(7 years, 11 months ago)
Commons ChamberOne of the problems we uncovered through the evidence we gathered was that many doctors felt as disempowered as the hon. Lady implies, owing to a lack of training and, perhaps, continuous professional development in this area. However, I should say in response to her intervention that there were also some people who said that whenever they went to the doctor, even if it was somebody who had just a little knowledge, their transgender identity was always at the heart of the response they got from the NHS. We need to make sure that doctors understand the health issues transgender people have to deal with, but also acknowledge that not every health condition they have will be related to their trans identity. That is an important point to make at this juncture.
A constituent of mine came across a particular problem because she had reassignment surgery before the Gender Recognition Act 2004 came into effect. Fifteen years later, when she tried to get a gender reassignment certificate, she was asked for a great deal of information that was no longer available. The surgeon who had performed the operation was dead, the records were no longer available, and she had a terrible time trying to get the information. Surely that is unfair.
The hon. Gentleman highlights one of many problems with the Gender Recognition Act. That is why our Committee asked for an urgent review of it, and I am heartened to note that the Government have indicated they understand the sort of problem he outlined, and many others as well, and the very medicalised nature of the process people are asked to go through. That process is talking about something very personal, which is an individual’s identity. It is not something I would particularly like to be discussed by medics and lawyers in some room and in a very technical and quasi-judicial way. One of the recommendations of our report was self-declaration in that respect.
The other part of the Government’s response that I was heartened to read, as it is important for us in terms of planning for the future, was about the need to get the data right in this regard by better measuring the number of trans people in the UK, and also better monitoring people’s attitudes. If we are really going to tackle inequality in this area and really ensure trans people are able to enjoy the equality we all voted for in the Equality Act 2010, we need to make sure that we take the public with us and that there is the cultural change that is needed.
Perhaps today in her response, the Minister—who has been extremely generous with her time, thinking about these issues and talking to the Committee about them—will tell the House what issues in the 2011 action plan remain unaddressed, and what the status of the new plan is—when will it be published and how will the Government monitor its implementation? If we start to see this sort of certainty, trans people will have more confidence in the fact that not just the Government but public services are starting to get to grips with the issues they have to tackle on a daily basis.
The Gender Recognition Act was pioneering in its time. We criticised it slightly a few moments ago, but it was put on a pedestal as being pioneering—albeit a little late for the constituent of the hon. Member for Angus (Mike Weir). Now it needs updating, however. In particular, concern was voiced to us about the medicalised, quasi-judicial application process that is used. The Government have undertaken to conduct a review of the Act, and perhaps to de-medicalise the process and, as the previous Equalities Minister, my right hon. Friend the Member for Loughborough (Nicky Morgan), said, to
“overturn an outdated system and ensure the transgender person’s needs are at the heart of the process.”
Again, I was very heartened by that very positive response from the then Equalities Minister in July of this year.
Where is that review at the moment? Has the process been streamlined and de-medicalised, as indicated in the response to our report? Will the Government be considering again the Committee’s recommendations around the principle of self-declaration, which I believe would again put this country at the forefront of trans rights on the global stage, so that again we will be leading, as I believe we would like to as a country, on all LGBT rights?
Finally, I want to talk about primary legislation underpinning the rights of trans people. In our report, the Select Committee made the simple recommendation to change the terminology in the Equality Act by making the protected characteristic “gender identity” rather than “gender reassignment”. The Committee was concerned that, based on the evidence and on the legal advice that we took, the current wording does not adequately protect wider categories of people. It provides for trans people in the process of undergoing gender reassignment, but not the many people who may not have clear legal protection—those who do not live full-time in their preferred gender, non-binary or intersex people, or perhaps children whose gender identity is less well-developed than that of an adult.
The Equality and Human Rights Commission has recommended that a broader definition would be clearer and give more certainty. The current wording is outdated and confusing, and we believe that our proposed change would be in line with the Yogyakarta principles and with resolution 2048 of the Parliamentary Assembly of the Council of Europe. The Government have not yet accepted this recommendation, but the Minister has undertaken to keep it under review. Will she update the House today and look carefully at the Bill that I have just presented to the House with the support of other hon. Members?
To get things right, we need the right laws, the right strategy and the right culture. The report we published in December 2015 revealed serious shortcomings in legal protection for trans people and in the delivery of public services. We need to have a clear direction of travel. Our Committee has set out more than 70 recommendations, and the Government have undertaken a considerable body of work as a result of that. I hope that today’s debate will give a flavour of their direction of travel, in order to provide clear optimism for trans people in this country. I hope that it will also remind Ministers of the human cost of not taking the actions that are needed.
