UK Decarbonisation and Carbon Capture and Storage

Jim Shannon Excerpts

Tuesday 24th January 2017 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in the debate. I congratulate the hon. Member for Coatbridge, Chryston and Bellshill (Philip Boswell) on raising the issue. I may have a slightly different opinion from my dear friend and colleague, my hon. Friend the Member for East Antrim (Sammy Wilson).

[Sammy Wilson]

Maybe I should not have given my hon. Friend the time.

[Jim Shannon]

My hon. Friend may regret it, but it will not diminish our friendship in any way whatever. It is good to have a broad church of opinion within our party.

I will pose some questions because it is important to do so. Environmental issues are of great importance, so it is essential that our strategy is effective. I say to the Minister that I am not sure that we have managed to achieve all we could or should thus far. That is the question many have posed, including the hon. Member for Coatbridge, Chryston and Bellshill during his introduction.

It is opportune that we are having the debate on the back of the industrial strategy Green Paper announced by the Department for Business, Energy and Industrial Strategy yesterday. Many believe that the Department has not achieved value for money for its £100 million spend on the second competition for Government financial support for carbon capture and storage. Other hon. Members have said that there must be an investment to get a return, and that the return will justify the investment.

It is my understanding that CCS is a process to avoid the release of carbon dioxide into the atmosphere, and that it has the potential to help to meet the UK’s target for a reduction of CO₂ emissions in both the power and industrial sectors, which is commendable. We have pledged to cut 1991-level emissions by 57% by 2030. While that is a great goal, how will we achieve it? Hon. Members have outlined potential job creation and the opportunities that will come if it is done in the right way. To achieve the goal is most certainly a challenge, given the untried nature of the technology.

[Philip Boswell]

I point out to the hon. Gentleman that the technology is truly tried and tested. The curious scheme in Northern Ireland aside, I would urge both hon. Members from Northern Ireland, who are my friends, to read the Oxburgh report and contrast the less than £85 per KWh that is achievable under this system with the Hinkley Point strike price of £92.50. Furthermore, the networks already exist. That is the attraction of having an existing infrastructure.

[Jim Shannon]

I will respond to the hon. Gentleman’s intervention during my comments. The future costs for the duration of the CCS project are unknown, and perhaps the figures do not add up on all of the lines.

Two projects that were shortlisted for the CCS process both failed to meet the proposal goals. The work done centrally by the Department in sustaining negotiations for the second competition for the project with its preferred bidders must be noted—a process is in place. The hon. Member for Coatbridge, Chryston and Bellshill has clearly outlined some of the evidence, and I will pose some questions on that. I can clearly say that I support the principle of what we are trying to achieve, but I wonder whether it can be achieved by that process. There are lessons to be learned, and hopefully valuable commercial knowledge and technical understanding of how to deploy the competition projects will have been gained, as he said. If we have that information, let us see how we can use it to further the project.

There are currently no examples of large-scale CCS projects in the UK, and only 16 operational projects worldwide. BEIS should maximize its expertise for future CCS strategies and put into practice the lessons it has learned—in other words, the evidence should be used for the betterment of delivering such projects. If and when CCS projects are self-sustaining and economically viable, we will see clean electricity from renewable sources, which we wish to see and are committed to trying to achieve. However, the sticking point is in the phrase “if and when”, meaning we could achieve those things “if and when” the Government and BEIS find a happy medium and the in-between. Hon. Members are often tasked with finding a balanced in-between or the correct way forward.

The substantial future benefit of the CCS process is to avoid the release of CO₂, as several hon. Members have indicated. However, it is clear that there are serious problems and critical issues with such projects that we cannot ignore. As I have discussed, there are no large-scale examples of long-term storage projects in the UK, despite a series of UK Government and EU initiatives aimed at incentivising their development. It has been argued that CCS technology is too expensive to be commercially viable for private developers without Government support in the shape of a strike price. Government involvement is critical in taking this forward.

I am aware of the work carried out by the parliamentary advisory group on carbon capture and storage, which found that good design could make CCS affordable. However, I have reservations about the cost of CCS competitions to the taxpayer.

[Sammy Wilson]

Does my hon. Friend agree that a high strike price will be paid for out of the pockets of every one of his constituents who consumes electricity? That is the big problem with schemes of this nature, for which there is a move away from cheap fossil fuels to dear renewable sources.

[Jim Shannon]

The Minister will take note of my hon. Friend’s comments and am sure will respond later.

We have seen not one but two failed voyages into the unknown of CCS projects, for which we have spent £168 million with no further resolutions and only lessons learned. We do not want this to be like the Mary Celeste— setting sail, getting nowhere and disappearing. It is my understanding that the cancelling of the second competition will impact on investors’ confidence, who in future may demand better conditions before engaging with the Government again, which will prove detrimental to the cost-effectiveness of future projects.

We do not want this to harm the future and where we are going. I feel strongly that both the Government and BEIS need success guaranteed in both financial and environmental areas before embarking on such voyages in the future, and as such I believe that every consideration must be given to how this particular project will help us to achieve our goals, and indeed whether it can do so.

Exiting the EU: Science and Research

Jim Shannon Excerpts

Monday 19th December 2016 Commons Chamber

[Danny Kinahan]

I’m not a Brexiteer.

[Jim Shannon (Strangford) (DUP)]

I’m one.

[Liz McInnes]

You’ll get your chance.

Looking at British science, it is well known that Britain punches well above its weight in the international university league tables. It does so mainly thanks to EU grants. It is not awash with funding, and in fact has the lowest per capita spending on research of any G7 country.

The referendum outcome has led to uncertainty about its implications for the higher education sector. It is easy to trot out the phrase “Brexit means Brexit”, but, as ever, the devil is in the detail and, for the sake of the future of science and research in this country, that detail cannot be glossed over in a soundbite. There are two aspects of the human and intellectual cost of Brexit for universities. The first is the potential for another brain drain. The second is the potential restrictions on overseas research students.

I say another brain drain as it sadly would be nothing new. Many senior figures in British universities remember the lack of support from the Thatcher Government in the ’80s and the exodus of scientists abroad. It is ironic that the four British Nobel prize winners this year, Duncan Haldane, David Thouless, Michael Kosterlitz and Sir Fraser Stoddart, are all based in the US, having been forced out during the 1980s brain drain. British research scientists are worried that the Prime Minister’s mantra of “Brexit means Brexit” will lead to a lack of funding and grants for British science and the potential for a modern-day brain drain.

Added to that is the potential for UK universities to become less attractive to international research students. The vice-chancellors of the London School of Economics, King’s College, London, and Bristol have already voiced their fears about recruitment of international students, and the serious potential financial and human resource consequences for our universities.

The vice-chancellor of Cambridge University, Professor Sir Leszek Borysiewicz, is a stalwart remainer, but in common with many who voted to remain, he is a pragmatist and wants Cambridge to get the best out of Brexit. He says that to achieve this the Government must provide some basic clarity on what exactly Brexit means. He is asking for three things from the Government: clarity on the national status of university staff; a recognition of the collaborative ideal implicit in EU projects; and a Government guarantee of vital university budgets.

I hope the vice-chancellor’s requests will be heeded by the Government. He is, after all, what some might regard as something of an expert. Although the people of this country were urged not to listen to experts during the referendum, on this subject, and indeed on many others affected by the Brexit negotiations, it is absolutely vital that the Government pay heed to our finest minds. They are not asking for a running commentary; they are asking for clarity and a coherent, informed plan as to the exact nature and manner of our departure from the EU. The EU makes substantial financial contributions to research in UK universities. Research funding from the EU amounts to around £l billion per year, while our own national research budget is below international averages.

I represent a Greater Manchester constituency and universities across our region have more than 4,000 EU students currently on campuses. That equates to spending of £90 million per year not just on tuition fees, but on expenditure in the local economy. Manchester University, which is 29th in the world’s top 100 universities, received £48 million in research funding in the past two years alone. The loss of such substantial funding and a failure to attract EU students could not fail to have a detrimental effect on our area. I cannot lay claim to a connection with Mr Higgs, but in a recent interview on the effect of Brexit one of Manchester University’s most famous academics, Professor Brian Cox—who, like me, was born in Oldham—said:

“The central issue for science is that it’s a global pursuit. I work at the Hadron Collider at CERN in Geneva. That’s a global project. The thing scientists and universities are most worried about is movement of people around the world. We need to say this is a country where you’re welcome to live and study and do science. But at the moment, the image we’re representing to Europe and the rest of the world isn’t the right one.”

[Jim Shannon (Strangford) (DUP)]

I am very pleased to be able to speak in this debate. As a health spokesperson, I take a great interest in medical research and I am intensely proud of our universities in Northern Ireland, which are top in their field of medical research. I am also very happy to follow the hon. Member for Heywood and Middleton (Liz McInnes).

