UK Space Industry

Philippa Whitford Excerpts
Thursday 4th February 2021

(3 years, 9 months ago)

Commons Chamber
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Philippa Whitford Portrait Dr Philippa Whitford (Central Ayrshire) (SNP)
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The value of the UK space industry has more than trebled since 2010 and impacts on our daily lives, including the TV we watch, GPS navigation in our cars, and the covid apps on our mobile phones. While these services are delivered by large equatorial satellites, the UK would be likely to specialise in launching small, low-orbit satellites that are used for Earth observation, such as weather patterns, signs of climate damage or tracking shipping.

Scotland is a major player, with almost a fifth of UK space sector employees. Glasgow is the leading producer of micro-satellites, while Strathclyde, Glasgow and Edinburgh universities have innovative research departments. Scottish companies, such as Skyrora and Orbex, are already developing commercial launch vehicles and both have produced low-carbon fuels to minimise their climate impact. Scotland also hosts five of the seven potential spaceports, including Prestwick airport in my constituency. Prestwick already has many advantages as a horizontal launch spaceport, with a 3 km runway, clear weather, good transport links and Scotland’s largest aerospace campus.

The UK space industry is currently held back by the lack of a domestic launch site, but the licensing and regulation system of the Space Industry Act 2018 is still not finalised. The industry is concerned about the technology safeguarding agreement with the US, which could exclude foreign-launched customers from UK spaceports. It would be a failure if they just ended up as long strips of tarmac awaiting the occasional visit of a US vehicle.

The biggest unresolved issue is that companies must accept unlimited liability to indemnify the Government against third-party damage. This is disproportionate, as small satellites would largely burn up on re-entry. Without a cap on liability, though, it is impossible to get insurance, and this is already driving some micro-satellite companies out of the UK. There is also concern at the lack of consultation on moving regulation from the UK Space Agency to the Civil Aviation Authority, especially as the latter has its hands full with taking on aviation safety after Brexit.

It is critical that spaceports stimulate the whole sector, with a boost to research, innovation and manufacturing, and that they inspire more young people to go into the sector. The most important requirement is an overall space strategy so that the opportunities of this global industry are not missed.

Oral Answers to Questions

Philippa Whitford Excerpts
Tuesday 10th November 2020

(4 years ago)

Commons Chamber
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Philippa Whitford Portrait Dr Philippa Whitford (Central Ayrshire) (SNP)
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What discussions he has had with the Chancellor of the Exchequer on increasing support to businesses affected by the covid-19 outbreak.

Peter Grant Portrait Peter Grant (Glenrothes) (SNP)
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What discussions he has had with the Chancellor of the Exchequer on increasing support to businesses affected by the covid-19 outbreak.

Kwasi Kwarteng Portrait The Minister for Business, Energy and Clean Growth (Kwasi Kwarteng)
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The Department has engaged regularly with the Chancellor and other partners across the devolved Governments, including in Scotland, since the beginning of the covid-19 outbreak to make sure that businesses have the right information, guidance and support that they need.

Philippa Whitford Portrait Dr Whitford [V]
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A pub owner in my constituency has seen his business severely impacted by covid-19 restrictions but has been unable to access a bounce back loan, as the bank where he has his business account is not part of the scheme and none of the accredited lenders are accepting new business accounts. Will the Secretary of State widen the number of banks eligible to provide these loans or ensure that the big lenders accept additional business customers, so that small businesses can access the support they need to get through this crisis?

Kwasi Kwarteng Portrait Kwasi Kwarteng
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Obviously, I am not familiar with the exact details that the hon. Lady refers to. What I can point out is that in her constituency of Central Ayrshire, banks have provided something like £37 million of business loans, but I would be very interested to hear the specifics of that case and to see what we can do to meet those concerns.

Whistleblowing

Philippa Whitford Excerpts
Wednesday 3rd July 2019

(5 years, 4 months ago)

Commons Chamber
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Norman Lamb Portrait Norman Lamb
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Shockingly, the BMA abandoned him, and that is a story in itself, which needs exploring further. Not just in the NHS but across the economy, people are often literally on their own, faced by expensive lawyers. I speak as a former employment lawyer and I know what happens in employment tribunals. They were intended as a layman’s court, but they are anything but that these days.

The third story I want to mention is that of my constituent Mark Wright, a successful financial planner at RBS. Things started to go wrong after he raised concerns about unacceptable practices in the bank—this was before the crash. On 17 September 2008, immediately after the collapse of Lehman Brothers, an intranet statement was put up in RBS saying that the group was “well capitalised”. That was clearly an attempt to reassure staff, including staff shareholders, customers and investors that the bank was secure. Of course when the bank crashed, those staff shareholders lost a fortune, and many, including my constituent, believe that they were badly misled by that intranet statement.

Mr Wright’s mental health was destroyed as a result of trying to challenge the bank, as was his career. He made a complaint to the Financial Conduct Authority, which reported his name back to the bank, for goodness’ sake. The FCA was later criticised by the Complaints Commissioner. I pursued his complaint with the FCA and it denied knowledge of the intranet statement repeatedly to me, yet an internal FCA email has emerged, after a subject access request to the Complaints Commissioner. It was dated 14 March 2014 and it said

“the intranet notice that Mr Wright refers to was online between 17 September 2008 and January 2009… as staff used it to take reassurance that all was well which would tend to support Mr Wright’s allegations”.

That was an email within the FCA, yet we were never informed of that email or of that finding in that explosive document.

Clearly, the FCA has a copy of that intranet statement, yet it will not or cannot disclose it to us. The FCA says that the law does not allow it to do so. RBS, which is part state-owned, will not disclose it, yet clearly it is in the public interest that it should be disclosed. I believe I was misled by Andrew Bailey, the chief executive of the FCA, who told me, in effect, that Mark Wright’s allegations offered nothing that was not already in the public domain and he referred to an intranet statement by Fred Goodwin, which he said had been

“in the public domain for nearly 10 years”.

Yet the intranet statement has not ever been in the public domain. The Treasury Committee, which had looked into this, had never received a copy of it. So I was misled, and we have a regulator that is too close to the banks; that failed to protect Mr Wright’s disclosure or his identity; that, crucially appeared to fail to take the allegations about the misconduct of that bank seriously; and that cannot or will not put a crucial statement into the public domain. Let us just think about the damage caused by bankers in the run-up to the crash. Had we empowered people like Mark Wright to do the right thing, rather than destroyed them and ignored them, we might just have prevented the disgusting behaviour and greed of bankers, and we might now have seen some of those responsible for destroying our economy behind bars. As it happens, they have got away with it.

The fourth and final story is of foster carers throughout the country who are frightened to raise concerns about any behaviour from the council that they deal with. Of course, the council refers children into their care, so if a foster carer is concerned about the behaviour of a social worker and expresses concerns, that council can just stop the flow of children to them, and so their income stream—their ability to earn a living—disappears. This has a chilling effect on the willingness of any foster carer to speak out about child protection concerns, because they fear losing their livelihood.

