Leaving the EU: Workers’ Rights
Margot James Excerpts(5 years, 1 month ago)
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Margot James (Stourbridge) (Ind)
I welcome my right hon. Friend’s commitment to the UK becoming the best place in the world in which to work and grow a business. Does she agree that we need to consider the way in which employment protection and the tribunals system impact on those in low paid and insecure employment in particular?
Andrea Leadsom
Yes. My hon. Friend is absolutely right. We have consulted on proposals for a single enforcement body for employment rights. That consultation closed on 6 October and the Government will respond to it. She will know very well that this Government are committed to extending, improving and enforcing some of the best workers’ rights in the world.
GKN
Margot James Excerpts(6 years, 7 months ago)
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Greg Clark
Kraft’s takeover of Cadbury is exactly why we changed the rules so we can now have binding undertakings that are legally enforceable, unlike the situation that prevailed when the hon. Gentleman was in government. When it comes to the German system, in fact there is a substantial record of German companies being taken over.
Greg Clark
Yes, Vodafone’s takeover of Mannesmann is a classic case. KUKA, a German robotics company, has been taken over recently, as has Kabel Deutschland. There is a substantial record of takeovers in Germany. We have to operate the same public interest tests. What we have now is an ability to inquire into the intentions for the medium and long term, and to obtain legally binding commitments on that. I hope the hon. Member for Luton North (Kelvin Hopkins) would welcome that, because many of his constituents will benefit from it.
Business, Energy and Industrial Strategy
Margot James Excerpts(6 years, 11 months ago)
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Margot James
The hon. Gentleman really should stop talking small businesses down, and he is absolutely wrong in his estimate. The UK is No. 4 in the world for being the best place to start a business, and the OECD figures show that we score highly on enterprise. He does raise a valid point about growth, and we need to improve our record in supporting small businesses to grow, which is precisely why the Chancellor has made available a vast amount of money in this year’s Budget to support the growth of small businesses. [Official Report, 12 December 2017, Vol. 633, c. 166.]
Letter of correction from Margot James.
An error has been identified in the response I gave to the hon. Member for Sefton Central (Bill Esterson). The correct response should have been:
Margot James
The hon. Gentleman really should stop talking small businesses down, and he is absolutely wrong in his estimate. The UK is No. 4 in the EU for ease of starting a business and No. 14 in the world, and the OECD figures show that we score highly on enterprise. He does raise a valid point about growth, and we need to improve our record in supporting small businesses to grow, which is precisely why the Chancellor has made available a vast amount of money in this year’s Budget to support the growth of small businesses.
Delivery Charges (Scotland)
Margot James Excerpts(7 years ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)
It is a pleasure to serve under your chairmanship, Ms Dorries, and to respond to this important debate. I congratulate my hon. Friend the Member for Moray (Douglas Ross) on securing it and echo the comments of the hon. Member for Sheffield, Brightside and Hillsborough (Gill Furniss) about his eloquent speech. I know that he first raised the issue at Prime Minister’s questions two weeks ago and that he met my right hon. Friend the Secretary of State earlier this week to reiterate his concerns.
Let me start by reminding hon. Members of the Government’s general approach. We are committed to promoting growth in the UK economy, and empowered consumers are vital to that. Consumers who demand quality products and services, and are prepared to take their custom elsewhere if their needs are not being met, drive competition, innovation and productivity. The industrial strategy we published last month reminds us that consumer choices are key to a productive and efficient business base. It also recognises the importance of the local economy and infrastructure.
If consumers feel that they are being unfairly treated because of their location, they can challenge retailers, particularly if they are aware of a particular courier or delivery company that is known to deliver to it more cheaply. It is not unreasonable for businesses to seek to cover the legitimate costs of delivery, but customers in remote areas all too often face charges that go beyond a reasonable rate of return.
Drew Hendry
The Minister says that consumers can complain, but often when they do, nothing is done and they have absolutely no recourse. As we have heard today, the companies offering to deliver can just say, “Well, I won’t deliver to you.” How does she answer that? What will she do about that unfairness?
Margot James
I will come on to the rights that consumers have, but from the strength of feeling that has been expressed in the debate, I recognise that things are clearly not working for consumers in certain parts of our United Kingdom. I have great sympathy for the case made by my hon. Friend the Member for Moray, because it is unfair that consumers in some parts of Scotland and Northern Ireland should be treated so very differently from consumers in other parts of the UK.
I would like to take this opportunity to state that the Government welcome the ongoing activity to address the problem. The work of parliamentary colleagues and consumer bodies to consider local public and private sector solutions, as outlined in the Citizens Advice Scotland report, could result in ideas suitable for all parts of the UK.
Douglas Ross
The Minister mentions ongoing activity on this campaign. We have heard some passionate speeches from SNP Members, presumably about the work of their Scottish Government. Will she confirm what contact her Department has had with the SNP Scottish Government on the issue and what actions they have asked about?
Margot James
I am not aware of any contact. My office has not had any, but I will find out whether any other offices in my Department have had any contact and write to my hon. Friend with the answer. Obviously this is not a devolved matter, but since he has asked, I will give him the answer.
