Oral Answers to Questions

Mary Creagh Excerpts

Tuesday 9th April 2019 Commons Chamber

[Mr Hammond]

We have always been clear that the UK must maintain control of the regulations governing one of its most important sectors and, crucially, a sector that the UK taxpayer stands behind. Those regulations have to be made in the UK. The agreement we have negotiated with the EU in the political declaration means that each side would make its own choices on regulation through its own legislative processes, and if any of these lead to our respective regulatory regimes no longer being equivalent, either side would have the right to withdraw market access.

[Mary Creagh (Wakefield) (Lab)]

The financial services sector is not above the law. If I can take the Chancellor back to the loan charge, what steps is he taking against accounting firms that told my constituents, who are working in the IT sector with a Government Department, that these schemes were perfectly legal? My constituents now find themselves laden with debt from HMRC and paying these things back. What is he doing about those corrupt accountants?

[Mr Hammond]

The hon. Lady is absolutely right. As well as pursuing tax avoiders themselves, we have to pursue those who promote tax avoidance. My right hon. Friend the Financial Secretary has just told me that there are over 100 promoters of avoidance schemes who are currently under active investigation by HMRC.

Spring Statement

Mary Creagh Excerpts

Wednesday 13th March 2019 Commons Chamber

[Mr Hammond]

I suppose that is a manifestation of the universal truth that you can never satisfy. A good case has been made for providing free sanitary products in secondary schools and colleges where there is a controlled environment for their distribution and where the bulk of the need clearly lies. Of course, I understand that there is an issue regarding primary schools. I am open to sensible suggestions for how we might address that, but the core of the problem is in secondary schools and colleges. We have addressed that today, and I hope the hon. Lady recognises that.

[Mary Creagh (Wakefield) (Lab)]

The DEFRA budget has been cut by 35% over the past eight years, so while I welcome what the Chancellor has said on the future homes standard, which is genuinely new and innovative, he cannot expect the people in Natural England and the Environment Agency to keep doing more with less while enduring a pay freeze—a 15% real-terms pay cut over the past 10 years.

Our Prime Minister has signed up to the sustainable development goals. In July, she will go to New York and say what she is doing to end poverty, violence and hunger. With infant mortality and child hunger rising, what has the Chancellor announced today to tackle that?

[Mr Hammond]

As I have said, this is not a fiscal statement today. I take on board the various points the hon. Lady has made, and my right hon. Friend the Prime Minister is of course going to the conference in New York. Sometimes I do not recognise this country from the descriptions I hear from Opposition Members—[Interruption.] I get out plenty, but I do not recognise this country from their descriptions. Of course we have problems and challenges, but could we stop talking Britain down relentlessly?

Financial Services (Implementation of Legislation) Bill [Lords]

Mary Creagh Excerpts

2nd reading: House of Commons & Money resolution: House of Commons & Programme motion: House of Commons & Ways and Means resolution: House of Commons
Monday 11th February 2019 Commons Chamber

[The Financial Secretary to the Treasury (Mel Stride)]

I beg to move, That the Bill be now read a Second time.

I should begin by paying tribute to my noble Friend Lord Bates for piloting the Bill through the other place so successfully. I am sure that the House will recognise the importance of supporting our financial services industry no matter what the outcome of negotiations on leaving the European Union. The UK’s position as a world-leading financial centre is critical to our prosperity. In 2017, the financial sector contributed £131 billion to the UK economy. It employs over 1 million people across the country, two thirds of whom are outside London, including in the thriving financial centres of Edinburgh, Belfast, Manchester and Cardiff. UK exports of financial services were worth over £77 billion in 2017, which highlights the importance of the sector on the global stage.

[Mary Creagh (Wakefield) (Lab)]

I am sure it was an oversight, but in his list of UK financial services centres the Financial Secretary neglected to mention the Yorkshire centres of Leeds and Halifax—of course where the Halifax bank was born—and the many building societies that remain in our area.

[Mel Stride]

I thank the hon. Lady for that very appropriate intervention. She is quite right to mention the local presence of financial services across the United Kingdom.

My right hon. Friend the Chancellor of the Exchequer has already set out the Government’s long-term vision for the future success of the UK’s financial sector, based on world-leading positions in the markets of the future, whether in green finance or in FinTech, and we are pursuing an ambitious global financial partnership strategy to cement our trading relationships with key partners.

However, we also need to ensure that we have appropriate regulations in place, with the right balance between protecting stability and fostering competitiveness. We aim to be the safest and most transparent place to do business, leading the race to the top and always championing high regulatory standards in financial services markets. The Bill will ensure that, in a no-deal scenario, the UK’s regulatory landscape will not fall behind its international counterparts.

The Government have been clear that we do not want a no-deal scenario, but it remains the role of a responsible Government to continue to prepare for all possible outcomes. That includes the event that we reach 29 March without a deal. In those circumstances, we will have brought on to our statute book the vast body of EU legislation that needs to be operative at the point of exit. However, the powers under the European Union (Withdrawal) Act 2018 relate only to legislation operative immediately before exit day. A number of pieces of EU legislation will not be covered by the powers conferred under the withdrawal Act. They include proposals that are either already agreed but which have not yet been implemented, or those that are soon to be agreed beyond our exit from the European Union.

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[Mary Creagh]

The Minister talks about the in-flight legislation and the proposals as they appeared in the other place. When they first appeared in the other place, they were missing a couple of bits relating to the taxonomy of environmentally sustainable activities that would allow companies to green-check their revenue streams, and to new disclosure requirements for asset owners such as pensions schemes, which is of great concern to the Environmental Audit Committee. Can he explain why those two proposals were left off the list? The Bill has now been amended in the other place, but why were they originally missing?

