Rail Manufacturing: Job Losses

Debate between Louise Haigh and Huw Merriman

Tuesday 16th April 2024 Commons Chamber

[Louise Haigh (Sheffield, Heeley) (Lab)]

(Urgent Question): To ask the Secretary of State for Transport if he will make a statement on steps being taken to prevent job losses in the UK’s rail manufacturing sector.

[The Minister of State, Department for Transport (Huw Merriman)]

Mr Speaker, before I start, may I thank you for having me up in your constituency of Chorley over the Easter holiday? I pass on my deepest condolences to you and your family for the loss of your father.

I thank the hon. Lady for her urgent question. I am responding on behalf of the Secretary of State, who will shortly be meeting the Alstom group chairman and chief executive to discuss a potential way forward. The Secretary of State will come to the House and make a statement at the appropriate time, noting the fact that they are sensitive commercial discussions.

As set out in the comprehensive open letter from the Secretary of State to the hon. Lady on 29 March, the Government are well aware that companies such as Alstom and Hitachi face short-term gaps in their order books. The letter set out clearly that these are complex problems to which there are not simple solutions, but the Government have been doing everything they can to support the workforce over many months, and continue to do so.

While Alstom is currently consulting its unions and employees on possible job losses, this must be a commercial decision for Alstom. The Government have been working with the company to explore options to enable it to continue manufacturing at its Derby site. We have convened a cross-Whitehall group to advise on how to support continued production at Derby and how best to support those workers who are at risk of redundancy. We have held similar discussions with Hitachi, both in correspondence and face to face. We remain keen to work with Hitachi as it looks for commercial solutions to guarantee the long-term sustainable future of its Newton Aycliffe site. Hitachi is not currently consulting on any changes to its workforce.

The fact remains that the market for passenger trains is a competitive one. The Department cannot guarantee orders for individual manufacturers. Trains are major assets with a lifetime of 35 to 40 years, so there will naturally be peaks and troughs in the procurement cycle. Nevertheless, we expect substantial continued demand for new trains. In recent months, London North Eastern Railway confirmed an order of 10 new tri-mode trains for the east coast main line. A tender for new trains for TransPennine Express was launched in December 2023.

In January this year, I wrote to train manufacturers to outline the pipeline of current and expected orders for new trains. That included details of current competitions for Northern, Southeastern, Chiltern and TransPennine Express, and an expected procurement by Great Western Railway. The contracts are worth an estimated £3.6 billion, with more than 2,000 vehicles to be procured over the coming years. In the meantime, we will continue to work with UK manufacturers, including Alstom and Hitachi, to ensure that there is a strong and sustainable future for the rail industry.

--- Later in debate ---

[Louise Haigh]

May I add my personal condolences to you, Mr Speaker, for the loss of your great father? He was a fine man and a great champion for Warrington and for workers’ rights.

Britain’s rail manufacturing is in crisis. Two of our largest train manufacturers have warned that their very presence in this country is at risk. Alstom, in Derby, is staring down the barrel of 1,300 job losses, and Hitachi, in Newton Aycliffe, another 700. In their supply chains, it is more than 16,000 jobs. Alstom has been making trains in Derby for 147 years, but both Alstom and Hitachi are clear that their uncertain future is thanks to this Government’s inaction. Alstom’s managing director has said that “continued delay” in providing “certainty and clarity” from the Transport Secretary is to blame.

The fact is that the Secretary of State has known about this problem for months. I first raised Hitachi’s concerns with him in this House more than a year ago. Both manufacturers have said that the situation could be rectified by amending their order schedules for a small number of existing, privately financed trains, and we understand that the Transport Secretary has been privately promising them action on that for months. But crucial deadlines have been missed, avoidable job losses have already been made and local businesses have already been forced to close.

The Minister dismisses people’s livelihoods as “peaks and troughs”. In his letter to me of 29 March, the Transport Secretary, as usual, ducked all responsibility. He claimed that he has no influence over procurement contracts, yet his Department has varied contracts in the past. He claimed that this is nothing to do with his mismanagement of HS2, but both struggling manufacturers claim otherwise. He claimed that he is providing certainty for the industry, yet he is refusing to bring forward his long-delayed rail reforms, or set out a rolling stock strategy for the industry.

Britain was the country that created the railways, but that legacy is being trashed by a Conservative Government content to oversee its managed decline. Will the Minister and the Secretary of State finally take responsibility, put aside their ideological opposition to supporting British business, and finally step up for the people of Derby and Newton Aycliffe and for Britain’s railways?

