Oral Answers to Questions

Jessica Morden Excerpts

Tuesday 13th December 2016 Commons Chamber

[Mr Hurd]

My hon. Friend is right to point out that these rates are set independently. She will also know that the overall net effect of the reforms is to reduce business rates and that some transitional relief is in place. She is also right to highlight the challenges in respect of businesses that have installed solar for their own use, and we are working through that issue.

[Jessica Morden (Newport East) (Lab)]

When will the Government publish their response to the Law Commission’s report on “Consumer Prepayments on Retailer Insolvency”? We need to do more to protect consumers when businesses go into administration.

[Margot James]

I will note the hon. Lady’s comments and I will write to her. I am sorry, but I did not hear all of the question.

Tidal Lagoons and UK Energy Strategy

Jessica Morden Excerpts

Tuesday 6th December 2016 Westminster Hall

[Jessica Morden (Newport East) (Lab)]

I too congratulate the right hon. Member for Preseli Pembrokeshire (Stephen Crabb) on obtaining this timely debate. He mentioned that the Hendry review is with the Government this afternoon, and I share the desire to hear about it from Ministers as soon as possible. The debate is a demonstration of how much cross-party support there is in this place, as my hon. Friend the Member for Swansea East (Carolyn Harris) said, for the development of tidal lagoons. That support is pretty unique, and indeed there is also cross-party support in the Welsh Assembly and elsewhere. I should also mention that my hon. Friends the Members for Cardiff South and Penarth (Stephen Doughty) and for Ogmore (Chris Elmore), who are upstairs in a Bill Committee, want their support for the project to be stated.

We all hope that the Minister will have something to say this afternoon about when he will share the Hendry report with the House, as it was not mentioned in the autumn statement. The delay is frustrating, because we want the Swansea bay tidal lagoon to go ahead—and, as others have said, not just as a one-off or a stand-alone project, but as a pathfinder for yet more tidal lagoons across Wales and beyond, including in Newport, as set out in Tidal Lagoon Power’s plans. A couple of streets away from my home there are the most beautiful views of the expanse of the Severn estuary. From my constituency office on the banks of the Usk we can watch the dramatic rise and fall of the second highest tidal range in the world every day. It is an amazing natural resource on our doorstep, and we are just not using it. At a time when we desperately need clean, secure energy, year-round, entirely predictable energy, tidal lagoon technology is the key to delivering a low-carbon energy future in Wales. We have to grasp that opportunity.

The benefits for Wales and elsewhere have been clearly spelled out in this debate. They include the chance for Wales to be a global leader in the technology, starting in Swansea. More than 2,000 direct jobs would be created in the manufacturing and construction process, and many more would be created in tourism and the supply chain. There would be a huge boost to the Welsh economy. There would also be the potential for long-term cost reduction as more lagoon technology was built, and, importantly, for exporting the technology. A Newport lagoon further down the line would bring construction jobs and the chance to use Welsh steel, which my hon. Friend the Member for Aberavon (Stephen Kinnock) mentioned—it has been an incredibly difficult time for that industry. The Liberty House Group in my constituency supports the project; a lagoon in Newport would be less than a mile from its steel plant, which I visited recently.

The project is not only a matter of renewable energy generation and playing our part in meeting climate change targets. There is also a chance for coastal regeneration and a boost to recreation and tourism. The leader of Newport City Council, Debbie Wilcox, has given it her backing and said it is a “marvellous opportunity for Newport”. There is huge added value in the project—not least from up to 33,000 jobs at the four lagoons in Wales, were they to go ahead. It is an amazing opportunity that we should grasp for Swansea, yes—but also for Newport. I urge the Government to make a timely decision.

Steel Industry

Jessica Morden Excerpts

Thursday 3rd November 2016 Westminster Hall

[Jessica Morden (Newport East) (Lab)]

I, too, thank my hon. Friends the Members for Middlesbrough South and East Cleveland (Tom Blenkinsop) and for Redcar (Anna Turley) for securing this debate, and for their sterling efforts on behalf of the all-party group on steel and metal related industries, which is out today in some force.

