Post Office Horizon: Redress
Jonathan Reynolds Excerpts(2 years, 1 month ago)
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The Secretary of State for Business and Trade (Jonathan Reynolds)
With your permission, Madam Deputy Speaker, I would like to update the House on the Government’s response to the Horizon scandal. How appropriate it is to see you, a former Business and Trade Minister, in the Chair.
My priority as the new Secretary of State is to ensure that victims of the scandal receive the redress that they deserve. Over the past few weeks, I have begun meeting with some of the postmasters whose lives have been so badly damaged by those events. Their stories are harrowing, but their resilience and steadfastness in seeking justice are inspiring. I am also grateful for their candour in sharing insights on how the various compensation schemes can be improved.
May I make a personal point, Madam Deputy Speaker? I know I speak for hon. Members across the House when I say that it fills me with sadness to have to stand here today and address such a significant failure of the state. The role of Government must be to do right, seek justice and defend the oppressed, yet Governments have too often had to be forced into action by brave, tireless and resilient campaigning. Once again, I pay tribute to the Justice for Subpostmasters Alliance, and to campaigners such as Jo Hamilton, Lee Castleton and Sir Alan Bates—incidentally, I add my personal congratulations to Sir Alan on his recent wedding. Without their tireless efforts, justice may well never have been done in this case. As we stand here today, in the shadow not just of this scandal but those of Grenfell, infected blood and several more, I know that it is the firm conviction of everyone in this House that we must do better. This is an issue not of politics but of justice.
In that spirit, I cannot speak of the new Government’s work to address this wrong without again acknowledging and appreciating the work of Lord Arbuthnot and the new Lord Beamish—formerly the Member for North Durham—as well as that of my friend the hon. Member for Thirsk and Malton (Kevin Hollinrake) as Minister. The announcements that we make today are built on their efforts to hasten redress payments and quash wrongful convictions.
Earlier in the summer, the new Government announced the launch of the Horizon conviction redress scheme. I am pleased to report that the first payments have been issued and good progress made on processing the claims received to date. As was the case for the group litigation order compensation scheme, the Department will be setting a target to make, within 40 working days, the first offer to 90% of those who have submitted a full claim. Additionally, the Post Office has now settled over 50% of cases on the overturned convictions scheme, with 57 out of 111 cases fully settled. The Department has also now received over 50% of GLO claims and settled over 200 of them.
Progress has also been made on implementing the £75,000 fixed-sum awards on the Horizon shortfall scheme. As of 30 August, over 1,350 claimants who had previously settled below the £75,000 threshold have been offered top-ups to bring them to that amount, and the Post Office will shortly begin making fixed-sum offers to new claimants. Those interventions will have a significant impact on ensuring that postmasters can access redress swiftly and simply. However, we recognise that this option will not suit everyone and does not address all the concerns raised by postmasters and their representatives. That is why we are taking further action today.
The Horizon compensation advisory board recommended last year that we introduce an independent appeals process for the Horizon shortfall scheme. Today I am pleased to announce that we have accepted that recommendation. That appeals process will enable claimants who have settled their claim under the HSS to have their case reassessed, with the benefit of any new information that they were not able to include in the original application. It will be delivered in-house by my Department, and we will apply the lessons learned from redress schemes to date to ensure that the process is easy for postmasters to engage with and that outcomes are delivered at pace. We will announce further details in the coming months.
There will be no obligation for postmasters to appeal their settlement, and no doubt many will be content that their claims have been resolved fairly. I know that financial redress will never fully compensate victims for their suffering, but we want to help bring some closure to postmasters as soon as we can, which is why we will establish the new appeals process as quickly as possible.
In summary, the new Government will do everything in our power to deliver justice for postmasters, to bring them closure and to ensure that such a national tragedy is never allowed to happen again. I commend this statement to the House.
Madam Deputy Speaker (Ms Nusrat Ghani)
No doubt that statement will mean a lot to many constituents, including those in my constituency of Sussex Weald. I call the shadow Secretary of State.
Kevin Hollinrake (Thirsk and Malton) (Con)
I thank the Secretary of State for advance sight of his statement and for his kind words. I assure him that we will continue to work collaboratively to put the interests of postmasters first. I also associate myself with the congratulations offered by the Secretary of State to Sir Alan Bates and Lady Suzanne Bates, and the recognition of their contribution and that of others.
As the Opposition promised during the very first urgent question of this Parliament, Ministers know that they will receive our full support to deliver compensation swiftly and quash the convictions of those wronged by this terrible tragedy. In his statement, the Secretary of State has set out a new appeals process for those who have already settled their claim under the Horizon shortfall scheme. I welcome that step. I know that the Department is implementing the work of the Horizon compensation advisory board, which was instrumental during my time in office, and will no doubt be supporting the new Government.
However, I have some questions about the Secretary of State’s statement. First, he confirmed that the appeals process will be open for claimants who have settled their claim under the HSS, but it is restricted to those who have new evidence to support their case. In the same breath, he recognised lessons learned from redress schemes to date, indicating that his Department is aware of the flaws in the scheme, which I also acknowledge. Crucially, will the appeals process also be available, as it should be, to all claimants, not just those with new information? Given the accepted flaws in the scheme, it would be wrong to leave individuals without the opportunity to appeal. If people choose the £75,000 top-up, will they be entitled to appeal? If so, there is a risk that for those wanting to go through the appeal process it will be a slower process because of the number of people seeking to appeal.
Secondly, the Secretary of State says that the appeals process will be up and running as soon as possible. Can he set out a specific timeline? Finally, on appeals, can he tell the House whether these individuals will be entitled to legal representation, as is the case in the GLO process?
Could I also ask the Secretary of State some questions about the broader compensation schemes? Some £289 million has been paid to over 2,800 claimants across four schemes. I was alarmed to find, however, that only six claims have been offered redress through the Horizon convictions redress scheme, and no full and final settlements have yet been made through that scheme. Can he explain those numbers?
I was also concerned to hear the Secretary of State say last week that only 130 letters have been written to postmasters who have had convictions quashed—I think there are 700 such postmasters—and that this was a matter for the Ministry of Justice, rather than his office. I am sure he realises that finger-pointing within Government will not wash with the people who have been through these difficulties and this horrendous scandal, so I must therefore push him on what steps he has taken to mitigate the delays in sending out letters to those affected.
Finally, delay in all the schemes is at least partially the result of an adversarial process of lawyers arguing with lawyers. As a remedy, we were working very hard for Sir Gary Hickinbottom, scheme reviewer in the overturned convictions scheme, to be appointed across all three schemes to expedite claims. Can the Secretary of State confirm that that vital appointment has now been made?
Jonathan Reynolds
I am grateful to the hon. Member for his response, and for the tone and collaboration that we tried to model when we were sitting in opposite places in this Chamber. I believe that helped advance what was a difficult piece of legislation to put on the statute book, particularly during a wash-up process, but was the only real vehicle for delivering what we all wanted to see. He has asked me a number of questions; all are absolutely reasonable, and I am happy to respond to them.
In a situation where someone has already received a top-up to £75,000, the hon. Member is right to say that the appeals scheme would not be available. It is a choice between the two best methods of redress and satisfaction for the postmaster. I recognise what the hon. Member has said—that, given the issues with the speed of delivering redress, having that system clogged up would not be satisfactory to anyone—but I think that both options represent reasonable ways forward for people who are in that position.
The hon. Member asked specifically about the remit of the appeals scheme, and I have listened to what he said. The reason we are announcing today that we will take this scheme forward, but will then consult with postmasters to make sure the eligibility criteria are correct—he asked about the timeline, which is just a matter of months—is to make sure that we do not have to revisit the scheme, and can all be satisfied that crucially, postmasters themselves have confidence in it. That is the intention, so I am grateful to the hon. Member for his comments about the remit of the scheme.
The hon. Member asked about legal representation. Yes, that is part of the scheme, again learning lessons from where we have been in the past. As he knows, most of the schemes have now been adjusted to reflect that, but I absolutely take his point about new announcements.
I want to be clear about the difficulty that has existed with the Horizon convictions redress scheme. To update the House, I will give the hon. Member the figures: so far, 180 letters have gone out from the Ministry of Justice. Including those letters and the people who have registered with the Government who perhaps have not all received a letter yet, there are now 276 claimants. I will make the appeal again: while we are doing everything we can with Ministry of Justice colleagues to make sure those letters go out, people can proactively register with the Government. To be frank, this has been a frustration. When the hon. Member and I were having our conversations when we sat in different places in the Chamber, neither of us perhaps knew the state of the database and the records, and—having passed the legislation—the frustrations we would face in getting to people. However, doing so is clearly integral to sorting this out.
Finally, the hon. Member asked about the scheme reviewer. If I may, I will come back to him on that; I will write to him to tell him the up-to-date situation.
In summary, I say again that we will work with all parties and all postmasters to get redress at pace, and to learn the lessons from where things have not gone well in the past, to make sure new announcements carry the confidence of the people who really need to have confidence in them.
Madam Deputy Speaker (Ms Nusrat Ghani)
Members should continue to bob if they want to be called. I am going to call everybody, as I know the Secretary of State also wants to respond to everybody. I call the previous Chair of the Business and Trade Committee.
Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)
I add my congratulations to Sir Alan Bates and Lady Suzanne on what looked like a very happy day.
I welcome what the Secretary of State has set out for the House this afternoon. When our Select Committee reported back in March, we said that trust in the Post Office was fundamentally broken and that the appeals scheme needed to be independent. This is an important step in that direction, but sub-postmasters have told me this morning that there is still a problem with the time it takes to get offers back when an offer is contested. The claimant’s lawyers have a fixed amount of time to put in a claim; when that claim is contested, it is taking far too long for Addleshaws, in particular, to come back and provide a second offer. What comfort can sub-postmasters take from the Secretary of State’s announcement today? This whole House agrees that justice delayed is justice denied.
