Energy Company Licence Revocation

Debate between Henry Smith and Caroline Flint

Wednesday 3rd September 2014 Commons Chamber

[Caroline Flint]

I really think the Secretary of State is clutching at straws here. We believe very strongly—this is why we set out a Green Paper for energy market reform—that we have identified and tapped into some answers as to how to reform this market. I have to caution the Secretary of State. He may be surprised, if he asks his advisers, and perhaps speaks to some of the energy companies, how in a number of areas they welcome some of our reforms. So he needs to be a little more cautious about putting down Labour’s proposals. A number of them command respect across this House—even though it might not be said publicly—and, actually, in the energy sector as well.

[Henry Smith (Crawley) (Con)]

Would the right hon. Lady not concede, however, that part of the problem with competition in the energy market was the creation of the big six energy suppliers, which of course took place under the last Labour Government?

[Caroline Flint]

The hon. Gentleman should also be aware that it was John Major as Prime Minister who took through the changes that enabled those who generate and those who supply to merge their businesses. The result was we saw a number of companies—14, I think—decide they wanted to generate and supply and the big six arose out of that. However, whatever has happened under Labour or previously under the Conservatives in terms of privatising this market, I hope we can all agree that the ambitions for how that market would work after it was privatised have not been realised in the way some of the architects of privatisation perhaps thought they would. As I have said, we cannot let the past paralyse us from changing what needs to change. That is why we have put forward a number of very practical recommendations, which, sadly, have been voted down by the coalition Government time and again.

As to today’s motion, we propose one measure on which I personally find it hard to believe we cannot agree: a new power for the regulator to revoke energy companies’ licences where there are repeated instances of the most serious and deliberate breaches of their licence conditions which harm the interests of consumers. As the motion notes, consumers rightly expect to be treated fairly and to be confident that energy companies will meet their obligations and provide good services. Where companies breach those obligations, decisive action should be taken to put things right and prevent further breaches. So where the regulator has taken action, we have supported it, and where the Government have introduced sensible new measures, such as criminal sanctions for market manipulation and consumer redress orders, we have supported them. Indeed, in the case of consumer redress orders, we urged the Government to go further, because at the moment if any malpractice that happened before 2013 comes to light, the regulator will have no legal power to impose a consumer redress order.

Localism Bill

Debate between Henry Smith and Caroline Flint

Monday 17th January 2011 Commons Chamber

[Caroline Flint]

With respect to the hon. Gentleman, I was not referring to parish plans. I have met representatives of parish and town councils, and one of the questions that they have raised—fairly, in my view—is how parish plans might work in relation to neighbourhood development plans, and which would take priority. I am sure that we will examine such issues in Committee in order to ensure that we do not end up with over-duplication.

I know that parish and town councillors do a fantastic job. My constituency contains many parish and town councils. However, we need to ensure through neighbourhood plans that it is not possible for a few people who are not elected representatives to create a forum in which they can impose their will on others in various ways because of their clout and their finances. We need to ensure that the plans allow communities to be represented fairly. We also need to consider the implications for councils in terms of the cost and the additional responsibilities that will be expected of planning officers and others who service the neighbourhood plans. It is not that the idea is necessarily wrong, but we shall need to establish how it will work in practice, and whether it actually amounts to much. Is it all that meets the eye? That is what people want to know. They do not want to be led up the hill only to be marched down it again. That is not the sort of politics in which we should engage.

[Henry Smith (Crawley) (Con)]

Does the right hon. Lady think it better for planning decisions to be made by unaccountable regional quangos or by local people?

[Caroline Flint]

I do not think that the answer should be more powers for the Secretary of State, for a start.

What I have said also applies to the community right to challenge. We are in favour of empowering front-line staff. In many instances, not just in local government but in the health service and elsewhere, our staff should be at the forefront in coming up with ways of improving services. Those on the front line often have better answers than some managers. Many councils of all political persuasions already engage community organisations and voluntary groups in the delivery of local services. That is not new, and we think that it should be encouraged. However, those organisations need support. Given that their resources are being cut throughout the country, and given that there is no provision other than the right to be considered, we remain to be convinced that this part of the Bill will mean much in practice.

The Secretary of State tells us that this Bill is the centrepiece of what the Government are trying to do to shake up the balance of power in the country fundamentally, but perhaps what is most striking about it is what it fails to deal with. Across every community in the country people often feel that they do not have enough of a say about what happens in their local area, whether in local bus services, community policing, the district hospital, or in the jobcentre’s tackling unemployment. This Bill says nothing about that; it offers nothing to remedy that. Giving elected local representatives the power to summon people before their committees much as we do in the Committees of this House would be one simple, practical thing to give local communities a real say in the services that they use, but the Bill fails to do that.

In turning to the proposals—[Interruption.] Well, I understand from reading the Bill that scrutiny committees can summon an officer of the council, but they can merely invite someone from another organisation. There are no summoning powers over representatives of the utilities, for example, or over the district commander. That is what we are talking about: proper accountability, and proper powers for scrutiny committees.

On the Bill’s proposals on housing, it is again difficult not to be disappointed. For some homeless households, a home in the private rented sector may be a better option than social housing if that avoids long waits in temporary accommodation and provides greater flexibility of location than social housing, but that should be a choice for the household involved, so we will not support a proposal if it allows the most vulnerable members of our communities to be forced into unsuitable accommodation.

What else is missing from the Bill? There is a complete absence of reforms to the private rented sector—the Bill does not even touch on the subject—and we remain to be convinced that there is sufficient quantity of decent homes in the private rented sector to house those in need.

Local Government Funding

Debate between Henry Smith and Caroline Flint

Monday 6th December 2010 Commons Chamber

[Caroline Flint]

The constituency of the leader of the Labour party is actually Doncaster North not Doncaster Central.

As I opened the debate, I did not hesitate for a moment to say that reductions and cuts would have had to be made. The question is how much, how deep and how fast. It is not just Labour politicians who are saying that; the chair of the Local Government Association, Baroness Eaton, a Conservative peer said:

“The unexpected severity of the cuts that will have to be made next year will put many councils in an unprecedented and difficult position.”

I could not have put it better myself.

[Henry Smith (Crawley) (Con)]

Will the right hon. Lady give way.

--- Later in debate ---

[Henry Smith]

The right hon. Lady said that we are apparently yet to see any localism or devolution to local government, but does she concede that greater flexibilities and the ending of the ring-fencing of many budgets will give exactly the flexibilities that many local communities need? It will certainly be welcomed by my local authority, West Sussex county council, which suffered eight years of the lowest possible Government settlements under the previous Government.

[Caroline Flint]

I recognise the hon. Gentleman’s experience in local government; I believe he was leader of West Sussex county council.

The Secretary of State says that local councils have a choice:

“They can panic; they can slash and burn services regardless of the impact that will have. Or they can take the opportunity to completely rethink everything they are doing, creating a modern, flexible and innovative council.”

Councils should be modern and should embrace flexibility and innovation, but by imposing such huge, unprecedented front-loaded cuts on them he denies them that very choice. How can councils completely rethink everything in a matter of a few weeks?