Pubs Code 2016

Jim Shannon Excerpts

Wednesday 24th January 2018 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Member for West Bromwich West (Mr Bailey) on bringing the matter forward today. The hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont) said that it does not directly affect his constituency, and neither does it directly affect Northern Ireland, but that does not lessen our interest in the issue. I have spoken on it, and asked questions about it, before. I want to speak about the principle of the matter, although it is only England and Wales that are affected.

I have long held the view that we need to consider who audits the auditors and who holds to account those who hold the rest of us to account. I have been dismayed at times, when, trying to represent my constituents, I have requested information from accountability bodies. It would appear that the matter before us presents another example of the need for more accountability, as the hon. Member for West Bromwich West suggested.

I want to give credit to someone who is no longer in this House, and whom the hon. Member for West Bromwich West will well recall—Greg Mulholland, who represented Leeds North West. He fought the case in the Chamber whenever he had the opportunity. I was betwixt the two—the hon. Member for West Bromwich West, who sat behind me, and Greg Mulholland in front of me.

[Toby Perkins]

I am grateful to the hon. Gentleman for saying that. I wrote down the same point in my speech but failed to read it out, so I am grateful that he took the opportunity. He is right to say that Greg Mulholland was a principal actor in getting the measure into the draft.

[Jim Shannon]

I thank the hon. Gentleman for that intervention.

[Mr Bailey]

I agree with my hon. Friend the Member for Chesterfield (Toby Perkins). In fact I received a comprehensive brief from Greg Mulholland about an hour before I came into the Chamber. I had a feeling that somehow his beady eyes would be upon us today to ensure that we would articulate the viewpoint on which he has campaigned so effectively for many years.

[Jim Shannon]

I thank both hon. Gentlemen for their comments which, along with mine and others’, are a recognition of the tremendous work that the gentleman in question put in, in this Chamber. We all recognise that his efforts were one reason we have got so far forward.

Others have endeavoured to take us the extra mile through their efforts, and I was made aware of the details from the briefing that was most helpfully provided by the Library. We do not often say it, but I thank those researchers for their diligent work. They provide tremendously factual and detailed information to sharpen the memory a wee bit and help in recalling what is important—the briefings also provide a signpost to further excellent information.

I am aware of the importance of pubs in my constituency, as all hon. Members will be. In rural areas in my constituency, more often than not the pub is the central focus of attention for meeting, entertaining and eating—just somewhere to meet. The importance of pubs cannot be underlined too strongly. I think it was just a few weeks ago, perhaps just before Christmas, that there were pubs closing. The rate of pub closures across the United Kingdom of Great Britain and Northern Ireland is alarming. I think that the pubs code and the Pubs Code Adjudicator are part of a methodology to try to hold back the tide of closures, so it is important that that is in place.

There was a community project where a collective got together and used their own investments to restart their pub with a major refurbishment. They did so for a purpose. They recognised that the community had lost something important and they wanted to reinstate it. Pubs are important in contributing to the economy and providing jobs, and as focal points for leisure and meeting.

It seems to me that hon. Members stepped in to stop the monopoly that was affecting small pub tenants. The spirit of the law under the pubs code was to allow a tenant to request a quote from their pub-owning company for a rent only agreement when their tenancy was due for renewal. We also established a position whereby there could be arbitration and mediation to ensure that the spirit of the law was being followed. That job lies squarely in the hands of the Pubs Code Adjudicator. Members have outlined credible and legitimate concerns, and we look to the Minister, as we often do, for a comprehensive response. Questions have now been asked as to whether the adjudicator is impartially fulfilling the role. In a few cases, the professional arbitrators body has stepped in to ask for someone else to arbitrate. Sometimes we must ask why something is happening: is there a failure in the present system? Some Members have set out a case that there is. The Minister must deal with that in his response.

I believe that the spirit of what we strove for was giving the little man or woman a chance. That might not mean every case being granted, but it does mean every case being fairly considered. Perhaps that means that the involvement of a third person is needed. I stand by the bringing in of a deputy to take up the cases that are questionable or that need to be reviewed or looked at again. That is what the spirit of the law has been. No man in this world is infallible and we all understand that we must submit to allowing others to step in at some stage to give oversight to something if there is a different way of seeing it or a clearer way to understand it.