Jonathan Reynolds
I am grateful to my right hon. Friend, who will, I hope, see his work as Chair of the Select Committee reflected in this announcement—specifically, that we are setting the target to issue initial offers to 90% of claims within 40 working days of receiving a full claim. On the point of how that is defined, a full claim is one where, following legal assessment, it is deemed that it does not require any further evidence to assess the claim further. Once that is in, the targets, which his Select Committee rightly called for to make sure redress is delivered at speed, are part of this process.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Liberal Democrats spokesperson.
Tim Farron (Westmorland and Lonsdale) (LD)
I thank the Secretary of State for sight of the statement and, indeed, for his decision to come to the House at this early stage to update us on progress.
I think it is worth saying that we are dealing with a catastrophic injustice that has affected hundreds upon hundreds of families—people who have paid with their livelihoods and, in some cases, tragically, with their lives. There is a complete lack of trust in Government, of whatever political colour, over the last 20 or so years because of this. That is why his answer to the questions raised already about the number of sub-postmasters who have been paid interim payments—only six, on the last data available, under the Horizon convictions redress scheme—is such a key issue. Likewise, as we have heard, the latest data show that fewer than one in six wrongly accused sub-postmasters have received letters confirming the quashing of their convictions.
Given this lack of trust—this mistrust—in Governments of whatever kind and in the Post Office management as a whole, would the Secretary of State also turn his thoughts to rebuilding trust in the Post Office management and in the network in the long term? In the eyes of the public, the brand of the post office is solid, but in the eyes of those who work in the industry and those who may come in as sub-postmasters, it is far less so. We were delighted in my constituency recently to see the reopening of post offices in Shap and Kirby Stephen. It was wonderful to see those two reopenings, but in Grasmere, Hawkshead and Stavely we are without post offices. In all three of those cases, it is in part because the former sub-postmaster, while not always directly affected by the Horizon scandal, but with disgust at the Post Office management, has left the industry and left those villages without a post office.
What can the Secretary of State say to this House and to the current cadre of sub-postmasters, and those who may want to join that cadre, to encourage them? Will he focus on pastoral care, financial support and other things that will bring about a package of inducements and enticements, so that those people who have felt let down so badly by Post Office Ltd management over the last 20 years will feel that the Post Office is something they can commit their lives to for the good of our communities and country as a whole?
Jonathan Reynolds
I am grateful to the hon. Member for that question. Specifically on the figures for the Horizon convictions redress scheme, he is right to say that there are only six claims where interim payments have been made so far, but I can assure him that I would expect that to rise rapidly following the announcement we have made, and I will keep the House informed as to all of that. I agree when he says that redress of this scandal has to link to the future of the Post Office itself. I think he is absolutely right. I mentioned in oral questions last week that I will appear before the inquiry. It is about not just an assurance on the lessons that will be learnt from the inquiry, but how that will affect decisions going forward.
Like the hon. Member, I have seen the post office network change a lot in my constituency. I was at the new banking hub in Stalybridge on Friday. I think the public support for the brand and for the people on the frontline is very strong, but the business model, as it stands, is not fit for purpose. Postmasters deliver essential services, but they do not make enough money from those essential services. I think too much of the money they make goes into the centre and does not return to the frontline in a way that is a viable business model for all of our constituencies. The issue of how the Post Office functions as an organisation has to be tied not just culturally to the reforms and redress we are all seeking to deliver, but to the business model.
Kate Osborne (Jarrow and Gateshead East) (Lab)
I welcome today’s statement on the appeals process, and thank Ministers for their engagement with me on this issue and in advance of the meetings we will have later this week. Horizon victims are understandably wary of Post Office involvement in the compensation schemes, so can the Secretary of State confirm that the appeals process he has announced today will be completely independent of the Post Office? As well as pushing for Horizon victims finally to get full compensation, what work is the Department undertaking to ensure that people are held to account for their roles in this scandal?
Jonathan Reynolds
I thank my hon. Friend for her question and recognise her contribution on this issue over many years. She is right to say that the appeals process I am announcing today will be run in-house by the Department for Business and Trade. Obviously, information will need to be provided by the Post Office, but an in-house scheme will be delivered. On redress, we are all following Sir Wyn William’s inquiry closely. We will need that to conclude and essential information will come out of it. After that, there will need to be a way to ensure that those findings, whatever they may be, are honoured in full and that we learn from them. In a number of cases, there is a need to hold people to account for their actions throughout the scandal.
Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
Dewi Lewis of Penrhyndeudraeth is a former sub-postmaster who endured four months of imprisonment and had to wear a tag for another four months for a crime he never committed. He has not wanted me to raise his case in the Chamber before, because he said that to have his hopes raised and then dashed would destroy him: two weeks ago, he got a letter, I am glad to say, to say that his convictions were quashed. But the damage that has been done to the reputation of the Post Office in rural Wales is now so immense that people are no longer prepared to work in post offices. I welcome that the Secretary of State says that he believes the business model is no longer fit for purpose, but how can we be sure that we will have strategic planning to serve those communities that were once served so well by people like Dewi Lewis?
Jonathan Reynolds
I recognise very much what the right hon. Member is saying. I have had personal friends who were directly affected by this issue. Even though I was their MP as well as their friend, they did not feel able to tell me about it because they were so concerned about the impact on their reputation—they could not even tell a friend who was a Member of Parliament, even though the issue was clearly affecting their lives very significantly. I am sure that, like me, she has had situations where there is one provider of postal services in a relatively rural area—I represent Greater Manchester as it gets out towards rural Derbyshire—and people want the service to continue, but for various business reasons the provider is moving on. It is sometimes hard to find someone willing to take that business on, not just because of the scandal, but because of the business model. I assure her that the work we are already doing is about the future and recognising that, and making sure we have people in charge who recognise that that has to change. It is going to be a substantial piece of work for me and the Minister, but it is essential. We could not just provide redress for this scandal, without looking to the future and making sure we get this right.
Grahame Morris (Easington) (Lab)
I thank the Secretary of State for this statement. I also have constituents who are affected and I am grateful for the information about the appeals system. What steps are Ministers in the Department taking to secure the future of the Post Office network, and to reassure people who are considering becoming postmasters that they will not face the same unacceptable culture pervading Post Office senior management that was highlighted by the Business and Trade Select Committee, and that led to the Horizon scandal happening in the first place?
Jonathan Reynolds
As I have said in previous answers, we have to understand that that scepticism and concern is valid. The scale of this scandal is so large that people will challenge their Members of Parliament on how they feel about what they may be asked to do, and the risk that that poses to what is still an essential business and provider of services to all our constituents. That is key. I seek to reassure them by recognising the steps and commitment that we have to address, but also the future of a business model that delivers the kind of remuneration and operates in a way that recognises the scale of the failure in the past. If I was a postmaster, I would welcome those words, but I would want to see action. That is the only way we will be able to do that.
Mims Davies (East Grinstead and Uckfield) (Con)
I welcome the update to the House today. We saw through the ITV series that Lord Arbuthnot, like many, was an exemplary constituency MP and something for us to all aspire to. Many campaigned for so long in this place to recognise this scandal. I congratulate Sir Alan Bates and Lady Bates on their nuptials. Can the Secretary of State assure the House that full engagement is being undertaken with the MOJ, that the learnings are being understood and that those expecting their convictions to be quashed will hear imminently, as all our constituents will want to see justice?
Jonathan Reynolds
I very much echo the hon. Lady’s point that, if there is one bit where our political system operated well in this, it is the constituency link and the classic Member of Parliament’s surgery, although the story as a whole is clearly unsatisfactory. I recognise her words on Lord Arbuthnot and the cross-party campaign that came about. The Ministry of Justice issue is paramount and frustrating. The state of the records has delayed the process, and that is a real frustration, but she will understand that, following so much failure, if a case emerged where a letter was sent out incorrectly after all that people have been through, that would clearly be outrageous. Given I am now accountable for the scheme, I absolutely cannot have that. I could talk about some of the things we have inherited, but I do not think that is particularly helpful. I will simply give the hon. Lady the assurance that she rightly seeks: this issue is of maximum importance and we are working at pace with Ministry of Justice colleagues and the devolved authorities in relation to justice systems around the United Kingdom.
Clive Efford (Eltham and Chislehurst) (Lab)
I welcome the Secretary of State’s statement. I heard what he had to say about the involvement of the Post Office in the appeals process, but may I press him a little further? Given the mistrust in the Post Office that has built up over many years, even though the Post Office may only be providing information to the Department, is his Department satisfied with how the Post Office is providing that information? Have there been any occasions where the Secretary of State has had to challenge the Post Office? That is the degree to which people mistrust the Post Office in this process, and that has been the case for many years.
Jonathan Reynolds
I think my hon. Friend will have heard in my earlier answers that we have chosen to deliver this scheme in-house in the Department for Business and Trade, reflecting the concerns he is reasonably expressing. To command people’s confidence, they want to see the schemes not only set up, but delivering. That is why the updates to the House on how we are progressing under each scheme are so important, and I commit to doing them regularly.
Gregory Stafford (Farnham and Bordon) (Con)
I associate myself with the comments made on Lord Arbuthnot, who is a predecessor but one for part of my constituency. The Secretary of State has spoken about the letters quashing convictions, but does he not understand how important it is that those waiting for the letters get them swiftly? Will the Lord Chancellor come to the House to give us an update on the progress being made with those letters?
