Oral Answers to Questions

Margot James Excerpts

Tuesday 7th November 2017 Commons Chamber

[David Hanson (Delyn) (Lab)]

11. What discussions he has had with the Chancellor of the Exchequer on the conclusions of the recent Financial Conduct Authority report on the Royal Bank of Scotland and small business customers.

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

My right hon. Friend the Secretary of State has frequent discussions with the Chancellor on a range of matters, including financial regulation. The Financial Conduct Authority has published a summary of Promontory’s skilled persons report, to which I think the right hon. Gentleman refers. The FCA is now considering the report’s conclusions, including whether there is any basis for further action.

[David Hanson]

Constituents of mine have, in good faith, used Government-based schemes such as the enterprise finance guarantee scheme to grow their businesses, only to find the Royal Bank of Scotland using the very same scheme to close down their businesses. Given that there is a litany of such cases throughout that report, is it not now time that the Minister and the Treasury conducted a proper investigation and perhaps even a judge-led inquiry?

[Margot James]

The enterprise finance guarantee scheme was exactly designed to enable businesses to borrow when they lacked collateral, with taxpayer support. If a bank is closing down overdraft facilities to claim on the guarantee—as in the case to which I believe the right hon. Gentleman refers—that would clearly be a gross abuse of the scheme. Any evidence of that will certainly be looked at very carefully by my Department.

[Sir Vince Cable (Twickenham) (LD)]

Does the Minister not agree that the response to the finding that 92% of the bank’s restructuring group’s small business customers were mistreated has been pathetic and is unworthy of a publicly owned institution?

[Margot James]

I suggest that the right hon. Gentleman hold fire until the Financial Conduct Authority has decided on what action it may still take. It is empowered to take action, and I totally agree with the sentiments behind his question.

[Bill Esterson (Sefton Central) (Lab)]

What happened at RBS’s Global Restructuring Group is a scandal of the highest order. Businesses were ruined; families were torn apart; and people took their own lives. The Minister must know that the FCA cannot deliver justice for the GRG’s victims on its own, because most business banking is unregulated. I have asked Ministers this question six times already, and I will ask it a seventh time: will the Government set up a judge-led inquiry into RBS GRG, or do they have something to hide?

[Margot James]

I can assure the hon. Gentleman that we have nothing to hide. I share the concerns about the practices of the Global Restructuring Group at RBS and the devastating impact on people’s businesses, which represent a lifetime’s work for many people. I am sure that we have not yet heard the last of this inquiry.

[Alex Burghart (Brentwood and Ongar) (Con)]

14. What steps his Department is taking to support the UK car industry after the UK leaves the EU.

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[Paula Sherriff (Dewsbury) (Lab)]

17. What discussions he has had with Cabinet colleagues on providing funding to ensure minimum wage back-payment in the social care sector.

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

I have worked closely with ministerial colleagues to implement a national minimum wage enforcement approach that protects the interests of social care workers and vulnerable service users. The Government recognise the financial pressures that some providers face, and we are exploring further options to minimise any impact on the sector. Any intervention would need to be proportionate, and the Government have opened discussions with the European Commission about issues relating to state aid.

[Nick Smith]

I thank the Minister for that answer, but how are the Government supporting individuals with personal budgets who could face bills of thousands of pounds in back-payments?

[Margot James]

We recognise that such individuals can be among the most vulnerable in society, and we are working to ensure that that group receives the necessary help and support. We expect local authorities to work with Her Majesty’s Revenue and Customs to ensure the right outcome for such individuals, but it is only fair that the budgets provided to personal budget holders reflect their legal obligations to pay the national minimum wage to workers on sleep-in duty both now and when it comes to any arrears owing.

[Paula Sherriff]

If enforcement action results in the closure of or disruption to service providers, how will the Government guarantee that vulnerable people will not be left without services?

[Margot James]

I would like to reassure the hon. Lady that the new social care compliance scheme will give providers up to a year to identify what they owe to workers and will be supported by advice from HMRC. Employers who identify arrears at the end of the self-review period will have three months to pay workers, so the scheme is designed both to support workers and to ensure the continuation of the crucial services that providers perform.

[Peter Aldous (Waveney) (Con)]

The Government’s new interim compliance scheme, announced last week, unfortunately adds to the uncertainty facing the social care sector. May I urge the Minister to do all she can to ensure that, as quickly as possible, the Government get back round the table with the sector to find an acceptable long-term solution?