As an example of such a difficult issue, if a lady came to the constituency office for help with serious intimate problems, she might prefer to speak to one of the girls in the office. Anyone would know what to do: set themselves aside so that they could do that. Why cannot that happen in the present difficult matter as well? I have no issue about handing such a case to one of my capable staff, who understand the issues very well. The best interest of the people in the case is most important. That is the view to take.

We must look at what we sought to achieve and find a way to bring that about practically. That is what I support today, and what other right hon. and hon. Members have argued for. Just as an auditor would be entitled to audit my affairs, they must be open to having what they do audited. That is true accountability. Each one of us is ultimately accountable to someone. That was the spirit of the pubs code—to help the little man or woman. Let us uphold that spirit today.

Delivery Charges (Scotland)

Jim Shannon Excerpts

Wednesday 20th December 2017 Westminster Hall

[Douglas Ross (Moray) (Con)]

I beg to move,

That this House has considered delivery charges in Scotland.

It is a pleasure to serve under your chairmanship, Ms Dorries. Unfair delivery charges to Moray and other parts of Scotland are not new. The despicable practice of hiking up prices to deliver to mainland UK has been going on far too long and people are fed up. That was one of the key themes that I mentioned in my maiden speech when I came to this place and it follows on from the work of my predecessor and other hon. Members who have been seeking a solution to the problem. I welcome the true cross-party approach to tackling this injustice, to calling out the unscrupulous companies that think they can treat people in the north as second-class citizens and to highlighting this shoddy behaviour for what it truly is—an inexcusable rip-off of consumers in Moray and across Scotland.

What is the issue that we are seeking to resolve? First, I have to commend the work of Royal Mail, which continues to deliver parcels anywhere in the UK for the same price. When I visited my local delivery office on Monday morning, I spoke with the manager, Mike Sinclair, and the huge number of parcels to be delivered by our local posties over the next few days was clear. People who use Royal Mail can do so with confidence that a parcel going from Moray to Manchester will cost the same as one going from Manchester to Moray. Sadly, the same cannot be said for other companies and couriers.

So often I am contacted by local people who are frustrated because they have tried to buy something online, only to be let down at the final stage. They have browsed the products, made their choice and selected a delivery option that clearly states “delivery to mainland UK”, only to be told when they put in their postcode that the IV or AB postcodes in Moray are in fact on some island offshore the mainland. If that were not so duplicitous, it might be funny, but it is not. It is a lie these companies peddle to hike up charges, and we will not stand for it any more.

[Jim Shannon (Strangford) (DUP)]

I asked the hon. Gentleman before the debate for permission to intervene. He will know that the Consumer Council for Northern Ireland has brought this issue to the attention of people in Northern Ireland, where consumers are affected by it greatly. Some 33% of UK retailers apply a delivery restriction to Northern Ireland and 26% of Northern Ireland consumers are charged additional delivery costs. They are asked to pay 41% more on average than consumers anywhere else in the United Kingdom; the average charge is £11.89. Does the hon. Gentleman agree that Scotland is important, but Northern Ireland is equally important? We want fair play as well.

[Douglas Ross]

I am very grateful to the hon. Gentleman for raising that point. Before the debate, the parliamentary digital team created a video illustrating it and asked for people’s responses, and one response came from Northern Ireland. Sandra Dean said:

“I have been refused delivery from England to Northern Ireland, too. It is cheaper with some couriers to get a parcel delivered from UK to the Republic than to Northern Ireland!”

I therefore fully agree with the very valid points made by the hon. Gentleman.

--- Later in debate ---

[Douglas Ross]

I am grateful to the hon. Gentleman for his intervention. The discussion I had at my local sorting office on Monday suggested that these companies pick all the low-hanging fruit. They are quite happy to deliver to the more urban areas where they can get these parcels out very quickly, but they leave the more challenging areas to Royal Mail, or, as we are speaking about the private couriers, they just refuse to deliver to some of these areas at all. That is unacceptable.

