GKN

Rachel Reeves Excerpts

Tuesday 24th April 2018 Commons Chamber

[Greg Clark]

I understand my hon. Friend’s concern, and a number of hon. Members have raised that point before. There are a couple of things to say about it. First, most people who have bought shares latterly during the takeover process bought them from longer-term shareholders, and one way in which a bid can be backed is for people to sell before the end point of that bid. That situation was looked at, appropriately, by Professor John Kay, who published a substantial review. His panel noted that one suggestion was that voting rights should accrue only if people had been on the share register for a specified period. The Kay review concluded:

“We were persuaded that the introduction of such provisions by legislation or regulation would involve practical difficulties and would be unlikely to achieve the intended effect.”

That was an expert review by a serious person, but of course in all circumstances such as this we keep our corporate governance arrangements under review, and I will certainly do that now.

[Rachel Reeves (Leeds West) (Lab)]

I would like to follow up on the point that the hon. Member for Telford (Lucy Allan) raised. Other countries have a rule that people must have been shareholders for a certain period before they can vote on a takeover deal. Some sort of financial transaction tax would also reduce short-term speculation in companies that leads to their being taken over in this fashion. I urge the Government to look again at the takeover code, particularly for businesses that are so integral to our industrial strategy and have received a lot of taxpayer funding, in this case for the R&D work that GKN has undertaken.

[Greg Clark]

I am glad that the hon. Lady mentions the R&D work, which is very important. The commitments that have been made on R&D, both to keeping up investment and to participating in R&D partnerships, are extremely important. She and her Business, Enterprise and Industrial Strategy Committee asked for undertakings to be given on that and a number of other issues, and were not satisfied with the undertakings that were offered. I persuaded the company to go further and obtained undertakings relating not only to national security but to R&D and the ownership of businesses, and I hope she will acknowledge that that is valuable.

On the hon. Lady’s point about differential voting rights for shareholders, I mentioned the John Kay report, which her predecessor Committee scrutinised—I think the right hon. Member for Twickenham (Sir Vince Cable) gave evidence backing the report’s judgment. I know that her Committee is correctly interested in keeping our arrangements up to date, and if she and her colleagues want to review these matters, what their predecessors said is a good example of how that can be done.

GKN: Proposed Takeover by Melrose

Rachel Reeves Excerpts

Tuesday 27th March 2018 Commons Chamber

[Greg Clark]

My hon. Friend makes an excellent point. I have visited the site he mentions. That situation was a breach of the indications given during the bid, which is why this regime of legally binding commitments was introduced. It is my view that such a regime exists not simply to be available in principle, but to be used in practice. The force of the law applies to adherence to those commitments in a way that sadly was not the case with Kraft and Cadbury.

[Rachel Reeves (Leeds West) (Lab)]

May I ask the Secretary of State why it took until three days before shareholders had to vote on this bid for you to write to Melrose to get some assurances, which are frankly pretty limited? It is too late in the day now for you try to drive a harder bargain—not you, Mr Speaker; you would drive a very hard bargain. The Secretary of State says it is still possible to call this in, but the takeover has been hanging over GKN and its employees and wider stakeholders for more than two and a half months now. What more information do you need to gather to decide whether to call this in? When will the Secretary of State finally make a decision on whether or not to call this in? It is too late now, isn’t it?

[Mr Speaker]

Order. Before the Secretary of State replies, I say this with great courtesy to the Chair of the Select Committee. It was in fact raised at the morning briefing meeting which I chair, accompanied by the Deputy Speakers and senior procedural advisers, that there has been an unhealthy tendency recently for Members to start using the word “you”. In case people observing our proceedings wonder what the fuss is about, “you” refers to the Chair, and debate must be conducted, as ordinarily the hon. Lady would do, through the Chair, and Members are referred to in the third person. There is good reason for that: it preserves the basic civility of our exchanges. I accept that it was accidental—the hon. Lady, in her passion, got carried away—but we must now return to good order, exemplified, I am sure, by the characteristic courtesy of the Secretary of State.

Oral Answers to Questions

Rachel Reeves Excerpts

Tuesday 13th March 2018 Commons Chamber

[Andrew Griffiths]

My hon. Friend, who has met me on a number of occasions to defend the interests of businesses in his constituency, will know that the Government had two priorities: to protect the provision of vital public services and to do what we could to protect jobs in Carillion and jobs in the supply chain. We are clear that we must learn the lessons from the collapse of Carillion. This could be a catalyst for change for the good. We are concerned to ensure that we do all we can to learn the lessons on procurement, and we also want to do more to ensure that the supply chain is promptly paid and that small businesses are paid speedily. Looking at the prompt payment code is an important part of that.

