A Green Industrial Revolution
Jim McMahon Excerpts(4 years, 11 months ago)
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Rebecca Long Bailey
I thank the hon. Gentleman for his comment. Certainly, there is no point in having a target without having an ambitious plan to deliver it. We know from the work of leading scientists across the world that the majority of the work that needs to be done even to reach net zero by 2050 must be done by 2030. That is an inescapable fact and that is why we have to move so quickly.
The Government have started to work towards insulating social homes. That is welcome, but it is not enough. We need to look at how we can support the UK’s 27 million homes to take part in a home insulation programme that will not only tackle climate change but help to bring down bills. We had an ambitious package for that but unfortunately we did not deliver that message strongly enough in our election campaign.
Jim McMahon (Oldham West and Royton) (Lab/Co-op)
Does my hon. Friend agree that the Government’s rhetoric is far away from the action that we actually see? In Greater Manchester we have a clean air crisis where people are literally dying because of the quality of the air. When the Mayor of Greater Manchester made an approach to Government for grant support to help taxi drivers and the self-employed to transition to new vehicles, the Government were not even willing to meet him halfway.
Rebecca Long Bailey
My hon. Friend is quite right. We are expected to encourage our localities and our regional governments to take part in the climate emergency and to do their best to deliver plans on a local scale, but they are not being given sufficient resources to be able to do so. That is not acceptable, because this is a national crisis and a local crisis. That goes right to the heart of the point about public transport. We need to make sure that all the workers involved in transport are given the opportunity to deliver transport that is eco-friendly, but they are not, particularly taxi drivers. Taxi drivers, in many cases, cannot afford to transition to electric vehicles as rapidly as we need them to, and we must provide the support that is necessary for them to be able to achieve that.
Jim McMahon (Oldham West and Royton) (Lab/Co-op)
It is a pleasure to follow the maiden speech of the hon. Member for East Surrey (Claire Coutinho) and all the other fantastic maiden speeches. I think back to four years ago, when I was in the same position, as it is a huge responsibility to make a maiden speech. I encourage hon. Members to get their printed copy from Hansard, as it is quite a treat to take back home.
This debate, which is both timely and long overdue, is about how our country can address the climate emergency while realising the economic benefits of developing a new settlement for communities that feel frustrated with the current offer. I do not claim to be any kind of climate expert—I have read the briefings, as other hon. Members have—but I can see the difference. There is a spectrum of views on the climate emergency in this House. I do not claim to have had the ability of the hon. Member for Brighton, Pavilion (Caroline Lucas) to foresee it, but I can see what is in front of my eyes. I worry that some hon. Members are blind to what is staring us right in the face.
We all need to learn, to be educated and to form solutions together to address the climate emergency and to build a shared future. None of us can escape the extreme weather conditions or the impact of flooding and coastal change. Parts of the planet are burning today. There is a financial cost, but the human and wildlife cost is significant and the suffering is evident. We are seeing water shortages, we are seeing the effect on natural ecosystems, biodiversity and coral reefs, and we are seeing the impact on crop production. And we all know it is always the poorest in society who pay the price when crops fail or when water runs short.
It is our collective responsibility to try to find a solution. The movement has been significant, whether in the large-scale protests by Extinction Rebellion or in the localised protests by schoolchildren on Fridays. Young people in Manchester have actively participated, and they want their voices to be heard because they have a bigger stake in the future.
I really worry about the Government’s approach, as they have not invited Extinction Rebellion for a conversation to seek common ground. Instead of building bridges, the Government are building walls. We need a common shared vision on how best to address this emergency. That is a missed opportunity.
I believe a different way is possible, so I did not turn a blind eye to the protestors in Parliament Square. I wanted a conversation with them about their views in order to seek common ground on the solutions, so we had a meeting in 1 Parliament Street. I said, “This is your Parliament. Instead of protesting outside, come inside and have a conversation to see where we can make progress together.” One of the people I met during those conversations was a man called Paul, who is commonly known as the “tree lawyer” because of his real passion for protecting our ancient trees and woodlands.
The aim of that meeting was not only to connect, but to protect. The first challenge is: how do we connect everyday people with the environment? We talked about the challenges and how people are sometimes very disconnected from the environment, and about the interventions, sometimes small ones, that we can make to connect people with the natural environment around them. We might dismiss some of those suggestions as being simple, but I was inspired by some of the ideas. For example, when someone is born or given their citizenship, why not, on that document, have a tree or woodland that is planted for them, and, thus really put roots in the ground? Why not fight to say that every child will have the ability to look up to a clear night sky or to walk to school without breathing in toxic air that could eventually kill them? We see that happen in this country, where people are literally dying as a result of the quality of the air. Why not make urban environments more attractive and much more connected? We talk about connecting the natural environment and about protecting what we have got, but in towns such as Oldham, where terraced streets and industrial land have been built up to make the town we see today, many communities are denied access to good-quality green, environmental space. We need to reinvest in that to connect people with the natural environment.
I am proud to say that in Oldham the council is doing that; this week, it announced plans for a project called “Northern Roots”, whereby we would have an eco-park of 160 acres right in Oldham town centre and beyond, into the countryside. Another suggestion was for worldwide twinning. After the second world war, we made a massive effort to ensure that towns and cities in this country were connected to our counterparts in Europe. Why not do the same today for climate, so that children in Oldham can be connected with children in Bangladesh, and see the human impact of climate change and what it means for children of their age going to school?
