Fire and Rehire Tactics

Mick Whitley Excerpts
Wednesday 15th June 2022

(2 years, 5 months ago)

Westminster Hall
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Mick Whitley Portrait Mick Whitley (Birkenhead) (Lab)
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It is a pleasure to serve under your chairmanship, Ms McVey. I am enormously grateful to my hon. Friend the Member for Slough (Mr Dhesi) for securing this important debate.

I should begin by declaring an interest: I am proud to call myself a lifelong trade unionist, having served both as a shopfloor convenor and, more recently, as the north-west regional secretary of Unite the union. However, in all my decades in the trade union movement, I do not think I have ever seen workers so much at the mercy of unscrupulous and uncaring bosses as they are today. I say to colleagues in this room that when we at last sweep away this tired and ailing excuse for a Government, one of our first priorities must be not only to outlaw fire and rehire, or even to establish new workers’ rights, although those are both vital; we must also unshackle the unions from decades of onerous anti-trade-union legislation, which bears so much responsibility for the parlous state of affairs we face today.

My hon. Friend the Member for Slough has set out the case against fire and rehire with characteristic eloquence, and it does not need repeating. After all, this is hardly a complex matter. Fire and rehire is wrong. It has used the spectre of the dole queue to condemn workers into accepting the most heinous attacks on their pay and working conditions. It is a form of industrial blackmail that has been happening on a massive scale throughout the pandemic, and it must be stopped. My constituents know it, especially the 130 workers at the local Wabtec site who were threatened with fire and rehire only in February. The wider public know it, with 70% of them, including 69% of Tory voters, wanting to see it made illegal. Even the Prime Minister knows it, as he said so many times from the Dispatch Box.

When the Minister rises to make his contribution, much of what we will hear will be familiar: “Fire and rehire is wrong; this Government back good employers; and every worker deserves security and dignity in the workplace.” The question now is: what is he going to do about it? Empty platitudes will not comfort the single parent who has just been told to accept a pay cut or face the sack, and nor will they clothe or feed a child in the north end of my constituency who is being forced to bear the brunt of this Tory cost of living crisis.

I warn the Minister that the act is wearing thin. The British public can see clearly now that, for all their mealy-mouthed excuses and empty pledges about introducing a statutory code of conduct, this Government have no interest whatsoever in standing up for British workers. In fact, at every stage they have given bad bosses the green light to treat their workers exactly how they please. When my hon. Friend the Member for Brent North (Barry Gardiner) came forward with a credible plan to tackle the scourge of fire and rehire, the Government Whips spun into action to ensure that his efforts were thwarted.

My message to the Minister is this: prove me wrong. Stand up today and show us that there is more to this Government than warm words and empty rhetoric. Show us that this Government are capable of mustering a shred of empathy for the millions of workers whose working lives were totally upended during the lockdowns. Prove to us that you care. Unless the Minister has come here armed with a plan to put an end to fire and rehire once and for all, my advice would be that it is better to stay silent than to confirm all our suspicions. The time for talk is over—what British workers deserve now is action.

Future Hydrogen Economy

Mick Whitley Excerpts
Tuesday 14th June 2022

(2 years, 5 months ago)

Westminster Hall
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Mick Whitley Portrait Mick Whitley (Birkenhead) (Lab)
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It is a pleasure to serve under your chairmanship, Sir Edward, and I am grateful to the hon. Member for Redcar (Jacob Young) for securing this important debate.

There was much to criticise in the Government’s energy security strategy, from its wholly unrealistic targets on new nuclear to its refusal to stand up to the nimbyism of Tory Back Benchers by making the reforms to planning law that are needed to unleash the full potential of onshore wind. At least, though, there are signs of genuine progress when it comes to hydrogen, with the UK’s hydrogen production target more than doubling to at least 10 GW by 2030. The Government’s stated commitment to a hydrogen-powered economy will no doubt come as welcome news to people living across the north-west of England and in north Wales. We are proudly home to the HyNet low-carbon industrial cluster, which by 2030 will be leading the way in carbon capture and storage technology and the production of low-carbon hydrogen. The extraordinary potential of that world-leading project was recognised last year, when it was successful in its efforts to become one of the first two carbon capture and storage clusters in the UK.

