Faulty Electrical Imports

Jim Fitzpatrick Excerpts

Tuesday 22nd March 2016 Westminster Hall

[Jim Fitzpatrick (Poplar and Limehouse) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Davies. I congratulate my hon. Friend the Member for Swansea East (Carolyn Harris) on securing this important debate and thank her for her effective presentation of all the issues, many of which have also been covered by the colleagues who have followed her. I am happy to follow the hon. Member for Glasgow North West (Carol Monaghan). We southsiders are always happy to learn from the north of the city and, having learned, take the lead and show the way. I will try to copy her timekeeping as well, Mr Davies.

I am secretary to the all-party group on fire safety and rescue. Several colleagues present are active in the group. The next meeting is at half-past 1 today, but I understand that colleagues might be conflicted given what will be going on in the Chamber at the same time. I express my appreciation to Rob Jervis-Gibbons and his colleagues at Electrical Safety First for their briefing for this debate. I do not intend to repeat the many issues raised so clearly and effectively by previous speakers, so I expect my contribution to be brief. I look forward to the responses from the Front-Bench spokespersons, especially that of the Minister, who this morning has to be not only the authentic voice of the Conservative party but its only voice. Given the importance that the rest of us attach to the debate, that is a wee bit sad. That is not a criticism of him or his Department. As has been articulated, we are all looking for reassurance on this matter.

My hon. Friend the Member for Swansea East has raised the important issues: brand imitation, substandard products, the risks from online sales and unscrupulous sellers, and the ability of trading standards officers to respond to growing risks in the face of budget restraints and cuts. Additional risks are posed by consumers who do not respond to manufacturer recalls, as the hon. Member for Strangford (Jim Shannon) mentioned. He cited the very worrying statistic that only 10% to 20% of recalled products are returned or repaired. ESF’s analysis found that consumers did not respond because they were worried that they would be targets for future marketing campaigns. Although that sounds strange, it has a realistic ring to it. Manufacturers have to address that worry.

Given the growing threat, I am interested to hear how the Government feel they are doing in protecting the public. As has been mentioned, ESF estimated the counterfeit trade to be worth £90 million in 2013-14—in that year alone, customs detained 21,000 consignments at UK borders. I have several questions for the Minister that are similar to those asked by the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier). In fact, I think some are the same as hers, which should save the Minister’s time. Hopefully he will be able to provide responses.

Do the Government believe that the ESF analysis covers the scope of the problem, or do they think it is far more serious? The lack of a proper assessment leads to concerns that perhaps the figures are even worse than those in the public domain. Do the Government have a strategy to support trading standards officers in tackling the problem? What efforts are the Government making to tackle online sales of dangerous products? What liaison has there been with online companies and social media sites?

When was the last review of the legislation covering these areas? As my hon. Friend the Member for Swansea East said, and as ESF highlighted, the legislation is from 1994—well before the explosion of internet trading. Are the Government confident that the law as it stands is robust enough for the present day? Have they reviewed the recent trend of fires in domestic premises caused by electrical sources? If so, what evidence did they find? If not, will they do so in conjunction with the Minister for Policing, Fire, Criminal Justice and Victims?

I do not for a second question the Government’s intention; they take this matter very seriously. We simply seek reassurance that we are doing everything possible to ensure that the good people on the frontline have the resources and tools they need to do their job and protect society. As many colleagues know, I was in the London fire brigade for 23 years before I was elected to represent my constituency. Fire service personnel will always put themselves at risk to deal with fires, but despite the efficiency of the British fire service 70 people died. The fire brigade cannot protect everybody, so the Government must ensure that things do not get that far. The purpose of today’s debate is to ensure that matters do not come to such a tragic end. However consumers buy electrical goods in the UK, they must be able to do so in the confidence that they are not buying a product that could harm them or their family.

[Geraint Davies (in the Chair)]

Thank you for your brevity. To continue the melody of Celtic voices, I call Martin Docherty-Hughes.