We also need to protect what we have got. Paul’s ambition was to give ancient trees the protection they need, but perhaps people just want protection for the green belt, to make sure that those who live in an urban environment have access to good-quality green space. The Government need to do far more, first, to update the population data to make sure that local planning authorities are planning on the basis of the most accurate and up-to-date data, and, secondly, to ensure that we have a proper fund in place to build on brownfield sites. A town such as Oldham has acres and acres of dirty brownfield sites that are contaminated. They are so expensive to build on that it is far easier for a developer to build on green space. We need a new deal for towns such as Oldham so that they can build on brownfield sites, where the community are crying out for new investment, instead of having that impact on the green belt.
Importantly, we also need to connect people with opportunities. When we talk about the type of interventions and behavioural change needed for our environment, we are asking people to make a sacrifice—we are asking the Government to introduce a new tax. What we really need to do is connect people with the opportunities that exist if we take concerted action. So the green revolution, the industrial revolution for our economy, is really important. People recognise that this is an opportunity to have decent, well-paid, secure and skilled jobs. Unfortunately, when people talk about a town such as Oldham, they often talk about the north as though it is some kind of distant land. They talk about a town that once was and not as one that has a stake in the future, but those people could not be further from the truth. When I look at a town such as Oldham, I see that we are still innovating, creating and making things that change the world. Behind those dirty roller shutters people are changing the world in towns such as Oldham, and that provides a foundation for this revolution.
People in Oldham want to know that they have a stake in the future. They are sick of demanding that the Government listen to them and of asking for a fairer share. If we just continue that conversation, we are not capitalising on the skills that still exist in these towns. My town was the home of Ferranti, which made the components for the world’s first computer, of British Aerospace, which made the Lancaster bomber, and of Platt Brothers, which had one of the largest engineering plants in the world. Although those have closed, the skills and values of manufacturing and engineering jobs are still very much in our local economy, and that should be the foundation for the future. And we feel this—we are the gateway to the Pennines, so although Oldham is an urban town on the doorstep of Manchester, we are a stone’s throw from the countryside and we recognise the value that that has.
When planning for the future, we are all very short-term in this place. We are all focused on the next election and the next cycle, and it is hugely damaging for the country and the planet when we behave in that way. The challenge I lay down today is not that we prepare for the next election or Queen’s Speech, but that we think about a child being born today in this country. We need to think that that child will live to see the next century. We need to think about the kind of life they will have, from the moment they are born in their community, to when they go to school, when they start out on their adult life and when they enter old age, and about the type of care they will need and the type of society they will live in. If we think about a child being born today, we will collectively make very different decisions from those we often end up voting for in the Lobby. Let me make it clear that I believe strongly that the foundations are in place in this country to thrive and rebuild on the back of a green revolution. The test for me as to whether Britain thrives—Members would expect me to say this, because I represent Oldham, Chadderton and Royton—is whether towns such as mine can be part of that journey. That is the challenge for the Government, and they need to come forward with concrete examples of how we can connect people, so that they really feel they have a stake in the future.
Oral Answers to Questions
Jim McMahon Excerpts(5 years, 2 months ago)
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Andrea Leadsom
My right hon. Friend is right to raise the much bigger challenge of how to get young people not only into an apprenticeship but past it, enabling their skills to develop. We are doing that in a number of different ways. The Government continue to speak with businesses and monitor the impact of the apprenticeship levy on the performance of young people. We are doing a lot to promote start-up businesses for young people through the British Business Bank, but we continue to need to seek ways to ensure that no young person is left behind.
Jim McMahon (Oldham West and Royton) (Lab/Co-op)
People are living longer, which is a good thing, but they need care in old age. In Oldham, health and social care is a growing industry, but at the moment it attracts the lowest band of the apprenticeship levy. I saw this week that the Department of Health and Social Care was advertising jobs at just above the minimum wage. Will the Department for Business, Energy and Industrial Strategy work with the Department of Health and Social Care to raise the value of those jobs?
Andrea Leadsom
The hon. Gentleman raises a really important point. We want to see young people being attracted to apprenticeships right across the range, and he is right to raise the importance of getting good-quality people into the social care system. I would be delighted to speak with him and others who are interested in that area of future employment.
Crown Post Offices: Franchising
Jim McMahon Excerpts(5 years, 11 months ago)
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Jim McMahon (Oldham West and Royton) (Lab/Co-op)
It is a pleasure to serve under your chairmanship, Sir Graham. You will get the idea that today, tempers are fraught and passions are running high. There is genuine concern about the impact of these policies on our communities, which are met with a Government who are stubbornly pursuing a course of action that has no support. You would be forgiven for believing that you are still chairing the 1922 Committee, but no: this is a debate on post offices, with MPs who are genuinely concerned about the impact of these changes on the fabric of our communities and the future of our high streets. We can dismiss post offices as places where people go just to post a letter or send or collect a parcel, but they are more than that: they are the community. They are part of our collective identity, secure a sense of belonging, and are also important to our sense of place. They are critical to the fabric of our community.
Oldham has seen more than its fair share of changes, and more than its fair share of taking the burden of modernisation and austerity. It has seen every single one of its day care centres and every single one of its council-run youth centres closed. It has seen thousands of staff sacked from the local authority. It has seen its police stations in Chadderton, Royton and Hollinwood closed; it has seen every single custody cell in a town of 250,000 people closed. It has seen the magistrates court closed; it has seen the county court closed. It has seen the taxpayer-supported Royal Bank of Scotland close every single branch in a community of 250,000 people, and when RBS decided to close its high street bank, what did it say? It said, “Part of our consideration is how close our existing branch network is to the post office network, because that will provide an alternative banking function for the local community.”