[Huw Merriman]

The hon. Lady asks whether the Secretary of State will take responsibility and work on this matter. He is doing that right now. He is about to start a meeting with the chief executive and chairman. And that is not the first meeting: he has held eight meetings with Alstom and eight with Hitachi to find solutions. Our officials in the Department for Transport have worked incredibly hard, as has everybody in the whole Derby family—the train operator, the unions that I have met and the workforce. We are all rowing together to try to find a solution.

I have to say that it does not help to see this cause being used almost like a political football. As an example, I did not use the expression “peaks and troughs” when it came to dealing with individuals. I said that the procurement cycle leads to that. My words will be clear in Hansard, and I resent having them misinterpreted, because it impacts on people and their feelings. I find it quite irresponsible of the Opposition to do that.

Another example of getting the facts completely wrong is the continued mention of HS2. Let me be clear: the order for HS2 was for 54 trains. That order remains at 54 trains, because they were always for phase 1, which is going ahead. The schedule remains the same and the number of trains remains the same, so let us deal with the facts rather than the fiction and scaremongering that I hear so often.

When it comes to facts, let me say that three of the four train manufacturers we are proud to have in this country have been building their plant here since 2010, under this Conservative Government. No doubt they decided to do so because we have commissioned 8,000 new rolling stock vehicles since 2012. The average age of rolling stock was 21 years back in 2016; it is now under 17 years, because we are investing in rolling stock, and there will be more orders. None the less, it is a complex legal solution that requires sensible minds, and I am very proud that the Secretary of State is leading on that endeavour.

Oral Answers to Questions

Debate between Louise Haigh and Huw Merriman

Thursday 21st March 2024 Commons Chamber

[Louise Haigh (Sheffield, Heeley) (Lab)]

The Minister will have seen reports this week that 3,000 jobs are at risk at Alstom rail factory in Derby. The Government told us that they were doing everything in their power to prevent those job losses, but they appear to be failing. It gets worse: this morning, I received correspondence from Hitachi Rail, warning that despite years of representation to Ministers, no solution has been found that will keep its order books full and safeguard the future of 700 staff at its factory in Newton Aycliffe. The Secretary of State has it in his power to vary contracts and commission the necessary orders. When will he do that and protect those jobs?

[Huw Merriman]

The Secretary of State has led for the Department on the response to Hitachi and Alstom, and their understandable concerns about orders. As I have said, we have a challenge, in that while fleet can last from 35 to 40 years, the average age of our fleet is under 17 years. We have modernised 8,000 out of our 15,500 carriages, and as a result there is a lag with the order book. We are doing everything we can to work with all four train manufacturers to bring more tenders through. Those will be for the TransPennine Express, Northern, Southeastern and, as the Secretary of State mentioned, Chiltern Railways. The work to find a resolution is done in partnership between train manufacturers, the Secretary of State and the Department, and we hope to find that resolution.

Oral Answers to Questions

Debate between Louise Haigh and Huw Merriman

Thursday 14th December 2023 Commons Chamber

[Huw Merriman]

I am glad the hon. Gentleman mentioned that report, because it is completely wrong. For a start, it states that £205 million has been spent on land and property, which is wrong—it is a different figure.

[Louise Haigh (Sheffield, Heeley) (Lab)]

What is it, then?

[Huw Merriman]

I just stated exactly what it is, if the hon. Lady had listened to my answer. We have published exactly how much has been spent: on phase 2a it was £273 million, and on phase 2b it was £201 million. Property and land will be sold only when it is right to do so, ensuring good value for the taxpayer and the communities where the property is sold.

Rail Ticket Offices

Debate between Louise Haigh and Huw Merriman

Thursday 6th July 2023 Commons Chamber

[Louise Haigh (Sheffield, Heeley) (Lab)]

(Urgent Question): To ask the Secretary of State if he will make a statement on plans to close rail ticket offices.

[The Minister of State, Department for Transport (Huw Merriman)]

I am answering the urgent question on behalf of the Secretary of State, who is currently involved in this process, so it is appropriate for me to respond.

There has been a huge shift in the way in which passengers purchase tickets at railway stations, with about one in every 10 transactions taking place in ticket offices in 2022-23. That is down from one in three a decade earlier and equates to 13% of rail revenue. Despite this, our stations have hardly changed in the past 10 years, which means that staff are constrained to work in ticket offices, although they could serve passengers better on station platforms and concourses. I am pleased that the rail industry has launched consultations on the future of ticket offices under the ticketing and settlement agreement process, which will give the public an opportunity to scrutinise the train operating companies’ proposals to ensure that they work in the best possible way for passengers.

These changes are about modernising the passenger experience by moving staff out of ticket offices to be more visible and accessible around the station. Crucially, no currently staffed stations will be unstaffed as a result of this reform—staff will still be there to provide assistance and additional support for those who need and want it—and the new approach will take into consideration the potential impact on individuals with protected characteristics. It is of course vital that our railway is accessible to all and I have engaged directly with accessibility groups and will continue to do so.