[Rachel Reeves (Leeds West) (Lab)]

Following on from the question from the hon. Member for Cheltenham (Alex Chalk), when Carillion went bankrupt, many of the subcontractors had not been paid for 120 days. The money coming to Carillion was from the Government, so what are the Government doing to ensure that when they give contracts to big businesses, those businesses pay their subcontractors on time? Small businesses are the lifeblood of our economy and they have been destroyed by the collapse of Carillion.

[Andrew Griffiths]

I thank the hon. Lady for that question and particularly for the work that her Select Committee is doing in getting to the bottom of exactly what happened in Carillion. That is very important work. The Government are clear that with public sector contracts we pay in 30 days, and we expect tier 1 contractors to ensure that they pay their supply chain in 30 days too. We are determined to take action to ensure that this happens, and we are looking at what we can do to make sure not only that small businesses in the public sector supply chain get paid within 30 days, but that we do more to support private sector suppliers as well.

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[Richard Harrington]

I was in Brussels yesterday to meet other European Union Ministers, trade union leaders and representatives of employers to ensure that we do exactly that.

[Rachel Reeves (Leeds West) (Lab)]

The Business, Energy and Industrial Strategy Committee has heard powerful evidence on why the Government should call in the Melrose bid for GKN on national security grounds, and the Secretary of State for Defence has written to the Business Secretary about the matter. Will the Business Secretary use his powers, before it is too late, to protect this great British engineering giant?

[Greg Clark]

I will look very carefully at the report of the Committee and that will be one of the pieces of evidence that I will seriously consider.

Domestic Gas and Electricity (Tariff Cap) Bill

Rachel Reeves Excerpts

2nd reading: House of Commons
Tuesday 6th March 2018 Commons Chamber

[Greg Clark]

There already is a cap for those on prepayment meters, and that is being extended to some of those who are identified as the most vulnerable. The reason for this more general scope is that not everyone can be identified through the receipt of particular benefits—that does not comprise the whole population of those who are vulnerable—so the Bill proposes a backstop.

[Rachel Reeves (Leeds West) (Lab)]

I thank the Secretary of State for giving way and I welcome the Bill, which will do a great deal to reduce the energy prices paid by consumers. On the point about helping the most vulnerable customers, one issue that we have is that data about who those customers are is not shared with energy companies. The Cabinet Office already has a consultation on showing this data as part of the Digital Economy Act 2017, and the Department for Business, Energy and Industrial Strategy has announced another consultation. When will the Department get on and give the powers to enable the data to be shared, so that we can protect the most vulnerable customers?

[Greg Clark]

The hon. Lady makes a very important point. The statutory instrument that will allow that data sharing will be tabled shortly, before this Bill, which we hope will make rapid progress, receives Royal Assent. She is absolutely right.

I was explaining that the original RPI minus X model, which required annual reductions in prices by incumbents, was followed around the world, but with new developments in technology and practice, it is vital to keep our regulatory system up-to-date. In recent years, it has become more and more possible for suppliers to have extensive information on the habits and behaviour of individual consumers—often more information than the consumers know about their own habits, which are studied so minutely. Incumbent suppliers can identify which of their consumers do not respond to higher prices and instead display loyalty to what they might think of as a long-standing and trusted supplier. They can then penalise those customers with ever higher prices.

The CMA identified the problem and recommended that certain consumers, those on prepayment meters, should be protected from such pricing behaviour. It also recommended measures to drive up the rates of switching. The roll-out of smart meters in particular can make information that is currently only available to the incumbent supplier available to other potential suppliers, with the customer’s permission, which is what everyone wants to be able to drive up competition.

In its report, the CMA was in two minds about whether that action was sufficient, and a minority report thought that such remedies, including smart meters, would not come soon enough to eradicate this detriment quickly enough. The minority report said:

“The harm which is presently inflicted on households…is very severe…the remedies proposed for the large majority of households will take some time to come into effect. That is why…they must be supplemented by a wider price control designed to give household customers adequate and timely protection from very high current levels of overcharging”.

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[Rachel Reeves (Leeds West) (Lab)]

It is an honour to follow the right hon. Member for Harlow (Robert Halfon).

