Oral Answers to Questions

Peter Aldous Excerpts

Thursday 3rd July 2014 Commons Chamber

[Sajid Javid]

I certainly will; that is an excellent initiative. Since A. E. Housman came from my constituency, that would be a good start.

[Peter Aldous (Waveney) (Con)]

There is concern that the Government’s approach to allocating funding for the superfast broadband extension programme will leave most rural areas at a disadvantage. What help and assurances will the Minister give to constituents in the villages of Rumburgh, St James and Ringsfield that they will not be penalised?

[Mr Vaizey]

The principle behind the programme is that we allocate funding in order to get to 95% coverage. We expect local authorities to match that, and we will then work with them to target the areas where it is needed most. I am happy to meet my hon. Friend to discuss the best way forward.

National Infrastructure Plan

Peter Aldous Excerpts

Wednesday 4th December 2013 Commons Chamber

[Danny Alexander]

Again, I am afraid that I do not know the details of that project, but it sounds like there is a strong case for it at a local level. If my hon. Friend writes to me with the details, I will happily see how it could be progressed.

[Peter Aldous (Waveney) (Con)]

As a Suffolk MP, I, too, welcome the announcements on the A14 and the further investment in offshore wind. Does my right hon. Friend agree that those commitments will help to attract private sector investment and to create jobs that will be of significant benefit to the East Anglian economy and, in particular, to my Waveney constituency?

Fuel Duty

Peter Aldous Excerpts

Monday 12th November 2012 Commons Chamber

[Peter Aldous (Waveney) (Con)]

It is a pleasure to follow the hon. Member for Plymouth, Moor View (Alison Seabeck) who, like me, represents a periphery constituency. It is appropriate that we are having this debate now, less than a month before the Chancellor delivers his autumn statement on 5 December, when I expect him to set out his strategy on fuel duty, at least for the short to medium term. It is important, in deciding whether to proceed with the planned 3p increase in January, that he should be fully aware of the impact that fuel duty increases have on hard-pressed families and on businesses, particularly small and medium-sized enterprises. It is a concern that my constituents very much emphasise to me both in conversation and in correspondence.

Fuel duty is a highly regressive form of taxation that hits those on low and fixed incomes particularly hard. Those in isolated, more remote periphery locations such as East Anglia and my Waveney constituency feel the impact hardest. The car there is very much a necessity and not a luxury. In Waveney, the average monthly distance to travel to work is just over 400 miles, while in Kensington and Chelsea, where salaries are dramatically higher and where there is a far better public transport system, it is just under 210 miles.

I am acutely aware of the dilemma of those constituents who travel to work from, say, Lowestoft to Norwich—a round trip of 50 miles every day. At the moment, their commuting costs are biting savagely into their weekly budgets. Moreover, there are jobs in the leisure, tourism and care sectors where the hours of work are such that using public transport is no option whatsoever.

I am very much aware of the excellent campaigning work carried out by FairFuelUK, championed by my hon. Friend the Member for Harlow (Robert Halfon). As well as highlighting the crippling impact of fuel duty on households and businesses, it backed up its case with hard evidence. Its most recent research, carried out by the National Institute of Economic and Social Research, shows that if the 3p rise goes ahead, 35,000 jobs will be placed at risk, growth will be cut by 0.1% and 40% less tax revenue than the Government had predicted will be raised. In the weeks leading up to 5 December, it is important that the Government look at this evidence very carefully.

Over the past two and a half years, the Government have pursued the right course for the British economy. There is no such place as a safe harbour in the world today, but they have taken us out of the eye of the storm. Interest rates remain low; there has been no run on the pound; and the markets are looking at other countries that have failed to put their houses in order. Plenty of obstacles remain ahead: the ongoing crisis in the eurozone; rising food prices as a result of poor harvests around the globe; and fluctuating oil prices, which have the potential to stall the recovery.

There is a concern, too, that anti-competitive practices in the petrol trade are distorting the market. It has been suggested that £30 a barrel is added through speculation. This results in consumers not paying a fair price at the pumps. It is vital that the UK economy is not exposed to such unfair profiteering. I urge the Government to ensure that the oil market is fully transparent and that a suitable supervisory framework is in place, with increased fines for market manipulation.

