not otherwise be commercially viable. Under current plans, the Government subsidy to the post office is due to be cut in the coming year and to end entirely in 2021, but I would strongly urge the Minister to reconsider this.

The National Federation of SubPostmasters’ latest study found that, last July, 17% of community model branches were actually closed. This is alarming as they are potentially the very last store in a local area. The community subsidy is therefore letting many post offices fall through the net at the current rate, let alone with a further reduction or indeed its removal. This is not a promising outlook for the future of the post office network.

In too many of our small and rural towns, the local post office is often the last place where a face-to-face, human service is available. With such a wide array of duties—handling mail, banking, benefit administration and so on—it is understandable why the post office has continued to be such a vital lifeline to so many of our communities. I therefore urge this Government to listen to sub-postmasters to see what more they can do to support them in the short, medium and long term. They should not be afraid to stand behind the Post Office—let us not forget that we own it—and use their influence to ensure that it gets a fair and equitable deal with the banks that now rely on post offices to provide their services.

I urge the Minister to rethink the Government’s community designation to take into account local geography and factors such as public transport links in our communities. After speaking to my constituents, and I am sure that others in this place will have found the same, the current community designation leaves many community post offices—in practice, if not designation—out to dry. Indeed, the Minister must ensure that the community subsidy does not end in 2021. If indeed it were to end, I dread to think of the number of towns and villages left without a bank or a post office at all.

Given that the vast majority of the post office network is made up of sub-postmasters, we should be concerned when they tell us that they are overworked and underpaid, and most of all when they tell us that their financial futures are perilous. I hope the Minister will commit to meeting me to discuss this further.

The local post office has a revered position in our public life, standing through centuries of change, turmoil and political drama. It is important to note that times have changed, and the modern digital age has not been to the advantage of the post office. I only hope that we can maintain and protect a sustainable post office network for all our communities. The Government have a pivotal role in securing this vision, and I urge the Minister to listen to and to heed all the points raised by many Members in this short debate to ensure a secure future for our post offices.