I have spoken about a number of products that I expected to speak about in this debate, such as showers. I did not think I would be speaking about pigeon racing, but I have a constituent from Elgin, whose hobby is pigeon racing. He is a member of the North of Scotland Federation and the Elgin and District Racing Pigeon Club. He tells me that all the members of the Elgin club send away for various products for their pigeons and most of the companies that sell to them believe that Moray is not attached to the UK mainland. As soon as you punch in “IV30” to the address section, up pops an attachment saying that special terms apply. He tells me that there is in fact a website from Spain that will deliver cheaper to Scotland than the biggest online pigeon supplier in the UK, which trades from Scarborough. That is surely not acceptable.

Finally, I want to mention Rebecca from Stacks Coffee House and Bistro in John O’Groats, who started a change.org campaign in July to help bring to light the widespread issue of delivery costs to the highlands and islands, and Scotland as a whole. As of this afternoon, that petition had attracted 13,600 signatures. The website they have set up is a great way of presenting the case against these rip-off charges and to show people that the politicians are taking their views seriously. One quote on the website summed up the situation well. It said:

“If a company can deliver to Land’s End for free…they can also deliver to John O’Groats.”

A gentleman called Alan, who had seen me raising this at Prime Minister’s questions, contacted me. He had tried to get a kitchen worktop delivered to the Kyle of Lochalsh. The delivery was £475. However, when he put in his in-laws’ address in Fife, it reduced to £40.

Someone I know from Wick contacted me about how it was cheaper to get something for his business delivered further south in Scotland, but it also had a delivery guarantee for the next day. When it did not arrive on time, he complained and sought a refund. The company refused. When he said he would pursue this, he was told that they would cancel his whole order and take back all the goods. In other words, a very blatant threat of blackmail: “Don’t speak up about delivery prices and standards, and if you do, we will punish you.” It is simply not good enough.

This does not just impact individuals. I have heard from a small business in Moray, which regularly gets better service from a supplier in Lower Saxony, Germany, than from the United Kingdom. The point is that high delivery charges contribute to a relatively high living cost in remote and rural areas. It acts as a disincentive to entrepreneurs setting up businesses, which could mitigate depopulation caused by declining employment opportunities in traditional sectors. I hope that the Minister will agree with me that this should be of concern to Highlands and Islands Enterprise and I am very keen to work with it to ensure that we can move this campaign forward.

In the last few minutes, if hon. Members will allow me, as the mover of this debate, I will finish with some personal experiences. My wife is celebrating her birthday today in the north of Scotland, separated from me by 500 miles. While I cannot be with her, I was hoping that if I mention her in the debate tonight, that may make up for my absence. That allows me to say that given that her birthday is on 20 December, it is difficult for me, like any man, to come up with present suggestions. She is always very efficient. She gives me a list and does not trust me to use my own initiative; I have a list of the presents I have to buy her for her birthday and Christmas every year. But like all of my Moray constituents, when I purchase these presents for her and I put in my IV30 postcode, I get charged a fortune to have it delivered.

[Jim Shannon]

She’s worth it!

[Douglas Ross]

She’s absolutely worth it! I thank the hon. Gentleman for that clarification, just in case there was any doubt. While it is worth it, I was thinking about this recently when I bought my easyJet flight down from Inverness to London, as I do on a weekly basis. As ridiculous as this may sound, when I paid for the flight, it turned out that rather than getting parcels delivered to my home in Moray, it would be cheaper for me to get them delivered here to the House of Commons and then for me to buy a seat for that parcel on an A320 aircraft, to get it home to Moray. That is a ridiculous situation and just shows how much people are taking advantage of my constituents and others who suffer in this way.

The Minister has heard from me, and will hear from other hon. Members, just how significant this problem really is. She will be aware from the meetings that I have had with her and the Secretary of State earlier this week that this is an issue I will pursue until consumers in Moray are treated the same way as those elsewhere in the United Kingdom. I am keen to hold a roundtable in Westminster with companies that believe they can take advantage and impose these rip-off charges on Scotland, and I have requested an inquiry on this issue with the Select Committee on Scottish Affairs.

Sector Deal for Steel

Jim Shannon Excerpts

Tuesday 19th December 2017 Westminster Hall

[Stephen Kinnock]

I agree with my hon. Friend. The sector deal has been submitted under the umbrella of UK Steel and EEF, but with the full participation and support of Tata Steel, British Steel, Liberty Steel, Celsa Steel and a number of other key players in the sector. The steel industry really speaks with one voice on this.

