Oral Answers to Questions
Gill Furniss Excerpts(2 years ago)
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Mr Rees-Mogg
There are focused and targeted schemes to help with energy insulation. The hon. Lady pooh-poohs £1 billion, but £1 billion is serious money, and it is going to help the households in the greatest need. A lot of work is being done with social housing landlords, but there are things people can do that lower the cost of their energy without causing any lack of warmth, such as turning down the boiler flow temperature, which almost all households can do. That will be a saving for them on the cost of energy and will make their heating more affordable; it will save energy but also reduce bills.
Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
The Minister for Industry (Jackie Doyle-Price)
The best way we can help deprived communities is by creating good jobs and growing the economy. By cutting red tape and boosting innovation, we are enabling more businesses to create more high-quality jobs. Cutting national insurance will encourage job creation and ensure that workers have more of their own money, but Government can also do their bit to help projects that will facilitate economic growth, and I am pleased that some £87 million is being spent in Sheffield at present.
Gill Furniss
According to recent polling, 69% of my constituents are worried about not being able to pay their energy bills. They are terrified for the future, with prices set to rise in April, but the latest new Prime Minister has shamefully boasted about taking money away from deprived areas like mine. Does the Minister agree that Britain needs a general election now, so that the public can have their say on their future?
Jackie Doyle-Price
The hon. Lady will not be surprised to hear that I do not share that opinion. She will appreciate my sincerity when I say that I am very concerned to do my bit to make sure that those in deprived communities feel reassured by the support they are getting from this Government. We will make sure that her constituents continue to get the support they need, but the best thing we can all do is give that message of reassurance, not seek to play party politics by calling for a general election.
Oral Answers to Questions
Gill Furniss Excerpts(3 years, 4 months ago)
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Anne-Marie Trevelyan
As at the end of December 2019, the east midlands region produced more than 5,500 GW of electricity from renewable resources, including nearly 1,600 GW from offshore wind. To break that down, 1,534 of the 88,000 renewable electricity installations were in the Kettering constituency, including photovoltaic, onshore wind, anaerobic digestion, landfill gas and plant biomass. This is generating 173 GW, or enough power to power 45,000 homes.
Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)
The Government are absolutely committed to ensuring that anyone entitled to be paid the minimum wage receives it. Since 2015, we have more than doubled the enforcement budget to almost £30 million and ordered employers to repay £100 million to 1 million workers.
Gill Furniss
The Low Pay Commission has called on the Government to recruit a new director of labour market enforcement as an urgent priority, but the Government have dragged their feet for almost a half the year while claims are falling and waiting times are rising. Can the Minister inform the House when that vital post will be filled? And “in due course” simply does not cut it.
Oral Answers to Questions
Gill Furniss Excerpts(4 years, 4 months ago)
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Alok Sharma
The hon. Gentleman will know that we are committed to being a science and R&D superpower, which is why we have committed to spending £22 billion a year by 2024-25 and to reaching 2.4% of GDP by 2027. The discussions with the EU are ongoing, and we will see what they lead to.
Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
Jeff Smith (Manchester, Withington) (Lab)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)
I have met regularly with a large number of representatives of hospitality organisations to discuss the issues that they are experiencing, including through the BEIS ministerial taskforce on pubs and restaurants and my own weekly call with sector representatives, the next of which is this afternoon.
Gill Furniss [V]
I, too, record that my thoughts are with Jo Cox’s family today.
The hospitality sector has faced an unprecedented challenge due to coronavirus, which has had an impact on many businesses in my constituency of Sheffield, Brightside and Hillsborough. At the start of the outbreak, the Prime Minister said that he would do whatever it takes to support individuals and businesses. Will the Government therefore extend the full furlough scheme to ensure that the hospitality sector survives and workers in the industry do not add to the shocking unemployment figures released today, and, ultimately, to protect our communities from a further spike of this terrible virus?
Paul Scully
Indeed, Sheffield City Council has paid £87 million to 7,329 business premises. We have provided an unprecedented package of financial support to businesses in the hospitality sector. We continue to work with them. We continue to extend the furlough system and make it flexible, in order to have part-time furloughing, so that people can start to come back to work. It is important, however, that we get the guidance out so that we can work with the hospitality sector to get it to reopened, so that it can start to bounce back.
