Wine Duty

Gordon Henderson Excerpts

Tuesday 5th March 2024 Westminster Hall

[Gordon Henderson (in the Chair)]

I shall call Will Quince to move the motion, and I will then call the Minister to respond. There will not be an opportunity for the Member in charge to wind up, as is the convention for 30-minute debates.

[Will Quince (Colchester) (Con)]

I beg to move,

That this House has considered wine duty.

It is a pleasure to serve under your chairmanship, Mr Henderson. I am pleased to have secured this important debate the day before my right hon. Friend the Chancellor of the Exchequer delivers the Budget statement to the House. I am grateful to the Minister for responding. I know he will take very seriously the points I will make further to our correspondence on this issue. I would also like to thank the unusually great number of right hon. and hon. Members present for supporting this 30-minute Westminster Hall debate. I hope the Minister has noticed the strength of feeling on this important subject.

I applied for this debate as a result of meeting the chief executive officer of Majestic Wine, which is the UK’s largest specialist wine retailer, with more than 200 stores across the UK, including a large store in my constituency. They raised a number of concerns relating to wine duty that I felt were important for the House to hear and reflect on. The UK is a major global hub for wine and spirits. It is the world’s second largest importer of wine by volume and value, and the largest exporter of spirits. It supports over 390,000 jobs, £69 billion in economy activity and £8.6 billion in excise duty revenue.

Like all businesses, those across the wine supply chain have had to confront some tough trading conditions over recent years, but a number of the challenges they face are unique to the wine and spirit trade, and these were brought to my attention by Majestic. The challenges faced by Majestic and other similar businesses stem primarily from the new alcohol excise system, which was introduced last year. In particular I am referring to the impact of the historic duty increases and the changes to the way wine duty is calculated. The introduction of the new duty regime last August followed a review of the inherited EU duty rules. When the review was announced, it was welcomed across the drinks industry, which backed wholeheartedly the aims of the review, which were to make the new duty system fairer, simpler, less distortive and easier to administer.

Sadly, particularly for wine and spirit businesses, the new regime is not fairer. In fact, in many ways it has reinforced the existing market distortions. For wine businesses, the new system is anything but simpler to administer—in fact, it is exactly the opposite. The new system that was introduced on 1 August 2023 levies excise duty on all alcoholic products according to strength, but at different rates. This reinforces pre-existing market distortions by continuing to tax wine and spirits more harshly than other categories of alcoholic drink.

When introducing the new system, the Government recognised the impact it would have on wine businesses and rightly put in place a temporary easement mechanism that pegged the amount payable for wines in the range of 11.5% to 14.5% at the amount payable on a wine of 12.5% alcohol by volume. That amount is currently £2.67 per bottle. Wines falling within this easement mechanism account for 85% of the wine sold in the UK market. That is 1.1 million out of 1.3 million bottles sold. This easement is set to end on 1 February 2025.

Independent School Fees: VAT

Gordon Henderson Excerpts

Wednesday 21st February 2024 Westminster Hall

[Several hon. Members rose—]

[Gordon Henderson (in the Chair)]

Order. I remind hon. Members that they should bob if they wish to speak. I will have to impose a time limit of three minutes, as I will have to call the Opposition spokesman at 5.15 pm.

[Sally-Ann Hart (Hastings and Rye) (Con)]

It is a pleasure to serve under your chairmanship, Mr Henderson. I congratulate my hon. Friend the Member for Northampton South (Andrew Lewer) on securing this important debate.

Labour’s plans to charge VAT and end business rate relief for independent schools is based on the politics of envy, from a party that wants to crush aspiration and ambition. Labour says its primary motivation is to generate revenue to invest in the state education system and that the policy might raise £1.7 billion for that purpose. Well, Labour had better get building more schools, because it intends to implement the policy as soon as the right hon. and learned Member for Holborn and St Pancras (Keir Starmer) enters Downing Street, with no consultation or risk analysis. What a nonsense. The policy will harm both the state and the independent sector, and there will be an exodus of pupils into an increasingly stretched state system, with some independent schools closing altogether.

We must not trust Labour with our schools. About 12 years ago, the OECD “Education at a Glance” report found that expenditure on schools as a percentage of GDP increased from 3.6% in 1995 to 4.5% in 2009. The OECD average was 4%. Billions of pounds of spending went into schools under the last Labour Government, but that huge increase in spending led to no improvement in student learning outcomes. UK teenagers slipped down the league tables in crucial subjects, while our schools became the most segregated in the world, with Britain’s immigrant children clustered in the most disadvantaged schools. Primary school class sizes were bigger only in places such as Turkey and Chile, and there was an alarming rise in children not in education, employment or training. Taxpayers failed to get value for money and Labour’s policies had little impact.

Labour will never understand that it is not just about money; it is about leadership and structure. We have some amazing headteachers in Hastings and Rye. I will not name them, but they know who they are, and they work best with the support of positive and effective Government policy, and with the support of their academy trusts. In Hastings and Rye, 32% of schools were rated as being good or outstanding in 2010, compared with 82% in 2022. There is more work to do, but it can be done, as we have seen from the Conservative Government’s record, without destroying our valuable independent sector.