Philippa Whitford Portrait Dr Philippa Whitford (Central Ayrshire) (SNP)
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Does that not highlight how, whether in finance, the NHS or anywhere else, this happens in situations with a power differential and a hierarchy? Someone has power over someone else and can make them lose their job or lose what they love doing, so there is a constant threat.

Norman Lamb Portrait Norman Lamb
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The hon. Lady is absolutely right. We need effective legislation to redress that imbalance of power.

All the cases I have outlined highlight the value and importance of enabling people to expose wrongdoing. Effective protection for brave people who decide to speak out is first of all vital for that individual—they should be celebrated, not denigrated—but it also benefits us all if we give them protection. As the right hon. Member for Sutton Coldfield (Mr Mitchell) said earlier, this is actually an issue of good governance. It is about keeping organisations honest; protecting businesses from fraud, crime and other wrongdoing; and maintaining the highest possible standards. Good protection for those who speak out acts as a deterrent against bad behaviour; closed, secret cultures, which cover up wrongdoing and destroy those who try to speak up, deliver poor public services or cheat customers in the private sector, particularly in financial services, or lead to the toleration of bullying, sexual harassment and so on. So often, non-disclosure agreements are the final step that keeps the wrongdoing secret, slamming shut the door on proper scrutiny. Things need to change.

The question is: does the current law work? Palpably, from the examples I have given, it is clear that it does not. First, it leaves out key groups—not only foster carers—that simply are not covered by the legislation. It leaves out job applicants, volunteers and priests. Just think about the abuse of children by so many priests over the past few decades. Had priests been given the protection to speak out, perhaps we would have prevented some of that dreadful abuse. The legislation leaves out non-executive directors and trustees. It leaves out relatives and friends of the whistleblower when they are victimised because of what the whistleblower has done. It leaves out someone who is victimised by being presumed to be a whistleblower—if a company thinks that someone has spoken out, even if they have not, and does something like dismissing them, that person has no rights under the legislation because they are not actually the whistleblower. That is a ludicrous situation.

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Stephen Kerr Portrait Stephen Kerr
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Whistleblowers are heroes, not villains—although sometimes there are villains in their stories—and they should be treated with respect and listened to. Sometimes they are looking for no more than validation of what they have brought to the attention of the authorities. Whether they should have a financial award, or whatever, is a side issue; the real issue is how they are perceived and responded to.

Philippa Whitford Portrait Dr Whitford
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The hon. Gentleman raises financial rewards. Does he think they might make the personal situation for a whistleblower within a workplace worse, because it would be easy to ascribe their actions to their seeking a financial benefit as opposed to genuine altruism?

Stephen Kerr Portrait Stephen Kerr
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I completely understand, and am sympathetic to, that point. We need to work together to establish this independent office of the whistleblower. Sometimes whistleblowers pay such a heavy price in terms of the financial consequences that flow from their actions that perhaps there is a case for compensation, but I have not made up my mind. We have to hear more evidence and have a wider discussion in Parliament about these issues. It is absolutely clear, however, that whistleblowers need somewhere safe to go, and to be supported and have their cases properly advocated in the face of power, authority and bureaucracy.

I mentioned the problem of blacklisting. One person told us how he had been blacklisted for speaking up. He had reported criminal activity to the employer. Instead of dealing with the issue, the employer dealt with the person who had spoken up in the first place and coerced them to stay silent. It is bad enough to have something criminal going on within one’s business, but then to cover it up, and contrive to force those who are willing to speak up for the reputation of the organisation or business to leave, is clearly unacceptable, and then to seek to blacklist them so that they cannot work in a profession in which they have trained and acquired qualifications is truly shameful.

The complex legal framework surrounding whistle- blowing covers too few people. It is complex and legalistic. Many of the whistleblowers whom we met were not recognised as whistleblowers by the law. The tests that are necessary to stop people abusing whistleblowing are too stringent and do not recognise complexity. One employee brought up issues of racism at work and the flouting of HR rules. The employer, instead of recognising the whistleblowing, tried to diagnose a mental health issue, sending the employee on medical leave. The company-appointed psychologist then broke confidentiality to speak to the managers of the business. Although regulators confirmed that the employee had a point, they were dismissed and have received no justice.

Whistleblowers can be dragged through the courts, with mounting costs and unending hassles. For many, their cases have consumed their lives. It may be thought that the best advice such a person could be given would be “Move on and forget it”, but that is not justice; it is unjust. While it might be said to have been good and well-intentioned advice, is that really the way in which we in this place want the affairs of our country—economic, and relating to public service—to be dealt with? I really do not think so.

However, it is equally important not to limit the definition of whistleblowers to employees. As I said earlier, and as was mentioned by the right hon. Member for North Norfolk, many categories of people should have the protection to which whistleblowers are legally entitled. We must ensure that, when they blow the whistle, they are given proper protection under the law—and the law is too vague in this regard.

When an individual faces the full force of a corporate or public sector legal department, it is a complete mismatch. Public corporations should be mandated to disclose legal costs to shareholders in such cases, and the same should be true of public authorities. They should have to make clear and transparent the costs of fighting whistleblowers that will be borne by the taxpayer. Some of the estimates of the costs that have been incurred by public services are absolutely mind-blowing and wholly disproportionate.

One brave whistleblower in Scotland had evidence of HR malpractice. It should have been a simple grievance dealt by the organisation, which should have been pleased to receive the feedback from that person. Instead, the person and their family, who also worked there, were victimised. They cannot afford legal representation, and will have to argue their own case at a tribunal against a public sector legal department with an expansive budget.

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Philippa Whitford Portrait Dr Philippa Whitford (Central Ayrshire) (SNP)
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I pay tribute to the right hon. Member for North Norfolk (Norman Lamb) for securing and opening this debate, and to the other members of the APPG for their work on this topic.

Bristol Royal, Mid Staffordshire, Morecambe Bay, Liverpool, Gosport, Whorlton Hall—all shocking scandals of health and social care. In every one of those scandals, there was a whistleblower years before it came out who tried to raise concerns and protect people. They were ignored, and that is often the least that happens, as they are often undermined, victimised or dismissed.

Bob Stewart Portrait Bob Stewart
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I suspect that the hon. Lady might be going on to say that those people were then blacklisted; they could not get another job in the health service afterwards, for some reason that they could never actually ascertain.

Philippa Whitford Portrait Dr Whitford
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I thank the hon. and gallant Gentleman for his intervention. As a medic myself, it is clear that we are advised by the General Medical Council, the Royal College of Nursing and various official bodies that we must speak up—that we have a duty to speak up. However, the landscape we look at is littered with broken careers and often broken people.

The problem is that whistleblowers think they are protected because they have heard about whistleblower protection, but it simply does not exist. The right hon. Member for North Norfolk talked about “brave people” speaking up. People should not have to be brave to raise concerns. If all people see is others ahead of them who have been driven and hounded out of their career, and who have maybe ended up with mental health issues or worse, then that is a big, black, threatening cloud—keep your mouth shut, keep your nose clean, walk by on the other side. The problem is that that results in more suffering and more death.