This is an industry process, so I encourage Members and their constituents to engage with their local train operators to find out more about the proposals for their local stations. If passengers want to raise any views, they can contact the relevant passenger body. I believe that the industry’s proposed reforms could enable staff to provide a more flexible, agile and personal service, creating the modern experience that people expect.

[Louise Haigh]

Yesterday, the Rail Delivery Group confirmed plans to close hundreds of rail ticket offices across the country but, this morning, as is usual when difficult decisions are made, the Secretary of State was nowhere to be seen. This announcement, driven every inch of the way by his Department—not the industry, as the Minister claimed—has caused huge anxiety to vulnerable and disabled passengers and rail staff up and down the country; and how long have people been given to respond to these hugely consequential plans? Just 21 days. This is a massive change to the network, affecting more than 150 million rail journeys a year and hitting elderly and disabled passengers the hardest, and they have been given only three weeks to have their say. Why does the Minister not just admit that this consultation has nothing to do with taking on board their concerns? It is a rubber stamp for a decision that he has already made, with the most vulnerable cut out altogether.

Can the Minister give any reassurance to vulnerable passengers who rely on staff in railway stations to help them to purchase tickets and board trains? Why has he not published equality impact assessments alongside these consultations? Given that he claims the solution is modernisation and digital ticketing, does he know how many stations do not currently have tap-in or barcode capability? What assessment has he made of the impact on revenue for our rail industry? Will he admit that this process is merely a prelude to job losses that will mean far fewer staff to serve the travelling public, and the continued managed decline of our railways?

We know what this is really about. It is not about reforming our railways; the Government have already ditched plans for Great British Railways. It is not about modernisation; the Department has already confirmed that the contactless ticketing roll-out is limited to London and the south-east. This is about one thing and one thing only: the Conservatives crashed the economy and now they are asking for more self-defeating cuts on our declining railways.

On the Minister’s watch, our rail services are already being run into the ground, with cancellations at record highs, basic services such as wi-fi being taken away and legislation to reform the network on the scrapheap. Will he simply acknowledge that the Conservatives cannot fix the railways because they broke them in the first place?

[Huw Merriman]

Let me give a little more detail on the Secretary of State’s role in the ticketing and settlement agreement, which has been in place not just under Conservative Administrations, but under the last Labour Administration. The Secretary of State is required to make a determination where the train operators and the passenger groups cannot reach an agreement. That makes it entirely right for him not to be here to respond to the urgent question.

The hon. Lady mentioned job losses. First and foremost, this is all about taking expert ticketing staff into the parts of the station where currently they are not seen. If only 10% of tickets are sold across the ticket counter, crudely, that means that 90% of passengers are not accessing that member of staff. The idea is to take the member of staff on to the platform to help passengers to purchase tickets via a ticketing machine or online. Ninety-nine per cent of tickets can be purchased in that manner, so there is no reason why this will not be an improvement.

In the event that there are some staff who do not wish to make the transition, of course, the train operators will need to look at that. The sad reality is that there is an offer on the table that would guarantee no compulsory redundancies up to December 2024, but the union leaders refused to put that offer to their members. If there is any concern about the impact on jobs, the National Union of Rail, Maritime and Transport Workers and those it backs financially might wish to take some responsibility for that.

The hon. Lady talked about pay-as-you-go being rolled out only to the south-east. The devolution deals that have been announced will enable the roll-out of pilots by the Mayors of the West Midlands and Manchester by the end of this year. She also talked about wi-fi being taken away, but that is not the case either. We are looking for each train operator to do research to show how much the wi-fi is used, how helpful it is and what more can be done.

HS2: Revised Timetable and Budget

Debate between Louise Haigh and Huw Merriman

Tuesday 14th March 2023 Commons Chamber

[Louise Haigh (Sheffield, Heeley) (Lab)]

Eighteen months ago, the Government slashed Northern Powerhouse Rail, binned HS2 to Leeds and sold out the north of England. Here we are again: huge changes affecting billions in investment and jobs announced at 5 pm on Thursday—minutes before the House rose.

We now know why the Secretary of State was desperate to dodge scrutiny: I have a leaked document written by his most senior officials that blows apart his claims and lays bare the consequences of the decisions he has hidden from. His chief justification for the delays to HS2 was to “balance the nation’s books”, but his Department admits what he will not—that the delays themselves will increase costs. It admits that they will cost jobs and that construction firms could go bust; it cannot rule out slashing high-speed trains that serve Stoke, Macclesfield and Stafford altogether; and it suggests that HS2 could terminate on the outskirts of London until 2041.

