Rolls-Royce (Redundancies)

Jim Shannon Excerpts

Wednesday 10th June 2020 Commons Chamber

[Gavin Newlands]

The short answer is absolutely. I completely agree with the proposal that the hon. Lady outlines; in fact, it is a proposal that we have been making to the UK Government for months now. There are many estimates as to how long the industry will take to recover but, as I shall come on to say, there is no denying that the industry will face a long and slow recovery. The industry will face redundancies, but the issue is the nature of some of those redundancies. I shall certainly touch on British Airways a little later, although Rolls-Royce is the focus of my speech.

[Jim Shannon (Strangford) (DUP)]

Will the hon. Gentleman give way?

[Gavin Newlands]

Before I kick on, it would not be an Adjournment debate without hearing from hon. Gentleman.

[Jim Shannon]

First, I congratulate the hon. Gentleman on securing this debate. He brings forward excellent Adjournment debates and makes other excellent contributions in the House, which we all appreciate, and we are pleased to be able to participate.

I absolutely understand where the hon. Gentleman is coming from: just in the past few weeks a major employer in my constituency has outlined how redundancies will be on their way soon. Does he agree that Government support for local industries is essential, as we all know that once a company shuts an operation it never, or rarely, reopens? If we do not hold on to these industries, we will face mass unemployment, alongside the fact that we will be perceived to be a nation that no longer manufacturers or creates, leaving us absolutely at the mercy of imports, which should never be allowed to happen.

[Gavin Newlands]

As usual in these debates, the hon. Gentleman makes a good point. I will outline how Scotland has a very forward-looking approach to manufacturing, particularly in the area in which Rolls-Royce operates, but he is right that when these types of jobs go, they rarely return. I shall elaborate on that later.

When the Minister responds, I hope he will give us a full update on the work that he and his colleagues have undertaken to save the jobs of not only my constituents but those at Rolls-Royce sites right throughout the country. There is no doubt that in the short term there is a period of great challenge—perhaps the greatest ever challenge—for Rolls-Royce and the entire aviation and aerospace sector, but given the history of excellence at Inchinnan, there is also no doubt that as the sector recovers over the coming months and years, there will be a customer base for its output, and Rolls-Royce will benefit from that.

The unions recognise that and want to help. From the start they have set things out clearly to their members and to management and asked how they think the short-term operation of the site can work so that it has a long-term future. Throughout the process, the unions have been pragmatic, serious and forward-thinking, looking for a way forward that supports their members and the company’s operations. Anyone who thinks that the unions at Inchinnan or anywhere else in the Rolls-Royce business are interested in anything other than the long-term future of production at the sites is living in a parallel universe.

--- Later in debate ---

[Gavin Newlands]

I totally agree that it is not for the Government to sit on the sidelines here. We often hear Governments of all persuasions saying that these things are a matter for private business, but this is a strategic sector of extreme importance to the country. Again, once the jobs go, they will be gone, so the Government have to step in and do something.

We need to be clear that the sacrifices proposed by the workforce and the trade unions go beyond minor flexibilities. They involve real-terms hardship for workers and their families, working for less pay, mothballing sites for months and increasing working hours. These have all been proposed by the union reps at Inchinnan as practical and achievable solutions to the current temporary difficulties. They tell me, however, that these comprehensive offers have been met with complete silence from Rolls-Royce. That is simply unacceptable. Industrial relations should not be conducted as though we were living in the 19th century. The hard-working and loyal workforce must be fully involved in decisions that will change their future and those of their families. My constituents, and those of other Members, who work at Inchinnan should not be treated like chattels or given their jotters whenever the management decides that savings are to be made. As I have said, everyone accepts that there will be change—the unions, the workforce, elected members and management—but it is only the management that appear to have locked themselves in a bunker, appearing only to issue their edicts and give frankly ludicrous interviews to the media.

That brings me to the chief exec, Warren East. I watched Mr East’s interview with the BBC, in which he was giggling away as he was quizzed about the loss of thousands of UK jobs. I am sure he regrets that that happened, but it was grossly insensitive to the thousands of workers whose livelihoods would be lost as a result of that decision, and they are asking for an apology. I do not want to get personal with regard to Mr East, not least because he took a meeting with me on Friday to discuss the situation, for which I am grateful, and during which, incidentally, he said that the Inchinnan workforce were second to none in the business. But I am told that Mr East and his higher management have shown no interest in dialogue with the workforce. There has now been engagement with the Scottish Government, but that took some time and many requests. I should say that the Scottish Government are absolutely committed to supporting and working with Rolls-Royce to ensure that they do all they can to secure a strong future for Rolls-Royce and its workforce in Scotland.

Rolls-Royce has had a strong relationship with Scotland since 1939, when it built its facility at Hillington. It was built to produce Merlin engines for the RAF’s Hurricanes and Spitfires during world war two, and it produced nearly 24,000 Merlins by the end of the war. I grew up not far from the Hillington site, and I had a good view of the factory’s tall chimney from the family flat close to the site of the old Renfrew airport. It was a bittersweet moment when the factory closed in 2005, when the work moved to a purpose-built facility at Inchinnan and a redeveloped site at East Kilbride. The factory was part of the local landscape, and the investment would surely safeguard jobs for years, perhaps decades, to come, but just seven years later it was announced that the East Kilbride site was to close and that its production was also to move to Inchinnan. Now, just 15 years later, that purpose-built site is itself in grave danger.

It does not have to be this way, not least because of the relationship that Rolls-Royce already has as a tier 1 partner with the Advanced Forming Research Centre—the AFRC—which sits alongside the Rolls-Royce plant. The AFRC is a globally recognised centre of excellence in innovative manufacturing technologies, R&D and metal forming and forging research, which I have visited a number of times. There has also been a huge level of manufacturing-oriented investment in the Inchinnan area, including £39 million of city deal funding to create the Advanced Manufacturing Innovation District Scotland—AMIDS—next to Glasgow airport. Again, this affects the whole site. There has also been £75 million of Scottish Government investment in building and establishing the National Manufacturing Institute Scotland —NMIS—with a further announcement of an additional £20 million on 28 May. Including other partners, this investment is now close to £100 million, so there can be no doubt of the Scottish Government’s commitment to high-value, highly skilled jobs being developed, retained and attracted to Scotland. The question for Rolls-Royce is whether it can match that commitment. There has been no discussion of the long term with the workforce and their representatives. The loyalty shown by the staff at Inchinnan, some of whom have been forced to transfer sites twice during their employment, first from Hillington and then to East Kilbride, has not been repaid and has not been respected.

This highlights a wider problem across the industry. The behaviour of IAG British Airways and its chief executive, Willie Walsh, has been widely reported and condemned in this Chamber and by the Transport Committee. It must be said that the behaviour of IAG British Airways is more reprehensible than that of Rolls-Royce, which still has some sort of relationship with its unions, albeit a little fractious of late. It is simply unacceptable for the loyalty shown by any workers, whether they work for Rolls-Royce, British Airways or anyone else, to be rewarded with the exit door the minute a challenge arises that management think can be met through cost-cutting alone. We cannot have industrial policy run as a race to the bottom with no regard to the longer term or to the communities and families who rely on these jobs.

Yesterday I presented my Employment (Dismissal and Re-employment) Bill to prohibit employers from dismissing employees and subsequently re-employing them for the purposes of diminishing their terms and conditions of employment. I cannot believe that I had to present a Bill to try to make this illegal, but apparently that is the case. Does the Minister think that it is fair for a workforce to be told that they would be made redundant and a proportion rehired on vastly reduced terms and conditions—up to 70%, in some cases? If not, will he back my Bill, or the aim of it, at least, to protect the workers of this country from unscrupulous management?