Online shopping is an increasingly important part of our economy.
Margot James
I will give way in a minute, but I want to cover a lot of points made in the debate and I have only 10 minutes or so.
Retailers have legal obligations to be up-front about their delivery charges—where they deliver to, what they charge, and any premiums that apply—before an order is placed, so that consumers at least have the information they need under consumer law and can make informed decisions before purchasing online.
Christine Jardine
Does the Minister agree that it is frustrating that Sir Robert Smith, the then MP for West Aberdeenshire and Kincardine, introduced a private Member’s Bill to address this very issue back in 2013—yet here we are, four years down the line, and no progress has been made?
Margot James
I certainly understand the hon. Lady’s frustration, and the frustration felt and expressed by other Members of Parliament this afternoon. I was not aware of that, although I was a Member at the time. I missed that private Member’s Bill, but clearly this issue has a lot of history, and is all the more frustrating for that, as the hon. Lady says.
Consumers must have the information needed under consumer law. At the same time, if retailers are to exploit fully the vast market potential of online business, they will need to listen to and respond to the needs of consumers in all parts of the country, developing effective delivery solutions throughout the United Kingdom.
The Government strongly encourage businesses to provide consumers as far as possible with a range of affordable delivery options. It is really up to businesses to determine the most appropriate delivery options for their products.
Margot James
I will give way one last time to the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil).
Angus Brendan MacNeil
I understand from my colleague, the hon. Member for Strangford (Jim Shannon), that the situation in the Republic of Ireland is not the same as in Northern Ireland or Scotland. Would our Government perhaps take the time to look, as they are responsible for this matter, at what the situation is in the Republic of Ireland, and to perhaps learn from Ireland?
Margot James
I did hear the intervention from the hon. Member for Strangford (Jim Shannon), and I will look into that.
Businesses have a choice through the universal service obligation, which the hon. Member for Ayr, Carrick and Cumnock (Bill Grant) reminded us about. Royal Mail can deliver parcels up to 20 kg, five days a week, at uniform rates throughout the United Kingdom. Regrettably, some businesses and retailers choose not to use that option, and the Government are not in a position to oblige business to choose a particular delivery supplier. There are no regulations that prevent differential charging for deliveries by companies other than Royal Mail. A competitive market should be a sufficient incentive to put pressure on charges applied by retailers and delivery operators, and consumer law requires traders not to mislead consumers or partake in unfair practices.
Mr Carmichael
The Minister comes to the nub of the matter: a competitive market should provide the solution. In fact, the way this market is operating now is the problem; competition will not be the solution. Will she look at the issue of market failure, on the basis that courier companies are now a quite different and discrete market from Royal Mail?
Margot James
If the right hon. Gentleman will allow me, I will come on to what I propose to do before I close.
We already have legislation in place under the general Consumer Protection from Unfair Trading Regulations 2008 and the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, which apply to online purchases. They make it clear that information given by traders to consumers regarding delivery costs must be up front and transparent before a transaction is entered into. Any consumer who believes those rules are being breached should report it to trading standards through the Citizens Advice consumer service.
If misleading advertising about the cost of delivery is an issue, the Advertising Standards Authority, which has responsibility for ensuring compliance with the code of advertising sales, promotion and direct marketing, will act to ban or amend advertisements that have the potential to harm or mislead the public. Decisions on complaints are made public, and where necessary the ASA will report persistent offenders to trading standards for further enforcement action.
The Government’s view is that regulating prices, or intervening in how businesses and retailers establish their pricing structures, would not overall be in consumers’ best interests, because they are commercial matters. The market is highly competitive and innovative, with many different types of companies being selected by online retailers to provide delivery solutions. That has given rise to new ways of receiving packages, such as collecting them from more secure and more convenient locations and post offices.
The issues involve a three-way relationship between consumers, online retailers and delivery companies. As Members stated in the debate, the postal sector regulator, Ofcom, has just concluded a two-year study of parcel delivery surcharges that reflect the cost to operators and go beyond them. It found that some retailers apply a surcharge to consumers for delivery to certain locations, while others do not. It is therefore not clear that surcharges applied by parcel operators to online retailers are automatically passed on to consumers in all cases. The Government will consult Ofcom further on what might be done to improve competition. As highlighted by my hon. Friend the Member for Moray, the Consumer Protection Partnership, which brings together enforcement bodies and advice providers and is chaired by my Department, recognises that this is a priority that requires further work. It brings together a number of important bodies with an interest in this vexatious matter.
A number of Consumer Protection Partnership members, including Citizens Advice Scotland, the Consumer Council for Northern Ireland, the ASA and other enforcement bodies, along with Ofcom, are working together to undertake a review of parcel surcharging. That review is looking at the existing research, evidence and legislative framework, with the aim of improving compliance by online retailers with consumer protection law. It will also consider further proposals relating to concerns about the level and fairness of parcel surcharging, about which we have heard so much this afternoon.
Jamie Stone
I appreciate the Minister’s sincerity. Could she please add to the list she has just outlined the petition from Rebecca in John O’Groats? It is heartfelt, genuine and has masses of support, and a moral imperative behind it.