In these types of consultations, the organisation contacts the MP for the constituency where the branch is based. Ironically, however, Ward Street, where Oldham post office and the Royal Bank of Scotland sit, is on the boundary between Oldham West and Oldham East. My hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams) was contacted and consulted about the closure of the Royal Bank of Scotland branch, and I was consulted about the closure of the post office across the road, but never the two shall meet. There was no consideration of the impact that the Royal Bank of Scotland closing would have on the post office, and the Post Office gave no consideration to the impact on the high street and local community of the closure and relocation that it was proposing. That post office has just undergone a significant modernisation programme, with far more self-service facilities to free up staff time and so provide for a wide range of services that will not be transferred to the WHSmith branch in Oldham’s Spindles shopping centre. That is important—the branch is heavily used. We have not been given the exact usage numbers, but the Post Office admits that the Oldham branch is one of the largest and most heavily used branches in the north-west. That branch is extremely valued by the community.
Critically, the branch is located on one of our main streets, where buses drop people off. There are 62 drop-offs every hour on that road outside the post office. Interestingly, just beyond it is one of the steepest inclines in Oldham, which is quite a steep town anyway—anyone who has been there knows that it is a big hill with a town plonked on the top of it. That is the steepest incline down to the shopping centre, so to get from the string of bus stops to the shopping centre where WHSmith is located, elderly people and those with limited mobility will have to go down one of the steepest inclines in Oldham. At the moment, they can park in the loading bay, or on the yellow lines if they have a blue badge, and pop straight in without any problem. They cannot do that in the shopping centre: a blue-badge holder visiting Oldham shopping centre pays the full price, the same as every other car park user. Straightaway, people who rely on transport and their blue badge to use a post office will be hit with a charge that they currently do not have to pay, just for using that essential facility.
Oldham has a far wider range of services than neighbouring Rochdale town centre, where the beautiful, stunning Crown post office was closed with the promise that one would reopen in future. We are now years on and the replacement has not followed. In Ashton-under-Lyne next door, the Crown post office, in a beautiful Victorian building, was closed and then relocated to WHSmith in the shopping centre. Many of the services provided in Oldham are not provided in our neighbouring towns, so Oldham provides services for nearly 700,000 residents who need, for instance, to use a biometric enrolment service. If a non-EU national needs a residence permit or a permit to work, they have to go and use the biometric enrolment service there. If they do not use the current post office facilities—I understand the contract has been let out elsewhere—the nearest venue to go to from Oldham is Sheffield. How does that make sense when we are just about—potentially; who knows?—to leave the European Union and we do not know what immigration arrangements will be in place and what permits might be needed in future.
The idea of downgrading and changing the service is an absolute nonsense. Even now, particularly in Oldham, where we have a large Bangladeshi, Pakistani and Indian community, a very heavily used service will be taken away from local people and will be transferred.
What about the Care Quality Commission ID services? If someone working in the health and social care industry needs their ID checked to make sure that they are fit to work, they have to go to the post office to get it checked. If that service is not transferred from Oldham into WHSmith, people will have to go to Gorton or to Harpurhey, and there is not a single direct bus route to either of those places.
What about CRB checks if someone wants to work with young people? Teachers and youth workers have to get their ID checked. The service is currently provided in Oldham’s Crown post office, but is not provided in neighbouring Rochdale or Ashton town centres. The idea of downgrading those services for such a large body of the population is an absolute nonsense that shows the lack of co-ordination across Government. Has any consultation taken place with a Home Office Minister on the contractual change for the biometric enrolment service? Has any conversation taken place with the Department of Health and Social Care on the changes to the CQC ID services and the CRB check services if they are not transferred to WHSmith? Financial services, ID checking and current and credit card accounts are currently provided in Oldham, but not in neighbouring Rochdale or Ashton town centre, but they have the potential to be lost during the move, too.
We hit the ground running with the campaign in Oldham and started an online petition. Between our street petition that started in December and the online petition, we have about 2,500 signatures of local people. The hallmark of every one of the conversations that took place concerns how baffled people are that the move is even being proposed. People have been told that all the closures and the downgrading of the high street is because of austerity. They have been told how difficult it is for retail and how everyone needs to take their fair share of austerity and that is why they are losing all these other public services. People have been told that and for quite a long time they accepted that that is just the way it is—times are very difficult and that is the impact. Not a single person can explain why the move makes sense. It makes no sense to the community and the people who use the post office. It makes no sense for the high street to lose a vital anchor to support that part of the town centre and our Market Hall and the traders who operate there.
What about the fabric of our community? We have heard many fantastic contributions about the social role that a post office plays apart from the commercial transactions that are provided. When we hear people defending the modernisation programme—I use “modernisation” loosely—they say, “Things have to change. Things will never stay the way they are. You have to keep up with a changing world.” The post office modernisation programme is a good example of how it has tried to keep up with demand. The number of branches in the 1980s was 22,000. It is now down to 11,000, so we have lost half the network over the past 30 years. That is modernisation—if you like closing stuff—but it has taken on a far wider range of services, trying to be more commercial and trying to attract footfall in its premises. By and large, it has done a reasonable job and the community has benefited.