However, while the success of HyNet in our region hints at what is possible when we invest in the future of hydrogen, Ministers are yet to prove convincingly that they are capable of delivering on the promise of a hydrogen revolution, and we should not play down just how big a challenge we face. Low-carbon hydrogen remains in its infancy. If we are serious about making the UK a world leader in low-carbon hydrogen production, we must be prepared to use every resource at our disposal, including the extraordinary expertise and innovation that can be found today in businesses in every corner of the country.

That is why I am so concerned that the UK Government continue to make the regions and nations of the UK compete against one another to secure vital investment. I know that the hon. Member for Redcar took as much pride in the success of the east coast cluster last year as I did in HyNet’s, but our Scottish colleagues have every right to bemoan the lack of success of the Acorn development in north-east Scotland. Surely the time has come for the Government to accept that these projects deserve to be allowed to progress at their natural pace, rather than being held back by Ministers’ continued insistence on using a failed and entirely arbitrary sequencing process. All those projects will be essential to realising the potential of a hydrogen-powered economy, and they all deserve our support.

We also need to seriously consider whether enough is being done to support the development of green hydrogen. While it is undeniable that investing in blue hydrogen is necessary in the short to medium term, I am sure we all agree that the ultimate goal is to see our country powered by clean, green hydrogen produced from wholly renewable sources. However, I am afraid the Government are responsible for a serious lack of ambition in that space. While our neighbours in Europe invest heavily in green hydrogen production, the Government are aiming for just half of their 10 GW hydrogen power target to be produced through electrolysis. Even then, there is little evidence that sufficient progress is being made to make that target a reality.

In fact, the case for investing in green hydrogen has become all the more inarguable since the Russian invasion of Ukraine earlier this year. Putin’s appalling onslaught on that country has provided the west with important lessons on the necessity of ending our reliance on foreign energy supplies and has sent gas prices soaring, leading industry experts to conclude that it is now more affordable in Europe to produce green hydrogen than it is blue.

I urge the Minister to look at what more the Government could be doing to support green hydrogen, including considering whether grants would be a more appropriate funding mechanism for green hydrogen than the contracts for difference scheme. Too often before, we have seen the Prime Minister make grand pronouncements about the green transition but failed miserably to follow up with meaningful action. That must not be allowed to happen again. It is time for the Government to prove that they are able to make the promise of a hydrogen-powered economy a reality.

Russian Oil Import Ban

Mick Whitley Excerpts
Wednesday 9th March 2022

(2 years, 8 months ago)

Commons Chamber
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Kwasi Kwarteng Portrait Kwasi Kwarteng
- Hansard - - - Excerpts

My right hon. Friend raises a particularly important point. We had a discussion at the IEA ministerial only last week where we all agreed as a collective to release our stock. That was an American initiative that we supported. Clearly, we need to work as an international community to ensure we can provide enough supply to dampen the increase in prices that we are seeing.

Mick Whitley Portrait Mick Whitley (Birkenhead) (Lab)
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I welcome the spirit of these plans, but I urge the Government to act even faster. Russian gas and oil constitutes just a tiny fraction of the UK’s energy mix and we must break this last lifeline to the Putin regime as soon as we can. I am also deeply concerned to hear Government Members call for a resumption of fracking, which would be a betrayal of the commitments we made to the world in Glasgow just five months ago. Will the Secretary of State today commit to ruling out further investment in fossil fuels and instead pledge his Department’s support for an ambitious new green deal and wide-ranging investments in renewables, including the Mersey tidal project, so that we can finally set ourselves on the path of true energy independence?