Margot James
I will certainly ask the partnership to take into consideration the petition to which the hon. Gentleman refers.
Recommendations will be considered by the Consumer Protection Partnership in early 2018, with the intention of agreeing a co-ordinated package of activities for organisations across the UK. I look forward very much to receiving that advice, and considering its recommendations as to what further action we can take to enforce the law and ensure fairer treatment of consumers—something which we have heard so much about this afternoon.
I am convinced by the strength of feeling expressed by hon. Members that some action is required, so the Government will publish a consumer Green Paper next year that will look at issues such as transparency and fairness across a range of markets. I expect that those responding to that paper will want to comment on how business treats customers, including in respect of delivery charges, and how it reacts to their complaints. That, too, will inform the Government’s approach.
I thank my hon. Friend the Member for Moray for dramatically raising the profile of this issue, and I will be interested in further input from him and other colleagues across the House in the future. I end by adding my thanks and Christmas wishes to all staff at Royal Mail, as mentioned by the hon. Member for Coatbridge, Chryston and Bellshill (Hugh Gaffney). We wish all our posties a very merry Christmas. I thank hon. Members and, as it is my last debate of the year, I will also say that I have enjoyed debating with the hon. Member for Sheffield, Brightside and Hillsborough, and I wish her a merry Christmas as well.
Torre Post Office
Margot James Excerpts(7 years ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)
It is a pleasure to serve under your chairmanship, Mrs Gillan. I congratulate my hon. Friend the Member for Torbay (Kevin Foster) on securing this debate on the closure of Torre post office, and on his comprehensive and well-argued contribution to the proceedings. He clearly set out the importance of Post Office services for the Torre community dating back to 1832, and the concerns that he, the community, business representatives, and local residents across the board have raised in respect of the proposed new location on Lymington Road. I fully appreciate the concerns that he has outlined.
The Government recognise the important role that post offices play in communities across the country. Between 2010 and 2018, the Government will have provided nearly £2 billion to maintain, modernise and protect a network of more than 11,500 branches across the country. Today, the Government announced a further £370 million to be made available as an investment over the next three years for Post Office to continue its successful modernisation, and to meet the challenges of a changing market. Today, there are over 11,600 Post Office branches in the UK, and the number of branches in the network is at its most stable for decades. That is because Post Office is transforming and modernising its network, thanks to the Government investment.
More than 4,400 branches are now open on Sundays. Nearly 1 million additional opening hours per month have been added to the network. The modernisation has also meant that losses in the business, excluding any subsidy, have reduced from £120 million in 2012 to a profit of £13 million, announced today—the first profit in 16 years. That has allowed Government subsidy to be reduced by more than three quarters since its peak back in 2012. The Conservative party has committed in successive manifestos to securing the future of the Post Office network, which is now at its most stable, with customer satisfaction remaining consistently high.
I understand that my hon. Friend has benefited from 422 additional opening hours across his constituency, with 11 of the 18 branches in his constituency now open on a Sunday. Post Office is offering more for customers, doing so more efficiently for the taxpayer, and ensuring that its services remain on our high streets throughout the country. Make no mistake about the Government’s commitment to Post Office.
Turning to the situation in Torre, I fully appreciate that there can be uncertainty and disquiet in communities when a change to Post Office services is proposed, and that those communities, like the community in Torre, hold strong views and perfectly valid concerns regarding planned changes. My hon. Friend has spoken passionately about his concerns regarding the existing proposal to relocate to the McColl’s store on Lymington Road. I fully understand the many points that he has made, including about the local area having many elderly and vulnerable people who will find it difficult to travel to the new location, especially given the limited direct bus services and parking in that area.
Of course, Post Office needs to continue to take steps to ensure that its branches remain sustainable for the future, as it is doing for Torbay. It does not propose such changes if it does not consider them necessary, and I want to make a couple of points about why some change, at least, is necessary. The current post office in Torre is run on a temporary basis, following the resignation of the previous postmistress. It is costly to maintain, and there are concerns about its long-term viability given its limited supporting retail offer and the fact that its lease is up for renewal in 2019. The relocation proposal seeks to find a permanent and more sustainable way to provide Post Office services to the community, which I am sure my hon. Friend will agree must be the best outcome for all concerned.
Kevin Foster
I am finding the Minister’s comments very interesting. Does she agree that given that the lease is not up until 2019, even given interim arrangements that would give an opportunity for Post Office to engage properly with other providers to keep the service in Torre? As she said, we need to keep the services on the high street.
Margot James
I will answer that question directly. I agree that the timing of the lease renewal affords a little more time to get the best possible outcome for my hon. Friend’s constituents, but I slightly take issue with the implication that Post Office has not been properly consulting to date. I know it has been working very hard to find the best possible solution, and is taking on board the concerns that he and his constituents have raised.
For example, my hon. Friend mentioned the latest positive development, which is some interest expressed by a shop called Carters. Post Office has visited Carters twice. The management at Carters initially did not want to take on a post office counter, but it is marvellous that they are now undergoing a change of heart, and Post Office will conduct meaningful discussions with them.