[Jim Shannon]

Does the hon. Member agree that it is obscene for British Airways or for any other company to take advantage of the Government’s furlough scheme to then change the contracts of their workers? Some of them are my constituents, and they have expressed great concern, anger and dismay that after 30 years of loyal employment with British Airways, they have been discarded. At a time when British Airways has plenty of money in reserves, as well, it seems that its policy may be to give Virgin a run for its money. Does he think that it is now perhaps time for Government to say to British Airways, “It’s time for your slots at Heathrow and elsewhere to be looked at and not given the special treatment that they presently have”?

[Gavin Newlands]

rose—

Corporate Insolvency and Governance Bill

Jim Shannon Excerpts

2nd reading & 2nd reading: House of Commons
Wednesday 3rd June 2020 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I welcome the right hon. Gentleman to his position and wish him well. I have a bit of concern about what I refer to as predatory companies, which look for companies that are probably heading towards insolvency and see them as an opportunity to gain something. I wonder whether it is possible to ensure in the Bill that such predatory companies that would prey on those in trouble, of which there are many, are prevented from taking over an asset that is probably solvent in the long term but is not in the short term.

[Edward Miliband]

I agree with the hon. Gentleman’s intervention. I once used the word predatory in relation to companies and it was rather controversial, but I think the consensus may have changed. [Interruption.] Government Members are saying it has not; it was worth a try. The hon. Gentleman makes a really important substantive point on which I think Members from all parties can agree, and it goes to the width and breadth of this provision: we have to make sure that companies cannot use it as a way to take their employees for a ride. I know from my conversations with the Secretary of State and the Minister that the intention to make sure that that does not happen is shared throughout the House, but we have to give expression to it in the Bill, and I hope the Government will indeed do so.

Let me turn to some things that are not in the Bill—

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[Jim Shannon (Strangford) (DUP)]

I thank right hon. and hon. Members for their speeches and contributions. I particularly thank the hon. Member for Heywood and Middleton (Chris Clarkson) for his maiden speech, which we all thoroughly enjoyed. We were unable to provide him with what people refer to as a doughnut, but we were here to support him. I wish him well and look forward to his future contributions.

I was pleased to hear the comments of the hon. Member for Folkestone and Hythe (Damian Collins) about where football teams will be in future, and I thank him for his knowledge of football and sport. It is critical for football teams to have the revenue that comes from crowds attending matches. I am a Leicester City supporter and have been for almost 50 years—nearly all my life, or the best part of it. A number of MPs in the last Parliament were Leicester City supporters. Some of them are no longer here, but others have taken their place, and we hope that the Leicester City supporters club in this House might grow again—it was six before—to perhaps four or thereabouts. I was pleased to hear the hon. Gentleman’s contribution and his thoughts are helpful, because the smaller clubs probably depend entirely on the revenue generated by the supporters on a Saturday afternoon or Friday night, or whenever it may be, so this is very important.

At this time of economic crisis, it is essential that we get the Bill right. I put on record my thanks to the Government for all they have done in their response. It is all very well to criticise, and easy to do so, but we should give accolades whenever they are due. It is the right to thank Government for their response and particularly the Chancellor for what he has done, because he has been excellent and has tried hard at a very difficult time.

I represent many little towns with high street shops, as well as my main town of Newtownards, which recently won the champion high street award for Northern Ireland. I am well aware that, despite the grant funding that has been allocated, alongside the tax deferral option, many of those businesses will be unable to continue trading. I want to give a clear picture of the covid 19 position for those high streets and businesses—without mentioning any names, by the way—some of which have literally hundreds of thousands of pounds of stock in their shops, yet with no outlet at all and their summer stock ready to go. They have been unable to do anything with it and their shops have been closed. It is a difficult pill to swallow. Six months ago they were running successful businesses, employing between five and 20 staff in their shops, so this has been calamitous.

My hon. Friend the Member for North Antrim (Ian Paisley) will know that I put forward a suggestion to our parliamentary group meeting that we could introduce some sort of revenue that could help those businesses. Lots of businesses are going online, and I can give the House an example of something that is happening in the Republic of Ireland. The Government there are giving up to €40,000 for each business to increase its online business or to start a new online business, and I am just wondering whether that is something we in this House should be doing as well. I know that we are talking about insolvency, and I understand that, but this is also about how we can help businesses to grow and ensuring that they can do that. The shops that I referred to are small and medium-sized businesses. There are successful family businesses but they are facing great uncertainty, so I again make the plea to be cautious, compassionate and understanding with them as they try to get through this difficult situation.

It was no surprise to read in the Library briefing that the coronavirus outbreak has led to a decline in business activity and revenue across many sectors, causing a large negative shock to the economy. The average forecast for quarterly GDP growth in the second quarter, April to June, was 16% based on Her Majesty’s Treasury’s survey of investment banks, economic research organisations and other institutions in May 2020. However, the estimates are highly uncertain, including on the extent to which the economy will bounce back. Companies and shopkeepers, and other Members, have referred to the rental issue, and I want to make the important point that every landlord needs to review their rental charges. Is it not better to have a small rent coming in than to have no rent at all, given the rateable obligations on the businesses? Is it not better to come to some sort of an agreement, rather than holding fast to what the rental figures would normally be?

The Office for National Statistics’ survey on the business impact of coronavirus reported that, between 20 April and 3 May 2020, 78% of businesses that responded were continuing to trade and 20% had temporarily closed or paused trading. I have had something come up in my constituency—I am sure that others have as well—relating to businesses that have been able to trade without having to borrow from the banks, be they in construction or in fishing and fishing vessels, or other businesses on the high street. They have conducted their business over periods of six, eight and 10 years—to give three examples without naming who they are—and they have never had to borrow until now, when hard times have hit them. It was difficult for them to go to the bank and borrow money because they did not have a credit status that the bank could look at and say, “You have always made your payments on time.” They had never had to make any payments. One of the predicaments that I have contacted the banks about is that they need to understand that those who have been able to conduct their businesses over periods of six, eight and 10 years have shown that they can well manage money without having to borrow it. I would have thought that those businesses’ credit status was therefore suitable and that there should be no difficulty whatsoever. Again, I just make the point.

I reiterate the point made by the shadow Minister in relation to the pension scheme deficits. I support his concerns about where that will end up, and I hope that the Minister will give us some clarity on that matter and maybe some reassurance. I have no doubt that he will do that. Northern Ireland has the highest rate of temporarily paused business trading, at 25%. That is the highest in all of the United Kingdom of Great Britain and Northern Ireland. I know this to be true from personal experience in my constituency, and I am sure that my hon. Friend the Member for North Antrim will have seen that among the businesses in his constituency as well. We must get the help and support needed to enable those businesses to reopen. London and the south-east have the lowest level, with some 16%.

The industries with the largest proportion of businesses that have temporarily paused trading are the accommodation and food services, at 78%, and the arts, entertainment and recreation sectors at 80%. A small number, just less than 1%, responded to say that they had permanently ceased trading in that period. Of the businesses that continue to trade, 61% reported that their turnover had decreased and 25% reported that turnover had fallen by more than 50%, although I am aware of some whose turnover has fallen by as much as 80% to 90%. Almost all businesses—99%—reported coronavirus as being the reason for the turnover reduction outside of the normal range, so it is very clear what the issue is.

The Government responded to the circumstances they were presented with and did their best, given the fear we all had of coronavirus and all the uncertainty. They were trying to get us to a position where we were able to lessen the number of deaths. What would have happened if we had not done anything? What would have happened if the Government had just said, “Plough on ahead”? We would be in the most calamitous, destructive time ever, and I think we have to thank and congratulate the Government for what they have done.

