Economic Crime: Planned Government Bill
Debate between Mark Pawsey and Paul Scully(2 years, 10 months ago)
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Paul Scully
We have invested in a number of schemes, including an investment in the National Investigation Service to boost its capacity to investigate cases of serious fraud, especially within the bounce back loan scheme. It received £5 million in the 2020 spending review and made recoveries worth £3.1 million in 2021-22, exceeding its targets. It has investigations into bounce back loan frauds and other areas, and we will continue to work with it.
Mark Pawsey (Rugby) (Con)
I know that the Minister will agree that my constituents have the right to expect that victims of economic crime will get the same redress as for other crimes, including where the victims are taxpayers. He will also welcome the many comments that I have had from businesses in my constituency about the speed of the support that was made available to prevent failures. In respect of Government-backed loans during the pandemic, does he think it would be helpful for the British Business Bank to be required to release performance data on the lenders to provide transparency on banks’ activities at the time?
Paul Scully
I thank my hon. Friend for all his work throughout the pandemic. In his position as a member of the Business, Energy and Industrial Strategy Committee, he has been asking probing questions. With the British Business Bank, we have tried to get the balance right between the transparency required to tackle the issue and the speed at which we can act, so that we are not consuming too much of its resources. It is early days in terms of fraud and recovery, but yes, data will become available.
Postmasters with Overturned Convictions: Settlement Funds
Debate between Mark Pawsey and Paul Scully(2 years, 11 months ago)
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Paul Scully
I appreciate my hon. Friend’s words and, yes, the Post Office must do that, and it is. Nick Read, the chief executive, has come a long way to give the Post Office that future by resetting the relationship with postmasters and sub-postmasters. There is clearly more to do, but we will best provide that future by giving sub-postmasters the confidence and trust they need by righting the wrongs of the past.
Mark Pawsey (Rugby) (Con)
In a Select Committee evidence session in 2019 we heard from postmasters affected by the Horizon debacle, and we heard harrowing accounts of small family enterprises—often a husband and wife—working through the night to go through the books to find losses that did not exist because the computer system did not work. I welcome the interim compensation payments that the Minister has announced today. Will he say a bit more about the Government’s role? In their response to the Committee’s report, the Government acknowledged their own responsibility
“to have visibility of and challenge Post Office Ltd’s major operational and strategic decisions to ensure the sustainability of the network is maintained and that good corporate governance and financial stewardship practices are upheld.”
On that basis, does he believe the Government should have grasped the situation earlier and acted more decisively? What improvements are being made to make certain that postmasters are never again placed in this position?
Paul Scully
First, I believe we now have robust monitoring not just of the compensation schemes but of the future relationship with the Post Office and postmasters. That is exactly what Sir Wyn Williams’s inquiry is there to find out—not just the Post Office’s role, but the Government’s role. If we have fallen short of expectations, I expect to put my hands up and say we got it wrong.
Corporate Insolvency and Governance Act 2020 (Coronavirus) (Amendment of Schedule 10) (No. 2) Regulations 2021
Debate between Mark Pawsey and Paul Scully(3 years, 1 month ago)
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Paul Scully
It is difficult to assess that at the moment. We believe that it has helped companies to get through this process, but we are not able at the moment to ascertain an accurate figure.
The second of the temporary criteria is that, in order to present a company winding-up petition, the debt owed must be at least £10,000. For the most part, there is not normally a minimum amount that must be owed before a winding-up petition can be brought, although based on the statutory demand the debt must be at least £750. Analysis suggests that a temporary minimum debt level of £10,000 could prevent in the region of 15% of petitions that would otherwise be presented. They would largely be petitions against small and medium-sized enterprises, which are likely to have smaller debts and lower cash reserves and, as such, are most in need of additional support.
That £10,000 limit also aligns with the existing £10,000 limit for bringing a case to the small claims court, making it easily recognisable as a rule, to prevent winding-up petitions being presented for small businesses and small debts in the aftermath of the pandemic.
Mark Pawsey (Rugby) (Con)
Will the Minister say whether those are debts that occurred before covid that are subject to the measures, or debts that have occurred since the commencement of the covid period?
Paul Scully
These are an extension of the existing provisions, which are specifically for covid-related debts.
The third and final criterion is that a company winding-up petition cannot be presented in respect of commercial rent until the end of March 2022. I should say that the point of the petition is not to stop companies that have accrued debt being wound up; it should be to allow the creditor the full rights to be able to do so. We are trying to give temporary relief to businesses that are otherwise hard-pressed, specifically because of the pandemic.
The Committee will be aware that the Department for Levelling Up, Housing and Communities has announced an extension of the moratorium on the forfeiture of commercial tenancies until 25 March 2022. That is to allow time for the implementation through primary legislation of a rent arbitration scheme to help industry deal with the significant amount of commercial rental debts that have accrued during the national restrictions period.