British Steel Industry
Gill Furniss Excerpts(4 years, 8 months ago)
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Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
It is a pleasure to serve under your chairpersonship, Sir Charles. I congratulate my hon. Friend the Member for Aberavon (Stephen Kinnock) on securing this important and timely debate. As a long-serving member of the steel APPG, he has been at the forefront in fighting for the future of the steel industry and communities that rely on plants across the UK. I also pay tribute to all the members and former members of the APPG who have kept steel high on the Government’s agenda.
The steel industry in the UK has faced many challenges in recent decades, particularly in the past few years. High energy costs and business rates, uncertainty among international buyers about Britain’s future trading relationship with the EU and USA, and the need for certainty about Government procurement have all contributed to increasing concern within the steel sector. Despite those challenges, the steel sector is adaptive and passionate and, with the right amount of support, will prosper.
Over the past three years, I have met steel companies, trade unions and trade bodies. They have all had the same consistent message about what the steel sector needs to succeed. We have been waiting since the launch of the industrial strategy White Paper in 2017 for a steel sector deal to be implemented by the Government. It is time that the Government brought that forward to deal with the many challenges that the industry continues to face.
I will try to skip through most of my speech, because it is important that the Minister answers a lot of the points that have been made. I will just reflect briefly on reducing energy prices. That has been a major ask, and many of our APPG members here, particularly my hon. Friend the Member for Newport East (Jessica Morden), have spoken eloquently about the need to deal with it. The high business rates are just ridiculous. We need plant and machinery removed from business rates; that would boost investment and bring the UK into line with international practice.
Large-scale infrastructure projects provide vast opportunities for steel. Projects such as HS2 contribute towards the 3.8 million tonnes of steel identified in the 2019 steel pipeline. The UK steel sector can and should play a significant role in providing that steel. Investment would secure 6,000 new jobs and an additional contribution of £3.3 billion to the UK economy. The Treasury should sign the UK steel charter and commit to maximising the supply opportunities for steel producers.
The section 232 tariffs imposed by President Trump should be at the forefront of any future trade talks with the USA. It is important that we ensure that the British steel sector is exempt from the punitive tax that was intended to prevent Chinese dumping. British jobs should not be put at risk because of Trump’s trade war.
In July 2019, the Under-Secretary of State for BEIS committed to providing £66 million to support foundation industries, including steel, through the industrial strategy challenge fund. Will the Minister update us on the progress made on that, and when the tangible benefits should be felt by the steel sector?
The concerns of UK steel manufacturers and parliamentarians must be heard and addressed. The long-awaited steel sector deal must be published without delay, to allow the industry to plan for the future with confidence, so I ask the Minister when he will publish a comprehensive sector deal that addresses the concerns of steel manufacturers and parliamentarians. Our steelworkers are well-paid, highly-skilled professionals, well placed to deliver the green revolution that our planet badly needs. I beg the Minister to give them the support they need to help us to do just that.
Sir Charles Walker (in the Chair)
Minister, you have until 5.53 pm at the latest to sit down, so that we can allow the mover of the motion, Mr Kinnock, to wind up.
Post Office Network
Gill Furniss Excerpts(4 years, 8 months ago)
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Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
It is a pleasure to serve under your chairpersonship, Mr Gray. I congratulate the hon. Member for Motherwell and Wishaw (Marion Fellows) on securing this important debate. She has played a key role in keeping the viability of the post office network in the minds of Ministers and the public. I have been pleased to work with her, the Communication Workers Union and many others on the important issues facing post offices across the country.
My hon. Friend the Member for Brentford and Isleworth (Ruth Cadbury) and the hon. Member for Strangford (Jim Shannon) both spoke eloquently about their local issues, many of which are reflected throughout the country, particularly access to cash, the loss of community post offices and the plight of sub-postmasters, who are not adequately recompensed for the very important services they provide.
The Horizon trial and its fallout have clearly put the debate in a different context from last April’s debate on the network. We have had opportunities to discuss Horizon, and there are more opportunities to come, but I appreciate that the subject of the debate is somewhat distinct from that. Some essential context from the trial must be mentioned, though, with warnings from Post Office Ltd about the “existential threat” that the trial posed to the future of the company. The implication is that the financial consequences of the scandal may have an impact on the funding available to the network.