The largest fall in turnover was in accommodation and food services. The pharmaceutical and agrifood sectors are incredibly important for me in my constituency. Tourism and hospitality rank up there at the highest because the economic focus of the local council, Ards and North Down Borough Council, is tourism and hospitality. That is where the growth is. That has been the growth for the past three to four years and it will be the growth for the next three or four years as well, but we need to ensure that help is there for tourism and hospitality to get out the other side. Some of the hotels need that. We have some clarification on hotels in Northern Ireland, and that is good news. It gives the hotels a chance to try to book for the end of July onwards. We have to try to ensure that things are going in the right direction.

The Government have helped those who are self-employed and those who have furloughed staff. Under no estimation can we doubt that that has helped greatly to ensure that things go forward. These are unprecedented times, and while I must thank the Government again for all the steps they have taken and for going the extra mile, I have real concern about many businesses that need more. I am referencing not failing businesses, but businesses that were thriving, doing well, creating employment, creating opportunity and boosting the economy, and they can thrive again.

I was pleased on 20 March 2020 when the Business Secretary announced that the Government would introduce measures at the earliest opportunity, together with temporary covid-19-related measures intended to help companies avoid insolvency. Following that, I welcomed the Government’s announcement on 23 April 2020 of other measures to protect companies from the aggressive use of statutory demands and winding petitions, particularly by commercial landlords. I welcome those measures to help business and to step in where possible. I further welcome the mixture of permanent changes to insolvency law and temporary changes to insolvency law and corporate governance to ensure that we help at this time but do not tie our hands for the future.

The proposal in the helpful document is that the help for businesses would be from 1 March 2020 to 30 June 2020 and one month after the provision comes into force. Will the Minister confirm that, in the event of the pandemic’s impact on businesses continuing beyond the end of that period, the provision may be extended for up to six months using secondary legislation, and that the process may be repeated? It is important that we know that, because it is not just about the short-term measures; it is about the longer term to encourage businesses to be able to do more.

To conclude, on behalf of the people and businesses of Strangford, whom I am very privileged to represent, I thank the Government for their financial intervention, but I ask for more short-term support, more help with tax deferrals and greater help with staffing problems. We will get through this, but I believe that the business sector is the only way we can. We will reap the benefits from anything that we pour in at this time. Those entrepreneurs will end up repaying more than the help they receive with the income that will be allowed to be generated.

I support the Bill. I understand the reasoning behind it, and I support it fully. As my hon. Friend the Member for North Antrim said, we understand that the implications will be for Northern Ireland as well. It is good to have that in place, but I ask for further grants to be allocated for special circumstances. That, however, is a debate for another day. As others have said, tomorrow will be a better day, but we have to work towards that day.

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[Lucy Powell (Manchester Central) (Lab/Co-op)]

It is a pleasure to be on the Front Bench and at the Dispatch Box again as the shadow Business Minister, although I would have much preferred to make this speech safely and socially distanced in sunny Manchester—no offence.

I reiterate the thanks of my colleague, my right hon. Friend the Member for Doncaster North (Edward Miliband), to the Minister, the Secretary of State and their teams for all the engagement we have had on the Bill. Our objective, as the Opposition, is to be constructive, and to ensure that businesses get the support they need now and in the long term, to keep the number of insolvencies in the coming weeks and months as low as possible. As my right hon. Friend said, we support the overarching objectives of the Bill. However, we hope the Government can give us some reassurances in Committee. Many others today have voiced similar concerns.

I thank many colleagues from across the House for their speeches in this interesting debate. Obviously, the highlight was the maiden speech of the hon. Member for Heywood and Middleton (Chris Clarkson), who was a bit nervous about coming last out of his intake; but as a fellow Mancunian, I reiterate that the best was definitely saved till last.

Although we back the Bill today, we are clear that it should be the last resort for many businesses. There is much more for the Government to do now to support businesses so that, as my hon. Friend the Member for Bristol North West (Darren Jones) eloquently put it, the measures debated today are not necessary. Every previously viable business that needs to call on these insolvency changes because of our decision to shut down the economy for public health measures, is a business that has been failed. Ministers have recognised the huge scale of the situation, with the unprecedented support they have established to retain jobs and support businesses. That has been the right thing to do and we have supported it. However, as we enter the end of the lockdown phase, the challenges ahead are becoming clearer. More must now be done to rescue more businesses, and ensure that the recovery is as short and strong as possible. We must stop a second, and possibly a third or fourth wave of insolvencies arising from unmanageable debts and creditors. Any business that goes bust as a result of public health measures will lengthen and deepen the recession and leave long-lasting scars on unemployment levels and the wider economy.

Labour Members firmly believe that the cost of not doing all we can now to save businesses will be far higher than the cost of action today. Ultimately, the taxpayer will pay for the cost of failure, through lost tax revenues and higher unemployment over many years, not months. The Government need to renew their support package over the coming period, as it is now clear that the easing of lockdown will be longer and more complicated than was predicted at the start of this crisis. That is why we suggest that the temporary measures in the Bill should be extended today, rather than waiting until later.

Preventing insolvencies today, in and of itself, will not stave off insolvencies tomorrow, if the Government do not take a long view and ensure that businesses do not face a cliff edge. A second wave of support and sector-specific action is also required. Critically, if the recovery is based on unmanageable debt, it will be no recovery at all. In the immediate rescue phase, businesses and business organisations are asking for more discretionary grant funding to support the hardest hit businesses that have so far missed out, more flexibility with the furlough scheme, simplification of the CBIL scheme, and many other measures that have been mentioned today. Those include more clarity and joined up working on business critical issues such as quarantine measures, safety in the workplace, childcare, and shielded employees. The Government must not fall into complacency and think that their actions so far have been sufficient, because a second wave of support is urgently needed.

We have heard from a number of colleagues, notably my hon. Friends the Members for Aberavon (Stephen Kinnock) and for Cardiff South and Penarth (Stephen Doughty), and the hon. Members for Folkestone and Hythe (Damian Collins), and for Strangeford (Jim Shannon)—

[Jim Shannon]

It’s not Strangeford!

[Lucy Powell]

Sorry. Strangford. It’s just that the Member of Parliament reminds me of that—no, I’m only joking.

The economic emergency we are in is affecting different sectors of the economy in different ways, some particularly and devastatingly harshly. This will be a sectoral recession, and the Government response must reflect that. We have raised with Ministers the serious issues facing our manufacturers, car manufacturing, steel makers, the aerospace and defence industry, aviation and tourism, the hospitality industry, and other areas such as football. The crisis is also affecting supply chains in those sectors, and we have already seen job losses at premier British companies such as Rolls-Royce and McLaren. There have been layoffs in the airline industry, despite the furlough scheme, and despite warnings from many industry bodies about the failure to provide adequate support and liquidity to business now. Will the Government step up with the more urgent response that is needed for those sectors, which so many Members have asked for today?

Project Birch has potential, but talking must quickly be followed by action. The promise of jam tomorrow will not pay the bills today. The feedback I get from businesses, especially some of our most important and largest employers, is about how slow the discussions with Government are, compared with the urgency of the cashflow problems. For example, our world-leading aerospace, aviation, tourism and travel sectors now face what could be a final blow from the confusion and mixed messaging about quarantine measures.

As the former Prime Minister Gordon Brown said, and as the hon. Member for Hitchin and Harpenden (Bim Afolami) has warned, the scale of the debt that companies are taking on to survive this crisis is huge. We will see a debt-laden recovery, with demand unlikely to return to normal quickly for many. Coupled with that debt, the recovery is likely to be weak, deepening its economic impact, and with insolvency spread over the months ahead.

Once companies have to start paying back loans, further insolvencies are likely to follow, with recovery choked by high levels of unemployment, and low levels of confidence. Are the Government exploring with business organisations and the finance sector ways to mitigate the month-13 problem of Government backed loans with a more long-term solution, as was suggested earlier?