I have two independent schools in my beautiful constituency of Hastings and Rye: Claremont and Buckswood. Buckswood boards about 50 pupils from 48 different countries and has 200 local day-school pupils. Both schools have lower fees for local children, and they have a diverse mix of children, which contributes to a rich cultural environment—one that would not normally be expected in a coastal community. Thos schools enrich our communities, to the benefit of all our residents.

[Gordon Henderson (in the Chair)]

I apologise to Munira Wilson and Jim Shannon for calling them earlier.

--- Later in debate ---

[Sally-Ann Hart]

On a point of order, Mr Henderson. I neglected to say earlier that I might have an interest to declare, as my husband is a governor of an independent school.

[Gordon Henderson (in the Chair)]

Noted. Thank you.

--- Later in debate ---

[Gordon Henderson (in the Chair)]

Order. I need to stop you there, Ms Hayes, and call the Minister.

--- Later in debate ---

[Nigel Huddleston]

My hon. Friend is absolutely correct; the broader societal benefit of many of our private schools is considerable. That is one of the reasons why many, although not all, have charitable status. They provide all sorts of benefits, including through opening up for sports provision.

The Government are not alone in having concerns about Labour’s current policy. Labour’s own shadow Chief Secretary to the Treasury, the hon. Member for Bristol North West (Darren Jones), spoke out against its planned tax rise before he joined the Front Bench, telling students that he did not believe the policy would bring in the money that his party was promising. Of course, that has not stopped Labour from spending the money several times over already, and it does not have a plan to pay for the potential incremental costs.

I will bring my comments to a close, but I must express a slight disappointment: much as it is always a pleasure to have the hon. Member for Dulwich and West Norwood in this Chamber, I am normally faced in these debates by my opposite number, the hon. Member for Ealing North (James Murray). I must share an irony in that situation: I stand here today as a proud product of a comprehensive state school education nevertheless supporting the role of private schools in the UK and the principles of freedom of choice, aspiration, opportunity and social mobility.

My Labour counterpart is a product of the private school system yet is advocating a policy that could potentially restrict access to the very system from which he has himself benefited, as indeed have many Members on the Opposition Benches. I find that quite ironic and hypocritical, but I will never criticise somebody for the choices made by their parents. We do not do that on this side of the Chamber, but a little bit of humility in this debate might be appreciated. A good education for all is a priority for this Government, and I hope hon. Members from across the House will work with us to deliver it.

[Gordon Henderson (in the Chair)]

Andrew Lewer, you have two minutes to wind up.

Oral Answers to Questions

Gordon Henderson Excerpts

Tuesday 27th April 2021 Commons Chamber

[Kemi Badenoch]

It would not be appropriate for me to comment on the details of individual companies, due to commercial sensitivities. We are monitoring developments around Liberty and continue to engage closely with the company, the broader UK steel industry and trade unions. I recognise that reports around Liberty cause worry and uncertainty to the affected workers and their families. What I would say to the hon. Lady is that there is a lot of stuff that the Government are doing that will help her constituency. For instance, we are helping to create new green manufacturing jobs by providing support to drive the electrification of the UK automotive sector, supporting thousands of high-quality jobs in the west midlands.

[Gordon Henderson (Sittingbourne and Sheppey) (Con)]

What fiscal steps his Department is taking to help young people into work.

[Mark Menzies (Fylde) (Con)]

What fiscal steps his Department is taking to help young people into work.

[The Chief Secretary to the Treasury (Steve Barclay)]

Our plan for jobs will help young people find employment opportunities, including through our youth offer and the £2 billion kickstart scheme, where 180,000 kickstart vacancies have already been created.

[Gordon Henderson [V]]

I appreciate that the Government are helping to create those jobs, but it is important that young people have the confidence to learn and master a skill after leaving formal education, so how will my right hon. Friend ensure there are funds for people to do that in my constituency, including in Sittingbourne, which is the largest town in Kent that does not have its own further education facilities?

[Steve Barclay]

I agree with my hon. Friend that young people should have access to the skills and training opportunities they need to access great jobs. That is why my right hon. Friend the Chancellor has provided £126 million for traineeships in England to enable an additional 40,000 places over the next academic year, and why he has incentivised apprenticeships, with up to £3,000 for employers who hire new apprentices of any age.

Oral Answers to Questions

Gordon Henderson Excerpts

Tuesday 5th March 2019 Commons Chamber

[Mel Stride]

I do not believe that the figure to which the hon. Lady refers is accurate. This Government have seen employment at a record high and unemployment at the lowest level since 1975, and youth employment is half what it was in 2010—unlike the Labour Government, who saw youth unemployment increase by almost 50%.

[Gordon Henderson (Sittingbourne and Sheppey) (Con)]

6. What steps he is taking to increase the level of funding for road infrastructure.

[The Chancellor of the Exchequer (Mr Philip Hammond)]

At the Budget, I announced an extra £420 million for road maintenance, including potholes, and £150 million to ease congestion on local roads. I also announced that, from 2020, all road tax will be invested back into our road network via a national roads fund, which will involve £28.8 billion between 2020 and 2025, including a record £25.3 billion for our strategic roads. That is part of our plan to upgrade our infrastructure so that it is fit for the future and another element of our overall public investment, which is set to reach the highest sustained level for 40 years.

