BHS

Debate between Joan Ryan and Anna Soubry

Monday 25th April 2016 Commons Chamber

[Anna Soubry]

I completely agree with my hon. Friend. It is the old story: you don’t know what you’ve got till it’s gone. Unfortunately, BHS is one of those retail chains that has suffered from the presence of online sales and the lack of the support that companies traditionally had. We are old enough to remember when people always shopped in the same places. Those days have gone—there is no longer that sort of loyalty—but here is a perfect opportunity: the shops are still open and still taking vouchers, so if someone has BHS vouchers, they should go and spend them and support the staff and, as ever, the great British high street.

[Joan Ryan (Enfield North) (Lab)]

I am pleased to hear the Minister say that any impropriety will be taken extremely seriously, because there is a serious concern, given what we have heard about the previous surplus of at least £5 million turning into a pension fund deficit of £571 million, over a period when the company paid hundreds of millions of pounds to Sir Philip Green and his family. I reiterate that because it should be said time and again until we get satisfactory answers. On the workers, the Union of Shop, Distributive and Allied Workers has offered to work with management to help consult staff at this difficult time. Will the Minister join me in encouraging BHS to take it up on this offer?

[Anna Soubry]

Absolutely. I am a firm supporter of good, responsible trade unions. I am a former shop steward myself, so I know the invaluable role that trade unions can play in representing workers, as long as they act in a good, sensible and responsible way—as they are doing, if I may say, in our steel industry.

Carcraft

Debate between Joan Ryan and Anna Soubry

Wednesday 10th June 2015 Westminster Hall

[Anna Soubry]

It would be absolutely wrong of me to give any advice, because I do not know the answer to that question. I can make full inquiries and write to the hon. Gentleman, but I do not know the answer. Some loans were retained by the Carcraft group, and what happens to them will depend on the type of loan that the customer had. I understand that borrowers are being notified about that.

Additionally, as we have heard, Carcraft provided an MOT, servicing, warranty and roadside assistance package known as a “Drive Happy” plan. The administrators are not able to provide for continuation of that service and have informed my officials that they intend to contact all affected customers with such a plan, to make arrangements to reduce monthly payments so that they will no longer be paying for that service. If any consumers are worried about their payments or how services might be affected, they should speak to Citizens Advice or other advisors who can explain their options and give them the quality advice they obviously need.

Hon. Members have raised concerns about directors’ conduct, and there are obvious concerns about the effect of Carcraft’s closure on jobs and the local economy. I will talk briefly about the actions that Government can take if director malpractice is suspected. Whenever a company enters administration, the conduct of its directors is looked into by the administrators. If evidence of unfit conduct is found, a director can be disqualified from acting as a director for between two and 15 years. My officials have been proactive in contacting the administrators to discuss the directors’ conduct in this case; we have already raised the matter with them.

As I set out in my response to the written question of 27 May from the hon. Member for Heywood and Middleton, the Insolvency Service made early contact with the administrators to discuss the circumstances surrounding the closure of Carcraft’s business, including the conduct of the directors. The Insolvency Service takes those matters seriously, as do all Governments. The Government are also talking to the Financial Conduct Authority, which regulates the financial services part of the Carcraft group. If there is cause for concern, it will be identified and investigated and any appropriate action taken, as I have explained. It is too early in the administration of Carcraft to form a view on the directors’ conduct, but I would mention that last year the Insolvency Service disqualified more than 1,200 directors in circumstances where their conduct fell short of the high standards that we expect of them. That of course means that they cannot do such work, which is a genuine punishment and says that their conduct does not entitle them to occupy what is an important role in any business.

As for redundancy payments, one of the hardest-hitting consequences of any insolvency is the risk of job losses and the impact on people’s lives. Although it is little consolation for the nearly 500 staff involved, they can claim certain outstanding payments, including up to eight weeks’ arrears of pay from the Government’s redundancy payments service, which has a maximum £475 a week. To make that happen as quickly as possible, the Government have already set up a dedicated team for former Carcraft employees, and to date 407 people have made use of the service—I am assuming that that is from around England and Wales. Their claims are being processed and moneys owed will be paid out as soon as possible. I want to make it clear that if any hon. Members have a single constituent who is not receiving the money they are owed, as a matter of some urgency they should not hesitate to write to me or to grab hold of me around the parliamentary estate. I take such matters extremely seriously. It is bad enough for someone to lose their job, but then not to have money that is owed to them is completely unacceptable.

[Joan Ryan]

I thank the Minister for her offer to be available, because I was a little worried about having difficulty in getting hold of the administrators. It is helpful to know that we can raise the matter on behalf of constituents who are in such a difficult situation.