Oral Answers to Questions

Jo Swinson Excerpts

Thursday 8th November 2012 Commons Chamber

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson)]

The Secretary of State has written to the industry asking for evidence on how the self-regulatory approach announced last November is working. We will make our decisions after considering its response.

[Mr Russell Brown]

I thank the Minister for that answer, but a broad coalition of organisations as diverse as the Campaign for Real Ale, the Federation of Small Businesses, the Business, Innovation and Skills Committee, which has a majority of coalition members, the all-party save the pub group, Unite and the GMB—the list goes on—all think that the relationship between pubcos and their licensees is unfair. Is the Minister able to name any serious organisation that thinks that self-regulation will work in this sector?

[Jo Swinson]

I understand that a wide range of organisations have expressed concerns, which is exactly why we have written to the industry to ask for its views on how this is working. We want to proceed on an evidence-based approach and once we receive the evidence we will report back to the House.

[Lisa Nandy]

In Wigan, we are proud of our small breweries, AllGates and Prospect, whose beer will be in this place very soon. An independent inquiry would allow us to consider the impact of restrictions on their trade and, in particular, the impact on our local economy, given the breweries’ importance to Wigan. A commitment today from the Minister to establish such an inquiry would go a long way to restoring confidence in the industry. Will she make that commitment?

[Jo Swinson]

I thank the hon. Lady for her question. She does a wonderful job in championing her local breweries and the BIS Committee was very positive about the relationship that family brewers have with tenants. I may have to disappoint her by not giving her the commitment that she asks for today, but the Government are open-minded. As I have said, when we receive the industry’s response, which we have asked for by 23 November, we will consider the matter further.

[Andrew Gwynne]

On 12 January, this House supported unanimously a motion stating that the Government should commission a review of the self-regulation of the pub industry, to be conducted by an independent body, by the autumn of this year. It is now November and there has been no action. Why does the Minister hold the decision of the House of Commons in such contempt?

[Jo Swinson]

I do not think that that is an accurate representation of my view. I came into the post just a couple of months ago and I am looking at the issue very seriously. My right hon. Friend the Secretary of State has written to the industry and it is appropriate to proceed on an evidence base. Once we receive the written responses, discussions will be required with the industry and, as I have said, we will return to the House with further information on what has been presented to us.

[Bob Stewart (Beckenham) (Con)]

Will the Minister outline how she, as the Government’s representative, might help independent freehold houses generate business and, in particular, line up with independent mini-breweries?

[Jo Swinson]

I thank my hon. Friend for that question. It is certainly interesting that three quarters of the new pubs that have opened in the last year and a bit have been freehold. That says a lot about how people who are looking to set up pubs feel about the business models. The Minister of State, Department for Business, Innovation and Skills, my right hon. Friend the Member for Sevenoaks (Michael Fallon) outlined some of the initiatives of global entrepreneurship week. The Government have a raft of measures to support small businesses. I know that Members from all parts of the House want to support small community businesses in their constituencies, including small breweries.

[Toby Perkins (Chesterfield) (Lab)]

The Minister says that she wants to hear from the industry. If she has looked into this matter, she will know that the entire industry was united in thinking that the Government’s response last November was too weak. The Secretary of State said in June 2010 that he would support the commitments made by the previous Government, and this House set out its clear view in January 2012. Now, years after all the Select Committee reviews, we have yet another consultation. Why does the Minister not listen to the view of this House, listen to the view of the industry and set up an independent review of whether self-regulation is working? Let us start saving some jobs and pubs before it is too late.

[Jo Swinson]

I am listening; that is the purpose of asking the industry how the current approach is working. There are positive signs, such as the setting up of the Pubs Advisory Service and the Pubs Independent Conciliation and Arbitration Service. PICAS has started to hear cases and two have been found in favour of the tenants. There has been positive action and we need to assess whether that is sufficient. That is what the gathering of evidence is designed to do.

[Glyn Davies (Montgomeryshire) (Con)]

8. What assessment he has made of the effect on jobs of the extra costs of energy arising from subsidising wind farm development.

--- Later in debate ---

[Sir Bob Russell (Colchester) (LD)]

14. If he will bring forward legislative proposals to prevent owners of businesses which have failed with debts outstanding from starting new businesses of an identical or similar nature.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson)]

The Government have no current plans to bring forward legislation. We recognise that some businesses will fail, but we do not want to prevent entrepreneurs from learning from an initial business failure. I understand, however, the significant concerns that are expressed about so-called phoenix companies. I know my hon. Friend has worked tirelessly on behalf of his constituents on this issue, and I will keep it under close review.

[Sir Bob Russell]

Cavendish Conversions Ltd and, in my constituency, Number Nine Restaurant Ltd, have risen phoenix-like to start again in new guises thanks to dodgy financial gymnastics by their owners, leaving innocent citizens and businesses with serious financial losses. I urge the Government to take action against those people. It is unfair that they can rack up losses and start again.

[Jo Swinson]

I thank my hon. Friend for his question. He highlights the distress that is caused to his constituents—I know from my correspondence that this also applies to constituents across the country—when companies undertake the activities he describes. I look forward to meeting him to discuss this specific issue in a couple of weeks’ time. He has already introduced an Adjournment debate to go into his case in detail. I reiterate that we need to get the balance right between encouraging enterprise and protecting consumers and business, but I look forward to discussing the matter with him further.

[Derek Twigg (Halton) (Lab)]

I agree with the hon. Member for Colchester (Sir Bob Russell). What happens is that perfectly good businesses get left with bad debts because a contract has not been paid. They then have a cash flow problem and the banks often will not support them. The Minister should look again at this and at the role of the banks in this situation.

[Jo Swinson]

The hon. Gentleman makes a very good point, because what often happens is that one business goes under and its creditors get into difficulty as a result. We want to make sure that the system works to prevent such situations and provide support to businesses. We need to be wary of unintended consequences, because we also do not want a regime under which people who have had a failure in business cannot start up again, but we need to look at the disqualification regime and check that we have got the balance right.

[Mark Pawsey (Rugby) (Con)]

16. What recent steps he has taken to encourage business start-ups; and if he will make a statement.

--- Later in debate ---

[Sarah Newton (Truro and Falmouth) (Con)]

17. What progress has been made on the EU Commission proposal to impose quotas for women on boards.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson)]

The European Commission is considering what proposals to make to increase the number of women on boards. I expect an announcement shortly, perhaps as early as next week. It is an important issue. I want to see more women on boards on merit. As the House will know, the UK’s voluntary business-led approach is working well, with significant increases in women on boards in FTSE 100 companies.

[Sarah Newton]

I thank my hon. Friend for her answer, but does she agree that it is also important that we focus on the pipeline of talented women? Does she welcome the pilot initiative by the Mentoring Foundation which offers women at the junior end of senior management mentoring support from senior women executives who themselves have been mentored by FTSE chief executives?

[Jo Swinson]

My hon. Friend is absolutely right about the pipeline issue. It is vital that we encourage businesses and organisations to develop talented individuals. If an organisation is viewed as a pyramid, there are good numbers of men and women at the base of the pyramid, but higher up the number of women falls away, and mentoring schemes are an excellent way to address that. The Women’s Business Council is also looking at this issue, and the Government’s initiative “Think, Act, Report” encourages companies to put in place schemes to ensure that they develop the talent within their organisations and address the pipeline issue.

[Mr Clive Betts (Sheffield South East) (Lab)]

18. What recent estimate he has made of the number of jobs that will be created by the regional growth fund.