Oral Answers to Questions

Gerald Jones Excerpts

Tuesday 20th November 2018 Commons Chamber

[Richard Harrington]

It will come as no surprise to you, Mr Speaker, that I disagree with a lot of what the hon. Lady has said. She says the Cabinet is in meltdown. It is not. [Interruption.] The Cabinet is not in meltdown. On her substantive question about energy, to the best of my knowledge, offshore energy is producing a lot of jobs, including in Tyneside. [Interruption.] It very much is. She must be aware, as far as the customs union part of her question is concerned, of the importance of the Government’s proposals, which provide the benefit of a very close relationship with all the countries in the EU. They also mean that this country will be able to enter into negotiations to sign free trade agreements with countries all over the world.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

5. What assessment he has made of the potential effect of the merger of Asda and Sainsbury’s on (a) workers, (b) supply chains and (c) consumers.

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

Sainsbury’s has confirmed that there are no planned store closures as a result of the merger. The independent Competition and Markets Authority is investigating the effects on competition and has until 5 March 2019 to report. The CMA’s investigation is independent of Government and we must not pre-judge the inquiry. The Secretary of State wrote to the CMA in May on this issue and I met with the CEO of Sainsbury’s last month.

[Gerald Jones]

Sainsbury’s has indicated that it will look at price cuts of 10% under a merger with Asda, but it has also indicated that it would make efficiency savings of around £500 million. I know from this Government’s record that efficiency savings often mean cuts somewhere down the line, so what discussions has the Minister or the Department had with trade unions to ensure that all jobs—not just in store, but in distribution and warehousing—are safeguarded?

[Kelly Tolhurst]

The hon. Gentleman is right to raise concerns, because any merger and change will of course concern the workers in the organisations, but I have spoken with Sainsbury’s and it has been clear that the pay and reward structure that is already in place is not affected as part of the merger. We will continue our communications with the stores. As he will know, the CMA is currently looking at the merger and is due to report. We will be monitoring this, as we would in any such circumstances.