There are two aspects to this issue: business and industry, which is represented most commonly by the finance sector; and public services, which are most commonly represented by the NHS. Those two sectors—finance and the NHS—probably generate the biggest number of scandals and whistleblowing cases, and therefore specific treatment is required in those industries to invite whistleblowers to come forward and protect them.

While there is UK-wide regulation of finance, health services are devolved. The four health services are struggling with this and working to improve whistleblowing. After the Mid Staffs scandal, Sir Robert Francis highlighted that in Mid Staffs—indeed, this was an issue in some of the later scandals—there was an obsession with becoming a foundation trust. The hon. Member for Stirling (Stephen Kerr) and others have talked about why people cover things up. Whether it is a high-profile business or a public service that has been corporatised, there is a drive to remain shiny and perfect on the outside, instead of admitting a problem and trying to fix it.

Having produced his report, Sir Robert Francis set up the “freedom to speak up” guardians in hospitals and the national guardian. In Scotland, the local person in health boards—we do not have trusts—is a specific non-executive director who is a whistleblowing champion. The advantages of a non-executive director is that they are on the board, with a clear and loud voice, and they are not an employee, but they are part of the system. The “freedom to speak up” guardians are employed by the trust, so they are operational—they are a person to go to—but they are also an employee. There are issues at the trust and health board level with how the guardians or champions themselves are protected. Perhaps we need not only an independent national office but an independent system. In the NHS, that might be people who are taking responsibility for safety or healthcare services information. Unfortunately the legislation on that is in the Brexit long grass, but I hope it will eventually come forward.

There is a national guardian in England, but it does not have statutory powers. Scotland has set up an Independent National Whistleblowing Officer, who is basically the public services ombudsman. They are completely separate—they are outside the system—and they have statutory powers, which is important. A reporting and advice line was set up back in 2013, so that if people were afraid to report locally or were not getting anywhere, they could report to that phoneline.

Stephen Kerr Portrait Stephen Kerr
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The hon. Lady makes a good point about what is happening in Scotland now, but it is worth mentioning the evidence that my APPG received from Police Scotland and NHS Scotland. For example, the lessons that NHS Scotland has learned in Inverness are being taken on board by public authorities in Scotland. The size of our country allows us to do things a bit more quickly and deftly, but undoubtedly the lessons of the past are being learned and implemented, and I applaud NHS Scotland and Police Scotland for that.

Philippa Whitford Portrait Dr Whitford
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So small is beautiful after all—that is excellent. The evidence is there; it has been there for years. The problem is that action has not been taken.

The Independent National Whistleblowing Officer has already developed, published and is consulting on standards. The standards will look at bullying and harassment—an issue that has come out in NHS Highland—and patient safety issues, and they can empower reporting and review. They include primary care and social care. They include not only trainees like Dr Chris Day, who was appallingly treated, but students and volunteers. No one should be limiting and excluding the person who saw bad and dangerous behaviour from coming forward and doing something about it.

Every health board will have to report on the actions they have taken to remedy the findings of an investigation. Health boards must investigate and record how they investigated. They must record the action they took, and they must show any improvements that they developed from that investigation. Statistical analysis will be part of an annual report by the board every year, which will look for themes, trends and patterns. This is—and I welcome the fact that the hon. Gentleman recognises it—an attempt to make this work by having an independent office.

The results of a survey of health and social care staff in Scotland—and they are health and social care staff now—showed that two thirds felt they would have the confidence to speak up and raise a concern. That is contrary to the fact, as Members have said, that approximately a quarter of staff in England would have the confidence to speak up. As a doctor, I would like to see the figure an awful lot closer to 100%.

The Independent National Whistleblowing Officer will have among their statutory powers the ability to take disciplinary procedures against anyone who victimises a whistleblower. That is also critical because, at the moment, as we have heard, the whistleblower suffers, and the person who caused the suffering does not.

Regardless of how the different nations of the UK are trying to tackle whistleblowing issues within their own public services, particularly their NHS, we need to deal here with the financial and other UK regulation systems. In particular, the Public Interest Disclosure Act is the overarching legislation for whistleblowing, covering all sectors. It was actually 21 years old yesterday. It was a private Member’s Bill, so perhaps it did not really have the scrutiny it should have had. It was groundbreaking at the time, but the UK is now well behind the pack, including countries such as Ireland, and, frankly, it needs to catch up. As has been highlighted by the hon. Member for Ellesmere Port and Neston (Justin Madders), it does not protect the whistleblower; it only allows them to go to an employment tribunal after they have suffered huge detriment, with only a 3% success rate, and the tribunal is often used to create more damage and victimisation.

The whistleblowers I have been working with have asked for an independent, free-standing public interest protection Act—not part of employment law, but free-standing—that should do a few things. It must ensure investigation of the concern, because the concern often disappears in all the fighting. The whistleblower should be protected from the point at which they raise their concern. It should cover all those who would be in a situation to report, including trainees or non-workers. It should prohibit detriment, and there should be the ability for civil wrong or criminal offence actions to be taken.

This requires an independent agency or body, and it should also cover regulators. This is not just about the FCA or the FRC, because the Care Quality Commission is in the frame for Whorlton Hall, in that it did a report that described it as not having a problem when people had actually raised issues. If we take the heat out of whistleblowing and make reporting normal, as we have done with Datix systems in the NHS—making this not whistleblowing, but just part of normal duties—then we can change this. Whistleblowers must be valued. In the NHS, it is a matter of patient safety, and that is critical.

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Kelly Tolhurst Portrait Kelly Tolhurst
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The whistleblowing legislation at the moment is regarded as proportionate, but as new evidence comes to light and as things change, it is right that we keep these policies under review, and it is right that we have these debates in the House of Commons so that the Government can be challenged over what is happening now and how we can improve.

Philippa Whitford Portrait Dr Whitford
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It has come out clearly from this debate that PIDA only allows 3% of people to get some redress—it is only some redress—so surely we require legislation that protects the whistleblower right at the start of the process, rather than trying to mop up afterwards.

Oral Answers to Questions

Philippa Whitford Excerpts
Tuesday 11th June 2019

(5 years, 5 months ago)

Commons Chamber
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Kelly Tolhurst Portrait Kelly Tolhurst
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It is true that Members across the House care deeply about our Post Office, and so do the Government. The number of branches remains at its most stable for a decade. To give the hon. Lady some reassurance, my meetings on Thursday will include one of the formal meetings held quarterly—with ministerial oversight—between Post Office Ltd and the National Federation of SubPostmasters to tackle some of the key issues.

I reiterate at the Dispatch Box that Post Office Ltd will be undertaking a review of pay, which will report back in the autumn. I agree that any sub-postmaster who wants to take on a post office franchise must be able to do so in the knowledge that it is financially viable. We are supporting them, and the Post Office is supporting them, to serve their communities.

Philippa Whitford Portrait Dr Philippa Whitford (Central Ayrshire) (SNP)
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10. What recent discussions he has had with the Chancellor of the Exchequer on fiscal support for businesses in Scotland preparing for the UK leaving the EU.