[Mel Stride]

I think this is an example of Parliament carrying out its process and legislation being improved as a consequence. The most important point is where we have ended up. Having listened to the arguments put forward in the other place, the Government chose to embrace the amendments that brought those two particular files into the scope of the Bill.

The Bill provides a mechanism through which the UK will be able to implement in-flight financial services legislation. They fall into two categories. The first category of files relates to those that have been agreed while we have been a member of the European Union, but will not apply or be in force prior to the UK’s exit from the EU on 29 March. In a no deal and in the absence of the Bill, there would be no effective way to implement those files in a timely manner, as each would require primary legislation. The Bill allows the Government to domesticate each of these files in whole or in part via an affirmative statutory instrument. It further provides a power to fix deficiencies within them.

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[Mary Creagh (Wakefield) (Lab)]

It is a pleasure to follow the hon. Member for Glasgow Central (Alison Thewliss), who made an excellent speech.

Today’s debate has focused on Brexit and financial services. I want to focus on why the Bill is so vital to our budding green finance industry, what the EU is doing to promote green finance and what our own country is doing in that regard, and what the Government can do to end uncertainty for an important and growing part of our economy. I shall refer to the sixth and seventh reports of the Environmental Audit Committee, “Greening Finance: embedding sustainability in financial decision making” and “Green finance: mobilising investment in clean energy and sustainable development”.

In 2015, the United Kingdom signed up to the Paris agreement on climate change and the UN’s global goals for sustainable development, which set out ambitious targets to transform our world. In the three years since then, we have learnt much more about climate science. As was made clear in a report published by the Intergovernmental Panel on Climate Change in October 2018, if we are to avoid the catastrophic effects of uncontrolled climate change we shall need radical and unprecedented changes in all parts of the economy, which will require trillions of pounds—or dollars—to be invested in clean energy and cleaner transport infrastructure.

I pay tribute to the Government for some of their work in that regard. The Bank of England’s Task Force on Climate-related Financial Disclosures looked into strategy, risk and targets. The Government then set up the Green Finance Taskforce, whose report made a series of recommendations, one of which was that the Government should establish a sovereign green bond to kick-start investment. The Government have yet to respond to that report, but I hope they will do so soon. We have seen the green growth strategy, and, in the City of London, $22 billion of investment has been raised in seven currencies for more than 72 green bonds. I fear that the Bill could potentially disrupt some of the progress that we are making, and interfere with London’s place as a centre for green finance.

We have done well in our own country. We have moved quickly to decarbonise the power structure. However, we have done very little to deal with our agricultural and transport-related emissions, and almost nothing to decarbonise our heating emissions. When people tell me that things will be easier, I always ask, “How are you going to transform 31 million gas boilers over the next 10 years?” According to the IPPC’s report, we have just 12 years in which to tackle damaging carbon emissions. We need to think big, and think globally, if we are to rise to that challenge.

My Committee’s inquiry found that the privatisation of the Green Investment Bank and the reduction in European Investment Bank lending following the referendum may have played a part in the 56% reduction in investment in green energy projects in the UK. We could not work out whether that was a blip or a trend, but I look forward to seeing this year’s figures and finding out which it was. Our “Greening Finance” report states that climate change poses material threats to our economy, our investments and, of course, our pensions, which provide the funding for these companies.

There are three climate-related financial risks. There is the physical risk posed by more heatwaves such as the one that we experienced last year, more droughts, which will threaten the water industry, wildfires, which we have seen in the Arctic and in California, extreme rainfall, rising sea levels, and flooding. That risk will affect investment in food, farming, infrastructure, house building and insurance. In a 4° world, my Committee was told, the insurance market would cease to exist. London’s position as a global insurance centre would be destroyed, and the jobs along with it. There is also the risk posed by the transition to the green economy. Companies that do not make a timely low-carbon transition could face costly legal or regulatory action, and some will be left behind by innovative firms with cleaner, greener, more efficient technologies.

Issuers—banks, insurance companies, asset managers and owners, and a range of other financial institutions—must assess and report climate-related financial risks. That is particularly important in relation to pension funds. I welcome the National Employment Savings Trust, but by the time a young person auto-enrolled in the scheme retires, we could be living in a world radically transformed by climate change and society’s response to it. According to the latest Met Office prediction, in a high-emissions scenario our summers will be 5° warmer than they are now. That has implications for the water that we drink and the homes in which we live.

It is vital that our pensions, investments and savings are able to weather those changes, which is why my Committee called on the Government to introduce mandatory reporting of climate-related financial risk. We also wrote to the chairs of the 25 largest pension funds asking them what they were doing to mitigate that risk. We think that improved reporting would help to divert more capital to more sustainable ends, because what gets measured gets done. That would increase investment in the new green infrastructure that we need, and would mean that our savings did well while also doing good. We are pleased that the Government have clarified the fiduciary duty of pension trustees in trust-based schemes, which will come into force on 1 October 2019, and we are waiting to hear from the Financial Conduct Authority what it intends to do.

Let me now turn to why the Bill matters in relation to sustainable finance. I asked the Minister—and I was grateful to him for giving way—about “in-flight” legislation. The EU has proposals for financial services legislation that would promote sustainable finance. It is debating proposals for a framework for low-carbon benchmarks which would allow investors to harmonise their portfolios with the Paris agreement on climate change. The benchmarking is important, because only by seeing what is happening in other companies can investors work out whether they are doing well or badly, and make the strategic changes that may be necessary. It is also discussing the possibility of a taxonomy of environmentally sustainable activities which would allow companies to “green-check” their revenue streams, and new disclosure requirements for asset owners such as pension schemes, as well as asset managers, banks and insurers. My Committee had called for that.

