Oral Answers to Questions

Debate between Michael Fallon and Bob Stewart

Monday 30th January 2017 Commons Chamber

[Sir Michael Fallon]

I have already made it clear that the Government do not agree with aspects of the ban that was announced on Friday. The hon. Gentleman will have the opportunity later this afternoon to ask more detailed questions about it.

[Bob Stewart (Beckenham) (Con)]

Does my right hon. Friend agree that we will need to increase the study of what is happening in the South China sea, where the strategic threats are changing?

[Sir Michael Fallon]

Yes, we are concerned at the rising tensions in the South China sea. We continue to encourage all parties that may be contesting the sovereignty of particular islands or other areas to take those disputes through the international forums that were established for that purpose, and therefore to de-escalate the situation as far as they can.

Trident: Test Firing

Debate between Michael Fallon and Bob Stewart

Monday 23rd January 2017 Commons Chamber

[Sir Michael Fallon]

On the first point, the right hon. Gentleman may be aware that, under our international treaty obligations notice of any test firing has to be given to other countries and interested parties. In the case of the June test firing, that was done. I do not agree with his latter point. The Government would not have put the motion to the House last July had we had any doubt about the continuing capability and effectiveness of the deterrent.

[Bob Stewart (Beckenham) (Con)]

I remind the House that the Russians not only contemplate using nuclear weapons but practise their employment on their exercises. Is it not crucial, therefore, that we retain our own independent nuclear deterrent, to ensure that our potential enemies, such as Russia, are deterred and think twice before they even contemplate using such weapons of mass destruction?

[Sir Michael Fallon]

I am grateful to my hon. Friend. That indeed was the proposition put before the new Parliament last July and endorsed by 472 Members of this House against a vote of only 117—the latter number included, of course, the Leader of the Opposition.

Oral Answers to Questions

Debate between Michael Fallon and Bob Stewart

Monday 12th December 2016 Commons Chamber

[Mr Speaker]

I call Sir George Howarth. Where is he? I call Mr Bob Stewart.

[Bob Stewart (Beckenham) (Con)]

When I was a young officer serving in the British Army of the Rhine and in West Berlin, I made the assumption that article 5 was a trigger: if anyone attacked a NATO nation, every member would automatically go to war. I am wondering whether that is exactly right now or whether we have just a commitment to consult, which would take much longer than an automatic reversion to war.

[Sir Michael Fallon]

Article 5 was last invoked after 9/11, when the rest of the alliance pledged to do everything possible to help the United States following the most appalling attack on the twin towers. The answer to my hon. Friend's question, of course, is that once article 5 is triggered, each member state has to examine its obligations to the alliance as a whole. Before that stage, as tensions escalate, I would expect the deployments that we have prepared, including the very high readiness taskforce, to be enacted.

Oral Answers to Questions

Debate between Michael Fallon and Bob Stewart

Monday 7th November 2016 Commons Chamber

[Sir Michael Fallon]

Yes, I can tell the House that we expect operations to first isolate, then encircle and then liberate Raqqa to begin shortly. Our forces—the RAF—will be involved in a similar role there, providing intelligence and reconnaissance from the air, but they will also be providing close air support to troops on the ground.

[Bob Stewart (Beckenham) (Con)]

The Royal Air Force is world renowned for the accuracy of its missile strikes. Will my right hon. Friend confirm what I think is still happening, which is that innocent casualties are at an absolute minimum when the RAF strikes in Iraq and Syria?

[Sir Michael Fallon]

I hope that I can reassure my hon. Friend on that, because we take great care to plan our missions in a way that will minimise the risk of civilian casualties in accordance with the rules of engagement that I laid down at the beginning of the campaign. In more than 1,000 airstrikes now conducted by the RAF as part of the campaign, we have found no evidence yet of civilian casualties, and we do carry out an assessment after each of the British strikes.

Liberation of Mosul

Debate between Michael Fallon and Bob Stewart

Tuesday 18th October 2016 Commons Chamber

[Sir Michael Fallon]

Those are very valid concerns that arise from what is now becoming a warzone in and around Mosul. As I have said, the Iraqi Government are fully aware of the need to cope with any increase in the displaced population, to arrange transport for those who can get out of the city to safer areas and to be ready with additional tented accommodation—winter is coming—to house the others. There has been a great deal of planning all summer for this operation and its consequences—what we call the day after Mosul is liberated.