While it is right that we are having this debate tonight, there are fundamental flaws in the Opposition motion. First, the Government have a proven track record of listening and of understanding the impact of fuel duty on families and businesses. They have already delayed and cancelled increases that the previous Administration put in place. Fuel is 10p a litre cheaper than it would otherwise have been, while the Government’s policies in this area have delivered savings to families of £159 a year.

Secondly, the feedback from FairFuelUK’s meeting with my right hon. Friend the Chief Secretary to the Treasury suggests that the Treasury is studying seriously the report produced and presented to it. I get the impression that its findings are being carefully considered and will be taken fully into account in the autumn statement.

Finally, I fear that the Opposition’s means of paying for this postponement do not stand up to scrutiny. The Government have already secured many of the savings that can be achieved through successful clamping down on tax evasion and avoidance. I fear there is nothing much left there.

I shall oppose the Opposition motion and support the amendment. In doing so, I say that the time to scrap the increase in fuel duty is in the autumn statement on 5 December. I urge the Government to do so at that time.

Beer Duty Escalator

Peter Aldous Excerpts

Thursday 1st November 2012 Commons Chamber

[Peter Aldous (Waveney) (Con)]

I am grateful to my hon. Friends the Members for Burton (Andrew Griffiths) and for Leeds North West (Greg Mulholland) for securing the debate and for their hard work and to the 104,000 people who signed the e-petition. I wish to speak in favour of the motion, and there are compelling reasons for doing so. First, if we do nothing and carry on regardless, an iconic British business will wither on the vine—or should I say the hop? Secondly, small businesses will close at an accelerating rate, with a devastating impact on individuals, families and communities, both urban and rural. Thirdly, it is important to base fiscal policy on well-founded and up-to-date research. Times have changed significantly since 2008.

Indeed, the face of the industry has changed dramatically over the past 30 years. In East Anglia, great names such as Lacon’s, Bullard’s, Mann’s, Tollemache and Cobbold have long gone. Visionary and iconic businesses remain: Adnams, St Peter’s brewery and Green Jack in my constituency, the latter being the most easterly brewery in Britain. We owe it to them to promote a level playing field on which they can develop their businesses, play a full role in the economic recovery and create new jobs.

If we go on as we have been doing, we will kill the goose that lays the golden egg. Beer duty has risen by 40% since 2008, yet the pub trade has shrunk by a third over the same period. Britain pays over 40% of EU beer tax but consumes only 13% of beer sold in Europe. Investment in the beer and pub sector has shrunk dramatically, from over £2 billion in the late 1990s to £600 million in 2010. A sector that employs 1 million people, often young people, needs nurturing, not suffocating.

If there was a rationale for introducing the escalator in 2008, it has long since gone. Time are very different: inflation, VAT and input costs are all higher; there has been a poor harvest; energy costs are higher; and these are compounded by a fall in household incomes. The escalator today is in many respects a straitjacket; it is no longer fit for purpose in these straightened times.

It is important to bear in mind the unique nature of the industry, the effect of the punitive form of taxation and its potential for growth if properly nurtured. It is very much a British industry, with a supply chain that creates a significant number of jobs. As we have heard, one job in brewing supports one job in agriculture, one job in retail, one job in distribution and 18 jobs in pubs and clubs. In my constituency, more than 1,200 people are employed directly or indirectly as a result of the industry, and there are nearly 100 pubs and the industry puts £26 million into the local economy. Some 85% of pubs are small or medium-sized enterprises, the foundation stone on which we must build the recovery. They are particularly vulnerable to rises in duty, being less able to absorb duty and other cost increases. It is also important to take into account the community and social benefits of pubs, both in villages and in urban areas.

Pubs are under attack on all fronts. The landlords who lease from pub companies find themselves confronted with excessive rent increases. Landlords find themselves strangled by red tape; lock-ins have long since gone, having been replaced by late-night sessions of burning the midnight oil and completing VAT returns. Many are told, “You don’t want to rely on beer; you want to get into food.” Yet landlords find themselves competing on an unlevel playing field with supermarkets as they have to charge VAT on their sales.

[Andrew Percy (Brigg and Goole) (Con)]

On that point, I commend the Percy Arms in Airmyn, a pub that has transformed itself, but purely around food, because making money out of beer has become almost impossible.

[Peter Aldous]

My hon. Friend makes a good point.