When the Bill was introduced in the other place, I was disappointed to note that the EU proposals for benchmarks and disclosure requirements were not included in the list of “in-flight” legislation in the schedule. The Minister said that this was Parliament doing its job and amending legislation, but it is not clear to me whether those proposals were left out accidentally or deliberately. Do we think that we are already doing those things so brilliantly that we need not bother to pursue the proposals? The Minister has not made that clear.

I welcome the amendments made in the other place to include all the EU’s sustainable finance proposals. However—this is important—the Government have no obligation, but only the option to adopt those valuable measures. Will the Minister reassure the House that the Government will adopt them, and that the UK will not fall behind when it comes to EU action on sustainable finance? If we diverge from the EU’s regulations on sustainable finance it would harm large financial institutions with investment in green financial products in Europe. It could harm our budding sustainable investment industry. We are at the moment a world leader in finance; we know the difficulties Brexit will cause to be faced across our economy, but we have the opportunity to be a world leader in sustainable green finance and we must not let that opportunity pass us by.

Fashion Industry

Mary Creagh Excerpts

Thursday 31st January 2019 Commons Chamber

[Mary Creagh (Wakefield) (Lab)]

I thank you, Mr Deputy Speaker, and the Backbench Business Committee for allowing me to present to Parliament this interim report on the sustainability of the fashion industry, the 15th report of this Parliament’s Environmental Audit Committee. I also thank the dedicated staff and Committee members who, despite the Brexit crisis, continue to work tirelessly to hold the Government to account on environmental protection, and I am delighted to see so many members in their place.

We launched our inquiry last June to examine the social and environmental impact of fast fashion and the garment industry and to consider what actions consumers, retailers and the Government must take. Our final report will be published next month. The subject of today’s statement is the interim report, which focuses on retailers’ responsibility to ensure they employ people fairly and reduce fashion’s footprint and to ensure that fashion does not literally cost us the earth.

We heard evidence that fast fashion encouraged the over-purchase, over-consumption and under-utilisation of clothes. This leads to excessive waste. In the UK, we throw 11 million items of clothing worth £140 million into the bin every year. People in this country buy more clothes than people in any other European country: 27 kilos per person a year, or two big suitcases, which is twice what the stylish Italians buy. This is spurred on by retailers selling clothes at pocket money prices—£2 T-shirts, dresses for a fiver—and encouraging consumers constantly to change their wardrobes, to stay on trend, to instagram it and to treat garments as single-use items.

If retailers are selling their T-shirts for £2, how much are the people making them getting paid? The answer is not enough, and they are sometimes working in terrible conditions. As Livia Firth from Eco-Age said this morning on Radio 4, we wear the stories of the people who make our clothes, and if we wear those stories, we must reflect deeply on the fact that five years ago the Rana Plaza building collapsed in Bangladesh, killing 1,130 garment workers. It was the biggest industrial accident of the modern age. The victims were mostly young women producing clothes in inhumane conditions and being paid poverty wages to fuel fast fashion on the UK high street.

Our inquiry has heard that harsh working conditions are not just a problem in Asia and China. We have heard worrying evidence of illegal practices in clothes factories here in the UK, particularly in Leicester, where 10,000 textile workers produce more than 1 million items of clothing a week. One whistleblower told me they saw fire exits padlocked shut. Online retailer Missguided told us that two of its inspectors were manhandled by factory bosses. It raises the question: if that is how factory owners treat their potential customers, what are the conditions being endured by their workers?

We heard that workers were working long, gruelling shifts and often earning as little as £3.50 an hour. Her Majesty’s Revenue and Customs told us that since 2012 more than 90 factories in the UK have been caught in breach of minimum wage regulations, illegally underpaying their workers, and have been forced to pay out £90,000 in wage arrears—an average of £900 per worker. David Metcalf, the director of Labour Market Enforcement, said in his first annual strategy that labour abuses, exploitation and modern slavery were all part of a single continuum of abuse and needed to be tackled holistically.

Last autumn, we wrote to the UK’s top 10 fashion retailers, four major online retailers and two supermarkets, Tesco and Asda. We asked 16 questions—for example, whether they were signed up to the Waste and Resources Action Programme’s sustainable clothing action plan to reduce their carbon, water and waste footprint or to Act, Collaboration, Transformation, an initiative by the global garment workers union IndustriALL that works towards a living wage for all garment workers through collective bargaining, and about their use of sustainable cotton and recycling. Based on their replies, we have grouped them into three categories: most engaged, moderately engaged and least engaged. Only six of the 16 retailers are signed up to that ACT global trade union initiative. We were pretty shocked to see a group of major household name retailers failing to take action to promote action to protect their workers. Let us take their responses in turn.

The most engaged retailers were ASOS, M&S, Tesco, Primark and Burberry. They all use organic or sustainable cotton in some of their garments and recycle their materials. They all have in-store take-back schemes or recycling banks. However, the Committee was shocked to hear that Burberry incinerated over £26 million of clothing last year. We welcome its commitment to end this completely unsustainable practice.