Storm Eunice

Mick Whitley Excerpts
Monday 21st February 2022

(2 years, 9 months ago)

Commons Chamber
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Kwasi Kwarteng Portrait Kwasi Kwarteng
- Hansard - - - Excerpts

My hon. Friend raises an important point. It is heartening to see him re-engaging with the House in such a dynamic way. He was a fabulous Whip—firm but gentle—and it is good to see him engaging on this issue. He will know that we engage with the power companies all the time; I have spoken to these people, including the CEOs, and they have given certain commitments. This time, they have responded very quickly. We had issues last time, but they have learnt the lessons from that. I am very happy to talk to him about how we are putting their feet to the fire on their promises and making sure that they can deliver on those. They made certain commitments this week and I am looking forward to seeing them making sure that they deliver on them.

Mick Whitley Portrait Mick Whitley (Birkenhead) (Lab)
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May I add my condolences about the people who died during these storms? Yesterday, hundreds of people in the north-west were forced to flee their homes as rivers burst their banks, and thousands more households remain without heating or electricity. Although Storms Eunice and Franklin may not be directly linked to global heating, there is absolutely no doubt that the impact of these kinds of extreme weather events will become all the more destructive as the climate crisis intensifies. Yet Tory Back Benchers are still plotting to deal a hammer blow to hard-won progress on climate, lining up the net zero agenda as the latest target in their never-ending culture war. Does the Secretary of State agree that recent days have demonstrated the importance of not only investing more in climate resilience measures, but going further and faster in decarbonising our economy?

Kwasi Kwarteng Portrait Kwasi Kwarteng
- Hansard - - - Excerpts

The hon. Gentleman will know that I have nothing but good will to all my colleagues on the Government Benches, and we have a healthy debate about many matters of public policy. He will also know that we are 100% committed to the net zero strategy, which I was told by someone who is not even a resident of the UK was a world-beating document. I have announced that we have increased our financial commitment to net zero more than any other Government, and we want to work with everyone across the House to fight the challenge of climate change.

Oil and Gas Producers: Windfall Tax

Mick Whitley Excerpts
Tuesday 1st February 2022

(2 years, 9 months ago)

Commons Chamber
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Mick Whitley Portrait Mick Whitley (Birkenhead) (Lab)
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I applaud my right hon. Friend the Member for Doncaster North (Edward Miliband), the shadow Secretary of State for climate change and net zero, for demonstrating the strong leadership and breadth of vision that is so sorely lacking on the Government Benches. While Ministers issue desperate excuses from the Dispatch Box for their lack of action, the Labour party has today put forward a fully costed package of proposals that would provide millions of UK households with much needed support. By axing VAT on domestic energy bills, ensuring that no domestic consumer is forced to cover the cost of supplier failure and providing support for those most in need, we can slash energy bills by at least £200. In the midst of this Tory cost of living crisis, that is the difference between just about getting by and deepest destitution.

As people in my constituency bear the brunt of this unprecedented crisis, oil and gas companies are set to report near record profits, with private shareholders cashing in on soaring wholesale energy prices.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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Will the hon. Member give way?

Mick Whitley Portrait Mick Whitley
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No—[Interruption.] I am sorry.

Even so, that is not enough for this Cabinet of millionaires. In fact, last month, the Education Secretary had the temerity to take to the airwaves and plead poverty on behalf of the fossil fuel giants, saying that they were struggling enough already. This morning, when my hon. Friend the Member for Brighton, Kemptown (Lloyd Russell-Moyle) challenged the Chancellor to put the interests of ordinary people before those of the oil and gas companies, the Chancellor made it clear exactly whose side he was on. Today, Conservative Members have a simple choice: they can either insist that the fossil fuel giants step up and accept responsibility for a crisis from which they have profited so handsomely, or they can continue to turn a blind eye to the immense human suffering unfolding not just in my constituency but in theirs, as they have throughout this long and bitter winter.

