Businesses: Late Payments

Mark Pawsey Excerpts

Wednesday 19th June 2019 Commons Chamber

[Kelly Tolhurst]

I apologise to the hon. Gentleman for the fact that he did not receive a copy of my statement in sufficient time. That was not my intention at all. I hope that he will understand, following the many debates that he and I have had in the House, that that is not how I tend to work with him. I thank him for recognising that this statement should have an impact on the late-payment problems of many small businesses. One thing that has been made absolutely clear to me since I became a Minister—and actually prior to being elected, when I was a small business owner myself—is that late payment is always raised by companies that deal with large organisations. I am very pleased to be able to move forward on this matter.

The amount of money owed in late payments has halved. I wish to recognise the work that has been done by the small business commissioner since he took up his role one and a half years ago. He has collected more than £3.5 million in late payments. The hon. Gentleman is right to question his role and when the consultation will take place. We want that consultation to happen quite quickly. One of the key things that came out of the call for evidence was that people wanted more powers to be given to the small business commissioner. They saw his role as, in effect, an umbrella role encompassing a number of enforcement abilities for him to act on behalf of small businesses.

The consultation will happen soon, and I would like it to take place with speed. I reiterate that, as we seek views on whether we should allow the small business commissioner to apply sanctions such as binding payment plans and financial penalties, that would be a massive step change and step forward. The small business commissioner has been very vocal in requesting more powers to enable him to represent and help the small businesses that come to him.

We will also be seeking views on whether the small business Minister should have the ability to refer topics to the small business commissioner for investigation. The small business commissioner will currently investigate only once a complaint has come from a small business, so we are looking at other ways in which investigations could be carried out. Obviously, I am giving hon. Members just a sample of what will be included in the consultation.

The hon. Gentleman is quite right on the matter of boards. On the back of the Chancellor’s announcements in the spring, we are pleased to give audit committees the power to review payment practices and for that to be included in the annual report. We are working with the Financial Reporting Council and the frameworks department at BEIS to work out the best way for that to happen. The new strategic reporting requirement was introduced in January. We are asking the FRC how the payment reporting duty is covered by that new duty, if at all. I assure the hon. Gentleman that we will legislate to make that happen if necessary.

The Chartered Institute of Credit Management has worked hard on this issue over recent months, especially on the strengthening of the voluntary prompt payment code in October. We are pleased that cross-examining the data gathered under the payment reporting duty has helped with compliance with the voluntary code. We and the CICM believe that the best place for that duty is with the small business commissioner, so that the commissioner is, in effect, a one-stop shop and an easily identifiable pathway for small businesses.

The hon. Gentleman is right to talk about project bank accounts. Some hon. Members present, including my hon. Friend the Member for Bury St Edmunds (Jo Churchill), have lobbied me in the past on the matter of retentions. We have told the industry that we expect it to come to a consensus on a way forward, and we will take action if it does not.

As the hon. Gentleman knows, we have announced that from 1 September any company bidding for Government contracts over £5 million will be expected to pay 95% of their invoices within 60 days. If they do not achieve that target, they will not necessarily be able to bid for further contracts. In April 2019, we announced our new ambition that 90% of undisputed invoices should be paid to small businesses within five days.

[Mark Pawsey (Rugby) (Con)]

Like the Minister, I ran a small business, so I recognise the challenge of late payments for small businesses. It is to the credit of this Government that they created the role of small business commissioner. The Minister said that she is holding a consultation on additional powers for the small business commissioner, who has often said that he needs more powers. Will she be a little clearer about when those powers might be available to him, and whether they will include the power to fine businesses that fail to honour their commitments? The Business, Energy and Industrial Strategy Committee has heard about many businesses that signed up to the prompt payment code but failed to adhere to its terms, and the small business commissioner needs a little bit more beef to get his teeth into that issue. Finally, will she consider making it mandatory to add interest to overdue accounts, because that would give businesses that are delaying payments a real incentive to get their payments made on time?

[Kelly Tolhurst]

Primary legislation would be required to give further powers to the small business commissioner, so we will seek views and consult. We do want to give the small business commissioner further powers—for example, the ability to apply sanctions to businesses that do not comply with requests for information, court orders or financial penalties. Such sanctions could include binding payment plans.

My hon. Friend asked whether we would consider making it mandatory to apply interest to overdue accounts. There is currently low take-up of the application of interest to invoices, so there needs to be an education piece for small businesses, which we very much hope to achieve through the small business commissioner. With all these elements coming under one roof, he can launch an ambitious PR strategy to enable small businesses to understand what powers already exist for them.