Greg Clark Portrait The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)
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The UK Government have provided the Scottish Government with almost £100 million to prepare for EU exit, alongside funding to support businesses with training and IT improvements. As we have heard in this question session, we have also supported businesses in Scotland through the city deals programme, including over £100 million for the Ayrshire growth deal in the hon. Lady’s constituency, which I know she welcomes.

Philippa Whitford Portrait Dr Whitford
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I do welcome that, but an Ernst & Young report shows that, although 74% of Scottish firms have taken steps to get ready for Brexit, only 8% feel fully prepared. As 30% of manufactured goods go to the EU, will the Secretary of State accept the Institute of Directors’ call for £750 million to provide a Brexit advice service for small firms?

Greg Clark Portrait Greg Clark
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I work closely with the Institute of Directors and other business organisations to make sure that information is available to their members and others. We will continue to do that over the months ahead, but it remains my ambition that we should have a deal that allows us to continue the successful trade that the hon. Lady mentions.

Tuition Fees: EU Students

Philippa Whitford Excerpts
Monday 29th April 2019

(5 years, 6 months ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

Each Urgent Question requires a Government Minister to give a response on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Chris Skidmore Portrait Chris Skidmore
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I thank my hon. Friend for his comments. When it comes to tropical diseases, future scientific research on climate change or the opportunities that agri-tech might present to developing countries, it is absolutely right that we look at what we can do to play our part to help the poorest countries across the globe in those endeavours. I will be happy to discuss with him, and the Liverpool School of Tropical Medicine when I am next up in Liverpool, any potential policy initiatives that he might have in this sphere.

On the point about a transition period, the deal is a transition. We will be able then to get round the table and open up the square brackets around our future relationship, which are currently closed because of Members’ indecision and failure to back this EU deal—the EU helped to put it together and backs it also—so that we can move forwards together, safeguarding scientific partnerships and working on education partnerships.

Philippa Whitford Portrait Dr Philippa Whitford (Central Ayrshire) (SNP)
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In many of his responses, the Minister has seemed to imply that being a member of the EU was stopping the UK having people from elsewhere in the world, but that is up to the Home Office here. He must recognise that the workforce is the biggest problem for all four UK health services. Medical and dental degrees take five years. Does he seriously think people will come here, pay enormous fees and then at three years roll the dice on whether they get a continuing visa?

Chris Skidmore Portrait Chris Skidmore
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It is important to reflect that leaving the EU provides us with an opportunity to decide our own immigration policy—we are beginning that work for 2021 onwards, which is why we have the immigration White Paper and consultation—and the freedom to decide our own immigration policy. On the future position of fees, obviously we have been in the EU and have reciprocal fee requirements, but we also want to make sure that international students are not discriminated against, as they currently are—the hon. Lady cannot deny that international student fees are significantly more than those for EU students. It is important that we listen to universities about what future schemes for immigration and student exchange should look like.

Community and Sub-Post Offices

Philippa Whitford Excerpts
Wednesday 27th March 2019

(5 years, 7 months ago)

Commons Chamber
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Gavin Newlands Portrait Gavin Newlands
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I do not need to add to my hon. Friend’s contribution; the Minister has heard him.

Philippa Whitford Portrait Dr Philippa Whitford (Central Ayrshire) (SNP)
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Is it not bizarre that the Department for Work and Pensions has pushed people to open bank accounts away from the post office in order to receive benefits, when they actually end up back at the post office? Maybe we should make post offices more secure to provide access to cash.

Gavin Newlands Portrait Gavin Newlands
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I agree 100% with my hon. Friend that the entire exercise is, quite frankly, a piece of nonsense; she makes her point well.

The fees that banks pay to Post Office Ltd, which in turn compensates its sub-postmasters, to carry out this work have been ridiculously low––so much so that the majority of these transactions are actually carried out at a loss to the sub-post office. For example, for every £1,000 of cash accepted over the counter, Post Office Ltd is paid 24p. There is no differential between the commissions paid for coins and for notes, so in effect if the post office had to count 100,000 pennies, it would get to keep 24 of them as payment. To be clear, Post Office Ltd also pays a transaction fee, but the combined fees are insufficient to cover those costs. It is clear that the current deal is deeply unfair and unsustainable.

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Kelly Tolhurst Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)
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I congratulate the hon. Member for Paisley and Renfrewshire North (Gavin Newlands) on securing today’s important debate on community and sub-post offices. I am sorry that I do not have much time, but I will try to respond to some of the issues that have been raised. I am aware of his close interest in this subject, as we exchanged correspondence on this very issue last October. For centuries, post offices have been the centre of social life in our communities, towns and villages across the UK. This is why, in our 2017 manifesto, we committed to safeguarding the post office network and supporting community and sub-post offices, recognising the key role that post offices play in their communities.

At this juncture, it is worth setting out the overall context within which the Post Office operates. Although the Post Office is publicly owned, it is a commercial business operating in competitive markets. The Government set the strategic direction for the Post Office—to maintain a national network accessible to all and to do so more sustainably for the taxpayer—and allow the company the commercial freedom to deliver that strategy as an independent business.

Between 2010 and 2018, we provided nearly £2 billion to maintain and invest in a national network of at least 11,500 post offices. That extensive network gives the Post Office a unique reach among service providers. The Post Office currently meets and exceeds all Government accessibility targets at a national level.

The Post Office’s financial performance has improved significantly. Consequently, Government funding required to sustain the network has drastically decreased and is set to decrease even further in future years.

Philippa Whitford Portrait Dr Whitford
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Will the Minister give way?

Kelly Tolhurst Portrait Kelly Tolhurst
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I will not give way—I have only six minutes left.

Government investment has also enabled the modernisation of over 7,500 branches, added more than 200,000 opening hours a week and established the Post Office as the largest network trading on Sunday.

I encourage hon. Members to look objectively at those facts. They clearly show that the network is at its most stable in decades. Maintaining a stable network of community-status branches is at the heart of the Post Office’s social purpose. They are effectively the last shop in the village.

Almost half the 6,000 rural post offices have community status, including some of the post offices in the constituency of the hon. Member for Paisley and Renfrewshire North. In those areas, post offices are regarded as part of the fabric of community life. For example, a report by Citizens Advice on the use of the rural post office network found that seven out of 10 consumers bought essential items at a post office and almost 3 million shoppers visited a post office on a weekly basis.

The Post Office recognises the unique challenge of running a community branch and supports the postmasters who run them differently from the rest of the network. Those postmasters receive fixed remuneration, as well as variable remuneration, to reflect their special circumstances.

In addition, the Post Office delivered almost £10 million of investment via the community fund between 2014 and 2018. That enabled community branches to invest in their associated retail businesses. The Post Office has now launched a smaller community branch development scheme that will benefit an anticipated 700 branches. Let me be clear: the Government and the Post Office will continue to support rural post offices.

The hon. Gentleman will be interested to hear that, as part of the post office network transformation programme, 10 of the 14 branches in his constituency have been modernised. Modernisation makes post office branches simpler to run for retailers and improves services for customers through new modern environments and longer opening hours. Modernisation has led to 200 additional opening hours a week in the hon. Gentleman’s constituency. Five branches are also open on Sundays, delivering greater convenience to consumers.