[Bob Stewart (Beckenham) (Con)]

Does my right hon. Friend know whether Iraqi and peshmerga field medical units are as far forward as possible, so that they can tend for the wounded on all sides when they come in, and quickly?

[Sir Michael Fallon]

On my recent visit to Erbil, I saw for myself some of the medical evacuation training that British troops are offering to the peshmerga, showing them how to get casualties away from the frontline as rapidly as possible. That has been a big part of the training that we have been able to offer. They are now relatively seasoned troops; they have been doing this kind of operation for many months in other towns and villages, both in the north of Iraq and along the Euphrates valley, although not on this scale. They certainly understand the importance of getting casualties off the battlefield as quickly as possible.

Oral Answers to Questions

Debate between Michael Fallon and Bob Stewart

Monday 12th September 2016 Commons Chamber

[Michael Fallon]

We would not be ordering any ships from the Clyde if Scotland had become independent last spring, because complex warships are only built in the United Kingdom. Let me be clear: this contract must be in the best interests of the taxpayer. I am aware of the need to sustain employment on the Clyde, which is why, last December, the strategic defence review announced the construction of two further offshore patrol vessels, in addition to the three that are currently being built on the Clyde.

[Bob Stewart (Beckenham) (Con)]

Is it possible for the MOD to consider positioning Gibraltar as a home port for at least one of the Type 26 offshore patrol vessels, where the facilities are superb for them and they are in a very good position to operate?

[Michael Fallon]

That is a suggestion I will certainly consider. Gibraltar is a key base for the Royal Navy. I think last week we had two, possibly three, ships from the Royal Navy calling in on Gibraltar, and Gibraltar of course retains its affiliation to the Crown despite the recent referendum.

NATO Warsaw Summit

Debate between Michael Fallon and Bob Stewart

Monday 11th July 2016 Commons Chamber

[Michael Fallon]

In answer to the hon. Gentleman’s first point, the defence of the United Kingdom is organised on a United Kingdom basis. He should be in absolutely no doubt about that.

On our relationship with Norway, yes, I had a bilateral meeting with the Norwegian Minister. We work extremely closely on defending our respective countries and are looking for further areas of co-operation, particularly in the light of our strategic defence review and Norway’s long-term plan, which was published more recently.

On maritime patrol aircraft, I hope that the hon. Gentleman will have caught up with this morning’s announcement that we are to purchase nine Boeing P-8 aircraft, as announced by my right hon. Friend the Prime Minister with me at the Farnborough air show this morning. I hope it will not be too long before those patrol aircraft are able to help better protect our deterrent, as well as protect our aircraft carriers and conduct other tasks.

Non-proliferation was not subject matter for the Warsaw summit. We remain, in principle, committed to the search for a world without nuclear weapons. However, I have to say to the hon. Member and his party that there are 17,000 nuclear weapons out there and states that are trying to develop nuclear weapons. There remains the danger that others, such as non-state actors or terrorist groups, may try to get hold of nuclear weapons. That is why I will be inviting the House to vote next Monday to continue the principle of the nuclear deterrent that has served this country well and will protect it in the 2030s, 2040s and 2050s.

[Bob Stewart (Beckenham) (Con)]

Let me say to my right hon. Friend how delighted I am that we have reaffirmed our commitment to the NATO alliance by sending the strong signal of using our troops on the ground in Estonia and Poland. Further, I thank him for making arrangements for French and Danish troops to join our battle group in Estonia. I speak as perhaps the only British officer to have commanded the 1st Parachute Battalion of the French Foreign Legion—albeit briefly.

[Michael Fallon]

The purpose of this deployment is to reassure our allies on the eastern border of NATO, as much as to make Russia think twice about any further aggression. I can tell my hon. Friend that our deployment in Estonia was warmly welcomed, not simply by Estonia but by the other Baltic states too. We are seeing now a coming together of the NATO countries and a commitment to each other’s formations, whether it is the very high-readiness joint taskforce or the enhanced forward presence. We particularly look forward to working with French and Danish troops alongside our battalion in Estonia next year.

Royal Naval Deployment: Mediterranean

Debate between Michael Fallon and Bob Stewart

Monday 7th March 2016 Commons Chamber

[Bob Stewart (Beckenham) (Con)]

May I ask my right hon. Friend about the rules for interception? For instance, what would happen if the people on these makeshift craft refused to get on board a royal naval vessel or, indeed, if the people traffickers opened fire on our sailors or marines?