Is it not time that the Minister came clean that this absurd plan will hit jobs, hurt growth and cost taxpayers even more? As his own officials ask,

“you have already changed the design once, which wasted money. What will be different this time?”

Even the Government have lost faith in this Government, and little wonder. Is there anything more emblematic of this failed Government than their flagship levelling-up project that makes it neither to the north nor to central London? Last year they crashed the economy, and once again they are asking the country to pay the price. Does this announcement not prove once and for all that the Conservatives cannot fix the problem because the Conservatives are the problem.

[Huw Merriman]

I thank the hon. Lady, but we obviously do not comment on leaked documents, certainly not documents that I have not been given. I say to the hon. Lady that it is an entirely responsible Government approach to balance the commitments we make—as I have stated, the transport commitments that have been set out to the House total £40 billion—and, indeed, to reflect on how the delivery of HS2 had been designed. It is also well within a responsible Government’s remit to consider the public spending pressures that there are right now, due to the help that this Government have given to those facing increased energy costs and the continued costs from the pandemic, and therefore the impact on the amount of borrowing. Over £100 billion is required each year, or it was last year, to service the overdraft, which is greater than the amount we spend on defence. It would be entirely irresponsible for any Government to look at all of its portfolio without those figures in mind.

However, I am very proud of what we are doing on delivering HS2. The construction of the Curzon Street station in Birmingham, which remains, as I have stated, is expected to create 36,000 new jobs. On the hon. Lady’s point about not levelling up across the country, the redevelopment of Piccadilly station in Manchester is expected to create 13,000 new homes. In London, the regeneration of Old Oak Common will contribute £15 billion over the next 30 years. Those are figures to be proud of, and we will deliver them.

I found it very helpful, at the end of last week, to discuss this with stakeholders from across the country—businesses, regional organisations, council leaders and Mayors on the route—who were all very supportive about what the Government are doing. They also have to run budgets—unlike the Opposition—so they understood the pressures that the country faces, and were absolutely delighted that this project will continue to be built.

Oral Answers to Questions

Debate between Louise Haigh and Huw Merriman

Thursday 2nd March 2023 Commons Chamber

[Louise Haigh (Sheffield, Heeley) (Lab)]

Last month I was delighted to visit the Hitachi Rail manufacturing facility in Newton Aycliffe, where 800 highly skilled employees are delivering world-class manufacturing excellence. They told me that they need certainty from the Government, but briefings, leaks and rumour about the future of HS2 are pouring out of this Department. Will the Minister categorically deny that his Department is working on any plans that would slash what is left of the eastern leg and leave Yorkshire and the north-east permanently entirely cut off by cutting high-speed platforms at Euston?

[Huw Merriman]

I hope I made it clear, in answer to one of the hon. Member’s colleagues who was not as supportive of HS2 as I am, that we are absolutely committed to delivering HS2 trains from London to Manchester and going over to the east as well, but of course we have to look at cost pressures. It is absolutely right that HS2 focuses on costs; that should be expected of the Government and the taxpayer. We will continue to do so, but I can tell the hon. Member that I am absolutely committed, as are the Secretary of State and the entire Department, to delivering HS2 and the benefits for this country.

Oral Answers to Questions

Debate between Louise Haigh and Huw Merriman

Thursday 19th January 2023 Commons Chamber

[Louise Haigh (Sheffield, Heeley) (Lab)]

The Minister must surely agree that this is simply not good enough. In November, he assured us that the new timetable would be deliverable. This week, the results are in and the service has never been worse. This morning alone, at least 123 services have been cancelled or disrupted on TransPennine Express. He cannot pretend that the management are blameless in this farce. The north cannot afford to continue like this any longer, so will he strip TransPennine Express of its contract and bring it under the operator of last resort?

[Huw Merriman]

The operator of last resort does a great job, but I also hear criticisms from Members across the House with regard to Northern Rail, which also has higher than average cancellations, and Northern Rail is operated by the operator of last resort. I am also keen to ensure that the operator of last resort has a manageable portfolio. Nothing I have said in the House today or in the Select Committee yesterday absolves the management of any blame. I have said that this situation requires action from all in responsible positions, and if it cannot be turned around, decisions will be made.

Rail Cancellations and Service Levels

Debate between Louise Haigh and Huw Merriman

Thursday 1st December 2022 Commons Chamber

[Louise Haigh (Sheffield, Heeley) (Lab)]

(Urgent Question): To ask the Rail Minister if he will make a statement on rail cancellations and services, in particular across the north and nationwide.

[The Minister of State, Department for Transport (Huw Merriman)]

I thank the hon. Lady for her urgent question, which gives me the opportunity to set out the Government’s disappointment with the experience of many passengers, not just across the north, but in other parts of the country. We recognise that current performance is not acceptable and is having a significant effect on passengers and the northern economy.