It would be churlish not to commend the Government for the good work they have done. They have made it easier for pubs to put on live events, they have introduced the community right to buy through the Localism Act 2011, and the forthcoming proposed introduction of a minimum unit price for alcohol will help to provide a level playing field.

However, the elephant in the room remains. This brings me back to the motion and the need for a full review of the economic and social impact of the escalator before decisions are made in next year’s Budget. Tax policy must be underpinned by proper research. The research that has been carried out shows that there will be devastating unintended consequences if the escalator is retained. Oxford Economic Research Associates has shown that if the rise goes ahead, there will be 5,000 job losses and the additional beer duty received will be offset by a loss of employment, lower revenues from other taxes and an increase in social security spending. I urge the Government to carry out the review with all haste.

Green Economy

Peter Aldous Excerpts

Thursday 28th June 2012 Commons Chamber

[Peter Aldous (Waveney) (Con)]

I congratulate my hon. Friend the Member for South Thanet (Laura Sandys) on securing the debate. Realising the full potential of the green economy is vital to securing economic recovery and creating new jobs.

The green economy is performing particularly well at present and it is important that the UK takes full advantage. Last year, the low carbon goods and services market grew by 4%, and investment in renewable energy around the world reached record levels. In 2011, there was an estimated £6.9 billion of investment in the UK renewables sector, with 21,000 jobs announced. Research and development work is ongoing, and renewable technology is becoming more competitive. The offshore wind cost reduction taskforce estimates that it should be possible to cut the cost of offshore wind by a third by the end of the decade.

It is important to take advantage of those opportunities so that as a country we are less vulnerable to rising global energy prices. We need to future-proof our economy against the vagaries of fluctuating fossil fuel prices. Such fluctuations restrict household expenditure and business investment decisions as well as pushing up inflation.

It is appropriate to commend the Government for the work they have done in the past two years. In many respects they have laid the foundations upon which a successful green economy can be built. They are tackling difficult challenges that do not have straightforward solutions. A good start has been made.

The fourth carbon budget, for the period 2023-27, has been set and the green deal starts this autumn. The Government have brought forward the green investment bank and have invested £3 billion as its initial capitalisation. It is good news that the Enterprise and Regulatory Reform Bill will enshrine in legislation the green investment bank’s objectives, embed its operational independence and provide Government with specific powers to finance it.

It is welcome that the Government are tackling electricity market reform as part of the draft Energy Bill, which is at present before the Environment and Climate Change Committee. I shall not comment on EMR in detail as we shall return to it in the autumn, but it is an extremely important subject where it is vital that the right decisions are made. In tackling EMR five guiding principles should be pursued: timeliness, simplicity, certainty, transparency and coherence.

I commend the Government for the work they have done locally in East Anglia. There is an enterprise zone aimed at the renewable energy sector in Lowestoft, in my constituency, and in Great Yarmouth, and a centre for offshore renewable engineering designation for those two ports.

To realise the full potential of green growth, the Government need to address four challenges. First, there is a need for coherence from Government. Green investment is highly mobile and globally foot-loose. Investment will flow to the most attractive destinations. It is therefore important that the Government continue to send the right message: the UK is the best place to invest, with a stable fiscal regime and a sound pricing mechanism. That is how we shall achieve the necessary investment in new energy technologies.

It is also important to provide international investors with the confidence to invest in the UK. Investors need to have faith that all departments of Government are serious about the green economy. There should be a coherent and consistent framework and the right rhetoric must emanate from the Treasury.

Secondly, there is a need to provide 21st-century infrastructure. That means smart metering, a smart grid and in due course a European supergrid. Important work has already begun on rolling out superfast broadband, and it is important that that does not stall. There is also a need to continue with the work to achieve a 21st-century renaissance on our railways, and the Economic Secretary to the Treasury is playing an important role in that in East Anglia.

My third point relates to the green investment bank and its right to borrow. I have already commended the work that the Government are doing in setting up the GIB, which will operate from 2013-14, a year earlier than anticipated. It is envisaged that the bank will have the right to borrow from 2015-16. However, I must emphasise the vital importance of the GIB having powers to borrow, so that it can reach its full potential and provide certainty to investors. It must have that power so that it is not just a Government-run fund. The £3 billion of start-up funding should unlock £15 billion-worth of private sector investment, but that is a drop in the ocean compared with the £200 billion of investment needed to invest in energy infrastructure up to 2020.