[Michael Fallon]

It was certainly our experience last year that migrants in boats that were sinking or in distress very much welcomed the presence of the Royal Navy and were very eager to get on board the ships that we had deployed, because they knew that they would be safe. The traffickers appear to take very great care not to be on the vessels and have them launched by those who are being smuggled. Where they can be identified—this is where the monitoring and surveillance can assist—they can be charged and prosecuted, as they are being in parts of Turkey.

Armed Forces Bill

Debate between Michael Fallon and Bob Stewart

Thursday 15th October 2015 Commons Chamber

[Michael Fallon]

I certainly do agree with that. This work is ongoing and is not yet done. We will continue to try to make progress. As the hon. Lady knows, we have implemented a number of reviews, not least Lord Ashcroft’s review of the mental health services that are available to veterans.

I assure the House that our commitment to the covenant remains unshakeable. Today, we are launching a credit union for armed forces personnel. By paying a regular amount of their salary directly into the credit union, they will be able to avoid the struggle for credit approval and the siren call of the payday lenders.

Thirdly and finally, the Bill gives us the opportunity to ensure that the 2006 Act remains fit for purpose for the next five years. The first clause keeps the 2006 Act in force beyond the end of 2016; provides for the continuation of the 2006 Act for a year from the date on which this Bill receives Royal Assent; and provides for renewal thereafter by Order in Council, for up to a year at a time, until the end of 2021. That will give Parliament a regular opportunity to debate the systems of the armed forces for command, discipline and justice.

Clauses 2 to 6 modernise and strengthen the service justice system by making sensible and proportionate changes to the existing provisions. I will take each of those clauses, very briefly, in turn.

Clause 2, on post-accident testing for alcohol and drugs, deals with the situation whereby a commanding officer may require a member of the armed forces or a civilian who is subject to service discipline to co-operate in a preliminary test for alcohol or drugs only when he or she suspects that an offence has been committed. The clause extends those circumstances by providing for post-accident preliminary testing without the need for suspicion that the person being tested has committed an offence. The new powers to require co-operation with tests will apply only after accidents involving aircraft or ships or other serious accidents. They are derived from, although not identical to, those in the railway and transport safety legislation under which civilians are required to co-operate with tests for alcohol and drugs.

Clauses 3 to 5 simplify the process of investigation and charging of criminal and disciplinary offences under the 2006 Act. The commanding officer rightly deals with 90% of cases in the service justice system, and that will not change. The remaining 10% of cases are those that the commanding officer does not have the power to hear, which involve offences such as perverting the course of justice and sexual assault. Some cases that cannot be dealt with by the commanding officer have to be referred by the investigating service police to the commanding officer and then by the commanding officer to the director of service prosecutions for a decision. That is an unnecessarily complex process.

Clause 3 provides for the service police to refer straight to the director of service prosecutions in any case where there is sufficient evidence to charge for an offence that the commanding officer cannot deal with on his own. That brings the service justice system into line with the civilian system.

[Bob Stewart (Beckenham) (Con)]

Does that mean that the commanding officer is taken out of the loop entirely in cases concerning soldiers, sailors or airmen who are his or her responsibility?

[Michael Fallon]

No, because the commanding officer will be kept informed about the investigation and the stage it has got to. They are not being removed from the process; we are merely simplifying the procedure and shortening it so that the matter does not have to be referred automatically to the commanding officer and then back to the director of service prosecutions.

Clause 3 also deals with linked cases such as separate offences that occur during the same incident. Some cases may need to be sent to a commanding officer, even though they are connected to a case that has been sent to the director of service prosecutions, and that can result in separate decisions on whether to prosecute, and separate trials. Clause 3 allows the service police to refer a case to the director of service prosecutions if, after consultation, they consider it appropriate to do so because of a connection with another case that has also been referred to that director.

Clause 4 clarifies the procedure for the referral of those linked cases from the commanding officer to the director of service prosecutions, and clause 5 allows the director to bring charges. Currently, when the director of service prosecutions decides that a charge must be brought, they must direct the suspect’s commanding officer to bring that charge. Clause 5 allows the director to bring that charge, just as the Crown Prosecution Service brings charges in the civilian criminal justice system.

Clause 6 increases the range of sentencing options available to the court martial. Civilian courts are currently able to suspend sentences of imprisonment for up to 24 months, but service courts can suspend them for only 12 months. We would like courts martial to be given greater flexibility to vary the deterrent effect of service detention. In some cases it is right for suspended sentences to allow continued service alongside rehabilitation activities. The clause simply corrects the anomaly by giving courts martial the ability to suspend sentences of service detention for up to 24 months.