I always, unashamedly, go out to bat for Northern Ireland and Strangford, and I will do so today. As a Brexiteer—one who voted to leave and was very proud that the people of the United Kingdom and my constituency also made that decision—I see an opportunity. The Centre for Cancer Research and Cell Biology at Queen’s University Belfast is a cross-faculty, interdisciplinary research centre with over 300 clinical and basic researchers from across the world. It achieves the highest quality of research excellence. Research in the institute extends from population studies of cancer etiology, through tumour biology and clinical trials, to outcomes and health services research. The institute is committed to fostering transdisciplinary investigation of areas of cancer control that lie at the interface between fundamental, clinical and population research. The three are currently populated by approximately 250 faculty, graduate and post-doctoral trainees and support staff. Opportunities for graduate and post-doctoral training are offered in partnership with several departments at the university, including: biomedical, anatomy and cell biology, biochemistry, microbiology, immunology, pharmacology and toxicology, community health and epidemiology, mathematics and statistics, oncology, pathology and medicine, and Queen’s school of policy studies. All that is done with expertise at Queen’s University. The institute is supported by the Terry Fox Foundation, in partnership with the Canadian Institutes of Health Research.

This high level of research needs a highly qualified and specialised skill set. It is clear that in leaving the EU we need to ensure that that skill set is protected and that our universities are able to continue their priceless work. I support the recent call by the president of the Royal Society in the Financial Times to ensure that we continue to build on our position as a world leader in science and innovation. We are doing that in Northern Ireland, and we want to continue to do that. We are looking to the Government simply to make sure that that happens. I have every faith that the Brexit team understands the necessity of the arrangements that need to be put in place to ensure that this knowledge and skill share can and will take place. I see the Minister nodding in appreciation, and I am sure that it will be confirmed further in a few moments when he rises to speak.

It is clear that UK research benefits from the immigration of top foreign researchers to the UK. These include several Nobel prize winners, so we must have in place the ability to ensure that they are able to live and work here for the benefit of the UK and our scientific and research industry. As the President of the Royal Society has said:

“Today, 30% of our academic research staff are from abroad and a third of UK start-ups were founded by non-UK nationals. We are second only to the US as a destination for global talent. Their presence ensures that we remain first-rate, and importantly, produces a first-rate environment for training home-grown talent. Losing them would be a disaster for our economy. We need to take immediate steps to reassure those who are here that they remain welcome.”

And they are welcome; we want them to stay. I hope the Minister will say this very clearly in few moments. The role played by foreign scientists and graduates must not be overlooked or underestimated. They are an essential component in the cog of our industry, and I am taking the opportunity to underline that fact and put it on the record in this Chamber today.

In 2015, over half of the UK’s research output was the result of an international collaboration, and these collaborations are increasing. The European Research Council, which is part of Horizon 2020 and funds frontier research purely on the basis of scientific excellence, has established a very strong international reputation. In Queen’s University, we have international partnerships with companies and businesses, with other universities across the United Kingdom of Great Britain and Northern Ireland and indeed across the world—all coming together to bring the needed scientific excellence right there at Queen’s University in Belfast in Northern Ireland. Although this funding stream does not require international collaboration, 58% of papers with ERC funding have co-authors who are based in other countries.

Collaboration enhances the quality of scientific research, improves the efficiency and effectiveness of that research and is increasingly necessary, as the scale of both budgets and research challenges grow. I am sure that in his response, the Minister will confirm that the collaboration that already takes place will continue post-Brexit and into the future. The primary driver of most collaboration, however, is the scientists themselves. In developing their research and finding answers, scientists are seeking to work with the best people, best institutions and best equipment that complement their research, wherever they may be. It just happens that most of those good people are in Belfast at Queen’s University.

This collaboration must be maintained and enhanced, which brings me back to my foundation point about Brexit: this is an opportunity to put in place mutually beneficial co-operation between countries that we must make the most of. I believe we have an opportunity to do just that. We work better as a team, and Brexit must take the opportunity to put in place the rules that enhance the games and bring the best results. I have every confidence in the Brexit Minister and his team here in this great nation of the United Kingdom of Great Britain and Northern Ireland—we are better together!

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Robin Walker)]

It is always a pleasure to follow the hon. Member for Sheffield Central (Paul Blomfield). First, I should like to echo his comments about the appalling loss of life in Berlin. I am sure that the whole House will join us in expressing solidarity with and sympathy for the victims. Our thoughts and prayers are with the families affected, and we should stand shoulder to shoulder with Germany and our European allies and partners after a terrible incident of this sort.

This has been an excellent debate and I would like to thank all hon. Members who have contributed, particularly the hon. Member for Richmond Park (Sarah Olney), who made an accomplished maiden speech and who spoke about Parliament bringing people together after the referendum. I agree that it is the responsibility of all of us to aim to do that. This has been the third in the series of debates on important issues arising in the context of the UK’s withdrawal from the European Union that was promised by the Secretary of State for Exiting the European Union, my right hon. Friend the Member for Haltemprice and Howden (Mr Davis). I would like to note how fruitful my ministerial colleagues and I have found these debates. I am also glad that the hon. Member for Sheffield Central has enjoyed them so much. I had the very first debate in Westminster Hall when the House returned after the summer recess, and it is a delight to conclude this term with the last major Government debate in the main Chamber.

The UK’s global status as a science and research superpower is fundamental to our wider economic competitiveness. The hon. Member for Newcastle upon Tyne Central (Chi Onwurah) described it as the engine of prosperity. This Government want the UK to be the go-to place for innovators and investors across the world, and we intend to secure the right outcome for the UK research base as we exit the European Union. This debate has highlighted some of the issues that we know we will have to consider as we negotiate to leave the EU, but retaining and building on our science and research base is a top priority that is shared by right hon. and hon. Members on both sides of the House, as we have seen today.

Before I begin to respond to some of the helpful points raised by Members, I would like to take time to point to the action that the Government have already taken to secure our place in the world of research and science.

The Government are determined to ensure that all relevant views from stakeholders are reflected in our analysis of the options for the UK’s withdrawal from the EU. We are conducting a range of meetings with stakeholders to build national consensus around our negotiating position. This includes a wide programme of engagement within the Department to ensure that the views of the research and science sectors are heard. I should like to reassure the hon. Member for Heywood and Middleton (Liz McInnes) that we are, in fact, listening to experts.

My ministerial colleagues and I have met a number of higher education institutions and groups, including Universities UK, the National Academies, the Russell Group and the Universities of Swansea, Reading, Ulster and Strathclyde, to name but a few. Just last week, I attended the new stakeholder working group on EU exit, universities, research and innovation, hosted by the Minister for Universities, Science, Research and Innovation, my hon. Friend the Member for Orpington (Joseph Johnson). The sector strongly supports our ambition to create an environment in which the UK as a whole can continue to be a world leader in research, science and the tertiary education sector.

We are also continuing to talk to representatives of the science and technology sectors. Between myself and ministerial colleagues, we have recently met Sir Mark Walport, the Government chief scientific adviser, as well as the presidents of the Royal Society and the Royal Academies and representatives from the life sciences, environment, chemicals, space and tech sectors. I want to reassure the hon. Member for Cambridge (Daniel Zeichner), who spoke passionately about data, that the digital sector has advocated a strong position on the freedom of movement of data.

I have also enjoyed giving evidence to the Select Committee chaired by my hon. Friend the Member for South Basildon and East Thurrock (Stephen Metcalfe), and I welcome the report, to which the Government will respond in full at a later date. To answer a point raised by him and by my hon. Friend the Member for Twickenham (Dr Mathias), I point out that we are working closely with the Government’s chief scientific adviser and the Government Office for Science to ensure that we have access to the expertise that we need. I recently visited Surrey Satellites in Guildford to see at first hand the levels of innovation in the UK space industry, which the science Minister was right to praise in his opening speech. We will continue to meet such stakeholders in the coming months.

The Government have already taken action on some of the concerns raised by such groups. The Treasury will underwrite all successful bids for Horizon 2020 that are approved by the European Commission, even when specific projects continue beyond our departure from the EU, giving British participants and their EU partners the assurance and certainty needed to plan ahead for projects that can run over many years. The Treasury guarantee sends a clear message to UK businesses and universities that they should continue to bid for competitive EU funding while we remain a member of the EU. My right hon. Friend the Member for Loughborough (Nicky Morgan), with whom it was such a pleasure to work during her time as Education Secretary, gave an important example of where restored funding was a direct result of the guarantee. It will help ensure that the UK continues to be a world leader in international research and innovation.

We have provided further assurance to universities by confirming that existing EU students and those starting courses in 2016-17 and 2017-18 will continue to be eligible for student loans and home fee status for the duration of their courses. We recently extended that assurance to postgraduate support through research council studentships, which will remain open to EU students starting courses in the 2017-18 academic year. The funding support will cover the duration of their course, even if the course concludes after the UK has left the EU. As the Science Minister said earlier, we will decide the policy for the 2018-19 academic year in good time for applications.