Looking more widely at the post office network in Scotland, there are around 1,400 post offices, 66% of which are delivering these important services to communities in rural locations. Scottish branches account for around 11% of branches that have been modernised, creating an additional 24,000 opening hours a week as a result of the network transformation programme. There are around 470 post office services in Scotland that have community status, and around £800,000 has been provided to those branches from the Post Office community fund.

When a branch closes unexpectedly, the Post Office works hard to maintain or restore rural services in Scotland. For example, post office services have been restored at Eyemouth, a rural branch in the Scottish borders, which reopened in February after temporary closing last October and is now providing 122 hours of service per week. Muir of Ord post office, which has been closed since December 2016, is set to reopen next month, and that branch will offer double the service hours previously provided.

Hon. Members have raised concerns about the rates of remuneration paid to postmasters, especially for banking services. Although the contractual relationship between Post Office Ltd and postmasters is an operational matter, I care deeply about the issue and I am determined to make sure that running a post office remains an attractive business proposition.

The Post Office has invested significantly in its branch network to enable its branches to operate more effectively in the retail environment. However, the Post Office recognises that there are some locations where that approach is not viable. In those locations, fixed remuneration remains. The Post Office is not complacent and periodically reviews the rate of return on all services for postmasters to reflect the time and effort involved. Post Office Ltd will also use, where possible, the renewals of commercial contracts as opportunities to negotiate improved rates that can be shared with postmasters.

I want to touch on the issue of Crown franchising, in particular the assumption that franchising means closing and downgrading services. Those criticisms are misplaced. Post office branches are not closing; they are being franchised to other sites. In fact, 98% of post offices across the UK are successfully operated by independent businesses and retail partners.

I assure the hon. Gentleman that all post offices across the network are of the utmost importance to this Government and to me as the Minister. We recognise their value and importance to the community, residents, businesses and tourists in both rural and urban parts of the UK. We will continue to honour our manifesto commitment so that the post office can thrive and remain at the heart of our rural and urban communities.

I thank the hon. Gentleman for raising the issue. [Interruption.] I cannot hear him, sadly, because I have a cold, but I am always happy to talk about post offices at any time and happily welcome further debates.

Oral Answers to Questions

Philippa Whitford Excerpts
Tuesday 19th March 2019

(5 years, 8 months ago)

Commons Chamber
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Claire Perry Portrait Claire Perry
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The switchover has already started. The priority is smart meters that have gone dumb through customers switching, because we do not want there to be an impediment to switching. The commitment is unchanged: it will be rolled out completely by the end of 2020.

Philippa Whitford Portrait Dr Philippa Whitford (Central Ayrshire) (SNP)
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A common feature of all patient safety scandals is that whistleblowers were ignored, intimidated or lost their careers, and were not protected by the Public Interest Disclosure Act 1998. Will the Secretary of State bring forward legislation for all sectors to ensure that that concern is investigated and that whistleblowers are protected?

Kelly Tolhurst Portrait Kelly Tolhurst
- Hansard - - - Excerpts

The hon. Lady addresses a very important area that I am extremely concerned about. The Department for Business, Energy and Industrial Strategy is working closely with the Department of Health and Social Care on how we can best strengthen the protection for whistleblowers within the NHS to support families and staff who raise concerns. This is a key area for us and I will continue to communicate with her on it.

Draft Recognition of Professional Qualifications (Amendment Etc.) (EU Exit) Regulations 2018

Philippa Whitford Excerpts
Monday 4th February 2019

(5 years, 9 months ago)

General Committees
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Philippa Whitford Portrait Dr Philippa Whitford (Central Ayrshire) (SNP)
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I declare an interest: I am a breast cancer surgeon and my husband is a GP. Although this statutory instrument is not focused on health and health-related professions, a lot of the issues are similar. The benefits that we are talking about all evolved to allow freedom of movement. The problem is that trying to hang on to some of them as we—sadly—celebrate the loss of freedom of movement is quite difficult.

The hon. Gentleman opposite—I apologise; I do not know his constituency, and I have lost my glasses so I cannot even look it up—talked about reciprocity. That is what we have had; people have been able to move to the EU, whether they are in the medical profession or one of the other professions, and EU citizens have similarly been able to come here.

In fact, we have a great need for people to come here. We have workforce shortages in many professions, including medicine, engineering and other STEM areas. We therefore do not want barriers. The burden may fall on individuals, because regulators will find it harder to recognise qualifications, to prove fitness to practise and to prove that someone has no sanction outstanding. The danger is that people who are mobile in their profession will simply choose to go somewhere else, because the workforce shortages are Europe-wide.

I welcome the fact that those who are already here will not face any loss of their qualification, that for those who have already applied, the process will go on to complete, and that those who come here on a transitory or occasional basis have a year in which they can still continue, but what will we do afterwards? In many professions and industries, people come for quite short periods of time to work in the UK, and vice versa. The danger is that we will make it difficult for people at the top end of the medical profession, the oil industry and the construction industry.

My biggest concern is about the loss of the IMI, which will make the processing more difficult, and of the alert mechanism. From a medical point of view, the alert mechanism has been critical, but there are other professions in which it is important to know that someone has sanctions against them before they are recognised. We are losing those benefits of being in Europe. I echo the comments of the hon. Member for Newcastle upon Tyne Central: we are having to rush this because of the threat of leaving the EU without any kind of deal. I abhor that. That is not how it should be done, and the Government should take it off the table.

In Scotland, we need people in general, and we certainly need people from the professions. Anything that makes it harder for our industries or public services to recruit and retain people will make life more difficult.

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Lord Harrington of Watford Portrait Richard Harrington
- Hansard - - - Excerpts

I envisage that there could be those circumstances, depending on the individual EU member state, as I explained, but I have every reason to believe that there will not be. The only way that that could not happen is for there to be no crashing out and for there to be a proper arrangement, which I am sure everybody wants to be the case. The hon. Lady has made valid point; I would not say it was a ridiculous point.

Philippa Whitford Portrait Dr Whitford
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Have British citizens been given the advice that they should apply to have their UK qualification recognised before the end of March to ensure that they do not run into trouble?

Lord Harrington of Watford Portrait Richard Harrington
- Hansard - - - Excerpts

I am not sure of the answer to that, so I will drop the hon. Lady a note about it tomorrow, if that is acceptable. If she wishes to discuss it further, I would be happy to do so.

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Lord Harrington of Watford Portrait Richard Harrington
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I apologise for my misunderstanding. I understand exactly what the hon. Lady is saying, and I will happily clarify that issue for her in the next day or so, if that is acceptable.

Philippa Whitford Portrait Dr Whitford
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I totally understand that the whole point of freedom of movement is that we have no idea who is here and who is in Europe, but I suggest that when taking this issue forward, the Minister might consider publicity, whether through social media or alerting British consulates and embassies in the host countries. With so little time to go, it is really important that people are given warning.

Lord Harrington of Watford Portrait Richard Harrington
- Hansard - - - Excerpts

That is a sensible suggestion. However, all of this information was in the technical notices that were distributed, I think, in October last year, although one might say that people do not read them. There was a lot of information in those notices, but I will look into how we can make sure that there is an easily acceptable and consumer-friendly way of getting that information. I accept that technical notices are somewhat technical, and might be quite dry.