The Crown post offices have shouldered the burden. When we look at the closures across all the post offices, agency post offices are down by 9%, but Crown post offices are down by 29%. We have lost a third of our Crown post office network as a result of successive closures, but still the public pay into the post office network as a vital public facility. What is the deal? There was no public payback with the Royal Bank of Scotland. Taxpayers bailed out the bankers, and what thanks did they get? They walked away from every one of our towns, cities and high streets. What is the payback for the taxpayer with the post office network? What is the community dividend for the investment that we collectively make in essential public services? It cannot be a repeat of the Royal Bank of Scotland’s “to hell with the community, turn your back on the community”, simply because the Minister would not take responsibility and says, “This is just all commercial.” Such decisions are not commercial when generations of facilities that have been built up to provide that infrastructure in our community will be gone and can never be replaced.
Finally, I congratulate my hon. Friend the Member for Wigan (Lisa Nandy) on securing this debate. She has seen the passion in the room today. I also congratulate the CWU trade union for the work that it does in leading the charge against the changes. The Minister has an opportunity. She is a young new Minister looking to set out on her ministerial career and to make her mark. Let everything that we have learnt over the past two to two and a half years be a lesson for everybody. If we pursue stubbornly a narrow direction that does not have support, ignoring what those with concerns say, we will end up in a cul-de-sac and people will be marked by that. I do not believe the Minister wants that mark on her reputation. I believe she wants a reputation as a Minister who understands that we are all here to represent our communities and to listen and to act on the legitimate concerns raised. Let that be her ministerial reputation and not one of stubbornness and closed-mindedness.
Several hon. Members rose—
Kelly Tolhurst
What is definitely Government policy is to make sure that we have a network of post offices that offer a wide range of services to our constituents, and that that is sustainable into the future. Franchising is not a closure programme. It is a way to secure better sustainability for the future of our post offices, and it is a good thing that Post Office is working with high street retailers to recognise that.
The performance of the Post Office over the past decade shows that the network is at its most stable in a generation. Between 2010 and 2018 we provided nearly £2 billion to maintain and invest in the national network of at least 11,500 post offices.
Jim McMahon
I thank the Minister for her comprehensive response so far, but it would be good to get confirmation that this will move on, because we cannot keep having these debates every few months. Does she realise that the outreach service counts each and every stop that a mobile post office makes as a branch? A single vehicle travelling to a village for half a day each week or every two weeks would class each stop as a branch, which is where the figure of 11,500 branches comes from.
Kelly Tolhurst
I recognise some of the concerns about mobile branches that the hon. Gentleman raises. I can assure him that I am moving on to it, and obviously I have had the opportunity to listen to hon. Members this afternoon. I am sure hon. Members will agree that we do not want to go back to the days when we saw over 7,000 post offices shut, as was unfortunately the case under the previous Labour Government.
The post offices meet and exceed all the Government’s accessibility targets at the national level. Government investment in the network enabled the modernisation of more than 7,500 branches, adding more than 200,000 opening hours per week and establishing the Post Office as the largest Sunday trading network.
The Post Office’s agreement with high street banks enables personal and business banking in all branches, providing vital access to cash and banking services to consumers, businesses and local economies as bank branches continue to close. It is right to say that the agreement held with the Post Office and banks benefits our communities, which, as the Minister responsible I have made very clear to Post Office Ltd, to my colleagues in the Treasury and to the financial institutions that I have spoken to. The Post Office is providing a vital service to our constituents, and it should be remunerated for that—in doing so, hopefully that will ensure that our postmasters are also remunerated correctly for the service they provide to our constituents.
Kelly Tolhurst
Absolutely, but that has not been done prior to today. We will take those things forward. I have met other Members about other issues in their constituencies.
It is right that the Post Office is commercially independent, because that enables us, as the major shareholder, to hold it to account at a ministerial level, and I am always happy to do that. I assure the hon. Lady that the proposed changes would add six hours a week to the Wigan branch’s opening times. She is correct—this goes back to an earlier point—that the ATM will not transfer over to the new site, so I understand her concerns about her constituents relating to that service, which would change in that situation.
Jim McMahon
Post offices are not the same from one street to the next; branches provide very different services. If these are not closures but relocations, is the Minister saying that the services provided by the post offices today will be entirely transferred across to WHSmith, and that there will be no loss of service?
Kelly Tolhurst
The programme of franchising is moving Crown postal services. Our objective is to ensure that, when the post offices are moved, they deliver better services and that constituents have better access to them. Part of the franchising programme is about ensuring we have a post office network for today, which suits the modern retail environment and consumers’ changing habits.
Budget Resolutions
Jim McMahon Excerpts(6 years, 1 month ago)
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Jim McMahon (Oldham West and Royton) (Lab/Co-op)
I would say that it is a pleasure to speak in this debate, but it clearly is not. This is a horrendous time for many people in this country. They were told that the people with the broadest shoulders would bear the biggest burden of austerity, and that proved to be completely untrue. They were told that the situation would be temporary while the Tories rebuilt the economy and created the jobs of the future and that those jobs would be available to hard-working people. That turned out to be untrue, too. Then we were told that austerity was over. The Budget has shown in black and white that that is simply not true.
There is a human cost. It is natural in these situations to look at the facts, the figures and the data. But just think about the human, lived experience in every one of our communities—of people doing exactly what the Government have asked them to do. They are working hard, often in two or three jobs and often for more than 40 hours a week. They are struggling with childcare and to put food on the table. They do it because they have the pride of work.
We might say that, given the exploitation taking place in which people are not given full-time work, even though it is available from the employer, those people ought not have pride in their work—their terms and conditions have been eroded or they are being paid the minimum wage because employers know they will get away with it—but people do have pride. People in my town of Oldham came from all over the world to work hard and set up a new life for themselves and their families. They are industrious and take pride in their work and effort. But the promise of fair pay for a fair day’s work is just not true for too many people.