(8 years, 11 months ago)
Commons ChamberI am not going to repeat all the things I have said about our continuing investment. With £900 million of taxpayers’ money going into aerospace, we absolutely understand and recognise its significance. It is very easy to put on labels, but it does not matter what label we put on—it is about delivery, and that is what this Government continue to do.
11. What funding his Department plans to allocate to research and development in the energy sector over the next five years.
As my right hon. Friend the Chancellor demonstrated in the autumn statement, the Government put investment in R and D as the top priority in our long-term economic plan. I am delighted, as I am sure that Opposition Members will be, by the announcement on ring-fencing the science budget, with £6.9 billion on science capital and £4.7 billion on revenue. In addition, the Prime Minister recently announced a 50% increase in our funding of climate finance, with £400 million over this Parliament, and we have just announced £60 million going into the energy research accelerator.
Launching an investment coalition in Paris at the weekend, Bill Gates made the point that if we are to avoid global warming we have to move at full speed in developing new renewable energy technologies. To ensure that the UK plays its part, what progress have Ministers made in ensuring that the UK Green Investment Bank receives the full £3.8 billion of capitalisation and maintains its green mandate, irrespective of the future of the Government’s stake in the bank?
I am sure that the hon. Gentleman will welcome the Prime Minister’s announcement of £400 million extra funding. The Green Investment Bank has played the role that we envisaged in supporting the green economy, which is not an allotment economy—it now constitutes 96,000 businesses with 230,000 employees and a turnover of £45 billion for the British economy and £4.8 billion of exports. By giving the Green Investment Bank the freedom to raise money on the capital markets, we will generate more money for the green economy, which is growing under this Government like never before.
(10 years ago)
Commons ChamberI entirely agree. It is important for us to provide training opportunities through a range of organisations, including social enterprises, businesses and charities, as well as institutional further education colleges and the like. It is particularly important for us to provide training that is linked to work, either through the new programme of traineeships developed by my predecessor, who is now Minister for Business and Enterprise, or through apprenticeships. If there is anything that I can do to help any specific institution in the hon. Gentleman’s constituency, I shall be delighted to try to do it.
Will the Minister speak to his colleagues at the Department for Work and Pensions about helping apprentices who are made redundant when a firm fails? A local training provider in my constituency has taken on apprentices who are in that position and is helping them through it, but is experiencing difficulties and is unable to give them any income. There seems to be a gap in the system.
I met the Minister for Employment, my right hon. Friend the Member for Wirral West (Esther McVey), only yesterday to discuss a range of issues, and I should be happy to discuss that issue with her as well. There needs to be tight co-ordination between our two Departments, and we try to achieve it.
Yesterday Royal Mail said again that there was a danger to the universal service obligation from increased competition. That is very worrying, especially to people in rural areas. Will the Secretary of State press the regulator to take stronger action to look at the state of competition and take appropriate action to ensure that the USO is not put in danger?
I do not press regulators on this or other issues. The simple truth is that the USO is embodied in law. It would have to be changed by both Houses of Parliament. Royal Mail was put in the private sector to enable it to compete, and although it was little observed at the time, for the first time in decades it has been able to raise hundreds of millions of pounds in the bond market to reinvest. There is a success story there.
(10 years, 4 months ago)
Commons ChamberI fully support the motion. From what the hon. Member for North Ayrshire and Arran (Katy Clark) said, the Greater London authority’s motion also sounds interesting and worthy of support.
The universal service obligation is vital to rural areas of Scotland. It is crucial not only for those who receive mail, but for the many small businesses that rely on the service to get their products to customers. The internet is a two-way street, but only if there is a reliable and cost-effective postal service. We are now told that that service is in imminent danger.
We should not be in this position. The danger to the universal service following the extension of competition, the privatisation of Royal Mail and the Postal Services Act 2011 was entirely predictable and, indeed, predicted. The only surprise is that it is happening so soon. Royal Mail cannot escape all blame because, when the Act was going through this House, we were told repeatedly by the Government and Royal Mail that it would not endanger the universal service. They were adamant that the modernisation project would keep prices down and protect the USO. They said that the existence of the USO was a huge plus for the business.