[Gordon Henderson]

I am grateful for that answer and for the continued investment in our roads, but does my right hon. Friend understand the frustration felt by my constituents, who have seen their area transformed by massive housing developments, but have not seen improvements to the local road infrastructure, particularly the A249 and the M2, to serve the new homes?

[Mr Hammond]

We are making good progress on improving junction 5 of the M2 and the A249 Stockbury roundabout, reducing journey times, making journeys safer and supporting future housing and employment growth. All that is in addition to recent investments from the local growth fund in Sittingbourne and Sheppey, including the opening of a new roundabout on the A2500 in December 2018, following a £1.26 million investment, and £2.5 million for the regeneration of Sittingbourne town centre.

Leaving the EU: Port of Sheerness

Gordon Henderson Excerpts

Tuesday 30th October 2018 Westminster Hall

[Gordon Henderson (Sittingbourne and Sheppey) (Con)]

I beg to move,

That this House has considered use of the Port of Sheerness after the UK leaves the EU.

I will try to keep my remarks in order, Mr Bone, and I hope everyone else will, too. Whether or not the Government agree an acceptable post-Brexit deal with the European Union, something will have to be done to relieve pressure on the port of Dover. As my hon. Friend the Minister will know, most of the roll-on/roll-off traffic in south-east England is via the Dover-Calais route. That means that Dover handles a huge volume of business. It is one of the world’s busiest passenger ports. In 2017, some 11.7 million passengers, 2.6 million lorries, 2.2 million cars and motorcycles, and 80,000 coaches passed through Dover. In addition, Dover’s cargo terminal handles 300,000 tonnes and 9,000 containers every year, and business is increasing. As you can imagine, Mr Bone, with all that traffic heading in and out of Dover, the local roads are badly congested, even at the best of times. When there is a problem with the ferries—often caused by strike action at Calais—that congestion gets even worse and Dover becomes gridlocked.

The Dover traffic assessment project, otherwise known as the Dover TAP, holds around 1,000 lorries on the A20 just outside Dover and has been used hundreds of times recently. Thankfully, Dover TAP has been preventing a repeat of Operation Stack. I am sure my hon. Friend will recall it bringing the roads in Kent to a near standstill for a month in 2015. If the UK leaves the EU without a deal, what happened to Kent’s roads in 2015 could look like a walk in the park. Indeed, unless a contingency plan is put in place to combat a no-deal scenario, the situation could become critical and have a huge impact not only on Kent’s economy, but on that of the UK as a whole.

Highways England has been looking for an alternative to Operation Stack, including closing the M26 and using it as a car park. In my opinion, such an option would not solve the problem, but simply move it from one part of Kent to another. Some days, 10,000 lorries pass through the port of Dover in a 24-hour period. If those lorries were held up, that would be equivalent to a queue more than 90 miles long. That is a lot of potential traffic congestion, and it could see whole swathes of the south-east grind to a halt, but such a scenario is avoidable. Parking up thousands of lorries does not have to happen, because there are other solutions. For instance, rather than relying on Operation Stack or similar parking arrangements that have not worked in the past, would it not be better to provide lorry drivers with alternative routes to and from the continent? The port of Sheerness offers one such alternative.

Mr Bone, you might ask, “Why Sheerness?” Well, it has a number of advantages. For a start it has a ro-ro terminal that is available for use today. It was built to service the Olau Line, which ran a ferry service from Sheerness to the Netherlands. Although that ferry service stopped running in 1994, the ro-ro terminal is still in perfect working order. The port of Sheerness has other excellent facilities and is already one of the major ports for the importation of cars into the UK. Unlike Dover, it has plenty of spare space and room to expand. Although Sheerness is further away from Calais by sea than Dover, it is closer by road to London and the midlands, so the longer sea journey from France would be counter-balanced by a shorter road journey to the lorry’s final destination. In addition, Sheerness is closer than Dover to the Netherlands, which opens up the possibility of routing more freight via the Dutch ports, such as Rotterdam.

It is worth pointing out that Sheerness is the only port in England with water as deep as that at Rotterdam, so it would make a perfect partner. Another advantage of encouraging a Rotterdam-Sheerness route is that the road journey from Germany and eastern Europe to Rotterdam is shorter than that to Calais. Once again, although the sea journey would be greater, there would be a saving on road travel at both ends. While having a longer sea journey might seem a disadvantage, in a post-Brexit world it would be an advantage, because it would give more time for the customs paperwork to be sorted out electronically at either end. That is what is happening at Felixstowe, which manages to import £86 billion of goods every year from inside and outside the EU without the need for lengthy customs checks. Such a system replicated in other ports, such as Sheerness, would ensure frictionless borders and no hold-ups.