Given the challenges faced by the current branch, Post Office acted proactively by putting out advertisements looking for operators willing to take on the post office. Advertisements have been running intermittently since October 2016, but sadly there have been no applicants from the Torre community. Post Office tried its best to make people aware by visiting local businesses and engaging with the community but, as with many such situations, the implications of the proposed outcomes are often realised only belatedly by others in the business community. Post Office recognises many of the points that my hon. Friend made and is delighted at the increased level of interest from the community.
McColl’s Retail Group showed interest and successfully completed the application process, and that is why it was selected as the proposed retail partner for the Torre community. The selection was not for want of trying to find a retail partner that met the aspirations so well put by members of the Torre community and by my hon. Friend this morning.
Kevin Foster
To be clear, there was no contact with myself or the community partnership on trying to identify an alternative prior to the consultation. The first we knew was when I received the letter notifying me, as the MP, about the start of the consultation.
Margot James
I am glad my hon. Friend has put that on the record. There may well be a case for Post Office to undertake more contact, certainly with colleagues, prior to issuing consultations, but considerable work was done behind the scenes and during the consultation. It has run a consultation process because it does want people’s views; that is why it organises meetings and attends public events—to engage with the community to help it shape its plans. It consults in line with its code of practice on changes to the network, and that code has been agreed with Citizens Advice. I am aware that Post Office representatives have met, albeit possibly belatedly in his view, with my hon. Friend to discuss the matter, as well as with business and community leaders.
The consultation period on the proposed change has now ended and Post Office is now carefully considering all feedback received, of which I know there was a considerable amount in relation to this proposal, before it finalises its plans. I very much agree with my hon. Friend that it is vital that Post Office engages with the local community when planning for the future, but the decisions must ultimately be commercial ones for the business to take, within the parameters laid down by Government, to ensure that we protect our network across the country. Post offices operate in a highly competitive retail environment and we need to allow the business to assess how best to respond to the challenges it faces and secure Post Office services for communities in the future.
I understand that interest has been expressed by community partnerships and other interested local businesses in taking on the post office, including the example of Carters that we have already discussed. I am delighted to announce that Post Office has decided to pause its process in order to explore that interest fully, without prejudice to anyone involved. I reassure my hon. Friend that, thanks to his efforts and those of his community, no final decision has yet been made on the proposal to relocate the service to the McColl’s store.
Kevin Foster
I just want to say how welcome the news is that the process has been paused to allow for the exploration of alternatives that would keep the service in Torre.
Margot James
I thank my hon. Friend for his remarks, and I am sure Post Office will be delighted to hear them as well. Post Office has been undergoing a successful transformation programme across its network. The consultation process has been a positive and effective way of engaging with local communities. Current discussions between the Post Office and the community show that that process is working, and I am delighted that it is working in Torre.
Citizens Advice recently reported that the process has become increasingly effective, with improvements agreed or reassurances provided in most cases. In the last year, that has been the case after nine out of every 10 of Post Office’s consultations. I assure my hon. Friend that Post Office is committed to maintaining services to the community and to finding a permanent solution that best meets the needs of the business, its customers and the overall community.
I echo the note on which my hon. Friend started his speech and congratulate Post Office on the fact that it is now at its most stable for years. More than 3,000 “last shop in the village” branches in rural areas have been protected. After a decade of underinvestment and closures up to 2010—my hon. Friend detailed several of those years—the network is now increasing its number of outlets. As I reported earlier, it is now in profit and able to make the investment in new technology that it will need and in new banking services that it now offers by virtue of an arrangement with Lloyds Bank.
Post offices will now be able to meet 95% of the banking needs of small and medium-sized enterprises and 99% of those of consumers across the country. That is a huge achievement. I pay tribute to the hard work of Paula Vennells, the chief executive, her leadership team, members of the Communication Workers Union, sub-postmasters and sub-postmistresses and all staff working in the Post Office, who have effected that marvellous turnaround over the last decade.
Question put and agreed to.
Post Office
Margot James Excerpts(7 years ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)
The Government are announcing today that they are committing up to £370 million in new investment to the post office network for the three years from the start of April 2018 to the end of March 2021.
The post office network plays a vital role in communities, with post offices having the most positive impact on the local area of any type of shop, as found by the Association of Convenience Stores’ local shop report 2017. At a time when our high streets are changing, the Government and Post Office are working to keep post offices on our high streets, supporting continued access to banking services through the Post Office’s banking framework whereby 99% of individuals and 95% of small businesses can access basic banking arrangements.
This new investment in the Post Office will further strengthen it for the future. Alongside today’s announcement the Government and Post Office have published three documents which evidence the progress that has been made in strengthening the Post Office:
Post Office’s annual report and accounts show that the financial performance of the Post Office continues to improve, with the company making a profit for the first time in 16 years;
The annual network report demonstrates that the number of post offices around the country continues to be at its most stable for decades, and in fact shows an increase in the number of branches for the second year running. The report shows that 93% of the population live within 1 mile of a Post Office, and almost 99% of the rural population live within 3 miles;
Government’s response to the public consultation confirms our manifesto commitment to securing the network, maintaining the current access criteria to ensure that there remains a widespread and comprehensive distribution of branches around the country.