Less than a year after the flotation, Royal Mail is finding that the brave new world of private enterprise is full of difficulties. The company wants Ofcom to undertake an urgent review of the USO because it cannot guarantee that it will remain sustainable due to the impact of privatisation and, in particular, the expansion of TNT, which the hon. Member for North Ayrshire and Arran described in great detail that I will not repeat. Other competitors are cherry-picking the most profitable routes, which is putting pressure on Royal Mail and on its rural routes. That is a far cry from the claim when it was privatised that the universal service was a huge plus for Royal Mail, as it was the only company that guaranteed that it would deliver to every address.
Ofcom’s role, as set out in the 2011 Act, is bound by conditions that mean that, even if it takes on board Royal Mail’s request to look at the operation of the USO, there is no guarantee that it will take urgent action to tackle the problem. Royal Mail is seeking a review by Ofcom under section 45 of the Act, which is headed, “Fairness of bearing burden of universal service obligations”. I remind Members that the options that Ofcom has under those provisions are very limited. The first limitation is that it will inevitably take time for Ofcom to undertake the necessarily detailed review of the universal service. If Royal Mail is correct about the impact that TNT is having, do we have time to wait for Ofcom to decide whether to undertake the review, come to a conclusion and bring in its changes?
On that point, it would obviously make sense that the sooner it starts, the sooner it will be able to finish the review.
I do not disagree with that; in fact, I am very keen for it to start, but even with the best will in the world, given previous investigations of this nature, it will take time, and time may be what we do not have. Does anyone really believe that it will be done in a few months? What will be the state of the USO if it takes 18 months or even two years to undertake such a review? What will Ofcom do? Does anyone in the Chamber really believe that the Government would go to competitor companies and say, “You cannot continue to expand” or “You must contract”? I very much doubt that.
It seems to me that its options under the 2011 Act are constrained. Under section 8—no one has mentioned this point so far—the Government could review the minimum requirements in terms of section 33, and therefore reduce the minimum requirements of the service. We should remember that under section 29 of the Act, at all times when securing the universal service Ofcom must also take into account
“the need for the provision of a universal postal service to be financially sustainable,”.
Does that not also open the door, for example, to raising the price of the universal service? I have previously made the point that with the abandonment of price controls over all other services, second-class post is now the only truly universal service, and even that could be at risk under the proposals. Many small businesses have already seen a rise in costs since privatisation, with an increase in first-class costs and small package rates.
The hon. Member for Ealing North (Stephen Pound) recently sponsored a meeting in this House at which Royal Mail presented its case for a review of the USO. I asked it directly whether it was seeking a diminution of the USO, but it denied that. I cannot say that I entirely believed that, but we must be aware that it is one possible outcome of a review, whether or not that is the company’s intention.
I am not sure that the present Government are sane political parties, but I will let that one go.
The Government will rightly point out that the 2011 Act enshrines the USO in law for the first time. That is true, but during the passage of the Act many of us asked specifically what will happen if the company comes back and says that it can no longer sustain the service. Royal Mail has been privatised, investors have made their profits, and we may well be about to explore the answer to that question.
When I asked the current Defence Secretary whether the USO could be changed by statutory instrument, he said that was not the case. He later wrote to me saying that it was the case.
The hon. Gentleman is right, and as another Member said at that time—I think it was the Minister—such a measure could be rushed through in a wee room upstairs very quickly. That is true, and that is the danger we are now in with the whole process. Will the Minister make it abundantly clear today that protection of the USO was an essential condition of that privatisation, and that whatever the outcome of the review she will not agree to any diminution of the USO? As I said, that could be an outcome of this process, and sometimes we should beware of what we wish for.
The hon. Gentleman is making an incredibly powerful case about the potential consequences on the USO that Ofcom may bring forward. Will he confirm that a statutory instrument upstairs would not necessarily be a full vote of both Houses? It would be a statutory instrument that goes through both Houses.
The hon. Gentleman is correct, and it is interesting that he has taken the trouble to inform the House of that fact this afternoon. I thank him for that, but I point out that the hon. Member for Angus (Mr Weir) has the Floor and will continue his speech.
Thank you, Madam Deputy Speaker. What else could Ofcom do? It could look at section 46 of the 2011 Act, “Contributions for meeting burden”, which we have already discussed, and recommend that all competitors contribute to the cost of running the universal service. As Ofcom has pointed out, however, it is debarred from doing that for a period of five years unless the Minister specifically directs it. Even if the Minister were to direct it, how long would it take to set up such a system, set out the level of contribution, and get it up and running? If the universal service is now in such a condition that Royal Mail is worried about its continuation, do we have time to implement such proposals?