Jonathan Reynolds
The hon. Gentleman will have heard my answers. He would surely agree that to get things wrong with these cases would be a terrible problem. Some of the errors and the problems that have been caused have been a frustration, but I want to assure him. I think it is better, in matters relating to this scandal, that it is the Department for Business and Trade, given the interests of Members, that provides the updates on these matters. However, I can assure him that work is proceeding at pace, and people can proactively register their credentials to ensure that there is no delay if they are in a position where they know they are one of the wronged parties.
Natasha Irons (Croydon East) (Lab)
I thank the Secretary of State for the update today. My constituent Mahesh, who visited me at our surgery on Friday, told us that he had been assured that his conviction would be overturned—he was wrongfully convicted under the Horizon scandal—but he is frustrated by the length of time it has taken for it to be quashed. It is preventing him from moving on with his life. Can the Secretary of State update us on what work is going on to speed up the process to quash these convictions, so that people like Mahesh in my constituency can move on with their lives?
Jonathan Reynolds
I very much recognise the conversation that my hon. Friend has had with her constituent, and her need and desire to progress that claim. The issue is about ensuring that the records are accurate. Cross-referencing between Ministry of Justice databases and court documents is proceeding apace. If her constituent has not yet had a letter and needs to register their credentials, they can do so, but I assure my hon. Friend that this is of maximum priority.
Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)
I thank the Secretary of State for the statement. It is welcome that the appeals process has been set out. I pay tribute to my SNP colleague and former MP, Marion Fellows, who, as many Members will know, put considerable effort into the issue. She has provided me with wise counsel on it. How satisfied is the Secretary of State with take-up so far—there is obviously some helpful detail in the statement—and what awareness campaigns are planned? There may still be people out there who are not aware that they can claim compensation. It is important that as many methods as possible are used to get to them.
There have recently been complaints, even from legal experts, that the application form for redress is overly complex, and that even experts would struggle to fill it in. Can the Secretary of State look to simplify it, obviously without our getting away from the key points, and bearing in mind the data that need to be collected?
Finally, I associate myself with the comments made about the wider impact. It is only a week since the Grenfell report’s publication, and mention was made during the previous statement about the covid contracts. These issues go right to the heart of trust in the Government, which is a really important point to address.
Jonathan Reynolds
I echo the hon. Gentleman’s comments about Marion Fellows and her contribution to the scheme. He asks how satisfied I am. I will not be satisfied until everyone has had redress; it is as straightforward as that. There was a group of about 2,417 claimants under the Horizon shortfall scheme, but following the television drama, a whole range of people who were not aware that they were eligible came forward, which was incredibly positive. I think that over 1,500 people came forward. Indeed, Members may still be finding people who are coming forward because of the awareness that raised. We should be thankful for the power of the arts to get a message out to people. Given the situation, none of us can be satisfied until we can be sure that we have got redress to everyone. That is what this Parliament collectively has to commit to.
Markus Campbell-Savours (Penrith and Solway) (Lab)
Will the Secretary of State outline what the Government are doing to investigate the predecessor Capture system?
Jonathan Reynolds
Members may know that Capture was the precursor to the Horizon software. It is of concern to us, and we are investigating. The forensic accountants appointed to look into the issue are due to report fairly soon, and as soon as we have their findings, we will be able to update the House on steps that may be necessary.
Jim Shannon (Strangford) (DUP)
I thank the Secretary of State very much for the statement, and for the clear commitment to closure for all those affected. He said that the role of Government is to do right, to seek justice and to defend the oppressed. I say amen to that; that is exactly the Government’s role. It is past time that our handling of the scheme came to an end, but that can happen only when every affected postmaster and postmistress has been restored reputationally and financially, and when lessons have been learned to ensure that our reliance on computers is never again the vehicle of persecution. Will the Secretary of State assure me and the House that that has been done, and is in place right now?
Jonathan Reynolds
I thought that the hon. Member might recognise the words from Isiah that I used in the statement. The failure that goes to the heart of what we are talking about today is not just about the reliance on computer systems over the testimony of people on the frontline; it is also about the culture of organisations and how government operates. We will definitely turn a page on all of that, but there are Members in the Chamber who, like me, have been here not just for infected blood and the Grenfell statement last week, but for Hillsborough and Bloody Sunday.
We must reflect on what has been a very difficult set of findings. I think that we can commit to making sure that we learn the lessons from them, and take them forward. That is the challenge for all of us who believe that we are here to do good, and to do as I said in the statement. There is more to do on that, but we can move in the right direction, and that is certainly what I and my Government Ministers will do.
Ms Polly Billington (East Thanet) (Lab)
As my right hon. Friend will be aware, sub-postmasters such as my constituent have experienced an enormous amount of devastation without even having been convicted—30 years of reputation absolutely destroyed. Although he has had some compensation, he still does not know whether he has had the right amount of money, and whether he is paying the right amount of tax, and he still does not have an admission of responsibility and failings from the Post Office. How much of that will be dealt with by this redress scheme?
Jonathan Reynolds
I understand the situation, and the need to have different redress schemes to correct specific problems. I understand the constituent’s sentiments, as described by my hon. Friend. I would like to make sure that we are doing everything we can to provide the answers in every case. If she writes to me about that case, I will look into it personally and advise her, so that she can advise her constituent to make sure that, as far as possible, we give the right advice.
Rupert Lowe (Great Yarmouth) (Reform)
I am delighted to hear from the Secretary of State that progress is being made. Recompense, apology and all the things that should go with that cannot come too soon. This House needs to remember that but for the tenacity and the persistence of Sir Alan Bates, this issue may never have come to light. This is an issue of the state versus the individual. Given the loss of confidence in the state, it is essential that the House reassures individuals that the state will not bully them. That means a full investigation, and people who brought arguably malicious prosecutions must be brought to book. I would like his reassurance that that will happen.
Jonathan Reynolds
I very much agree. This is a major scandal, and we must ensure that the wider lessons and the wider lack of trust, which he correctly mentioned, are addressed in our response. That is fundamental. I have said many times that we might never have discovered the scale of this injustice were it not for the campaigners. That is shocking, and we must all reflect very deeply on that.
Blair McDougall (East Renfrewshire) (Lab)
I thank the Secretary of State for his comments, and for his recognition that the issue is about more than redress; it is about the restoration of trust. It has cast a long shadow in constituencies across the country. In my constituency, after years of sub-postmasters desperately trying to keep post offices open in the face of programmes of closures, we now face a challenge to get people to go into them. What is his message to those people, and those wondering whether the culture has changed? What lessons are the new Government drawing, across the public sector, to ensure candour, and to make sure that the culture that we saw in the Post Office is not replicated anywhere else?
Jonathan Reynolds
I recognise very much what my hon. Friend says. As I said in my earlier answers, there is an absolute need to not just provide redress but learn lessons for the future of the Post Office and all institutions of the state. Crucially, we must ensure that a business model is in place that rewards postmasters with a decent return for providing an essential service, in an organisation that supports their frontline activities and gives them the income and the prosperity that they deserve for that.
Robin Swann (South Antrim) (UUP)
The Secretary of State knows that 26 postmasters in Northern Ireland were wrongly convicted. I thank him for his work with the Northern Ireland Executive to bring forward the necessary legislative process. I seek his reassurance that the redress scheme will be equally open to Northern Ireland postmasters who were wrongly convicted because of a UK-wide issue. Will the redress scheme apply to them as well?
Jonathan Reynolds
People are aware that it is fairly challenging to have a situation in which justice is devolved across the United Kingdom. At times that has very much affected the debate in this House. I believe that what the hon. Gentleman says is the case, but I will write to him about the Northern Irish situation to give him the information that he needs.
Jim Allister (North Antrim) (TUV)
I welcome the Secretary of State’s announcement and look forward to things proceeding to the necessary conclusion. Redress is about righting wrongs, but there was more than one wrongdoer—there was also Fujitsu. Last week, the Prime Minister told us that firms that had fallen short in relation to Grenfell would be removed from Government contracts. Bearing in mind Fujitsu’s actions and that there was at least one suicide, will it be treated in the same way? Will there be redress against its unlawful actions as well?
Jonathan Reynolds
I agree with the hon. Member. That is a crucial and important question. I welcome Fujitsu acknowledging its moral responsibility in relation to these matters. I understand that it is participating fully with the Sir Wyn Williams inquiry. We will need that inquiry to conclude. We should not pre-empt that in any way and take any decisions before that process has been gone through properly, given that we all support it. Accountability will flow from the inquiry. It will be an important step and it will affect many, many organisations that have been part of this story. Fujitsu will clearly be one of them.
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Jonathan Reynolds Excerpts(2 years, 1 month ago)
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Ashley Dalton (West Lancashire) (Lab)
The Secretary of State for Business and Trade (Jonathan Reynolds)
small businesses are the beating heart of our high streets and communities, and they are essential to economic success and our growth mission. We want growth in every part of the UK, and small businesses have an enormous role to play in that.
David Burton-Sampson
In Southend and Leigh, there are over 7,100 small and medium-sized enterprises, and in areas like Leigh Road, the Broadway and London Road, very few units are empty. Will my right hon. Friend meet me and representatives of the local business community to understand the challenges they face, and to discover some of the opportunities that businesses have taken to really capture the market?
Jonathan Reynolds
I welcome my hon. Friend to his place. I have always enjoyed my visits to his constituency, particularly enjoying an ice cream at Rossi’s ice cream parlour. Those visits had a serious purpose: they helped us to build our programme for small business, which recognises not only issues such as late payments, which this Department will deal with, but the need for the whole Government to tackle access to finance and retail crime—the things that make a difference. I will be delighted to make sure that my hon. Friend gets the meeting that he requests with my officials, so we can continue to do that important work.