Furthermore, the Government’s £2 billion investment in the Post Office since 2010 has led to over seven and a half thousand branches being transformed and modernised, bringing almost a million extra opening hours per month for customers, with 4,400 branches open on a Sunday.
The next three years will see new technology being rolled out into branches, and Post Office will be innovating its existing products and launching new ones too. The Post Office’s digital presence will be strengthened and its online presence will be better integrated with its branches.
The steps the Government and the Post Office’s staff and leadership have taken in recent years have strengthened the business and helped to make the network more commercially sustainable, reducing its reliance on taxpayer support and the long-term need for Government funding. This new funding gives the Post Office the security to plan a vibrant long-term future for the network.
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Industrial Action: E-balloting
Margot James Excerpts(7 years ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)
Section 4 of the Trade Union Act 2016 makes provision for the Secretary of State to commission an independent review concerning electronic balloting for the purposes of ballots held under section 226 of the Trade Union and Labour Relations (Consolidation) Act 1992.
It was announced that Sir Ken Knight would be undertaking the independent review on 3 November 2016.
The Government were particularly keen to understand the electronic and physical security of electronic balloting methods, including the risks of interception, impersonation, hacking, fraud and, misleading or irregular practices, as well as whether any system could safeguard against the risk of intimidation of union members and protect anonymity of ballot responses. During the review Sir Ken Knight issued a call for evidence and conducted a number of roundtables with key stakeholders to hear their views.
The review is published today and I would like to place on record my thanks to Sir Ken for his work. Under the terms of the Trade Union Act 2016, the Secretary of State is now required to consider the review and, in preparing his response, must consult relevant organisations, including professionals from expert associations to seek their advice and recommendations. Accordingly, we will now consider Sir Ken’s review and respond in due course.
Copies of the review will be laid before both Houses.
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Oral Answers to Questions
Margot James Excerpts(7 years ago)
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Mohammad Yasin (Bedford) (Lab)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)
Almost all Royal Mail’s 142,000 staff are on permanent contracts and earn above the living wage. Employees own 12% of its shares, and it has been a Times top-50 employer for women for four consecutive years. The Government will protect workers’ rights, ensuring they keep pace with the changing labour market.
Hugh Gaffney
Today is postal workers day, and I am sure the House would like to thank all postal workers in Royal Mail and Parcelforce for the good work they do all year round, six days a week, in all kinds of weather across the UK.
Royal Mail was not for sale. Under this Government and privatisation, its employees face worse pay and conditions and attacks on pensions, along with the threat of more job losses. Will the Minister renationalise Royal Mail?
Margot James
I heartily agree with the hon. Gentleman’s celebration of our postal workers today. As he says, they will deliver in all weather to 29 million addresses across the country over the festive season. I cannot agree, however, that renationalisation is the answer. Royal Mail is in negotiations with the Communication Workers Union, and progress has been made following mediation by Professor Lynette Harris. I assure the hon. Gentleman that there would be a great loss to the postal workers, who, let us not forget, own 12%—
Mr Speaker
Order. I am extremely grateful to the Minister, but we have a lot to get through. We need to be much brisker. Sorry.
Christian Matheson
I refer to my entry in the Register of Members’ Financial Interests. As postal workers trudge through the snow this morning, they will have a right to be aggrieved at losing their pensions, while Moya Greene gets paid £1.9 million and gets free flights, paid for by Royal Mail, to Canada. Does the Minister accept that?
Margot James
I disagree with the hon. Gentleman. The pension scheme, if left unchanged, would result in virtual bankruptcy for Royal Mail. It would require an injection of £1.3 billion annually, against profitability of approximately £700 million. I think he can do the maths himself.
Afzal Khan
Royal Mail is paying out over £200 million in dividends every year to private shareholders. Last year, the chief executive saw her pay increase by 23%. How can the Government stand by a model of ownership that sees postal workers’ pay being frozen and their pensions left unaffordable?
Margot James
I understand that Royal Mail’s offer of a pay increase to its workforce is far from frozen. I do not propose to comment much further, however, other than to say that the figures the hon. Gentleman refers to are misleading, because they go way beyond the chief executive’s base salary and include performance-related benefits, which are in line with a position of that stature.
Mr Speaker
Order. The Minister may judge that the figures are misleading, but I am sure she would not suggest that the hon. Gentleman would deliberately mislead the House.
Mohammad Yasin
In the privatised Royal Mail, 500 jobs have been lost while, at the same time, it has dished out close to £700 million in dividends to private shareholders. Is this a record of privatisation the Minister is proud of?
Margot James
As I said earlier, Royal Mail contributes £400 million a year to the pension scheme and, since privatisation, has provided access to capital of £1.5 billion and converted losses of £49 million into profits of £700 million. I would say that that was a pretty successful record.
Andrew Bridgen (North West Leicestershire) (Con)
Does the Minister agree that, regardless of ownership, Royal Mail needs to continue to modernise and become more efficient, because it operates in an increasingly competitive marketplace?
Margot James
My hon. Friend makes a very good point. When Royal Mail was privatised, Amazon was one of Royal Mail’s biggest customers; Amazon is now one of its biggest competitors. So he is absolutely right. More investment in technology and modernisation is required if Royal Mail is to maintain its market position.