The hon. Member for Sheffield Central and his Front-Bench colleague, the hon. Member for Newcastle upon Tyne Central, challenged the Government on our science funding, but at a time of tight control over overall public spending it is significant that the Government were able to protect the science budget, with a total investment of £26 billion between 2016-17 and 2020-21. We have been going even further to support a healthy science and technology ecosystem in this country. The Government recently committed to substantial real-terms increases in Government investment in R and D, rising to an extra £2 billion a year by 2020-21, to help put Britain at the cutting edge of science and technology. I join my hon. Friend the Member for South Basildon and East Thurrock, who is Chair of the Science and Technology Committee, and my hon. Friend the Member for Macclesfield (David Rutley) in welcoming that.

A new industrial strategy challenge fund will direct some investment to scientific research and the development of a number of priority technologies in particular, helping to address Britain’s historic weakness in commercialisation and turning our world-leading research into long-term success. To realise the full economic potential of new technologies, we have also announced a review of the support for organisations undertaking research through the tax system, looking at the global competitiveness of the UK offer. The Treasury will look at whether we can make this support even more effective to ensure that the UK continues to encourage innovation actively. Ultimately, we need to ensure that our world-beating science and research base maintains global research excellence in our institutions, innovation in our businesses, and strong local economies across the UK.

It was striking to hear hon. Members from both sides of the House, such as my hon. Friends the Members for Plymouth, Sutton and Devonport (Oliver Colvile) and for Canterbury (Mr Brazier), my right hon. Friend the Member for Loughborough, and the hon. Members for Bradford South (Judith Cummins), for Bristol West (Thangam Debbonaire) and for South Antrim (Danny Kinahan), speak passionately about the benefits that science, universities and research bring to their constituencies. While we can be confident that our fundamentals are strong, we need fully to evaluate the consequences, challenges and opportunities to UK science and innovation of leaving the EU. That will take time, and I am grateful for the support and challenge that we have received from this House and from a wide range of informed sources.

I see continued confidence in the UK as a natural home for and world leader in science and innovation. Since the referendum, for example, we have welcomed many hundreds of millions of pounds of new investment in the life sciences and pharmaceuticals sector from Alnylam, GSK and AstraZeneca, as mentioned by my hon. Friend the Member for Macclesfield; an £80 million investment in space technology from Seraphim Capital; and important job announcements from Google, Facebook, Microsoft, and IBM, which will build four new data centres here in the UK. A recent survey by the CBI shows that 70% of businesses plan to increase or maintain their innovation spending following the vote to leave the EU. Only 7% plan to reduce their investment. The UK has always been one of the most innovative nations on the face of the earth, and I am certain that it will remain so.

I will now respond to some of the helpful points raised by hon. Members from across the House. We have covered a wide range of topics today, so I want to try to summarise the comments made and what I have learned across three key areas: funding, people, and collaboration.

As my hon. Friend the Minister for Universities, Science, Research and Innovation and I have both already set out, UK businesses should continue to bid for competitive EU funds while we remain a member of the EU, and we will work with the Commission to ensure payment when funds are awarded. The Treasury will underwrite the payment of such successful awards, even when specific projects continue beyond the UK’s departure from the EU. The Government have also reassured organisations that structural and investment fund projects signed before the UK withdraws from the EU will be guaranteed by the Treasury after we leave, up to 2020.[Official Report, 9 January 2017, Vol. 619, c. 2MC.] These projects will have to provide strong value-for-money evidence and be in line with UK strategic priorities. We have heard submissions from across the House on the future relationship with Horizon 2020, and it is too early to speculate on the detail of our future relationship with that and its successor programmes. The UK Government are committed to ensuring that we remain a world leader in research and innovation.

The views expressed in the House today, including by many who campaigned to leave, such as my right hon. Friend the Member for Hitchin and Harpenden (Mr Lilley), my hon. Friend the Member for Canterbury and the hon. Member for Strangford (Jim Shannon), have echoed what we have been hearing from stakeholders on the importance of research mobility. We are carefully considering the impact of this across the sector, but our ambition is to create an immigration system that allows us to control numbers, and encourage the brightest and the best to come to this country.

[Jim Shannon]

May I invite the Minister to visit Queen’s University Belfast? That would encourage people there, it would be a chance to show businesses what we are doing and it would allow the partnerships at Queen’s University to grow even more.

[Mr Walker]

I would be delighted to accept the hon. Gentleman’s invitation. I have already visited one university in Northern Ireland, but I would be delighted to visit another, as soon as the opportunity arises.

There has been no change to the rights and status of EU nationals in the UK, or of British citizens in the EU, as an immediate result of the referendum. The Prime Minister has been clear that during negotiations she wants to protect the status of EU nationals already living here, and the only circumstances in which that would not be possible are if British citizens’ rights in European member states were not protected in return. I was glad to hear her repeat in her statement today her desire to see such a deal come early. Looking to the future, I will repeat again what my Secretary of State has said before:

“We will always welcome those with the skills, the drive and the expertise to make our nation better still. If we are to win in the global marketplace, we must win the global battle for talent. Britain has always been one of the most tolerant and welcoming places on the face of the earth. It must and it will remain so.”

Corporate Governance and Social Responsibility

Jim Shannon Excerpts

Wednesday 14th December 2016 Commons Chamber

[Louise Haigh (Sheffield, Heeley) (Lab)]

I thank you, Mr Deputy Speaker, for allowing time to debate this issue of critical importance today.

Having worked in corporate governance before I was elected, I am well accustomed to the fact that it is not a subject that excites or even particularly interests many people. I completely accept that, and it is demonstrated by how rarely it is raised or debated in this House. However, it is utterly fundamental to the workings of our economy and to how wealth is distributed across the country. What it essentially boils down to is this one key question: who does our economy work for?

In a year of global convulsions, that is a question being asked in unlikely quarters. When Mark Carney made his significant intervention, warning of “staggering inequalities” in an economy where many “lack a stake”, some voices said that he had strayed too far from his brief. Not only was his intervention appropriate, it was absolutely urgent, because while 75 companies on the FTSE 100 collectively made a profit of £32 billion last year, most ordinary people’s wages are predicted to flatline well into a second lost decade. That makes people justifiably angry and society less robust.

In is in that context that the Prime Minister’s corporate governance agenda should be seen, and although it was welcome that the Secretary of State for Business, Energy and Industrial Strategy should introduce proposals for reform, I am afraid that the signals are not good. The Prime Minister floated worker representation on boards on her first day in office, but then informed the CBI that that would be voluntary. In a statement to the House, the Secretary of State lauded his own success in bringing down average pay for chief executive officers from £4.3 million to £4.25 million—I am afraid that that is hardly a job well done.

I know first-hand the enormous creative potential that a well-functioning company, backed by a strong governance regime, can unleash. Unlike the Government, who appear to have stepped back from desperately needed reform, I know that the status quo cannot continue. It represents grotesque pay ratios between the top and the bottom, and astronomical executive pay. We have seen the corporate greed of BHS, Sports Direct, Gunstones, ASOS and JD Sports, which treat their low-paid workforce with little more than contempt; the behaviour of energy companies quick to hike prices to maximise profits, but slow to lower them when the market shifts; and the short-termism that has resulted in productivity flatlining and investment being stifled as directors seek to maximise shareholder value at the cost of everything else.

That is nothing short of a crisis of legitimacy in the shareholder model, because confidence is placed in shareholders that, in my experience, is undeserved and misunderstands the completely altered nature of shareholders in UK plc. Although I welcome the Green Paper, I fear that it clings to a model that belongs firmly in the last century. We are not dealing with the shareholders of 30 years ago, who had a stake in the UK and held shares for a significant period. In 1998, just a third of shares were owned by non-UK investors, but now the vast majority are owned by such investors. In fact, it is almost absurd to talk about shareholders as investors, as most do not hold the shares for long—some hold them for just seconds. The figures are contested, but the most reliable ones that I have seen suggest that the average holding period has fallen from eight years in the 1960s to just four months, and as much as 70% of trades are high frequency.

The equity chain is grossly over-intermediated, meaning that those with skin in the game have little or no involvement in the company at the other end of the chain. Investors tend to own only about 3% of a company at any given time. The notion that that fragmented group will clamp down on executive remuneration, or is interested in the voice of workers or the long-term contribution of the company to the communities that it serves, is either naive or disingenuous.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Lady for giving way in a speech on an important issue. Does she agree that the Government’s social responsibility does not lie simply in assessing how much GDP goes on benefits? It should be a living, breathing policy that takes account of the changing needs of the communities that the hon. Lady has discussed, rather than a document that is assessed at Budget time. Does she further agree that the previous Government’s big society ideal was never given the resources that it should have been given to take off? That should be considered and, indeed, reviewed.

