Oral Answers to Questions

Kelly Tolhurst Excerpts

Tuesday 16th October 2018 Commons Chamber

[Carolyn Harris (Swansea East) (Lab)]

2. What recent assessment he has made of the effectiveness of the electrical product recall regime.

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

In March, we published the first Government-backed code of practice on recalls, and we have trained almost 300 trading standards professionals on its use. The Office for Product Safety and Standards is working with UK manufacturers and importers to ensure that their recall plans and processes are adequate.

[Carolyn Harris]

Electrical Safety First tells me that the successful product recall rate for electrical goods is abysmally low, so why are the Government not doing more with platforms such as Amazon and eBay, which hold considerable consumer information, to find a solution to this problem?

[Kelly Tolhurst]

I thank the hon. Lady for her question, and I understand her particular interest in this area. She is the chair of the all-party parliamentary group on home electrical safety, which I look forward to meeting at the end of the month. With particular regard to online traders, we need to ensure consumer confidence. Amazon and eBay already have primary authority partnerships with trading standards. They are advised by trading standards on the regulations and work with them to make sure that goods are removed as quickly as possible.

[Andrew Bridgen (North West Leicestershire) (Con)]

Those who do not wish us to leave the European Union claim that standards will fall, but will the Minister confirm that enhancing the UK’s product safety regime is in the industrial strategy, to give consumers in the UK and around the world ultimate confidence in the quality and safety of UK-manufactured goods in the future?

[Kelly Tolhurst]

I thank my hon. Friend for his question, and I absolutely agree. Consumer product safety is a key part of our industrial strategy. The Government are determined to maintain a strong safety regime, and consumers can be confident that consumer protections already based in EU law will be retained. We want robust systems that identify unsafe products, share information and make sure that the checks at our borders and ports are right.

[Andy Slaughter (Hammersmith) (Lab)]

I am glad that the Government now take product recall seriously. They certainly did not in the case of the 5 million Whirlpool tumble dryers, many of which are still in our constituents’ homes. More catch fire every week, destroying peoples’ properties and putting their lives at risk. What will the Minister do about those?

[Kelly Tolhurst]

I thank the hon. Gentleman for his question; he raises an extremely important point. The Office for Product Safety and Standards is already reviewing Whirlpool’s recall programme. Some 1.7 million dryers have been replaced or maintained under the programme. We are keeping it under review, and we will report once that review has taken place.

[Maggie Throup (Erewash) (Con)]

I welcome my hon. Friend to her new role. I also welcome the Government’s recent steps to improve the recall process. However, as the hon. Member for Hammersmith (Andy Slaughter) said, tumble dryers continue to be a leading cause of devastating house fires, as happened to my constituent in Long Eaton just last week. Will my hon. Friend look at what more can be done to improve the recall process, and more importantly, what more can be done to improve the rights of consumers who have purchased faulty products?

[Kelly Tolhurst]

I thank my hon. Friend for her question and express my condolences to her constituent over that horrific incident.

I assure my hon. Friend that the new Office for Product Safety and Standards takes this issue seriously. We are working with UK manufacturers on the recall process; we are keeping it under review. We want to make sure that the UK is recognised for having high standards and consumer protections, and my Department will continue to work on that.

[Mohammad Yasin (Bedford) (Lab)]

3. Whether he has made an assessment of the effect of the proposed merger of Sainsbury’s and Asda on the (a) pay, (b) conditions and (c) job security of the employees of those companies.

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[James Duddridge (Rochford and Southend East) (Con)]

9. What steps he is taking to improve access to finance for small businesses.

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

Improving access to finance is the mission of the British Business Bank, which addresses gaps in the finance market through guarantees and through debt and equity finance. The bank recently launched an online finance hub to help entrepreneurs identify the most suitable finance options for their needs. It is currently supporting about £5.2 billion of finance to almost 75,000 businesses across the United Kingdom.

[Gordon Henderson]

I thank my hon. Friend for her response. As somebody who campaigned to get her elected, may I say how good it is to see her on the Front Bench?

Small businesses play an important role in my constituency’s economy. Will my hon. Friend tell me what the Government are doing to tackle the late payment culture, which has such a negative effect on small businesses?

[Kelly Tolhurst]

I thank my hon. Friend for his kind words. It is great to be answering a question from him at my first Business, Energy and Industrial Strategy oral questions today. I know his constituency well, and I know that he represents the interests of his small businesses.

