Oral Answers to Questions

Debate between Michael Fallon and Baroness Clark of Kilwinning

Thursday 28th November 2013 Commons Chamber

[Michael Fallon]

Since this Government came to office, five new gas plants have come on to the system and another is being built at Manchester, while two large wind farms opened this year and four more are under construction, and we have agreed terms, as we have heard, for the first new nuclear station in a generation. All that investment would be put at risk by the threat of price controls from a future socialist Government.

[Katy Clark (North Ayrshire and Arran) (Lab)]

15. Whether the Government overruled the Nuclear Decommissioning Authority on the decision to extend the contract with Nuclear Management Partners to run Sellafield; and if he will publish all the relevant documents.

[The Minister of State, Department of Energy and Climate Change (Michael Fallon)]

The contract review process and the decision to renew were the responsibility of the Nuclear Decommissioning Authority. Given the importance of Sellafield, Ministers were kept fully informed, and we endorsed the decision to extend the contract, which gives Sellafield the opportunity to build on the progress made so far.

[Katy Clark]

I thank the Minister for that answer. Will he publish the documents in relation to this decision? Will he agree to meet me and any other interested MPs to discuss the Government’s relationship with the Nuclear Decommissioning Authority, given some of the decisions that will be taken over the coming period?

[Michael Fallon]

I am always happy to meet any colleagues from the House, and I am certainly happy to meet the hon. Lady and other hon. Members to discuss the performance of the company at Sellafield. I think that she is referring to the KPMG report, which was commissioned by the Nuclear Decommissioning Authority, and its use and disclosure—whether or not it should be published—is the responsibility of the authority.

Royal Mail

Debate between Michael Fallon and Baroness Clark of Kilwinning

Thursday 12th September 2013 Commons Chamber

[Michael Fallon]

I do not think that we can legitimately be accused of conducting a fire sale, given that the previous Government were proposing to privatise the company four years ago. The process has hardly been rushed. A lot of people were against that sale; it was a half-baked sale and almost every Labour MP was against it, which is why it was abandoned.

I have already made it clear to the House that the universal service obligation is laid down in statute. It can be changed only by Parliament, and we have no plans to ask Parliament to change it. I can give the hon. Gentleman an absolute assurance in that respect. He asked me about the minimum requirements of the service. They can be changed by affirmative resolution, which would involve secondary legislation. We have no plans to alter those requirements. They will be properly policed by the regulator and will apply irrespective of any change in ownership. The price of stamps is also regulated. The price of a second-class stamp is capped by the regulator, and we have no plans to change that position either.

The hon. Gentleman asked me about the relationship between the Post Office and Royal Mail. They are natural partners in the delivery business, and it is unthinkable that they would not seek to work closely together. They have done more than that, however. Last April, they signed a 10-year commercial agreement to provide for the two businesses to work more closely together.

We heard nothing from the hon. Gentleman about what a future Labour Government would do. It seems extraordinary that, four years on, the Opposition still have not worked out a policy. Even now, they cannot say whether Royal Mail should be public or private; they cannot make up their mind whether they would renationalise the company if there were ever to be a Labour Government again.

[Katy Clark (North Ayrshire and Arran) (Lab)]

Does the Minister not accept that bringing companies such as TNT—which uses zero-hours contracts and sends people home every day because there is not enough work for them—into the most profitable areas will put pressure on a privatised Royal Mail to cut the terms and conditions of its work force and to cut the service for customers?

[Michael Fallon]

There is already competition in the postal market from companies such as TNT, but Royal Mail management have made it clear in their discussions with the union that there will be no change to the work force’s current terms and conditions, and they are prepared to sign an agreement with the union on that basis.

Arms Exports

Debate between Michael Fallon and Baroness Clark of Kilwinning

Thursday 13th December 2012 Westminster Hall

[Michael Fallon]

My right hon. Friend has made his point and, indeed, his allegation. All I can say is that such issues are reviewed case by case. Factually, he is right that no licence to Saudi Arabia was revoked but, to date, there is no evidence that UK-supplied equipment has been used in breach of the criteria in either Saudi Arabia or in Bahrain where Saudi forces were deployed in 2011. I appreciate that he is making a slightly different point about the diversion of Bahraini forces, but there is no evidence to show that the UK has supplied such equipment to date.