When the mills were thriving, we developed manufacturing and engineering. The jobs in aerospace, making high-end machinery that changed the face of the world, did not just provide quality goods that changed the world; they provided a sense of purpose. The things that people produced in towns such as Oldham helped set the industrial revolution off and set this country where it needed to be. But those very same communities have been left abandoned.
What has followed that industrialisation? The decent jobs have been replaced with warehousing and distribution jobs—the same jobs that Amazon and the like are replacing with automation. Take Shop Direct in my community: it employs 2,000 people in warehousing and distribution. Some of them have 40 years’ service; it used to be Littlewoods and Great Universal Stores. They had a long history in Greater Manchester: 40 years’ service—husbands and wives working together all their working lives. That operation is closing, to be relocated 80 miles away at an automated plant.
We know that progress is inevitable and that automation would make this country more productive, and the workforce know that, too. They do not have their heads in the sand—they work in the industry on a daily basis and know exactly what changes are taking place—but what they cannot understand is why their tax-haven owners are closing the local facility and not even giving the community the chance to put in an offer of a site in that community for a new facility. Where is the fairness in that?
We talk about fair taxation. This digital sales tax being proposed is an absolute con. For too long, the tech giants have got away with not paying their fair amount of tax, while our high streets, our city centres and our town centres have been left to go to their knees. In many regions, we have lost a quarter of our retail space. That has a real consequence for how people feel about their communities. When they look at their town, it is a test for what the future holds for their place and their community. When they see the shutters down and the boards on the windows, it says a lot about the faith the Government have in it. At the same time, where money is being generated in the economy, the Government are completely useless in capturing it to invest in decent public services.
The people in this country believe in fairness and fair play. They understand there are choices and they understand that sometimes they are difficult choices. What they will never understand is how they work hard, work long hours and work still with pride, yet the people taking money out of their community are not paying their fair share to pay for decent public services. That is not for themselves. People are not selfish. People look at their children and their grandchildren, and they look at the funding that has been taken away from our schools. That is when they question what the future is and whether it is all worth it. If the Government do not do something quick to give people back the hope they need, I really fear for the future of this country.
Oral Answers to Questions
Jim McMahon Excerpts(6 years, 2 months ago)
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Jim McMahon (Oldham West and Royton) (Lab/Co-op)
Thank you, Mr Speaker. I have been desperately trying to catch your eye. We have had a number of comments on post office relocations and closures. Will the Minister make it absolutely clear that relocating a post office to WHSmith does not save the services within it? Many have been massively downgraded at the point to which they have been relocated.
Kelly Tolhurst
As I have already outlined, we are committed to delivering a postal network that services the needs of our communities. If the hon. Gentleman has concerns relating to particular post offices, will he please contact me?
Shop Direct (Greater Manchester)
Jim McMahon Excerpts(6 years, 7 months ago)
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Debbie Abrahams
Absolutely; I could not agree more.
Shop Direct was created from the merger of the mail order and retail companies Littlewoods and Great Universal Stores, and the sites affected in Shaw, Little Hulton and Raven are the last remaining fulfilment sites in the north-west region. The company has been providing employment for families in Greater Manchester for many decades, and these sites have different generations of the same families working there. The impact of closures will be huge on hundreds of families, as well as local businesses and local communities.
This decision should in no way be seen as a reflection on the workforce’s capability or dedication. The professionalism and commitment of Shop Direct employees has been second to none. After years of dedication and commitment, many workers have been left reeling by this decision. I have received correspondence, including from one constituent who has worked for the company for more than 20 years, who said:
“I am aghast at how the workforce has been treated.”
I also understand that because of shift patterns, some staff received word of the closure by text message—just imagine how they felt.
Jim McMahon (Oldham West and Royton) (Lab/Co-op)
I congratulate my hon. Friend on securing this important debate and on the sterling work she has done to co-ordinate our collective response to this issue. Many people have worked for Shop Direct over many generations, right from the early days of Littlewoods, some with 30 or 40 years of service. What really hurts people and offends me is just how little consideration Shop Direct has given to that loyalty. When the decision was made to relocate to the east midlands, it did not care a jot about the people who had given their lives to build up that company and make it profitable. They were cast aside. Does she agree that that is not the face of good business practice?
Debbie Abrahams
Absolutely; my hon. Friend has hit the nail on the head. This is a thriving business, and the callous disregard with which the workers have been treated is absolutely shameful. My hon. Friend the Member for Heywood and Middleton pointed to the fact that this business was named employer of the year. How can it be?
The decision is especially worrying because Shop Direct is not in financial trouble. It reported an increase in underlying profits before tax of 10.2% to £160.4 million last year. It has seen sales growth increasing over five consecutive years. The decisions it has made are purely commercial. The proposed site in the east midlands will employ fewer staff as Shop Direct moves towards increased automation. Given that automation is likely to offer commercial opportunities but also huge challenges for the UK labour market as a whole, the experience of Shop Direct workers has a wider impact on the UK labour market as a whole.
I am grateful to the Business Secretary for meeting me earlier today, but I will be seeking urgent action from the Minister in recognition of the support needed by Shop Direct workers in Oldham and Little Hulton and by workers across the country whose jobs may also be under threat as a result of automation.
Since the announcement, I have met the leader of Oldham Council and the USDAW union representatives for Shop Direct, alongside my hon. Friend the Member for Oldham West and Royton. I have also spoken to and subsequently met Shop Direct directors at a meeting convened by Greater Manchester Mayor Andy Burnham, together with my hon. Friend the Member for Worsley and Eccles South, council leaders, the Salford Mayor, Department for Work and Pensions and Department for Business, Energy and Industrial Strategy representatives and USDAW representatives, where we tried to seek a way forward.