The restrictions in the commercial rent arrears recovery scheme have been similarly extended. That measure serves not to undermine the proposed rent arbitration scheme before it is implemented, so commercial landlords will continue to operate under the previous restrictions for petitioning to wind up a company in respect of debts until the end of March 2022. We recognise that that measure might mean a further period of uncertainty for commercial landlords, who themselves might be struggling as a result of the pandemic. However, the rent arbitration scheme will deliver certainty to both the landlord and the tenant, where an agreement to pay down lockdown rent arrears has been unachievable.
Paul Scully
Not in terms of the court cases themselves, but it is about the issuing of winding up. If someone starts issuing demands and then winding-up petitions, that blows a hole in the confidence of other suppliers and customers for businesses. It is the process of the petition itself, which can be done with paperwork, rather than the court hearing, which may come some way down the line, that is really key in the protection here. That is why we need to get it operative very quickly. We have all highlighted the importance of tapering the effects of the instrument, and ensuring that businesses can trade with confidence, and the certainty that we are living with covid.
Mark Pawsey
It is important to get it on the record that when we talk to businesses in our constituencies they are incredibly supportive of the measures that the Government have introduced to tide them over during the most difficult trading period for any business in a generation. Today’s measures are a proportionate step in getting us back to normality.
Paul Scully
I thank my hon. Friend for that. He is right, and he brings his own business experience to bear here. With these balanced and proportionate measures we are reiterating and emphasising that we want creditors and debtors to come together to solve their issues in a way that suits both of them, so that they have a trading relationship in the future and we protect as many businesses, consumers, jobs and opportunities as possible, so that we can continue our strong recovery. I commend the regulations to the Committee.
Question put and agreed to.
Resolved,
That the Committee has considered the Corporate Insolvency and Governance Act 2020 (Coronavirus) (Amendment of Schedule 10) (No. 2) Regulations 2021 (S.I. 2021, No. 1091).
Corporate Insolvency and Governance Act 2020 (Coronavirus) (Amendment of Schedule 10) (No. 2) Regulations 2021
Debate between Mark Pawsey and Paul Scully(3 years, 1 month ago)
General CommitteesRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Paul Scully
It is difficult to assess that at the moment. We believe that it has helped companies to get through this process, but we are not able at the moment to ascertain an accurate figure.
The second of the temporary criteria is that, in order to present a company winding-up petition, the debt owed must be at least £10,000. For the most part, there is not normally a minimum amount that must be owed before a winding-up petition can be brought, although based on the statutory demand the debt must be at least £750. Analysis suggests that a temporary minimum debt level of £10,000 could prevent in the region of 15% of petitions that would otherwise be presented. They would largely be petitions against small and medium-sized enterprises, which are likely to have smaller debts and lower cash reserves and, as such, are most in need of additional support.
That £10,000 limit also aligns with the existing £10,000 limit for bringing a case to the small claims court, making it easily recognisable as a rule, to prevent winding-up petitions being presented for small businesses and small debts in the aftermath of the pandemic.
Mark Pawsey (Rugby) (Con)
Will the Minister say whether those are debts that occurred before covid that are subject to the measures, or debts that have occurred since the commencement of the covid period?
Paul Scully
These are an extension of the existing provisions, which are specifically for covid-related debts.
The third and final criterion is that a company winding-up petition cannot be presented in respect of commercial rent until the end of March 2022. I should say that the point of the petition is not to stop companies that have accrued debt being wound up; it should be to allow the creditor the full rights to be able to do so. We are trying to give temporary relief to businesses that are otherwise hard-pressed, specifically because of the pandemic.
The Committee will be aware that the Department for Levelling Up, Housing and Communities has announced an extension of the moratorium on the forfeiture of commercial tenancies until 25 March 2022. That is to allow time for the implementation through primary legislation of a rent arbitration scheme to help industry deal with the significant amount of commercial rental debts that have accrued during the national restrictions period.
The restrictions in the commercial rent arrears recovery scheme have been similarly extended. That measure serves not to undermine the proposed rent arbitration scheme before it is implemented, so commercial landlords will continue to operate under the previous restrictions for petitioning to wind up a company in respect of debts until the end of March 2022. We recognise that that measure might mean a further period of uncertainty for commercial landlords, who themselves might be struggling as a result of the pandemic. However, the rent arbitration scheme will deliver certainty to both the landlord and the tenant, where an agreement to pay down lockdown rent arrears has been unachievable.
Paul Scully
Not in terms of the court cases themselves, but it is about the issuing of winding up. If someone starts issuing demands and then winding-up petitions, that blows a hole in the confidence of other suppliers and customers for businesses. It is the process of the petition itself, which can be done with paperwork, rather than the court hearing, which may come some way down the line, that is really key in the protection here. That is why we need to get it operative very quickly. We have all highlighted the importance of tapering the effects of the instrument, and ensuring that businesses can trade with confidence, and the certainty that we are living with covid.