Under the Act, the Government might try to find a company other than Royal Mail that is willing to take on the universal service, but how many of us think that is likely given what we already know about the operation of other companies in the postal market? They are cherry-picking the profitable services, not building a system to compete with Royal Mail throughout the country.
Royal Mail suggests that the way forward is to introduce general universal service conditions that would impose conditions on its competitors to prevent them from cherry-picking urban routes, but also mean that they have to deliver to a much wider geographical area. Again, I leave it to Members to decide whether that is likely, but, even if it is, how long will it take to do that when we are told that we are facing an imminent crisis?
Does the hon. Gentleman acknowledge that the biggest threat to the universal service obligation for Scotland is independence, and will he tell the House exactly what a universal service obligation would mean in an independent Scotland? What would it cost to post something from Carlisle to Dumfries?
The right hon. Gentleman is being typically ridiculous. The universal service is under threat not because of Scottish independence but because of what is happening in this House. It is under threat now—that is what Royal Mail is saying to us—and it is privatisation, supported by him and his colleagues, that is leading to that. Under independence we have committed to bring Royal Mail operations in Scotland back under public ownership, where they should have stayed, and ensure that there is a Royal Mail service in Scotland. If we stay in the Union, we are told not only that we may not have a universal service, but that prices may go up and things may disappear. The right hon. Gentleman should consider a bit more before making such daft interventions.
Order. The hon. Gentleman is not taking interventions. Hon. Members can ask once, perhaps twice, but three times is too many.
I have already taken many interventions from the Liberal Democrat Benches.
Before any of those options can be taken, Ofcom has to make recommendations to the Secretary of State, who then decides whether action is necessary and what action should be taken. Only at that point will any part be played in the whole process by Parliament, perhaps many months if not years after the process has begun. Nothing is likely to happen before the general election, and all that time TNT and others will continue to expand, making it ever more difficult to construct a solution. As Ofcom points out in its briefing for this debate, the competitors have also made complaints about Royal Mail and some of its practices that they claim are unfair, so if this is opened up we run the risk that of all sorts of other things creeping in.
There seems to me to be a contradiction at the heart of the Postal Services Act. We have a private company that has to undertake the delivery of a vital public service, and the only way of enforcing that is through a regulator, about which I have an uneasy feeling given the way the railway industry operates. I believe we need to look further than that and consider wholesale changes to the Act to allow much faster action to protect the USO. I opposed the privatisation of Royal Mail; I still think it was a drastic error, but as the right hon. Member for Gordon (Sir Malcolm Bruce) has pointed out, in September the people of Scotland have a chance to do something about that and ensure that Royal Mail becomes a public service.
I did not want to go into the independence referendum arguments, for two simple reasons: first, they are incredibly complex, and secondly, the issue is not entirely relevant to the debate. I think that we are all slightly sick of the independence referendum. I hoped that we could be “independence free” today, but perhaps that is not possible after all. However, the hon. Gentleman is absolutely right. Whichever way we view the issue, it is clear from the geography of Scotland that it would be much more difficult and expensive to deliver postal services there following independence. Scotland’s postal services are cross-subsidised because of that geography. That is one very simple argument about what would happen to postal services in an independent Scotland.
I have awoken the beast of Angus. If he will excuse me, I will not give way because of the time constraints—or perhaps I will, just for the sheer fun of it.
The hon. Gentleman talks of the geography of Scotland, but what we are debating is whether the universal service obligation will continue within the Union. It is the Union that is a danger to the universal service throughout the United Kingdom, not Scottish independence. Scotland, like any other country, can run a postal service to suit Scottish needs.
I think the hon. Gentleman should go to see the doctor that my hon. Friend the Member for Hayes and Harlington (John McDonnell) sees and perhaps get some advice on how to calm down a little about the independence referendum.
I am looking at the time, so I will conclude now by paying tribute to our posties up and down the country. I went on a round last year with Michael Lunn, one of my local posties from the Strathearn road delivery office, in the most tenemental part of my constituency. I can assure hon. Members that it was quite a hard round without lifts in those tenements. Not only did he deliver the mail efficiently, but he knew where people lived, which buzzers to press to get in when people were at work, whether people were on holiday and whether people were expecting parcels. He knew everything about anybody in his round. When we put it in that context, we see that it is not just a postal service; it is a service to all our communities. It is a valuable social service that we should make sure we do not jeopardise, because if we do, that will be detrimental to everyone in the country.