It is true to say that late payments are an issue that we want to tackle. Debt to small and medium-sized enterprises has halved since 2012. We have established a Small Business Commissioner, and introduced a requirement for large businesses to report publicly on their payment practices. However, we want to go further and bring in new measures to underpin the prompt payment code. We work closely with the Federation of Small Businesses, which has said that

“it is good to see the government getting serious about this issue, especially when it comes to large firms paying their supply chains promptly.”

[James Duddridge]

What specific programmes are available to coastal businesses in towns such as Southend-on-Sea that not only benefit hospitality businesses but help high streets that are sometimes suffering?

[Kelly Tolhurst]

I thank my hon. Friend for his question, and I know what a champion he is particularly for that industry in his constituency. The coastal communities fund supports jobs and growth in coastal towns. Projects are forecast to deliver more than 18,000 jobs and £363 million in new visitor spending, benefiting local businesses along seafronts and in coastal towns. In England, the local enterprise growth hubs in coastal areas also provide local business support and advice. Retail and hospitality businesses in coastal towns benefit from those national programmes as much as they do from business rates relief, business improvement districts and the business support helpline.

[Ian C. Lucas (Wrexham) (Lab)]

Social enterprises—for example, Wrexham football club—are important employers and active community hubs in a lot of constituencies up and down the country. It seems to me that banks do not support or understand social enterprises sufficiently well. Does the Minister agree?

[Kelly Tolhurst]

There are a range of options to support all kinds of SMEs and social enterprises in the current system. We have launched a finance hub which, with the British Business Bank, is available for organisations to get in touch with. A whole range of finance is available for different types of organisations. As MPs, we have a duty to make sure that our constituents and the businesses operating in our constituencies are aware of Government information, so that might be useful in future.

[Several hon. Members rose—]

[Marion Fellows (Motherwell and Wishaw) (SNP)]

And it continues to fight, as do I. Thank you all.

Some of our most important small businesses are local post offices. In 2017-18, post office profits rose to £35 million, while postmaster pay was cut by £17 million. Communities and the Post Office are facing a crisis as more and more postmasters resign, as they are undervalued and underpaid while executives receive a pay rise. What are the UK Government going to do to support sub-postmasters and make their businesses financially viable?

[Kelly Tolhurst]

Fundamentally, the Government absolutely support the post office network, and we are determined to make sure that it is provided across the country. As the Minister with responsibility for post offices, I have taken a particular interest in that since taking up my role. I am determined to make sure that we keep the network running across all parts of the country to benefit our communities.

[Bill Esterson (Sefton Central) (Lab)]

First, I welcome the Minister to the Dispatch Box.

The British Business Bank is simply not reaching most businesses that need support. Only 12% of members of the Federation of Small Businesses apply for external finance, and two thirds of those applications are rejected. In the spirit of cross-party co-operation, how about setting up a network of regional development banks to deliver business finance where it is most needed? The Government have stolen a number of our policies—why not that one?

[Kelly Tolhurst]

I must remind the hon. Gentleman that the British Business Bank has access to the £20 billion investment in the industrial strategy. Through our start-up loan scheme, we have made 57,000 loans, delivering £436 million in finance and creating more than 56,000 jobs. Access to finance has improved a great deal since I became an MP. The hon. Gentleman served on the Committee on which we made invoice financing another option for many small businesses.

[Sir Edward Davey (Kingston and Surbiton) (LD)]

8. What recent assessment he has made of the effect of business rates on the viability of small businesses.

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[Lucy Powell (Manchester Central) (Lab/Co-op)]

14. What steps he is taking to support the provision of family-friendly working practices.

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

I am proud that BEIS supports all its employees with comprehensive family-friendly policies. More widely, employees are entitled to a suite of family rights and protections, and we are looking to go further. We are considering requiring employers to assess whether a job can be done flexibly and to make that clear when advertising. We will also consult on a proposal to require large employers to publish their parental leave and pay policies.

[Lucy Powell]

I have just come from the Education Committee, where we heard from Pepper the robot, who could perhaps help us all give better answers to questions.

Does the Minister agree that one of the keys to unlocking the gender pay gap and family-friendly working practices is to raise the esteem in which part-time workers are held, so that they have the same pay, career progression and investment in training as other employees, and that perhaps if more fathers worked part time, we might raise that esteem further?

[Kelly Tolhurst]

The hon. Lady raises an important point. Part-time workers are a valuable part of our economy, and it is right that they be held in the same esteem as full-time workers. With our policies and announcements on flexible working, I hope that the Government can strengthen this and deliver what she seeks.

[Ian C. Lucas (Wrexham) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

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[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

Only last week, the publicly owned Post Office announced the closure of a further 74 Crown post offices. Although the Post Office has not disclosed all its spending for its franchising programme, the Communication Workers Union estimates that up to £30 million of public money will be spent on compromise agreements, with staff being paid to leave, as customers, local high streets and the jobs market suffer. Does the Secretary of State agree that the Post Office must be transparent about how much its franchising programme is costing the public purse?