Without a cost-competitive energy environment, steel companies cannot invest in the future, and the industry can survive only when it has the potential to thrive. Steel is too important a product for our economy, our security, our communities and our standing as a nation for us to have to rely on others for it.

[Jim Shannon (Strangford) (DUP)]

The fact that the UK produced some 8 million tonnes of steel in 2016, while China produced 808 million tonnes shows a vast difference. Does the hon. Gentleman agree—I think he is basically saying this—that it may now be time for the Government to enter into negotiations with the companies and also the unions to ensure that we have a manufacturing base for steel in future? We will not have one unless the Government act. It is time that they did.

[Stephen Kinnock]

I absolutely agree with the hon. Gentleman. As I will come on to explain, the sector proposal is the litmus test for the Government. We have had years and years of warm words, but this really is the moment to see whether the Government are serious about providing the support they say they want to provide.

Steel enables transport, construction, manufacturing, energy and consumer goods—you name it, Sir Henry, and if steel is not in it, it was almost certainly used to make, process or transport it. Steel is truly a foundation industry, and demand is growing. The report published last week, “Future Capacities and Capabilities of the UK Steel Industry”, showed that, by 2030, domestic demand for finished steel products will have grown by almost 2 million tonnes. That leaves almost 7 million tonnes of domestic demand to be met by the UK steel industry, which equates to a £3.8 billion opportunity per year.

That value is even greater if we consider all that steel goes into. Almost half the content of all cars built in the UK is British steel. In researching the “Steel 2020” report by the all-party parliamentary group on steel and metal related industries last year—I have a copy with me; I am sure the Minister has already read it, but I would be happy to hand it over—we heard from leading figures in the car industry that the presence of a successful domestic steel industry is a key determinant of where steel is sourced.

Steel is vital to the future of UK car manufacturing and innovation. Take the much-vaunted electric and self-driving cars, which were championed by the Chancellor in last month’s Budget. Along with the normal steel content of any car, what do hon. Members think their batteries are cased in? Steel. If we are to invest billions in that new technology, why on earth would we not invest in the capacity to monetise those innovations? If we do not have the capacity to manufacture, or the capacity to produce the steel for the batteries and the machines that manufacture them, we will lose out. The steel will be Chinese. The manufacturing and machinery will be German, and we will have spent billions on an idea that sees profit not in Port Talbot, Sheffield or Redcar, but in IJmuiden, Tangshan or Duisburg.

Despite investment in R and D falling by 90% over the past 25 years, the UK steel industry is still at the cutting edge. More than two thirds of steel produced in the UK today did not even exist a decade ago, so we should not let anybody tell us that steel is a sunset industry. It is an industry that is building a Britain for the future, which is why a go-ahead for the sector deal is vital. It is also important because steel is the ultimate economic and social multiplier. For every £1 of public investment in steel R and D, the return averages between £6 and £16. That means the £60 million transformation fund in the sector deal could add up to £960 million for the UK economy. I do not know about you, Sir Henry, but investing £60 million for almost a £1 billion return feels like a pretty good investment to me.

On average, steel jobs pay 40% higher than the average in the steel heartlands of Wales and Yorkshire and the Humber. Every steel job supports at least three further jobs in the local community and the national economy. Losing the steel industry would devastate towns such as Port Talbot, but the knock-on effects would be equally catastrophic. If the Port Talbot steelworks were to close, it would cost 40,000 jobs across Wales and the UK, costing the Government a total of £4.6 billion in benefits and lost tax revenue and reducing household spending in the economy by £3 billion over 10 years.

If we were to reshape the energy market, as the steel sector deal calls for, the most it would cost would be the equivalent of 57p per household per year. That is 57p a year against almost £8 billion in lost spending, tax and benefit payments if things were to go wrong. Once again, Sir Henry, that looks like a pretty good return on investment to me. There is a golden opportunity, with huge potential for growth. We should all applaud the Government for crossing the Rubicon and accepting the need for an industrial strategy, but the fact of the matter is that, if the Government fail to support the sector deal, that strategy will not be worth the paper it is written on.

