Whirlpool: Product Safety System

Margot James Excerpts

Wednesday 26th April 2017 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Ms Ryan. I congratulate the hon. Member for Hammersmith (Andy Slaughter) on securing this important debate and echo the remarks of hon. Members about his spearheading of the whole campaign.

We have made considerable progress since I last had the opportunity to engage in a debate on product safety. However, I see from hon. Members’ remarks, to which I have listened carefully, that that has perhaps not been communicated as effectively as it should. Allow me to put that right. I reiterate that the Government take consumer product safety extremely seriously. On the safety issue identified in Whirlpool tumble dryers, I and my officials have been in regular contact with Whirlpool and its management. I must say that I have been shocked to hear the extent to which Whirlpool has not engaged with other hon. Members; I think that it might come to regret that. I hope that, in the new Parliament, it will manage to put that communications issue right.

I met the chief executive of Whirlpool and emphasised the need to resolve the situation quickly and pushed the company hard on meeting its obligations. I have repeatedly pressed it in further correspondence on the need to ensure that consumer safety remains paramount and that consumers have accessible routes to resolve their issues with the company’s products quickly and effectively. I am concerned about the number of unregistered machines still on the market; as hon. Members have mentioned, second-hand machines and people moving into homes with an existing machine and not realising the safety issues make it a complex situation. I will come back to that when talking about the working group that we have set up.

I am concerned to hear of the experiences of some consumers who have registered their machines with Whirlpool and who have faced unacceptable delays in having their machines modified.

[Mrs Moon]

The advice given to one of my constituents was to unplug her tumble dryer, to plug it back in only when she was going to use it and to then watch it. I do not know if the Minister has ever tried to move a tumble dryer or washer dryer when the plug is at the back, but it is not something that can be done. The manufacturers have to take far greater responsibility for keeping our families safe than they do at the moment.

[Margot James]

I agree with the hon. Lady; that is not practical advice.

Whirlpool has, however, been taking action to address the concerns that we have debated this afternoon. The hon. Member for Swansea East (Carolyn Harris) is the only one among us, apart from myself, who has met Whirlpool. What Whirlpool said to her is largely right, in terms of what it has lived up to following the proposals that its representatives made when they met her some time ago.

Whirlpool has increased its engineer workforce by 50%, allowing it to resolve approximately 100,000 cases per month. It has now exceeded the number of cases that it anticipated resolving when it met the hon. Lady. It has modified more than 1.5 million machines—almost 90% of the total number registered with the company—but, of course, that leaves 10% unresolved, to say nothing of all the other machines out there that nobody knows of. Whirlpool now employs the UK’s largest technician workforce, at 1,700-strong, which is almost three times the size of the next largest one in the country.

In response to demands for a full recall, I understand the attraction of that proposition, but the key must be to take whatever action is most likely to achieve the outcome we are all aiming for, which is to ensure that consumers are protected from unsafe products. That may be statutory recall in some instances, but other forms of corrective action, including making modifications to products in a consumer’s home, may be more proportionate, appropriate and effective in other cases. It is often better and more effective to encourage a company to accept its responsibilities and take action proactively.

[Alberto Costa]

I appreciate that time is short, but on that point, will the Minister give way?

[Margot James]

I will give way to my hon. Friend, who has reappeared.

[Alberto Costa]

I had important constituency business to attend to. The Minister is correct in saying that modifications at home might be the correct course of action. Indeed, I witnessed a modification to my tumble dryer. However, the issue I have is that Whirlpool is not disclosing to Which? or to any of us the independent expert analysis stating that such modification makes the tumble dryer safe.

[Margot James]

I am sorry that my hon. Friend has not had satisfaction from Whirlpool on that. Whirlpool wrote to me on 4 November outlining its engineer training programme and auditing programme of the machines that it has modified. I am happy to share that correspondence with him and other hon. Members.

We hear from industry and other experts that recall programmes typically have a success rate of resolving between 10% and 20% of affected products. In this case, Whirlpool’s resolution rate is over 40%, which is well above the industry norm. We can therefore posit that the action taken by Whirlpool in co-ordination with Peterborough trading standards has achieved more in terms of resolving cases than recalls typically achieve, meaning a greater number of consumers have been protected from potential harm.