Net Zero Emissions Target

Mark Pawsey Excerpts

Wednesday 12th June 2019 Commons Chamber

[Greg Clark]

I thank the hon. Lady for her welcome. It contained some caveats, but it was there nevertheless, and I am grateful for it.

I think that the hon. Lady should take this opportunity to reinforce the joint determination—which is noted around the world—of parties in this House of Commons to commit themselves to leading the world. We have delivered on that. I do not know whether the hon. Lady has seen this week’s report from the International Energy Agency, but it is something of which she, and all of us, should be proud. The IEA—the world’s foremost body in commenting dispassionately on energy matters—says in its report:

“The United Kingdom has led the way in the transition to a low-carbon economy by taking ambitious climate action at international and national levels.”

That is its headline conclusion. As I said in my statement, it has also commented that the Government’s efforts—and I think we can include the efforts of successive Governments—are

“an inspiration for many countries who seek to design effective decarbonisation frameworks.”

This is a moment at which, for all the fractiousness of current debates, I think the House can be proud of the decisions that have been made.

The hon. Lady asked about carbon budgets, which were established by the Climate Change Act. As she will know, for the two carbon budgets that have been met—most recently in 2017—we have achieved surpluses of 1.2% in the first and 4.7% in the second, and we are on track for a surplus of 3.6% in the current one, which will end in 2022. As for the carbon budgets that follow, which run until 2032, at this stage—and we are talking about 15 years or more from now—we are already 90% of the way there.

An important feature of the report from the Committee on Climate Change is its recognition of the astonishing returns from investment in innovation. When the right hon. Member for Doncaster North (Edward Miliband) and I were debating the Climate Change Bill across the Dispatch Boxes—the right hon. Gentleman will remember this—the Opposition came close to defeating the then Government on the question of imposing an emissions performance standard on new coal-fired power stations: we were defeated by just a few votes. The need for such a performance standard is now cast into history, because we have no new coal-fired power stations and we are closing the existing ones. Such is the pace of change. So I am absolutely confident that we will meet the ambition that we have set today.

The hon. Lady mentioned solar power. The Committee on Climate Change has commended the action we have taken through the feed-in tariffs. They were always intended to kick-start the solar industry. The scheme cost £1.2 billion a year, and £30 billion has been spent on supporting the industry. It has been successful, as intended, in bringing prices down. Just as in every other advanced economy, as intended from the outset, it has now closed, but has been replaced by an export guarantee that allows those supplying surplus energy in the market to be paid for it.

Proposals of that kind have been endorsed by commentators around the world. In choosing to make this big increase in research and development, we can be confident that we can maintain and fulfil our ambition not only for the environment, but for the job creation in every part of the country that comes with a consistent and determined act of leadership. I am grateful for the support of the Opposition in that regard.

[Mark Pawsey (Rugby) (Con)]

Today’s announcement has been broadly welcomed—by, among others, the Confederation of British Industry—but our energy-intensive industries such as steel, ceramics and cement are currently paying a higher price for energy than is paid in comparable countries. What reassurance can the Secretary of State give such industries that other industrial economies will follow our lead and that the measures that will have to be introduced if we are meet the zero target by 2050 will not place those industries at a competitive disadvantage?

Oral Answers to Questions

Mark Pawsey Excerpts

Tuesday 11th June 2019 Commons Chamber

[Greg Clark]

The take-up of electric vehicles is growing very quickly in this country. The investment that we are making in the charging network, with 17,000 public charging points, is a very important contribution to that. In the weeks ahead, the hon. Gentleman will see further announcements on how we can accelerate the deployment of charging technology.

[Mark Pawsey (Rugby) (Con)]

I wonder whether the Secretary of State has received his invitation to the reveal of Lotus’s new electric hypercar on 16 July. It is the world’s first electric hypercar—designed, engineered and built in Britain. In a week when the motor industry has had some difficult news, does he agree that this is a great shot in the arm for the UK motor industry?

[Greg Clark]

It is indeed a great shot in the arm and I hope that I will see my hon. Friend there to celebrate it. It is fair to reflect that this is a difficult, challenging time for the automotive industry around the world, but through the decisions that we took in the industrial strategy to emphasise battery electric vehicles and the new technology, and connected and autonomous vehicles, we have made the right judgment about how to attract the jobs and companies that will be expanding in the future.