Speed is of the essence. Steel companies only have so much capital to invest. That capital is spread across their global businesses, and if they cannot invest it here and now, it will go elsewhere. That is the nature of the beast. We have already seen Liberty spend almost £1 billion in Australia, and there are reports that British Steel—formerly Tata Long Products—is looking at an Italian plant. The clock is ticking and time is running out.

With the uncertainties of Brexit, the Government should be biting the hand off of anyone willing to invest at this time. Instead, steel companies have been fobbed off with all sorts of excuses. They submitted the sector deal on 7 September, but were only granted a meeting with the Minister at the very end of November—hardly the behaviour of a Government serious about supporting this foundational domestic industry. The fact is that the Government’s failure to engage on the steel asks set the tone. The sad reality is that trust between the Government and the steel industry has been shot to pieces. Warm words are no good to anyone if they are matched only by frozen actions.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 12th December 2017 Commons Chamber

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

Sound regulation is crucial to businesses, workers and consumers. Approximately 1.4 million small and medium-sized enterprises export directly or indirectly to countries in the EU, and they will have a keen interest in the outcome of our trade negotiations.

[Jim Shannon (Strangford) (DUP)]

T7. Northern Ireland has people with very good basic digital skills, but a quarter of business owners in England lack confidence in their basic digital skills. What is the Department doing to provide help for smaller businesses to fill this skills gap on the UK mainland?

[Margot James]

We are working with the Department for Education, which is investing hugely in lifelong learning, skills and employability. We are prioritising the digital skills capability within that mission, which I am sure will be of great benefit to SMEs.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 7th November 2017 Commons Chamber

[Richard Harrington]

The Government consider the security of smart meters to be very important, and the whole smart meter programme was designed with the approval of the cyber-security body and all the other relevant authorities.

[Jim Shannon (Strangford) (DUP)]

How does the Minister intend to make the process for switching between gas or electric companies easier for those with smart meters, as the process is extremely convoluted, to use a Ulster-Scots-ism, at present, with customer smart reading going dumb and manual readings having to be sent out?

[Richard Harrington]

The hon. Gentleman should be aware that the SMETS 2 programme involves complete compatibility between all the different meters, enabling people to switch. The current system that is being installed, SMETS 1, will be applicable for that in, we think, about a year, when the software allows that to happen.

Residential Premises: Product Safety and Fire Risk

Jim Shannon Excerpts

Wednesday 1st November 2017 Westminster Hall

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

I beg to move,

That this House has considered product safety and fire risk in residential premises.

It is a pleasure to see you in the Chair, Mrs Main. I am grateful for the opportunity to open this debate; given how many colleagues have turned up to support it and speak in it, I will take no more time than I need. I have timed my speech at eight minutes.

I pay generous tribute to my hon. Friend the Member for Hammersmith (Andy Slaughter), who has led a determined parliamentary campaign on these issues, supporting the attempts of the London fire brigade, Which? and Electrical Safety First to improve product safety. I am grateful to those organisations for the material that they have supplied for the debate; to the Library for the debate pack that it produced yesterday; and to the Chartered Trading Standards Institute, which weighed in this morning. All the safety organisations agree on what was and is needed.

I do not need to say very much about the scale of the problem. Three fires a day in the United Kingdom involve tumble dryers; more than 4,000 fires in 2016 were caused by faulty appliances and leads; and 2,000 fires in London between 2011 and 2016 involved white goods. The Grenfell fire was started by a fridge-freezer, and deaths have occurred elsewhere, too—one in 2010, five in 2011, two in 2014—as a result of similar sources of ignition.

I am pleased to see the Minister in her place. She is well liked and respected across the House, and much is expected of her. The Library debate pack generously details her efforts: correspondence and meetings with Whirlpool and others in the sector, press notices, written statements, meetings with colleagues, parliamentary and other questions, steering groups, working parties, support for Register My Appliance Day, and more. Those are all commendable, but many of us want a conclusive, robust and ambitious Government response, and it will continue to reflect badly on this Administration if one does not come soon. As London fire brigade’s letter states:

“There has been over three years of reports and recommendations but as yet no action from Government…the review of the UK product recall system was first announced in November 2014. This was then launched in March 2015 with consumer champion Lynn Faulds Wood leading the review which reported in February 2016 with a series of recommendations. A steering group was then set up to take these forward. Following the Shepherds Court fire, a new working group to replace the steering group was set up in autumn 2016 which published its recommendations in July 2017.”