All five of these engaged retailers are members of the Ethical Trading Initiative, which aims to improve conditions for workers globally. The Committee particularly welcomes ASOS becoming the only retailer to sign a global framework agreement with IndustriALL, the global trade union, committing to the highest standards on trade union rights, health and safety, and labour relations. We would like to see many more retailers follow its lead. We believe that freedom of association is far better than company audits at driving up worker protection.

The moderately engaged retailers were Next, Debenhams, Arcadia Group and Asda. These retailers are the proverbial curate’s egg, taking some steps towards sustainability in the social and environmental spheres, but still falling short. For example, Next does not run take-back schemes for used clothing, saying that it would just be too expensive. Arcadia has one take-back scheme in one Oxford Street store out of its 2,500 UK shops. None was committed to reporting on climate change risk and only Next is taking action to tackle hazardous chemical discharges in its fabrics supply chain.

Our real concerns involve the least engaged group of retailers. JD Sports, Sports Direct, Amazon UK, TK Maxx, Boohoo and Missguided are clear industry laggards, and Kurt Geiger did not even give us the courtesy of a response. I leave hon. Members to draw their own conclusions about that. None has signed up to WRAP’s sustainable clothing action plan to reduce their carbon, water and waste footprint. Internationally, none has signed the ACT labour rights agreement.

Amazon was notable in its lack of engagement. It is taking none of the sustainability actions that we asked it about, nor has it signed up to ACT or the Ethical Trading Initiative. Its size, online reach and potential for growth as a fashion retailer mean it must get serious about its responsibilities.

We also have major concerns about the online retailer Boohoo’s approach to trade unions. When we asked its joint CEO, Carol Kane, about unionisation at its distribution depot in Blackburn, she told us that it would recognise a trade union if there was demand from workers but there was not really any sort of demand. Shortly after that, we got a letter from Mike Aylward, from the Union of Shop, Distributive and Allied Workers trade union, contesting her evidence. He said that Boohoo

“has, over a prolonged period of time refused even the most basic level of engagement with Usdaw and appears hostile to the very idea of recognising a trade union.”

We recommend that Boohoo engages with USDAW as a priority and stops blocking union recognition and collective bargaining for its UK workers and its workers overseas.

This interim report shows that the current business model for the UK fashion industry is unsustainable. We are disappointed that so few large retailers and supermarkets are showing leadership. If we are to tackle climate change, cut emissions and reduce fashion’s heavy footprint, these socially exploitative and environmentally damaging practices must end. Retailers must do more. By using this report, customers and consumers can make informed choices about where they choose to spend their money. We know they want to use their spending power wisely. It is time that retailers follow their lead. We will be setting out a blueprint when our full report is published. I commend this report to the House.

[Mr Edward Vaizey (Wantage) (Con)]

Mr Deputy Speaker, you will know just from looking at me that I was the Minister for fashion for six years and the hon. Lady will know just from looking at me that none of my clothes enjoys a single-use outing.

I warmly welcome the hon. Lady’s report, which I urge Ministers to consider. The British fashion industry is one of the most successful parts of our economy and the British Fashion Council does a huge amount to promote it and, indeed, to promote sustainability. Does she agree that her report is so good it should not gather dust, and that Ministers and other willing Members should work with her and fashion stakeholders to give British fashion a fantastic competitive edge in being the world’s leading sustainable fashion industry?

[Mary Creagh]

I thank the right hon. Gentleman for that question. He is right that the UK fashion industry is a £32 billion industry. Areas such as my own in West Yorkshire have a long and proud tradition of textile manufacturing, weaving and spinning—I have the Sirdar factory in my Wakefield constituency—and of reusing and recycling: industries are using shoddy and mungo in mattresses, carpeting and bedding. So this is a proud industry. We found that no one is speaking for the end-to-end industry. There are people focused on the high street and people focused on the British Fashion Council side of things—all the exciting creativity—and then there are the textile manufacturers, but they are not really altogether in one group. We think that they need to speak with one voice.

Last week, I visited the UK Textile Centre of Excellence in Huddersfield, where I saw some of the plasma technology and digital laser technology that it is inventing to reduce fashion’s footprint and to give clothing antimicrobial properties so that it becomes more waterproof. So instead of processes using chemicals that wash off and wash down the drain, they are done at reasonably low temperatures with no chemical or water discharges. This is the future of fashion. We are inventing it here, but it is being exploited by a US company, which will shortly be listing on AIM—the alternative investment market. We need to keep this home-grown technology in our country. We have fantastic heritage brands. I am wearing a John Smedley sweater, made in Derbyshire, which has been worn at least 1,000 times—and darned. It offers lifetime repair and reuse services, as do Church’s for shoes and Burberry for raincoats, which are made in the constituency next door to Wakefield: the constituency of Normanton, Pontefract and Castleford. We have to celebrate what is good and shut down the bad things.

[Sandy Martin (Ipswich) (Lab)]

I thank my hon. Friend for this report, which we welcome. I note the reluctance of certain clothing manufacturers to co-operate in any attempt to audit the environmental impact of their business and, in one case, a point-blank refusal to engage at all.

Climate change does not respect political sensitivities. Whatever is said in this Chamber will make no difference to the rate of global temperature increase unless we can reduce our consumption of fossil fuels globally. Every area of our lives needs to be geared to that objective fact. Does the Chair of the Select Committee share my hope that more of the major retailers will sign up to the sustainable clothing action plan? Clearly, there is a way to go both with pollution, especially the release of micro-fibres into the environment, and with the climate change implications of fast fashion.

