Oral Answers to Questions

Margot James Excerpts

Tuesday 27th June 2017 Commons Chamber

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

3. What his policy is on the non-release or late release of cash retentions in the construction industry.

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

Unjustified late and non-payment of a retention payment or any amount owed is unacceptable. These practices cause particular problems for small businesses in the construction sector, and the Government are committed to tackling them. We will shortly be publishing research into these issues, alongside a consultation document.

[Stuart C. McDonald]

The system of cash retentions has been wreaking havoc in the construction industry for decades. Can the Minister assure us that there will soon be radical action to overhaul the system, and can she explain why it has taken so long?

[Margot James]

There is, indeed, far too much abuse of the system of cash retention, and it has been going on for too long. The burden of administrative time spent securing payments and the drain on working capital weigh far too heavily on smaller firms in the supply chain, and I can assure the hon. Gentleman that we will be taking action.

[Toby Perkins (Chesterfield) (Lab)]

If the Government had only listened in 2015 to the amendments the Labour party tabled to the Small Business, Enterprise and Employment Bill, we would already have a solution. We were told then that the Government were going to take action. We were told again a few months ago that they were taking action with their proposals about naming and shaming businesses that did not publish their late payments. We now have yet another consultation. Research from Crossflow Payments shows that 74% of small businesses do not believe that the Government’s recent changes will make any difference. Can we have a policy that actually enforces action on late payments, rather than the series of consultations that we have had?

[Margot James]

I agree that action is needed, but it is important that we take the right action. We have undertaken a consultation, the results of which will be published shortly. That will be followed by a consultation on the 2011 changes to the Housing Grants, Construction and Regeneration Act 1996, which will consider the merits of ring-fencing retentions and the extent to which contractors are making the payment of retentions conditional on the performance of obligations under other, completely separate contracts.

[Jeremy Lefroy (Stafford) (Con)]

4. What steps he is taking to ensure that the electric grid is able to support the charging of the number of electric cars estimated to be in use by 2020.

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[Gareth Johnson (Dartford) (Con)]

5. What steps he is taking to support the growth of small and medium-sized businesses in the Thames Gateway.

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

Supporting small business is a crucial part of our industrial strategy. The Government are investing in the Thames Gateway, including through the local growth fund and the new lower Thames crossing. We will continue to work with industry and local authorities in the Thames Gateway to create the conditions for all businesses to thrive.

[Gareth Johnson]

The lack of connectivity between Kent and Essex frustrates commerce between those two counties. The lower Thames crossing will help with that, but it will take some years for it to be built. Will the Minister use that time to work with local businesses in the area to unlock its huge potential, which has yet to be fully realised?

[Margot James]

The lower Thames crossing is due to open in 2025. In the meantime, local growth hubs will continue to deliver support services to help businesses in the area to grow over that period. In addition, almost half of the South East local enterprise partnership funding of £274 million is directly supporting growth in north Kent and south Essex by improving transport infrastructure, addressing skills needs and creating new business spaces.

[Stephen Timms (East Ham) (Lab)]

The Minister will know that one of the strengths of the Thames Gateway is the closeness of connections elsewhere in Europe, and one of the worries that small and medium-sized businesses have is whether they will be able to continue to recruit staff from other EU countries after Brexit. Will she acknowledge the strength of concerns of firms in the Thames Gateway, and can she offer them any reassurance about the prospects after Brexit?

[Margot James]

Having travelled around the country talking to many businesses over the past year, I acknowledge those concerns in the Thames Gateway area. However, I was reassured—I hope the right hon. Gentleman was, too—by the Prime Minister’s opening contribution to the negotiations last week and the reassurance she offered many hundreds of thousands of EU citizens currently residing in the UK, including those working in the right hon. Gentleman’s area.

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

rose—

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

I welcome the hon. Gentleman to the House, along with the considerable expertise he brings on labour market issues from his former employment.

Zero-hours contracts allow people to access the labour market who cannot or do not want to commit to standard, regular work. The Government recognise the concerns about employers who may be breaching the rules or otherwise exploiting their position. We want to make sure that everyone is paid properly and receives the employment rights to which they are entitled.

[Alex Norris]

I thank the Minister for her response and for her kind words. Given the ease with which, just yesterday, £1 billion was found to protect only one job in Westminster, will the Minister please say what actions the Government are taking to encourage business to offer genuine financial and personal security to the nearly 1 million workers on zero-hours contracts?

[Margot James]

The Government believe that people are entitled to be treated fairly at work, regardless of what type of contract they have with the company for which they work. The Prime Minister commissioned Matthew Taylor to undertake a review of the rights of employees. He will report on the ways in which employment regulations need to keep pace with changes in the labour market very shortly.

[Ms Angela Eagle (Wallasey) (Lab)]

I welcome the Minister’s statement that the Government are determined to ensure that employees get their employment rights. Why, then, did the Government introduce the huge fees for access to employment tribunals? Will they now abolish those fees?