It is important not to pursue the option of borrowing through the national loans fund to fulfil the GIB’s borrowing requirements. If that is done, there will be no independence at all. The GIB needs to be able to borrow independently from the capital markets. It is important to learn from the examples in Germany, where KfW leverages its equity by a multiplier of 28, and the Netherlands, where Bank Nederlandse Gemeenten achieves a multiplier of 59. My fourth point is that we need to provide people with the skills and training needed to take up the many exciting and diverse job opportunities in the green economy.

In many respects, that meeting of minds and hearts in the rose garden of No. 10 in May 2010 seems a distant memory, and perhaps another country. However, it is important to remember that one of the objectives in the coalition’s programme for government was the Prime Minister and Deputy Prime Minister’s shared vision of building a new economy from the rubble of the old, supporting sustainable growth and enterprise, balanced across all regions and industries, and promoting the green industries that are so important for our future.

I would like to promote “Leading the Way: Green Economy Pathfinder manifesto 2012-2015”, a document about which I suspect the Economic Secretary to the Treasury knows a great deal. It is a report produced by the New Anglia local enterprise partnership, covering Suffolk and Norfolk, setting out its route map for a transition to a green economy. It was launched earlier this month, and it will be presented to the Government in the next few weeks. I urge the Government to give full regard and consideration to its five objectives and 25 goals, which I will not go through because of the shortage of time.

In conclusion, the Government have made a good start, but a lot of work is still required to realise the full potential of the green economy, and there are many challenges that remain to be met. There is a need for more co-ordination across government, closer working with both business and local government, and a clear and simple regulatory framework to promote green investment. The UK remains an attractive place to invest, but we must do all we can to ensure that that reputation is not lost, but enhanced. I support the motion, and look forward to hearing the Minister’s response.

Interest Rate Swap Products

Peter Aldous Excerpts

Thursday 21st June 2012 Commons Chamber

[Peter Aldous (Waveney) (Con)]

I am grateful to my hon. Friend the Member for Aberconwy (Guto Bebb) for raising this important issue and for campaigning on it with such determination.

I wish to draw attention to a case study concerning a medium-sized business in my constituency, setting out its experiences and seeking to draw some lessons from them. At this stage, the business wants to remain anonymous, as it is seeking to resolve the matter with its bank without recourse to legal action and it does not wish to prejudice those negotiations.

In 2005 the business entered an interest rate hedging transaction that ran for five years. At the outset, taking into account the immediate outlook for the economy and for interest rates, there was some logic to such an arrangement. In May 2008 the bank contacted the business, recommending and urging it to renew the arrangement for another five years, even though the agreement was not due to expire until 2010, more than two years away. During the ensuing three to four months, the customer continued to receive correspondence and telephone calls from the bank encouraging renewal.

At a meeting on 15 August 2008, the matter was discussed more fully. Subsequently, on 29 October, more than two months later, my constituent sent an e-mail to the bank advising it that he did not wish to renew the agreement. On 4 November he received a contract from the bank for signature. The bank told him it was confirmation of the verbal agreement reached on 15 August. Under pressure, not wishing to upset a business arrangement with his bank that had been in place for many years and at a time when the economic outlook was uncertain and the customer was keen to keep on good terms with the bank, he signed the agreement.

Earlier this year, my constituent decided, having sold a property, to bring the agreement to an end, so he contacted the bank to establish the cost of doing so. He was advised that that would cost more than £72,000. Up to today, the whole arrangement has cost him £162,000 in interest charges, which are predicted to have risen to £200,000—40% of the value of the loan—by the end of the arrangement in September 2015.

I have three observations on that chain of events. First, in whose interests was the bank acting? Its own or its customer’s? Why did it put pressure on him to renew the agreement when there was no need to do so for another two years, until 2010? In 2008, taking into account the outlook for interest rates and their likely future movements, there was no incentive or reason for the customer to rush to renew. It would have been much better to see what would happen over the following two years. Any independent adviser acting in the company’s best interest would have advised it to do that. In my view, the bank’s actions were dictated purely by its own self-interest rather than the best interests of its customer.