The Government are due to publish their response at any time; I would be grateful for an update from the Minister. Yesterday, in her latest letter to my hon. Friend the Member for Hammersmith, she repeated her expectation of an “autumn response”. When I was Minister for time at the Department of Trade and Industry—not many people know that there is a Minister for time, but it was me once—my office once promised an “autumn response” in an answer to a parliamentary question. When I inquired what that meant exactly, I was told it meant “by 21 December,” which was the date of the end of the Session that autumn. Will the Minister clarify whether the response to the working party will come in late December or early November?

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on securing this debate. He has been a champion for product safety. Does he agree that the Whirlpool tumble dryer revelation is a warning that the electrical sector needs to heed before there is loss of life? The Government must play a part by enforcing codes of practice on an industry that is managing to fly under the radar.

[Jim Fitzpatrick]

The hon. Gentleman makes the central point to which I am sure all Front-Bench spokespeople will refer when they wind up the debate. I will come on to Whirlpool’s response and the central recommendations of the Faulds Wood report.

Page 7 of the Library debate pack includes an interesting detail that had previously escaped me: if people have used their credit cards to buy faulty equipment, credit card companies could be held liable. The credit card companies may therefore sue manufacturers for faulty goods. I have not heard that point mentioned in any of the debates so far, but if the credit card companies weighed in and threatened to sue Whirlpool, that might be a game-changer. That is not within the scope of this debate, but I mention it as an aside.

Post Office Services: Burncross

Jim Shannon Excerpts

Monday 30th October 2017 Commons Chamber

[Angela Smith]

Thank you, Mr Speaker. That is very kind. I know that we have plenty of time for this debate, but I will not detain the House for longer than is necessary.

Tonight I raise an issue that is unlikely to attract a great deal of parliamentary attention. However, for many people in Burncross in my constituency, the loss of their post office is a major issue that threatens serious disruption to their everyday lives. Indeed, it is such an issue that within days of the announcement that their well-used post office was to close, I received a petition from more than 1,400 local residents asking me to help.

Burncross is situated between the small town of Chapeltown and the old pit village of High Green. It is a residential area characterised predominantly by semi-detached homes of mainly private tenure, along with a smattering of local authority homes and some sheltered housing. The area is mixed demographically, but one of its principal characteristics is a higher than average proportion of residents who are eligible for an old age state pension. In other words, those who are most likely to need accessible postal services, and least likely easily to traverse large distances over Sheffield’s renowned hills to access them, are most likely to be hit by the closure. That is especially true in view of the comparatively poor public transport connectivity in the area.

The area, nestling as it does between High Green and Chapeltown, suffers from a lack of retail establishments of its own. For years, however, Burncross has enjoyed the presence of a Costcutter, which has also housed the post office. The supermarket has become an important part of the fabric of the area. It has been there for all the years that I have been the Member of Parliament for Burncross, and it was there for many years before that.

The post office has been well used, with some 1,200 transactions a week. It operated at a profit, and in 2014 it was upgraded in the network transformation programme into a new “main style” branch. I believe that that reflects its importance to the post office network. In July this year, however, it was announced without warning that the post office would close imminently, and not because the Post Office considered it to be a failing outlet, as is often the case. This debate does not represent a criticism of the Post Office, or, one may be surprised to find, the Government.

The reason for the closure was that the freehold owner of the building that housed both the supermarket and the post office decided to redevelop the site and construct a new, larger premises. That, one would imagine, could only be a good thing. Costcutter, however, decided at that point not to renew its lease arrangements and has opted out of running its business from the new premises. The upshot is that the Co-op has entered into an agreement with the owners of the building to run one of its supermarkets from the location, but its plans for the store do not include a post office.