Clauses 7 and 8 give the director of service prosecutions power to give offenders immunity from prosecution, or an undertaking that the information they provide will not be used against them, in return for assistance that the offender may give to an investigator or prosecutor.

Counter-ISIL Coalition Strategy

Debate between Michael Fallon and Bob Stewart

Monday 20th July 2015 Commons Chamber

[Michael Fallon]

That was last autumn, but I will write and give the hon. Gentleman the exact date.

[Bob Stewart (Beckenham) (Con)]

I understand the political requirement to restrict Royal Air Force operations only to Iraq, but it is military and strategic nonsense and I totally support any move that removes that artificial restriction. Will my right hon. Friend assure me that the overall strategy against Daesh, which may well include our having to beef up help on the ground, is continually under review?

[Michael Fallon]

Yes it is. That is why my right hon. Friend the Prime Minister agreed with Prime Minister Abadi at their most recent meeting that we would step up our effort, particularly in the niche training that we are offering in measures to counter IEDs. We are also working in the Ministries to help to advise the Iraqi Government and Iraqi army security effort, and we stand ready to consider further requests for help.

Oral Answers to Questions

Debate between Michael Fallon and Bob Stewart

Monday 8th June 2015 Commons Chamber

[Michael Fallon]

Absolutely. This five-yearly review gives us the opportunity to look again at our defence industry to see how it is competing with our major defence competitors and whether enough is being done to advance those exports in certain markets, and to ensure that our smaller and medium-sized companies also enjoy the benefit. The defence industry is a major employer and this will be a key part of the review.

[Bob Stewart (Beckenham) (Con)]

In 2010, the SDSR largely neglected the threat from Russia. That situation has now changed. It was also not able to address the upheavals in the middle east, because they had not happened, but we now face a serious threat emanating from the middle east. Will my right hon. Friend assure me that those two factors will be clearly placed as assumptions in the next SDSR?

[Michael Fallon]

I can reassure my hon. Friend on that. We are building on the foundations of the 2010 review, much of whose analysis holds good, but, as he has told the House, it did not predict the sudden rise of ISIL in the middle east or the return of Russian aggression, with the attempt to change international borders by force in Europe. Let me assure him that both those threats will be a key part of this review.

Falkland Islands Defence Review

Debate between Michael Fallon and Bob Stewart

Tuesday 24th March 2015 Commons Chamber

[Michael Fallon]

I have read the same reports as the hon. Lady. I do not think it would be right for me to speculate further on the nature of any particular arrangement between the Governments of Russia and the Argentine. Our job is to make sure that the islands are properly defended and to continue to respect the right of the islanders to determine their own future, and that is what we will do.

[Bob Stewart (Beckenham) (Con)]

If an Argentine Government were foolish enough to give instructions to a military officer to invade the Falklands—they had better get the message that that would be very foolish— Mount Pleasant airfield and Mare harbour would be vital ground. May I suggest—I am not asking a question, but making a statement with which I hope the Defence Secretary will agree—that the Falkland Islands Government and the Governor are also vital ground, and should be protected as well?

[Mr Speaker]

Order. I think that counts as a question. The hon. Gentleman is being too hard on himself.

Service Personnel (Ukraine)

Debate between Michael Fallon and Bob Stewart

Wednesday 25th February 2015 Commons Chamber

[Michael Fallon]

I do not agree with the hon. Gentleman. We are not supplying weapons and we are not attempting to escalate the conflict in any way. As I have said, we believe that in the end the answer has to be diplomatic and political, and the pressure therefore continues to be applied, through sanctions and so on. He invites us to help to demilitarise eastern Ukraine, but I think he ought to ask himself who has militarised the area and who has supplied weapons, tanks and heavy artillery across the border. It is now up to President Putin to withdraw his heavy weaponry, as was agreed at Minsk, and to implement the agreement that he has signed up to.

[Bob Stewart (Beckenham) (Con)]

As a follow-up to what my hon. Friend the Member for Aldershot (Sir Gerald Howarth) said about the 1994 agreement between Russia, the United Kingdom, Ukraine and the United States, under which the sovereignty of Ukraine was guaranteed in return for getting rid of the one third of the Russian nuclear arsenal that it had on its soil, may I suggest that there is an oblique lesson for us now as we think about whether we should replace the independent nuclear deterrent and whether we need to keep it?