HELMS and the Green Deal

Philippa Whitford Excerpts
Tuesday 23rd October 2018

(6 years ago)

Westminster Hall
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Westminster 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.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Gavin Newlands Portrait Gavin Newlands (Paisley and Renfrewshire North) (SNP)
- Hansard - - - Excerpts

I beg to move,

That this House has considered home energy and lifestyle management systems and the Green Deal.

It is a pleasure to see you in the Chair, Mr Robertson. Before I start, I should apologise to you and those present: this morning’s speech will be brought to you by Halls Soothers—although other sweets are available—so if I start coughing, please bear with me.

With winter approaching, the extra cost of heating a home will be a concern not only for income-poor families but for many of the Prime Minister’s “just about managing” families. Fuel poverty is still a reality for far too many in society. Unfortunately, many of those households live in energy-inefficient homes. That fact, combined with stagnant incomes and the impact of the Government’s austerity measures, leaves some households vulnerable to increasingly unaffordable energy bills.

To compound that, hundreds of my constituents now have unaffordable and hugely inflated bills thanks to the UK Government’s bungled green deal scheme. The green deal was a flagship scheme intended to give homeowners access to cheap loans to modify and improve home energy efficiency. The loans were to be paid back through monthly energy bills, which were to be cheaper due to the green investment made in people’s homes. That credit, however, was often sold as grant funding to confuse consumers.

The fundamental rule, or “golden rule” as it is known, was and is that the savings on bills should always be equal to or greater than the cost of the work. The idea was that consumers would be able to receive energy improvements in effect for free, reducing energy consumption and breaking free from spiralling energy bills. Not only would the house save money and have a lower carbon footprint but, it was hoped, such schemes would reduce carbon production throughout the country, helping to achieve the Government’s carbon reduction targets.

A scheme that empowers households to get out of fuel poverty and have warmer homes is always welcome, but for far too many this scheme failed, and failed utterly. The Government’s ambitious aims looked good on paper, but they fell well short and, as the result of a weak and ill-conceived framework, families were left far worse off. Rather than “pay as you save”, constituents were left paying more and saving nothing or, in far too many cases, actually footing the bill for fraud. Investment in energy savings should be a national priority, and I think that everyone across the House would agree that we need to meet fuel poverty targets and reduce carbon dioxide emissions, but elements of the scheme were so badly designed and involved such ineffective regulation that for many it became a nightmare.

I should point out, before the Minister does in her summing up, that plenty of businesses and providers did not abuse the system, with the result that many consumers benefited from the scheme, as was originally envisaged. The green deal, however, was allowed to be abused by criminals who preyed on and exploited households, many of them vulnerable. Ultimately, regardless of one’s politics or trust in any Government, no one thinks they are about to be scammed when a Government logo is on the paperwork. We will come back to the Government, who were in effect the enablers of this great fraud, but the actual fraudsters themselves were Home Energy and Lifestyle Management Systems, or HELMS.

The behaviour of Home Energy and Lifestyle Management Ltd was inexcusable. The use of classic dodgy salesman tactics—overstaying in customers’ homes to intimidate them into a sale, blatant falsifying of figures, misleading documentation, fraudulent marking of signatures, insistence on inappropriate works and outright lying to elderly vulnerable individuals—has pushed victims into deeper fuel poverty and debt, with no access to a quick and effective remedy. In the majority of cases that I have seen, individuals were sold solar panels regardless of need or suitability. Once again misled on finance, those individuals unknowingly sold their ownership of the solar panel feed-in tariff to offset the up-front cost of works. Ultimately, that meant that households had solar panels on their roof, were possibly still liable for maintenance and servicing, and yet received no financial benefit.

More unbelievably, the managing director of the now liquidated company HELMS, Robert Skillen, not only is a director of PV Solar Investments Ltd—the separate company set up to receive HELMS’s customers’ feed-in tariffs that, shamefully, is still trading and is in receipt of mis-sold victims’ feed-in tariffs—and the man with the brassiest of brass necks, but is now looking to profit from “mis-sold energy claims” through a company called True Solar Savings, despite it not being authorised by the Claims Management Regulator. He has fleeced us once, but now wants to assist us in getting redress from his own company’s mis-selling. The man has zero shame, and his outrageous lack of recognition of his culpability is astounding.

Given Robert Skillen’s central role as managing director of HELMS, therefore, I strongly advise against any business interactions with that man or his companies. Robert Skillen and HELMS, however, were enabled by the UK Government, but my constituents and many others throughout the country are now paying the price for the Government’s casual short-sightedness.

Philippa Whitford Portrait Dr Philippa Whitford (Central Ayrshire) (SNP)
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My constituency, like others, has been affected. One-hundred and sixty-nine of my constituents have been affected, and what was striking about the public meetings that we held was the proportion of elderly people in their 70s and 80s—one with dementia, another with almost total blindness—who were tricked into this. It was not, on any level, the selling of solar panels; it was fraud.

Gavin Newlands Portrait Gavin Newlands
- Hansard - - - Excerpts

I could not agree more with my hon. Friend. We are not in a competition, but although the issue affected 169 people in her constituency, in mine 293 households received HELMS panels, out of more than 3,000 in Scotland. Like her, I held my first public meeting on the issue earlier this month. As we know, attendance at such meetings can be a bit of a hit-and-miss affair, but although the subject was rather niche, targeting households with solar panels, about 120 people were in attendance. The meeting was full of individuals with similar stories of being taken advantage of by outrageous mis-selling, pressured into agreeing to inappropriately costed works or told blatant lies for a quick sale.

Two of my constituents, Mr and Mrs Murray, were particularly affected. A HELMS salesman knocked on their door in Linwood—a part of my constituency particularly affected by the mis-selling—and stated that it was to have funding available to invest in homes and energy. He had pressured the Murrays by insisting that the funding was time-limited and finite. They were told that they should have loft insulation, exterior wall insulation and solar panel works. He mentioned no tie between finance and their energy bills, and nothing about a debt tied to their property until 2039 at £1.47 a day.

Gavin Newlands Portrait Gavin Newlands
- Hansard - - - Excerpts

I could not agree more with my hon. Friend, the chair of the HELMS all-party group here at Westminster. I shall come to this, but the building warrants issue is complex. In fact, I apologise in advance for making a longer speech than I am accustomed to, because of so many such complexities, building warrants being just one of them.

Back to Mr and Mrs Murray. The HELMS salesman tied them into an additional finance agreement with a personal finance company for a debt repayment of more than £9,000 to meet the expense of the solar panel installation. My constituents acknowledge that they were aware of that finance, but were told by the salesman that they would receive feed-in tariff payments quarterly to offset that cost, as well as having the benefit of lowered energy consumption and billing. However, such was the unfathomable incompetency and mis-selling of HELMS that when the Murrays applied for their feed-in tariff payments, they were missing essential documentation for the process. They pleaded with HELMS, which remained unco-operative and, as we all know, then went into liquidation, leaving my constituents helpless.