Finally, we need to do more to increase and generate demand through a green recovery plan, as the hon. Member for North Antrim (Ian Paisley) described, and to address the youth unemployment crisis. The Government must seize the opportunity to bring forward pipeline projects to put British businesses at the forefront of the green and digital revolution.

Turning to some of the specific measures in the Bill, we support both the permanent changes to insolvency law and the temporary changes to insolvency law and corporate governance, but with some caveats. A balance must be struck between allowing businesses to survive through the crisis and not removing essential protections for creditors, pension funds and employees. The trade unions and others here today have raised some serious concerns about this, with good reason, and I will say more on that in Committee.

We believe that there must be no revision of the directors’ duty of care to their employees and suppliers. The Bill must ensure that SMEs and smaller suppliers are protected when larger companies go into administration. As the hon. Member for Dudley South (Mike Wood) and others have said, the temporary measures need to be extended today.

The Bill is a big missed opportunity to address corporate governance accountability, as the hon. Member for Huntingdon (Mr Djanogly) outlined. The collapse of Carillion was a national scandal. Yet again, corporate greed and very shaky indebted finances led to the taxpayer paying the price of directors’ failures. While those directors and shareholders reaped all the gains during the good times, the collapse of Thomas Cook more recently exposed these failings further, with the taxpayer once again footing the bill for failure. We had a conversation earlier about equity stakes, but the taxpayer in effect does have an equity stake in many businesses—but only in paying for the costs of failure, not in reaping any of the rewards of success. Ministers consulted on changes to insolvency law after these collapses, and some of these changes are in the Bill, but, inexplicably, other important ones are missing.

Over the coming months, as the recession takes hold and complex financial arrangements are pushed further towards breaking point by the new loans that these companies have, we are no doubt going to see the collapse of more household names and large corporates. Why have the Government not taken this opportunity, which we stand ready to support, to bring forward the long-awaited reforms on tackling bad corporate governance and protecting creditors, employees and, ultimately, the taxpayer? We also think it is a missed opportunity to have given the small business commissioner more powers and teeth, as the hon. Member for North East Bedfordshire (Richard Fuller) seemed to agree.

This is a speedy process for this Bill. It is a very large Bill, and we are expediting its passage through both Houses very speedily, so we are relying on Ministers to take on board some of the concerns raised today in the spirit of us working together. We will come back to some of these missed opportunities in Committee, but, to close, I urge the Minister to press his colleagues, including the Chancellor, to do more now to protect companies from insolvency. This Bill provides a small and important safety net and breathing space, but much more needs to be done and more quickly to prevent businesses from needing that breathing space in the first place. I hope that the Government will heed the warnings of business and provide further support so that the recession to come does not leave deep and lasting damage to our economy and employment.

Covid-19: Business

Jim Shannon Excerpts

Tuesday 12th May 2020 Commons Chamber

[Alok Sharma]

My right hon. Friend is a champion for the rights of women—indeed, of all individuals—and she raises an important point about pregnant women. The Government guidance is clear that pregnant women can be furloughed, provided that they meet normal eligibility requirements. I would go further and say, as it does in the guidance, that expectant mothers are, as always, entitled to suspension on full pay if a suitable rule cannot be found within the workplace.

[Jim Shannon (Strangford) (DUP) [V]]

The 14-day quarantine will have a real impact on aviation and tourism. It seems that it will be possible for people to fly into the Republic of Ireland, then cross into Northern Ireland and then to the UK mainland. Indeed, they will also be able to fly into France and take the ferry across to the mainland. This underlines the problems that we have. What impact assessment has been carried out in reference to the connectivity between Northern Ireland and the UK mainland in terms of business and tourism and the impact on airports and airlines? Will the 14-day quarantine be temporary?

[Alok Sharma]

The hon. Gentleman, who speaks with huge passion for his community and his area, raises an important issue about quarantine. He will understand the reason that we are looking to do this, and more details will be set out in due course, but I would say to him that businesses that previously felt that people had to be physically in the same place for meetings are now finding new ways of conducting business. Indeed, there are millions of people who are continuing to work from home, even during the pandemic.

Cavity Wall Insulation: Complaints

Jim Shannon Excerpts

Monday 16th March 2020 Commons Chamber

[Chris Elmore (Ogmore) (Lab)]

Thank you, Mr Speaker, for allowing this debate to be held today. I thank the Members from across the House who have stayed to take part. I shall speak about a problem that affects thousands of people across the UK—some estimates suggest that the number could be up to 3 million. It is a problem that Members, including me, have raised with the Government, but as yet, the people affected have been given nothing by way of resolution.

Inappropriately fitted cavity wall insulation might, on the face of it, sound like an issue that could be down to just a few rogue traders, but given what we now know, it is time for the UK Government to come forward with a sensible package of support for people who have felt the blunt end of Government interventions gone wrong. The scale of the problem could not be more stark. In 2018, the BBC reported that industry insiders estimated that at least 800,000 properties have defective cavity wall insulation. I want to explain why the injustice that many people in my Ogmore constituency and across the UK face is another symptom of the gross inequality across our country. I also want to tell the House why I believe that we need a new, independent body to oversee cavity wall insulation claims if the current body, the Cavity Insulation Guarantee Agency, is not able to do so.

From the outset, I want to make it clear that I am not against cavity wall insulation. If done properly, it is an efficient means of making our homes and other buildings more energy efficient, saving us power and helping to make the way we all live more sustainable. It can also help to reduce people’s energy bills—something that we all welcome, of course. In the light of the climate and environment emergency that we must address, only a fool would suggest we should not use all the tools at our disposal to make the way that we live less environmentally damaging. Cavity wall insulation can and should form part of this; that much is clear. What is less clear is what happens when our interventions bring about unforeseen consequences—unforeseen consequences that cause damage to people’s homes and leave them with a hefty repair bill.

As Members will know, most homes built before the 1970s had no form of insulation, and many were instead built with vast cavities within the external walls. Throughout the 1990s, as our awareness of energy efficiency and environmental issues expanded, the practice of retrofitting insulation in those wall cavities began to expand. Various Government schemes have followed, encouraging people living in energy-inefficient properties to have that work undertaken at a reduced or no cost to the homeowner.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for giving way; I did speak to him beforehand. He has raised this issue on behalf of his constituents, and I now want, through him, to raise it on behalf of mine. Does he agree that, yet again, something that the Government intended to be of great use to our most vulnerable and to the environment has been abused, and that the case of his constituents—and a number of my constituents—has been replicated throughout the United Kingdom? Is it not therefore right and proper for an investigation to follow the trail of businesses that are no longer in operation to secure justice for those who have been taken advantage of, and who are worse off as a result?

[Chris Elmore]

I am grateful to the hon. Gentleman for his intervention. Indeed, it would have been wrong for him not to intervene. I do agree with him: this is an appalling failure on the part of businesses.

I commend the basis of the Government schemes to which I referred. They were admirable in their intent—and, indeed, they still exist today—but it has now become clear that many properties that have been retrofitted with cavity wall insulation should never have been retrofitted in the first place, and that in many cases the works have been so shoddy that people have been left with significant damage to their homes.

Post Office Network

Jim Shannon Excerpts

Tuesday 10th March 2020 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to serve under your chairmanship, Mr Gray. I thank the hon. Member for Motherwell and Wishaw (Marion Fellows) for setting the scene so well. She is absolutely right; we have been here so many times on this issue. I hope that we do not have to return to it, but we all know we probably will. We hope that the Minister will give us the reassurance that we so desperately desire—I am glad to see her back in the House and congratulate her on her new ministerial role.