[Michael Fallon]

So far as the 1994 agreement is concerned, it is for all parties to respect the territorial integrity of Ukraine, but that has not happened in this Russian-backed aggression and the movement of heavy weapons and artillery from Russia across the border into eastern Ukraine. So far as the nuclear deterrent is concerned, the House debated the matter a few weeks ago and recorded one of the largest majorities in recent years in favour of building the successor submarines.

Al-Sweady Inquiry Report

Debate between Michael Fallon and Bob Stewart

Wednesday 17th December 2014 Commons Chamber

[Michael Fallon]

As I have said, I will certainly look at what support was provided to the soldiers against whom the allegations were made and whether we can improve our procedures in that respect. They do now, as of today, have the knowledge that those allegations turned out to be completely untrue, but I think the House will agree that it should not have taken 10 years and all this money for the truth to emerge.

[Bob Stewart (Beckenham) (Con)]

May I remind the House of just how difficult it is for a soldier in combat to change within milliseconds from a duty to kill the enemy to a duty to protect the enemy under the Geneva conventions? I am extremely proud that our soldiers from both the two infantry battalions concerned have acted so professionally on this occasion and I am very pleased by the outcome of this report. I thank the judge and I am very happy for the British Army.

[Michael Fallon]

I am grateful to my hon. Friend, who, of course, brings to this House very direct experience of the battlefield and the instant decisions that have to be taken on it. He has particular knowledge of the obligation on our soldiers—which they accept gladly—to do their very best, when the battle is over, for the wounded and for those detained.

UK Armed Forces (Iraq)

Debate between Michael Fallon and Bob Stewart

Monday 15th December 2014 Commons Chamber

[Michael Fallon]

The hon. Gentleman, who has some experience of these matters through his chairmanship of the Foreign Affairs Committee, is right that in the end ISIL can be defeated only if it is defeated in both countries, Syria and Iraq. That is why we welcome the strikes that other members of the international coalition, including the United States but also our allies in the Gulf, have undertaken against ISIL, particularly in the north of Syria. That helps to disrupt ISIL’s supply lines into Iraq. Our part—it is all that the House will allow us to do at the moment—is in Iraq, but we have plenty to do there through airstrikes, surveillance, the supply of equipment and the consideration that we are now undertaking of further training.

[Bob Stewart (Beckenham) (Con)]

When I deployed to Bosnia in 1992, it was supposedly in a non-combat role, but the chiefs of staff insisted on ensuring that I had a field surgical team with an operating theatre and three general practitioners, for several hundred people. If we deploy several hundred people into Iraq, will my right hon. Friend ensure that there are adequate medical facilities to look after our soldiers if by chance they are wounded, even though they are not in a combat role?

[Michael Fallon]

The House has the benefit of my hon. Friend’s considerable expertise in these matters, and I will certainly take up his suggestion. I emphasise that if we deploy further personnel, they will not be in the combat zones or on the front line. This will be a training effort to train Iraqi and Kurdish forces in some areas of expertise, in particular in encountering improvised explosive devices, as well as the sharpshooter tactics on which we have already been instructing.

Afghanistan

Debate between Michael Fallon and Bob Stewart

Thursday 27th November 2014 Commons Chamber

[Michael Fallon]

I hope the House will agree that I have not been triumphalist about the campaign. I believe the campaign we fought, for which so many sacrificed their lives, was certainly worth while, but I am not triumphalist about it in the least. Afghanistan remains a relatively poor country and a place in which there is still great danger, as we have learned from this morning’s events. I hope the hon. Gentleman would acknowledge that Afghanistan is a more prosperous and safer place than it was 12 or 13 years ago, and that women have a better prospect now of fuller participation in civic life than they did 10 or 13 years ago. I have noted that the drugs trade remains an increasing and enduring challenge to the current Afghan Government, and, indeed, to the international community. He is right to say that we should not be triumphalist about this campaign, but, equally, he should recognise some of the progress that has been made.