It was essential to bring together around the table all the parties affected by Shop Direct’s proposed relocation to the east midlands so that it could hear directly from us our huge concerns about the move. At the meeting, Oldham Council tabled alternative proposals for a site of a similar size, accompanied by a favourable business package, at Broadgreen Park, Chadderton. Very disappointingly, however, this was rejected, and there was no willingness from Shop Direct to engage on alternative proposals in Greater Manchester.
Given that the Shop Direct executives appeared to have made their decision, my colleagues and I then pushed them to describe what specific training and support they would provide for the workforce over the next two years—including their communications strategy, given the poor communication to date—while in particular looking at options for the Raven Mill site as a specialist returns centre.
The Mayor put forward a proposal at the meeting to establish a taskforce, led by Greater Manchester’s Growth Company, which was agreed by all parties, including both Shop Direct and the Department for Work and Pensions. I understand that the first officers meeting of the taskforce was held yesterday, and I am awaiting feedback from it.
Working closely with USDAW, we will be holding the company to their legal obligations to engage in a meaningful consultation. The consultation started formally today, and the union has clearly stated that its test of whether it is meaningful is that Shop Direct should fully explore any options for relocating to a nearby site, as staff, through their trade union, are entitled to a say in the future of the business. The company has said in a statement that it will
“be partnering with local and national organisations to provide our colleagues with tailored advice and training, including career skills, access to financial planning and vocational courses to support re-training. It’s also our plan to offer apprenticeships in in-demand skills across our existing operational sites.”
I am grateful for the response to my letter to the Prime Minister which I received last night not from this Business Minister but from another one—the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Watford (Richard Harrington)—but it only goes so far. What specific discussions has the Minister had with colleagues in the DWP and elsewhere on support, quality training and reskilling for the Shop Direct Greater Manchester workforce over the next two years?
The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
I congratulate the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) on securing this important debate, which follows the announcement on 11 April by Shop Direct Ltd that it would be closing three of its sites in the north-west of England, in Shaw, Little Hulton and Raven Mill, and consolidating its distribution operations in the east midlands gateway. I would also like to thank her for writing to the Prime Minister on this issue. My right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy has responded and met the hon. Lady earlier today to discuss this issue.
I appreciate that this is a worrying time for employees of Shop Direct Ltd and their families. I have listened to the contributions made here today and recognise that colleagues on both sides of the House are understandably concerned about the impact of the closures. Shop Direct Ltd is in formal consultation with the Union of Shop, Distributive and Allied Workers and, subject to this consultation, expects to offer an enhanced redundancy package, along with tailored support to all affected colleagues. As the exit process is not expected to start until mid-2020, there is an opportunity for Shop Direct Ltd to provide that individualised support. This will include training, career skills, access to financial planning and vocational courses to support retraining. I also understand that a local taskforce has been established, led by the Manchester Growth Company, and will include representatives of affected areas.
I am sure the hon. Lady can appreciate that I am unable to comment on commercial decisions made by the company and that it would not be appropriate for me to do so throughout the consultation period.
Jim McMahon
I accept that the Minister cannot comment on the commercial decisions taken by Shop Direct, but can he confirm whether it has been given any inducements to move to the east midlands, such as business rate benefits or relocation grants?
Mr Gyimah
That is a very important question. I am not aware of any inducements given to Shop Direct to move to the east midlands. I am sure the hon. Gentleman raised this issue in his discussions with the Secretary of State.
For companies to remain viable, and to keep in step with the modern competitive market, difficult decisions sometimes need to be taken. However, I recognise that this does not make the situation that some employees face any less troubling. I can reassure the House that the Government have measures in place for such situations. I will now turn to the protections in place for employees facing redundancy and the support available at such a difficult time.
The law is clear that organisations are required to consult with employee representatives about proposed collective redundancies where at least 20 employees are at risk at one establishment within the same 90-day period. Employers are required to provide specified information to representatives, or directly to affected employees if representatives have not been appointed. The consultation should include ways to avoid redundancy or dismissals, or to reduce the number of dismissals involved to mitigate the effects. Any employees who feel their rights have been denied may complain to an employment tribunal, which may make a protective award to the affected employees of up to 90 days’ pay.
Our priority is helping those who are affected to find new employment through the Jobcentre Plus rapid response service or to retrain if necessary. Rapid response service support is delivered in partnership with a range of national and local partners, including Her Majesty’s Revenue and Customs and local service providers. DWP and Jobcentre Plus will also work with the company to understand the level of employee support required. Just to reassure the House, typical support includes matching people to known local job vacancies, helping them to construct or improve their CVs and providing general information about benefits and how to make a claim.
Mr Gyimah
The hon. Lady makes a good point about having some flexibility on when people get their redundancy, especially if they find new opportunities. That has been noted and the relevant Minister will get back to her about how we can raise that with the company. It is a relevant point. The support that I mentioned is available to all those who are affected by potential job losses and goes beyond direct employees of the business to those such as self-employed subcontractors and individuals working for suppliers affected by the outcome of such structural changes.