I am always concerned when I see a debate on post offices surfacing, as it gives me concern that there has been another round of culls as we are seeing with the banks, but I am thankful that that is not what I am facing in Strangford today. I have had a very good working relationship with the Post Office. On almost every occasion we have been able to find a solution, and I will refer to some of them later.

At the end of March yet another bank will close in Newtownards—this time it is the Barclays bank. Barclays has agreed to meet me about that. I am concerned about bank closures, as I know other colleagues are. Indeed, one of today’s early-day motions is about the closure of a Clydesdale Bank branch in Scotland. I think 10 banks have closed in my constituency, and I am concerned about the effect of those losses on communities. Hailing as I do from a mixed rural-urban constituency, I am very aware that local post offices are a necessity.

The hon. Member for Motherwell and Wishaw referred to the debate in Westminster Hall last Thursday on post offices and the Horizon system. Some of the stories about the impact on people’s quality of life, health, finances and some of the implications we heard were horrendous. Something that came out of that debate was the cross-party, cross-political opinion that something has to be done—it is needed desperately. I believe that the opinion is the same today.

Post offices play a crucial economic and social role in our local and rural communities. One in five people face isolation if rural post offices close. Eight in 10 small businesses in remote rural areas would lose money if local post offices were closed and, nationally, there are more post offices than there are bank branches of all the banks combined.

The banks that have closed in my constituency are mostly Ulster Bank, alongside Danske Bank, Bank of Ireland and Allied Irish, and now we have the Barclays bank closing. Credit unions have filled some of the gaps and have done an excellent job, but they cannot be expected to fill it all. New credit unions have opened in Kircubbin and there is also an active credit union in Newtownards, which is doing exceptionally well. The Under-Secretary of State for Work and Pensions, the hon. Member for Hexham (Guy Opperman), had the opportunity to come over to Northern Ireland to visit that credit union, so he is well aware of its good work. The Irish credit unions and the Ulster Federation of Credit Unions have tried to bridge some of those gaps.

The Countryside Alliance has said:

“The post office network offers an important means of accessing cash, either using its own financial products or because it provides access to the current accounts of 20 other banks and the business accounts of 8 other banks.”

The expansion of financial services through post offices could replace lost banking and financial services to rural communities and small businesses, ensuring the long-term viability of the network and that the post office remains at the centre of rural community life.

There are currently 491 open post offices in Northern Ireland; 314 of them, or 63%, are classed as rural. In my constituency of Strangford there are 22 currently open post offices and 72% are classed as rural. That says it all. I have worked alongside the Post Office and we have been able to integrate post offices into shops in the constituency quite well. That has been successful in Carrowdore, Greyabbey, Kircubbin, Ballyhalbert, Portaferry, Ballynahinch and in two or three places in Newtownards, in Comber and elsewhere. That has worked because it is about knowing the community. The people who have been interested in retaining the post office have accommodated that within their shops, and have thereby ensured that the post office continues to be an important part of community life.

[Mr Gregory Campbell]

I am sorry to interrupt my hon. Friend on his grand tour of his Strangford constituency, but does he agree that in many rural areas in the regions and nations of the United Kingdom, what he has outlined is what has happened in the past few years—small post offices have been incorporated into shops and have developed services? That needs to be promoted more to retain and develop the network.

[Jim Shannon]

I thank my hon. Friend for his wise words. I agree that that has been a success story. Perhaps the Minister will be able to confirm in her response whether that is happening in other parts of the United Kingdom of Great Britain and Northern Ireland as well.

There is now no longer a bank the entire way down the Ards peninsula. It is the post office that enables not only pensioners but local workers and stay-at-home parents to access banking and their funds. The importance of that to a community cannot be overstated.

The Post Office has highlighted to me that it has consistently met all five national access criteria; at the end of March 2019, 99.7% of the population lived within three miles of a post office—that is probably true in my constituency—and 92.7% lived within one mile. Post offices are very much an integral core part of village life, rural life and community life.

In addition, there are legal access targets to ensure that at least 95% of the population of every postcode district are within six miles of their nearest post office. It was found on 31 March 2018 that that criterion was not met in seven postcode districts. I am informed that as of 31 March 2019 there were three postcode districts that did not meet that criteria, and they are being worked on. Good work has been done, but other Members have referred to the importance of post offices and there are anomalies that need to be addressed. The post office network is attempting to fill the gap left by the rural bank branches—an extra burden that it is doing its best to address. That should be welcomed and further secured with clear signals from the Government.

I echo the calls of the Countryside Alliance to deliver on three key issues, which I hope the Minister can respond on. The Post Office and banks need to standardise banking services offered over the post office counter. Post offices must remain relevant in modern times through supporting growth in activities such as online shopping through parcel collection and delivery, and to continue to pick up the slack as banks and shops close in rural areas. There should also be access to the banking protocol, to ensure that when a branch is moved or closed, customers are made aware of the banking services offered by the nearest post office. It is crucial that post offices are an option that people can fall back on whenever banks close. That has happened in my constituency and I would like to see it happen in other constituencies as well.

We are slowly but surely moving into a situation where someone who does not have broadband of a decent speed will be isolated from their finances as well as other services, and not every person has access to online services. Our post offices are the last line of defence and we need to stand with them to defend this last bastion against rural social isolation.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 3rd March 2020 Commons Chamber

[Alok Sharma]

The hon. Gentleman raises an important point. We currently have 460,000 green jobs in this country, and we want to push that to 2 million. I would be happy to meet him to discuss the specific point that he has raised.

[Jim Shannon (Strangford) (DUP)]

Across the whole of the United Kingdom of Great Britain and Northern Ireland, universities have played a critical role in research and development. What help will the Secretary of State give to Queen’s University and Ulster University in Belfast, as well as to the Greenmount Agricultural College, so that they can apply for funding to help research and development across the whole of the United Kingdom?

[Alok Sharma]

Of course, UKRI provides funding for a whole range of universities. Again, if the hon. Gentleman has specific ideas for projects, perhaps he would come forward with them.

Energy Efficiency Measures: Net Zero Buildings

Jim Shannon Excerpts

Wednesday 26th February 2020 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I congratulate the right hon. Member for Ludlow (Philip Dunne) on securing this debate in Westminster Hall today and on his election as Chair of the Environmental Audit Committee. We look forward to many contributions under his chairmanship.

It is always a pleasure to follow the hon. Member for Henley (John Howell). In debates in Westminster Hall, he and I often sit on opposite sides of the Chamber but say the same things. That will be the case again today, which is very positive.

I declare an interest as chair of the all-party group on healthy homes and buildings, which over the last few years has conducted a number of inquiries and made recommendations, but everyone, including councils, the Government, builders and householders, has a role to play in achieving energy efficiency in buildings. Many of us have taken the environment for granted for too long. My firm desire is that my grandchildren and my great-grandchildren will have an opportunity to enjoy the beautiful countryside that I have so enjoyed throughout my life. For that to happen, we have to make changes that are positive, constructive and mark the way forward. I sincerely believe that we have to be good caretakers of the land that God has granted us and that we hold in trust for future generations.

We must also all be conscious that a massive part of addressing these issues is to use our Commonwealth, diplomatic and trading partnerships to encourage big industrial countries to take decisions that reduce the size of their carbon footprint. We must be ambitious in our desire to achieve that, but we must always bring people along with us in our attempts to make a difference to this wonderful world that we live in. The Committee on Climate Change has highlighted that Northern Ireland contributed 4% of UK carbon emissions in 2016. That is a small percentage, but it does not mean that we do not have to do our bit and make sure that reductions happen. We have a key role to play in meeting the UK’s legislated emissions reduction targets and obligations under the Paris agreement. With a reconstituted Northern Ireland Assembly up and running, and functioning, there will naturally be a more formalised approach to how we can reduce our emissions in line with the rest of the United Kingdom. The Minister is always very assiduous in replying to comments and questions, so could I ask him—I probably know the answer, but for the record—what discussions has he had with the Northern Ireland Assembly at this early stage to see how we meet the targets?