Labour is offering the Government the chance to right their failure to prevent the crisis. We know from the Prime Minister’s grotesque performance in the House yesterday that the word “responsibility” is entirely missing from the Conservative party’s vocabulary, but, as recent research by Carbon Brief demonstrates, had successive Conservative Governments not taken a wrecking ball to the zero-carbon homes standard subsidies for onshore wind and spending on essential energy-efficient measures, household bills would be £2.5 billion cheaper than they are today.

With the greatest respect to my good and honourable Friends on the Front Bench, I am convinced that we must be even more muscular in our response to the crisis. At the moment, the energy sector is simply not fit for purpose. Costs for consumers are far too high, investment in green energy is wholly inadequate and we remain dangerously dependent on volatile foreign energy supplies. We learnt last week that extraordinary amounts of UK gas were exported in autumn and winter, even as rising costs decimated hard-working families’ standard of living and hit small businesses’ bottom lines. Our energy system must always put ordinary people’s interests before those of private profits. Confronted with this historic crisis, we must surely accept that public ownership is the only way forward.

We must not forget that the public are watching. They will remember who stood up for them at this terrible time and they will never forget those who looked away. I hope that Conservative Members will reflect on that before walking through the voting Lobby today.

Covid-19: Requirements for Employees to be Vaccinated

Mick Whitley Excerpts
Monday 24th January 2022

(2 years, 10 months ago)

Westminster Hall
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Mick Whitley Portrait Mick Whitley (Birkenhead) (Lab)
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It is a privilege to serve under your chairmanship, Mr Paisley. I thank the hon. Member for Linlithgow and East Falkirk (Martyn Day) for introducing this debate and for making his case with such eloquence. I also draw attention to my entry in the Register of Members’ Financial Interests.

I begin by acknowledging the immense debt of gratitude that I and all my constituents owe to Dr Mantgani and his Birkenhead vaccination team. Throughout the pandemic, they have consistently outperformed all other teams in the north-west, and even today, from their base in the Birkenhead medical centre, they continue to work tirelessly to encourage the vaccine hesitant to come forward and have their first jab. The vaccine remains the most powerful weapon that we have in the long fight against covid, and I implore any of my constituents who have not yet had their first jab to get it as soon as possible, without fear of judgment or ridicule.

However, as the Government start speaking of a future beyond covid restrictions, we must confront the uncomfortable fact that many people in the country still refuse to get vaccinated. For those of us who have proudly had our boosters, their reasons may sometimes seem unfathomable. Some have fallen prey to the online conspiracy theories and scare stories that the tech giants have failed miserably to stamp out, some have legitimate health concerns or suffer from deep-seated phobias, and others distrust established authority, with varying levels of justification. All of them deserve to be treated with compassion—and so, as we ask ourselves whether employers should be allowed to make vaccination a condition of employment, my answer is a loud and resounding no.

The recent vote to introduce a vaccination mandate in the NHS highlights some of the issues that we face. To defy the party Whip is never an easy decision, but I voted against that motion, and resigned from the Front Bench in the process, because I could not in good conscience condemn so many of our healthcare heroes to the dole queue. Now, 80,000 healthcare heroes face the grim prospect of unemployment in the midst of a once-in-a-generation cost-of-living crisis.

Experts were quick to make their objections known. The Trades Union Congress warns that without a delay to its implementation, the vaccine mandate could compound an already acute staffing shortage and lead to a “staffing nightmare”. The Department of Health and Social Care’s own equality impact assessment makes it clear that black, Asian and minority ethnic workers, young workers and women are likely to be disproportionately affected. Meanwhile, the Government seem to have run roughshod over the concerns of the trade unions in their haste to drive through the policy.