Secondly, the bank appears to have been incompetent at best, and at worst to have adopted underhand tactics in putting pressure on the customer to renew the agreement. Obviously what happened at the meeting on 15 August is subject to disagreement, but I personally accept my constituent’s version of events. Surely the best practice for the bank to have pursued would have been to take its customer through the arrangement step by step at that meeting and, if there was a verbal agreement, to produce a contract immediately and not two months later. A further meeting should have taken place, to go through the contract line by line, until the customer was fully aware of the implications before signing. The fact that the bank did not send the contract for two months, and only did so because it received an e-mail from its customer indicating that he did not wish to proceed, shows it in a very poor light.

Thirdly, there is a clear failure by the bank to provide full, independent and impartial advice that sets out the pros and cons of the transaction, in particular the cost of breaking early. If my constituent had been aware of all those factors, he would not have renewed the arrangement.

I am keen to give other hon. Members the opportunity to state their case, so I will conclude with two points. First, this whole matter needs to be addressed straightaway and given high priority by the FSA, and a framework should be put in place for cases to be investigated quickly with proven claims settled immediately. We do not want this scandal to drag on for years, because that could undermine the very businesses on which the economic recovery needs to be built.

Secondly, we need a banking system that is regulated and run in a way that prevents such conflicts of interest. In the case I have described, the bank was clearly acting in its own interest rather than that of its customer.

[George Eustice]

Does my hon. Friend agree that if banks encourage their customers to take up such products, they should not then be allowed to provide them through one of their subsidiary companies? That would be one way of creating a division.

[Peter Aldous]

I agree entirely with my hon. Friend—a dog cannot serve two masters. The two acts of advising a customer and selling a financial product must be completely separate and provided by organisations that are independent of each other and not related parties.

I support the motion and look forward to hearing from the Minister about the Government’s proposals for achieving a prompt resolution to yet another bank selling scandal.

Static Caravans (VAT)

Peter Aldous Excerpts

Thursday 26th April 2012 Commons Chamber

[Mr Stuart]

The right hon. Gentleman is right. He may not entirely share my sentiments when I say that the coalition has a great story to tell for east Yorkshire—the Humber bridge tolls have come down, and investments have been made in the A164, the Beverley relief road and the coastal communities fund—but I agree with him that this measure could have a devastating impact.

[Peter Aldous (Waveney) (Con)]

Does my hon. Friend agree that the Treasury has failed to take full account of the impact of the proposal on jobs, which will cascade all the way down from manufacturers to small and medium-sized enterprises? Moreover, it will be concentrated in particular parts of the country, such as his constituency and mine, which will not be able to take that extra impact.

[Mr Stuart]

There is great fragility in isolated, sparsely populated rural areas. How many other jobs are there in such areas? Indeed, what other jobs could there be? The truth is that often there are none.

Finance (No. 4) Bill

Peter Aldous Excerpts

Wednesday 18th April 2012 Commons Chamber

[Cathy Jamieson]

I am slightly surprised to hear that from the hon. Gentleman. All I wanted to do in raising this particular issue was to make the Government recognise that the consultation, which has been brought forward, amounted to too little, too late, and that it would have been far better if it had been done earlier.

Back Benchers want to contribute, so I shall close in order to give them the opportunity to speak. It would be useful, however, if some Conservative Members were able to give us an update on the meeting apparently taking place today. Will there be a change of position? Will the Government withdraw, particularly from the caravan tax, but also from the other ill-thought-out taxes? Once again, I see no one seeking to intervene on this particular point, so I shall finish and allow others to raise further issues.

[Peter Aldous (Waveney) (Con)]

I am grateful to be called to speak. I shall restrict my comments to new clause 6 and the proposed application of VAT to the sale of static holiday caravans from 1 October. My interest is a constituency one, as I fear that the impact of the measure will be far greater than HMRC has estimated.

I have received representations and expressions of interest from a variety of parties. These include Hoseasons, one of the largest holiday providers in the UK, which is based in Lowestoft in my constituency; and five park operators, including the chairman of my own constituency Conservative association, who has herself written to the Treasury and a number of other Members. Small and medium-sized enterprises, including painters and decorators, and a bank are also concerned about the impact of the proposal on business viability.

Let me make three observations. First, I fear that HMRC’s assessment of the impact of the change takes full account of neither the whole supply chain serving the industry, nor the fact that the industry is concentrated in specific geographical areas that will be hit very hard. Some of those areas are pockets of deprivation and unemployment, and many are coastal communities such as my constituency, where tourism is a vital component of the local economy.