Mr Philip Hollobone (Kettering) (Con)
The posties in Kettering work extremely hard all year round and do a tremendous job, especially at Christmas. What is the value of the average postal worker’s individual stake in Royal Mail?
Margot James
I can confirm to my hon. Friend that the workforce own 12% of Royal Mail, which is a fact that the leadership of the Labour party should consider as it contemplates a round of nationalisation.
John Cryer (Leyton and Wanstead) (Lab)
All the evidence is that employment standards in Royal Mail and more widely are being driven down, including with job losses and cuts to pensions. Is the Minister seriously arguing that employment standards today are higher than they were at the point of privatisation?
Margot James
The hon. Gentleman should accept that Royal Mail needs to maintain its position in the marketplace. It already provides employment conditions that are the envy of delivery workers employed by its competitors.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
Royal Mail employs a significant number of people in the north of Scotland. Protecting those jobs, and the universal service that the workers deliver, is vital, especially given that, according to Citizens Advice Scotland, more than 1 million Scots face surcharges or late delivery, or are refused delivery altogether, when they buy goods online. Will the Minister commit herself to protecting those Royal Mail jobs, and will she confirm that there will be a review of the regulation of parcel delivery prices to support our rural communities?
Margot James
The hon. Gentleman has made a good point. Royal Mail is regulated by Ofcom, which benefits everyone involved in the service. The universal postal service includes a parcel service. Companies must have regard to fairness in setting delivery charges, and any failure to be clear to customers before bookings breaches consumer protection law.
Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
Today marks postal workers day, when we thank our posties for their hard work and determination in providing a key public service—not that the Conservatives will take any notice. In a privatised Royal Mail, we have seen 12,000 job losses and proposals to slash pensions by 45%. It is a classic case of “one rule for the rich and another for the rest”. Royal Mail has paid out £70 million in dividends to private shareholders, and that is only in the last six months. Does the Minister still stand by the Government’s decision to privatise Royal Mail?
Margot James
I stand by it 100%. Royal Mail would have had no future had it not been privatised.
Stephen Timms (East Ham) (Lab)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)
It is important that this much-needed report gets the consideration it deserves and that we take action where needed. In the industrial strategy, the Secretary of State took responsibility for improving quality of work in the UK and continued an important dialogue on this issue. We will publish our full response shortly.
Stephen Timms
The TUC reports that 3.2 million people are now in insecure work—an increase of more than a quarter over the past five years. Will the Minister accept Matthew Taylor’s recommendation, endorsed by the Select Committee, that a longer break in service—a month rather than a week, as at present—should be allowed before there is any loss of employment rights?
Margot James
That will be something that we consult on as we consult on the vast majority of the other proposals in the Taylor review. Taylor acknowledges the excellent track record of employment in terms of new jobs, but as the right hon. Gentleman rightly points out—and the TUC endorses this—there is an issue with insecure work and far too much risk being transferred to the employee.
Mrs Maria Miller (Basingstoke) (Con)
The Taylor review says that the same basic principles should apply to all forms of employment in the UK. Does my hon. Friend see paid time off for women attending antenatal appointments as a basic principle, and does she agree that, for health reasons, the law needs to clearly extend that principle to all female workers?
Margot James
I thank my right hon. Friend for her excellent question. We will review the matter that she raises in tandem with the rest of the review of Taylor’s recommendations, but she makes a very good point indeed.
Jo Swinson (East Dunbartonshire) (LD)
I welcomed last week the Government’s latest round of naming and shaming employers that have failed to pay the minimum wage—an area where state enforcement has actually had some success—so I urge the Minister to respond positively to the Taylor review’s recommendation that state enforcement of employment rights should be enhanced beyond just the minimum wage.
Margot James
We will consult on the remainder of the recommendations, particularly those relating to employment tribunals and the enforcement of awards that go unpaid.
Theresa Villiers (Chipping Barnet) (Con)
Insecure working practices at Uber enable the company to engage in a pricing policy that many of my constituents consider to be predatory and designed to drive out competition. What more can the Government do to improve working practices at Uber and ensure fairer competition between taxis and private hire vehicles?
Margot James
My right hon. Friend gets to the nub of many of the Taylor review’s recommendations. It is important that decent employment standards are maintained and that consumers are offered new opportunities, and we will be reviewing the proposals.
Rebecca Long Bailey (Salford and Eccles) (Lab)
Recent reports uncovered the fact that people driving on behalf of Amazon were forced to deliver up to 200 parcels a day while earning less than the minimum wage. With impossible schedules that left little to no time for breaks and no access to paid holidays or sick pay, many drivers experienced conditions that could be described as Dickensian. As yet another high-profile employment case emerges, why are the Government not taking robust action to crack down on bogus self-employment and to enforce employment rights?
Margot James
The hon. Lady puts her finger on precisely why the Prime Minister commissioned the Taylor review in the first place. When employers are indulging in practices such as those the hon. Lady outlines there will definitely be a deleterious effect on employees’ health, and they should be roundly condemned.