[Louise Haigh]

I completely agree with those sentiments. Corporate responsibility is too often tacked on at the end of a company’s activities, in a completely separate report. It is not embedded throughout the organisation as it should be, which is why a strong, effective governance regime is vital to ensure that companies respect the communities in which they operate, the environment and their social impact.

At ASOS, despite the shocking evidence with which it was presented of mistreatment of its workforce, investors went ahead and backed the bumper pay package for executives. Why rock the boat when investors are getting their return? Since advisory votes on executive pay came into force, CEO pay has continued to climb to obscene levels, and the average vote in favour of remuneration packages has been a shocking 93%. The Kay review, commissioned by the coalition Government, which presented a fantastic analysis of the issues but fell disappointingly short on recommendations, said that

“the pursuit of shareholder value has distorted corporate principles”.

Rather than push against that open door, the Government seem intent on clinging to an outdated and inappropriate model that puts the interests of international shareholders above all else—above the interests of the workforce, of stakeholders, of supply chains and of the wider community. It does not make economic sense and it is deeply unpatriotic.

Yes, the shares in UK plc may rise and international investors will have their red letter day. What good is that if workers and communities here in this country do not feel the benefit? The Government cling to a model that says that hedge funds on Wall Street are more important, and should have a greater say over the direction of a UK company, than the workers whose mortgages, pensions and livelihoods are dependent on the success of that business. Rather than having a stake in the community, investors are increasingly coming to resemble buy-to-let landlords, skimming off profits with little interest in the community at large, yet they hold all the cards.

As the Bank of England’s Andy Haldane has said, if shareholders hold all the power,

“we might expect high distribution of profits to this cohort, at the expense of ploughing back these profits…or distributing them to workers”.

That is exactly what we have seen. Wealth for the 1% has grown unchecked while wages for the rest have stagnated.

It is not without reason that research and development spend in countries like our own is so low when the focus of investors and directors alike is on maximising the value of shares. That is why we need change. Our companies must look closer to home and above all to their employees, their supply chains and their communities, and give the people they rely on a stake. British workers create the wealth, the services and the products from which shareholders earn their reward. We should give them real influence in the businesses that they work for. We must modernise company law to correct the absurdity that denies employees a say but gives power to hedge funds.

If we give powerful voting rights to overseas investors who speculate in the shares of our major employers, it is right to give the programmer, the secretary, the driver or the picker who works for those businesses some power too. It is not about one or the other. It is about giving employees an equal stake. Having grappled with these issues in practice myself, I know that the big issue is that the more directors are accountable to increasingly anonymous investors, the more our top businesses end up being accountable to no one at all.

Preparing for today’s debate, I was reminded that Keynes wrote that bad ideas die slowly. He also wrote:

“Practical men who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist.”

I am not pretending that reform in this area is easy. If we are honest, the reforms to fiduciary duties by the last Labour Government have had little impact, given that conservative legal advice invariably prejudices short-term shareholder interests. That is why transparency has to be at the heart of any reform. Large companies should report qualitatively on their impact on their communities, their environment and their workers, in the interest not merely of corporate accountability but of good management.

Reforms to section 172 of the Companies Act 2006 will inevitably be an important part of that. The Financial Reporting Council made the point that more focused reporting on exactly how companies are complying with the various elements of section 172 is crucial. That may very well have to become a requirement, as surveys suggests that a large number of shareholders are not aware of the very section on which it is their duty to hold directors to account.

Today Mark Carney supported better reporting on climate change risk, which is undeniably material for a growing number of sectors. However, I have real concerns about how effective section 172 is. After all, it was introduced back in 2006 and since then we have seen some extreme examples of corporate excess and recklessness that have brought the economy to its knees and led to a bail-out of such astonishing proportions that we will still be paying for it for decades to come. Section 172 has been in force for more than 10 years, and in that time a director has had to have regard to the interests of the company’s employees, the impact of the company’s operations on the community and the environment, and the desirability of the company maintaining a reputation for high standards of business conduct. It would be almost laughable if it were not such a desperate example of the corporate neglect which has maligned this country for decades.

Throughout that time we have lacked a regulator with teeth, yet still the FRC says that it should be incumbent on shareholders to enforce the provisions of section 172. The fact that the FRC is only now commencing its investigation into KPMG’s audit of HBOS, some nine years after the collapse and bail-out, should tell us all we need to know. There is a serious problem with the enforcement of our corporate governance regime. The Government need to go much further if they want to see meaningful change. I am not convinced by the argument that we should leave such a crucial aspect of company law to shareholders who have so consistently demonstrated little interest in it and an authority seemingly unwilling to take action.

In its current definition, the duty to promote the success of the company under section 172 is seen as serving shareholder interest. As John Kay found in his review of equity markets, with share trading playing an increasingly important role in the strategy of investors, it is not at all clear how short-term investors can support the long-term good of companies. The long-term success of a company must therefore be codified in changes to section 172.

Changes in the legal duties of directors to prioritise the long-term success of the company at large over shareholders would be a significant shift, but it is one that many voices that previously advocated only minimal change are now calling for. Employees having a statutory role at board level must also be a line in the sand. The Government must not row back on giving workers an equal stake and, with it, bringing their different priorities and fresh perspective to the boardroom. Diversity is vital in governance terms—not for moral or representative reasons, but to challenge and address what Margaret Heffernan has termed “wilful blindness”.

With that in mind, I would like to ask the Minister what proposals she has discussed and considered. Much has been said about introducing a statutory role, with a third of the board being drawn from workers, whose representatives would themselves be elected. Has the Minister considered those specific proposals? What assessment has she made of the quality of reporting on environmental, social and governance issues and the impact it has had on internalising costs? Has the Minister considered the need for advisory panels to sit alongside the board, which would draw from those directly referred to in section 172, bringing a much-needed voice to directors’ responsibilities under that section?

Surely the long-term goal has to be allowing other stakeholders an equal stake in holding the board and directors to account. The Government simply cannot afford to row back on that reform. At the heart of it is the crisis that Carney referred to: people lack a stake, and they cannot see a way to exert influence.

When I was working in the City of London, the risk taking, bonuses and pay packets were viewed as the symbol of the corporate neglect that has done so much to shake trust in big business and that played its part in bringing our economy to its knees. No doubt those things were and still are grotesque, unchecked by shareholder power and in need of urgent reform. There is a crisis of legitimacy over who governs our companies and, in turn, whose interests they act in. The Government would be wise to seize that with both hands, because we cannot ignore it any longer.

Tidal Lagoons and UK Energy Strategy

Jim Shannon Excerpts

Tuesday 6th December 2016 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to serve under your chairmanship for the first time, Mr Paisley. It is good to have a colleague in the Chair. I also thank the right hon. Member for Preseli Pembrokeshire (Stephen Crabb) for presenting such a good case.

Strangford lough in my constituency is one of the most beautiful loughs in the whole world. I defy any Member of this House to come and have a coffee and a delicious scone in Harrisons of Greyabbey, sit on the veranda looking over the lough and argue that the view could be beaten. I would argue that the view could never, ever be beaten. Not only is Strangford lough the most beautiful, but it has the potential for so much energy production. Indeed, we were proud to trial the world’s first tidal current energy turbine, the SeaGen. Tidal power is an important part of any renewable energy plan as it is a guaranteed source of power and, unlike wind power, can be relied on every day. Generating electricity from two massive underwater propellers, the SeaGen was lowered into place in 2008 and bolted to the seabed in one of the world’s fastest tidal currents.

Strangford lough is one of Europe’s most protected areas, providing unique habitats for marine and bird life. It is a Ramsar area and also an area of special scientific interest. The location was chosen for the turbine project because it offered sheltered waters close to shore, but still exposed the generating device to the full rigours of the tides. The pull of the waters of the Narrows in Portaferry and Strangford is significant and in the early stages some of the blades were damaged. SeaGen generated 1.2 MW: enough power for around 1,500 homes.

There were of course environmental aspects and questions. A study of the environmental impact of SeaGen will, I hope, open the door for other such projects. There had been fears that large marine mammals such as seals would be hit by the propellers. We have a good colony of seals in Strangford lough. The environmental monitoring report that gave the all-clear stated:

“There have been no changes in abundance of either seals or porpoises detected which can be attributed to SeaGen; seals and porpoises are continuing to swim past SeaGen, demonstrating a lack of any concern or hindrance.”

[David Simpson (Upper Bann) (DUP)]

Does my hon. Friend agree that, as the United Kingdom prepares to leave the European Union, it is essential that we get the energy strategy correct across the whole of the United Kingdom, so that we can offer companies a competitive spirit for business?

[Jim Shannon]

I thank my hon. Friend for that intervention. As a businessman, he focuses on the issues that we want the debate to focus on. The Minister will, I hope, respond to that.