The hon. Member for Oldham East and Saddleworth asked generally about what is happening in the retail sector. We can all agree that the retail sector has a vital role to play in the local community and the national economy. The Government work with retailers to understand their needs and we have acted to support the sector. In March, we announced the Retail Sector Council as part of our industrial strategy. Its first meeting has taken place and through the council, the Government and industry are working together to contribute to the sector’s future direction to boost productivity and economic health. Council members will review the best way that retailers can adapt to changing consumer behaviour and trends. They will also look at new technology opportunities such as those that will improve customer service and the chance to grow skills through a sector push on high-value training.
The Government recognise the importance of our high street, and since 2010, we have given over £18 million to towns, funding successful initiatives such as the Great British High Street. In the autumn Budget 2017, we announced measures worth more than £2.3 billion over five years to cut business rates. This includes bringing forward the planned switch in the indexation of business rates from the retail prices index to the consumer prices index by two years to 2018. That will benefit retailers, as well as other businesses.
Jim McMahon
While we are on the business rates point, is the Minister aware that the two sites in Oldham together have rateable values of £1.3 million? Of course, Oldham is one of the business rates pilot authorities. If we do not find an alternative employer to take those premises, that will have a direct impact on the council’s budget. In context, that would be the whole of the council’s youth service budget gone.
Mr Gyimah
These are all very important points, but as I said, businesses make commercial decisions driven by their own commercial interest. The Government’s responsibility is to support the employees, find new work and to support the local community as it transitions through this period.
Let me come to some of the other points made by the hon. Member for Oldham East and Saddleworth. The broader question of automation was raised. Of course, we recognise the workplace challenges as well as the potential opportunities. Matthew Taylor stated in his review of modern working practices that history has shown that technological advancements and the automation of individual tasks can lead to job creation. In our response to his review, we set out our Good Work plan to ensure that the labour market is resilient enough to respond to the changes that automation may bring.
Oral Answers to Questions
Jim McMahon Excerpts(7 years ago)
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Greg Clark
I do agree with my hon. Friend. I congratulate the London Taxi Company on having the first electric taxi, manufactured in the west midlands, on the streets of London this very week—again, a big vote of confidence in our world-beating motor industry.
Jim McMahon (Oldham West and Royton) (Lab/Co-op)
Access to finance is critical for small businesses, but the protection in place when things go wrong is non-existent. Do the Government agree, and will they look at extending the role and remit of the Financial Conduct Authority in that regard?
Margot James
I am meeting the chief executive of the FCA before Christmas, and I will be raising the issue of unregulated small business lending, which the hon. Gentleman mentions.
Taylor Review: Working Practices
Jim McMahon Excerpts(7 years, 5 months ago)
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Margot James
The hon. Gentleman makes good points about volunteering and the framework that governs it, and I hope that he will make them during our consultation.
Jim McMahon (Oldham West and Royton) (Lab/Co-op)
I want to ask the Minister two quick questions. First, on the extension of workforce protections, will that include secondary contractors? For instance, if one person in a team of three or four is the main contractor, will dependent contractor status be extended to other people in the team? Secondly, while being a dependent contractor might provide a minor uplift for people who are self-employed, does the Minister agree that some employers will see this as an opportunity to downgrade people with employment protection to the status of dependent contractor against their will?
Margot James
The hon. Gentleman raises a number of issues. There is no intention to downgrade anybody’s rights. We want to be in a position to safeguard people’s rights and, when possible, improve them—we certainly do not want to downgrade them. I am sure that he will put his detailed observations into our consultation.
Industrial Strategy Consultation
Jim McMahon Excerpts(7 years, 10 months ago)
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Jim McMahon (Oldham West and Royton) (Lab)
I absolutely support the need for an industrial strategy, so I welcome the Green Paper on that basis, but the proof of the pudding will be in investment and whether the money is there to support the proposals. May I invite the Secretary of State to Oldham College in my constituency so that he can hear from the principal and the governing body about how the lack of funding in schools is undermining the efforts that are pointed out in the industrial strategy?
Greg Clark
I hope that the hon. Gentleman will take the opportunity, through a consultation that seeks to establish as much common ground as possible on our priorities for the future, to work with colleges and employers to ensure that the reforms that are needed are put in place so that we can equip his and all our constituents with the skills that they will need to get good jobs in the future.
Living Wage
Jim McMahon Excerpts(8 years, 1 month ago)
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James Berry (Kingston and Surbiton) (Con)
I thank the hon. Member for Mitcham and Morden (Siobhain McDonagh) for bringing the debate to the House. I enjoy working with her on human rights in Sri Lanka, and I enjoyed hearing her comments in the debate. I welcome the speech of the hon. Member for Halifax (Holly Lynch), whom I am following for a second day running.
The national minimum wage was introduced by the Labour Government in 1999 at £3.60 an hour for those aged over 22. Successive increases based on recommendations from the independent Low Pay Commission meant that it reached £6.70 by last year. I commend the Labour Government for introducing the national minimum wage, but this progressive Conservative Government introduced the national living wage, increasing the lowest rate of pay for those aged 25 and over to £7.20 this April, and to £9.35 from April 2020.
That was significant for at least three reasons. First, some had often wrongly characterised the Conservative party as an opponent of statutory minimum wages, which was clearly not the case. Secondly, the 2016 rate represents a 7.5% increase, or a 10.8% year-on-year increase, which is the largest cash increase ever to a living wage. Thirdly, the independent Low Pay Commission concluded that the real value of the new national living wage would restore and surpass the value lost in the economic downturn. I was therefore delighted when the Government announced the national living wage, as were many of my constituents in Kingston and Surbiton who were among the 1.8 million workers in the UK benefiting from the introductory wage increase.