In the fight for justice for wronged sub-postmasters, we must not lose sight of the rest of the network. Ensuring that it is properly funded for the future is key. It is clear, even before we understand the full impact of the trial on the finances of Post Office Ltd later this year, that the network is hugely reliant on the network subsidy payment. The legal and compensation costs that the business will bear will make the Post Office hugely reliant on Government support.
The Government are hiding behind the idea that the Post Office is an independent commercial business, but the need for public support at critical moments means that the Government can and must play a far greater role in shaping the future of the Post Office, rather than simply providing credit and monitoring basic targets. In truth, since the separation of Post Office Ltd and Royal Mail, the Government have not taken their strategic role seriously. We have not had a comprehensive statement of strategic direction for that vital service since 2010, and we have reached the point where the long-term future of the network is at stake.
The Minister will undoubtedly argue that the numerous consultations, funding announcements and statements illustrate the Government’s commitment to the Post Office’s future direction, but none of those pronouncements sets out any real vision for the future. Many communities have already lost vital services because of closures by Post Office Ltd or, increasingly, because can no longer afford to run the services. The Government must set out a true long-term plan that details how post offices can thrive in a changing world. Without such a plan, the network will drift further towards a model of postal counters in larger multiples, as opposed to a network genuinely rooted in communities.
The growth of Crown post offices being delivered by WHSmith and others points towards a possible future in which the public elements of our post office network are continually reduced, so that it becomes a network led by larger private businesses. That is not the future of the network that the public want to see. In previous debates, I have highlighted many concerns about disabled access and adequate numbers of well trained staff, which many of my constituents report to me and many other MPs.
By contrast, we have a clear vision of the future of the post office network. First, the network would receive far greater protection if it were reunified with Royal Mail in public control. The disastrous decision to split the two and to sell off Royal Mail threatened both businesses. As high streets and the postal market develops, we have missed great opportunities to unify the management and services of those businesses. Working together, post offices and Royal Mail delivery offices could provide a much more comprehensive network of local points from which to send and pick up parcels, driving growth and delivering sustainability for the Post Office and Royal Mail. Britain’s post should be public.
Labour would also set up a proper post office bank to bring 21st-century banking services into every community. High street bank closures are happening across the country, and while many post offices work hard to provide basic banking services on behalf of banks, they cannot offer many essential services that local bank branches can. Furthermore, the thankfully reversed decision by Barclays to withdraw its services from post offices shows that the existing relationship is neither sufficient nor stable. A post office bank, by contrast, would bring full banking services to every post office, meaning that people who value a local branch service would have reliable access to branches. Such a bank would offer a vital new line or remuneration for sub-postmasters, helping to protect them for the future.
Not only that, but smaller loans could be available through a post bank, enabling thousands of bottom-up transformational changes for start-ups, small businesses, local co-operatives and community projects in towns and villages up and down the country. A post bank would also be the location for much needed local business development support, further ensuring a sustainable customer base for post offices for generations to come. The proposal would also support the Post Office’s key functions of making cash accessible. Many people, especially those who are vulnerable or elderly, rely on cash in their day-to-day lives, and bank branch closures mean post offices are one of the few places that it can be accessed free of charge. A strong local network of free-to-use cash machines also helps to support small local businesses, which may not have the facilities to accept other forms of payment, and provides a lifeline to our struggling high streets.
Will the Minister commit to bring forward a comprehensive strategy for the Post Office? I know that she will not agree with every element of the plan I have laid out, but the House and the public must be able to see and scrutinise the Government’s plans for the future. Will she also set out what steps she will take to address the governance of the Post Office to ensure that sub-postmasters and the public are assured that the management of the company is able to take the network forward into the future with openness and transparency? Any strategy must identify the desperate need for fair remuneration of sub-postmasters, which will help to maintain a viable post office network, as highlighted by the hon. Member for Paisley and Renfrewshire North (Gavin Newlands), who fondly referred to the Post Office as an “unloved” armchair, which I found very touching.
The post office network is a national gem, valued by many up and down the country. It can provide a bulwark against a retail downturn and essential protection for the digitally excluded, but it must have the correct vision and investment to achieve that. In recent weeks, the Post Office has faced great challenges. The Government must react and lead the Post Office forward for the future.
