Oral Answers to Questions

Kelly Tolhurst Excerpts

Tuesday 16th July 2019 Commons Chamber

[Chuka Umunna (Streatham) (LD)]

4. What assessment he has made of the effect of two-factor payment authentication on (a) consumers and (b) businesses.

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

The implementation of strong customer authentication, which mandates two-factor authentication for some online payments, will introduce more secure payments for individuals and businesses. That was introduced by the second payment services directive. The Treasury published an impact assessment on the implementation of that EU directive in 2017.

[Chuka Umunna]

I am staggered that the Government are not doing more about this ticking timebomb for online retail, which is on track to cause major disruption. The British Retail Consortium estimates that 75% of retailers are unaware that it is coming into effect in September. It is the same for consumers. The implementation is forecast to lead to the failure of nearly a third of e-commerce transactions from September, due to poor access to a proper phone signal or wi-fi. Will the Minister ensure that no enforcement action will be taken for at least 18 months, to give our retail sector breathing space to adapt to the new rules?

[Kelly Tolhurst]

I point out that there was £309 million-worth of fraud in e-commerce in 2016 versus £13.6 million in 1998. The hon. Gentleman will know that the European Banking Authority published an opinion on readiness for implementation and the Financial Conduct Authority published a statement in June. They are working on mitigations past the September implementation date. They are working with industry and providers to make sure that the essence of the changes prevail, which is to make it safer for merchants and consumers.

[David Warburton (Somerton and Frome) (Con)]

5. What steps his Department has taken to develop sustainable energy in rural communities in Somerset.

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[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

7. What steps he is taking to improve product safety.

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

We are providing £12 million a year of new funding through the Office for Product Safety and Standards to strengthen national capacity for product safety enforcement. The OPSS provides specialist expertise, scientific advice, support and training for trading standards, and it leads on national product safety challenges to protect consumers.

[Gerald Jones]

I recently attended an Electrical Safety First event on the dangers of buying second-hand electrical goods. The reality is that many people buy second-hand electrical goods, sometimes not by choice, so will the Minister commit, in the light of the Whirlpool recall, to a public awareness campaign on how to buy and use electrical products safely?

[Kelly Tolhurst]

I thank the hon. Gentleman for raising that question. Last week we took part in a Westminster Hall debate secured by the hon. Member for Swansea East (Carolyn Harris). The OPSS is currently working with Electrical Safety First on various campaigns, to which we have an ongoing commitment. Consumer protection and consumer education are important.

[Stephen Kerr (Stirling) (Con)]

Given the difficulty of tracing the whereabouts of half a million potentially faulty Whirlpool tumble dryers, what discussions has the Minister had with the OPSS on developing a proposal for product registration at point of sale?

[Kelly Tolhurst]

Again, I thank my hon. Friend for his question. In last week’s Westminster Hall debate I committed to developing and testing the ability for mandatory registration of electrical products, which is something we are looking at. It was initiated in a discussion at the Consumer Protection Partnership last Thursday, and we are hoping to get outcomes in the near future.

[Andy Slaughter (Hammersmith) (Lab)]

The Government have known for four years that there were 5.5 million Whirlpool tumble dryers in homes across the UK that were liable to catch fire. Last month, the Minister gave notice that she intended to order the recall of those dryers still in use, but now she has agreed a voluntary recall with the company. Will she reconsider that and use the powers she has? If she does not, how will we know that Whirlpool is taking this seriously?

[Kelly Tolhurst]

I recognise the hon. Gentleman’s concern in this regard. He is absolutely correct to say that we issued a notice of intent to recall on Whirlpool. It submitted its proposal, which we assessed. We also took advice from an expert panel, comprising an independent QC and chief scientific officers from the Health and Safety Executive, the Home Office and the Department for Business, Energy and Industrial Strategy. We decided not only to accept the proposal, which has been published, but to issue a regulation 28 notice with regard to further information that needs to be shared with the OPSS, so that we can review the recall process.

[Carolyn Harris (Swansea East) (Lab)]

8. What plans he has to improve the regulation of second-hand electrical goods online.

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

I have recently written to online platforms to make clear the priority I place on consumer safety. The hon. Lady will know, after her Westminster Hall debate last week, that the Office for Product Safety and Standards is undertaking specific projects to tackle the risks of second-hand and online sales, including targeting those goods entering the UK via fulfilment houses.

[Carolyn Harris]

I appreciated the Minister’s letter this weekend on the online sales of second-hand recalled tumble dryers. Currently, it is possible to upload details of such products on to online platforms without recall notices, or model or display numbers. Her letter states that she has written to these online platforms, but it fails to say which ones. Will she commit to publishing these letters and any advice she has given, in the interests of clarity?

[Kelly Tolhurst]

I would like to reassure the hon. Lady that I have written to not just one online platform, but all the online platforms in relation to this. I would just like to clarify that some platforms have been advertising certain models and Whirlpool has used the same model number for a number of machines, so it is not correct to assume that all models will be subject to recall. As I have outlined, if any platform is selling products that are part of that recall, the organisations are being alerted and the products are being taken down as soon as possible.

[Priti Patel (Witham) (Con)]

9. If he will hold discussions with the Secretary of State for Transport to discuss the potential benefits to (a) businesses and (b) the implementation of the industrial strategy of funding strategic transport infrastructure projects in Essex.

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[Luke Hall (Thornbury and Yate) (Con)]

T4. The introduction of the national living wage has helped to raise the living standards of many of my constituents. What assessment has the Minister made of the impact of increasing the national living wage from 60% to 66% of median earnings and the ability of the retail sector to continue to grow its workforce considering that change?

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

Given my hon. Friend’s background, I know that he has a keen interest in the retail sector. In April, the increase in the national living wage meant that nearly 1.8 million workers received an above-inflation pay rise. The Government have stated our ambition to end low pay in the UK. The national living wage is on track to meet its target of 60% of median earnings by 2020, and we will announce its future target later this year. In setting a new target, we will work with the expert Low Pay Commission to carefully consider the impact on businesses and workers across all sectors.

[Laura Pidcock]

Given the reported use of food banks by staff in the Secretary of State’s Department, and given that the first ever indefinite strike action of outsourced workers in Whitehall is happening now, does the Secretary of State not see it as his duty at least to ensure that BEIS contractors are not breaking legislation? That includes potential breaches of regulation 7 of the Conduct of Employment Agencies and Employment Businesses Regulations 2003, whereby an employment business may not supply a temporary worker to a hirer to replace an individual taking part in official strike action. Can the Secretary of State please explain to the House what action he has taken on the issue following the Public and Commercial Services Union’s referral of the matter to the Met police, and letters sent to him and his permanent secretary on 10 July?

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[Ms Esther McVey (Tatton) (Con)]

All forms of company are registered and incorporated with Companies House. While it is a great resource if used properly, it is open to misuse, abuse and fraudulent information. What steps will the Secretary of State take to ensure validation before companies are registered, so that the public can have faith in the register?

[Kelly Tolhurst]

rose—

[Ms McVey]

Secretary of State, please.