One final advantage of using the port of Sheerness is the amount of commerce that already takes place in the area. In my constituency, I have the Morrisons regional distribution centre; the new Aldi regional distribution centre; the Kemsley paper mill, which is the second largest fibre-based paper operation in Europe; and the Sittingbourne Eurolink, which is one of the largest industrial and manufacturing estates in southern England. As you can imagine, Mr Bone, all those industries generate a lot of lorry movements, many from the continent. Routing those lorries via Sheerness would reduce pressure on Dover and makes a lot of sense logistically.

Making better use of the port of Sheerness post-Brexit would require some investment. For example, the A249 dual carriageway would have to be extended half a mile into the docks. An improved electronic customs system like that at Felixstowe would have to be installed to ensure lorries could be cleared with as little delay as possible. I appreciate that that would come at a cost to the Exchequer, but when we consider the wider impact on the country if goods are held up at either Calais or Dover and the costs involved with providing an alternative to Operation Stack, the investment would be a small price to pay for what would effectively become a safety net for Dover.

[The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)]

It is a pleasure to serve under your chairmanship, Mr Bone. I congratulate my hon. Friend the Member for Sittingbourne and Sheppey (Gordon Henderson) on securing this important debate. It highlights an issue that is topical for both his constituency and the wider economy.

Our ports are key to our economic success. They deliver 95% of our exports and imports. I hope that we can agree that first and foremost, the United Kingdom ports are exemplary. My experience visiting our ports as Maritime Minister has reinforced my belief that our ports are the best in the world. We have the most liberalised ports sector in Europe and arguably the world, with the private sector predominating and ports competing to attract and facilitate trade with both the EU and the rest of the world, all on a fully commercial basis with minimal expense to the taxpayer. This responsible sector has invested vigorously throughout fluctuating conditions in world trade and the domestic economy. It has adapted to changing patterns of demand, including radical changes in the requirements for energy generation over recent years. Consequently, it is well placed to meet the challenges and opportunities that the country will welcome as we resume our position as an independent trading power.

The Government have set a highly facilitative context for private investment through the national policy statement for ports, which was designated in 2012. It sets a strong presumption in favour of socially and environmentally responsible development. The sector has long recognised its environmental stewardship duties as it often occupies sensitive sites at the land/water interface. Moreover, ports have permitted development rights that help to facilitate modest adaptation of port estates in a nimble way where that has no adverse environmental implications.

Our ports have many strengths, especially being nimble and flexible, so the ports sector as a whole stands ready to meet challenges. As the ports sector is such a competitive one, I must remain neutral in that commercial arena, so I hope my hon. Friend will understand if I do not sing the praises of Peel Ports or of any other individual port operator at the expense of others.

Many other hon. Members will doubtless be quick to point out that they have equally alert and vigorous ports in their constituencies, which I know to be true as I have had the privilege of seeing several in operation at first hand.

[Gordon Henderson]

I want to make it clear—I thought I made it clear in my speech—that I was using Sheerness as an example only because it is in my constituency and I know a lot about it, but the case could apply to many other ports. We should point out to those who are filled with doom and gloom about what will happen post-Brexit that we have ports other than Dover. That is all I am trying to say.

[Ms Ghani]

My hon. Friend makes an important contribution. He is absolutely right. We must seize the opportunity and recognise that we have many productive and flexible ports up and down our country.

One of the reasons prompting this timely debate is the success of the port of Dover, along with the channel tunnel, which is why any sizeable proportionate reduction in their traffic would be so challenging to replace elsewhere. My hon. Friend talked about the level of traffic and freight going through the port of Dover, and he also referred to the port of Felixstowe. That remains the largest UK container port and is another example of a world-class port capable of accommodating today’s ultra-large container vessels. Its sister port, Harwich, is a versatile ro-ro facility that handles both accompanied and unaccompanied ro-ro trailers. Also, Associated British Ports has advertised the strengths of its Humber ports for unaccompanied ro-ro and is also investing in short sea container capability at Immingham. Those are just a few examples. The Government are involving the whole UK ports industry in discussions on resilience issues directly and through the UK Major Ports Group and British Ports Association. Nevertheless, the initiative of Sheerness in promoting its ro-ro facilities is a good example of an enterprising and positive transport sector.

My hon. Friend will have heard from Ministers that we are confident of securing a withdrawal deal with the European Union that is in the interests of both the UK and the EU member states as trading partners, for this is not a zero-sum game. All the participants in international trade stand to gain, and that applies as much to the UK’s ro-ro business with the EU 27 after we leave as it does to our trade with the rest of the world, so we expect an agreement and a transition period that will enable a sensible adaptation to the inevitable technical changes in border arrangements. However, as a responsible Government, we must plan for all eventualities.

There has been a great deal of speculation, especially in the past week, about the Government’s intentions in the event of a no-deal outcome. The Government have made it clear that UK border controls—those that we control—will continue to enable trade to flow as frictionlessly as possible, which is what we are working towards.

[Gordon Henderson]

I am sorry to interrupt again. I accept everything the Minister says, but, because the Calais-Dover route is so short, it does not lend itself to electronic trans-shipments at the moment, so we have to upgrade those facilities. My understanding is that the software used at Felixstowe could be changed to accommodate Dover. When asked how long it would take, someone said a few minutes, and we should explore such options.