[Bob Stewart (Beckenham) (Con)]

One fifth of the Royal Navy are in the Royal Marine Commandos and one quarter of Army personnel are in infantry regiments. At airfields, force protection is achieved using the admirable Royal Air Force Regiment. Those branches of our armed forces have taken by far the highest percentage of casualties in Afghanistan—I believe the figure is over 80% or over 90%—and it is always the same in any active operation. Only by using those combat soldiers, be they in Navy, RAF or Army uniform, who do the very dangerous business of closing with the enemy, are military conflicts normally brought to a satisfactory conclusion. They truly represent the very essence of the martial risks always run by our courageous service personnel. Does my right hon. Friend agree that in any future strategic defence and security review that recognition must be placed centre stage?

[Michael Fallon]

I wholly agree with my hon. Friend, who brings to the House his own military experience, and I am sure he will continue to press that point as we approach the strategic defence and security review next year. It is important to emphasise, as he did, that all three services—the Marines, the RAF and the Army—were heavily involved in this campaign, and it is slightly invidious to pick out any individual unit as this campaign was fought by the services. However, of course he is right to say that those in the front line have borne the heaviest burden of the combat.

Oral Answers to Questions

Debate between Michael Fallon and Bob Stewart

Monday 20th October 2014 Commons Chamber

[Bob Stewart (Beckenham) (Con)]

The only way that we will militarily defeat ISIL is to face it in battle on the ground. Will my right hon. Friend say which of our allies and friends in the middle east have committed themselves to providing forces such as infantry to close with the enemy and deal with them?

[Michael Fallon]

It is our view that the advance of ISIL can only be dealt with, and that it can only be driven back to the border by, a home army of Iraqi and Kurdish forces that other countries are ready, able and willing to support, help to train, and provide with arms and ammunition. We have made it clear that neither ourselves nor the Americans will deploy our combat troops on the ground.

Growth and Infrastructure Bill

Debate between Michael Fallon and Bob Stewart

Monday 17th December 2012 Commons Chamber

[Michael Fallon]

The hon. Gentleman is right to chide me, because I have missed out that amendment. If I discover it in time, I will try to return to it.

The Government amendments form a package of comprehensive measures that will strengthen the Bill’s provisions for companies and people. They respond to important points raised during the consultation, on Second Reading and in Committee. I hope that they fulfil the undertaking I gave the shadow Secretary of State to ensure that amendments, whether or not he agrees with them, were at least produced before the Bill leaves the House.

First, amendments 22 to 28 would amend the Bill to change the name of the new status to “employee shareholder.”—[Interruption.] Hon. Members cannot have it both ways; they cannot criticise the consultation and say that we did not listen to it when we did. When organisations asked us to change the name, we did exactly that. During the consultation we received comments on the name “employee owner”. I recognise that “employee owner” might be seen as confusing in relation to the wider employee ownership agenda. It is important that we do not confuse people. The name “employee shareholder” is far better at describing the new status, as it links the concept of employment and shareholding.

Secondly, amendment 29 ensures that employee shareholders who are parents can request flexible working once they return from parental leave. The parental leave directive requires that parents should be able to request flexible working after their return from a period of parental leave. The amendment ensures that the UK will be compliant with the directive. We have decided that employee shareholders should have to make a request for flexible working within two weeks of their return. The time limit gives companies employing employee shareholders certainty about the working patterns of their work force.

Let me turn to the issue of shares and what happens to them at the end of the employment relationship, on which we sought views during our consultation. We believe that employers and employee shareholders are likely to agree sensible terms for the disposal and buy-back of shares in order to ensure that the shares have the necessary value to meet the conditions for employee-shareholder status. The Bill is drafted on that basis.

It is not the Government’s intention that employee shareholders should be left with shares that they can sell back to the company only at prices that are unfair or where the buy-back arrangements would leave the employee at a financial disadvantage if there is no other way of disposing of the shares for value. We therefore believe that it is prudent to seek a power in the Bill to allow the Government to set a minimum value for the buy-back of shares if the company and employee shareholder enter into a buy-back agreement. Amendment 30 creates that power. Let me be clear for the House that the power will be used only if it is needed to safeguard employee shareholders in the unlikely event that employers behave unscrupulously.

[Bob Stewart]

I have a simple question. If an employee shareholder wants to keep his or her shares, am I right in assuming that he or she can do so and sell them on the open market later?

[Michael Fallon]

That will depend on the particular arrangement that the company has.

Amendment 31 will provide clarity and certainty to employers and individuals who are considering accepting a position as an employee shareholder, as it spells out how shares will be valued. It aids employers who want to be certain that the contract will not be void because too few shares in value have been given. It will therefore reassure individuals that they are getting at least £2,000-worth of shares in consideration for becoming an employee shareholder.