Alex Baker
Small businesses in my constituency are keen to play their part in the Government’s growth agenda, but they tell me that they have been priced out of trading in Farnborough town centre because of rising costs. Will the Secretary of State join me in congratulating the Federation of Small Businesses, which this September celebrates its 50th year of supporting small businesses in the UK? What is his Department doing to ensure that small businesses that want to trade on the high street are supported to do so?
Jonathan Reynolds
I also welcome my hon. Friend to her place. I was pleased to meet her at the Farnborough air show, of which I am sure her community is extremely proud. I also extend birthday wishes to the Federation of Small Businesses, with which we work very closely, particularly on policies on issues such as late payments. I am always aware of the FSB’s incredible coverage; it has over 150,000 members across the country. Of course, the FSB began in Blackpool, so it is another great thing that the north-west of England has given this country.
Ashley Dalton
West Lancashire is rich in small and medium-sized enterprises and boasts several markets, but local business owners and market traders tell me that a lack of access to cash banking services is a major obstacle to growing their businesses and is placing additional costs on trading. How are the Government planning to support SMEs’ access to cash banking services, especially in rural areas?
Jonathan Reynolds
This issue is important to Members in all parts of the country, but I recognise my hon. Friend’s particular point about prosperous rural economies. Access to banking and financial services is a prime example of the fact that the Government will work across every Department to make sure we are giving businesses what they need. I am not nostalgic, and I understand that banking has changed, but small businesses need to be able to deposit cash on the high street. The key policy in this area will be run by the Treasury, but this is about changing the eligibility for banking hubs, so that we have more of them. We will see at least an additional 350 in this Parliament, including in my constituency; tomorrow, I will take a sneak peek at the new banking hub in Stalybridge.
Mr Louie French (Old Bexley and Sidcup) (Con)
Under the Labour Mayor of London’s proposals, many small businesses that drive vans via the Blackwall tunnel will soon have to pay charges of up to £40 a day—the congestion charge, the ultra low emission zone charge, and the Mayor’s new tunnel tax. Do the Government agree that this is neither fair nor good for economic growth?
Jonathan Reynolds
I thank the hon. Member for raising a matter that is important to his constituency. My Department works very closely with a range of devolved arrangements around the UK, and it is important to work with them with respect and good faith. This question is clearly for the Mayor of London, but I recognise the hon. Member’s point. We always take heed of the aggregate impact on business of everything at every level of government, which is why having an industrial strategy and a small business plan is key.
Sarah Dyke (Glastonbury and Somerton) (LD)
Small businesses in the south-west have a huge role to play in growing the economy. However, the latest south-west small business index score, which measures the confidence of small businesses, has declined by 23%—there has been a fall of 30 points since the last quarter. Will the Minister meet me to discuss how we can support small businesses across the south-west?
Jonathan Reynolds
Business confidence was strengthened considerably across the United Kingdom as a whole following the general election and the return to some political stability, which businesses of every size have sorely missed over recent years. However, I hear the hon. Lady’s point about her area and region, which is an important priority for me. I will ensure she gets the meeting she needs, so we can have a conversation about how we can work together to give people in her area a platform for success.
Mr Peter Bedford (Mid Leicestershire) (Con)
What action is the Government taking to support small and medium-sized businesses in getting access to finance, so that they can grow for the future?
Jonathan Reynolds
I thank the hon. Member for that question. That is a key issue. There have been positive developments in recent years, particularly through the work of the British Business Bank. The Government feel that the landscape for public finance institutions is now quite busy. The key policy is to ensure that the national wealth fund aligns with priorities in this area, expands the work that has been done, and ensures consistency, so there is a ready way for businesses to understand what can sometimes be a confusing landscape. Also, policies such as that on growth hubs will continue, so the interface for businesses is straightforward and simple, and, fundamentally, the product to access finance will be there when they need it.
Sarah Olney (Richmond Park) (LD)
It is a pleasure to see the Secretary of State at the Dispatch Box. Recent years have seen our SMEs struggling with reams of red tape when they attempt to trade with the rest of the world. Reporting this week has detailed the chaos and extortionate expense that small businesses in the agrifood industries have been dealing with since April’s introduction of the common user charge. I appreciate that this is yet another occasion on which the Government must deal with a mess not of their making, but what concrete steps is the Minister taking to support and empower our small businesses to trade internationally?
Jonathan Reynolds
I thank the hon. Lady for her kind words. I recognise that the Liberal Democrat manifesto shows that we have many common areas of interest, particularly on industrial strategy and trade. Under this Government, trade policy will match our domestic, economic and business priorities. We will be able to reset our relationship with the European Union because, to be frank, we are unencumbered by some of the internal politics of the last Government. We believe that we can make the most of opportunities around the world. Businesses tell me, as I am sure they tell every hon. Member here, that for many years, politics has been driving the agenda, rather than what businesses need. That will change, and has already begun to change. We will work with anyone in the House who is keen to provide a platform for success on knocking down barriers and getting businesses what they need.
Sarah Coombes (West Bromwich) (Lab)
Rachel Hopkins (Luton South and South Bedfordshire) (Lab)
The Secretary of State for Business and Trade (Jonathan Reynolds)
It is lovely to see you in the Chair, Madam Deputy Speaker, and it is great to see so much interest in the industrial strategy from my hon. Friends. However, I believe Members in all parts of the House can and should support the strategy, and we will seek to make cross-party arrangements. The need is great. We must improve on the UK’s poor business investment performance, which has been the lowest in the G7 for some time. We must recognise that so much chopping and changing of policy in recent years has been to our detriment. That will come to an end under this Government and this industrial strategy.
Sarah Coombes
The Black Country has long been a manufacturing heartland, home to numerous businesses, large and small, that support thousands of good-quality local jobs. Given the Government’s commitment to supporting British manufacturing, will the Minister set out how the upcoming industrial strategy will support manufacturing businesses in the west midlands?
Jonathan Reynolds
It is wonderful to hear a strong and authentic voice from the Black Country making a charge for industrial strategy; I thank my hon. Friend for her comments. The purpose of the industrial strategy is to capture a much greater share of the big international investment cycles, to explain straightforwardly to investors what those are, to provide consistency and to choose sectors. That does not mean the sectors that are not part of the strategy are not important, but is simply because the strategy must have priorities in it. I think my hon. Friend will support our choices, which will be revealed in the forthcoming weeks. Her area will play a major role in the success of the strategy for the whole of the country.
Luke Myer
A key plank of our industrial strategy must be green jobs, which Teesside is perfectly positioned to deliver. Inward investment is important—I had a positive meeting this week with a company that wants to invest millions in green fuel—as is backing British manufacturers, which will require the development of the country’s skills base. Will the Minister provide assurances about his work with the Department for Education to ensure vocational education is protected, and British manufacturing is protected as well?
Jonathan Reynolds
I thank my hon. Friend for his question. Teesside is a hugely exciting part of the country. There is so much to be proud of there, and so much to be excited about for the future, because of its advantages and the offer that it can make. He asks about green jobs. I have said many times that decarbonisation cannot be deindustrialisation; that is very important. We must recognise that the policy mix that we have inherited is not the right one for delivering decarbonisation, so changes will have to be made. For any business at any level, skills and access to talent in the labour market will always be the foundational issue. We work very closely with our colleagues in the Department for Education. The creation of Skills England and a better link between the skills system and immigration are key parts of that. Moreover, changing the apprenticeship levy to the growth and skills levy, which we co-designed with business, shows that we are addressing this agenda in a comprehensive way for the step change that is required to make our policy a success.
Melanie Onn
The Secretary of State will be aware of Air Products, which intends to invest £2 billion in northern Lincolnshire and green hydrogen projects. Does he agree that that investment would not only transform the south bank of the Humber, including my constituency of Great Grimsby and Cleethorpes, bringing 1,400 new jobs, but be an ideal project to include in the global investment summit? Perhaps he would be interested in meeting representatives of Air Products and me at some point.
Jonathan Reynolds
Let me say how wonderful it is to see my hon. Friend back in her place, representing her community and bringing with her even more expertise from the roles that she has held and the work that she has done in her time outside Parliament. It is a key priority for me to ensure that good jobs in the supply chain come with the transition that we all now support. I can tell her not only that we are interested in Air Products, but that my colleague, the Minister of State for Industry, already has a meeting with it scheduled in the next few days, and we look forward to working with my hon. Friend not just on that, but on many issues in the weeks and months to come.
Lauren Edwards
The voluntary sector had a strong voice under the previous Labour Government, and partnership with it was key to our achievements in office. How will my right hon. Friend ensure that the voluntary sector has a strong voice once again under Labour, so that we can deliver the Government’s industrial strategy, particularly as it relates to the creative industries and the mission to ensure high-quality care for all?
Jonathan Reynolds
It is also great to see my hon. Friend in her place. I enjoyed working with her in her previous role in local government, and she brings all that expertise and achievement with her to this House.
I wish to embed our industrial strategy for the long term. I want to focus it on long-term, sustainable, inclusive and secure growth that will cover many sectors of the economy, as my hon. Friend has mentioned. That will mean the Government having to work in partnership not just with business, but with civil society, trade unions and local and regional leaders in a way, to be frank, that we have not been doing for some years. We will make sure, as she requests, that that is a priority, and is visible in the work that we do.
Anneliese Midgley
A Labour Government brought secure, well-paid working-class jobs to Knowsley with Ford Halewood. My dad getting a job there changed my family’s life and lifted us out of poverty. It did the same for thousands of families like ours. Does the Secretary of State agree that any successful industrial strategy must provide good-quality, unionised jobs to lift living standards in areas such as mine?