The supply chain includes manufacturers who are located almost exclusively in the UK—mainly in the Humberside area—wholesalers, and park operators. In recent years, the sale of static caravans has become a vital part of park operators’ businesses. Without such sales the future of some businesses will be at best uncertain, while others will cut both staff and the reinvestment in facilities that is so important if they are to continue to attract customers and ensure their own financial viability. Trading conditions have been very difficult for those operators in recent years, and the introduction of the new tax on 1 October, following so soon after the imposition of VAT on pitch fees, rates, and water and sewerage bills on 1 January, would contribute to a double whammy.

I am especially concerned about the fact that HMRC’s assessment takes no account of the numerous SMEs that work in the parks. There are builders, decorators, plumbers, electricians, people who fit carpets and curtains, and people who service plant and equipment. We should also bear in mind that many of those who work in the parks—admittedly on a seasonal basis—are young people gaining their first experience of work. An unintended consequence of the measure could, in some cases, be the removal of that vital first rung on the employment ladder.

[Mr David Hanson (Delyn) (Lab)]

In my part of north Wales, the projected 30% drop in sales shown by the Government’s own figures will have an impact on new purchases. Those who come to north Wales do not just buy static holiday homes; they buy cars and go to restaurants, pubs and shops, and their income and expenditure help to boost our economy. That will hit the hon. Gentleman’s constituency as well.

[Peter Aldous]

I shall come to that issue in a moment.

My second point is that HMRC’s analysis fails to take account of the vital role played by static caravan owners in a local economy such as that in Waveney. They are, in many respects, the “anchor tenant” for the whole tourism industry. They come to stay in the area for most weekends, and they do not limit their visits to the summer season. They spend money in local shops, restaurants and pubs, visit the many day attractions in my area such as Pleasurewood Hills and Africa Alive, or spend a day on the beach or boating on the Broads. A reduction in their numbers would have a significant knock-on effect on the many businesses in the area.

Finally, I believe that the rationale for the introduction of the tax is flawed. It is claimed that it addresses an anomaly, as touring caravans are subject to VAT while static caravans are not. However, the industry has come a long way since 1973, when the VAT exemption was first made, and I believe that today’s static caravan has more in common with a holiday home than with a mobile caravan. Static caravans are more like second homes in terms of their facilities and the nature of the accommodation, the investment that their owners have made in them, and the way in which they are used—not just for once-a-year holidays, but for regular visits throughout the year.

[Albert Owen (Ynys Môn) (Lab)]

Another consequence of the tax is that those who currently buy caravans to use as second homes would actually buy second homes. That would raise the price of affordable homes, especially in rural areas such as the hon. Gentleman’s constituency.

[Peter Aldous]

I am not sure that I entirely agree with the hon. Gentleman. The problem with many second homes is that they are very expensive. What worries me that, certainly in my area, people would go abroad for holidays. They might even buy a villa in Spain, which really would be cheap, and the whole tourism industry would be affected.

In many respects, the current tax treatment of second homes and statics is, by chance, similar. The former pay stamp duty, while the later pay VAT on movable items only. To change that balance would unfairly penalise this group of people. Many of them cannot afford a second home, yet they are similar to second-home owners in so many ways. Such a move would be regressive in taxation terms.

In summary, I believe that the impact of this proposal will be far greater than HMRC’s assessment implies. It will have a significant negative effect on the economy and on jobs in specific locations around the country, including my constituency. Further, I question whether the anomaly it is intended to address actually exists. I therefore urge the Government to think again, and to allow a vital industry to continue to play a key role in securing the economic recovery.

Communities and Local Government

Peter Aldous Excerpts

Tuesday 20th December 2011 Commons Chamber

[Peter Aldous (Waveney) (Con)]

I am grateful to you, Madam Deputy Speaker, and to the Backbench Business Committee for giving me the opportunity to raise the issue of sprinklers in buildings. I do so because last year a serious fire took place in commercial premises in Lowestoft, in my constituency. Thankfully there were no casualties, but if sprinklers had been installed, the significant impact and upheaval that subsequently affected many people would have been avoided.

Wessex Foods was a large food warehouse and factory located on the south Lowestoft industrial estate, processing raw meat into burgers. On Sunday 14 July 2010, firefighters from the local fire station were called to a fire at the site and arrived in just a few minutes. Unfortunately, the fire had already developed to such a degree that they were unable to go into the building safely. The building was completely destroyed by the fire, which took 10 days to be fully extinguished. At its height, 14 fire engines and 80 firefighters were at the fire, and over the course of the succeeding 10 days almost every firefighter in Suffolk attended the scene.