[Margot James]

Employment tribunals are a matter for the Ministry of Justice, but I am in discussions with it over the review of employment tribunals that it has undertaken and we keep a watching brief on the matters the hon. Lady raises.

[Jack Dromey (Birmingham, Erdington) (Lab)]

What does the Minister have to say to the young dustman who said to me, “Jack, I’ve just got married. We’re about to have a baby. We’re paying a fortune in rent. We’d love to buy our own home, but no chance, because I’m on zero-hours contracts”? Is not the truth that he and millions of workers like him have seen through the pretence that the Conservative party is somehow the party of the working class, and the false claims and the phoney promises, and have simply had enough of falling pay, squeezed living standards and insecurity in the world of work?

[Margot James]

I think we should have perspective on these matters, because less than 3% of the UK workforce are actually on zero-hours contracts, and according to the most recent research 70% of those people are content with the number of hours they are working. I do accept the hon. Gentleman’s point about his constituent, however, and that is precisely the scenario that Matthew Taylor has reviewed and will report on very soon.

[Carol Monaghan (Glasgow North West) (SNP)]

10. What safeguards the Government plan to put in place to protect small businesses as part of negotiations on the UK leaving the EU.

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

Ministers in the Department for Exiting the European Union and I are in regular discussions with small and medium-sized enterprises and their representatives, and we are arranging a joint ministerial roundtable with SMEs to ensure that their voices are heard throughout the Brexit negotiations. Only last week, the permanent secretary of the Department for Business, Energy and Industrial Strategy and I held a roundtable with small businesses on the negotiations.

[Carol Monaghan]

A survey by the Federation of Small Businesses found that 92% of exporting small businesses trade in the EU single market. How does the Minister predict those small businesses will be affected by the loss of our membership, and how will she ensure that the sector continues to be represented in any future negotiations?

[Margot James]

The Government are committed to negotiating a full and open trade agreement with the European Union on our departure. As my right hon. Friend the Secretary of State said earlier, we are aiming for a situation in which no tariffs are applied to SMEs that export into the single market and there is no unnecessary bureaucracy.

[Wes Streeting (Ilford North) (Lab)]

Many SMEs in my constituency are part of European and global supply chains. Does the Minister understand that those businesses, as well as larger financial services businesses, need clarity and certainty? When will she and the Government be in a position to give those businesses certainty about the transitional arrangements that will be put in place? As she knows, businesses are already making investment or de-investment decisions.

[Margot James]

The hon. Gentleman’s points are valid, but they are part of the ongoing negotiations, which, as he knows, have some way to go. However, we are defending our position as the No. 1 destination for foreign direct investment, and we will ensure that SMEs have a strong position in global supply chains into the future.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

11. What plans he has to implement an energy price cap.

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[Tracy Brabin (Batley and Spen) (Lab/Co-op)]

T3. Research by Citizens Advice found that half the people on zero-hours contracts, and two thirds of people on temporary contracts, worryingly believe that they are not entitled to paid holiday. Kirklees citizens advice bureau has found employers deliberately misleading workers about their rights. What steps is the Minister taking to make sure that workers are aware of their rights to a fair holiday? What repercussions will there be for companies that mislead staff? Can the Minister confirm when the Taylor review will be published?

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

The hon. Lady is right to draw attention to workers who are misled and workers who believe erroneously that they have fewer rights than they do. We are absolutely committed that any individual, whatever contract they are on, is entitled to their rights. We have increased the powers open to Her Majesty’s Revenue and Customs to enforce those rights.

[Victoria Atkins (Louth and Horncastle) (Con)]

T9. Market towns are vital to the rural economy, and they are the heart of rural communities, drawing people together across the 531 square miles of my constituency. Modern shopping habits, however, can mean that it is difficult for businesses in market towns to survive. What are the Government doing to support our much-needed and much-loved market towns?

[Margot James]

Market towns, such as the ones in my hon. Friend’s constituency, will have all the support we are giving to the retail sector and high streets so that they can flourish.

[Kirsty Blackman (Aberdeen North) (SNP)]

T4. The National Audit Office recently published a report on Hinkley Point C that is nothing short of damning, describing it as “risky and expensive”. When will the Government listen to the experts and scrap this costly expenditure, and when will they invest instead in carbon capture and storage?

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[Will Quince (Colchester) (Con)]

The Secretary of State is aware that I have long campaigned for parental bereavement leave, and I was delighted to see this policy in not only the Conservative manifesto, but the Labour manifesto. On that basis, will he kindly set out what steps the Government will take to introduce this important benefit?

[Margot James]

I agree that bereaved parents should have the opportunity to grieve away from the workplace, and we will seek to provide for that. I am willing to meet my hon. Friend to discuss further how we might make such provision.

[John Cryer (Leyton and Wanstead) (Lab)]

The Secretary of State has talked repeatedly today about the discussions he has had on Brexit. Which trade unions has he met, and when?