Jonathan Reynolds
It is also a pleasure to welcome my hon. Friend to her place, and I thank her for those comments, with which I thoroughly agree. This is what it is all about—good work and good wages in every part of the country. I will work with anyone to deliver that. Her personal story shows the difference that such a policy can make. I often reference, for instance, the difference that Nissan’s investment made to communities in Sunderland. When such investment is made and got right, it delivers long-term benefits for communities and for the UK—more so perhaps than any other policy area. If we want to address, as I do, the UK’s profound regional inequality, policies such as these are so important, so I thoroughly endorse her comments. The industrial strategy is only one part of the growth mission, but it is at the heart of the pro-worker, pro-business agenda not just of my Department, but of the whole Government.
Rachel Hopkins
I welcome our Labour Government’s commitment to decarbonisation, particularly for Britain’s automotive industry. It is a vital step in securing the sector’s future and safeguarding high-quality jobs, which are critical for the Vauxhall plant in my constituency of Luton South and South Bedfordshire. Will the Secretary of State update the House on how his Department is working across Government, including with the Treasury and the Department for Energy Security and Net Zero, to drive innovative decarbonisation solutions, to ensure the success of our growth mission?
Jonathan Reynolds
My hon. Friend is not a new colleague, and her advocacy of the automotive sector, particularly given her constituency interest in Stellantis, is well known and welcome. This was a challenging area, particularly for her constituency, that we inherited. The previous Government had neglected engagement with the business. Since we took office, we have had extensive engagement with Carlos Tavares and the Stellantis team. The journey that the automotive sector has to go on for decarbonisation presents challenges, and there is a challenging picture across all of Europe, but the neglect of the previous Government has ended. Not only am I closely engaged on the issue, as are my ministerial team, but so is the Secretary of State for Transport, particularly in relation to the zero emission vehicle mandate—a key area of policy for the business. We will continue that work, and I will continue to keep my hon. Friend, and any other local MPs, updated, as we have done to date.
George Freeman (Mid Norfolk) (Con)
I welcome the Secretary of State and his team to what I think is one of the most important Departments in Government. As a sometimes lonely voice on the Conservative Benches advocating for industrial strategy, I signal support for his intention. I am sure that he agrees that the big challenge is to convert our phenomenal science and technology leadership into sovereign industrial supply chain leadership around this country. Having led the strategy for life sciences—quantum, engineering biology, fusion—may I ask whether he agrees that the key to this is cross-departmental Whitehall work, and ensuring that we do not end up with endless earnest, well-intended committees, but actually engage the small businesses, entrepreneurs and investors who are driving these sectors of tomorrow?
Jonathan Reynolds
I genuinely thank the hon. Member for those comments, because I am serious when I say that I believe that industrial strategy should command support across the political spectrum. That is the norm in a lot of comparable countries to ours. I recognise not just the work that he did, but the number of times he did it; he was called back repeatedly by the last Government to do that work. I am often struck by the comments that Lord Willetts made in the Policy Exchange pamphlet about the lack of a supply chain for offshore wind really benefiting Scandinavian economies, rather than ours.
There are common areas of interest, and to make this industrial strategy more successful than the very credible approach taken by the Conservative Government when Theresa May was Prime Minister, we need it to last longer, and for it to have consistency and permanence. I know that the advocates and designers of that policy wanted the chance to do that. The strategy must also be cross-departmental. It will be led by my Department, but it cannot be solely my Department that is engaged. I can tell the hon. Member that all my Cabinet colleagues share our objectives and a keenness to make this work. We do not just want strategies put on the shelf for the short or long term; we want the strategy to make a difference in the communities that everyone in the Chamber represents. I welcome that cross-party support.
Tim Farron (Westmorland and Lonsdale) (LD)
A successful industrial strategy obviously has to include a wise workforce strategy. In the lakes and dales of Westmorland, the workforce is far too small for our needs and is sadly shrinking—66% of hospitality and tourism businesses in the second busiest visitor destination in the country are working below capacity because they do not have enough staff. There are two main issues: a lack of affordable places for people to live, and an inability to bring people in from overseas. Will the Secretary of State support the extension of housing grants to build more social rented homes in Westmorland, and a youth mobility visa deal with the European Union, which would allow us to bring in people to supplement our far-too-small workforce?
Jonathan Reynolds
The hon. Member makes a really important point. We all have common areas of concern about the United Kingdom economy as a whole—the poor productivity since the financial crisis, the level of growth not delivering the living standards and public services that we want, and the low investment figure—but there are also specific challenges in each part of the country. The relationship between national policy, local policy and local leadership is the way to address those issues.
The hon. Member is an extremely skilled parliamentarian, and he added on a couple of issues that are clearly beyond the remit of the Department for Business and Trade—he did it very well. On the reset of the relationship with the European Union, there are practical, pragmatic measures that I will ask all Members to support, particularly on the recognition of professional qualifications, which I think could have been part of the deal, and what we are planning for food and agricultural products, if we can be successful in that negotiation. Those are our asks. There will be asks from the other side, and we will have to work with our partners to negotiate these things, but I recognise the hon. Member’s key point: yes, there are UK-wide needs, but there are specific needs in each area, and we have to get them right—for his area, for mine, and for everyone’s present.
Martin Vickers (Brigg and Immingham) (Con)
Further to the question about Air Products asked by the hon. Member for Great Grimsby and Cleethorpes (Melanie Onn), she and I met the company last night; as is often the case, business wants to move faster than the Government. Will the Secretary of State give an assurance that he will do his very best to ensure that his Department meets the deadlines that Air Products hopes for? In a wider context, as the hon. Lady said, northern Lincolnshire is a prime area for the renewables sector, and the Air Products development is key to that.
Jonathan Reynolds
The hon. Gentleman is right to say that business is often frustrated by the pace at which the Government can go. We are doing a considerable amount of work on how business interfaces with the Government as a whole, how that is managed as a relationship, and how we can assemble the different parts of the state in the way needed to respond to some of our big investment opportunities.
Frankly, in the past, we have often seen the UK miss out, particularly to, for instance, the French. The “Choose France” policy has been fairly successful from their point of view by taking some investments that I believe should have come to the UK. They have got ahead of us. We have to understand that the competitive environment that we are now in is extremely challenging and we have missed out on things. We have to change and get it right and better. I will work with the hon. Gentleman— I have already highlighted the meeting scheduled with my Minister of State—and he makes a fair point that we all recognise has to be addressed.
Jim Shannon (Strangford) (DUP)
I welcome the Secretary of State to his place and wish him well in the position he now controls. In Northern Ireland we have many businesses that can excel, but when it comes to an industrial strategy I particularly highlight the defence sector and the cyber-security sector. Just last Friday, my right hon. Friend the Member for Belfast East (Gavin Robinson) and I had a chance to visit Thales in east Belfast. Staff there explained to us that they employ almost 700 people on the site, and they also have an apprenticeships plan that is in action and are taking on another 25 apprenticeships. When it comes to expertise, they have the skills, experience and success, but they do not have the defence contracts, as they have in the rest of the United Kingdom. Will the Secretary of State say some words into the ear of the Secretary of State for Defence to ensure that Northern Ireland can play a bigger part when it comes to accessing those contracts?
Jonathan Reynolds
I absolutely agree with the strengths that the hon. Gentleman identified; he will know that I visited Northern Ireland as the shadow Secretary of State, partly to make that point. We are responsible for the promotion of the defence trade, so the relationship with the Ministry of Defence and the Secretary of State for Defence is very strong. I will absolutely do as the hon. Gentleman requests.
Gareth Bacon (Orpington) (Con)
The Government have repeatedly stated that securing economic growth is their fundamental mission, and that is, of course, an entirely laudable aim, but the fact is that more red tape will have the opposite effect. In the light of the right hon. Gentleman’s plans to introduce radical new labour laws, what would he say in response to the Federation of Small Businesses, which has made it clear that firms are increasingly worried about the Government’s proposals, fearing that they will drive up the costs and risks of doing business and thereby reduce their competitiveness and financial stability?
Jonathan Reynolds
I welcome the hon. Gentleman and the new shadow ministerial team to their posts. I have sat on those Benches in many questions sessions and understand how it can be at times.
Businesses of all sizes overwhelmingly supported the Labour party at the general election. How we behave in government will be exactly how we behaved in opposition, and we will co-design policy to ensure that. There is nothing in what we call the plan to make work pay—the new deal for working people—that is not already in the public domain. We had a manifesto with all that in it.
It is important to recognise—[Interruption.] There is a bit of chuntering coming from the Opposition Front Bench; again, something that I am not unfamiliar with. Look at the success of businesses in this area. Look at the businesses that already recognise trade unions and that already pay the living wage—look at that success. We are going to raise the employment floor, but it will be to a level above which many UK businesses are already operating. It is important to talk about the really successful things that businesses are doing to make sure that their workforces are treated with dignity and respect and get the living standards and prosperity that Members on this side of the House are all about delivering more of.
Alistair Strathern (Hitchin) (Lab)
Patrick Hurley (Southport) (Lab)
The Secretary of State for Business and Trade (Jonathan Reynolds)
My Department’s four priorities are to reset our trade relations, deliver a new deal for working people, support small business and implement a mission-focused industrial strategy. In just a few short weeks, we have begun preparing no fewer than four Bills for the King’s Speech. I have attended the G7 trade summit, and set up the Horizon convictions redress scheme. We have ensured UK Export Finance support for the defence of Ukraine, changed the remit of the Low Pay Commission and organised an international investment summit for 14 October. I have spoken to my international counterparts, to all my colleagues in the devolved Administrations and to several hundred business leaders. That is how we will build the pro-innovation, pro-worker, pro-business economy that the British people voted for.