I was interested to learn that the built environment contributes around 40% of the UK’s total carbon footprint. Almost half of that comes from energy used in buildings, for example plug loads and cooking, and infrastructure, such as roads and railways, and has nothing to do with the functional operation. Newly constructed buildings are more energy efficient, but 80% of the buildings we will have in 2050 have already been built, so a major priority is decarbonising our existing stock, the cost of which has been mentioned by previous speakers.

The UK Green Construction Board said:

“Direct emissions from fuel use in existing buildings rose for the second year running in 2016, mainly due to heating. Heating alone results in 10% of the nation’s carbon footprint and homes are more significant than all other building types put together. Decarbonising our heat supply is one of the big policy challenges ahead. Another major challenge is the carbon embodied through construction. Annual embodied emissions alone are currently higher than the GCB’s target for total built environment emissions by 2050.”

In a very interesting paper, the Royal Institute of British Architects notes:

“The built environment is responsible for around 40% of global carbon emissions and architects have a significant role to play in reducing UK greenhouse gas emissions to net zero.”

RIBA welcomes the commitments and the direction of travel signified by many of the measures proposed in recent Government consultations. It sets out six points, the first of which relates to using the metric of “operational energy”, or energy used at the meter. Operational energy is the actual energy use of a building, and includes both regulated and unregulated energy sources. We must look at what happens in homes. Energy performance certificates are not the most accurate measure of energy efficiency, as they only predict for regulated energy sources, including heating and lighting, not unregulated ones, including personal devices such as computers, refrigerators and coffee machines. The document suggests that operational energy should be validated through the post-occupancy evaluation at the completion of a project. POE is essential to ensure that a home is working as it was intended, which is important.

The second point is a recommendation of actual energy performance targets for buildings in line with the RIBA 2030 climate challenge. The current process essentially benefits buildings of poor shape and design, and we have to change that, because if we do not we shall have problems. Setting actual operational energy targets would encourage architects, developers and homeowners to be innovative and would reward good design based on form, orientation and fabric performance, rather than simply calculating an emissions reduction based on a generic building.

Thirdly, RIBA proposes introducing embodied carbon targets for buildings, in line with the 2030 climate challenge, and suggests giving encouragement for embodied carbon to be calculated in accordance with the Royal Institution of Chartered Surveyors whole-life carbon assessment for the built environment. Again, those are positive measures, and the Minister is probably well aware of those recommendations and suggestions, but it is important to have them on the record. RIBA also suggests promoting the use of post-occupancy evaluations, pointing out that a POE gives the building owner or tenant, the architect and the builder a chance to understand any areas that are not performing as expected, and to make changes. That is especially useful for energy efficiency.

The fifth recommendation is to close the loopholes in the transitional arrangements for the future homes standard. The document refers to evidence that housing developments are being built to energy efficiency requirements that have been superseded more than twice, as a result of changes to part L of the building regulations. It seems that the requirements may have improved, but people have not caught up with that. That is not acceptable and it will result in housing developments being built to different energy efficiency requirements. We need them to be built to the same requirements, so that the same process goes forward. RIBA suggests that where “substantial and meaningful work” such as physical construction work has commenced on an individual building within a reasonable period, the transitional arrangements should apply to that building—but not to buildings on which some building work has not commenced. It further suggests that a reasonable period within which work should have started is 12 months.

The last point is about introducing display energy certificates. As I have mentioned, EPCs are not an appropriate measure of energy efficiency. The use of the actual energy performance as a measure of energy efficiency through the implementation of a DEC programme would be more effective. That approach has been used in New York and Australia. Both disclose operational energy use for all buildings and in the latter case it has helped to reduce operational energy by some 70%.

There are things happening elsewhere that we should try to make progress with. The climate emergency demands urgent action and leadership by architects and the wider construction industry. It is important to reduce operational energy demand by at least 75%, and embodied carbon by at least 50% to 70%, before UK offsetting; and to reduce potable water use by at least 40%, as well as achieving all core health and wellbeing targets.

It is clear that there is a role in construction to help us to achieve our carbon goal. As with anything else of worth, what we want must be paid for in some way. There is no doubt that scaling back funding and incentives in the construction industry has meant that we are not achieving what we could achieve. We must focus our energy, attention and finances on encouragement to big constructors and small firms alike. It is important to make lasting change to the mindset of the construction industry to ensure that we meet and keep to targets and that we are an example to the rest of the world of how carbon-zero building can be achieved in an affordable and practical way.

I am sure that we are all aware of the story where a young boy of five or six years old on the shore is picking up starfish and a man is watching his antics. The boy picks up a starfish, puts it in his bucket and takes it out to sea. The guy looks at him and says, “Young man, you’re wasting your time. You can’t save them all,” and he answers, “But I can save this one.” We can only play a small part by what we do. We cannot change the world by ourselves, but we can bring about change if we do what we can at home. We cannot reduce the world’s emissions by our own efforts, but we can reduce the emissions in our reach and encourage other nations across the world to do the same.

UK Oil and Gas Industry

Jim Shannon Excerpts

Tuesday 25th February 2020 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this debate, and I thank the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) for bringing it forward. He has obtained other debates on this issue in Westminster Hall, and I have been here to support him in them because, as he says, it is not—with great respect—just Teesside and Scotland but the whole United Kingdom of Great Britain and Northern Ireland that benefits from the jobs that are created and from the spin-off to the economy.

We may not get the direct effect of having oilfields or rigs off the coast of Northern Ireland, but people from my constituency and from across Northern Ireland are involved in the work in the North sea. I am always mindful of that, which is why I want to make a contribution to the debate. The industry is important to the economy and to the future of the entire United Kingdom of Great Britain and Northern Ireland, so I am pleased we are discussing it today. It is always better when we have the four regions together working as one for the benefit of all. Quite clearly that can happen in this case.

Things have massively changed in the United Kingdom in past years. Having been a net exporter of oil and gas, we are now a net importer. As always, I thank the Library for its succinct briefing, which makes it clear where we stand. Oil and gas made up 75% of the energy supplied in the United Kingdom in 2018. Net imports made up 13% of the oil that the UK used, with the remainder coming from domestic production. Net imports of natural gas were 50% of UK supply. The majority of oil—77% of final consumption—is refined for use in transport. Just over one third of the UK’s total gas is used for domestic heating, and just under one third for electricity generation. The UK is also a net importer of petroleum products, such as petrol, diesel and heating oils.

The oil and gas industry, both onshore and offshore, employs 31,000 people directly and a further 121,000 in relevant supply chains in the United Kingdom. Right across the United Kingdom of Great Britain and Northern Ireland, we all benefit from the oil and gas industry, and we have constituents who make a contribution to this very important sector and industry.

According to estimates from the industry body Oil & Gas UK, overall employment in the industry has fallen by 35% since 2013. In 2016-17, Government revenues from oil and gas production were £1.2 billion, which was a slight increase on previous years, but overall tax revenue from oil and gas has declined sharply over the past decade. Again, we look forward to the Minister’s response on that point.

We have a massive need for oil and gas to meet our energy and transport needs, and we must future-proof how we meet them, to be less reliant on other nations and to be self-sufficient. How do we do that? That is what the hon. Gentleman referred to. I often point to the energy that is all around us, which, if harnessed correctly, can meet our needs. I know it is not oil and gas, but it is energy. I think specifically of the SeaGen current turbine that was in Strangford lough in my constituency. At one stage, it had the capacity to supply one of my major towns with electricity. There were issues with SeaGen as it came to the end of its life, but the fact remains that there is potential there for us to become less reliant on overseas production and more reliant on what God has given us: a reliable, twice-daily tide and strong undersea currents.