Last week, the Community union, which does an absolutely fantastic job for its members, quite rightly praised steelworkers in a statement, saying:

“We believe the workforce should be commended, in the strongest terms, for continuing to deliver for Tata throughout this exceptionally difficult period and indeed restoring previously loss making parts of the business to profitability”.

I start with that quote because it is right that we always acknowledge what a difficult time this is personally for those who work in our steel industry. We must never underestimate the effect the continued uncertainty is having on steelworkers and their families. I know that from talking to those who work for Tata at Llanwern and at Newport Orb. A steelworker emailed me last week to say:

“We feel forgotten about and we have no news on the Government’s and Tata’s plan for the pension, no news on where we stand on the future on any proposed merger, no answer on the deficit etc. Things seem to have come to a standstill and there are no answers coming from Parliament or Tata”.

That very much echoes what my hon. Friend the Member for Aberavon (Stephen Kinnock) said at the start of his speech. Aberavon and Port Talbot’s fortunes are very much linked. I absolutely concur with what my hon. Friend said about that feeling of uncertainty and how difficult it is for people. Many steelworkers feel that their lives are on hold. I hope the Minister understands that and takes it away from the debate.

We have in this place relentless debates, questions and statements about steel. Just yesterday there were two fantastic questions at Prime Minister’s questions from my hon. Friends the Members for Cardiff South and Penarth (Stephen Doughty) and for Penistone and Stocksbridge (Angela Smith). In response, the Prime Minister said:

“This Government have stood up for British-made steel, and we have taken a number of measures”.—[Official Report, 2 November 2016; Vol. 616, c. 880.]

She also said,

“we recognise both the importance of steel and the importance of Tata in the United Kingdom.”—[Official Report, 2 November 2016; Vol. 616, c. 886.]

On the lack of clarity about Brexit, she said:

“I am very clear that what we want to achieve is the best possible deal”.—[Official Report, 2 November 2016; Vol. 616, c. 880.]

We appreciate those words, but we need more detail and more commitment from the Government, with stronger words and stronger action.

Workers in my constituency want to know that the Minister is fully engaging with the short-term urgency of the problems facing the Welsh steel industry. There are bits of good news, but the underlying problems have not gone away, as many other Members have said. We are still waiting for assurances from the Government about Port Talbot, which will affect Llanwern, and for any news on the joint venture between Tata’s strip products division and ThyssenKrupp, which could affect Orb in my constituency. If there is such news, what assurance can the Government give that commitments will be made on jobs, investment and the continuation of primary steelmaking at Port Talbot and across south Wales?

The Government lobbied against the EU imposing tariffs on the dumping of Chinese steel. The Prime Minister did not even put Chinese steel dumping on the agenda when she first met the Chinese Prime Minister. Electricity prices are still a huge issue in the UK, with a disparity of £1 million a week between the UK and Germany, which has an effect on competitiveness. As many Members have said, despite the procurement guidelines, French steel is still being imported for Trident renewal. I know we will all be watching as large infrastructure projects get the go-ahead. The Government cannot let up on ensuring that all major procurement projects—from rail to airports and tidal barrages, which will be important for places such as Newport if Swansea bay tidal lagoon goes ahead—use British steel.

As every one of my hon. Friends has said, the Nissan announcement is brilliant news, but where is the Brexit plan for the steel industry? So far, the Secretary of State for International Trade has said that he has no plans to support the steel industry with trade defence instruments. When combined with the other uncertainties Brexit has caused, that is a major concern. Brexit has many other implications for the industry, so we want similar assurances to those given to Nissan.

In brighter news, the Welsh Government are thankfully doing all they can with the powers and levers available. I very much welcome the active work of Ken Skates, the Welsh Government’s Cabinet Secretary for Economy and Infrastructure, who through Business Wales is supporting the industry through Welsh public sector infrastructure and construction projects.