NHS staff need only look to the care sector to see the consequences of enforcing such a mandate. Following the introduction of a “no jab, no job” policy in care homes last summer, many dedicated workers have been forced out of the profession they loved. Unison is warning of a “catastrophic” staffing crisis in a sector that was already in desperate need of no fewer than 100,000 additional staff.

Of course, service users have every right to feel safe in their hospitals and care homes. Every effort must be made to protect them and to convince those who care for them of the need to get a jab. But we must never forget that it was only two years ago that these very same health and care workers were asked to enter clinical settings that the Government had so utterly failed to make safe. Nor should we ignore the far more fundamental role that shortages of PPE, tests and staff continue to play in jeopardising patient safety. We should never stop holding the Government to account for their monumental failure to engage with the alternative and effective safety measures that have been set out by the trade unions.

It is not just clinical settings that have been affected. In the last few weeks alone, a score of major retailers, including IKEA, Next and Ocado, have announced that unvaccinated workers will be forced to survive on the pittance that is statutory sick pay should they be forced to self-isolate. What a shame. It is not safety that has motivated this decision; it is profit, pure and simple.

I urge the Minister to consider the implications of the Government’s actions. I fear that this draconian and punitive strategy will do nothing but harden the minds and strengthen the convictions of the vaccine hesitant. The only way to win minds and get jabs in arms is through compassion, engagement and understanding. That will do far more than vaccine mandates ever will in bringing us closer to winning the long war on covid.

Taylor Review of Modern Working Practices

Mick Whitley Excerpts
Wednesday 19th January 2022

(2 years, 10 months ago)

Westminster Hall
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Mick Whitley Portrait Mick Whitley (Birkenhead) (Lab)
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It is a privilege to serve under your chairmanship, Mrs Cummins, and I thank my good and hon. Friend the Member for Slough (Mr Dhesi) for having secured this important debate. I also draw attention to my entry in the Register of Members’ Financial Interests.

The employment landscape has been fundamentally transformed since I first left school aged 15. The shipyards, factories and foundries that once dominated our skyline are all but gone, and today we inhabit a world dominated by Amazon warehouses and artificial intelligence. Gone, too, is the right to well-paid, secure and dignified employment that my generation took for granted. So I welcome the Taylor review’s recognition of the need to reform existing working practices. I am also glad to see it call for equal pay for agency staff and sick leave for low-paid workers, which I have no doubt would be warmly welcomed by the over a quarter of a million workers who were forced to self-isolate with inadequate sick pay, or even no sick pay, this December.

But I am afraid that the scale of the challenge before us has not been fully grasped. At a time when millions of people are trapped in a vicious cycle of zero-hours contracts and poverty pay, bold and transformative change is needed: tinkering around the edges simply will not cut it. As a veteran of the labour movement, I know that there is no more powerful vehicle for improving the lives of working people than the unions. Time and time again, research has found that workers in countries with higher trade union density are better paid, happier and more secure in the workplace, but this report fails to afford trade unions the vital role that they must play in building a Britain that works for all. There is no acknowledgment of how reinstating sectoral collective bargaining would help to drive up wages and improve the quality of work. There is no recognition of how trade unions can facilitate the negotiation of fairer working conditions, including a right to flexible working. There is also not a single mention of the urgent need to repeal the draconian Trade Union Act 2016, which has done so much to curtail the ability of unions to stand up for their members.

There are other issues that need addressing. In response to the plague of bogus self-employment, the Taylor review offers a number of solutions, but none goes far enough in guaranteeing workers the security they deserve. As such, I urge the Minister to adopt the Labour party’s call to abolish the three-tier system altogether and introduce a single, universal employment status that would grant every worker in the country fundamental rights from day one.

Similarly, when it comes to enforcing employment rights, this report falls short of recommending the establishment of an independent labour organisation with the statutory power to stand up to bad bosses and enforce employment rights and collective agreements, as called for in the Institute of Employment Rights manifesto for labour law. At a time when covid has highlighted the gross inadequacy of the UK’s rate of statutory sick pay, I am afraid that the recommendation for SSP to be accrued based on length of service risks leaving new starters out in the cold if they fall ill.