[Mr Gregory Campbell (East Londonderry) (DUP)]

My hon. Friend talks about potential; does he agree that the proposed oil and gas sector deal that we hear about from the Government gives them an opportunity to achieve the levelling up they have talked about, and that it should transcend north-east Scotland and cover the entire United Kingdom, so that companies and people involved in the energy sector can benefit from that new deal?

[Jim Shannon]

That is exactly what we need to do. Many of the debates we now have, as we are leaving the EU and looking towards a better and more prosperous future for the United Kingdom of Great Britain and Northern Ireland, are about levelling out. How can we all benefit? It is absolutely right that we should be trying to do that in every way we can. There are opportunities for economic boosts, for employment, for a better society and for people’s quality of living to be increased.

While none of us advocates for endless money’s being poured into research project after research project, the fact is that, for us to understand how best to meet energy needs, we must do the research. That leads me to the issue of exploratory fracking. There are obvious concerns about the impact that that has on the surroundings, and it is clear that we need to know what the impact would be before we could even consider implementing fracking. I remain unconvinced of its safety. People are divided on whether fracking is good for the economy, the rural community or people, and there are concerns.

Back in 2016 I asked a question of the Minister then in place—not the Minister who is here today, by the way:

“To ask the Secretary of State for Communities and Local Government, if he will update national and planning policies to (a) account for shale operations and (b) introduce buffer zones between shale developments and local communities.”

At the time, I was not entirely convinced by the ministerial reply:

“The National Planning Policy Framework and supporting guidance sets out a comprehensive approach to planning for shale gas extraction in England.”

We had a potential shale exploration outside Larne in East Antrim. That did not go anywhere, because the opposition from people close by was very clear, but we need to find a balance in the process. The reply continued:

“Planning guidance includes the use of buffer zones in the determination of planning applications for hydrocarbon extraction, including from shale. This states that above ground separation distances are acceptable in specific circumstances where it is clear that, based on site specific assessments and other forms of mitigation measures (such as working scheme design and landscaping), a certain distance is required between the boundary of the minerals site and the adjacent development.”

We must try to develop a balance between meeting our constituents’ high demand for energy and the need to address climate change, which the hon. Member for West Aberdeenshire and Kincardine referred to in his contribution—we cannot ignore that either. We are committed to the target of net zero carbon by 2045, and many organisations have signed up to it; the National Farmers Union has signed up to it and has come up with some great ideas on how to achieve it. We must ensure that we can deliver our own energy needs in a way that means we are not dependent on others.

I close with this point: it is clear that we have a duty of care to our constituents to protect their environment, but also to secure future energy provision. That is a very delicate balance, which needs to be carefully considered. I look forward to understanding more from the Government and the Minister about their plans for finding and sustaining that delicate balance.

Coventry IKEA Store Closure

Jim Shannon Excerpts

Thursday 13th February 2020 Commons Chamber

[Zarah Sultana]

I thank my hon. Friend for making a really important point. I will be coming to the decline of the high streets and regional investment in a moment.

The General Electric Company factory was a six-storey building, employing thousands of people in relatively decent and unionised work. With deindustrialisation, Coventry has seen secure and well-paid jobs replaced by insecure and poorly-paid work. This is the first story that the loss of the IKEA store speaks to. The second is the decline of the British high street.

Coventry city centre, like all our city centres, is more than a place to shop. It is the beating heart of the city—a place that should provide community, culture and character. But in the last decade, the retail sector has been increasingly hard hit and empty shops are becoming commonplace. As one Coventrian said at the news of the store’s closure, the city risks becoming a ghost town again.

[Jim Shannon (Strangford) (DUP)]

As someone who has bought numerous furniture items from IKEA and spent frustrating hours putting them together, I understand the IKEA furniture concept. Does the hon. Lady agree that the potential loss of 352 jobs is horrific, and that there must be an onus on a chain store as large as IKEA to go the extra mile by placing members of staff in other stores or ensuring that they are trained for new jobs? It is not enough to just up sticks with a “too bad, too sad” attitude; that just will not be accepted.

[Zarah Sultana]

Absolutely. The priority has to be every single member of staff whose job is at risk. IKEA should prioritise their needs, and ensure that they are redeployed to other stores or offered skills and training.

The words of The Specials risk becoming true once more. But there is a broader trend; there are now roughly 25,000 empty retail spaces around the country, which is a vacancy rate in excess of 10%. Last year, 57,000 retail jobs were lost, and a further 10,000 were lost last month alone. The market is only too happy to put workers on the scrapheap the moment that the profit motive demands, and there is a real danger that these IKEA workers will be discarded too, but they must not be forced into unemployment with all the strain and pain that it brings.

I know how grim unemployment can be. I know what it feels like. I know the sense of shame for people who stand in the queue at the jobcentre. I know the loss of confidence they feel, the impact it has on their self-esteem and the fear they feel that they may lose their skills. I have been there. For the sake of these workers—and workers across Coventry and the country who are at risk of losing their jobs, are stuck in insecure work or are already out of work—I tell the Minister that it is his responsibility to ensure that this does not happen. It is his responsibility to protect workers from unemployment and to ensure that the training, reskilling and job opportunities exist to give everyone the chance to have decent, well-paid and secure work. We cannot have a Government who oversee the opening up of food banks and the closing down of good workplaces.

The Prime Minister likes to talk about “levelling up” the country. Well, I hope I am forgiven for not believing a man whose party drove the deindustrialisation that now blights the midlands and the north; whose party slashed the funding of public services that working people rely on, cutting more in the midlands and the north than in the wealthy shires; and whose party continues to prioritise the City of London, which dominates the economy, and concentrate spending on the capital and the south-east. After all, in his own words, nobody “stuck up for the bankers” more than he did.

If the Prime Minister were to follow up on his promise to invest in the region, here is what he would do for workers in Coventry—here is what he would do to ensure that the 352 workers at the IKEA store would not have to fear unemployment. It means reversing decades of deindustrialisation and instead investing in new green industries to kick-start the green industrial revolution, including manufacturing electrical vehicles to bring back the motor industry to the west midlands, but now reducing emissions and improving air quality. It means investing in Coventry’s public transport, opening up new rail lines and bringing them into public ownership to make travel free and green. It means reversing cuts to local government, whereby councils have lost 60p to every £1, so that Coventry City Council can support the local community as it wants to. It means rejuvenating Coventry city centre and high streets across the country by giving local councils the power to open empty retail spaces to start-ups, co-operative businesses and local community projects. It means not pretending that you are not to blame for the collapse in bus services, when Conservative Governments have cut £645 million in real terms from buses, and instead putting real money into our bus services and letting under-25s travel for free. That is how we can rejuvenate Coventry city centre and high streets across the country.

Coventry is the city of culture 2021; it is a city rich in culture and industrial history. But the closure of IKEA will be the latest episode in what happens when Governments do not invest in all regions, allow deindustrialisation to go unchecked and let our high streets empty. That must not continue. I give my solidarity to the workers at IKEA at what is a difficult time for them and clearly state that I am here to fight for them and for all workers.

Nuclear Energy Policy: Climate Change

Jim Shannon Excerpts

Wednesday 5th February 2020 Commons Chamber

[Virginia Crosbie (Ynys Môn) (Con)]

Thank you, Mr Speaker, for the opportunity to introduce this important debate tonight.

Our country’s ever-increasing energy requirements and, more importantly, how those requirements are met have long been the source of much debate under Governments of all political colours. Hitting the right energy mix is the aim of all high-consumption countries around the world but, of course, it is easier said than done.