Oral Answers to Questions
Gill Furniss Excerpts(4 years, 9 months ago)
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Kelly Tolhurst
I thank my hon .Friend for his question and very much welcome him back to this place, as an extremely valued member of the Select Committee on Business, Energy and Industrial Strategy, on which he served with me—I am pleased to have him back. He raises an interesting idea. The UK has a highly competitive tax environment, and we need to do more to support our small businesses with the cost of doing business. That is why the Government have committed to launching a fundamental review of business rates, and Treasury colleagues will be giving more details on that in due course.
Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
Sub-postmasters across the country offer valuable services to many of our communities. The case they brought against the Post Office has now concluded and the courts have found that the Post Office was at fault for its aggressive prosecutions of sub-postmasters for errors in the Horizon IT system. These prosecutions saw some sub-postmasters unlawfully jailed, and many losing their homes, livelihoods and reputations. What support are the Government giving to those affected? What has been done to ensure that a scandal such as this is never allowed to happen again? Will the Government launch a full inquiry into the circumstances that led to this tragedy, and a full review of the governance and management of the Post Office—the judge was highly critical of that—and of the impact this will have on the post office network?
Kelly Tolhurst
The hon. Lady is correct; on 11 December, Post Office Ltd reached a settlement in the group litigation claim brought by 555 postmasters or former postmasters. This has culminated in a successful mediation, and a settlement of £57.7 million was reached, funded by the Post Office. The Government welcome the agreement by the parties to settle this long-running litigation. It is true to say that many have suffered through litigation, and Post Office Ltd has apologised for that. One key point is that this mediation occurred under the new chief executive officer, who is making sure that the recommendations made by the judge, and culture change and changes within the Post Office, happen.
Product Safety, Metrology and Mutual Recognition Agreement (Amendment) (EU Exit) Regulations 2019
Gill Furniss Excerpts(5 years ago)
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Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
It is a pleasure to serve under your chairpersonship, Sir Gary. As per the explanatory memorandum, the instrument amends some provisions of an earlier no-deal instrument that was brought to the House in March ahead of the no-deal scenario that the former Prime Minister, the right hon. Member for Maidenhead (Mrs May), threatened us with—leaving the EU on 29 March, deal or no deal. Thankfully, we averted that crisis.
Called a “beast of an SI” by The Times on 12 February, that instrument was 636 pages long, weighed 2.5 kg and put together 11 issues that would usually be in separate documents to be sifted through. The Secondary Legislation Scrutiny Committee was damning of the length and scope of that instrument and the Government’s approach to bringing it to Parliament. This instrument amends that legislation. In particular, it
“makes amendments to previous no deal legislation in light of the extension to exit day agreed under Article 50 of the Treaty on European Union”
and
“seeks to extend transitional provisions for imports from the EEA to imports from Switzerland and to ensure other provisions operate effectively and as intended. The instrument also amends certain EU-derived legislation, to expressly implement certain provisions of the mutual recognition agreement between the EU and Switzerland, related to importers and authorised representatives, and to make a small correction to legislation implementing the EU safety regime for pressure equipment.”
It also includes the amendments and the inconsistency that the Minister kindly referred to.
The instrument has been introduced through the made affirmative procedure under paragraph 5 of schedule 7 to the European Union (Withdrawal) Act 2018, which means that when matters are deemed urgent, an instrument can be made before it is laid for the House to approve or scrutinise. Why has the Minister introduced the instrument using that procedure?
In passing the Benn Act, the House of Commons has been explicitly against a no deal, which has in fact been legislated against. Why is the Minister proposing the new exit date when that has been explicitly rejected and legislated against by the House?
The product safety regulations made provision for the creation of an independent UK system for checking that products meet the requirements and of a framework for UK marking, so that a manufacturer can indicate if a product conforms with those requirements. Can the Minister enlighten us about the system’s progress and when it will come into place?
Consumer bodies such as Which? have been clear that a no-deal Brexit would be a catastrophe for consumer protections and would water down 40-plus years of progress in that respect. I would welcome the Minister’s comments on that.
UK Steel Industry
Gill Furniss Excerpts(5 years, 3 months ago)
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Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
It is a pleasure to serve under your chairpersonship, Mr Hollobone, and I congratulate my hon. Friend the Member for Scunthorpe (Nic Dakin) on having secured this debate. He is a champion for his community and the steel sector more widely, and I know he has been working hard on behalf of his constituents to press the Government for clarity during this time of crisis. I thank the steelworkers, the steel manufacturers, the trade unions—Unite, Community and GMB—and also UK Steel for their unwavering support for this fantastic industry. Such a coalition is rare, but it shows how important this issue is to our communities and our country.