It is a pleasure to respond to today’s constructive debate. I very much congratulate the hon. Member for North Ayrshire and Arran (Katy Clark) on securing it. As a fellow proud Scot, I am pleased that so many Scottish Members have contributed to it, but I am also pleased that all four nations of the United Kingdom have been represented.
The issues I wish to touch on in my summing up are: the importance of the USO; the concerns raised by various hon. Members about competition; and the Ofcom review, which is the main subject of the motion. We have heard from Members from all parts of the House about how vital the universal service is for rural areas. The hon. Member for Ynys Môn (Albert Owen), my hon. Friend the Member for Argyll and Bute (Mr Reid), and the hon. Members for North Ayrshire and Arran and for Angus (Mr Weir) all made points about that eloquently. We were reminded by my hon. Friend the Member for Northampton South (Mr Binley) that this is not purely a rural issue, as the universal service is vital to many towns and suburban areas. It is right that postal workers are held in great esteem in many communities, as the service is hugely important not only to our local economies, but more widely, in society and in communities. That is why, as my hon. Friend the Member for Argyll and Bute pointed out, we have set out the USO in primary legislation—my predecessor, my right hon. Friend the Member for Kingston and Surbiton (Mr Davey), made sure it was written into the Postal Services Act 2011.
I appreciate that the right hon. Member for Neath (Mr Hain) is no longer able to be in his place, but I am sure he will read my remarks in Hansard in order to follow the reassurances I can give about his concerns on the definition of the delivery of a six-day-a-week service to every address. He seemed to take the view that that was not a significantly well-defined definition. Section 31 sets out what must, as a minimum, be included in the USO. On the delivery of letters and other postal packets it states:
“At least one delivery of letters every Monday to Saturday—
(a) to the home or premises of every individual or other person in the United Kingdom, or
(b) to such identifiable points for the delivery of postal packets as OFCOM may approve.”
Clearly there are very few addresses that are, for whatever reason, inaccessible and for which Ofcom can, in those extreme cases, approve a collection point. That definition is very clear, we should be reassured by it, and it is right that this House and the other place have prioritised it by making sure it is in primary legislation.
I understand what the Minister is saying and I acknowledged that this was the first time the USO was in legislation. Let us consider one thing that Ofcom can do in a review. I believe that section 43(8) states that its
“recommended action may consist of one or more of the following—
(a) the carrying out of a review under section 33 (review of minimum requirements)”.
So if Ofcom does carry out a review under the Act, it could recommend a reduction in the minimum requirements. Will she assure us that she will not accept any such reduction?
I am delighted to do so. I have given such assurances from this Dispatch Box, as colleagues have done. Speaking for my party going into the next general election campaign, I can say that that will be our position, and I am sure that other parties can also give their assurances on that. I think that there is absolute consensus across the House that that is vital and should be protected. So it is not something that would be changed. In addition, as we have discussed in the debate, to do so would require a vote in both Houses of Parliament, and that is a significant protection. I hope that that reassures the House on the importance the Government attach to the USO.
Members also raised concerns about cherry-picking and end-to-end competition. Of course competition is not new in postal delivery. It has been more than 10 years now since the EU postal services directive opened up the market. At the beginning, the effect was felt much more significantly in the collection and sorting of mail, with Royal Mail still being responsible for the final mile. That is the area in which there has been more competition.
The right hon. Member for Neath was right to highlight the fact that the expensive parts of postal delivery are to the address not in central London, central Swansea or central Glasgow but in those much more inaccessible, remote locations, where the costs are significant. Of course the principle of cross-subsidy, which was mentioned by my hon. Friend the Member for Northampton South, is a crucial part of how the universal service can be delivered. One of the ways in which the structure is created so that that cross subsidy can continue is for Royal Mail to have a lot of flexibility—much more than it used to have—to charge different prices to different operators. It can also use zonal pricing so that it can charge more for delivery to remote rural areas when it is being used for that final mail delivery, which accounts for the vast majority of competition that exists within the mail delivery market. That enables it to recoup the costs that it incurs from providing that universal service.