[Ms Ghani]

Once again my hon. Friend makes a positive intervention on how our ports can continue to be flexible and take on board new technology to ensure that all the checks are made in good time, especially when we consider the very short journeys to Dover.

Certain checks and controls, including those already undertaken from time to time on EU goods, have to take place at the frontier to be effective, and that will continue to be the case. But there is much that we can and will do to expedite flow, especially where checks can be undertaken away from the physical frontier. We cannot control what controls the EU will require or what member states will do in response to those requirements in the event that we leave without a deal. We can seek to influence such things, of course, but ultimately there remains a risk that the flow of traffic will be affected.

The Dover strait, encompassing the channel tunnel, concentrates the greater part of accompanied HGV trade with the continent. It is a 24/7 operation that includes a stream of ferries departing at half-hourly intervals. Inevitably, such a dense flow of HGVs could become subject to some constriction in the event that prolonged checks feed back into the queue of arriving vessels. We would be failing in our duty to the public if we did not take such possibilities very seriously and prepare for all eventualities.

On the opportunities proposed at Sheerness, earlier this year Peel Ports issued its pamphlet, “Brexit unlocked—A Contingency Option Using Uncongested Ports”. That report highlighted the ability of ports that are geared up to welcome and handle unaccompanied trailers to provide a service to customers whose cargo is not perishable or otherwise necessarily quick to the market. That can have further benefits, allowing a little more time to clear border controls in either direction and within commercially agreeable bounds to use temporary storage on ports rather than increase stockholding in the customer’s onsite warehouse or distribution centre.

Of course, unaccompanied cargo is nothing new. Indeed, the pamphlet itself points out that more than 70% of unit-load traffic from ports in France, Germany, Belgium and the Netherlands already travels unaccompanied, whether in trailers or sea containers. Equally, of course, Dover and the tunnel will remain open for business whatever the outcome on borders, and along with the ferry operators will themselves continue to attract a powerful commercial pull through geography as well as customer service, especially on the more time-critical traffic, although not limited to that. It is not my job to pick winners or direct traffic. Decentralised decision making by traders who are best placed to weigh their own needs and time pressures will continue to do that. However, it is my and my Department’s job to consider all reasonably possible outcomes and pursue the overarching objective for traffic to be as frictionless as possible. That is what we have been doing and will continue to do. I am glad that port, ferry and rail operators are also engaging with those challenges.

My hon. Friend raised the issue of traffic management. My Department, Highways England and other partners are working closely with the Kent Resilience Forum and other partners to develop contingency plans that will replace Operation Stack. First, we have established the Dover TAP—traffic assessment protocol—which has successfully avoided the need to deploy Stack since 2015. That will continue and Operation Stack will be superseded by Operation Brock, which will ensure that the M20 can be kept open and that traffic will continue to flow in both directions at times of cross-channel disruption from whatever cause.

Operation Brock consists of three phases: a contraflow queuing system between junctions 8 and 9 of the M20, with holding areas at Manston airport and, if necessary, on the M26. This represents a significant improvement on previous deployments of Operation Stack when junctions were closed and traffic diverted off the M20 on to local roads, adversely affecting local communities and businesses in Kent. We will therefore have substantial truck-holding capacity while maintaining flow of traffic on the M20. Obviously, we hope that none of that will be needed, but I hope my hon. Friend will be reassured that the Department and the agency are working hard to cover all eventualities and improve the quality of our collective response.

[Gordon Henderson]

Although we have been talking about the implications of Brexit, I said at the beginning that we have to solve the problem whether or not we have a no-deal scenario. It is bad for Kent and for the country. Whether or not we have Operation Stack, we need more lorry parks. Every constituency in Kent suffers from all its lay-bys being cluttered with lorries. Lorries are parked on the M2 every night. We have to do something about that. I have been working with Kent County Council and Highways England, and I have offered sites in my constituency for lorry parks, but nothing ever happens. I hope that the Minister can encourage something to happen on that.

[Ms Ghani]

My hon. Friend again raises the important issue of lorry parks. We know we need more, but no Member would like them in their constituency. I value his contribution, and I will ensure that his passion for ensuring that we have lorry parks is passed on to the Roads Minister.

I know that the A249 is important to my hon. Friend. Road connections are vital to any ro-ro port, and indeed to most others. Our port connectivity study, published just last April, surveyed the situation in England nationally. It acknowledged that there is a good case for strengthening sections of the strategic road network and specific potential to upgrade sections of the A249 near Sheerness. The study is a platform for future investment in worthwhile improvements at a range of ports including Sheerness, but of course the port is open for business with its existing connectivity. I would welcome another meeting with my hon. Friend to try to take that forward, especially with the Roads Minister.

[Gordon Henderson]

rose—

[Ms Ghani]

I see another intervention on its way.