On 22 May, British Steel collapsed, putting at risk 4,000 jobs directly and 20,000 jobs in the supply chain. That announcement came as a shock to thousands of steelworkers who worked against the odds to defend the company’s future, and I join the thousands waiting impatiently to hear some positive news about a new buyer. It is imperative that the Government prioritise a buyer for the whole steelworks, not parts, and I urge them to make every necessary support available so that we can secure the long-term future of the company.
For decades, the steel sector has been at the heart of communities, including mine in South Yorkshire. It has provided well-paid, well-skilled jobs, and over the years, through sheer determination and resilience, the sector has manoeuvred through some very choppy waters. When I joined the House in 2016, the steel sector was going through a severe crisis, which saw the collapse of the Redcar steelworks. My hon. Friend the Member for Redcar (Anna Turley) has spoken eloquently many times in this House championing the steel sector, and I believe she will continue to champion it till her last breath. We must never let such a collapse happen again. We have to collectively value and appreciate the importance of the steel sector, and although there are global and domestic challenges, including global overcapacity, there are also enormous opportunities.
Alex Sobel (Leeds North West) (Lab/Co-op)
On that point about opportunities, my hon. Friend’s constituency was the cradle of stainless steel, and it now has ITM Power, which makes hydrogen. Does she agree that hydrogen steel furnaces are part of our commitment to address climate change, and could create a whole new steel industry in the UK, leading the world?
Gill Furniss
I thank my hon. Friend for his intervention. I absolutely agree, and I very much look forward to my home town of Sheffield taking up those opportunities, because it is well placed to lead a green industry.
As I was saying, we always need steel, which literally forms the fabric of everything we see. I sincerely worry that both contenders to be the next Prime Minister are advocating a no-deal Brexit. As UK Steel has clearly stated, that would be catastrophic for the sector. It could cost it £70 million and lead to further collapses.
The steel industry has many strengths and is able to thrive, but, for that to be achieved, we need the Government to commit to help. The future of UK steel can be bright, and the Government’s own analysis has identified a £3 billion opportunity by 2030, sustaining good jobs in the areas that need them the most. The news last week that Jaguar Land Rover will invest £1 billion in building electric cars in the UK was an enormous boost, with the company leading the way on electrifying the cars on our roads and signalling a commitment to a greener economy. The opportunities for end-to-end supply in that process—making the steel at home to support the building of those vehicles—could be enormous. That could support and encourage growth in the steel sector while spearheading a green revolution.
It is disappointing that the opportunity to secure a steel sector deal has never come to fruition. I am pleased to see the new Minister in his place, and I urge him to give that issue the greatest importance. The steel sector needs that deal for innovation, for user research and development, and to be there to take on exciting opportunities for the future. The steel industry is there and waiting to be helped with the challenges ahead and the opportunities to make it thrive.
UK steel companies pay 50% more in energy costs than their competitors in the EU. On procurement, we know that UK Government decisions are a hugely powerful policy tool to boost British steelmakers’ orders. The decision to use our steel for the royal fleet, mentioned, I believe, by my hon. Friend the Member for Rotherham (Sarah Champion), would be much welcomed. It would also make complete sense for our national defence. Please, Minister, look at that, because those are the opportunities that need to be put forward.
I commend the UK steel charter, which is aimed at enhancing and maximising procurement opportunities for UK steel producers. The Welsh Labour Government were the first to sign up to that commitment. They are leading the way, but Departments in Whitehall appear to be resistant to signing up. Will the Minister commit that all Departments will sign up to the charter?
On business rates, the perverse inclusion of investment in machinery, which increases a company’s business rates, is patently a barrier to investment. Some British steel companies have huge disparities in their business tax bills across their plants in Europe. For example, Tata pays a business tax bill in Wales that is 10 times that of its operation in the Netherlands. Will the Government join the Labour party in our pledge to remove machinery for steel companies from business rates to ease that burden and invite more investment back into the steelworks? I am not saying it will be easy, but what is a Government for if not to support our foundation industries and encourage their growth?
Our steel industry is fabulous, innovative, flexible and resilient, and it can thrive. Please help us to make sure it stays that way.