The impact on the local community was profound. A factory that had been in operation for 30 years has now been permanently closed and razed to the ground, and 150 people have lost their jobs. Despite the size of the building, at approximately 5,000 square metres, and the use to which it was put, sprinklers had not been fitted. If they had been, the outcome would have been completely different and the firefighters would have been back at the fire station within an hour.

There are compelling reasons why the current approach to sprinklers should be reviewed. Where sprinklers are installed, there is a dramatic reduction in fatalities and injuries. There has never been a multiple fire death incident anywhere in the world in a building fitted with a sprinkler system that has been designed to the appropriate standard for the purpose intended.

There is a need to have regard to demographic changes. People are living longer, and older people are particularly vulnerable to the ravages of fire. They may not be able to evacuate a building as quickly as young people. Those who suffer from dementia face added challenges. As a nation we are encouraging older people to continue living in their homes longer. I have no problem with that, but we need to ensure that elderly people, especially those living alone, are provided with an appropriate level of protection.

There has in the past been concern about the reliability and cost of sprinklers. However, in recent years, there have been significant advances in both design and reducing costs. The likelihood of a sprinkler going off accidentally is now estimated to be of the order of 16 million:1.

It is important to have regard to the views and needs of the fire service. Firefighters do a great job, often in hazardous and dangerous circumstances. We owe it to them to reduce risk as far as reasonably possible. With fire service budgets and resources coming under increasing pressure, it is important to focus on measures that make their jobs easier. I am mindful that in rural counties, including Suffolk, we are reliant on a combination of full-time crews and retained crews in market towns. As work patterns change, recruitment of retained firefighters is becoming more difficult. We thus need to ensure that we reduce the risk of major incidents wherever possible. It is also important for Government to listen to local fire chiefs and fire authorities. They are the people on the ground with first-hand experience, who invariably know best, and they advocate more widespread use of sprinklers. In the past year, not only Suffolk but Norfolk, Nottinghamshire, Derbyshire, Staffordshire and Humberside have demanded a more proactive approach.

For commercial and industrial premises, two issues need to be addressed. First, we find ourselves out of step with many other countries. In England, only buildings of more than 20,000 square metres are required to be fitted with sprinklers. In Scotland, that figure is 14,000 square metres, while in Germany it is 1,800 square metres. If we had been in line with the European average, the devastation caused by the Wessex fire would have been avoided. Secondly, there has been too little focus in determining policy up to now on the business disruption that arises from a major fire. In these difficult and uncertain economic times, we can ill afford that. Some 85% of small and medium enterprises that suffer a serious fire never recover or cease trading within 18 months.

It is important that the Government review the new and compelling evidence on sprinklers that is becoming available. This should be taken fully into account in the review of part B of the building regulations due in 2013. It is important that that review takes place on time and is not delayed. The evidence that we need to look at includes feedback from Wales, where the fitting of sprinklers in new residential property has been mandatory since the spring. Next year is the bicentenary of the installation of the first sprinkler system in Britain in the Theatre Royal, Drury lane. Some might say that not much progress has been made in 200 years: I would say that now is the time to redouble our efforts to save lives, to protect the vulnerable and to safeguard jobs.

Oral Answers to Questions

Peter Aldous Excerpts

Tuesday 6th September 2011 Commons Chamber

[Mr Osborne]

I can assure the right hon. Gentleman that I am certainly opposed to any new European tax.

[Peter Aldous (Waveney) (Con)]

T8. The Lowestoft and Great Yarmouth enterprise zone can play a vital role in promoting growth. Will the Chancellor accept an invitation from me and my hon. Friend the Member for Great Yarmouth (Brandon Lewis) to visit our constituencies to see for himself the area’s great potential and to hear from business and council representatives about the work being done to create new private sector jobs?

[Mr Osborne]

I certainly will visit Great Yarmouth and Lowestoft—and on a couple of occasions during this Parliament, I hope. I am delighted that the bid for an enterprise zone from Great Yarmouth and Lowestoft was successful. It was a very impressive bid, involving intelligent use of East Anglia’s offshore energy resources, and I look forward to seeing how work on that is progressing when I visit.