Transition towards a globally sustainable pattern of clothing consumption will not be easy, but does my hon. Friend share my conviction that companies that set out to do the right thing will reap the rewards of their initiative? Customer trust in brands is essential to clothing retailers and trust in those brands’ environmental credentials will be an increasingly important part of the way consumers feel about them. Companies that are already striving to improve their environmental impact will be better placed to meet any regulatory or financial changes that may come about as a response to climate change.

Does my hon. Friend agree that the fashion industry can and must contribute to the move towards a more sustainable pattern of global consumption, and does she share my trust that the Government will take the recommendations from the Environmental Audit Committee very seriously when they come out in the final report?

[Mary Creagh]

I thank my hon. Friend the shadow Minister for that question. He is absolutely right. If we have just 12 years to tackle damaging climate change before we reach certain tipping points, every sector and industry in the UK economy is going to have to tackle its carbon, waste and water footprints. Signing up to initiatives such as SCAP will literally be their licence to do business and their licence to operate. It is not a nice cherry on the cake or just a nice thing to have.

The fact that the sustainability manager and the buying manager often run in parallel in such companies, rather than the buying manager’s work feeding into the sustainability manager’s, is a problem. The cost per garment is put against the environmental and social cost per garment, and the financial cost always wins out. We need to change that relationship.

I agree with my hon. Friend that, through our clothes, we are wearing the fresh water supplies of people in India and in Uzbekistan, and we are destroying the environment. We have heard about the drying up of the Aral sea in Uzbekistan, where cotton farming has contributed to an economic, social and environmental disaster. We have not made our final recommendations, but I promise him that, when we do, they will be pretty far-reaching.

[Dr Matthew Offord (Hendon) (Con)]

The hon. Lady makes the point that considerations about the fashion industry relate not just to economic conditions but social conditions around the world, so I am sure she would agree that it is in everyone’s interest not just to buy from the highest ethical producers, but from British companies too. Will she take this opportunity to confirm to the House that the first evidence session at the Victoria and Albert Museum was the highest attended public session of this Parliament? I had some scepticism about this inquiry at the beginning, but the number of people interested in it has convinced me. To confirm what my right hon. Friend the Member for Wantage (Mr Vaizey) says, we will not allow the report to gather dust. There is a great deal of interest in it out in the country.

[Mary Creagh]

I thank the hon. Gentleman, who is a passionate and committed member of the Committee. We were thrilled to be hosted by the V&A. Its amazing “Fashioned from Nature” exhibition contains earrings made out of little birds 150 years ago, showing how we have consistently stolen from nature to decorate ourselves. There is nothing new under the sun.

The hon. Gentleman is right about our very large Committee hearing. We are breaking all sorts of new bounds with this Committee. When we launch the report we are going to have some cartoons to accompany it. I think that will be a first for Parliament, too. As the right hon. Member for Wantage says, the real value of a garment comes not in its price but in the number of times it is worn. That is where we get real value. A £50 garment worn 100 times is better than a £5 dress that is worn just once.

[Alex Sobel (Leeds North West) (Lab/Co-op)]

I pay tribute to my hon. Friend, our Committee Chair, for her foresight in bringing this inquiry forward at this time. It is absolutely the right time. Does she agree that it is shameful that one of the top 10 fashion retailers in this country, Kurt Geiger, refused point blank to provide evidence to our Committee? It must come forward with evidence before we get to the final report.

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[Mary Creagh]

Yes. I thank my hon. Friend, who is also an enthusiastic participant in this inquiry. I had to do a bit of convincing, but this has been quite a revelation for us as a Committee. To have a nil response from Kurt Geiger is extraordinary. It is not too late for it to give us its response. I hope it will listen—its public relations firm is probably writing it a desperate note at the moment—and I hope its chief executive will take this issue on board. I will make one other point to the House. This House passed the Modern Slavery Act 2015. It is not clear to me which brands have or have not submitted modern slavery statements. I hope journalists listening to this debate do their own research into that.

[Kerry McCarthy (Bristol East) (Lab)]

Trying to make ethical choices as a consumer can be really difficult, whether for food or fashion. I must admit that after sitting through one session I came to the conclusion that we would all be walking around in brown paper bags—recycled paper, of course—because there seems to be a problem with almost every type of clothing. Does the Chair of the Committee agree that the onus cannot just be on the consumer to shop around? We must require manufacturers and retailers to step up to the mark and make sure that what they put on the market is ethically sourced, whether it be in terms of labour, materials or the way they treat their workers and so on.

[Mary Creagh]

I thank my hon. Friend for that question and for her incredibly dedicated leadership in the Committee, particularly on food waste on which she is a real national expert. She is right that it is impossible for the consumer to pick their way through this situation. The supply chains need to be guaranteed by retailers right down to farm level. That is very difficult because cotton is a global commodity. We heard that some retailers are attempting to do that by working with small-scale cotton traders. We live in a digital world where we have blockchain sustainability and sourcing. Some supermarkets can tell us more about the sourcing in their sausage supply chain—the factories and the abattoirs where their animals were killed—than they can about the lives of the women and in some cases the children working in factories. The International Labour Organisation definition of a child is someone under 15. There are 15 and 16-year-olds working in factories to make our children’s clothes. I want much more transparency in the fashion supply chain, so there is a real movement towards people having an answer to the question of who made their clothes.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

I thank the hon. Lady and the Select Committee for an excellent interim report. As chair of the all-party group on textiles and fashion, we welcome the report. We recently held a roundtable to look at this very issue and were shocked to hear evidence of child labour and child refugees working in a lot of the fashion and textile industry. Will she look at those issues going forward? One suggestion made was for a traffic light system to help consumers choose the most ethical fashion.