[Gordon Henderson]

I am sorry to intervene yet again. The A249 and the link I mentioned into the port are important. I mentioned it to the Secretary of State a year ago, and he instructed Highways England to go down and have a look at it. The response from Highways England was that it is not necessary because it is not busy enough. Highways England does not seem to understand that we will make it busier only if we get the road link in. That is where it is sadly not always singing from the same hymn sheet as the Department for Transport.

[Ms Ghani]

I hope Highways England will acknowledge my hon. Friend’s intervention. Our port connectivity study made it clear that that part of the A249 requires investment to ensure that our ports continue to do what they do best, which is not only bringing freight in but moving it up and down the country.

I thank my hon. Friend for raising an important topic. He has rightly highlighted the potential of an important port business in his constituency, as well as of other significant businesses up and down the country. I am sure that he and I agree that it is part of a wider picture of readiness to seize commercial opportunities across the UK ports sector. I look forward to working with him in flying the flag for UK ports. I have no doubt that you will agree, Mr Bone, that the UK was a great maritime trading power for many years before we joined the European Union, and we will continue to be a great maritime nation after Brexit.

Question put and agreed to.

Draft Immigration Act 2014 (Current Accounts) (Excluded Accounts and Notification Requirements) Regulations 2016

Gordon Henderson Excerpts

Tuesday 6th December 2016 General Committees

[Gordon Henderson (Sittingbourne and Sheppey) (Con)]

Like the hon. Member for Glasgow Central, I was not going to speak in this debate—I rarely do on these occasions—but the more I hear, the more frustrated I get. Do these people live on a different planet from me? Or is it because I live in Kent and we are at the coalface as regards illegal immigration in this country?

Having read the regulations, it seems to me to be quite clear that this relates only to people who do not have a right to be in our country. The more we make it easier for people who do not have a right to live in our country to live here by giving them bank accounts and such like, the more we will be encouraging even more people to come to Dover and come into this country as illegal immigrants. I will certainly be supporting the Government on this occasion.

Oral Answers to Questions

Gordon Henderson Excerpts

Tuesday 29th November 2016 Commons Chamber

[Jane Ellison]

My hon. Friend is exactly right to say that the National Audit Office inquiry is the way to go. This is an area in which it is deeply experienced and the work is already under way. The report will be produced in the new year. In order to draw conclusions and to find these reports helpful, that speed of inquiry is important. We will have the report early in the new year, and the House will have further chances to scrutinise it at that time.

[Gordon Henderson (Sittingbourne and Sheppey) (Con)]

4. What steps he is taking to reduce the effect on small businesses of penalty surcharges levied by HM Revenue and Customs.

[The Financial Secretary to the Treasury (Jane Ellison)]

Ultimately, the Government want to collect the right tax at the right time, not charge penalties. As it happens, we are currently reviewing ideas for how we charge penalties. A discussion document was published last year, and we recently consulted on a new approach to sanctions for late submissions of returns and late payment of taxes. We are currently considering all the comments received and if my hon. Friend wants to contribute to that process, I will be happy to look at any detailed points.

[Gordon Henderson]

I am more than happy to contribute. A small building company in my constituency has paid large VAT bills on time since 1972. However, on one occasion, because of a mistake by a member of staff, the company’s VAT return was one day late and the company was hit with a totally unfair £12,000 penalty charge. During the review, will Ministers consider changing the penalty charge system so that they are levied only on businesses that repeatedly fail to pay their VAT on time? “Three strikes and you’re fined” might be a good system.

[Jane Ellison]

I note what my hon. Friend says with interest. It is worth clarifying that the VAT default surcharge system already contains safeguards to help businesses avoid penalties and that no business incurs a surcharge the first time it makes a late payment. My hon. Friend may want to write to me about that individual case because I cannot address it here in the House. The current system of surcharges is structured in a way that allows the smallest businesses up to four late payments without incurring a surcharge, so I suggest that he writes to me with the details, which I will pass on to HMRC.

Oral Answers to Questions

Gordon Henderson Excerpts

Tuesday 25th October 2016 Commons Chamber

[Jane Ellison]

The UK is committed to ensuring that UK companies pay a fair share of tax in the countries in which they operate. On all the wider aspects of international tax fairness, I reiterate that the UK has taken a very strong stance across the board on a number of issues. I am always happy to speak to my hon. Friend about this issue because he is very much an expert, and I would welcome his views on all such issues.

[Gordon Henderson (Sittingbourne and Sheppey) (Con)]

3. What fiscal steps he is taking to support the manufacturing industry.

[The Chief Secretary to the Treasury (Mr David Gauke)]

The Government have taken steps to maintain a world-class business environment that helps UK manufacturers to thrive. That is why we have cut corporation tax from 28% to 20%— it will fall further, to 17%—and why we have supported £22 billion of research and development through tax credits for UK companies. This environment helps our manufacturers to grow as innovative, competitive companies.

[Gordon Henderson]

I welcome the Minister’s response, but what message is he sending to international manufacturing companies with operations in Britain about this country’s future international competitiveness as we leave the European Union?

[Mr Gauke]

Our message is straightforward: Britain is open for business. As the Prime Minister has said, we are and will continue to be a confident, outward-looking country.