The SeaGen project ended and was dismantled in January this year. The years of operation have opened the door for other such tests. There has been consideration of similar projects on a larger scale in other coastal areas, so the SeaGen project in Strangford lough has given the necessary information to the Department to use for further projects. Perhaps the Minister will give us some idea of how the SeaGen project can be used for the furtherment of other projects.

My opinion is clear: the less dependent we are on crude oil and its supply from other countries, and the more we can get from our own renewable resources, the better. I support such projects for that reason.

The levy control framework, established by the former Department of Energy and Climate Change and Her Majesty’s Treasury, set a cap for the forecast costs of certain policies funded through levies on energy companies and ultimately to be paid for by consumers. Since November 2012, the framework has covered three schemes to support investment in low-carbon energy generation: the renewables obligation, feed-in tariffs and contracts for difference. It sets annual caps on costs for each year to 2020-21, with a cap of £7.6 billion in 2020-21, in 2011-12 prices. According to the latest forecast, the schemes are expected to exceed the cap and will cost £8.7 billion by 2020-21. That is equivalent to £110—around 11%—on the typical household fuel energy bill in 2020. That is £17 more than if the schemes stayed within the cap.

I will conclude shortly. I understand other Members want to speak, so I will not take extra time. We need to do more, and projects such as SeaGen at Strangford lough are possibly the way to go as they also seek to address the environmental impact duty that we must stick by. The environmental reasons for renewable energy are clear and compelling. Although I am not someone who would ban the use of fossil fuel or nuclear reactors as needed, I do feel we should make the most of the great resources that we have in our tidal energy provision. I am anxious to see how we can develop that in Strangford lough and throughout the Province—indeed, across this great nation of the United Kingdom of Great Britain and Northern Ireland—so that we rely less on fossil fuels and other energy sources that are not on our doorstep.

--- Later in debate ---

[Jesse Norman]

That is a perfectly reasonable question. Historically, the expectation has always been that technologies have to demonstrate that they are capable of benefiting from support. Given that the distance in the range of cost is so high, a judgment has been made that that technology has not done so at the moment, but other technologies have succeeded in doing so.

Other colleagues raised issues such as the rate at which costs might fall with other lagoons, the degree to which different projects could inspire different learning, and the first mover advantages, all of which should be resolved and discussed in the context of the Hendry review.

[Jim Shannon]

In my contribution, I mentioned the SeaGen project in Strangford lough in Northern Ireland—a pilot scheme sponsored by the Government to get results in relation to the environment. Perhaps the Minister is going to tell us what the results of that pilot scheme are so that we have some idea of what we are doing now.

[Jesse Norman]

I am sorry to have given up time for that intervention, because I was coming to that point. SeaGen, as the hon. Gentleman recognises, was a research test bed, and it is being decommissioned now. It received a £10 million grant from the Department, and those conclusions are being carefully assessed. It is a project in which there has already been public investment. [Official Report, 14 December 2016, Vol. 618, c. 6MC.]

It is clear that we cannot allocate subsidies to every technology that asks for them. We have said that our focus will be on key technologies that have the potential to scale and deliver long-term cost savings, in which the UK has a comparative advantage and whose costs to consumers are acceptable.

Exiting the EU: Higher Education

Jim Shannon Excerpts

Wednesday 23rd November 2016 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I thank you, Mr Davies, for giving me the opportunity to speak on this issue. I also congratulate the hon. Member for Ealing Central and Acton (Dr Huq) on setting out the case very well. It is no secret that I was very much in the leave camp. [Interruption.] I am surrounded by many people who have a different opinion, but I still look upon them as my friends and colleagues, and that will not change, no matter what happens. I am proud to speak on this matter, because it is of some interest to many of my constituents, and I want to bring a Northern Ireland perspective to the debate. These are important issues, as the Minister and shadow Minister know.

I attended a grammar school, where I did my O-levels, but at that time it was clear that I would not continue to university. My father had a shop and that is where my intentions were and where they ended up, at the beginning at least. I did not enjoy academia as much as I enjoyed the jingle of cash in my pocket. When there was a chance of getting a job and moving on, that is what I thought I should do. I have a high regard for all those who prioritised education and for those who knew they were called to those vocational jobs that are so essential to all. Society could not function without a broad spectrum of people with skills to fill the jobs that need to be done.

The hon. Lady indicated that we have dropped to sixth in the world. I would be happy if the United Kingdom of Great Britain and Northern Ireland was in sixth place, because we would still be strong. Unemployment figures are decreasing. We have a good and strong economy. I have every confidence in Brexit and where we are going.

[David Simpson (Upper Bann) (DUP)]

Does my hon. Friend agree that while there is difficulty with unsureness about funding, there is a danger of talking ourselves into depression and sending out a negative message to students who want to come to the United Kingdom to learn? We will work together to resolve the issues, and I think that is the way forward.

[Jim Shannon]

Quite clearly my hon. Friend, like me, sees the glass as half full. We believe in the future and we have confidence in the future, and we look forward to that. We know we can deliver.

I am beyond proud of the universities in Northern Ireland: Queen’s University Belfast and Ulster University. We have tremendous courses that produce highly recognised degrees. I have met many politics students from Europe and the USA who made the choice to study in Northern Ireland because universities in the UK are so highly regarded. We have a legacy of high-class institutions in this country, and we must build upon and jealously guard that legacy. Queen’s University Belfast is made up of 32% international students. It is essential that our campuses retain the ability to access the international market. There are partnerships at Queen’s University and the University of Ulster with companies and students from overseas for new research into medicines.

There is no need for a knee-jerk reaction. The Government have made it clear that EU students applying to study from 2017 to 2018 will not only be eligible for the same funding and support as they are now, but their eligibility will continue throughout their course, even if the UK exits the European Union during that period. That is the Government’s commitment, so let us be clear where we are. We have time to consider the best way forward. We can all still be assured of that. The Minister in his response will reaffirm that position, and it is important that he does so.

We are all aware of the issues regarding visas for those who are not from the EU and who want to study here, and we must be aware of the statistics. Non-EU students contributed £3.5 billion in 2012-13, £3.9 billion in 2013-14 and £4.2 billion in 2014-15. It is clear from those stats that we are still able to attract international students without the benefits of EU membership, but I am certainly not saying that no thought should be given in the Brexit negotiations to reciprocal incentives that our former EU partners could avail themselves of in the short term. Let us ensure that we keep the co-operation with our EU partners that we have at the moment. The value and the importance of our EU and international students and their role in our economy should not be underestimated. Indeed, I believe that the Government are not underestimating them.

It is absolutely clear that we benefit from having universities that people from around the globe want to attend. In 2013-14, there were some 125,300 EU students at UK universities, and in that year £224 million was paid in fee loans to EU students on full-time courses in England. That was 3.7% of the total student loan bill. The higher education sector contributes a massive £73 billion to the UK economy, including £11 billion of export earnings. The latest available figures show that in 2011, EU and non-EU students in higher education contributed an estimated £9.7 billion to the UK economy through tuition fees and living expenditure. The publicly funded higher education sector currently receives 2% of its total income from the fees of EU students, with some individual institutions receiving higher levels of funding.

I will conclude, Mr Davies, because I am aware of the time restraints. International students want to study here; the universities want them to study here; and our Government are aware that in Brexit we must facilitate and foster this educational relationship in every way possible. The value of sharing educational findings and research grants is another issue that I know the Government are very aware of, and I know they have confidence in our ability to continue funding projects such as those that take place in Queen’s University in Belfast and at Ulster University, which have resulted in ground-breaking innovation. This must continue; I believe it will.

[Geraint Davies (in the Chair)]

I call Dr Roberta Blackman-Woods. You have five minutes.

--- Later in debate ---

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

It is a pleasure to serve under your chairmanship once again, Mr Davies. I had already cut my speech, albeit not in anticipation of the time limits, but to try and get through it—my throat may stop me, but hopefully I will get to the end. I start by congratulating the hon. Member for Ealing Central and Acton (Dr Huq) on securing today’s important debate. She is obviously well versed on the contribution that our universities make from her time lecturing at the University of Manchester and Kingston University. I very much enjoyed her contribution and the perspective that she brought to the debate today.

Shelby Foote once said:

“A university is just a group of buildings gathered around a library.”

I suspect he was being a tad facetious, as the truth of the matter is that universities are so much more than books, the imparting of knowledge or certificates. Our universities are a cornerstone of the British economy. They provide stability in times of economic downturn, they give direction to young people searching for opportunities and they provide a second chance to mature students looking to better their lives for themselves and their children. I should probably declare an interest: my wife is one of those mature students looking to better our lives and the lives of our children.

[Jim Shannon]

She is young; not mature.

[Gavin Newlands]

I should point out that she is not so mature—I appreciate that sedentary contribution from my friend the hon. Member for Strangford (Jim Shannon).