Patrick Hurley
I thank my right hon. Friend for that reply. This Government were elected on a platform to embed economic growth and break down barriers to opportunity. In the past couple of weeks, I have spoken to colleges and businesses across my Southport constituency, including our rightly famous Silcock’s family entertainment centre, to see how we can develop our skills policy to ensure that for towns such as Southport, the best days lie ahead. How will the Department work to support the next generation of entrepreneurs to ensure that our economic mission is furthered?
Jonathan Reynolds
I hope you will allow me, Madam Deputy Speaker, to pay tribute to my hon. Friend after what his community has been through, and the incredible way that he stepped up to represent that community. That is something we would all like to acknowledge.
The points that my hon. Friend makes are right: small businesses, entrepreneurs and start-ups are essential to our economic success, in Southport and in every part of the UK, and the support we will give them covers advice, guidance and training. On his point about skills, that is why we have established Skills England. If we want entrepreneurs to take real risks with their own property and income, we must give them stability. We cannot change policy every year; we cannot elect Liz Truss as Prime Minister and expect people to take those risks. The stability and consistency we will bring is as important as the policy environment we will create to do exactly what my hon. Friend says.
Jerome Mayhew (Broadland and Fakenham) (Con)
When dealing with the Post Office Horizon scandal, does the Secretary of State understand that by sitting on the letters informing Horizon victims that their convictions have been quashed, the Department is exacerbating the trauma of this terrible injustice? After two months in office, I understand that fewer than one in six letters have been sent. When does he plan to get a grip on the situation?
Jonathan Reynolds
I welcome the hon. Gentleman to his place. We have been in office for two months, and we have already set up the Horizon convictions redress scheme. Indeed, I was pleased to work with the former Minister, the hon. Member for Thirsk and Malton (Kevin Hollinrake), on creating the legal environment necessary to do that. The letters are an issue for the Ministry of Justice and its database. We have not sat on anything, and we have moved at pace to give people the compensation they deserve. We will continue to do that, and to work with those on the Opposition Front Bench to deliver what we all want to see.
David Pinto-Duschinsky (Hendon) (Lab)
Sir David Davis (Goole and Pocklington) (Con)
Jonathan Reynolds
I thank the right hon. Member for his role, which I have referred to in the past and has been important in these matters. I am not passing the buck to anyone; I am simply saying that it is the Ministry of Justice, rather than me, that sends those letters out. As of 30 August, 130 letters have been sent out, quashing more than 370 convictions. I think that is real progress since the election. It is not fast enough for me, and we will continue to push that. We are working closely with the Northern Irish and Scottish Administrations, because of the devolved nature of justice, exactly as he would expect. I can assure him that this matter was a priority for me in opposition, and it will continue to be a priority for me in government.
Mike Amesbury (Runcorn and Helsby) (Lab)
Melanie Onn (Great Grimsby and Cleethorpes) (Lab)
Jonathan Reynolds
Good product regulation and public confidence in our system are important across the board for every sector of the economy. My hon. Friend will have seen the Product Regulation and Metrology Bill in the King’s Speech. It will give powers to the UK Government to regulate in a range of fields. What she raises is exactly the kind of area we will be able to consider and debate in more detail.
Dr Neil Shastri-Hurst (Solihull West and Shirley) (Con)
Jonathan Reynolds
I thank the hon. Member for his interest in this incredibly important issue and the work, which he will be aware of, that ensured that we got to this point. I think this is the biggest miscarriage of justice in British history, and the moves to provide some form of redress are extremely important.
We have moved at pace to put the scheme in place. We were able to do so because of the legislation we got through in the wash-up at the end of the last Parliament. The hon. Member will have heard what I said about the letters that we got out to get that information to people. [Interruption.] What was that? We will take that up offline. I welcome his interest and will continue to work with him on it.
Joe Powell (Kensington and Bayswater) (Lab)
Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)
I ask this question on the basis that I am sanctioned by the Chinese Government for having raised the evidence of genocide and slave labour in Xinjiang. We know that the vast majority of polysilicon is now produced in Xinjiang using slave labour. Will the Secretary of State give the undertaking that, as required under section 54(11) of the Modern Slavery Act 2015, there will be no use of any solar arrays that have polysilicon in them made under slave labour in Xinjiang?
Jonathan Reynolds
I give the right hon. Gentleman an absolute assurance that I would expect and demand there to be no modern slavery in any part of a supply chain that affects products or goods sold in the UK. He is right to say that under the Modern Slavery Act, which was put in place by a previous Conservative Government, any business with a turnover above £36 million needs to have a reporting regime around that. I promise him that, where there are specific allegations, I will look at those to ensure that. It is an area where we have existing legislation, and indeed we would go further if that was required.
Paul Waugh (Rochdale) (Lab/Co-op)
Jonathan Reynolds
I am grateful to my hon. Friend for that question. I meet businesses every day, and my most recent engagement was the breakfast we did on our plans to make work pay, where businesses themselves were pointing out the things they are doing because they value and care for their workforce and will invest in them. The issue in Rochdale he refers to is close to my heart as a Member of Parliament from just down the road in Tameside. I will of course have that meeting with him and continue to work closely with him to deliver on his objectives.
Sammy Wilson (East Antrim) (DUP)
As part of the Government’s net zero strategy, car manufacturers are expected to produce 22% of their cars as electric vehicles and face a £15,000 penalty for every car by which they fall short of that. The target is expected to be missed by 100,000 cars this year because of consumer resistance. The effect on the car industry is that producers are restricting supplies of petrol cars to retailers, and some are threatening to pull out of the UK market altogether. In the light of consumer resistance, will the Secretary of State look again at the target set, since consumers are clearly not going to be forced to purchase cars they do not want, and producers will be forced to try to get rid of cars they cannot sell?
Jonathan Reynolds
I am grateful to the right hon. Member for that question. The policy to which he refers—the zero emission vehicle mandate—and its penalties as we ramp up to the phasing out of petrol and diesel vehicles is actually a Department for Transport policy of the previous Government. We supported it, because there is no point in having an objective to phase out petrol and diesel vehicles without a corresponding ramping up of regulation to do that.
There is an issue with consumer demand, which affects all of Europe. We are working closely on that. Under the policies of the last Government, there are flexibilities—things that can be transferred from one financial year to the next. We keep everything under close review, but we are committed to the transition. That is essential to industry and consumer confidence and making sure that that happens. Every country in the world has similar policies. This is an ongoing transition, and we are absolutely going to make it work for British industry.
Dan Carden (Liverpool Walton) (Lab)
Jonathan Reynolds
I thank my hon. Friend for his question and for hosting me when I visited after the riots. I extend all my sympathies to the businesses affected. There is no excuse under any circumstances for looting shops, or in this case burning down a library. I was very much affected by my visit. He knows that we work very much in collaboration with the Association of British Insurers to ensure that claims are processed quickly. By now, I hope that businesses are aware that if they are underinsured or uninsured, help is still available to them under the Riot Compensation Act 2016, the details of which are on the gov.uk website.
Munira Wilson (Twickenham) (LD)
One Air is a small and growing cargo airline based in my constituency, which is having to deal with huge amounts of additional red tape and costs as a result of the Brexit deal and the end of reciprocal arrangements with the EU. Can the Secretary of State give an assurance that, when Ministers negotiate mutual recognition of professional qualifications, the aviation sector will be included?
Jonathan Reynolds
I can give the hon. Lady that reassurance. The aviation sector often complains about the lack of recognition, particularly relating to pilots. There is mutual interest in this area, and it could be a solid basis for negotiation. We can never promise the outcome of negotiations, but I can promise her that it is a priority for us.
Chris Vince (Harlow) (Lab/Co-op)
I welcome my right hon. Friend to his place. Before the election I met fruit growers in Nazeing and more recently farmers in Hatfield Broad Oak, both in my constituency, who raised concerns about hiring seasonal workers caused by Britain’s exit from the EU. What can his Department do to address that issue?
Jonathan Reynolds
I recognise the point that my hon. Friend raises. Our reforms to zero-hours contracts will not affect seasonal labour—we recognise that it is an important part of the labour market. Additional burdens have been placed on businesses because of Brexit, as he outlined. We do not want to relitigate the arguments of the past, but we believe that we can make tangible improvements for businesses in his area and for everyone.
Antonia Bance (Tipton and Wednesbury) (Lab)
My right hon. Friend will be aware of the disgraceful union-busting tactics and intimidation employed by Amazon against GMB members seeking union recognition at the Amazon warehouse in Coventry. Despite more than 1,000 votes in favour, union recognition was lost by just 28 votes. What steps is he taking to ensure that workers, such as the brave and determined GMB activists at Amazon, can more easily win union recognition?
Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)
What thought has the Secretary of State given to attending the Williams inquiry? The Post Office scandal is unfinished business. It is now vital that we not only learn the lessons, but accelerate redress for the innocent and, crucially, punish the guilty fast.
Jonathan Reynolds
I am very grateful to my right hon. Friend for that question. As a new Secretary of State, the inquiry and the whole issue has affected deeply how I believe accountability and power should be considered in the roles we have as Ministers. It comes on the back of what we heard about Grenfell yesterday, and what we have heard about Bloody Sunday and Hillsborough. I believe that, although this is essentially a legacy issue, it is exactly the agenda that we have on coming into these jobs. The future of the Post Office must be linked to the inquiry not just in terms of redress, but in how the business model works better for sub-postmasters. I do not believe that this has been put into the public domain yet, but I have received a request to attend the inquiry. I will, of course, do so, and believe it is an essential way to put across what we will take from that inquiry and our plans for long-term reform in the future.