British Steel

Mark Pawsey Excerpts

Wednesday 22nd May 2019 Commons Chamber

[Greg Clark]

I grew up in the hon. Lady’s constituency, and I am very familiar with the landscape of steelmaking across Teesside. We need to learn the lessons of this. Across the country, including in Scotland, as we have heard, there have been times when the steel industry has been challenged. Not everything has been done in the best way each time. We should learn the lessons and apply them in this case. I hope that the official receiver will do that, and the indemnity is partly given to provide the official receiver with the confidence that the liabilities, especially the safety aspects, will be covered.

[Mark Pawsey (Rugby) (Con)]

The Secretary of State will know that, for any business to succeed, it is vital to look after the needs of the customer, so will he say a little more about the steps being taken to maintain the continuity of supply to manufacturers and contractors of the excellent, high-quality products produced by British Steel?

[Greg Clark]

My hon. Friend is absolutely right. The company benefits from very good relationships with customers, and I particularly mention Network Rail. This is important to both sides of that relationship. Network Rail has been particularly understanding and supportive during British Steel’s difficulties, and I hope very much that Network Rail will be part of the solution to resolving the difficulties facing the operations.

Bombardier

Mark Pawsey Excerpts

Tuesday 7th May 2019 Commons Chamber

[Andrew Stephenson]

I thank the shadow Secretary of State for the tone of his remarks, and I agree with him completely on the importance of Bombardier. Indeed, I would go as far as to say that it is a jewel in the crown of not only Northern Irish manufacturing, but the whole UK aerospace sector. It is therefore vital that we all work together to do everything we can to ensure the future of this site and its workforce.

The hon. Gentleman posed a range of questions that I wish to touch on. I am more than happy to meet the unions and workers’ representatives to talk about this issue, and to visit Northern Ireland to see what we can do. It is important that we find the right buyer for this company, which has a good order book and is profitable. Like other companies in the aerospace sector, it has huge growth potential in the coming years. I will not rehearse the statistics now, but they show huge growth potential in the aerospace sector, and Bombardier is well positioned to capitalise on it.

The Government continue to work to support the wider Northern Irish economy. A heads of terms agreement for the Belfast city deal was agreed by the UK Government, Northern Irish government and Belfast regional partners in March 2019. The Belfast region city deal will see the UK Government invest £350 million into the Belfast region over the next 15 years. In addition, work is ongoing between the UK Government and local partners on a funding announcement for a Londonderry/Derry regional city deal. As has been said, the Secretary of State for Northern Ireland is not here—obviously, she is doing good work in Northern Ireland at the moment—but I stand ready to work with her and other Ministers to ensure that all necessary support is given to the workers at this site going forward.

[Mark Pawsey (Rugby) (Con)]

The Business, Energy and Industrial Strategy Committee paid a visit to the Belfast plant of Bombardier last November during which we saw a highly skilled workforce carrying out fantastic work in the manufacture of aircraft wings with a high level of expertise. We also saw the benefits of the £2.7 billion investment that has been made in the plant since 1989. Does the Minister agree that it is important to reassure not only customers of Bombardier, which provides for the families of aircraft that Bombardier itself produces, but external customers such as Airbus with its A220 programme?

[Andrew Stephenson]

I agree that this site is very much a going concern. Bombardier has made it clear that it will look for the right buyer for this site. It does not intend to close it. As part of a strategic overview of its business, it has decided that this site, along with the Morocco site, should go up for sale. The Government have worked consistently with the site, and, since 2017, more than £20 million has been invested in research and development activity at the Belfast plant to develop new products and to improve efficiency.

Oral Answers to Questions

Mark Pawsey Excerpts

Tuesday 30th April 2019 Commons Chamber

[Andrew Stephenson]

The UK has committed to being a global leader on this topic. We have already taken more than 15 billion plastic carrier bags out of the economy, we are consulting on a deposit return scheme and we have introduced proposals for a world-leading new tax on plastic packaging that does not meet minimum thresholds. There is always more that we can do, but there is an awful lot that we have already done.

[Mark Pawsey (Rugby) (Con)]

Does the Minister recognise the contribution of the UK packaging manufacturing industry, which has annual sales of £12 billion, employs 85,000 people and makes up 3% of the UK manufacturing base, in working closely to increase the percentage of recycled material by using innovative new technologies and materials?

[Andrew Stephenson]

I thank my hon. Friend for that question. The UK plastics industry is vital to our economy, employing more than 170,000 people. This new challenge for the sector allows it to create new jobs as it embraces our challenging targets and ambitions in this area.

Oral Answers to Questions

Mark Pawsey Excerpts

Tuesday 19th March 2019 Commons Chamber

[Claire Perry]

Far from it. I do not recognise those numbers. I have got into trouble before for saying I probably would have been out there with those kids several years ago—I recognise the admirable passion and urgency with which they have raised this matter, although we need their skills to solve this problem. The best way to solve the climate problem is to create a generation of geo-engineers, climate scientists and technologists, and they have to learn those skills in the classroom.