Students internationalise our communities and attempt to provide answers to some of life’s greatest unanswered questions, such as: how in the name of all that is holy can somebody like Donald Trump be elected President of the United States? It is in the acknowledgement of the overwhelmingly positive contribution that universities make to our economy and wider society that we should consider the effect that Brexit may have on our universities.

According to Professor Sir Timothy O’Shea, the principal of Edinburgh University, the potential impact of Brexit on HE

“ranges from bad, to awful, to catastrophic”.

Despite what the Government may sometimes suggest, people like Professor O’Shea are not political figures looking for an axe to grind. They are experts in the field whose views should be listened to and respected.

To compound the Brexit issues, the plan to prevent universities from recruiting international students—this would be based on an obscure and superficial quality mark decided by the Home Office—would be deeply damaging. All of Scotland’s 19 HE institutions reject the introduction of any restriction on their ability to recruit international students on the basis of a supposed differentiation in quality. All of Scotland’s universities are already routinely assessed by the Quality Assurance Agency for Higher Education and routinely audited by the Home Office. When all is said and done, the Government seem to be saying that the institutions that do not receive the higher mark will be deemed not good enough for international students, but good enough for ours. Is that really the message the Government feel comfortable in sending out?

The University of the West of Scotland is going through an exciting period of growth. They ask their students and staff to dream, believe and achieve. Their global reach enabling plan is an ambitious plan to

“deliver an academic portfolio that provides...students with globally relevant skills, is internationally attractive and contributes to global reach.”

UWS is vital to Paisley and Renfrewshire. Some 15,500 students study there and 25% come from SIMD 20 postcodes—those ranked statistically under the Scottish index of multiple deprivation as the most deprived 20% in Scotland. UWS employs more than 1,500 people and helps to support 4,500 more. The Biggar Economics report noted:

“UWS has [the] potential to significantly increase its economic and social impact in the future through the delivery of its Corporate Strategy, which will transform both the University and the communities that it serves.”

The principal of UWS, Professor Craig Mahoney, has explained that expanding the university’s international presence, increasing the international opportunities for domestic students and growing the number of international students on their campuses are key to achieving the vision set out in its strategy and realising the potential set out in the report.

The truth of the matter is that Brexit, combined with the anti-HE policies of the Government, seriously risks damaging the operations and future plans of all our universities. Universities across the UK generate more than £73 billion each year for the economy. Their position in our society, the direction they provide to students, the jobs they support, the research opportunities they deliver and their importance to our national economy means that the Government cannot afford to undermine the sector, which deserves answers to the many questions about the Government’s approach. We need clarity, before the Government permanently damages our HE sector. We are at grave risk of being perceived as an unwelcoming location that does not value the contribution of international students, colleagues and partnerships. I sincerely hope that the Minister can provide some reassurance to the HE sector today.

South-west Growth Charter

Jim Shannon Excerpts

Tuesday 22nd November 2016 Westminster Hall

[Mr Streeter]

There is no question in my mind but that we have not seen the investment that we might have wanted from Governments of all colours over many years, particularly over the past 30 years. Now that we have come together to speak with a single powerful voice, I believe we will see that change. The Government are listening to us.

[Jim Shannon (Strangford) (DUP)]

On connectivity, the south-west can benefit from connectivity with the rest of the United Kingdom, including Northern Ireland, and Northern Ireland can also gain from connectivity with the south-west. There are potential advantages for both, including in the agri-food industries, fishing and tourism. Those are three things that we could do together. Does the hon. Gentleman agree that that is how we should do it?

[Mr Streeter]

We are delighted to work with anyone, and we are always delighted to welcome tourists from Northern Ireland who come to enjoy our wonderful south-west.

The Government need to recognise that European funding has contributed greatly to digital infrastructure in the past, and that a home-grown solution must be provided for the future. We need 5G. Tourism has been a key part of the local economy for many years, but it has also meant a lot of low-paid jobs. We in the south-west have core strengths. We are home to world-class universities including Exeter, Plymouth and Falmouth, and to highly skilled workers. Our response has been for businesses, local leaders and academic institutions to create successful business clusters and networks, such as marine around Plymouth, environment around Exeter, and aerospace and defence around Newquay. The clusters have played a key part in the hundreds of thousands of growing businesses across the aerospace, marine, technology and creative industries, helping the region attract and retain talent. However, we need to do more, and we need the infrastructure to support that growth.

We in the south-west have proved that we are successful. Pennon Group, which has taken the lead on the excellent charter, is born of the south-west and headquartered there, and operates across the whole region, in Cornwall, Devon, Somerset and now Dorset. It is one of the UK’s largest listed companies. There are many other success stories, and no doubt some of my hon. Friends will mention them in a moment.

One of the Secretary of State’s key messages at the summit was about devolution. I will touch on that, and I think that one or two other Members might want to mention it as well. He made it clear that if the south-west wants an ambitious devolution deal, it must accept a directly elected Mayor. His argument was that in other countries in the G7, large regions, particularly around big cities, have a lot more power than we in Britain have traditionally given to regions. Too many decisions in Britain are still made in Westminster when they should be made at local level, but local power is often too fragmented. To make sensible decisions on transport, skills and infrastructure, he argued, we need much more joined-up thinking and a proper combined authority, with one elected person shouldering the accountability.

That has given our region food for thought, and discussions are ongoing, but it seems clear that if we want the devolution deal that the region needs and deserves, we must find a way to deliver a western super-Mayor, a strategic leader—[Laughter.] Do you see what I did there? I have been working on that all night. Perhaps it is time we came together to do so. It is what the business community wants. However, there will be different views, and the conversation is ongoing.

The charter that we will deliver to Downing Street later today is not about going cap in hand to the Government; it is about saying that we in the south-west can do an awful lot for ourselves, but we need infrastructure support. The charter supports the Government’s industrial strategy and sets out how the Government can work with the south-west to increase investment and opportunities for people of all ages.

In the charter, the business community outlines its commitments to the region: to collaborate for growth; to invest in a self-sustaining south-west; to invest in innovation, industry and infrastructure; to invest in productive people and retain talent within our region; to invest in our environment and share the benefits of growth. What do we want the Government to do? We want a new Government partnership with the south-west, a firm focus on south-west growth in the Government’s industrial strategy and a funding road map so that the south-west can move from funding reliance to more innovative funding solutions.

We want investment in digital connectivity: ultrafast south-west, a new partnership with the private sector to deliver ultrafast south-west 5G mobile, fibre and wireless broadband to 90% of the population by 2030. We want investment in energy connectivity—switching on to opportunity—to address transmission and distribution restrictions on regional growth, to be completed by 2025, and a renewed focus by Ofgem, National Grid and Western Power Distribution. Crucially, we want investment in transport connectivity to get business moving. We want Government to back the Peninsula Rail Task Force’s long-term plan for rail improvements, which will be outlined in the report published later today, and to re-affirm commitments to road improvement projects in the pipeline, including the A303, the A30, the A38 and, as my hon. Friend the Member for North Devon (Peter Heaton-Jones) would undoubtedly agree, the A358.

As Chris Loughlin, chief executive of Pennon, said at the south-west growth summit:

“We should be able to get our voice heard. We are, after all, a political battleground. Elections are won and lost on how the south-west votes.”

On that, we all agree.

The south-west charter will be delivered to Downing Street later today. The timing could not be better: it is the day before the autumn statement. The south-west has made a profound contribution to this country throughout our history, and we have some very successful businesses in the region. It is a charter for growth; more than that, it is a charter for aspiration and hope for all in the south-west, but particularly the younger generation. Tomorrow, we will look to the Chancellor to re-commit to the south-west. Leaving the EU creates uncertainty, but also opportunity. The south-west is ready to deliver in the new partnership with the Government, provided that we receive the right commitments. That is the challenge for the Minister in this debate. Hinkley Point C, the third runway at Heathrow and High Speed 2 will all have a positive impact on the south-west, but we need more, and we need more infrastructure commitments specifically for the south-west.

It is not just about the autumn statement tomorrow; we are not going away. We will look to future budgets and the UK’s industrial strategy to position the south-west where it should be: not on the fringes, but at the centre of growth. Our two local enterprise partnerships are working hard together already, with valuable input from the business community, led by Pennon, to ensure that our proposals are developed. We need to add Government to that partnership.

To quote the Western Morning News for the third time—

Higher Education and Research Bill

Jim Shannon Excerpts

3rd reading: House of Commons & Legislative Grand Committee: House of Commons & Report stage: House of Commons
Monday 21st November 2016 Commons Chamber

The Minister is at his most emollient this evening, on the back of the announcement today of a £2 billion industrial strategy fund, which is going to turbo-charge the future for UKRI, so that it can power away and all the rest of it. The truth of the matter—and the Minister knows it—is that the architecture that will need to be constructed and consolidated in UKRI, with Innovate UK, the research councils, the devolved Administrations and so on, is complex. It is going to take time to develop.