I welcome the Bill and look forward to its clauses becoming law in due course, with the impact that will have on energy bills. Of course, Labour first proposed action to tackle excessive energy prices in 2013. I look forward to hearing shortly, I hope, from my right hon. Friend the Member for Don Valley (Caroline Flint), who was the architect of that policy. As my right hon. Friend the Member for Doncaster North (Edward Miliband) put it at the time,

“When wholesale prices go up, people pay more. When they come down, they still pay more.”

Between 2010 and 2015, energy bills went up by £300 on average, so in the 2015 Labour party manifesto, we committed to cap energy bills until 2017, ensuring that bills could fall but not rise. That same winter, we committed to giving the regulator the power to cut bills and then to reform the energy market to deliver fairer prices and a better deal for consumers. Like all good ideas that Oppositions have, it has now somewhat belatedly become Government policy. I congratulate the Secretary of State and the Minister on that.

The fact that the energy market is broken is undeniable. It is a feeling shared by Members across the House and, indeed, by all our constituents. The Business, Energy and Industrial Strategy Committee’s report showed that it is a two-tier market in which customer loyalty is not rewarded but punished with excessive prices. It is totally unacceptable that nearly 60% of customers pay up to £350 more a year for their energy, on average, especially when those customers are the most vulnerable: 83% of those living in socially rented housing, 75% of those on low incomes and 74% of disabled customers are on standard variable tariffs, which we know rip consumers off. It is unacceptable that the exploitative behaviour of some energy providers exacerbates the financial woes of customers who were already facing difficult financial decisions. I do not want to live in a country where so many people are priced out of heating their homes in the winter, or having to choose between sitting in a freezing cold flat and putting food on their table. This Bill is a step in the right direction in addressing some of those concerns.

The big six energy companies insisted in evidence to our Select Committee that the market was already competitive and delivering fair outcomes and that this action was excessive and unnecessary, but our report showed why that is not the case. The CEO of E.ON told us in evidence that it is fair that customers who do not engage in the market pay more for their energy. We found that this kind of discriminative pricing is unfair on customers who cannot engage with competition, as opposed to those who can take advantage of it. Centrica admitted in its evidence to making the majority of its profits on expensive standard variable tariffs. It is not alone in that position, as a large majority of all big six customers are on standard variable tariffs, including 68% of Centrica’s customers.

The big six have lobbied intensely to get appeal rights to the Competition and Markets Authority because they want to try to stop this cap happening by dragging the process through the courts. I am pleased that this Bill rules out that action by those companies. Some argue that switching is increasing and so a cap is not necessary. Although the number of customers switching suppliers has improved recently, it is not improving nearly fast enough, with only a third of customers having switched in the past three years. It is time to try a different approach —one that puts the onus on suppliers to do the right thing. The big six energy companies have brought this cap on themselves by their discriminative pricing practices.

The BEIS Committee held four evidence sessions and analysed 44 pieces of written evidence as part of our pre-legislative scrutiny of the draft Bill. We welcome the Government’s Bill and the intention to put an end to the overcharging of 12 million households on poor-value standard variable and default tariffs.

One of our key recommendations to the Government was that they seek Royal Assent for the Bill before the summer recess, allowing Ofgem time to consult and then set the cap, so that customers do not spend another Christmas facing excessive prices. I welcome the letter from Ofgem today saying that it will be able to meet that timetable, so that we do not go through another winter of excessively high bills. My only disappointment is that this legislation did not come sooner. Last week, temperatures dropped significantly across the whole country. If there had been a price cap in place, families would not have had to worry about rising bills during this unprecedented drop in temperatures.

Following our Select Committee’s work, the Government have accepted all the recommendations that we made, including excluding the possibility of a relative price cap—something that the hon. Member for Weston-super-Mare (John Penrose) advocated, but which I believe would push up prices for customers who switch, rather than reducing the standard variable tariffs. It seems obvious that that is what would happen. For the big six energy companies, 70% or 80% of their customers are on standard variable tariffs and that is where they earn their profits, so they will not unilaterally drop those prices. Instead, they will increase prices for new customers, to cling on to their profits. That is why excluding the possibility of a relative price cap is the right thing to do.