Rebecca Long Bailey
The Government keep hiding behind their forthcoming response to the Taylor review, but Sir David Metcalf, the Government’s director of labour market enforcement, stated this year that even the Government’s existing powers have not been used to protect workers, despite numerous official statements that the Government have taken abuse by employers seriously. Only last week, the Government identified 16,000 workers who were paid less than the minimum wage, and yet the Low Pay Commission believes that the true figure is between 300,000 and 580,000. Does the Minister agree with Sir David Metcalf that the Government’s enforcement of basic employment rights is wholly inadequate?
Margot James
I await the publication of Sir David’s strategy for dealing with labour market enforcement, which we expect to see in the first quarter of next year. I am pleased with his appointment, and he is doing a great job so far of bringing together the enforcement agencies at the Government’s disposal to ensure that they work even more effectively in the pursuit of non-compliance with the law.
Colin Clark (Gordon) (Con)
Stephen Hammond (Wimbledon) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)
Through the industrial strategy we will drive over £20 billion of investment in innovative and high growth businesses. We will increase the national productivity investment fund to £31 billion. We are working to ensure that small and medium-sized enterprises win more public sector contracts to enjoy the benefits of that investment.
Stephen Hammond
My hon. Friend the Minister will know that many local authorities have reliefs, including small business relief, which they could use. Unfortunately, not all local authorities are using them. Will my hon. Friend say what the Government could do to encourage local authorities to use those reliefs so that all small businesses benefit?
Margot James
The Department for Communities and Local Government has issued clear advice to councils that will enable them to calculate the relief that is payable to businesses in the current year. I urge them to pay heed to that advice and implement it. My hon. Friend may be interested to know that Merton council has been allocated £459,000 of business rates discretionary relief in the current year.
Paula Sherriff (Dewsbury) (Lab)
Many small businesses are in catering and hospitality, and we of course wish them well, but when we leave a tip for staff we expect it to be paid to them, so when will the Minister publish the report on fair tips so that we can ensure that workers get paid properly?
Margot James
The hon. Lady rightly raises an important issue. Following the commissioning of the work on tipping, we have issued guidance and publicised the issue. What was happening was grossly unfair. I am glad to report that there has been a significant improvement since we commissioned the review.
Julian Sturdy (York Outer) (Con)
Unfair trading practices used by big retailers have been identified as a factor in limiting the growth of small and new businesses supplying to the groceries sector. Will the Minister therefore reassure me that the Department will be bringing forward proposals to widen the remit of the Groceries Code Adjudicator in its response to this year’s consultation?
Margot James
We will be publishing our response to this year’s consultation on the future of the Groceries Code Adjudicator early next year. I have already committed to meeting my hon. Friend to discuss this with the Minister for Agriculture, Fisheries and Food, my hon. Friend Member for Camborne and Redruth (George Eustice), and I look forward to that meeting.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
Small business growth has been made more difficult due to the decision of the Royal Bank of Scotland to close 269 branches, which has been described as a “hammer blow” by the Federation of Small Businesses policy convenor in Scotland, who says that
“these changes will make it more difficult to run a business in much of Scotland”.
Will the Minister commit to working with the bank and her colleagues in the Treasury to ensure that the businesses and communities these branches serve are not left without the banking services they require?
Margot James
The hon. Gentleman raises a crucial point of concern to communities across the country. Although there is limited action the Government can take on how banks run their businesses, we have worked with the Post Office to enable it, through its 11,600 branches nationwide, to run a full complement of services
Bill Esterson (Sefton Central) (Lab)
Despite having the fifth biggest economy in the world—soon to be the sixth—the UK is ranked only 48th in the global enterprise league; 48th out of five really takes some doing. But this is not just about the lack of support for start-ups. Among small and medium-sized enterprises business confidence is falling and costs are rising, and, as the Bank of England’s figures show, access to finance is still at its lowest level since 2010. Do the Government have any excuse for their woeful failure to support our smallest businesses?
Margot James
The hon. Gentleman really should stop talking small businesses down, and he is absolutely wrong in his estimate. The UK is No. 4 in the world for being the best place to start a business, and the OECD figures show that we score highly on enterprise. He does raise a valid point about growth, and we need to improve our record in supporting small businesses to grow, which is precisely why the Chancellor has made available a vast amount of money in this year’s Budget to support the growth of small businesses.[Official Report, 8 January 2018, Vol. 634, c. 2MC.]
Mr Marcus Fysh (Yeovil) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)
Sound regulation is crucial to businesses, workers and consumers. Approximately 1.4 million small and medium-sized enterprises export directly or indirectly to countries in the EU, and they will have a keen interest in the outcome of our trade negotiations.
Jim Shannon (Strangford) (DUP)
Margot James
We are working with the Department for Education, which is investing hugely in lifelong learning, skills and employability. We are prioritising the digital skills capability within that mission, which I am sure will be of great benefit to SMEs.
Matt Warman (Boston and Skegness) (Con)
Preet Kaur Gill (Birmingham, Edgbaston) (Lab/Co-op)
Given the time that has passed since the promise of an energy price cap, will the Secretary of State confirm that he remains committed to implementing the cap for 17 million households, and will he outline the process by which the Conservative party is expected to introduce it?