Like any good constituency MP, I have spoken to both the Co-op and Post Office Counters about the loss of the service. While Post Office Counters is sympathetic and supports the ongoing provision of postal services in the area—it totally understands the distance that local people will have to travel if they can no longer enjoy the service—its view is that there is nowhere large enough or suitable in the area, apart from the premises soon to be taken over by the Co-op. I am afraid that my conversations with the Co-op—I say this as a member of the Co-op movement—have been very disappointing.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Lady on her campaign to try to retain the post office. I have been involved in many such cases across the water in my own constituency, and we have tried very hard to find alternative premises for post offices. On occasion, the Post Office can give grants to the potential shop owner to increase the size of a property and make it more acceptable. Has she been able to follow that up as a possible solution to her campaign?

[Angela Smith]

I do not think that that is an option, given that the new premises are already larger than the old one in which the post office was housed. That is not really the issue, as I shall establish in a moment.

As I have said, my conversations with the Co-op have been very disappointing. The company allows many postal concessions in its stores throughout the country, and it has such an arrangement in a store in the town of Stocksbridge in my constituency, but it has flatly ruled out giving a concession to run a post office in the new store, which opens next month.

At this point, we need to remember that the post office in the old store was profitable and would no doubt continue to be so, with 1,200 transactions a week. I suspect the reason for the Co-op’s decision is related to a calculation that profit margins for grocery items outweigh those that can be gained from postal services. While I appreciate that the Co-op is a business that has to make a profit in order to be sustainable, it is important to bear in mind the unique selling point of the brand in communities up and down the country. This USP is, of course, its collective roots and its unique position in our social history as a retail business firmly established in the ethics of serving the interests of its customers, who are of course its shareholders, too.

Indeed, given the depth of feeling made so palpable by many of my constituents about the threat to their postal service, I think the Co-op may well succeed in scoring an own goal. Many Burncross residents are saying that they will never forgive the Co-op for, as they see it, taking away their post office. I warn the Co-op now that when Sheffielders decide they are going to dig their heels in, they really dig their heels in. My constituents feel neglected by movements beyond their control: an owner of a property who sees an opportunity to increase profits by redeveloping the premises; a leaseholder in the form of Costcutter not wanting to pay the extra rent that will no doubt be due because of the redevelopment, which is fair enough; and a new leaseholder who intends to use the extra space for what it sees as more profitable purposes, no doubt in part to service the extra rental charges due on the redeveloped store.

The real tragedy of all this, however, is that the customers of Costcutter and the old post office were satisfied with the store that was there. It provided all the services the local community wanted. Now they have lost perhaps some of their most cherished services—the collection of their hard-earned pensions being one of them—in the pursuit of higher profit margins.

To bring my remarks to a close, I appreciate entirely that the Minister will probably say that these are commercial decisions and there is therefore very little she can do, but I am not sure we should just settle for that. My constituents stand to lose permanently what they know to be a vital service—not for the normal reasons of the service not being sustainable, but because a business does not want to allocate space for it since it sees a better opportunity for the use of that space. In such circumstances, surely there should be a role for Government, national or local, to intervene. Ideally, the Government need to be able to act as brokers, incentivising partnerships between organisations to secure the amenities that communities such as Burncross so desperately need. In this instance, of course, it would be something as simple as a post office counter in a grocery store—the very provision that we have often decided is the most sustainable way to make sure that postal services continue to be delivered in a given area.

Can I ask the Minister, therefore, if she will review how concessions, such as those found in supermarkets, are awarded? Can she examine what help Government can give to make sure postal services are provided in circumstances such as those in Burncross? Given that postal services often and increasingly have to compete for space alongside other uses, how can public authorities, working with the Post Office, make sure the public good element of postal services is taken into account when commercial retail decisions are made? My constituents are losing their postal services and cannot possibly be expected to access alternative post office outlets easily, given the distance involved and the particularly hilly nature of the area—and that is particularly the case for the elderly population. Surely Parliament and the Government should be about giving a voice and a say in society to such people, giving the voiceless a voice. I hope the Minister takes note of that in her responses.

Although the circumstances of Burncross losing its post office are local and not that important to the rest of the world, similar stories are being played out across the country, with profit being put before the public good. It is only when those are added together that they start to look like something more important, and then often it is too late for us politicians to do something. Today it might be a community post office in Burncross that loses out; tomorrow it will be another one in another constituency, until eventually the network starts to look like a pale shadow of its former self. Then it will be too late. I look forward to the Minister’s response.