[Jim Shannon (Strangford) (DUP)]

On the subject of Northern Ireland, the Minister will know that Queen’s University Belfast has an extensive partnership with companies and other universities across the whole of the United Kingdom, and we are all proud to be British in relation to that. With that in mind, I am wondering what consideration the hon. Gentleman feels this Government should give to Queen’s University, particularly for its innovative medical investigations to find new cures for cancer, diabetes, chest, heart and stroke illnesses and such like?

[Gordon Marsden]

I am grateful for the hon. Gentleman’s intervention. It would, of course, be invidious for me to single out Queen’s University over and above others—if I did, my postbag would no doubt be full—but he is absolutely right to champion what it is doing. There is an important point, which I am not sure the Government have entirely grasped. The research done at Queen’s and other universities and HE institutions under the devolved Administrations does not depend only on whether the Government get a good Brexit settlement with the European Union; it depends on maintaining the trust and support of those EU nations that we will rely on to get that sort of investment for clinical trials. For example, a lot of charities—the Minister will be aware of this because they made representations to his Department—particularly those relating to heart disease and cancer, are concerned that if we do not get a decent settlement, the problems of getting field trials in Francophone Africa or Lusophone South America will become more and more complicated because we rely on those researchers and the good offices of our EU counterparts in those countries. I do not think that the Government are taking anywhere near enough notice of that particular issue.

As I said, the architecture is complex, and it is crucial to get it right. Although the Minister may think that some of these amendments are nit-picking and do not need to be on the face of the Bill, as I said to him throughout our discussions in Committee, I think he neglects the importance of sending a signal to the devolved Administrations and others that their interests are going to be represented. That is why these amendments were tabled.

Our amendments 43, 44 and 45 would ensure that there is co-operation and information sharing between the OFS and UKRI. The Minister obviously knows that UKRI and Innovate UK have historically done different things. Again, he is at pains to try to reassure us that all we will get under the new structure is the best of both worlds. Unfortunately, we sometimes end up getting the worst of both worlds. I was struck, particularly during evidence sessions in Committee, by the fact that certain concerns remain—amendment 53, tabled by the hon. Member for Southport (John Pugh), is also relevant here. The chief executive of Innovate UK outlined his concerns in Committee about whether Innovate UK and the Department that supports it will be sufficiently fleet of foot to do the sort of innovative things in finance and everything else that they have so far been very good at. This is not to say that the architecture cannot work; it is just saying that the Minister and his officials need to think rather harder about the how the process will go forward.

There is also, of course, the broader issue in part 3 that the process of separating teaching and research—and in this context, the Research England body is relevant—will mean that issues and activities at the interface of teaching and research, such as the health of disciplines, the awarding of research degrees, post-grad training and sharing of facilities, might not be effectively identified and supported.

Exiting the EU and Workers’ Rights

Jim Shannon Excerpts

Monday 7th November 2016 Commons Chamber

[John Redwood]

The Vote Leave campaign was clear that we want the Government to guarantee the rights of all legally settled workers in this country. The Government have said that everyone who is here legally is quite entitled and welcome to stay on the assumption that no one from our country who is living overseas is threatened. I do not believe that any of our European partner countries will threaten any of our people who are legally settled in those countries, so I think it is more or less absolutely guaranteed that everybody is welcome to stay and that the British Government have absolutely no plan to suggest that they should not be.

[Jim Shannon (Strangford) (DUP)]

The right hon. Gentleman may be aware of an EU ruling in Northern Ireland just in the past two weeks. The Northern Ireland Assembly allocated some £7 million to help fund a direct link between Belfast International Airport and New York, but that was overruled by the EU, which said that it was out of order. Is that not another example of why we should be exiting the EU right now and not waiting until 31 March?

[John Redwood]

I am very much on the hon. Gentleman’s side on that issue but, as he knows, that will not be possible given the delays that are now being built in as a result of various issues and processes.

This House must now rise to the challenge of ensuring workers’ rights and removing the senior powers of the European Union in the way that the British people voted for. Of course, we want to take back control of the money and, once we have, the Government will have considerably more to spend on their priorities. The Vote Leave campaign recommended health as a priority, but it will be for the Government of the day, as Vote Leave always made clear, to decide exactly how to spend the money.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to be called in this debate. I thank the Minister and hon. Members for giving us all a chance to participate. There are a number of issues that my constituents have asked me to raise in the House and I intend to do so.

My office staff will laughingly point to a sign in the office which works out time off in such a way that they owe me. Annual leave is only one of many workers’ rights that will be discussed and, more importantly, protected during negotiations. The Government told us:

“‘This is your decision. The government will implement what you decide’—no ifs, no buts”,

no second referendum. It was not a regional or a constituency referendum. It was a decision which all the people of the United Kingdom of Great Britain and Northern Ireland took collectively, and that decision was to leave. Let us get on with the job and make sure that that happens.

The Government have been clear about the protection that will remain. The Prime Minister said that

“by converting the acquis into British law, we will give businesses and workers maximum certainty as we leave the European Union. The same rules and laws will apply to them after Brexit as they did before. Any changes in the law will have to be subject to full scrutiny and proper Parliamentary debate. And let me be absolutely clear: existing workers’ legal rights will continue to be guaranteed in law—and they will be guaranteed as long as I am Prime Minister.”

That is what our Prime Minister said. It is very clear. Let us focus on that as well.

I am probably a lone voice on the Opposition side of the Chamber, as one of those who voted out. I am very happy to say that I voted out, and my constituency voted that way as well. I genuinely respect every Member on this side of the House, and I enjoy their friendship, but the fact of the matter is that I have a different opinion from many of them.

[Geraint Davies]

Will the hon. Gentleman give way? Will he say how long the Prime Minister is going to be—

[Mr Speaker]

Order. The hon. Gentleman should not chunter from a sedentary position. We have to start the wind-ups at 9.40 pm.

[Jim Shannon]

Thank you, Mr Speaker, and I am quite clear on what my time is.

Workers in the UK are entitled to five weeks and three days of paid holiday a year, including public holidays. The Working Time Regulations 1998 guarantee four weeks’ paid leave as a European minimum, but for 35 years before joining the EU, the United Kingdom had legislation on paid holidays, so that is very unlikely to change or to be reneged on— indeed, my office staff would be the first to revolt if it were, and my life would not be worth living.

It is clear that we have the morals and the principles in terms of European law. At times, we have even furthered protections and enhancements. Such is the case with maternity leave. My parliamentary aide had a child and came off maternity leave after only six months, as she was expecting another baby. Although our law would have enabled her to have two years off—one after the other—and we have said that mothers should be allowed to take that decision, she felt she needed to return to work for a few months to keep her head in the game. However, the ability to take that leave is what we have enshrined in the law at present.

We have even enshrined it in law that mothers must take two weeks off work—or four if they work in a factory. That law will stand. It is the mother’s decision. I wonder at those who seem to say that mothers will have fewer rights if they decide to have another baby after article 50 is invoked. That is nonsense. The 52 weeks of statutory maternity leave in the UK are considerably more than the 14 weeks guaranteed by EU law, and of those 52 weeks, 40 are available for shared parental leave.

EU workers are important in my constituency, as they are in everybody’s constituencies. The agri-food sector in my constituency depends a great deal on them for the work they do in companies. We will enshrine their needs and rights and ensure that they are protected.

The issue of workers’ rights will differ from person to person. I have had small and medium-sized enterprise owners asking for the opportunity to have an input into any new regulations, and Brexit gives them that ability. If there is a need to change law, it will be done in the normal way in this place. That will allow people to sow into the legislation they harvest from.

The issue of small and medium-sized businesses needs to be re-addressed. It is sometimes argued that employment regulation is fine for larger organisations with human resources departments, which have the resources to deal with red tape, but it is much more difficult for small and microbusinesses to cope with it. The nuances of employment law will remain unchanged unless we act to change things in this place. I therefore ask the Minister for more help for the small businesses that do not have the HR budget or the resources, so that they can know their rights and help their employees to understand their rights as well.

For those who have told employees that they will lose their holiday, sick pay and maternity rights, it must again be underlined that, if anything, our rights have been more robust than the ones imposed by Europe. We take protection of our workers seriously, and that is highlighted by the fact that recent changes to the unfair dismissal qualification period, and the introduction of fees for employment tribunal applications, emanated from the UK, not Brussels, as did the introduction of shared parental leave regulations in April last year. The hon. Member for Great Grimsby (Melanie Onn) talked about some of the issues we need to address, and there are issues that have been raised on the Opposition side of the House that need to be looked at.