I will focus on two operators to set the scene. The first is TransPennine Express services. TPE services have been impacted by a number of factors, including higher than average sickness levels among train crew, the withdrawal of driver rest day working, which is the option for drivers to work their non-working days as overtime, the withdrawal of conductor rest day working and other overtime working, and strike action on Sundays and some Saturdays since mid-February under a formal RMT union dispute.

TransPennine Express had a formal rest day working agreement with ASLEF that was due to expire in December 2021. The rates of pay under that agreement were 1.75 times the basic pay with a minimum of 10 hours paid, the most generous such agreement in the industry. In December 2021, TPE approached ASLEF seeking to extend the existing agreement. Rest day working forms no part of the terms and conditions, so either side is free to refuse or enter into the agreement when it expires.

On this occasion, local ASLEF officials refused to extend the agreement and sought to negotiate different terms. In the absence of a new agreement, drivers withdrew their rest day working when the existing agreement ended, and further offers have not materialised into an agreement. TPE is undertaking an intensive programme of crew training to eliminate a backlog of pandemic-induced route knowledge loss and delayed traction training, and to prepare the business for timetable changes such as the Manchester recovery taskforce December 2022 change.

Turning briefly to Avanti, the primary cause of recent problems with Avanti train services has been a shortage of fully trained drivers. It is a long-standing practice for train companies to use a degree of overtime to run the timetable, to the mutual benefit of staff and the operators. Avanti was heavily reliant on drivers volunteering to work additional days because of delays in training during covid. When volunteering suddenly all but ceased, Avanti was no longer able to operate its timetable. However, nearly 100 additional drivers will have entered formal service this year between April and December, and Avanti West Coast has begun to restore services, focusing on its key Manchester and Birmingham routes.

I will end by saying that we need train services that are reliable and resilient to modern-day life. While the companies have taken positive steps to get more trains moving, they must do more to deliver certainty of service to their passengers. We will fully hold them to account for things that are within their control, and we look for others to be held to account on matters that are outside of the train operators’ control.

--- Later in debate ---

[Louise Haigh]

I thank you, Madam Deputy Speaker, and Mr Speaker for granting this important urgent question. Rail services across the north are once again in meltdown. Today, almost 40 services have been cancelled on TransPennine Express alone—and those are just the published figures, because they were cancelled overnight. People are cut off from jobs and opportunities, investors I spoke to this morning in Manchester are thinking twice about investing in the north, and businesses are unable to recruit because their potential employees simply cannot rely on the train to get to work. The damage that this fiasco is doing is enormous, and in just 11 days, major timetable changes are due to come into force. I do not say it lightly, but if this were happening elsewhere in the country, the Government would have taken far greater action by now. Instead, they have—not just for weeks, but for months and years—forced the north to settle for a sub-standard service and to accept delays, cancellations and overcrowding.

Not only did Ministers allow that, but they actually rewarded the abject failure of the operators. Six years ago, TransPennine Express had exactly the same issues it faces today. Then, as now, it blamed staff shortages and rest day working. It said six years ago that it would recruit drivers and improve resilience, but here we are again, in crisis—and the public are paying the price. Have the Government sanctioned operators or demanded improvement? No. They continue to reward failing operators such as Avanti West Coast by extending their contracts. Yesterday, it was revealed that they signed off a decision for Avanti to hand over £12 million in taxpayers’ cash as dividends to its shareholders.

Enough is enough. We cannot continue like this. It is time for Ministers to take action. Will they put operators on a binding remedial plan to fully restore services or face penalties and withdrawal of the contract? Will they claw back the taxpayers’ money that Ministers have allowed to flow out in dividends? Can the Minister confirm whether the Secretary of State is preventing an offer on rest day working between operators and unions? Enough is enough. We cannot continue like this.

[Huw Merriman]

I agree with the hon. Lady: we cannot continue like this. That is why we have set in place a series of talks and negotiations aimed at changing working practices so that train operators are not reliant on seeking the approval of workforce to run a seven-day operation. That just does not work for anyone—management, workforce or, indeed, passengers—because the train operators are then required to seek the voluntary assistance of workforce to work on certain days. The hon. Lady says that we cannot carry on like this and that enough is enough, so I hope that she will join me in pushing for reforms.

With regard to Network Rail reforms, a 4% plus 4% offer has been put on the table. That can be self-funded and allow workforce to move to better, more modern working jobs with more interaction with and assistance for passengers, and a better experience for workforce and the passenger. Yet we have been unable to reach an agreement. The hon. Lady refers to timetable changes. Those are vital for us to increase the number of Avanti services again, but if we have industrial action in December, it will be even more challenging to put them in place.