It gets worse. In January 2016, the Department of Energy and Climate Change, as was, introduced a statutory instrument requiring all existing renewable energy installations with certification issued before 15 January 2016 to submit their feed-in tariff application by 31 March 2016 or be unable to claim any feed-in tariffs or export payments. The UK Government not only failed to protect my constituents from the unscrupulous criminal behaviour of HELMS, despite accrediting it as an approved provider, but went on to implement procedures that would prevent my constituents from ever receiving payment for the solar panels that they pay £88 a month for. Mr and Mrs Murray have gone from paying £90 a month for energy to paying £220 a month, all under a Government incentive.

Many people did not know either that a 25-year debt would be tied to their house, potentially making it difficult to sell. An even bigger impediment to selling houses is that many households—possibly the vast majority—have no building warrant for the insulation that was installed on the exterior of their property. They were not informed of the need to apply for a warrant, and now not only might struggle to get one but may have to cough up the statutory uplift of 300% extra for a late application.

To compound that, in some cases when homes generate on-site renewable electricity via generating equipment such as solar panels, their import supply meter is incompatible with and affected by that on-site generation, sometimes resulting in inaccurate meter readings and billing issues. The current metering system and equipment was designed and configured to record meter electricity flows from the distribution network to consumer premises, but on-site generation has in some cases resulted in metering difficulties at premises where it is used, which are increasing in number.

Two things can happen. First, the import supply meter can run backwards. Since the ’80s, to prevent tampering, meters have been fitted with backstops so they cannot run in the wrong direction. Where on-site generators are connected at sites with meters that do not have backstops, exporting electricity causes the meter to run backwards. As a result, the consumer’s import meter readings are reduced by the amount of electricity they export. When that is discovered, the supplier may recalculate the consumer’s bill for the period for which the meter operated incorrectly and charge the consumer for the shortfall. In most cases, on-site generation exports are unmetered and the supplier needs to use estimates to calculate the bill.

In other cases, the meter treats all electricity in the same way. Some digital meters are configured in a way that results in them adding exported electricity to the imported electricity meter reading, which can result in the consumer paying for both imported and exported electricity. Again, once that situation is identified, historical bills need to be estimated.

Two other constituents of mine, Mr and Mrs Scott, had a HELMS salesman at their door five times. On the fifth occasion, Mrs Scott agreed to the works. She did so only after researching the Government’s accreditation and backing of HELMS. The family have gone from paying around £70 a month in energy bills to paying between £170 and £265 a month. The reason for that increase and variation in expenditure is that, on top of the green deal finance charges, the meter and the panels are incompatible. As a result, the family’s supply meter runs backwards and my constituents pay estimated bills from their supplier. They have fought for years to have that corrected. Only now, with prompting and reference to Ofgem guidance, has their supplier agreed to replace their supply meter with a compatible one.

That shows how ill-equipped HELMS was. Its lack of knowledge—or more likely, if we are honest, its lack of care—about panel and meter compatibility was outrageous. That should never have been an issue, and my constituents should never have seen their energy bills triple.

Members are no doubt beginning to see just how complex this issue is. My constituents and many other people across the UK have been through years of agony in seeking redress. HELMS failed to correct complaints. Constituents who took their cases to the green deal ombudsman were told they could no longer use that as a route to redress because HELMS no longer participated in the ombudsman scheme. Cases sat with the Financial Ombudsman Service for well over a year with no action. HELMS was liquidated and redress, such as it was, was unobtainable.

This was a UK Government incentive, backed and promoted as such. HELMS was accredited, and indeed promoted, under the Government banner, allowing it to enter homes and sell under a false umbrella of trust. Many of the families I have dealt with were sold on the phrase, “Government backed”. In fact, that was what persuaded many of them to listen to the dodgy sales patter in the first place. I have subsequently found that during that time, when someone searched online for a list of Government-accredited providers, HELMS was often top of the list.

How can the Government sit idle while households are left saddled with the hardships caused by HELMS? The very reason why work was agreed to was the shiny stamp of approval from the UK Government. What good is Government accreditation if it is worthless when issues and violations occur?

Who takes responsibility? HELMS and Robert Skillen have thus far escaped ultimate accountability. Despite being fined £200,000 by the Information Commissioner’s Office, they paid a mere £10,000 before the liquidation of HELMS. That highlights why the ICO has called on the Government to allow it to issue penalties of up to £500,000 to the company directors responsible.

Thus far, the Government have washed their hands of any responsibility for this mess. Instead, they hope the Green Deal Finance Company, which purchased the green deal loan book from them, will deal with it. Although GDFC was aware of some irregularities, it was not informed of the scale of the mis-selling and fraud that HELMS undertook. Given the delays with seeking redress through the ombudsman, GDFC offered to take over the case load directly to try to speed up the process. Although that has helped, the process is still too slow. GDFC has admitted that it was ill-equipped and under-staffed to deal with the scale of the issue. It has apologised for the delay and vowed to speed up the process.

Colleagues may have a different take and may have casework to prove otherwise, but I have met GDFC three times—I was particularly pleased that it attended my public meeting in Linwood—and my impression is that it is diligently, if slowly, working through the various claims and, in the majority of cases, making offers to reduce loans or cancel them altogether. Of course mistakes will be made—my office has asked GDFC to reassess particular decisions, and it will continue to ask if necessary—but thus far, in my view, GDFC has worked in good faith.

Philippa Whitford Portrait Dr Whitford
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Is not part of this issue that people of that age should never have been sold 25-year finance for solar panels that may last only 15 years or so? The offer to my constituents seems to have been only to reduce what they owe, not to clear it. They are still being told, “We’ll let you off £4,000, but you still owe us £6,000 for panels that aren’t working.”

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Jim Shannon Portrait Jim Shannon
- Hansard - - - Excerpts

The Minister is listening intently to what is being said and I look forward to her response. I know this matter is not ultimately her responsibility and she is filling in; nevertheless, I hope she is able to respond to my hon. Friend’s intervention.

When the company went into liquidation, many customers found themselves at a total loss, unable to take up their case with either the ombudsman or the company. The fact that the green deal was backed by Government undoubtedly gave the scheme credibility. The hon. Member for Paisley and Renfrewshire North said that one of his constituents phoned to check the scheme and found that it was Government-backed, so thought that it must be all right, but it was not. Coupled with the idea of saving money and being green, that resulted in many customers signing agreements that they did not necessarily understand, on the premise that their bills would not increase. It was disappointing for many that that did not turn out to be the case.

Members have given evidence that these operators of the scheme took advantage of their constituents. That said, Members must ensure that we do not undermine public trust in these types of scheme, given the potential benefits they can deliver. For example, in Northern Ireland, we have worked hard to tackle fuel poverty, and earlier this year, fuel poverty figures for the Province fell to 22%—a welcome drop from 42%. That indicates what we are doing back home, even with a stuttering Assembly.

Philippa Whitford Portrait Dr Whitford
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I understand that the Government hope to do a future green deal project. Will that not be completely undermined if this issue is not resolved?