[John Penrose]

I thank the hon. Lady for giving way; I will try to keep this brief. Does she accept that that criticism about a potential rise in competitive switching deal prices is being levelled by others at the absolute cap? When such a course as she described was experimented with last summer by Centrica, it lost market share hand over fist and was really hurt commercially, so it is unlikely to try that again.

[Rachel Reeves]

When we took evidence from the big six companies and probed them on where their profits came from, they were very clear that their profits came from the standard variable tariffs. Centrica has a £287 difference between its standard variable tariff and its best tariff, while Scottish Power has a £333 difference between those tariffs. They are earning their profits on the higher tariffs, and I just do not think that they will unilaterally reduce those tariffs, because that will be a hit to their profits, not a slight reduction in the number of new customers they get. The Government are right to exclude that cap, and that is why our Select Committee recommended that.

The Government have also accepted our recommendation to continue encouraging consumer switching. I believe that competition and regulation can co-exist effectively.

[Mark Pawsey]

Will the hon. Lady give way?

[Rachel Reeves]

I give way to the fellow member of my Committee.

[Mark Pawsey]

We heard a lot of evidence from the challenger companies. There are 60 suppliers in the energy market now, and while switching rates are not increasing fast enough, they are increasing. Does the hon. Lady share my concern that with a cap, there will be precious little incentive for people to look at alternative suppliers and change and that the rate of switching we have managed to get in recent years will start to fall back?

[Rachel Reeves]

I hope that does not happen. Ofgem and the Competition and Markets Authority are putting the cap in place to make it easier for customers to switch. Northern Ireland, where there is a price cap, has as much switching as we do. The international examples suggest that we can have switching in a market that also has a price cap.

[Peter Kyle]

Will my hon. Friend give way?

[Rachel Reeves]

Sorry, I am not going to give way again, otherwise I am going to get into trouble with Madam Deputy Speaker, and I am more scared of her than I am of my hon. Friend.

[Peter Kyle]

For the time being.

[Rachel Reeves]

Indeed.

There are two areas where the Government need to take action to ensure that, once the price cap is over in 2021 or 2023, we do not go back to business as usual. First, they need to give greater clarity about what will happen to things such as the energy company obligation and the warm home discount once the price cap goes away.

Secondly, I welcome the Secretary of State’s commitment today that the statutory instrument on data sharing to allow energy companies to know who their vulnerable customers are will be tabled before the Bill receives Royal Assent. We need to see that SI and those changes, because the energy companies do not know all the customers who are vulnerable and experiencing financial difficulties. Our Committee is convinced that those two issues will be key in ensuring that, both during and after implementation of the price cap, those who need it most get the protection they need.

The time for action is over-ripe. These rip-off practices cannot be allowed to continue. There is cross-party support for this legislation, and both the Labour and Conservative manifestos at the last election included a commitment to cap energy prices. Now the Government must make that cap a reality before next winter. I strongly urge colleagues across the House to support the Bill, to deliver some fairness to all our constituents.

Taylor Review

Rachel Reeves Excerpts

1st reading: House of Commons
Wednesday 7th February 2018 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

I welcome the response to Matthew Taylor’s review—seven months after he published it. The Minister’s response today seems to be “we are now consulting the experts”, but that is exactly what the Government did when they asked Matthew Taylor and his panel to undertake their review. I am afraid there is very little from the Government’s response today that will do anything to genuinely help the bogus self-employed, including Don Lane, who are crying out for desperately needed reform. The Work and Pensions and BEIS Committees produced a Bill that the Government could take through Parliament, with cross-party support, to sort this out. The country is crying out for change. I urge the Government to be a little bit more ambitious.

[Andrew Griffiths]

I can reassure the hon. Lady that we are hugely ambitious. These proposals will help millions of workers. I pay tribute to the recommendations that her Committee and the Work and Pensions Committee made, and we are accepting all but one of the recommendations contained in that report. She will understand, as I think Matthew Taylor said when he gave evidence to the Committee, that this is hugely complicated, and we need to consult further. We are not consulting about whether we should do this; we are consulting about how we do it. I thank her for her contribution and reassure her that our ambition is strong.

Oral Answers to Questions

Rachel Reeves Excerpts

Tuesday 30th January 2018 Commons Chamber

[Greg Clark]

That is exactly the point that the businesses made. That is why I asked the banks to attend in person to meet those businesses, and it is why the banks gave those commitments and guarantees. It is important for Members with constituents who may be affected that the banks have made that commitment and have made a promise that they will deal individually with anyone who is so affected. The measures are on each bank’s website, but any colleague should come back to me if they experience a problem.