I join the hon. Lady in saying that enough is enough and that we need change. This Government are seeking to implement change, but as Opposition Members will know, that cannot be dealt with unilaterally. It requires the agreement of the unions to modernise and change working practices. That will give train operators the ability to roster on a seven-day working basis and to see training go through on a much swifter basis. We will then have the workforce in place and the resilience. I call on the hon. Lady to not just talk about the fact that we need change, but to work with us and to influence the unions to get that change delivered.

Oral Answers to Questions

Debate between Louise Haigh and Huw Merriman

Thursday 24th November 2022 Commons Chamber

[Louise Haigh (Sheffield, Heeley) (Lab)]

I warmly welcome the new Secretary of State and the entire ministerial team—and in particular the former Chair of the Transport Committee, the hon. Member for Bexhill and Battle (Huw Merriman), who I am sure will bring his expertise and experience to the team. Of course, the problem for him and the benefit for the Opposition is that we know what he really thinks. [Laughter.] Has he managed to persuade the Secretary of State that the integrated rail plan under-serves the needs of the north and lets down those who require change the most?

[Huw Merriman]

I thank the hon. Lady for her very warm welcome and her pledge to hold me to account on things that may have been written before. I am passionate about seeing the entire levelling up of the United Kingdom when it comes to rail. On the integrated rail plan, I gently remind her, using words from a Transport Committee report, that we welcomed

“the scale of the Government’s promised spending on improving rail in the North and the Midlands. £96 billion is a very substantial sum; it has the potential to transform rail travel for future generations”

and level up the country. Wise words; I still believe in them now.

[Louise Haigh]

I thank the Minister for that gentle reminder. He knows full well that that was not what was promised to the north and the midlands no fewer than 60 times and in successive Conservative manifestos. Not only are the north and the midlands not getting the infrastructure that they require, but rail services across the country are in freefall, experiencing record cancellations on top of fewer services than at any time since records began. One couple wrote to me this week and said they felt in danger from overcrowding and began to understand how real tragedies could occur. Will the rail Minister apologise for his predecessor’s signing off the decision to slash tens of thousands of services every month and confirm when those services will be restored?

Offensive Weapons Bill

Debate between Louise Haigh and Huw Merriman

3rd reading: House of Commons & Report stage: House of Commons
Wednesday 28th November 2018 Commons Chamber

[Huw Merriman]

I will not give way again because many others wish to speak.

[Louise Haigh]

Unfortunately, there is not time for me to address all the amendments in the group, but I thank my right hon. Friend the Member for East Ham (Stephen Timms), my hon. Friends the Members for Bristol South (Karin Smyth), for Sheffield Central (Paul Blomfield) and for Redcar (Anna Turley), my right hon. Friend the Member for Delyn (David Hanson) and my hon. Friend the Member for Hampstead and Kilburn (Tulip Siddiq), who have all tabled reasoned, evidence-based amendments that would significantly improve the Bill. I support them all wholeheartedly.

The hon. Member for Bexhill and Battle (Huw Merriman) was very kind in offering his support to new clause 5, which would introduce a simple prohibition on the display of bladed products in shops. The new clause is the result of a huge amount of work led by my hon. Friend the Member for Lewisham, Deptford (Vicky Foxcroft), who is chair of the cross-party Youth Violence Commission. One of her most important recommendations was the prohibition of knife displays in shops, a matter that was discussed when experts gave evidence to the Committee. The Union of Shop, Distributive and Allied Workers said that it would be helpful to put knives behind displays in shops. A representative said:

“Obviously, now big retailers are increasingly going down the route of making it more difficult for customers to get their hands on the product until they have been age-checked and the transaction is safe. The problem with it, of course, is that all sorts of bladed things are being sold and it is about where you draw the line.”––[Official Report, Offensive Weapons Public Bill Committee, 19 July 2018; c. 98, Q239.]

Obviously we want retailers to check people’s ages properly when they seek to purchase knives, but the fact of the matter is that many young people who want to access knives will go into shops and steal them if they are readily available. Ultimately, there is little point in having the provisions in the Bill, and putting all the restrictions and burdens on online retailers, if we are not asking face-to-face retailers to abide by the same regulations.

There are a number of restrictions under the law relating to other products—most obviously, the extremely restricted provisions relating to the sale of tobacco, which prohibit the display of tobacco products except to people over the age of 18. The Tobacco Advertising and Promotion Act 2002 specifically refers to under-18s, so the principle already exists in law. New clause 5 simply transposes to knives the already sufficient and proportionate response to tobacco. As the hon. Member for Bexhill and Battle said, if we walk into a shop and buy cigarettes with which to kill ourselves, they will be behind locked cabinets. A young person, or any person, who walks into a shop and steals a knife in order to kill another person is free to do so: as things stand, the knives are not even behind locked cabinets. We see no reason why that should not be extended to bladed products. Given that the Government are so committed to clamping down on online sales, we hope they recognise that face-to-face sales are a clear issue that needs further consideration.