--- Later in debate ---

[The Minister for Skills (Nick Boles)]

It is a pleasure to serve under your chairmanship, Mr Davies, on this sad day. I associate myself with the comments about the victims in Brussels. I congratulate the hon. Member for Swansea East (Carolyn Harris) on securing the debate and making such a comprehensive and thoughtful exposition of the issues that not just worry her but led directly to the death of one of her constituents. I also congratulate Electrical Safety First, which has clearly done a superlative job of engaging with Members from all parts of the House and providing them with compelling briefing.

In the debate, the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) got to the heart of the matter—the question of whether the arrangements we have to protect consumers are fit for purpose in the age of the internet, with globalised supply chains, where enforcement at a very localised level, as she called it, does not really address some of the bigger problems and sources of risk. It is for that reason that we did not feel that the previous review of trading standards had gone far enough: it did not really address her question. That is why a more fundamental review, not so much of trading standards as such, but of consumer protection in an internet age, has been launched by my hon. Friend the Minister for Small Business, Industry and Enterprise. In the meantime, I will explain in the brief time available what the Government are doing with trading standards and other enforcement bodies. I hope thereby to answer most of the questions posed to me in the great range of excellent contributions from hon. Members.

The Department for Business, Innovation and Skills provides £14.5 million a year to National Trading Standards and to Trading Standards Scotland, which use that money in large part to focus on the problems of faulty goods, counterfeit goods and the various different ways, whether through fulfilment houses or online trading sites, in which they find their way into the country. National Trading Standards has a safety at ports and borders team that focuses in particular on the physical import of those goods, but there is also close work between National Trading Standards and major sites such as Amazon, eBay and Facebook, which are clearly one of the main ways in which consumers are being sold either faulty or counterfeit or both faulty and counterfeit goods.

I will give one vivid and recent example of the enforcement action being undertaken. Operation Jasper involves 63 local authorities’ trading standards officers and has led to 4,300 Facebook listings being taken down, 12 premises raided and 200 warning letters sent to other traders. That is the kind of proactive enforcement that we want to see. I am sure that there is always more that can be done, but National Trading Standards and local trading standards are working closely with sites such as eBay, Facebook and Amazon on such measures. As another example, some brands of hoverboards and LED Christmas lights—items that were mentioned in the debate—were removed from eBay last October as a result of enforcement activity by trading standards.

The question of counterfeit goods is in a sense a subset of the issue we are debating, rather than a different matter. Some of the goods in question are not counterfeit; they are just faulty. Others are counterfeits but not faulty, and some are both. In September 2013 the coalition Government launched a dedicated intellectual property crime unit, run by the City of London police. That has been taking action against sellers who use Facebook, and those who use the more traditional route for counterfeit goods—the much-loved tradition of car boot sales. In legislation in 2014 we introduced a criminal sanction against the sale of counterfeit versions of goods that have registered trademarks or patents, to give legitimate producers a greater enforcement ability against those who persistently flout their intellectual property rights.

I want briefly to mention fulfilment houses, because they are one of the routes through which faulty and counterfeit goods can make their way to the consumer. As the hon. Member for Swansea East mentioned, there is one such fulfilment house in Swansea that has been the subject of enforcement action by trading standards and Her Majesty’s Revenue and Customs. That action is continuing, but it has led to a large quantity of non-compliant goods being removed from sale, including unsafe electrical products and counterfeit goods. I hope that that goes some way to reassuring hon. Members that there is quite a range of enforcement activity—some that is more traditional, as well as other approaches that address the new globalised problem created by the internet. We should acknowledge, as I think we all do in our own lives, the massive opportunities that the internet has brought us.

[Jim Fitzpatrick]

I am not sure whether the Minister mentioned the timescale for the review of trading standards. Can he suggest how long it will last and what the outcome might be?

[Nick Boles]

I do not know off the top of my head, but I am happy to write to the hon. Gentleman about that, and to copy in other hon. Members who have attended the debate. We have quite a range of expertise in the debate, and it would be useful to have contributions from hon. Members on both sides, including, perhaps, representatives of the Scottish Government, who I know also do a great deal of work on the question.