Mark Pawsey
It is important to get it on the record that when we talk to businesses in our constituencies they are incredibly supportive of the measures that the Government have introduced to tide them over during the most difficult trading period for any business in a generation. Today’s measures are a proportionate step in getting us back to normality.
Paul Scully
I thank my hon. Friend for that. He is right, and he brings his own business experience to bear here. With these balanced and proportionate measures we are reiterating and emphasising that we want creditors and debtors to come together to solve their issues in a way that suits both of them, so that they have a trading relationship in the future and we protect as many businesses, consumers, jobs and opportunities as possible, so that we can continue our strong recovery. I commend the regulations to the Committee.
Question put and agreed to.
Resolved,
That the Committee has considered the Corporate Insolvency and Governance Act 2020 (Coronavirus) (Amendment of Schedule 10) (No. 2) Regulations 2021 (S.I. 2021, No. 1091).
Employment Rights
Debate between Mark Pawsey and Paul Scully(3 years, 5 months ago)
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Paul Scully
I have noticed that I can shrink my long list of responsibilities in the ministerial portfolio down to Minister for unintended consequences. I do not want to have a series of legislation, which is a blunt instrument, as if it is tackling a binary tool. That would have unintended consequences for people’s jobs and livelihoods. We want to have a flexible economy so that we get both right.
Mark Pawsey (Rugby) (Con) [V]
I welcome the way in which the Minister is today extending the rights of the most important asset of any business, which is people. I am sure he will agree how essential it is to ensure that flexibilities enable workers to work the hours that suit them best, while also allowing employers to respond to the changing demands of their customers.
Paul Scully
My hon. Friend is absolutely right. We need flexibility in the workplace, including so-called zero-hours contracts, for example. We know that the majority of people who work on zero-hours contracts like the flexibility. However, we want to ensure that we can clamp down on things like exclusivity contracts, which is why we banned those. It is important to get the balance right.
Post Office Update
Debate between Mark Pawsey and Paul Scully(3 years, 6 months ago)
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Paul Scully
I thank the hon. Gentleman, who has been persistent in standing up for postmasters.
The situation has been going on for 20 years—a long, long time—and it is so important that we get to the bottom of it. Clearly, we have already been speaking to the Treasury, which has supported the Post Office in a historical shortfall scheme, and we will continue to do so. It is so important that people get fair redress and compensation and that we put the Post Office on a good footing for the future. Although this issue has been going for 20 years, I should say that Post Office Ltd now, under chief executive Nick Read, is determined to look positively to the future while standing up and supporting us in getting the answers about those last two decades.
Mark Pawsey (Rugby) (Con)
I was a member of the Select Committee that in March last year heard really distressing accounts from Post Office staff, including constituents of my hon. Friends who were wrongly convicted of discrepancies, and we heard about the devastating effect on their lives. I am really pleased that the Minister, the Secretary of State and the Prime Minister have heard about that for themselves, and I really welcome today’s action. I also heard from Binley Wood’s sub-postmaster, Shailesh Patel, who tells me that he has increasing amounts of hours’ work for reducing commissions. What steps can Minister take to ensure that the Post Office properly looks after its staff who perform such a valuable role in our local communities?
Paul Scully
I absolutely agree with my hon. Friend about the role that post offices play in communities, which is all based on postmasters. I speak regularly to the chief executive and other people in Post Office Ltd and fair remuneration for postmasters is absolutely at the heart of our discussions to ensure that they keep adding social value.
Arcadia and Debenhams: Business Support and Job Retention
Debate between Mark Pawsey and Paul Scully(3 years, 11 months ago)
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Paul Scully
This is an important situation. Our hearts must all go out, as they have done today, to the employees of both Arcadia and Debenhams. In terms of an online sales tax, that is something we will look at in the fundamental business rates review. It is important that our high streets survive. There is an understanding that online businesses have an important role to play, but they must pay their fair share of taxes.
Mark Pawsey (Rugby) (Con)
The challenges that Arcadia and Debenhams face existed before covid, but they have been accelerated by it as people move online. The Minister outlined the very substantial support the Government are providing to retailers, but, to follow the question from the hon. Member for Aberdeen South (Stephen Flynn), should the Government go further and consider levelling the playing field between bricks and mortar and online retailers through an online sales tax?
Paul Scully
An online sales tax is one consideration that the Treasury will look at, but it is more than that. We need to ensure, in the fundamental business rates review, that there is a connection between businesses, bricks and mortar retailers, and their place, rather than just the customers themselves. There is an important body of work to be done and I know the Treasury will have heard the comments and views today.