Exports to Israel: Military Operations in Gaza
Jonathan Reynolds Excerpts(2 years, 1 month ago)
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The Secretary of State for Business and Trade (Jonathan Reynolds)
The UK Government have been absolutely clear that Israel must, in taking military action to support its legitimate right to self-defence, do so while adhering to international humanitarian law.
Following a rigorous process in line with the UK’s legal obligations, the UK Government have concluded that there is a clear risk that military exports to Israel, where used for military operations in Gaza, might be used in serious violations of international humanitarian law. To continue to permit these exports would therefore be inconsistent with our strategic export licensing criteria.
The Foreign Secretary has now considered detailed assessments and has determined that, while Israel has the capability to comply with international humanitarian law and the most senior Ministers and officials have affirmed Israel’s commitment to do so, there are significant doubts about its record of compliance. Consequently, he has advised me that there is a clear risk that some UK exports to Israel might be used to commit or facilitate a serious violation of international humanitarian law.
A thorough process has now been followed and the summary of the Government’s assessment is being published.
I have therefore instructed officials to suspend licences for exports to Israel, where we have assessed those items are for use in military operations in Gaza. This includes approximately 30 export licences for items which could be used in the current conflict. This includes components for fighter aircraft—F-16s—parts for unmanned aerial vehicles, naval systems, and targeting equipment.
The Government condemned Hamas’ barbaric attack on 7 October and supports Israel’s right to defend itself in line with international law. The Government are also working intensively with international partners to encourage wider regional de-escalation in the context of recent events.
This is not a blanket ban, but targets relevant licences that could be used in military operations in Gaza. Assessments of Israel’s commitment to international humanitarian law will continue, including with regard to the provision of food and medical supplies to civilians in Gaza and the treatment of detainees, and may change over time to allow reinstatement of these licences.
Affected exporters will be notified of that suspension.
The UK stresses that there is no equivalence between Hamas terrorists and Israel’s democratic Government. The UK remains committed to supporting Israel’s self-defence. But to license arms exports to Israel, the UK must assess their compliance with international humanitarian law, notwithstanding the abhorrence of their opponents’ tactics and ideology.
In the context of this suspension, I have also considered the particular issue of the F-35 strike fighter programme. I am grateful to the Defence Secretary for his advice on this issue.
The F-35 is an aircraft that operates globally, forming a key capability in the militaries of many of our allies.
The F-35 programme has a significant dependence on the UK, which provides unique and critical components. Due to the nature of the F-35 as an international collaborative programme, it is not currently possible to suspend licensing of F-35 components for use by Israel without prejudicing the entire global F-35 programme, including its broader strategic role in NATO and our support to Ukraine. This Government have an unwavering commitment to the security not just of this country but to our allies around the world, especially at a time when we face increased global insecurity and volatility.
In this context, with a view to ensuring international peace and security, exports to the global F-35 programme will be excluded from this suspension decision, except where going direct to Israel. This is in line with the written ministerial statement that issued the strategic export licensing criteria on 8 December 2021, which provided that application of the criteria would be without prejudice to the application to specific cases of specific measures as may be announced to Parliament from time to time. This will be kept under review.
The UK continues to call for an immediate ceasefire to the conflict in Gaza, the release of all hostages and a significant increase in the amount of aid to civilians in Gaza.
The Foreign Secretary and I will provide further updates to Parliament as appropriate.
[HCWS64]
Low Pay Commission Remit
Jonathan Reynolds Excerpts(2 years, 2 months ago)
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The Secretary of State for Business and Trade (Jonathan Reynolds)
This Government are committed to making work pay. As part of our ambitious agenda, we pledged to update the remit of the Low Pay Commission to formally take account of the cost of living for the first time, and I am pleased to confirm that this has been achieved.
As Members will know, the Government set the minimum wage rates each year following the advice of the LPC. Recommendations are made by the LPC each October for the minimum wage rates that are to apply from the following April, in line with the parameters set out in the annual remit from the Department for Business and Trade. I have written to Baroness Stroud, the chair of the LPC, to set out an updated remit.
Following the cost of living crisis, which has harmed working people in recent months and years, the remit asks the LPC to consider the cost of living for the first time. The remit highlights the need to also consider the impact on business, competitiveness, the labour market and the wider economy. We are ambitious in developing a path towards a genuine living wage, but we know that this path must be backed by evidence and consistent with delivering inclusive growth for workers and businesses.
As part of the Government commitment to a genuine living wage that benefits every adult worker, we also pledged to remove discriminatory age bands. The new remit published this week will take a major step towards this, asking that the Low Pay Commission recommends a national minimum wage rate that should apply to 18 to 20-year-olds from April 2025. This should continue to narrow the gap with the national living wage; we are taking steps year by year in order to achieve a single adult rate. We are committed to achieving a single adult rate, and we will ensure that any impacts on youth employment or participation in education and training are considered carefully as we move towards this.
Since the establishment of the Low Pay Commission, through the National Minimum Wage Act 1998, it has become respected internationally. This Government are proud to confirm our continued commitment to the LPC, and we extend our thanks to the commissioners and the secretariat for their independence, their diligence, and their expertise.
I can confirm that the new remit maintains the request to recommend minimum wage rates for workers above school age but under 18, and for those eligible for the apprentice rate, which should increase as much as is possible without damaging these groups’ employment prospects. The remit also asks the LPC to recommend next year’s accommodation offset rate.
We recognise the importance of providing sufficient notice of changes to the minimum wage, so the timelines remain unchanged in the new remit. We have asked the LPC to report back by the end of October, and the rates will increase in April 2025.
The Government are also pleased to confirm that this year’s remit asks the LPC to continue and expand its cutting-edge research on the impacts of the national living wage and national minimum wage, and in particular its assessment of the impact on groups of low-paid workers with protected characteristics.
This year marked the 25th anniversary of the creation of the minimum wage in the UK. Few would now disagree that it has been one of the most consequential and beneficial economic policy interventions of recent decades. Now is the time to build on this by delivering a genuine living wage, removing unfairness for different age groups, and making work pay.
We look forward to receiving the recommendations and wider advice of the Low Pay Commission in October.
[HCWS43]
Horizon Convictions Redress Scheme
Jonathan Reynolds Excerpts(2 years, 2 months ago)
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The Secretary of State for Business and Trade (Jonathan Reynolds)
I am today announcing the launch of the Horizon Convictions Redress Scheme, it will be delivered by the Department for Business and Trade.
The Post Office Horizon scandal, which began over 20 years ago, has had a devastating impact on the lives of many postmasters. This scandal is one of the biggest miscarriages of justice in our history.
As a result of the passage of the Post Office (Horizon System) Offences Act 2024 and the Post Office (Horizon System) Offences (Scotland) Act 2024, hundreds of postmasters in all parts of the UK have now had their wrongful convictions quashed.
The UK Government have been working very closely with both the Scottish Government and the Northern Ireland Executive to identify those who have had their convictions overturned.
Those who we have identified as being wrongfully convicted will shortly receive a letter. It will confirm that their conviction has been quashed, and it will provide further information on how to access financial redress.
Those who have not received a letter, and believe that they are eligible, will still be able to come forward and register for the Horizon Convictions Redress Scheme.
Victims will be able to choose from two clear options.
They can either accept a fixed settlement of £600,000.
Or they can choose a full claim assessment.
The full claim assessment is designed for cases where the victim believes their losses exceed £600,000 and they wish to have their application fully examined by the Government.
We know that every case will be different, and we fully support the right of every postmaster to choose what is best for them. Recognising that postmasters have suffered immeasurably already, we are ensuring that regardless of the settlement they choose, they will be able to receive a preliminary payment of £200,000.
We recognise, too, that many of these cases stretch far back in time and some individuals may not have all the information at their fingertips to proceed with an application right away.
To help, we are making sure they can access historical data from both the Post Office and HMRC.
From today, victims of this scandal will be able to register and apply for financial redress by visiting www.gov.uk/horizon-convictions-redress-scheme
[HCWS42]
Digital Markets: Strategic Market Status Determination
Jonathan Reynolds Excerpts(2 years, 2 months ago)
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The Secretary of State for Business and Trade (Jonathan Reynolds)
On 30 July 2024 the Department for Business and Trade has published a consultation entitled “DMCCA 2024: consultation on turnover and control regulations”. The consultation will be open for a six-week period and the Government will publish its response afterwards. A copy of the consultation will be placed in the Libraries of both Houses and published on gov.uk.
Under the DMCC Act, the Competition and Markets Authority will receive new powers to designate firms exerting significant control over digital markets as having strategic market status in respect of specific digital activities, for which turnover will be an important aspect of the designation assessment.
The Competition and Markets Authority, other relevant decision makers and civil courts will also be empowered to issue significant monetary penalties, up to 10% of global turnover depending on the breach, for non-compliance under the DMCC Act regimes, and up to 5% of global turnover for the road fuels regime.
This consultation seeks views on technical provisions to be made in secondary legislation to set out how turnover of a business should be determined for the purpose of the DMCC Act measures. The consultation includes the detail of each factor required to determine turnover, including: activities to be included in the calculation of turnover; the relevant period and trigger event for the determination of turnover; and the calculation of turnover in relation to financial institutions. How turnover is calculated will affect which firms are designated as having SMS and the statutory maximum values of penalties available for the relevant breaches under the digital markets, competition, road fuel and consumer regimes.
These provisions will support the Competition and Markets Authority, other relevant authorities and the civil courts to calculate turnover-based penalties accurately, fairly and proportionately, and to estimate appropriately for the purposes of SMS designation.
[HCWS44]
Free Trade Agreement Negotiations Programme
Jonathan Reynolds Excerpts(2 years, 2 months ago)
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The Secretary of State for Business and Trade (Jonathan Reynolds)
The UK is the world's fourth largest exporter, with exports worth £855 billion. British businesses have unique strengths which are admired around the world.