While we are on the topic of restricting the supply of knives, let me turn briefly to the amendments tabled by my hon. Friend the Member for Sheffield Central. The clause to which they relate was debated extensively in Committee. We fully support the Government’s intention, but are worried that the clause may punish businesses while having little impact on the ultimate aim—to reduce violence.

I remain baffled as to why the Home Office has not simply put strict age verification controls on the sale of knives online, as it does, for example, with gambling, but instead has chosen to punish the online sales industry and traders such as those mentioned by my hon. Friend the Member for Redcar. My hon. Friend’s amendments are very reasonable compromises, put forward by the very businesses that the Minister claims have complained that they are too bureaucratic. I fear that the clause has not been thought through sufficiently, and will have untold consequences.

New clause 1 was tabled by my right hon. Friend the Member for Delyn, whom I congratulate on his incredible, impassioned speech and the fantastic campaign that he has mounted. We have made clear from the outset that we are prepared to support amendments to protect shop workers. In Committee, we heard powerful evidence from USDAW and the British Retail Consortium about the increase in the number of attacks on shop workers as a result of restricted sales, and we wholeheartedly support any measure that which will improve their protection. I congratulate USDAW on its brilliant campaign.

Let me now deal with new clause 31. The death of a pregnant woman, Sana Muhammad, just a few short weeks ago in the constituency of my hon. Friend the Member for Ilford North (Wes Streeting) has, in his words,

“shocked people…to the core.”—[Official Report, 14 November 2018; Vol. 649, c. 310.]

She was attacked in front of her five children by a man with a crossbow, and was tragically pronounced dead a short while afterwards. That tragic case has brought to light, once again, the remarkably weak controls on crossbows, which have lethal effects. It is incumbent on us as a Parliament to decide whether we are comfortable with circumstances in which a lethal weapon is freely available to anyone over the age of 18, with no licensing restrictions at all.

There have been many tragic and disturbing incidents involving crossbows, and the law as it exists has developed only incrementally. Our new clause would create a licensing system. That is not a step that any Parliament should take lightly, but we believe that it has the potential to remove the unregulated sale and possession of some of the most lethal crossbows, while also ensuring that the law-abiding community who use crossbows for sporting purposes are still able to carry out their legitimate pursuit. The clause also creates safeguards which allow further consideration of the power under which a crossbow would become subject to licensing provisions, allowing the Secretary of State to make regulations determining the appropriate draw weight.

Our new clause 6 calls for a report on the causes behind youth violence, a topic that is not discussed much in the entire debate around offensive weapons. The new clause goes to the heart of our issues with the Bill and the Government’s seriously weak serious violence strategy. The strategy was published only in April yet we have already seen a U-turn from the Home Secretary, finally agreeing that the public health model must be adopted and that agencies need to be working better to tackle violence. We have been telling the Government all of this for at least the last year, so we are pleased to see progress, but we are alarmed that the strategy is so desperately short on detail. Members hear almost every day from constituents about the levels of crime and the cuts to policing in our constituencies.

The police service is at risk of becoming almost unrecognisable to the public and irrelevant according to the Home Affairs Committee. “Panorama” reported recently that up to half of crimes are being “screened out” by some forces, meaning they get no investigation at all. This is just the latest indication of a police service creaking under the strain of soaring demand after eight years of austerity. When crimes are not being investigated, deterrence reduces and crime rises further still. It is a vicious circle and one the present Government have locked us into with little recognition of their role in it.

Axing the police was a political choice that has done incalculable harm to our communities, and it is a choice that I suspect many Conservative MPs who voted for swingeing cuts privately regret.

Budget Resolutions and Economic Situation

Debate between Louise Haigh and Huw Merriman

Wednesday 8th July 2015 Commons Chamber

[Louise Haigh (Sheffield, Heeley) (Lab)]

Today’s Budget is the final act in a financial crisis that has seen debts moved from the financial sector to the public purse and piled on to individuals who will be comprehensively unable to foot the bill for the Chancellor’s raid on tax credits, housing benefit for under-25s and families with more than two children.

I shall deal with this before hon. Members leap to intervene. The living wage is not set at a level that would permit households to cope without in-work support. The Resolution Foundation, which the Chancellor referenced, has said:

“If in-work support is cut then, as night follows day, the Living Wage will rise.”

Excluding in-work support raises the London living wage to £11.65, revealing the Chancellor’s announcement as mere rhetoric. As my right hon. and learned Friend the Leader of the Opposition said, it is giving with one hand and taking with the other.

