Oral Answers to Questions

Jo Swinson Excerpts

Thursday 7th February 2013 Commons Chamber

[Ann McKechin (Glasgow North) (Lab)]

11. What assessment he has made of the effect on consumer behaviour of Government advice on debt.

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

The Government established the Money Advice Service in July 2011 to co-ordinate and monitor free debt advice. We also support advice through the National Debtline and Citizens Advice. Nevertheless, the evidence suggests that many people are still unaware that there is free debt advice and so fall prey to high up-front fees and profit-driven advisers. Today, I am therefore announcing a new debt management protocol that will protect consumers and ensure they know where to go for free debt management advice.

[Ann McKechin]

Last week, I listened to a pointless radio advert from the Money Advice Service that advised people how to get a mortgage. Surely debt advice from the Government should focus on priorities such as vulnerable families who are finding it difficult to afford basic food or their rent, far less the luxury of obtaining a mortgage.

[Jo Swinson]

I understand the frustration that the hon. Lady feels. Of course, the Money Advice Service is there to provide not only debt advice, but information on a wide range of financial issues and there is place for that. She highlights the huge importance of raising the awareness of the free debt advice that is available. The new protocol that has been published today should help to do that, because debt management providers who charge for their services will have to make people aware that free options are available before they sign up. That will help people to get the advice that they need.

[Andy Sawford (Corby) (Lab/Co-op)]

Last week, I met representatives of Corby citizens advice bureau, which does an excellent job in my local community. Given the appalling human cost of the cumulative impact of the Government’s measures, such as the cuts in council tax benefit and housing benefit, and the crisis that we expect to see in April when universal credit is implemented, does the Minister regret scrapping the financial inclusion fund, with the loss of 500 citizens advice advisers at a time when their help is most needed?

[Jo Swinson]

It is a little rich of Labour Members to talk about the difficult situation that people are in as if they had nothing whatever to do with it. They forget that they left this country in a perilous economic situation. The hon. Gentleman is right to recognise that people are finding it very difficult. That is why the Government are helping by cutting income tax for 20 million people and taking more than 2 million of the lowest-paid people out of paying income tax altogether.

[Jeremy Lefroy (Stafford) (Con)]

13. What steps he has taken to raise awareness of export support services among small and medium-sized enterprises.

--- Later in debate ---

[John Cryer (Leyton and Wanstead) (Lab)]

Does the Secretary of State imagine that the counterfeiters, the smugglers and the others will welcome the introduction of plain packaging for the tobacco industry?

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

I know that there have been strong views on this issue in all parts of the House, and the Department of Health has undertaken a consultation on it. We await the results of that consultation, which will be analysed carefully. I am sure that the interesting counterfeiting issues that the hon. Gentleman raises will need to be considered alongside the health issues.

[Sir Bob Russell (Colchester) (LD)]

With Chinese new year celebrations and firework displays this weekend, will the Minister urgently receive a delegation of MPs and immediately suspend new regulations—which have just been implemented five years early—that will lead to the collapse of the British fireworks industry?

[Jo Swinson]

I know that my hon. Friend is speaking up for the industry on this issue. I met him at the end of last year. BIS policy officials have had two meetings with the industry. Lawyers have also had meetings, and a further meeting is due next week to try to resolve the issue he raises. Yesterday I received a letter from him and the hon. Members for Bracknell (Dr Lee), for Sherwood (Mr Spencer) and for Huntingdon (Mr Djanogly). I will be happy to meet them next week as a matter of urgency to discuss this.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

There are concerns that the UK is lagging behind its competitors in the registration of graphene patents. The USA has more than 1,100; we have just 46. Does the Minister agree that this is an example of why the Government need to provide more strategic direction and to support important technology sectors for the future?

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

I congratulate the Under-Secretary of State for Business, Innovation and Skills, my hon. Friend the Member for East Dunbartonshire (Jo Swinson) on taking the Groceries Code Adjudicator Bill through Parliament, and on allowing the adjudicator to impose fines. Will she look favourably on the adjudicator taking their own initiative in investigations from day one?

[Jo Swinson]

I thank the Chair of the Environment, Food and Rural Affairs Committee for her question and, indeed, MPs from all parties who have campaigned for the adjudicator. Christine Tacon was announced as the adjudicator-designate a few weeks ago and we are looking forward to the pre-appointment scrutiny by the Business, Innovation and Skills Committee. We want to make sure that the adjudicator will be able to undertake investigations where there is any suggestion or suspicion that the code is not being complied with.

[Jessica Morden (Newport East) (Lab)]

Last week, at a time of great uncertainty on the high street, the Co-op, working with the Farepak victims committee, announced that it would be the first major retailer to protect and guarantee customers’ Christmas savings in the future. Will the Minister welcome that move? May I also thank her and the Secretary of State for their work with Farepak victims? Long may it continue for consumer protection in the future.

[Jo Swinson]

The hon. Lady is right to highlight the excellent scheme that the Co-op has just announced. It should be celebrated and I hope that other companies will be encouraged to follow suit, because I know that giving this kind of protection to customers will be very welcome indeed. I will continue to work with her and other hon. Members on the issue.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

Although I welcome the fact that university applications are up and that a higher proportion of them are from people from poorer backgrounds, will the Minister for Universities and Science join me in reminding my young constituents that, whatever the fees they are charged, they will only start paying them back once they earn more than £21,000?