I understand that the Government plan to adopt the Taylor review as the basis of their future reform of employment law. I look forward to the Minister telling us about those plans in more detail. Any measures, however limited, that give workers greater protections in the workplace ought to be welcomed, but after all that UK workers have gone through to get us through to covid, surely they deserve better. The Government must go further, be bolder and deliver more for the millions of working people struggling to get by in our country.

--- Later in debate ---
Paul Scully Portrait Paul Scully
- Hansard - - - Excerpts

I will come to what we have done and what we intend to do in just a second. I highlight the words of my right hon. Friend the Member for Basingstoke (Mrs Miller): quite a lot has happened since. She is right to say that the Government have been busy and that parliamentary time has been precious, but the nature of work itself has significantly changed since that point.

The hon. Member for Aberdeen North (Kirsty Blackman) spoke about the right to request flexible working from day one. She is right to focus in on that. It is a key area, not just for the idea of flexible working, but for people who have caring and parental responsibilities and other pressures on their life outside work, so it can have a significant impact on other areas that we want to tackle. We have been able to take the opportunity throughout the pandemic to reflect on the changing nature of work, which will extend beyond the pandemic, as we move towards endemic covid and a sense of normality, and being able to reflect on what flexible working might look like at that stage, rather than what it did look like and what our ambitions were, back in 2016. We want to make sure that we can take the necessary steps for our labour market.

Mick Whitley Portrait Mick Whitley
- Hansard - -

We tend to blame everything on the pandemic. Zero-hours contracts were here before the pandemic. All that has happened is massive exploitation of zero-hours contracts. The Government cannot turn a blind eye and turn round and say, “It’s the pandemic”, because it is not.

Paul Scully Portrait Paul Scully
- Hansard - - - Excerpts

Actually, what we are saying about flexible working is not about blaming the pandemic. Work has changed. The hon. Gentleman talks about zero-hours contracts—they have changed somewhat as well. The flexibility of the workforce—the people who have been feeding us, caring for us and moving us around—has really shone a light on that.

Commercial Rent (Coronavirus) Bill (Fourth sitting)

Mick Whitley Excerpts
Paul Scully Portrait Paul Scully
- Hansard - - - Excerpts

Although the applicant making a reference to arbitration must submit a formal proposal, there is the option for the respondent to also submit a formal proposal. Both parties also have the option to submit revised proposals. In addition, some cases may be more complex than others, and the arbitrator may need to ask for further information. The Bill therefore provides that the arbitrator must make the award as soon as reasonably practicable, which will allow for any additional work required because of the complexity of the case. I assure the hon. Lady that we are indeed hoping and expecting such cases to be resolved within a matter of months rather than, as she described in relation to the pubs code, anywhere approaching a year.

When there is a long period, there is a clear date on which the hearing concludes and evidence has been given, so that is why the Bill provides that the arbitrator has 14 days from the day on which the hearing concludes to issue such an award. Some cases that go to oral hearings may have added complexities, so the arbitrator may need more than 14 days to consider arguments, facts and evidence that have arisen. There is a discretion there for the arbitrator to extend the time limit if they consider that it would be reasonable, in all circumstances.

Mick Whitley Portrait Mick Whitley (Birkenhead) (Lab)
- Hansard - -

Will there will be any retrospective payments? In the bundle of evidence some companies submitted, they say that they have been pressed for their outstanding debt. If this Bill goes through, does that mean that any retrospective payments will be made by the arbitrator?

Paul Scully Portrait Paul Scully
- Hansard - - - Excerpts

I will write to the hon. Gentleman if I am getting this wrong, but I think the arbitrator can take the whole situation into account, including what has been paid and the evidence that has been given, when making the final judgment. I will write to the hon. Gentleman if that is not as full an answer as he wants.