[Mary Creagh]

I thank the hon. Lady for her interest in this subject. Yes, we did hear such evidence, particularly in relation to Turkey and the Syrian refugee crisis. We heard about two 15-year-old Syrian boys working in a factory. The problem with the current model is that the factories are sending in auditors, but everybody knows when they visit. The factory looks spick and span and shiny, and they get shown the official set of accounts. A different set of accounts goes to the tax authorities and there is another set of accounts that controls workers’ wages. The whole supply chain is almost created to incentivise the abuse of manual workers, often women manual workers or what we would class as child manual workers, and we are just prepared to turn a blind eye. The fashion industry has been marking its own homework for far too long.

The traffic light labelling initiative is interesting. What we have tried to do with the 16 different initiatives is look at the landscape that exists at the moment, which is fragmented, complicated and difficult, to see how we can bring it all together and see what is being engaged with. I hope we can tackle some of these very bad labour abuses, not least in our own country.

[Mr Jim Cunningham (Coventry South) (Lab)]

I congratulate my hon. Friend on a worthwhile and very thorough report. I am sure you remember, Mr Deputy Speaker, that nearly 20 years ago we investigated Barbie dolls. There were allegations then about child labour, as well as the abuse of adult employees on very low wages. It is amazing, listening to the report, that not a lot has really changed. I hope the Minister will say something encouraging on taking up the issue of health and safety in working conditions, particularly in Bangladesh. Some working conditions are appalling.

[Mary Creagh]

My hon. Friend makes a very good point. One difficulty is that a lot of fashion work is piecework done in the home, so there is no ability to work out what the minimum wage that should be paid actually is. In many countries there either is not a minimum wage or it is not a living wage—it is not a wage that people can live on. We received supplementary evidence from Boohoo about its £5 dress, which stated that workers in factories in the UK are making seven or eight dresses an hour. I remember when I was doing textiles at school it took me about four weeks to make my skirt. Sadly, someone sold it at Bishop Ullathorne school so I never got to wear it. It was fantastic and it was going to look really good. That was my one chance to make my own garment. The point is that very skilled workers in factories are working really hard, but I do wonder when they are able to make a cup of tea or go for a loo break. In the UK, they are making seven or eight dresses an hour that are being sold for a fiver. That still raises too many questions.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

I, too, congratulate the Committee on this excellent report. Following on from the answer the Chair gave to the previous question, I was struck by the evidence on minimum wage transgressions given to the Committee by the Financial Times journalist. She said:

“it is a totally open secret. Central government knows about it; local government knows about it. All of the retailers know about it.”

It is very clear and stark that there is a blatant disregard for the law. I am mystified as to why that has not been put a stop to already.

--- Later in debate ---

[Mary Creagh]

I thank my hon. Friend for that comment. Sarah O’Connor’s testimony was literally jawdropping; we could not quite believe that that was happening in this country. After her testimony, more and more whistleblowers, who wished to preserve their anonymity, came to us to talk about what they had seen. They said that rivers in India are running blue from the dyes from cotton factories.

Sir David Metcalfe said that the textile industry is a problem area in the UK for national minimum wage enforcement. In Leicester, there were raids on 28 factories—the raids are based on risk. Of those 28 factories, 14 are now under investigation. We think that that is for non-payment of the national minimum wage, but two are under investigation for other reasons—we can guess that that is either for gangmaster issues or immigration issues. That shows the scale of the problem in these high-risk industries. We have shone a very bright light on Leicester, and we will continue to do so.

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Mims Davies)]

I appreciate the work of the Select Committee Chair and its members. When I was a Back Bencher, I worked with the hon. Member for Wakefield (Mary Creagh) on the all-party parliamentary group on textile and fashion. I was also on the APPG on ethics and sustainability in fashion, and we had a swishing party in the House of Lords. Sustainable fashion is therefore of interest to me.

I am here on behalf of the Minister for Digital and the Creative Industries, who is currently at a roundtable, but I undertake to have a look at this very interesting report. It will go before Ministers in my Department, the Department for Environment, Food and Rural Affairs and the Department for Business, Energy and Industrial Strategy, so this important work can be taken forward.

Finance (No. 3) Bill

Mary Creagh Excerpts

2nd reading: House of Commons & Programme motion: House of Commons
Monday 12th November 2018 Commons Chamber

[Mel Stride]

I will tell the hon. Gentleman where some of the money comes from. I will tell him where £700 million has just come from, and that is the Barnett consequentials following from the recent Budget.

[Mary Creagh (Wakefield) (Lab)]

If the Minister is serious about introducing a digital services tax, why did he not just introduce it overnight? When we look at the Red Book, we see it says that the income and the delivery of this policy are both high risk. If he is serious about taxing the digital giants that are offshoring their money, why is he giving them a couple of years to make provision elsewhere? [Interruption.]

--- Later in debate ---

[Mel Stride]

We are investing hugely, and the evidence is there that we are succeeding. We have had a 43% reduction in carbon emissions since 1990. We are still pursuing, committed to and confident that we will meet our 80% reduction target by 2050. There are measures in the Bill, for example, to provide a tax relief for those who charge their cars through the businesses for which they work. We will continue to be very forward-leaning on the issue of the environment.

[Mary Creagh]

On that point, the Government’s failure to introduce a latte levy on single-use disposable coffee cups and bottles or to introduce a tax on virgin plastic until 2022 means that 700,000 tonnes of plastic packaging will be thrown away before 2022. Is that what the Financial Secretary means by making sure that the polluter pays in tackling climate change?