Competition can clearly help to drive efficiency, which I am sure people would agree is a positive thing, but it stands to reason that if that competition took a significant portion of the market, especially in terms of end-to-end competition, it could have an impact on the universal service. That is because zonal pricing is particularly related to the competition that exists when Royal Mail is still delivering the final mile. That is why we have put in place a regime in which Ofcom monitors both the situation and what is happening in the postal market. If necessary, it has further powers to act to level the playing field.
I just want to touch briefly on the quantum that we are talking about today. Members have mentioned TNT delivery, but in the last full year, in 2013, 14.6 billion items were delivered—that is the size of the mail market. Of those 14.6 billion items, 14.544 billion of them were delivered by Royal Mail. I am not saying that Members are wrong to be concerned, but I want to put the matter in context. We are talking about a very small portion, 0.38%, of the overall mail market. Members were right to say that it has grown quickly. In 2012, it was 0.11% of the market. Within the space of a year, the volume of items delivered in end-to-end competition more than tripled. It is important that this issue is looked at closely by Ofcom and that it is kept under review.
My hon. Friend the Member for West Aberdeenshire and Kincardine (Sir Robert Smith) pointed out that perhaps Royal Mail needs to have time to adapt to changes. It is clear that we need to keep our eye on the rate of growth, but we are not yet talking about a level or a volume that would cause concern about the impact on the profitability of Royal Mail. Even Royal Mail accepts that the concern is more to do with the potential for that to happen rather than the situation as it is at the moment.
I just want to clarify which review we are talking about today. Two different reviews are being talked about. Some Members have mentioned section 44. I think that the hon. Member for Angus was looking at a copy of the Bill, because by the time that Bill became an Act, it was section 44 rather than 43. That is the review of the financial burden of the universal service on the provider that Ofcom can be directed to undertake by the Secretary of State. That is not the same as the review that Royal Mail is currently asking for, which is about end-to-end competition. That review is something that Ofcom has said that, as part of its wider monitoring regime, it will do in any event by the end of next year, but it is happy to bring it forward if necessary. This is an area in which there is no specific Government power to direct. I hope to reassure the House on this point.
There is a clear desire for Ofcom to keep a close eye on the impact of competition on the universal service. It seems that there is almost an assumption that that is not currently being considered, but I can tell the House that that is absolutely not the case. I have spoken to Ed Richards, who is in charge of Ofcom, and, as it happens, I will be meeting him later today, which is good timing. Ofcom is clear that it is monitoring the situation in the mail market carefully and intensely. It is not waiting until the end of next year; it is doing so on a monthly basis and is very much on the case, ensuring that it has the information. It also has the power to get access to much more detail than any individual player in the market, having access not only to the details of Royal Mail’s financial position, but also to the business plans of TNT and any other providers, so its visibility is excellent. The review will be started by the end of next year at the latest, but Ofcom has said that it is happy to start earlier if it sees any reason for market changes or any financial impact on the universal service that would mean that it needs to be started earlier.
I am conscious of the time, so I will not stray into the Scottish independence issues, tempted though I am to do so. The exchange between the hon. Members for Edinburgh South (Ian Murray) and for Angus set out that the matter is relevant and that there would be consequences in an independent Scotland for deliverability and the price of the postal service.
I want to finish by picking up on the point made by the hon. Member for Hayes and Harlington (John McDonnell), because he made a sensible and constructive suggestion that, given the level of interest in the House, which is clear from the debate’s attendance and from the correspondence that I receive as a Minister, it would be helpful for Ofcom to be able to meet MPs to discuss the issue. It is clear that the appetite is there and it would be useful for the regulator to hear MPs’ concerns directly and not just through Hansard. It would also be useful for hon. Members to be able to have a frank discussion with Ofcom about its approach, which I believe would lead to a great deal of reassurance. As I said, I will be meeting Ofcom later this afternoon and so will have the perfect opportunity to put that request. I look forward to hearing the response of the hon. Member for North Ayrshire and Arran to the debate.
(11 years, 4 months ago)
Commons ChamberThe best protection that I can offer my hon. Friend is to ensure that Royal Mail’s finances are put on a sustainable, long-term footing, and that it has access to the capital that it needs in order to innovate, compete and respond to changing technologies. Its parcels business is already growing rapidly, but it is in a competitive marketplace, and we need to free it so that it can operate like any other commercial company.
As the Minister will appreciate, a universal service depends not only on deliveries but on uplift points, and there are serious concerns about the post office network and in particular whether post office locals will all be able to provide the parcel service. If that comes to pass, what powers do Ofcom or the Minister have to intervene to make sure that service is available?