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

On 11 October, the Post Office announced a plan to relocate 40 post offices in WHSmith stores. The overall number of post offices will not be reduced. WHSmith will also reach a franchise agreement for the 33 post offices that are already in its stores, so the total number of post offices operated by WHSmith in its stores is planned to rise.

[Colin Clark (Gordon) (Con)]

T4. During Green GB Week, what steps is the Minister taking to minimise the negative impact on farmers of renewable energy incentives that are taking away valuable distillery and brewery by-products to be used in anaerobic digesters, thus potentially undermining the livestock industry not only in Scotland but in the rest of the United Kingdom?

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[Andy Slaughter (Hammersmith) (Lab)]

T6. Last year, Shepherds Bush post office was moved out of the town centre into the back of a WHSmith store. We were promised that it would remain a Crown post office, but now it is one of the 74 that is going to be franchised. We also have three branches that are suspended, one for four years. Will the Government do anything about the running down of the post office network?

[Kelly Tolhurst]

As I have outlined, a number of stores are going into franchise agreements. It is important that we have a post office network that is fit for purpose and serves consumers as they currently are being. As Post Office Minister, I take that very seriously, but I am always happy to meet with the hon. Gentleman to discuss any particular concerns in his constituency.

[Bob Blackman (Harrow East) (Con)]

T10. As we embark on a new nuclear future, it is vital that we have a workforce that is able to deliver the skills and capability. What action is my hon. Friend taking to ensure that young people in particular get the training and opportunities for a career in this wonderful industry?

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

As my right hon. Friend will know, our high streets face unprecedented challenges. Will he therefore join me in challenging the sharp practices of Smart Parking, which operates in the Westgate shopping centre in Basildon? Its charging and fining regime is damaging the viability of shops and fining thousands of people who have all tried to do the right thing.

[Kelly Tolhurst]

My hon. Friend raises an important point, and it is one of the issues we will be looking at with the Retail Sector Council. There is already the review by John Timpson into our high streets, but we need to keep track of this area. My hon. Friend will, as a local MP, champion the cause of his constituency, and I, as Small Business Minister, am acutely aware of the challenges facing our high streets.

[Wes Streeting (Ilford North) (Lab)]

T8. The Minister will have had time to consider Universities UK’s excellent proposal for a global graduate talent visa to reform the uncompetitive visa we currently have for international students. Now that he has had time to consider it, will he support those proposals?

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[Alison Thewliss (Glasgow Central) (SNP)]

The Department’s consultation on limited partnerships closed on 23 July. Scottish limited partnerships continue to be used for dirty money, to the absolute discredit of the country. When will the Minister do something about this?

[Kelly Tolhurst]

We acknowledge the reports that limited partnerships, particularly Scottish limited partnerships, have been misused. That is why we have consulted on proposals to tackle the issue and to modernise the law. In June 2017, Scottish limited partnerships were brought within the scope of the register of people with significant control, and since then there has been a fall of 80% in the registration of new partnerships.

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[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

Thank you, Mr Speaker. I have been desperately trying to catch your eye. We have had a number of comments on post office relocations and closures. Will the Minister make it absolutely clear that relocating a post office to WHSmith does not save the services within it? Many have been massively downgraded at the point to which they have been relocated.

[Kelly Tolhurst]

As I have already outlined, we are committed to delivering a postal network that services the needs of our communities. If the hon. Gentleman has concerns relating to particular post offices, will he please contact me?

[Sir Edward Davey (Kingston and Surbiton) (LD)]

rose—

[Sir Edward Davey]

Thank you, Mr Speaker. May I bring to the Secretary of State’s attention the power that he has to mutualise Post Office Ltd to allow sub-postmasters and sub-postmistresses, and their customers, to have a share in their own Post Office? Will he look at this, because it would bring greater sustainability to the post office network?

[Kelly Tolhurst]

That is something I am more than happy to look at in my new role, but it is something that you could have done yourself—[Interruption.] Sorry, Mr Speaker! It is something that the right hon. Gentleman could have done when he was a Post Office Minister.

[Mr Speaker]

Well, anyway, the House is consumed by a state of jollity, and that is always much to be encouraged. Finally, I call Mary Robinson.

[Kelly Tolhurst]

My hon. Friend is right that post offices are now so valuable to our high streets. There are lots of opportunities for post offices to develop further in providing services to their community. As the Minister with responsibility for post offices, I will do whatever I can to facilitate that.