[Mel Stride]

What I mean by our environmental credentials in that area is that we are consulting, as the hon. Lady will know, on the amount of packaging that contains recyclable plastics. We see that not only as informing what we will subsequently do but as helping to change behaviour, much as the sugar levy changed behaviour in the sugar-based drinks sector. We have a very strong record in this area. We have already done a number of things in the public health area, and we will also make progress on the environment.

EU Customs Union and Draft Withdrawal Agreement: Cost

Mary Creagh Excerpts

Monday 22nd October 2018 Commons Chamber

[John Glen]

I say to my hon. Friend that we need to have a fair settlement that does the right thing by the people of this country.

[Mary Creagh (Wakefield) (Lab)]

The Minister is doing his best to accentuate the positive, as the song goes, but he knows that the cost of Brexit is already being paid by every family and every business in this country: higher prices in the shops, a staffing crisis in the NHS and a hit to the public finances of £26 billion a year, before Brexit has even happened. Can I ask him to resist the jingoism and fantasy maths of the English nationalists in the Conservative party and remember that staying in a customs union is a red line for those of us in the Labour party? The value of not returning to a hard border—

[Mr Speaker]

Order. Forgive me for interrupting the hon. Lady, but we have got a lot to get through, and we must make progress rather more quickly.

Food Labelling and Allergy-Related Deaths

Mary Creagh Excerpts

Tuesday 9th October 2018 Commons Chamber

[David Rutley]

Common sense, yes, but the priority has to be food safety. UK consumers need to feel safe when they consume food, wherever it may be, and we need to find mechanisms to ensure that, whether food manufacturers and retailers are small or large, they get information across to consumers. It needs to be proportionate, but it needs to be effective as well.

[Mary Creagh (Wakefield) (Lab)]

I am sure that the hearts of the whole House went out to Natasha’s family as they relived at the coroner’s inquest her tragic and avoidable death. Natasha was a careful consumer who was not given the information that she needed from Pret a Manger to keep herself safe. Does her death not show that the current food labelling regulations are not fit for purpose? Will the Minister ensure that no amount of special pleading, loopholes and laxity on the part of the food industry deters him from his, I am sure, definite intent to tighten the labelling regulations, strengthen trading standards enforcement and increase the money that goes from his Department to the public analysts so that food in shops can be tested?

[David Rutley]

As I have said on several occasions in responding to this urgent question, there is no question but that we need to strengthen the regulations. We need to get to grips with the coroner’s report. I echo the hon. Lady’s point that there should be no wriggling off the hook here. It is important that Pret a Manger and other companies look at that report and its implications and work out how they are going to respond.

Summer Adjournment

Mary Creagh Excerpts

Thursday 20th July 2017 Commons Chamber

[Mary Creagh (Wakefield) (Lab)]

May I welcome you to your post in the Chair, Madam Deputy Speaker, as I believe this is the first time I have had the privilege of speaking under your chairmanship? May I also say what a pleasure it is to see the shadow Deputy Leader of the House in her place and welcome her to her position?

It is a pleasure to follow such excellent speeches, including the one made by the hon. Member for Gloucester (Richard Graham). Wakefield, too, was hit in those terrible 2007 floods. We had £13 million of flood defences put in and we have so far escaped further flooding. Resilience, citizenship and leadership—the things he mentioned—are all too alive and well in the minds of people in Wakefield today as we remember those floods. It was also a pleasure to hear the maiden speech from my hon. Friend the Member for Reading East (Matt Rodda). He will be a doughty fighter for his constituents. I certainly learnt something about Reading’s history; I thought it was just the prison, but brewing, biscuits and bulbs sounds like a sound base for economic development for his city.

I want to talk about CAPA College, an outstanding school in Wakefield but one that sadly will not be able to take lower-sixth students in September and whose future hangs in the balance after Ministers attempted to move the college to Leeds. What a sorry, sad tale this is.

CAPA College has been the sixth-form provision at Cathedral Academy, a Church of England secondary school in Wakefield, for the past 10 years. It is the only sixth-form in the city of Wakefield. It delivers 28 hours a week of specialist performing arts teaching, and it is unique in West Yorkshire and, dare I say it, in the whole of the north of England, for the standard of performing arts teaching it provides. I pay tribute to my constituent Claire Nicholson, CAPA’s director, and the brilliant, sublime production of “West Side Story” by 16-year-olds which I had the privilege of watching a couple of weeks ago. It was the most wonderful performance of that show that I have ever seen.

In September 2015, CAPA College and its sponsor, the Leeds diocese, through the Enhance Academy Trust, received permission from the Minister to open as a free school. A year later, the Department for Communities and Local Government made a conditional agreement for the sale and purchase of a site in Leeds city centre, and the Education Funding Agency agreed to provide two years’ interim funding to allow CAPA College to stay in Wakefield until the site in Leeds obtained the necessary planning permissions—the new free school could open in September 2018. However, documents that I obtained from Leeds City Council show that, after the planning application was submitted, it emerged that the building is on the route of HS2. Leeds City Council rejected the planning application because of concerns about road safety and congestion; it is not a suitable site for a school. We are talking about the former home of KPMG in Leeds. KPMG obviously got out; it sold it on to a German consortium. That consortium realised that it had perhaps bought a pup and sought to sell it on to someone else—and who better than the UK Government to know what the UK Government are doing!