I am proud to be part of a Government who have put an end to the post office closure programme we saw in the last few years. That has been brought to an end, and the post office network is being put on to a better footing, but the regulator Ofcom has all the powers it needs to ensure that the universal, six-days-a-week, everywhere-in-the-UK service is fully protected in the future, irrespective of any change in ownership.
(12 years, 1 month ago)
Commons ChamberThe Government have already made a clear commitment that the bank will be able to borrow from April 2015, subject to public sector net debt falling as a percentage of GDP, and the borrowing could take several forms, including from the capital markets. I reiterate that commitment today. Nothing in the Bill prevents that from taking place.
As the Bill stands, the bank is allowed to invest only in activities it considers likely to contribute to the achievement of one or more of the green purposes in the UK. Government amendments 1 and 3 would allow the bank to invest in activities it considers likely to contribute to one or more of the green purposes, whether in the UK or elsewhere. The point about global supply chains has already been made powerfully. The amendments will provide important flexibility in the bank’s future activities. We believe that, for the foreseeable future, the bank’s activities should continue to be in the UK, and the Government and the Secretary of State, as shareholders in the bank, will be able to ensure that that is the case.
As I understand it, under the Bill in its current form, the bank would not be able to invest in a project that crossed borders—for example, a cable from the Republic of Ireland to the UK or a North sea supergrid. Am I correct, or will the amendment allow investment in such projects?
The amendment will allow the bank in future to invest in the UK or elsewhere, but we have amended the bank’s statement of objects in its articles of association so that the bank’s activities are limited to those the board considers will, or are reasonably likely to, contribute in the UK to one of the green purposes. I hope that that answers both questions and addresses the reasonable point made by the Opposition that UK public spending should have a UK focus. We think this is the way to deliver the best of both worlds. The bank’s directors will be required to act in accordance with the company’s constitution to ensure that the bank contributes to the United Kingdom, and there will be flexibility for the future without the need for future primary legislation.
(12 years, 2 months ago)
Commons ChamberI know that my right hon. Friend the Secretary of State has already met my hon. Friend’s constituents to discuss the issue, and I believe that he has already met the founder of the Bank of Dave as well. One of the recommendations of the Independent Commission on Banking was that the Financial Services Authority should look again at the requirements for a banking licence, to see whether they are too onerous and disproportionate for the providers of very small credit. We expect the FSA to publish its recommendations shortly and I would be very happy to discuss them with my hon. Friend.
Many small businesses in my constituency run a post office as part of their business, and they are very worried about the chipping away of business and, particularly, the threat of losing the DVLA contract. What is the Minister’s Department doing to encourage the DVLA to stick with the Post Office?
I cannot comment on any specific contract that may be up for renewal. Of course, the Post Office has to live in a competitive world, but I will certainly look at what the hon. Gentleman has said.
(12 years, 6 months ago)
Commons ChamberI absolutely congratulate the villagers who have managed to achieve that. I have seen a similar story in Norfolk, and it is a fantastic community spirit that manages to achieve that. I tend to agree that asking every volunteer in the village to undergo a CRB check seems over the top.
I welcome what the Minister says, but does he not share my concern that there are still problems when main post offices are moved into other businesses? A constituent of mine went to the main post office in Arbroath, by far the largest town in my constituency, to renew his photographic driving licence, only to be told that it could no longer provide that service and that he would have to go to Dundee. Does the Minister not accept that such incidents undermine efforts to stabilise the post office network?
I hear the hon. Gentleman’s point, but the transformation being undertaken through pilots in both main and local post offices has been received incredibly positively by customers, with 90% satisfaction rates, and by the sub-postmasters and postmistresses who are delivering those services.
(12 years, 11 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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Order. Although we are into the winding-up speeches and it is rather unusual, if neither of the Front-Bench spokeswomen object, I will allow a contribution from Miss Mordaunt.
(13 years, 7 months ago)
Commons ChamberI know of the good work done by my hon. Friend and by Harlow college. He will wish to know that there was a 20% increase in apprenticeship starts in 2010-11 compared with the same period in the previous year. That is because of the work of organisations such as Harlow college and the advocacy of hon. Members such as my hon. Friend.
Over the past few years, the oil and gas industry in north-east Scotland has created many new apprenticeships and skilled many new workers for the future. Does the Minister accept that that has been put at risk by the massive tax increase announced without any consultation in the Budget?