The Budget serves notice that we have a Chancellor steadfastly refusing to tackle fundamental issues in our economy that are causing rising levels of household debt. It is ominous to listen to him talk with such confidence, given that significant underlying weaknesses in the economy that have been causing serious concern for some time are completely ignored. He might have wanted a rebalanced economy and a recovery built on rising incomes, but that is simply not happening. High debt, low pay, an economy based on credit and a housing bubble, a deregulated financial sector—back to business as usual.

What was wrong in 2007 remains wrong to this day. It is that we do not have a resilient financial system. In the recently published “Financial System Resilience Index”, the UK ranked lowest of all G7 countries. It is that household debt is rising to levels not seen before—higher even than at the peak of the crisis. Last year alone, it grew by 9%, which was an increase of £20 billion on households’ credit cards and other debts. It is that the housing bubble continues apace and markets are overheating. Exhortations from the Governor of the Bank of England have been ignored. He warned:

“What happens if households are borrowing at high multiples is they have to economise on everything else in order to pay their mortgages. And if enough people are highly indebted, that has a big macroeconomic impact… There is the possibility that currently responsible lending standards become irresponsible to reckless.”

These issues are all interlinked. We have shifted the debts of the financial sector on to the public balance sheet, and now, in the final act of the financial crisis, the Chancellor is shifting it on to individuals. Ours is an economy built on the same old mistakes. I do not think that anyone in this place would care to suggest any longer that we are beyond the days of boom and bust—we are witnessing this in the international markets as we speak. While the world is understandably focused on Greece, China’s markets are in little short of meltdown. Unfortunately, crashes are far from being a thing of the past, and I would suggest that in the UK we are closer to the next one than we are to the last.

Before I entered this place, I worked in the City of London, and I can report to the House that the culture of risk taking, short-termism and excessive pay and bonuses remains as prevalent today as it was before the crash—although I hasten to add that I was not privy to such excessive pay.

[Huw Merriman]

Does the hon. Lady not agree that segregating retail banks from investment banks makes it less likely that if the investment bank collapses, it will contaminate the commercial bank? I declare an interest, having worked on the unwinding of the Lehman Brothers estate.

[Louise Haigh]

I absolutely agree that separating the investment arm from the high street banking arm was one of the answers to the cause of the financial crash, but we have not had an update recently, and as I understand it, the banks are not co-operating on this issue—either with each other or with the regulators. It would therefore be very helpful to have on update on that from the Minister.

The financial sector heaped masses of debts on to ordinary people—our constituents. We do not want it to pay; we are not vengeful sorts in this House—we want it to reform so that what happened can never happen again. However, instead of learning from the mistakes that I accept the last Labour Government made—mistakes that would have enabled the Government to build a sustainable economy in which everyone can share—the Conservatives have imposed their ideological agenda on a terrible crisis in order to shrink the state and entrench inequality. That is why the UK’s recovery was delayed by three years after America’s and Germany’s, squandering billions of pounds in lost output. However, what matters now is what the Government will do about that. The problem is that the Government are not merely acting with intransigence; they are exacerbating the problems.

The measures in today’s Budget on tax credits may take debt off the Government books, but they heap it directly on to some of the most low-paid and the most vulnerable and those who can just about afford their mortgage, if they have one at all. Fourteen-hundred pounds for a working parent who lives on their own—that is what the Government have saved, but do they think that a lone parent can afford to lose £1,400 a year? He or she will take out credit cards to pay for their children’s school trip, clothes, the rent or the mortgage, and household debt will rise and rise. Turning maintenance grants into student loans, passing debt straight off the Government’s books on to those who can least afford it and who are the most averse to debt—a generation of young people is being created that is not just accustomed to personal debt but reliant on it.

The Chancellor said today that he wanted to move away from an economy based on debt, but he made no mention of records of household debt. Indeed, some of the OBR’s forecasts were not mentioned by the Chancellor today—for example, the forecast that the ratio of total household debt to income will rise by 26% by 2020, most of it unsecured debt, an additional £48 billion of which the OBR expects to be added by 2020, compared with the March outlook. Overall household debt is now expected to reach 167% of household income by 2020, while household disposable income will be down by 1.5% in 2020, compared with the estimate at the previous Budget.

Private debt turned into public debt and put on to the backs of individuals, and the same mistakes being repeated: if this were a Budget genuinely designed to help working people, we would have seen measures to tackle the inherent issues in our economy. We would have seen genuine ambition on lifting wages, not mere rhetoric. We would have seen action to lower housing costs, commitments to increase social housing, and measures to militate against spiralling household debt. Instead, we have seen yet more tinkering around the edges, just like in every Budget in the last five years. Not only does this Budget hurt working people; it stores up yet more problems for the future that it will take at least a generation to fix.