The Education Funding Agency has rescinded its two-year funding offer to my local school until CAPA College has found a new building. That has forced the trust to inform potential new students that places will not be available to them; in effect, there is no year 12 student admission to CAPA college this year because of this building fiasco. The college has had to issue redundancy notices to staff, whose employment will end on 31 August. I know that the trust is working with Wakefield Council and the EFA to find a new permanent home for CAPA in Wakefield; we made it, we grew it, we developed it and we want to keep it. But why did the EFA continue with a planning application after being told that the site would have a high-speed rail line through it by 2032? Is this seriously a good use of taxpayers’ money? Why was another site for CAPA College not identified as soon as it was known that there was a problem with this one? How much has the EFA spent on this site? Has the EFA completed the sale, even though HS2 will run through it and Leeds City Council has refused the planning application? If so, how much has it paid, or has it pulled out of the contract—in which case, how much has it lost?

I wrote to the Education Secretary in March to seek answers to those questions, but I have not received a reply. I hope that the Deputy Leader of the House will take my concerns back. The announcement this week of extra funding for England’s schools is based on the fact that money that will be taken from the budget for new free schools, so there may be less money to enable CAPA College to find its new home in Wakefield. The fiasco has left CAPA College on the brink of closure, and dozens of dedicated staff and students unsure about their future. I have received letters from distraught students, alumni, parents and grandparents. The closure of CAPA College would damage the life chances of young people in Wakefield who aspire to go into the arts and would mean the closure of the only sixth form in Wakefield city centre.

The alumni have the chance to go on to perform in west end shows and tour all over the world, and I do not want to see the dreams of young people in Wakefield turned to dust. This September, we will see the opening of the advanced innovation and skills centre in Wakefield to deal with the historically low levels of tertiary education—higher education—in the city. We do not want to see one door opening in Wakefield while another one closes. I would like a substantive reply from the Minister and firm action from the EFA, so that those excellent teachers and that outstanding provision can be kept.

I pay tribute to the headteachers of the four secondary schools in my constituency: Miriam Oakley at Horbury Academy; Alan Warboys at Ossett Academy; Elizabeth Ford at Wakefield City Academy; and Rob Marsh at Cathedral Academy. I also pay tribute to Clare Kelly, whose Dane Royd Junior and Infant School I visited recently. I wish all GCSE and A-level students good luck with their results when they come out in August.

I conclude by congratulating Simon Wallis, the director of the Hepworth gallery in Wakefield, which was crowned Art Fund museum of the year 2017. I think Wakefield is the only city to have had two Art Fund museums of the year—we also received the honour in 2013 for Yorkshire sculpture park, run by Pete Murray. Should Channel 4 consider a move to west Yorkshire, Wakefield stands ready with open arms to give it a warm, performance-related welcome. I wish you, Madam Deputy Speaker, the staff and, in particular, the builders who are beginning to put up the scaffolding on the Elizabeth tower, a safe and productive recess.

Oral Answers to Questions

Mary Creagh Excerpts

Tuesday 18th July 2017 Commons Chamber

[Mr Hammond]

I welcome the hon. Gentleman’s contribution. On an issue as important to our nation’s future as our exit from the European Union, I welcome any opportunity to build consensus across the House and the nation. He is right to draw attention to what the OBR said. Even a very small decline in our productivity performance would add huge amounts to the debt and would reduce, by significant amounts, our projected growth in GDP. That is why it is so important that we now act responsibly in maintaining fiscal discipline and ensuring that we reduce our debt over time.

[Mary Creagh (Wakefield) (Lab)]

How is the Chancellor’s consensus building around the Cabinet table going? Will he update the House on his assessment of the trade deals that will be done after we leave the single market? He knows that Brexit is going to cause a fiscal shock. Is it true that he has challenged the Secretary of State for International Trade to disprove Treasury calculations that show there is no trade deal we can do after leaving the European Union that will make up for the huge loss of trade that Brexit will create?

[Mr Hammond]

The hon. Lady is assuming that we will lose trade with the European Union. It is clear to me that, all other things being equal, the ability to enter bilateral trade deals with third countries will be a positive for our economy. Of course, we also want to protect our trade with the European Union. My focus is on ensuring that we get a Brexit deal that protects our existing patterns of trade and commercial engagement with the European Union, as well as, over time, allowing us to explore new opportunities beyond the European Union.

Oral Answers to Questions

Mary Creagh Excerpts

Tuesday 28th February 2017 Commons Chamber

[Mr Hammond]

The hon. Gentleman understands very well that being a member of the single market was not an option for the UK given the clear views expressed by the electorate in the referendum, but having comprehensive access to the single market will deliver the great majority of the benefits that he seeks from single market membership.

[Mary Creagh (Wakefield) (Lab)]

Some 100,000 UK businesses have already registered companies in the Republic of Ireland to hedge their bets given the policy and regulatory uncertainty caused by the vote to leave the European Union. Will the Chancellor urge his Cabinet colleagues, when they are negotiating around the table, to give policy and regulatory certainty to industries such as the chemical industry, which are not waiting to see what the Government are doing, but are simply haemorrhaging jobs and investment out of this country?

[Mr Hammond]

I agree with the hon. Lady that certainty as soon as possible is important, as are understanding of what implementation arrangements will look like and over what timescale. However, I urge her not to be hysterical about these things. [Interruption.] Many companies are making contingency plans, including setting up and incorporating subsidiaries in other European Union countries. It is another step altogether to be moving jobs and enterprises abroad. Most of the companies that we talk to have made it clear that there is more time yet for them to be reassured during this process before we see irrevocable moves.

[Mary Creagh]

On a point of order, Mr Speaker.

[Mr Speaker]

We will come to points of order.