Question put and agreed to.

Clause 17 accordingly ordered to stand part of the Bill.

Clause 18

Publication of award

Question proposed, That the clause stand part of the Bill.

Commercial Rent (Coronavirus) Bill (Second sitting)

Mick Whitley Excerpts
None Portrait The Chair
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Thank you. Mick Whitley.

Mick Whitley Portrait Mick Whitley (Birkenhead) (Lab)
- Hansard - -

Good afternoon, panel. I think we met last week, didn’t we?

Andrew Goodacre: We did.

Mick Whitley Portrait Mick Whitley
- Hansard - -

Q 44 Many businesses continue to experience significant covid-related disruption to their businesses, even following the end of the lockdown restrictions. Do you think that the protected period for rent debts should be extended, and if so, for how long?

Andrew Goodacre: The period we have is about right, actually. Part of the challenge is in scope of what is covered here. Some businesses that have been able to operate throughout the pandemic—essential businesses—but have been in the wrong location have suffered badly with trade. That is still ongoing. Even though businesses are open, if they are in a location near a travel hub or something, footfall will be considerably lower than they are used to—certainly pre-pandemic levels. There is an argument that those businesses are not being protected enough because of that.

Mick Whitley Portrait Mick Whitley
- Hansard - -

Q Do other witnesses have anything to add?

Jack Shakespeare: Absolutely. I would echo that. The extension and the timescale seem about right; that is the message we are getting from our members. Each sector has its own characteristics. Our sector has a unique recovery curve, in that it is largely subscription focused. Recovery does not cover the cost of service straight away. That impacts recovery. The extended period of time is welcome. I am sure that we will come back to it today, but a guiding principle that needs to sit at the heart of this process is the message of sharing the burden. This is clearly a collective problem that needs a collective solution.

Martin McTague: I think it was about right when we first started discussing this, but omicron has changed all that. It is clear that we are now into a lot more uncertainty. It would be nice to have the flexibility to be able to move that date to respond to what seems to be an ever-changing virus.

Seema Malhotra Portrait Seema Malhotra (Feltham and Heston) (Lab/Co-op)
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Q Thank you for coming in to give evidence. Perhaps I could start with Mr McTague. On the 10 November cut-off date, we have had some evidence of concerns about landlords who have not engaged with their tenants, and who may have ignored the code and started to apply for court judgments to pay the full rental arrears. Those who started proceedings before 10 November could be in a more advantageous position than those who played it fair. Have you come across that at all through the FSB, and what is your view about whether there should be a retrospective change to the 10 November date?

Martin McTague: Around the beginning of November, most landlord-tenant arrangements—probably close to 90%—had settled, but the hard-core 10% had got into an acrimonious stand-off. We engaged with the Department for Business, Energy and Industrial Strategy to try to find a way in which those more acrimonious relationships could be dealt with. As for the cut-off date, I realise that it will leave some people on the wrong side of it, but I think that it was about right when it was chosen.

Andrew Goodacre: On the cut-off date, you have to choose a date. There is never a good time, from that point of view. It comes back to an understanding of what negotiations were taking place beforehand, and how they were being managed. Martin referred to a hard-core 10%—we are probably hearing about 15% to 20%. There is a hard core of people on both sides who seem unwilling to reach a negotiation. It would be good to include at the arbitration point an insight into what negotiations and actions were taking place beforehand, and whether those actions were reasonable in the circumstances.

The arbitrator has to decide how to resolve the debt issue. We have heard stories of landlords seeking side agreements or even being willing to write off a level of debt if the tenant gave up their secured tenancy. That kind of negotiation is going on as well. Is that fair? I do not know, because the security may be worth a lot more than half the rental debt, but it is not explained properly. If evidence of what was being said before the ninth can be put forward as part of the arbitration process, that may be a happy halfway house.