[Jim Shannon]

Will the Minister give way?

[Margot James]

I will give way once more. There is more material that Members will be interested in.

[Jim Shannon]

We are talking about 5.2 million machines and 120 different models. Is there a timescale for how many years it will take for resolution to be arrived at and all those machines to be repaired or replaced?

[Margot James]

I can only reiterate what I have already said. Of those machines, 1.5 million have already been modified, and only 10% of cases registered with Whirlpool are outstanding. Whirlpool is modifying machines at roughly the rate of 100,000 per month.

The role of Peterborough trading standards has been discussed. That team has ensured that Whirlpool has taken responsibility for resolving the issue and agreed actions deemed proportionate to the level of risk. The initial risk assessment was peer-reviewed and agreed by two other trading standards departments, at Norfolk County Council and Hertfordshire County Council. As a responsible regulator, it has kept the issue and the evidence under continuous review and made decisions accordingly. It issued enforcement action to ensure that Whirlpool gave clear advice to consumers not to use the product before it had been repaired, and it has been in close contact with Whirlpool to agree and oversee the corrective action programme.

I note hon. Members’ comments about Whirlpool’s motivations and the extent to which it was moved by the threat of judicial review. It is impossible for me to comment on that speculation, but I would point out that Whirlpool had already resolved the majority of those 1.5 million cases prior to the threat of judicial review, which was later removed. As a result of Peterborough’s actions, Whirlpool did not, as Members implied, sit on its hands; it commenced a programme of corrective action back in November 2015. I have covered issues about Whirlpool’s customer service, so I will move on.

I want to acknowledge the remarks of the hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones) about the manufacturing of white goods. I was sorry to hear of the manufacturing losses in his constituency, but I am pleased to report that Whirlpool tumble dryers and some of its other white goods are manufactured not abroad but in Bristol.

I will turn to the working group on product recalls and safety. I take to heart the suggestion by the hon. Member for Hammersmith that the Government should look at the safety of all electrical goods and not just tumble dryers. That brief has been given to the working group. An online hub of information on product recalls, known as “Recall Central”, has been developed on gov.uk. That follows up one of Lynn Faulds Wood’s recommendations, cited by the hon. Gentleman.

When I took on the product safety brief, I reviewed the remit of what was then called the recall review steering group. Like the hon. Gentleman, I considered two years far too long to wait for discernible improvements in the system. In October, I rebooted the group and established the working group on product recalls and safety to develop credible options for improving product safety and the recalls system, setting a more challenging timetable of six months. I asked the working group to focus in particular on identifying the causes of fire in white goods and the action needed to reduce that threat.

The group is better resourced than its predecessor. Officials in my Department are supporting the group and are in regular contact with the Home Office about fire prevention. The group consists of experts in the fire services, trading standards, consumer groups and industry, including Electrical Safety First. The chair, Neil Gibbins, has extensive experience of fire safety, as former deputy chief fire officer for Somerset and Devon, and a background in enforcement.

I am grateful to Neil Gibbins and members of the working group for their work. They submitted their initial recommendations in December, which were published on gov.uk. Each meeting has had its notes published on gov.uk, and hon. Members can visit that site. The group submitted its full report to me earlier this month, which might explain why I have not yet published it, in less than the six months given to it. If it had not been for the Easter recess and the calling of the general election, I would now be planning the publication of the report. The group has already commissioned the British Standards Institution to develop a code of practice on corrective actions and recalls to improve consistency and transparency.

The hon. Member for Poplar and Limehouse (Jim Fitzpatrick) raised the issue of consumer behaviour and attitude, which is very important. The working group has commissioned consumer behavioural insights research, which I gather has almost concluded, to help ensure that the code of practice, and indeed the whole process of encouraging and motivating consumers to register their appliances, is taken forward in the optimum way.

I must leave time for the hon. Member for Hammersmith to wind up the debate, so I will conclude. In terms of Brexit, I would like to reassure Members that the Government have absolutely no intention of watering down consumer protection and consumer safety. The opposite may well be the case. I would also like to reassure the House generally that the Government take these issues very seriously indeed, and I look forward to the hon. Gentleman’s concluding remarks.