Margot James
We have published an important Bill, and we have requested Ofgem to develop proposals as we progress with it. The Business, Energy and Industrial Strategy Committee is scrutinising our draft legislation, which we intend to bring to the House at the earliest opportunity.
Martin Vickers (Cleethorpes) (Con)
Last week I was pleased to welcome a delegation from Taiwan to my constituency to meet businesses in the offshore renewables sector, and the delegation regarded the way the sector has developed in the UK as a model. Will the Minister outline what support is available to small and medium-sized businesses involved in the supply chain in this country that want to extend to countries abroad?
Jim McMahon (Oldham West and Royton) (Lab/Co-op)
Access to finance is critical for small businesses, but the protection in place when things go wrong is non-existent. Do the Government agree, and will they look at extending the role and remit of the Financial Conduct Authority in that regard?
Margot James
I am meeting the chief executive of the FCA before Christmas, and I will be raising the issue of unregulated small business lending, which the hon. Gentleman mentions.
Craig Tracey (North Warwickshire) (Con)
Does the Secretary of State agree that the key to a successful industrial strategy is that it focuses on all areas of the UK, obviously including North Warwickshire and Bedworth?
Rachael Maskell (York Central) (Lab/Co-op)
On 8 March, the Chancellor announced a full review of business rates. On 14 March, the Minister responsible for small business said:
“The review will report in due course and in the not-too-distant future.”—[Official Report, 14 March 2017; Vol. 623, c. 178.]
Yet the industrial strategy barely mentions business rates, which are having a massive impact on businesses in York. When will this review start?
Margot James
The Chancellor has announced considerable business rate relief for small businesses, including making small business rate relief permanent, retrospective redress for SMEs caught by the staircase tax ruling, and more besides.
Cape Town Convention: MAC Protocol
Margot James Excerpts(7 years ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)
The UK has opted in to a proposal authorising the EU to open negotiations on the conclusion of a protocol to the convention on international interests in mobile equipment on matters specific to mining, agricultural and construction equipment (the MAC Protocol).
The convention on international interests in mobile equipment, or Cape Town Convention (‘CTC’) as it is commonly known, is an international private law treaty which aims to reduce the cost of raising finance for certain high value mobile equipment. Three protocols to the CTC have been adopted covering aircraft, rail and space assets. The UK ratified the aircraft protocol in 2015. Adoption of such protocols is viewed as boosting growth in the relevant manufacturing industries (hence the UK adoption of the aircraft protocol).
A key feature of the CTC is to reduce the cost of raising finance through the operation of special insolvency provisions aimed at giving finance and leasing companies greater certainty and control over recovering assets subject to security or leasing agreements in the event of payment default or insolvency.
The CTC project is undertaken under the auspices of UNIDROIT, the intergovernmental organisation focused on harmonisation of private international law. UNIDROIT is currently in the process of concluding a new protocol covering mining, agricultural and construction assets.
On 23 August 2017, ahead of the meeting of the second session of the Committee of Governmental Experts on 2 to 6 October 2017, the Council presented a draft Council decision to authorise the Commission to open negotiations on the conclusion of the MAC Protocol together with draft negotiating directives.
We fully recognise the importance of international efforts to reduce the cost of raising finance for equipment vital for economic growth, particularly in lower and middle income countries where financing costs can significantly inhibit investment and development. Reduced financing costs will also lead to increased demand, providing a boost to manufacturing including UK businesses in the mining, agricultural and construction sectors. The three sectors are all major exporters from the UK with certain niche manufacturers selling up to 95% of their production overseas. Between them the three industries employ over 50,000 people in the UK. They are vital elements of our industrial strategy. Preliminary economic assessment of the MAC Protocol suggests the benefits may amount to $32 to $48 billion annually for developing countries and $36 to $50 billion annually for developed countries.
After due consideration the Government have decided to opt in to the negotiating mandate as proposed by the Council.
As the negotiating mandate is currently restricted so as to preserve the EU negotiating position it is not therefore depositable within Parliament.
The Government will continue to work with the scrutiny Committees if and when they consider whether to opt in to a Council decision to sign and conclude the MAC Protocol. I will also update Parliament on the Government’s opt-in decisions at these stages.
[HCWS331]
EU Insolvency Regulation
Margot James Excerpts(7 years ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)
The UK has opted in to the proposal for a regulation of the European Parliament and of the Council updating the lists of insolvency proceedings and insolvency office- holders in annexes A and B to regulation (EU) 2015/848 on insolvency proceedings. The UK had previously opted in to the underlying regulation on insolvency proceedings in 2015. Amendments to the annexes of the regulation trigger a new opt-in decision.
The annexes list the different insolvency procedures and insolvency office-holders in each member state governed by the regulation. Amendments are made from time to time to reflect changes to member states’ domestic insolvency laws. The current proposal relates to new Belgian, Bulgarian, Croatian, Latvian and Portuguese insolvency procedures and the amendments are considered necessary to ensure that the lists of member states’ domestic insolvency laws are kept up to date. My officials have reviewed the new procedures and agree with the European Commission’s assessment that they properly fall within the scope of insolvency proceedings governed by the regulation.
[HCWS315]