Equitable Life

Gordon Henderson Excerpts

Thursday 11th February 2016 Commons Chamber

[Gordon Henderson (Sittingbourne and Sheppey) (Con)]

Much of what I wanted to say has been mentioned already by other hon. Members, including my hon. Friend the Member for Harrow East (Bob Blackman), who has been a fierce and consistent champion for Equitable Life policyholders. I wish to make very clear my continued support for the Equitable Life policyholders in my constituency, and I believe the best way to do that would be to resurrect some comments I made in a speech in this House almost six years ago. That speech was one of my first after being elected in 2010, and it brings into sharp relief just how long some of us have been trying to get justice for those of our constituents affected by the collapse of Equitable Life, some of whom lost thousands of pounds.

I pointed out the following in that speech:

“Several hon. Members have suggested today that the Equitable Life scandal—and a scandal it was—is complicated, but for me it is actually quite simple. It is about fairness to a group of people who were badly let down by the regulatory failures of their Government. I went into the recent general election supporting a Conservative manifesto that made a promise to Equitable Life policyholders in my constituency. It said:

‘We must not let the mis-selling of financial products put people off saving. We will implement the Ombudsman’s recommendation to make fair and transparent payments to Equitable Life policy holders, through an independent payment scheme, for their relative loss as a consequence of regulatory failure.’”

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

My hon. Friend refers to that manifesto commitment in 2010. May I tell him that in the previous Parliament I helped to set up the all-party group and that we interviewed the then shadow Ministers at that juncture and they promised they would do everything to help the people affected? My constituent, Mr Meinertzhagen has lost half his pension as a result of this terrible tragedy.

[Gordon Henderson]

I am grateful to my hon. Friend for bringing that to my attention.

I continued that speech by saying:

“I wish to take this opportunity to assure policyholders in my constituency that I for one do not intend to go back on that election pledge.

Most people accept that Equitable Life policyholders were the subject of Government maladministration, and that is certainly the view of the ombudsman, Ann Abraham. There is some dispute on all sides, however, about the level of compensation that should be paid to policyholders. Sir John Chadwick’s report established that the relative loss suffered by Equitable Life amounted to between £4 billion and £4.8 billion, and the Financial Secretary, in his statement to the House this July, supported that figure. However, Sir John then used a series of convoluted calculations and speculative assumptions that allowed him to suggest a cap on the total amount of compensation that should be paid. He then went on to reduce that cap figure to just 10% of the relative loss figure that he himself originally calculated.

One of Sir John’s most telling assumptions was that the majority of policyholders would have invested in Equitable Life irrespective of maladministration. That is a very big assumption that cannot be proved or disproved…

Like many Members, I have been in touch with many of those policyholders, and all they want is fairness, because they are fair-minded people. However, they are not stupid people, and they recognise that in these times of austerity even they must shoulder some of the burden needed to bring down the country’s massive debt mountain.”—[Official Report, 14 September 2010; Vol. 515, c. 834-35.]

That was my position in 2010 and that position has not changed.

The Government went some way towards compensating those who lost money in the Equitable Life scandal, but that compensation met only part of the loss, so the Equitable Life investors in my constituency received partial justice. In truth, partial justice is no justice at all, and I urge the Government to give people justice now.

Green Economy

Gordon Henderson Excerpts

Thursday 28th June 2012 Commons Chamber

[Laura Sandys]

I thank my hon. Friend for his comments, and, exactly as he says, there was an emerging industry and significant Government support, which saw the opportunities that the sector could offer to our industrial policy and to energy security and resilience. On industrial policy, we also supported the car industry. In the ’80s we gave generous incentives to Nissan to attract it to the UK, and, when we look at our long-term, and now leading, role in the motor sector, we find that that has been a huge success.

So it is neither unusual nor wrong for government to incentivise energy investment or to support industrial development, and that is why I am pleased that this Government have put in place so many fiscal measures to do just that in relation to the new generation of energy sources and to investment in green technologies.

There are unfounded rumours that some in government have gone cool on the modern green agenda, but I know that not to be the case. I know that the Chancellor is committed to inward investment and to ensuring that companies such as Vestas reconsider their investment in north Kent.

I know that my hon. Friend who represents Sheerness—

[Gordon Henderson (Sittingbourne and Sheppey) (Con)]

Sittingbourne and Sheppey.

[Laura Sandys]

I know that my hon. Friend the Member Sittingbourne and Sheppey (Gordon Henderson), whose main port is Sheerness, is very keen to ensure that in the south-east we secure an important manufacturer of wind turbines.

I know that Treasury officials are totally committed, as they were to the oil and gas sector in the ’70s and ’80s, to attracting the new jobs and growth that are emerging from the fastest-growing business sector in the UK; and I am sure that all in government are focused on securing the £200 billion of funds to rebuild our energy sector in a highly competitive capital investment market, where policy certainty is fundamental to investment decision making.

All that the Government need to do to unlock those industrial opportunities is to sustain and reiterate their consistent and constant policies, with subsidies based only on proper evidence and with investment messages that resonate among the largest industrial companies in the world, such as Siemens and GE, and the large energy generators.