Retail Energy

Jim Shannon Excerpts

Thursday 12th October 2017 Commons Chamber

[Greg Clark]

My hon. Friend makes a good point. One of Ofgem’s responsibilities is to stop the erection of barriers to switching. It seems to me, however, that it is not unreasonable for consumers to expect to be able to trust a particular brand—a particular supplier—rather than having to change their arrangements frequently, and to be confident that they will not suffer a huge penalty as a result.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State for his statement. I am not a Marxist, but everyone in the Chamber must see that this is common sense.

When the energy price cap comes into effect, what safeguards will be introduced to ensure that the big six do not switch customers to a tariff that is, in effect, a standard variable tariff under a different name?

[Greg Clark]

The hon. Gentleman makes an excellent point, and he will see when he looks at the Bill that there is precisely a requirement that these abusive standard variable tariffs cannot be replaced by something with just a different name.

University Vice-Chancellors: Pay

Jim Shannon Excerpts

Wednesday 11th October 2017 Commons Chamber

[Dr Murrison]

Yes, up to a point. If my right hon. Friend will allow me, I will come on to performance-related pay later in my remarks, which I have a little over two hours to make.

[Jim Shannon (Strangford) (DUP)]

I spoke to the hon. Gentleman about this matter earlier today at the Northern Ireland Affairs Committee. The Government have advised that they will deal with fat cats in the boardroom, but little has been done on this issue, which is why this debate is appropriate and necessary. At Queen’s University in Belfast, the vice-chancellor’s wage rose from £230,000 to £249,000 in 2014, but the university does excellent work and has partnerships involving medical research and discovering new drugs. That figure pales into insignificance when one discovers that the vice-chancellor of the University of Huddersfield earned £364,564 in the financial year to 2016. Is it not time to address that?

[Dr Murrison]

The hon. Gentleman is obviously correct. That is why I am bringing this matter to the Floor of the House. There is an issue with Governments seeking to control pay in that way in the private sector, but not in the public and quasi-public sectors, where things are quite different due to the large sums of public money. It is perfectly legitimate for this place and for Ministers to be involved in some of that, certainly in setting the right environment for the determination of pay settlements. We will be in an unhappy, uncomfortable place if we continue to see the escalation of recent years.

Royal Mail Delivery Office Closures

Jim Shannon Excerpts

Wednesday 11th October 2017 Westminster Hall

[Helen Hayes]

It is precisely my argument that Royal Mail needs to compete on quality, not simply seek to reduce its costs to survive in the competitive environment it finds itself in.

The impact is similar in East Dulwich, where residents will have to travel to Peckham to collect their post, to a delivery office that is not easy to find and which has no dedicated parking. In East Dulwich, it is accepted by staff that the current delivery office building is not fit for purpose, but that is only because of the immense growth in parcel deliveries at that location, which means that the workload has outgrown the site. That is only an argument for finding new premises in the SE22 postcode area, not an argument for forcing residents to travel longer distances to collect their mail.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Lady on bringing a very important issue to the House. I apologise that I will have to leave early—I have already apologised to the Chair and Minister. The hon. Lady refers to parcel services. A large number of constituents do not have access to the internet or computers or may not be computer literate. Therefore, when it comes to arranging delivery, they cannot use the alternatives of parcel lockers or click and collect. Does she feel that Royal Mail has not been fair to its bread-and-butter customers who have kept it going all these years?

[Helen Hayes]

The hon. Gentleman’s point is well made. I will come on to data that clearly prove that it is the overwhelming preference of customers to have parcels delivered to their home and not to any other location.

The much longer journeys will clearly be even more challenging for older people, disabled residents and those with very small children. As one of my constituents —a 77-year-old pensioner who cares full-time for her disabled adult daughter—has described in a letter to Moya Greene,

“this journey would be exhausting but since I do not drive and I am unable to afford a taxi, there would be no alternative to it.”

Royal Mail has argued that a need for modernisation is driving the changes, but when I visited the West Norwood delivery office during the very busy Christmas peak period it was clear that it is a modern, efficient working environment. The staff are dedicated and hard-working, and they provide an excellent service to their customers.