I was concerned about the effect of the national living wage, particularly in sectors such as nursing homes. Members on both sides of the House raise the issue of the high cost to councils of placements in nursing homes, and the high costs to private users of nursing homes, which I thought would only go up if the minimum wage was increased. I discussed that with a number of care home owners in my borough of Kingston, who pointed out that they were either already paying in excess of the then proposed national living wage or planning to do so—there was such a shortage of nurses and healthcare assistants willing to work in nursing homes that they had to pay the additional amount to get quality staff.
Jim McMahon (Oldham West and Royton) (Lab)
The hon. Gentleman has started a very curious train of thought. Let us say that the employers had said that the increase would have an impact. Would his view have been that the staff who look after some of the most vulnerable people in his community should not be allowed the increase?
James Berry
My concern was that the cost would be passed on to the customer, which would either be the council or private payers, who often have to shell out a huge amount to pay for the care of their parents or loved ones. As it happens, as far as I have seen, that has turned out not to be the case. In fact, I have seen no significant evidence of widespread transfers of the cost of the national living wage to customers.
How have the costs been absorbed? Some companies have absorbed them by taking a hit to their profits. Others are doing the very things that the hon. Member for Mitcham and Morden listed, many of which are absolutely disgraceful—I have no quarrel with her about that. There are other examples of companies forcing staff to buy their own uniforms or pay for their training, which I similarly condemn, as I am sure she would.
What action are the Government taking? First, with minimum wage enforcement, an employee can take their employer to an employment tribunal for breach of contract. Secondly, when there is non-payment of a minimum wage, including the national living wage, the employee can complain to Her Majesty’s Revenue and Customs, which investigates every single case and can require repayment of the underpayment. Following changes made by the Government in April, a fine amounting to 200% of arrears can be levied. There is also provision for naming and shaming, which is popular in this context at least, as 687 companies have been named and shamed so far. As far as I am aware, there have been no complaints of this action not being taken when it has been demanded of HMRC.
What happens when the rule is not breached, but the spirit of it is? I hope that the Government will continue to criticise employers that do not follow the spirit of the rules in exactly the way the hon. Members for Mitcham and Morden and for Halifax and my hon. Friend the Member for Sutton and Cheam (Paul Scully) have taken the opportunity to do today so that we, as customers, can also take direct action by not shopping at Marks & Spencer this Christmas if we are not happy about how it treats its staff.
What we did not hear from the hon. Member for Mitcham and Morden was any suggestion of how the Government could do more to deal with employers who do not behave according to the spirit of the rules without wrapping them up in regulation after regulation. If I had an answer to that, I would certainly give it to the House, but I have not heard of one yet. I am pleased there are regulations in place to tackle those who breach the letter of the rules. I hope that hon. Members and the Government will continue to call out those who breach the spirit of the rules; I will continue to do that, too.
Jim McMahon (Oldham West and Royton) (Lab)
I thank my hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh) for securing this important debate. The fact that the time limit that has now been applied is testament to how many Members wanted to speak.
I will talk about the national minimum wage, in particular its impact on young workers over 18-years-old. A fair society should recognise hard work and contribution. In doing so, it should ensure that work pays a decent wage in return. In this country, it should be about more than just getting by; people should be paid enough to get on and do well.
I took exception to the living wage brand being hijacked by the Government, who tried to claim it for what is basically a discounted living wage that is not enough for people to live on. Putting that cynical, cheap ploy to one side, now that the brand has been adopted—some commentators say “stolen”—by the Government, it is important that a genuine fist is made of trying to ensure that it is enough for people to earn a decent living. That will be good not only for workers and their employers, but for society and the Government, too.
To realise that ambition, we must move to a real living wage. Much has been said about the Government needing to honour their existing commitment, but even that does not go far enough. A real living wage by today’s standards is about £10 an hour. I commend the work of the Living Wage Foundation and our trade unions, and I am proud to be a member of the GMB, particularly at this moment in time, when it is leading the “£10 Now” campaign. That is about recognising the real cost of living and the real cost involved in people having a decent lifestyle as a result of their hard work and toil.
The situation is even more unfair for the under-25s. Younger workers can be working alongside someone slightly older who is doing the same job in the same location, for the same employer and with the same commitment, yet they can be paid between 3% and 23% less. That cannot be fair or just in a decent world. The current estimate is that 3.4 million people are in exactly that circumstance, where they are working for less than the national living wage.
I want to bring to the Chamber my own experience. I have always been a hard worker, and when I left school I worked as an apprentice during the daytime and as a delivery driver in the evening. On Saturdays, I worked in a newsagent’s, which I did just so that I could run a car. My shock came when we discovered that our first son was on his way. I was earning very little at the time, but it was enough to get a mortgage, which we did. I was 21 when Jack came along. I was 21 and paying a mortgage and council tax; paying for utilities; and trying to keep the food stocked up in the fridge and the cupboards. Under the current proposals, in today’s world, I would be earning far less than somebody doing the same job with the same expenditure, and I cannot see how that can be right or fair. If it was not for the University of Manchester taking me on as an apprentice technician, I would be in that same circumstance today, as many of my friends and family have found themselves. I would like to believe that in a just society and a fair society today they can achieve far more than just getting by.
I wish to read out an important quote, which comes from Rebecca Pitchford, a young 20-year-old retail worker. She says:
“Because of my age the Government says I can live on £5.55 an hour whilst my colleague earns £7.20 an hour for doing exactly the same job. Rent and living expenses are exactly the same, so why aren’t the wages?”
Let us give Rebecca the answer. More importantly, let us give Rebecca and the 3 million people like her a solution and pay them a decent wage.