We are absolutely not coasting, but we need strong cross-party support to deliver this change. It is striking that when we debate our relationship with the earth’s climate for the next 40 years, this place is half empty, but when we debate our relationship with the EU for the next three years, it is jam-crammed. We need to get beyond Brexit and start focusing on the future.

[Mark Pawsey (Rugby) (Con)]

The Minister is rightly encouraging the use of electric vehicles, but, as she will appreciate, in the commercial sector there is, on occasion, inadequate supply in the grid. Will she recognise the valuable role played by Off Grid Energy in my constituency, which has storage technology, and whose latest project for the Oxford Bus Company involves capturing energy from solar panels and storing it so that the buses can be charged up overnight?

[Claire Perry]

My hon. Friend—whose constituency is known for its engineering excellence—is absolutely right. As is clear from the smart systems plan for the future and the smart export guarantee, decentralised energy generation storage is one of the ways in which we can maximise the value of electric vehicle roll-out and its contribution to solving the generation and storage problem.

Honda in Swindon

Mark Pawsey Excerpts

Tuesday 19th February 2019 Commons Chamber

[Greg Clark]

I am grateful to my hon. Friend for giving me the chance to say on the record that we totally respect the reasons Honda has given. In fairness, he will agree that I have made it clear that the sector is undergoing a big change, not least in technology, but I have to report to him and the House the countless conversations I have with virtually every firm in the automotive sector, large and small, all saying that the uncertainty is a negative factor in their investment decision making and that they want our future relationship to be without frictions, tariffs and rules of origin checks. That is sufficiently consistent that it is fair that I bring it to the attention of the House in a statement about the automotive sector.

[Mark Pawsey (Rugby) (Con)]

A year ago, the Business, Energy and Industrial Strategy Select Committee visited the Honda plant at Swindon. We saw Civics coming off the line, many of them destined for the European market, and the benefits of the substantial overseas investment in our automotive industry, some of which has benefited my constituency through the London Electric Vehicle Company. In its peak year of 2013, investment reached £588 million. Are there any decisions the Secretary of State would suggest the House take in the next few days to encourage future investment to get back to that kind of level?

[Greg Clark]

There are indeed. The context of technological change is common to the motor industry around the world, but as I hope I have made clear, we have the opportunity to be a beneficiary of that change. We cannot be complacent about how competitive the sector is around the world, which means we must do everything we can to give confidence to investors, and that certainly involves agreeing a deal over the next few days that can unleash the optimism that comes from investment up and down the country—investment that I know in many instances is not taking place while people contemplate what our future trading relationship will be.

Oral Answers to Questions

Mark Pawsey Excerpts

Tuesday 12th February 2019 Commons Chamber

[Greg Clark]

My hon. Friend is absolutely right. In fact, the number is 3.25 million more jobs since 2010, and 80% of those have been full-time. The number of zero-hours contracts has actually fallen.

[Mark Pawsey (Rugby) (Con)]

Rugby has the second highest rate of people in work in the west midlands, and one reason for that is the flexibility in the local labour market, especially in the growing logistics sector. Does the Secretary of State agree that for many people, the ability to choose the hours they work is important to them?

[Greg Clark]

My hon. Friend is absolutely right. The Taylor report called for two-sided flexibility, so that employers and employees can make a choice as to what the best arrangements are for them both.

Oral Answers to Questions

Mark Pawsey Excerpts

Tuesday 8th January 2019 Commons Chamber

[Greg Clark]

In the “Road to Zero” strategy document, it is very clear that diesel engines, especially the new generation, are a perfectly acceptable choice environmentally as well as economically. The right hon. Gentleman will know that diesel sales are falling across the whole of Europe, but we have been very clear in this country that it can play an important role in the transition to zero-emission vehicles.

[Mark Pawsey (Rugby) (Con)]

T10. Following on from the previous question, maintaining an uninterrupted supply of components for just-in-time manufacturing and the ability to sell tariff-free into European markets, both of which are enabled by the Prime Minister’s deal, is vital to the continued success of the UK auto industry. Forty constituents of mine, all of whom work at Jaguar Land Rover, have reminded me of that through their emails. Will the Secretary of State welcome that approach?

[Greg Clark]

I do indeed welcome the representation from my hon. Friend. The automotive sector is one of our most successful, and it is globally admired. Its success depends on having the just-in-time production that makes it so competitive. In my view, it is vital that we pose no threat to that in our new relationship with the European Union.