Mr Philip Hollobone (in the Chair)
In calling the Minister for steel, I think we should note the presence of the Secretary of State for Business, Energy and Industrial Strategy and encourage other Secretaries of State to attend debates here in Westminster Hall.
Rural Areas in Scotland: Additional Delivery Charges
Gill Furniss Excerpts(5 years, 4 months ago)
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Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
It is a pleasure to serve under your chairpersonship, Mr Hollobone. I congratulate the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) on securing this important debate. I recall his excellent contribution in a debate on broadly similar themes that was secured by the hon. Member for Moray (Douglas Ross) around 18 months ago.
However, it is disappointing to see that there has been so little progress in tackling this unfairness since that previous debate. The Minister responsible at the time, the hon. Member for Stourbridge (Margot James), assured us that the consumer Green Paper would be the start of the process of finding an answer, but the Green Paper did not mention the issue at all. We are still awaiting the response to the Green Paper consultation, and by later this week we will have been waiting for one year. Can the Minister here today say when we can expect the response?
It has been valuable today to learn about not only the problems that consumers continue to face, but the actions that have been taken since the previous debate. The hon. Member for Caithness, Sutherland and Easter Ross has already referred to the Scottish Parliament’s actions, and hopefully there will soon be some clarity on many of these issues, including misleading delivery charges. However, I take on board both his comments and those of the hon. Member for North Ayrshire and Arran (Patricia Gibson), who also issued a plea to the UK Government to assist them in this matter, because it is Government action that is needed. I was interested to hear the hon. Lady talk about the people’s delivery guarantee, which I think is an excellent idea. I hope that the Minister will take that up and tell us more about it later. There should be more work with delivery companies, and more information and reporting, but those things are useful only up to a point. The evidence that we have heard today has shown that the core problem—the hugely inflated delivery prices that many people face—still exists.
The universal service obligation ensures that firms that use the Royal Mail for deliveries are able to charge precisely the same amount for the highlands as for any other UK address. Regrettably, however, many UK online retailers have moved away from using the Royal Mail. The Government must consider how, in the deregulated postal market, the universal service obligation protects consumers in rural Scotland. Will the Minister examine and assess the effectiveness of the universal service when it comes to protecting rural customers?
The Postal Services Act 2011 sets out the universal service obligation as a service that must simply be available, rather than guaranteeing a consumer the right to access a universal service when a third party, such as an online retailer, is contracting the delivery. The obligation means that for anyone sending post below 20 kg, there is a fixed price to any UK address. That is all well and good in protecting citizens’ rights when people send items themselves, but the majority of online deliveries are by retailers that operate across the UK.
A retailer’s commercial motive will lead it towards wanting to offer incredibly cheap or free delivery to the majority of its customers. In recent years we have seen nearly every online retailer splash an offer of free delivery on their homepage. In fact, led by Amazon, same-day delivery is being pushed as the new ultimate convenience. However, Members will know that not only is that promise rarely universally available, but the desire of online sites to offer delivery leads them to move away from the somewhat higher price of the universal service offered by Royal Mail and towards competitors who can offer cheaper services. Clearly, that is at the cost of consumers in the highlands and islands, who have to pay the exorbitant rates that we have heard about today.
In the previous debate, I said that Ofcom needs to be empowered to take action to ensure that this geographic discrimination is tackled. The then Minister disagreed, on the basis that some delivery firms do not charge additional rates in Scotland. That is true, and I encourage all retailers to choose one of these firms to deliver their goods, if they do not use Royal Mail. However, the Government’s position completely misses the point that consumer choice should naturally be about choosing the best quality and value products. Other than by using a few select retailers, consumers cannot choose to go with Royal Mail as an option, so in this environment a universal service does not really exist.
Ofcom continues to report a fall in the cost of parcel postage, due to increased competition. That is good news for the majority of UK consumers, but with margins becoming tighter it represents quite the opposite for consumers in rural locations, as it makes it increasingly unlikely that the highlands and islands will be included at equal rates. I fear that without genuine action the outlook for many Scottish families is bleak. The market is moving at pace towards a low-cost convenience model, and it is difficult to imagine that rural Scotland will be a beneficiary of the change.
It is clear that there is a market failure that must be corrected. I believe that Ofcom can make that correction, if it is correctly instructed. There are two approaches that the Government should consider. First, when there is an option to select Royal Mail delivery, there is a degree of protection available to consumers. The Government should consider how they can ensure that as large a part of the delivery market as possible has an option for Royal Mail delivery, either by a voluntary agreement or, if necessary, by regulation.