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Paul Scully Portrait Paul Scully
- Hansard - - - Excerpts

Q Jack and Andrew, do you have any other reflections on the code?

Andrew Goodacre: This code is so much stronger than the previous code in 2020. We are moving in the right direction. It links into your earlier question about changing behaviours, and the code has been instrumental in that. On what would enhance the code, I appreciate that the information is not entirely available yet, but it is about who will be arbitrating, the costs of that arbitration and the decisions around the viability, so that people get to know as early as possible what they need to do to submit, if they feel that they will end up in that situation. Preparing for arbitration will be quite scary to some people—the mere thought of putting all that information together. As soon as we can release what they need to have recorded and prepared, the earlier they can start doing it. You do not want to try to collate all the information with two months to go on the process.

Jack Shakespeare: I have nothing to add to that.

Mick Whitley Portrait Mick Whitley
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Q Are you concerned that the potential costs of arbitration might put business tenants, especially small and independent businesses, off engaging in the arbitration process, thereby leading to their closure?

Martin McTague: It might do, but the alternative is that they would have to take legal action, which is likely to be much more expensive and protracted. It is not an ideal solution, but it is certainly a step in the right direction.

Andrew Goodacre: Yes, it could do. If you were looking at costs in the hundreds instead of the thousands that would obviously be better. You have to put it in context. As I think one of your colleagues said, next year an awful lot of cost increases are coming through to business, whether it is the national minimum wage or energy costs, which have tripled for many businesses. Suddenly, whether it is £1,000 or £2,000, it looks like a lot of money. That may lead to a better negotiation and solution before you get to arbitration, but it plays to the landlord to play the waiting game at that point in terms of initiating the arbitration. That is the threat of it.

Jack Shakespeare: To go back to one of Andrew’s last points, as much foresight and clarity on that up front would be beneficial, so that people can make informed decisions on how they go forward.

None Portrait The Chair
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Given that there are no further questions, I thank the witnesses for their evidence. That brings us to the end of today’s oral evidence session. The Committee will meet again on Thursday at 11.30 am in Committee Room 10 to begin line-by-line consideration of the Bill.

Ordered, That further consideration be now adjourned. —(Felicity Buchan.)

Storm Arwen

Mick Whitley Excerpts
Wednesday 1st December 2021

(2 years, 11 months ago)

Commons Chamber
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Kwasi Kwarteng Portrait Kwasi Kwarteng
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My hon. Friend is absolutely right to raise the infrastructure challenges that we are experiencing in extreme weather conditions, which will probably be more frequent given the climate change to which he alluded. He will appreciate that, essentially, a whole new infrastructure not only takes time, but means paying considerable amounts of money, and in the meantime we have to deal with those extreme weather events, so the local resilience forums are very important. He is quite right to say that they do not solve the infrastructure problem long-term, but it is really important that they can act nimbly, because we can improve our infrastructure standards, but we are not simply going to abolish the threat of extreme weather conditions.

Mick Whitley Portrait Mick Whitley (Birkenhead) (Lab)
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The immense disruption caused by Storm Arwen over the weekend demonstrated how vulnerable much of the country is to extreme weather events. Recently, businesses and residents in my constituency were devastated by extensive flooding following torrential rainfall in the space of just a couple of hours. With climate breakdown set to make such events a more frequent occurrence, can the Secretary of State inform the House what steps his Department will be taking in conjunction with his colleagues at the Department for Environment, Food and Rural Affairs to improve the resilience of communities such as Birkenhead to extreme weather?

Kwasi Kwarteng Portrait Kwasi Kwarteng
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The hon. Member raises an important point, and he also alludes to the nature of the problem. BEIS is responsible for electricity and DEFRA has been particularly effective in responding to flooding, and he is quite right to suggest that both our Departments are working together, as we do with other colleagues across Government, and are more and more focused on the effects of climate change—and that is what it is—on our infrastructure and our people. We are working together to try to solve that general problem.