[Katy Clark]

Does the Minister agree that this situation highlights one of the concerns? We take such decisions only once the equipment has been used. Perhaps we need a more common-sense approach to the question whether our equipment would be used by a repressive regime if its authorities took action that contravened people’s individual human rights.

[Michael Fallon]

I am not quite sure what the hon. Lady means by taking a common-sense approach. Is she suggesting that at the beginning of something such as the Arab spring, we should simply list more countries that we are not prepared to sell arms to?

[Katy Clark]

I am happy to answer the Minister. I am suggesting that in certain countries it would not be surprising if, in future, the authorities repressed their own people who were fighting for democratic rights. If we have sold a lot of equipment to such a country, it is likely to be used in such repression.

[Michael Fallon]

I understand and take the hon. Lady’s point. I repeat, however, that there is no evidence so far that equipment supplied by the United Kingdom to Saudi Arabia has been used in breach of the criteria. Obviously, if any evidence comes to light, we would certainly need to re-examine the position.

On the improvements to the Export Control Organisation, I was touching on the CLC service, which is a non-statutory advisory service, so no performance targets were published, although it had some initial teething problems while the ratings backlog was being addressed. The service is now performing better, however, with around 45% of inquiries being processed within 20 working days. As a non-statutory advisory service and with a number of self-rating tools available to the exporter, the CLC service is not able to compete for valuable technical resource, which must first serve the priority casework for HMRC snags where goods are detained on the point of export, as well as SIEL applications of course.

The hon. Member for Hartlepool made a point about training. For companies that would like to find out more about the rating process, the ECO runs a training course for exporters on control list classification and use of the checker tools—a full-day workshop held approximately every six weeks. The course is designed to give attendees confidence in identifying control list entries that specify their products.

The ECO is keen to identify further areas for improvement and, accordingly, has a service improvement project in place. It is a continuous improvement programme and includes changes to the export licensing system known as SPIRE, encouraging the use of open and general licences and the provision of better and more comprehensive advice for exporters. As part of that process, the ECO has identified the need for a change to the end-user undertaking that accompanies an application for an SIEL, splitting it into two: a normal undertaking and a stockist undertaking.

The ECO will shortly produce the new forms and their associated guidance in translation to help exporters explain the requirement to their overseas customers. Changing the end-user undertaking will help to speed up the export licence application process by reducing the number of times that a licence is held up by the need to clarify information on the end-user undertaking document. To assist in the completion of the forms, the ECO is planning to provide guidance in the following languages: Arabic, Chinese, French, German and Spanish.

The ECO is also working to develop a manual and online training for exporters who use the SPIRE electronic export licensing system. It is developing desk instructions for staff that it hopes will improve consistency in the processing of export licences. It has also been mapping the customer journey on export licensing, so that it can better understand the pinch points in its processes. The intention is that that will lead to the development and delivery of tailored customer service training for ECO staff.

The ECO is implementing a new telephone system, which will provide better call and queue management, with pre-recorded messages and guidance information, and management information to ensure a better service to companies. The aim is to deliver management information on issues such as waiting times and dropped calls to enable the further fine tuning and development of the system.

Open general export licences have been very successful. They are one of the main reasons why the UK export licensing system is recognised as one of the best in the world. The light-touch approach of OGELs, coupled with rigorous enforcement through pre-registration and periodic risk-based audit, is virtually unique in the international community, although the UK model is now being adopted elsewhere, including by the European Commission, Germany and the United States, among others.

Industry wanted a much less complicated OGEL system that was easier to navigate and understand and that was written in plain English and with reduced legal terminology. The ECO initiated an OGEL review at the end of 2010. That work has now progressed to include a format that has been approved by the Plain English Campaign and the Export Group for Aerospace and Defence. The first licence issued under the new format was the OGEL relating to military components, which received the Plain English Campaign’s accreditation for clarity in July. The ECO has recently received further such accreditation for work on the OGEL relating to military goods, software and technology. All those things will take time to deliver, but we are already seeing the first fruits of these initiatives.