I appreciate that it is not all gloom and—I will make this point before someone intervenes on me to make it—I also appreciate the point about primary steelmaking. Liberty Steel now employs about 1,500 people, including in the steelworks in my constituency and the two Scottish steel plate mills, one of which I know opened recently in the constituency of the hon. Member for Motherwell and Wishaw (Marion Fellows). Liberty Steel also has the SIMEC Uskmouth power plant and it is involved in the tidal lagoon initiatives, which were mentioned earlier and which are very important, not only for Swansea but, further on down the line, for places such as Newport. Liberty Steel has a long-term, sustainable strategy of steelmaking in the UK and actively invests in steel, power and the downstream industries. As we heard earlier, that is all built around a green steel vision, whereby Liberty Steel is working towards producing steel made from recycled scrap metal and powered by renewable power. That is an important addition to the traditional steelmaking industry.

Finally, I take this opportunity to invite the Minister to visit Newport East to see the site in my constituency and see at first hand the plans for Liberty.

[Mr Clive Betts (in the Chair)]

It is now time for the Front-Bench spokespersons; no more than 15 minutes each, so that there are a few minutes at the end of the debate for the mover of the motion to wind up.

Draft National Minimum Wage (Amendment) (No. 2) Regulations 2016

Jessica Morden Excerpts

Thursday 8th September 2016 General Committees

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

I beg to move,

That the Committee has considered the draft National Minimum Wage (Amendment) (No. 2) Regulations 2016.

It is a pleasure to serve under your chairmanship, Mr Wilson. The purpose of the draft regulations is to increase the hourly rate of the national minimum wage for all workers, and to increase the maximum amount for living accommodation that counts towards minimum wage pay, in line with recommendations from the Low Pay Commission.

The national minimum wage is designed to protect low-income workers, and to provide an incentive to work by ensuring that all workers receive at least the hourly minimum rates set. The minimum wage also helps business by ensuring that competition is based on the quality of goods and services provided, and not on low prices based on low rates of pay.

Following advice from the Low Pay Commission, the Government are uprating the minimum wage from 1 October 2016, so that the main rate for 21 to 24-year-olds will be £6.95 per hour, which represents an increase of 3.7%. Young people aged between 18 and 20 years old will be entitled to a minimum of £5.55, which is a 4.7% increase on the rate now in force, and those aged between 16 and 17 years will have a minimum wage rate of £4.00 per hour. For apprentices aged 19, or those aged 19 and over in the first year of their apprenticeship, we are increasing the minimum wage by 3%, to £3.40.

Turning back to the rate for 21 to 24-year-olds, the increase is the largest cash increase in the main rate of the national minimum wage since 2008. As a result, people working full time—35 hours a week—on the national minimum wage will see their earnings increase by about £450 a year.

The new main rate of the national minimum wage is expected to be at its highest level ever when accounting for the general increases in prices, surpassing its pre-recession peak. In all, we estimate that about 500,000 workers will benefit from all the national minimum wage increases this year.

The accommodation offset was introduced in 1999 and provides a mechanism to offset the cost of providing accommodation for workers against the national minimum wage. Following advice from the Low Pay Commission, we are increasing the accommodation offset significantly, by 12%, to £6.00 per day from 1 October 2016.

Since the introduction of the national minimum wage in 1999, it has been a success in supporting the lowest-paid UK workers. On the whole, it has increased faster than average wages and inflation, without an adverse effect on employment. It continued to rise each year during the worst recession in living memory, and the new main rate is expected to be at its highest ever real value.

[Jessica Morden (Newport East) (Lab)]

May I raise with the Minister the issue of Marks and Spencer workers? There is a campaign to press M&S during its consultation on reducing premium pay for Sundays and bank holidays and on reducing pension contributions—changes that would hit some of the longest-serving staff hardest. Does she agree that it is unacceptable for companies to contemplate making such changes in light of the national living wage coming in?

[Margot James]

I thank the hon. Lady for her intervention. I propose meeting Marks and Spencer to discuss a range of matters, including some of the points that she makes. It is important to remember that, by law, as long as companies pay the national minimum wage and, in future, pay those over 25 the national living wage, there will be a limit to what the Government can do, apart from expressing a keen concern that employers should operate within the spirit, as well as the letter, of the law.