Secondly, Ofcom could add geographic delivery to its list of regulated prices. That could certainly curb the worst examples of overcharging faced by rural Scottish communities. Ofcom has used its regulatory powers to cap broadband and phone prices. Therefore, given the evidence of overcharging for delivery, it is logical to cap parcel delivery costs too.
In conclusion, will the Minister recognise that the Government must move beyond guidance and warm words, and instead take real action to ensure that hundreds of thousands of people do not continue to suffer this unfair penalty?
Recall of Tumble Dryers
Gill Furniss Excerpts(5 years, 4 months ago)
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Kelly Tolhurst
In response to a query from Which?, Whirlpool said that 1.7 million cases had already been resolved. It estimates that another 500,000 machines are still in people’s homes.
Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
Thank you for granting the urgent question, Mr Speaker. I congratulate my hon. Friend the Member for Hammersmith (Andy Slaughter) on his relentless campaigning, and for securing this important question.
The Government stated their intention to initiate a recall notice to Whirlpool on 4 June, but that only became apparent in the House during topical questions to the Secretary of State for Business, Energy and Industrial Strategy on Tuesday 11 June. Can the Minister explain why she did not make a statement about the decision, which she has described as “unprecedented”, but which she considered not to be “unprecedented” enough to inform the House about it?
The issue of Whirlpool and its faulty products has been one of the biggest consumer safety issues for many years. The relevant fault affected more than 5 million tumble dryers under brand names that are now owned by Whirlpool UK, which were manufactured between 2004 and 2015. I welcome the recall notice regarding the 500,000 unmodified products, but I am seriously concerned about the millions of modified Whirlpool products that are still in people’s homes, and whose owners have reported fires and faults despite the modifications. Which? spoke to more than 30 owners who have said that their “fixed” tumble dryers have caught fire, or have produced smoke or a smell of burning. There are millions of those modified machines out there in people’s homes. Consumer safety must be our utmost priority, so will the Minister demand a full investigation of those reports, and go further by demanding a recall of the modified products too?
In April, the Office for Product Safety and Standards published findings of its inquiry into Whirlpool’s handling of the risk of the machines. It found that the risk of fire was “low”, and therefore no recall notice action was taken. Which? considered that the “inquiry is fundamentally flawed”, and that
“it appears to favour business interests over people’s safety”.
The investigators failed to speak to any affected Whirlpool customers as part of the review, and further failed to verify the history of the 28 Whirlpool dryers that it tested, which meant that it was unable to draw conclusions about when the machines had been modified and by whom. The inquiry was published in April and the Minister’s subsequent contradictory decision to issue a recall notice obviously raises serious questions about the OPSS. Will the Minister clearly outline why she came to a different decision from the OPPS in April? Does she now believe that the OPSS investigation was fundamentally flawed and will she announce an investigation into that review to look at whether it was properly undertaken and whether there are lessons to learn for the future?
Kelly Tolhurst
I must start by outlining that the protection of consumers, the safety of consumers and the safety of products placed on the market are of utmost importance to me and this Government. I did indeed update the House last week in response to a question about the action that we have taken in regards to Whirlpool; it is part of a legal process, as I have already outlined. All complaints about modified or unmodified tumble dryers that have been duly registered were included in the review. The review was significant: it looked at many areas, took all the data into account, and carried out the assessments, as the hon. Lady has outlined, and I am absolutely satisfied that the review undertaken by OPSS was appropriate and robust.
I have not taken a different decision from OPSS. We were very clear. OPSS wrote to Whirlpool after the review outlining areas where it wanted a guarantee of further work. Whirlpool had 28 days in which to respond. It responded, and the OPSS reviewed that information and was not satisfied, finding that the commitment was inadequate. We therefore decided to issue a notice—an intention to recall. As I have outlined today, we will be reviewing what has been submitted by Whirlpool. There is no intention to put, as has been suggested, big business over the needs and safety of consumers, and we will not do that. Fundamentally, the safety of people in their homes is of utmost importance to me and the Government and I will do everything in my power to make sure that large companies and manufacturers absolutely comply with their legal obligation to place only products that are safe on the market. If they fail to do so, this Government will take appropriate action to hold them to account.