[Margot James]

I assure my hon. Friend that we are working very hard across Government with the Department of Health and the Department for Communities and Local Government to continue our discussions with the Treasury about possible solutions to the long-term viability of certain providers.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I welcome the Government’s efforts to try to find a permanent solution to sleep-in shifts. The situation arose from a change in guidance following an employment tribunal in 2014. Would it not be sensible to consider revisiting the legislation in this place simply to return to the pre-tribunal position?

[Margot James]

We have made it clear that we expect all employers to pay workers according to the law, including the national minimum wage, for sleep-in duties. It is not uncommon for employment law to be clarified in the courts and tribunals, and this issue has been the subject of a number of cases. Even if we were to do as my hon. Friend suggests—we will certainly not be revisiting the legislation—it would not have any impact on workers’ eligibility for historical back-pay liabilities.

[James Frith (Bury North) (Lab)]

This week is Living Wage Week. Some sectors in the UK are better predisposed than others to paying higher wages, but the rising cost of living applies to all. What will the Minister do to incentivise businesses in all sectors to sign up as living wage employers?

[Margot James]

I applaud the work of the national Living Wage Foundation, but we have a crucial role to play in ensuring that Her Majesty’s Revenue and Customs has the resources to enforce the minimum wage, where it needs enforcing. That is our priority, although obviously I respect the work of the Living Wage Foundation.

[Richard Graham (Gloucester) (Con)]

16. What assessment he has made of the potential merits of the recommendations set out in the Hendry review on tidal lagoons.

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[John Mc Nally (Falkirk) (SNP)]

T3. After years of the Scottish National party lobbying, the Department for Business, Energy and Industrial Strategy launched a review into limited partnerships, and we in the SNP welcome that. In the light of the Paradise papers, thousands of firms registered in Scotland will be forced to reveal their owners’ identities. When will the Government publish the full findings of the review?

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

At last year’s international anti-corruption summit, we committed to introduce a register of beneficial ownership of overseas companies. We published a call for evidence in April, the responses to which are being analysed. We will publish a response that provides for legislation in due course.

[John Penrose (Weston-super-Mare) (Con)]

Dieter Helm’s recently published “Cost of Energy Review” says that

“the prices of oil, gas and coal have fallen…contrary to the modelling and forecasting of both the Department of Energy & Climate Change…and the Committee on Climate Change”.

He means that however hard they try and however worthy their intentions, mandarins and regulators are rubbish at discovering or predicting energy prices. Does my right hon. Friend agree that the provisions for the draft Bill’s absolute energy price cap, which would require mandarins and regulators to meet twice a year to pick a number, would repeat the same mistakes so should be replaced by something more closely linked to the few competitive energy prices that already exist?

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[Grahame Morris (Easington) (Lab)]

T7. Will the Secretary of State assure the House of his Department’s commitment to enforce the national minimum wage in the maritime sector? Why have officials from his Department been unable to attend meetings of the cross-departmental legal working group on seafarers?

[Margot James]

The hon. Gentleman raises an important point about the national minimum wage and seafarers. We are looking into it and I will write to him with the latest position.

[Martin Vickers (Cleethorpes) (Con)]

This week is Offshore Wind Week. The wind and renewables sector is vital to my constituency. Many young people are training to secure jobs in the industry, as is being highlighted by the apprenticeships event that will begin here shortly. What ongoing support will the Government give to young people entering the industry?

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[Rachel Reeves (Leeds West) (Lab)]

T8. Last year, a Whirlpool tumble dryer caused a devastating fire at Shepherd’s Bush Green after Whirlpool told customers that it was safe to continue using them, contrary to advice from the fire brigade. There are still 1 million of these potentially deadly tumble dryers in people’s homes. What does the Minister think about that and what is she doing to ensure that all electrical goods are safe, and recalled if they are not?

[Margot James]

The Government take product safety extremely seriously. We established a working group on product recalls and safety that reported in July, and we will respond shortly. We are already taking action in the areas that have given the hon. Lady cause for concern. Whirlpool has now managed to withdraw or modify more than 2 million of those machines to an unprecedented degree.

[Steve Double (St Austell and Newquay) (Con)]

The Secretary of State will be aware that Newquay’s bid to be the location of the spaceport is backed by organisations right across Cornwall, including the LEP, the chamber of commerce, the wider business community and the local authority. Will he update the House on what progress has been made in this important development for the UK space sector?

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[Stephen Kerr (Stirling) (Con)]

When does the Minister plan to respond to the Matthew Taylor review of employment practices in the modern economy?

[Margot James]

We are working on our response to the Taylor review’s recommendations now, and we will publish that response before the year’s end.