This Government are committed to developing a trade strategy that will drive economic growth. Our approach will be underpinned by rigorous economic and geopolitical analysis, and will align with our industrial strategy, support our net zero ambitions and enhance our economic security. The strategy will be critical to forging a new partnership between an active state and dynamic open markets, both in the UK and overseas. It will also reflect our ambition to improve the UK’s trade and investment relationship with the EU.
In developing our trade strategy, we are clear FTAs—while not the only tool—are an important lever for driving growth.
That’s why today I am announcing our intention to deliver the UK’s Free Trade Agreement Negotiations Programme, starting with the Gulf Co-operation Council, India, Israel, Republic of Korea, Switzerland and Turkey. The Government are also committed to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, ensuring UK businesses can take full advantage of the deal when it enters into force. I will be working with my officials to ensure our FTA programme delivers this Government’s wider international trade and investment priorities, and puts our growth mission at its heart. We are committed to using every lever available to deliver growth.
We are now working across Government to get negotiators back into the room with counterparts as soon as possible. In line with this, I have written to international partners signalling our intentions and I expect the first discussions to take place during the autumn.
We will keep Parliament fully updated as the trade strategy and trade negotiations progress.
[HCWS28]
Digital Trade Agreement: WTO Joint Initiative on Electronic Commerce
Jonathan Reynolds Excerpts(2 years, 2 months ago)
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The Secretary of State for Business and Trade (Jonathan Reynolds)
The Government are ready to lead on the global stage and use every lever at our disposal to tear down unnecessary barriers and give British businesses the access to international markets to achieve economic growth. We are committed to establishing a global trading system fit for the modern era and underpinned by digital technologies to ensure trade is as seamless and efficient as possible.
Today, I am delighted to announce the UK has joined the first global digital trade agreement: the joint initiative on electronic commerce, negotiated with 90 other countries at the World Trade Organisation.
The economy-wide agreement, covering trade in goods, services and information, is set to deliver new growth opportunities for the UK, with global digital trade already worth £4 trillion and growing strongly. The JI will deliver new growth opportunities for the UK economy and our businesses, workers and consumers, and recognises the importance of supporting developing and least-developed countries to deliver growth and prosperity for all.
Global trade is becoming increasingly digital, and harnessing its potential is central to growing a strong and resilient economy in the UK. The UK is at the forefront of digital trade and has a comparative advantage in digitally-delivered services such as finance, professional business services, creative industries, engineering and much more. UK trade is driven by digitally-enabled businesses, with exports of digitally-delivered services amounting to £252 billion in 2021, or 77% of total UK services exports.
However, until now there has been no common set of global digital trade rules. The G7 digital trade principles brokered under the UK G7 presidency in 2021 set out shared commitments of G7 countries, but there was no rulebook covering binding commitments for the world. This has led to fragmented approaches to digital trade regulation, resulting in increased barriers for businesses, workers and consumers.
As a comprehensive, economy-wide agreement, the JI will boost global trade in goods, services and information and unlock a wide range of benefits for UK businesses, workers and consumers. Global adoption of digital customs systems, processes and documents, even with partial uptake, could represent a boost to UK GDP. Improvement in trade facilitation can increase the probability of a small business starting to export by up to 3% and increase the value of small business exports. Protection for workers and consumers online will increase their trust and confidence in digital trade.
Key benefits of this agreement include:
Cheaper, faster and more secure trade for businesses trading goods and services around the world through digitalising interoperable customs systems, processes and documents. This will in many cases end the need to print off forms and hand them over at customs, a slow, expensive and old-fashioned way of working.
Recognition of electronic contracts, invoices, signatures and authentication, and facilitation of secure, trustworthy electronic payments.
Permanent ban on customs duties on digital content among JI participants to provide the certainty businesses need to trade openly in the new global digital economy and avoid the price increases the introduction of such tariffs would cause.
Protection of personal data of workers and consumers in line with the UK’s high data protection standards.
Protection of consumers buying goods and services online from online fraudsters, misleading claims about products and deception.
Facilitating competition in the telecoms sector through financial independence of telecoms regulators and improved access to telecoms infrastructure.
I expect the process to incorporate the JI into the WTO legal framework to commence shortly. Once incorporated, the JI will be laid before Parliament, in line with usual practice, for domestic ratification.
The Government are committed to rebuilding and strengthening global partnerships and standing up for the rules-based international order. This agreement is an important step in modernising the global trade rule book and furthering co-operation in the WTO.
[HCWS23]
Assimilated Law Report
Jonathan Reynolds Excerpts(2 years, 2 months ago)
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The Secretary of State for Business and Trade (Jonathan Reynolds)
Today I have laid a report regarding the Retained EU Law (Revocation and Reform) Act 2023 before Parliament and published it on gov.uk. This report updates the House in line with the obligations under section 17 of the REUL Act, which requires a report to be published and laid before Parliament every six months detailing all revocations and reforms of assimilated law.
This is the second report to be laid before the House. While it is very early in my tenure as Secretary of State for Business and Trade, and this report outlines the activities of the previous Government, it is right that this obligation is fulfilled and this update is given to the House.
The report today summarises the data on the assimilated law dashboard, providing the public with information about the amount of assimilated law there is and where it sits across the various Departments. The dashboard reflects the position as of 23 June, showing that a total of 6,735 instruments of REUL/assimilated law concentrated over approximately 400 unique policy areas have been identified.
The amount of REUL/assimilated law has decreased slightly since the last Government’s update to the dashboard in January 2024. This is due to Departments undertaking further analysis on the REUL/assimilated law they own between January and June and identifying some errors and duplications.
Since the previous update to the dashboard the previous Government revoked or reformed 132 assimilated law instruments. As such, the previous Government revoked or reformed 2,361 instruments of REUL and assimilated law in total.
The report gives details of a further 24 statutory instruments using powers under the REUL Act and other domestic legislation which the previous Government laid since the previous report, including on rail, aviation, health, product safety, merchant shipping, and weights and measures.
The timing of this report only gives me the opportunity to set out this Government’s high-level intentions for the future reform of assimilated law. This Government are committed to creating a pro-business environment with a regulatory framework that supports innovation, investment and high-quality jobs. This will be key to realising our national mission to deliver economic growth, on which so much depends. We will ensure regulation supports the building of new roads, railways, reservoirs and other nationally significant infrastructure. We will also make changes to national planning policy to make it easier to build laboratories, digital infrastructure and gigafactories, while also simplifying the procurement process to support innovation and reduce micro-management.
[HCWS17]
Harland and Wolff
Jonathan Reynolds Excerpts(2 years, 2 months ago)
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The Secretary of State for Business and Trade (Jonathan Reynolds)
In recent weeks there has been media speculation over the status of Harland and Wolff and the nature of its ongoing discussions with the Government, upon which we have been unable to comment due to the commercially sensitive nature of those discussions. I am now pleased to be able to address the subject and update members of the House. My officials have been working with all parties extensively for a number of weeks to ensure an outcome for Harland and Wolff that delivers shipbuilding and fabrication across the UK and protects jobs.
After a detailed review of an application by Harland and Wolff for a UK Export Finance export development guarantee, His Majesty’s Government have decided not to proceed with the provision of a guarantee. This decision was based on a comprehensive assessment of the company’s financial profile and the criteria set out in our risk policies. We have also decided not to provide any form of emergency liquidity funding. While such a decision is not easy, it is my assessment, following extensive engagement by my officials with market players, that HM Government funding would not necessarily secure our objectives and there is a very substantial risk that taxpayer money would be lost. The Government believe, in this instance, that the market is best placed to resolve the commercial matters faced by Harland and Wolff.
A statement was published on 19 July by Harland and Wolff indicating that the company has commenced discussions with its existing creditors, Riverstone Credit Management LLC, to secure the additional funding it needs. This should allow the business to continue pursuing its short and longer-term objectives, in which the Government continue to take an interest. In all our engagements with them, Riverstone Credit Management LLC has recognised the importance of the assets at Harland and Wolff as well as the people who work there, showing a desire to find pragmatic solutions that support HM Government objectives.
Harland and Wolff indicates that these discussions on new financing should conclude in the next few days. This will involve the current CEO taking an immediate leave of absence and the onboarding of new management with a focus on recapitalisation and ensuring sustainable finances.
I know the recent media reports will have been of concern to workers across Harland and Wolff’s sites, as well as the wider supply chain. I am working closely with my colleagues the Secretaries of State for Northern Ireland and Scotland, and Ministers are also engaging with the leaders of the Northern Ireland Executive and Scottish Government, alongside the local Members of Parliament, to support a positive outcome for all affected sites across the UK. My ministerial team have also reached out to the trade unions represented across the four sites to reassure them that the steps set out by the company appear to me to hold by far the best prospects of ensuring business continuity, job security and the delivery of important existing contracts.
My officials will continue to work closely with those in the Ministry of Defence and the National Shipbuilding Office on the fleet solid support contract, for which Harland and Wolff remains a key subcontractor. Officials in the Ministry of Defence are also well engaged with the prime contractor, Navantia UK, to monitor delivery of this important contract.
I welcome potential new financing for Harland and Wolff and the appointment of new management and wish them all the best in their continued efforts to build up this business.
Shipbuilding supports 42,600 jobs nationwide, adds £2.4 billion to the economy every single year, and is an important pillar of our civil and defence industrial base. We are committed to supporting vibrant and successful shipbuilding and fabrication industries, and our skilled workforces who deliver them, in all parts of the UK, in which Harland and Wolff has its role to play.
[HCWS15]