Jim Shannon Portrait Jim Shannon
- Hansard - - - Excerpts

The hon. Lady is absolutely right. The Government have a great responsibility to address the issue for the sake of the credibility of any future schemes and so that participants in them will not worry about the future.

It is important to recognise that price fluctuations in home heating oil played a role in the fuel poverty figures I just gave. The reduction is welcome news, but we should not rest on our laurels: 22% of people considered fuel poor is still 22% too many.

A scheme that has proved to be extremely successful is the Northern Ireland sustainable energy programme. It has a particular focus on tackling fuel poverty, with 80% of funding ring-fenced for vulnerable and low-income families. The NISEP provides help to install energy-saving measures in homes, including energy-efficient boilers, heating controls, loft insulation and cavity wall insulation. With funding coming from a levy paid by all electricity customers, the scheme is delivered by energy companies and managed by the Utility Regulator. We have a system in place that has managed the programme well and delivered.

In 2017-18, five energy companies provided schemes, each of which had different eligibility criteria and incentives and/or grants to help people to make their homes more energy efficient and perhaps reduce their overall energy bills. As I mentioned, the focus is on those at risk of fuel poverty—for example, many of the schemes work directly with housing associations, which identify eligible tenants. The sheer variety of schemes means that people can make informed decisions about which scheme would best suit them and address their specific needs.

The NISEP provides some £7.9 million towards energy efficiency interventions, which include insulation and heating upgrades. It has proved so successful that it has been extended again until March 2019. The programme is working. The hon. Member for Paisley and Renfrewshire North referred to a different scheme. I only wish that scheme were the same as then we would not have needed this debate. We have accountability whereas, as he said and as we want to illustrate, there is no accountability in that scheme.

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Paul Sweeney Portrait Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)
- Hansard - - - Excerpts

It is a pleasure to serve under your chairmanship, Mr Robertson. I congratulate the hon. Member for Paisley and Renfrewshire North (Gavin Newlands) on securing the debate and making a powerful speech to introduce the complex but dramatic and distressing situation of green deal mis-selling and the impact of HELMS in particular.

I was elected last year by a community that I have grown up and lived in my whole life. Balornock is probably similar in many ways to Linwood in the hon. Gentleman’s constituency: it was an overspill estate created after the second world war, built at a time of great optimism in the Glasgow city region, where people were moving out of overcrowded slum tenements in the inner city and into what they saw as new build housing, with indoor toilets and front and back gardens. The community was largely born of the baby boomer generation, who moved in and have lived there their whole lives. Many benefited, as they saw it, from buying their council houses in the 1980s and 1990s, and, as they reached retirement, they wanted to make improvements to their houses.

The community was built out of great optimism and aspiration for the future. Five years ago, the green deal was launched to great fanfare by the Tory Government, with the promise of a win-win situation for homeowners: lower energy bills and the chance to do their bit for the environment. It seemed like a great idea. Those who sought to exploit that scheme cynically homed in and targeted communities, particular those with a large population of baby boomers in self-contained housing units—not flatted accommodation—with back and front gardens. If the scheme sounded too good to be true, that was because for some in those communities it turned out to be exactly that.

Dozens of my constituents in Glasgow signed up to install green deal-financed improvements to their homes, such as solar panels and insulated cladding, but that has proven to be one of the worst decisions they have ever made. Instead of realising the Government’s vision of a flagship programme to reduce fuel poverty and improve energy efficiency, the complete failure to regulate the scheme properly has allowed it to be ruthlessly exploited by gangsters and other rogue traders, who have systematically preyed on trusting people who thought that, as the scheme was approved and accredited by the Government, they could trust its credentials and sign up.

In 2015 Christine McBain, one of my constituents, handed over her life’s savings to a Cambuslang-based green deal provider called Home Energy and Lifestyle Management Systems—otherwise known as HELMS—to put external wall insulation on her Swedish timber-framed house in Balornock. Those houses are a common feature of Balornock, because after the second world war the overspill in Glasgow was so problematic that timber kit houses were imported from Scandinavia, such was the pressure on housing. More than half a century later, those houses are not the most energy-efficient, so this offer seemed like a plausible way for those homeowners to make them better. As I have said, it turned out to be the worst decision they ever made.

Another constituent, 86-year-old Mary, handed over her lifetime’s savings and has been left with £17,000 of debt after being duped by HELMS with no sign of any redress. It is the most appalling experience as an MP to see people who are meant to be enjoying their retirement, and feeling safe in their life’s work and savings, but who have been stripped of any sense of security and are in absolute distress about what they are having to deal with. If this is not dealt with urgently, sadly they will have to deal with it for the remainder of their lives. That is a shameful indictment on the Government’s failure to regulate their policy.

Christine and Mary are among many local residents in my constituency who have been left totally in limbo by HELMS. The company carried out similar works on more than 160 properties in my constituency without obtaining the necessary building warrants, cynically preying on local residents with promises of free solar panels and cavity wall insulation that would save them thousands of pounds. Normally such a matter would be easily remedied with a retrospective application for a building warrant from Glasgow City Council. However, because building standards were not adhered to by HELMS, no backdated planning permission can be granted without costly surveys. In addition, the statutory fee for a building warrant will be tripled where works have already been completed. Residents simply do not have the financial resources to fund that, and in the absence of building warrants the houses are now uninsurable and unsellable. Residents—many in the latter years of their lives—feel effectively imprisoned in their own homes. That is shameful.

I am currently seeking agreement from Glasgow City Council to waive the multiplier fee for the retrospective warrant and to cover the cost of the surveys needed for the building works. Will the Minister write to Glasgow City Council’s chief executive to make a similar call?

Philippa Whitford Portrait Dr Whitford
- Hansard - -

Does the hon. Gentleman not accept that the underlying fault lies with the UK Government scheme? To me, the UK Government lobbying Glasgow City Council to pick up those costs, rather than offering to fund them, seems the wrong way round.

Oral Answers to Questions

Philippa Whitford Excerpts
Tuesday 17th July 2018

(6 years, 4 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Greg Clark Portrait Greg Clark
- Hansard - - - Excerpts

I am always delighted to go to Yorkshire and to meet industries, including the textiles industry. I hope that the hon. Gentleman will join me so that we can go through the proposals in the White Paper, and the entrepreneurs will see that they will be able to continue to trade free of frictions.

Philippa Whitford Portrait Dr Philippa Whitford (Central Ayrshire) (SNP)
- Hansard - -

Prestwick, with its clear weather, transport links and aerospace park, is one of the frontrunners to be a horizontal-launch spaceport. In 2016, the then Transport Minister said that the Government would no longer be picking spaceport sites, but the narrative around the current grant process seems to be reversing that. Will the Business Secretary clarify who will choose where launch facilities are developed: the space industry or the Government?

Greg Clark Portrait Greg Clark
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I am surprised that the hon. Lady has not welcomed the fact that the first commercial rocket site in Europe will be in Sutherland in the north of Scotland. We are keen to bring the next wave of innovation, which is horizontal launch, and it is the UK Space Agency, which brings together the expertise that is required, that will advise on the right location for it.