--- Later in debate ---

[Gordon Henderson (Sittingbourne and Sheppey) (Con)]

We will hear in the debate arguments for and against investment in renewable energy, although I can see only one person in the Chamber who is against such investment. Those on both sides of the argument would probably agree on two things: the first is that there is only a finite supply of fossil fuels, and the second is that Britain relies too heavily on foreign imports for the energy needed to power its homes and businesses.

Both factors are problems that need to be addressed if Britain is to have long-term energy security. Hon. Members have a choice: we can leave the problem for our children and grandchildren to solve in 40 or 50 years’ time, when it might be too late to find a solution, or we can get to grips with the problem now and ensure that future generations can switch on their lights.

The problems I mentioned are interlinked and can be solved only by finding replacements for the fossil fuels on which Britain has become too dependent. There are a number of options, including nuclear power, shale gas, clean coal technology, biomass energy, anaerobic digestion, ocean wave energy, tidal power and wind energy. The sensible long-term strategy would be not to major on any one of those alternatives, but to establish a national plan that draws in power from all of those sources to supplement the reserves of oil that will become increasingly scarce and expensive over the next few decades.

The advantage of establishing an alternative energy industry is that most of the components needed to generate power could be sourced in Britain. That is particularly true of the renewable energy sector. As an island, we have the advantage not only of a limitless flow of water, but also of access to all-year-round wind, particularly offshore, which leads me nicely to that part of the green economic sector on which I would like to concentrate.

Many oppose an expansion in Britain’s wind capacity. They either say that wind turbines will never produce enough electricity to make them viable, or object to the use of Government subsidies to encourage investment in wind energy, or both. I would have more sympathy for the first argument if wind turbine technology had stood still, but it has not. For instance, the new V164 offshore turbines, which are being developed by Vestas on the Isle of Wight, each generate 7 MW of electricity.

It was with deep regret that we learned one week ago that Vestas has decided not to renew its option for land at the port of Sheerness, which had been set aside as the site for a factory that would have produced the blades for the V164. That factory would have created 2,000 new jobs for my constituency, and many of them would have gone to people living in my constituency. Given that my constituency has a higher unemployment rate than the average south-east constituency—in Sheerness East, where the factory would have been built, it is more than 11%—the decision by Vestas has been another blow to the morale of my constituents.

In many ways, Vestas’ decision is surprising, because Sheerness is an ideal location for a wind turbine factory, which is why I will be working closely with Swale borough council, Kent county council and the Department for Business, Innovation and Skills to attract another manufacturer to the Isle of Sheppey. Full planning permission is in place, and we have the right infrastructure and a willing and ready work force; all we need is somebody willing to take Vestas’ place.

[Mr Lilley]

Will my hon. Friend confirm that the one thing that none of those organisations can do is offer a subsidy to anyone to come to his constituency to produce wind farm components? It might be desirable that they should—it would certainly be a better use of money than subsidising rich landowners to install wind farms—but it is not the case. Can he confirm that?

[Gordon Henderson]

I can confirm that none of those organisations can offer such a subsidy, but that is not to say that we cannot do something to attract an alternative.

[Andrew George]

The hon. Gentleman will surely acknowledge that one thing that the sector, particularly the production sector, wants more than anything else is the underbelly of a functioning sector—one where there is a market, even if only initially in the UK, and certainty. That is one thing that the Government can and need to provide.

[Gordon Henderson]

I agree, and I shall come to that in a moment. Vestas has not given any reason for its decision, so we can only speculate on why it decided to pull out of Sheerness. A few months ago, it announced that it was slowing down development of the V164 to take account of the current economic conditions and the needs of their potential customers, which is what the hon. Gentleman touches upon. As I said, though, I will return to that point later.

That slow-down has resulted in the slipping of the date for erecting the prototype VI64 from the end of 2012 to 2014. I can only assume that Vestas took the decision—quite sensibly from a commercial perspective—that it did not want to lay out more money in an option on land for which it had no need for the foreseeable future. What will happen in 2014 is anybody’s guess, and that is a big worry both for my constituents and those of my hon. Friend the Member for Isle of Wight (Mr Turner). It is still conceivable, I suppose, that Vestas will come to Sheerness in 2014, but it will only proceed with its project if it can obtain firm orders for the VI64, and no potential customers will commit to those orders until they are clear about the Government’s commitment to offshore wind energy. Currently, however, the Government’s position is not clear, so I would like it to be made clear.

That brings me to the issue of subsidies, which has been raised already. As a Conservative, I am not naturally in favour of taxpayers’ money being used to help any business. If a product is good enough, it should be able to stand on its own two feet. I accept, however, that strategically Governments often use taxpayers’ money to invest in research and development in some industries, particularly where such developments are in the national interest—the defence industry is a case in point, of course. I believe passionately that securing energy supplies into the next century is in our national interest and that it will benefit Britain if taxpayers’ money is used to encourage the development of alternative sources of energy, whether nuclear power, shale gas or offshore wind. For that reason, I will gladly support the motion.