Never has the energy mix been more evident than in my constituency of Ynys Môn in north Wales. Wave and solar energy specialists on Ynys Môn are leading the way in their respective fields, and some of the first offshore wind prototypes were tested on the island. However, this is only part of the all-important energy mix.

New nuclear power has the capability to meet rising demand, and this Conservative Government can be incredibly proud that the UK is the first major economy to pass a net zero emissions law with a carbon target of net zero by 2050. Wylfa Newydd on Ynys Môn is critical to achieving that target for a number of reasons, and I will touch on only a few of the most salient points tonight.

First, there is rising demand for electricity, and the Committee on Climate Change predicts that demand to double. The electricity we produce cannot be any electricity: it must come from clean sources and, of course, it must be dependable. This report introduces the idea of firm power—electricity generation that can be relied on to supply demand at all times. We cannot ignore our population’s ever-increasing requirement for electricity as we decarbonise heat and transport.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Lady on securing this debate on a vital subject and on her wonderful introduction. Does she agree that, as with all things in life, a balance must be struck and that we must balance the provision of energy with a safe and secure foundation for that provision? Does she also agree that nuclear power, which I support, is not the answer to all our needs but is currently necessary and that, while we consider viable replacements for nuclear energy, we must take care of our nuclear plants to the highest safety standards?

[Virginia Crosbie]

This reactor technology is proven and has already been delivered four times. I agree with the hon. Gentleman that this technology must be proven to be safe.

Secondly, nuclear power fits in with decarbonisation both here and in the world at large. Nuclear energy has been powering UK homes since 1956, doing the heavy lifting of decarbonisation long before global warming was near the political agenda. According to the “Digest of United Kingdom Energy Statistics 2019” published by the Department for Business, Energy and Industrial Strategy, nuclear power provides over 45% of our domestically generated clean power. Over the next decade, however, all but one of our current fleet is due to come offline. If that capacity is not replaced with nuclear, our emissions will go up.

Countries like Germany have tried to decarbonise by shutting down their nuclear power stations and opening open-cast lignite coal mines—the dirtiest form of coal possible—to keep the lights on when their wind and solar fleet is not generating enough electricity. Their long-term solution is to pipe in gas from Russia, but that is still a polluting fossil fuel. The Nord Stream 2 project risks Germany becoming too dependent on gas from Russia, at a time when the world’s political instabilities risk supply cut-off. This would not be an appropriate course of action for us to take.

If we were to exclude nuclear in the UK, we would need to install 478 GW of capacity, compared with between just 70 GW and 80 GW in a balanced mix. The Massachusetts Institute of Technology concluded in 2018 that not only is it more difficult to reach net zero without nuclear, but it is significantly more expensive.

Lastly, but most importantly, for my constituents of Ynys Môn the economic benefits are clear. As a Government, we promised our voters in areas such as mine that they would not be forgotten any longer.

--- Later in debate ---

[Nadhim Zahawi]

Quite right, Sir. It has been over three decades since Ynys Môn elected a Conservative Member of Parliament and I look forward to working with her over the coming years to ensure that this Government deliver for the people of her constituency and across the entire region of north Wales.

I am pleased that my hon. Friend has raised the important issue of nuclear energy, and I am eager to speak to her and the House this evening about the huge number of benefits that the UK expects to receive as a result of the Government’s commitment to the sector. I am grateful to the Secretary of State for Work and Pensions, my right hon. Friend the Member for Suffolk Coastal (Dr Coffey), for her presence. She, too, takes an eager interest in nuclear power, not only because of her constituency and her constituents’ needs, but for the wellbeing of the energy sector nationally.

New nuclear is likely to have a significant role to play in reducing greenhouse gas emissions to net zero by 2050. In September 2016, we gave the go-ahead to the first new nuclear power station in a generation, at Hinkley Point C; and in June 2018 we committed £200 million through our landmark nuclear sector deal, which includes millions of pounds for advanced nuclear technologies. The Government understand the important role that nuclear plays, and will continue to play, in our economy. That role includes ensuring that local and national benefits are realised, whether through increased employment opportunities or improvements in skills.

As my hon. Friend the Member for Ynys Môn reminded us, on 27 June 2019 the UK Government set a legally binding target to achieve net zero greenhouse gas emissions from across the whole UK economy by 2050. We were the first major economy in the world—followed by France and the rest of the EU—to legislate for net zero, and we want to deliver our commitments in a way that maximises the economic benefits of the transition to net zero. Between 1990 and 2017, we reduced emissions by more than 40% while at the same time growing our economy by more than two thirds, decarbonising our economy faster than any other G20 country. The net zero target requires us to build on that progress by transforming the whole of our economy and, of course, changing the culture in our society—our homes, our transport, our businesses and how we generate and use energy.

I thank my hon. Friend for talking about the energy White Paper. It will form a key part of our journey to net zero. To answer her question about its publication date, I can inform her that the Secretary of State has stated that she intends to publish the energy White Paper in the first quarter of this year. The White Paper will set out a clear, decisive strategy—a strategic approach to decarbonising energy, driving up clean growth opportunities and demonstrating international leadership in the build-up to COP26 at the end of the year. I am sure we are all delighted that COP26 is to be hosted in the great Scottish city of Glasgow.

Net zero is not just good for the environment; it is good business. It is already abundantly clear, however, that a substantial increase in low-carbon generation will be needed to reach net zero by 2050. Nuclear will have an important role to play in the UK’s future energy mix, providing firm low-carbon power and complementing variable renewable generation. Britain was the world’s first civil nuclear nation, and nuclear energy has powered homes and businesses in this country for more than 60 years. There are currently 15 nuclear reactors operating at eight sites throughout the UK, and they provide a fifth of our electricity. In 2016, the Government gave the go-ahead for the first new nuclear power station in a generation, at Hinkley Point C in Somerset. Once operational, Hinkley will provide 3.2 GW of secure, low-carbon electricity for around 60 years, meeting an estimated 7% of the UK’s current electricity requirements. To put that another way, it will power nearly 6 million British homes—twice as many homes as there are in London.

I recently had the pleasure of visiting the Hinkley site, and it was incredible to see the sheer scale of the endeavour that is being undertaken. There has been significant progress at the site; in December, the developer announced that all key milestones for 2019 had been achieved. Those included the successful delivery of J-zero for the first reactor, which marked the point at which the foundations for unit 1 were complete and the above-ground work could commence. They also included the first big lift for Big Carl—who I met—the world’s largest land-based crane, which towers 250 metres over the site. In one single lift, it can lift the equivalent weight of 5,000 shire horses, or of two A380s. It is a remarkable piece of engineering. On 18 December, engineers at Hinkley worked through the night to lift a 170 tonne part of the reactor’s steel containment liner into place, and it was fantastic to see the results at first hand.

During its construction and operation, Hinkley Point C will provide the local region, as well as the entirety of the UK, with economic benefits. In July 2018, the Government published “Hinkley Point C: wider benefits realisation plan”. The plan, produced with support from EDF Energy, sets out how the wider benefits of the project will be delivered. For example, Hinkley Point C is expected to provide more than 25,000 new employment opportunities and up to 64% of the value of construction contracts to UK-registered companies.

[Jim Shannon]

During the previous Parliament, I met some of the people involved in the project. They told me that all regions of the United Kingdom of Great Britain and Northern Ireland would benefit from those jobs. Can the Minister confirm that Northern Ireland will gain from the construction of the project?

[Nadhim Zahawi]

I am grateful to my hon. Friend for that question. I am happy to write back to him on how much of the benefit has gone to businesses in Northern Ireland.

A total of almost £4 billion in today’s money will go into the regional economy over the lifetime of the project, composed of about £1.5 billion during construction and about £2.4 billion during operations.