There is uncertainty as to the practice in terms of primary and secondary legislation, but it has been made clear that any change in rights will come through legislation and not through a repeal of all rights that come from Europe—that cannot happen, and will not happen, in what we fondly call the highest seat of democracy in the world, which is right here, in this House. The scaremongering must stop. People should rest assured that, should article 50, by some miracle, be invoked on new year’s eve, new year’s day will still be a public holiday, they can still have their Easter eggs and summer holidays, and they can have as many children as they like without fear that they will be sacked from work. That is a fact of life.

I recently watched the film “Amazing Grace”, which shows Wilberforce’s journey to get this House to ban slavery. I do not believe that any Member here is interested in reinstating slavery for anyone in the world, let alone our own citizens. We have a history of protecting the little man and little woman, and that will not change because, in theory, there is a possibility that it could change. We are still interested in doing the right thing in this place, and we are still accountable to the public for the decisions that are made. Yes, the Brexit team will need to work on the nuances of the rights of our workers in Europe, but intimating that this will be the time to eradicate rights is mischief and nothing more.

Faulty Tumble Dryers (Fire Risk)

Jim Shannon Excerpts

Tuesday 13th September 2016 Commons Chamber

[Andy Slaughter (Hammersmith) (Lab)]

I am grateful for the opportunity to talk about a serious issue that affects many millions of people. My own involvement arises from a tragic incident that occurred in my constituency only a few weeks ago. As we have a little more time than usual, I propose to explain briefly what that incident was, to talk about the evidence that emerged from it—which supports the course of action that I shall recommend to the Minister—and to ask the Minister a number of questions about the safety of tumble dryers. If there is time, I know that one or two of my colleagues who have rather more experience and expertise in this matter might wish to contribute, but I wish to leave enough time for the Minister to respond, not least because I was a little alarmed by her brief opportunity to respond to my question on this subject earlier today.

On the afternoon of 19 August, Debbie Defreitas, a constituent of mine, was in the kitchen of her home on the seventh floor of Shepherds Court, an 18-storey block of flats overlooking Shepherd’s Bush Green. She became aware of a burning smell. Her Indesit tumble dryer was the only device that was switched on, so she unplugged it and pulled it away from the wall. When she opened the door, smoke came out. Debbie rang the fire brigade and retreated on to the landing. When firefighters arrived and entered the flat, the fire had taken hold. Thick smoke filled the building and flames arced upwards along the walls into other properties.

Over 100 families were evacuated, and 26 were found temporary accommodation in hotels that night. There is substantial damage both to individual flats and the block. Nine families, including the Defreitases, are still unable to return home. Twenty fire engines and 120 firefighters fought the blaze, which brought the centre of Shepherd’s Bush to a halt.

I spent some hours at the scene on the evening of 19 August. I cannot praise highly enough the firefighters who risked their lives, and the residents who showed incredible spirit and resilience despite losing their homes and in some cases all their possessions. Council officers and local councillors Sue Fennimore and Adam Connell worked into the early hours to ensure people were fed, comforted and found decent places to stay.

What is most remarkable is that, apart from three minor injuries, no one was hurt in the blaze, though the trauma, especially for those who witnessed the worst of the fire, may well have a longer-term effect. But the circumstances are very similar to those of the Lakanal House fire in Southwark in 2009 in which six people died. That, or worse, could easily have happened in this instance.

We await the publication of the investigations into the Shepherds Court fire, but one thing is already clear: Mrs Defreitas was following to the letter the advice given to her by Whirlpool, Indesit’s owners. Despite a fault affecting over 5 million dryers supplied by the company’s brands, it continues to tell customers

“you may continue to use your tumble dryer whilst waiting for the modification, however, we require that you do not leave your dryer unattended during operation.”

Whirlpool is not the only manufacturer trying to deal with defective dryers and other white goods that pose a fire risk. The London Fire Brigade estimates that there is one fire caused by white goods every day in London alone. The Local Government Association, which represents all fire authorities, says three fires a day are caused in England and Wales just by tumble dryers. Some cause minor damage, some are on the scale of Shepherds Court and some have resulted in deaths and serious injuries.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on bringing this important issue to the House for consideration. The components in the appliances are readily available across the whole of the United Kingdom of Great Britain and Northern Ireland. Does the hon. Gentleman agree that the system of recall at present is not sufficient to ensure safety and, further, that new legislation—I hope the Minister will respond on this—is a matter of public safety and is prioritised as such?

[Andy Slaughter]

I am grateful to the hon. Gentleman for that intervention and I know he has done a lot of work on this subject over a number of years. I do not know if he was present to hear the Minister’s response to me earlier today, when she said that we have an effective system of product recall. I think the hon. Gentleman would disagree with that, as I do, and I will come on to that later.

The Government are not short of advice. Two years ago the inquest into the death of Santosh Benjamin, caused by a defective Beko fridge-freezer, called for a new system of product recall, as did the independent review of product recall under consumer champion Lynn Faulds Wood, which reported in February this year. The LFB’s “Total Recalls” campaign, the Consumers Association and “Expect it’s safe”—a campaign set up by solicitors Leigh Day, who represent many of the victims of white goods fires—have made similar demands.

I shall come back to what the Minister has said, and I want her to be aware—if she is not already—of the preponderance of opinion on this subject. I have mentioned the London Fire Brigade, but we could equally apply these views to other fire brigades around the country, which are represented by the Local Government Association. The London fire commissioner, Ron Dobson, has said:

“If my kitchen had one of the recalled goods in it, I would unplug it straight away until it has been checked and repaired. The speed with which the fire took hold shows how dangerous a faulty tumble dryer can be. That’s why we are calling for Whirlpool to urgently change their advice to consumers.”

Earlier today, I met representatives of Which?, whose very effective campaign has included the use of mystery shopping. This all shows just how appalling Whirlpool is in using these filibustering tactics.

--- Later in debate ---

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

This debate has been very illuminating for me. I am sorry that the hon. Member for Hammersmith (Andy Slaughter) was alarmed by my response earlier at BEIS questions. I congratulate him on obtaining this important debate. If that is how he speaks as a newcomer to a subject, goodness knows what he is like when he is focused on a subject on which he is an acknowledged expert. Listening to his speech, I learned a great deal.

I thank other hon. Members for their contributions. The hon. Member for Swansea East (Carolyn Harris), chair of the all-party parliamentary group on home electrical safety, made the point clearly that safety is paramount. Her view is that the system is not delivering. I was struck by the remarks of my hon. Friend the Member for South Leicestershire (Alberto Costa), who is justifiably outraged that his letters to the chief executive of Whirlpool have met with no response, which is at odds with my own experience. I seem to have obtained a letter from Mr Pettorino unsolicited. I propose to share some of that letter with the House so that hon. Members can take a view as to the veracity of its contents, which I found reassuring. I asked one of my officials to contact the relevant authority— Peterborough trading standards —to check the contents of the letter, and I was reassured that they felt it was a true and fair picture.

I should first, of course, mention that I was very shocked to hear about the terrible fire in Shepherd’s Bush and the fate of Debbie Defreitas, without whose prescient action the situation could have been a lot, lot worse. I read the fire officer’s report to the effect that the fire occurred at about half-past four in the afternoon. Had it occurred in the middle of the night, he feels certain that there would have been fatalities. There is no doubt that it was a very serious incident, and I send my sympathy to the constituents of the hon. Member for Hammersmith—particularly those who have not even been able to return to their homes.

Although the number of tumble dryers in use continues to rise, the number of fires resulting from their use has remained constant. I did quote some figures at BEIS questions earlier today. Although we have heard terrible reports this evening, I really should put it on record again that, of the five Whirlpool products that are mainly sold in Britain, 5 million were sold over the course of a year. There were 750 fire incidents, most of which were contained within the machine. That represents 0.02% of all the sales of each individual product. That is a very small percentage, but I accept that 750 fires is a high number, even though most of them were contained within the machine.

[Jim Shannon]

Another example—not to do with white goods—is cars where there is a safety issue. The manufacturer recalls every one of the cars—every one of the models—irrespective of how many there has been a problem with. With respect to the Minister, the firm should be recalling every one of these models, not just a small percentage.

[Margot James]

The hon. Gentleman is quite right that there are circumstances where a fault identified in a car would result in a complete product recall; indeed, there are circumstances that would lead to a complete product recall of white goods as well. It does depend on the nature of the fault in the car, as it does depend on the risk assessment with the white goods.

Sellafield

Jim Shannon Excerpts

Tuesday 6th September 2016 Commons Chamber

[Mr Hurd]

No.

[Jim Shannon (Strangford) (DUP)]

The nuclear industry is normally a highly regulated sector. Has the Minister considered how his Department can work with Sellafield to ensure that there is faster implementation of safety measures and that the issue of storage—a very clear problem—is addressed as quickly and as safely as possible to ensure the smooth running of this vital plant?

[Mr Hurd]

In principle, yes.