[Rachel Reeves (Leeds West) (Lab)]

This morning, at a joint Select Committee hearing on Carillion, we were told by the chief executive of the Financial Reporting Council that, before and after the collapse of BHS, he had asked for greater powers to regulate companies and take action before things go badly wrong. He told us that there was a lack of Government interest in making the necessary changes. In the light of the collapse of Carillion and the threat to thousands of jobs and suppliers in the supply chain, are the Government interested in taking action now?

[Greg Clark]

I do not agree with the hon. Lady. I engaged the FRC immediately, and it is very important that we and the FRC learn the lessons. We will apply whatever is appropriate that comes from those inquiries.

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[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)]

The sector has huge growth potential. The Government support the industry through the aerospace growth partnership and have committed £3.95 billion for it, which already supports 200 companies, including Safran and GE Aviation in my hon. Friend’s constituency.

[Rachel Reeves (Leeds West) (Lab)]

T3. By last Friday, just 526 of the 9,000 companies that need to report their gender pay gap had done so. What powers do the Government have to compel companies to publish these numbers ahead of the April deadline, as there are no civil or criminal sanctions in the regulations?

[The Minister for Energy and Clean Growth (Claire Perry)]

Having just taken over the diversity portfolio in the Department, I share the hon. Lady’s extreme disappointment at companies failing to report. I will take this matter forward and perhaps work with her as a matter of urgency.

Nuclear Safeguards Bill

Rachel Reeves Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 23rd January 2018 Commons Chamber

[Trudy Harrison]

That is exactly my point. This is about certainty and getting on with the job. Not having the Bill in place would be absolutely catastrophic for my constituency and the whole county of Cumbria.

[Rachel Reeves (Leeds West) (Lab)]

I know that the hon. Lady cares hugely about this issue, because it matters a great deal for her constituency. She and I have been in meetings with the Office for Nuclear Regulation, in which it has said very clearly that it will not be able to meet Euratom standards for safety inspections by March 2019. Indeed, even to meet IAEA standards will be very challenging. Does she not agree that new clause 1 would provide certainty, rather than the other way around, because it would ensure that in March 2019 we were in a transition period in which we could still rely on Euratom to perform the inspections that are so crucial in her constituency?

[Trudy Harrison]

It is not just my constituency, though; this is about the whole country. Today, more than 20% of our electricity is provided by nuclear power stations. The hon. Lady is not quite correct. My memory of the meeting she mentions is that we were told we would have sufficient aspects in place to be able to have the regime, there or thereabouts, to continue with our existing—[Interruption.]

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[Albert Owen]

I am grateful, because that is helpful, but there is associate membership—it is just in different sections, whether that is research and development or various other—[Laughter.] There is. Conservative Members laugh, but when we had a debate in Westminster Hall, both sides were in agreement that we needed to strengthen our relationship through an associate or alternative membership.

[Rachel Reeves]

Like other hon. Members, my hon. Friend has a close constituency interest in this issue. Ukraine has associate membership for the research and development programme. One thing my hon. Friend and I are particularly interested in is whether we are seeking to have what Ukraine has: associate membership specifically for research and development.

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[Mr Jayawardena]

In disagreeing with me, my right hon. Friend has made my point: specific deals can be done to make sure that the people that this country needs and wants to see here in Britain can come here.

[Rachel Reeves]

Will the hon. Gentleman give way?

[Rebecca Pow]

Will my hon. Friend give way?

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[Mr Jayawardena]

My hon. Friend has guessed what is coming later in my remarks. I will come on to the future, but I want to focus now on the importance of nuclear, which I think everyone agrees is of key strategic importance to the United Kingdom. I am therefore pleased that Her Majesty’s Government have been clear that they aim to seek to maintain close and effective arrangements for civil nuclear co-operation with Europe and the rest of the world.

As we leave the European Union and enter, in my view—I accept that it might not be everyone’s view—an exciting and prosperous new phase in our kingdom’s history, where we are free to do what we need to do to put our people first and seek trade deals with friends around the world, it is through the cultivation of open, willing and free global markets, interested in innovation from Britain and the revenues that that trade will bring, that we will help to stabilise and boost the UK economy. In this new industrial revolution—perhaps the fourth industrial revolution, as has been championed by my hon. Friend the Member for Havant (Alan Mak)—nuclear power will form a vital part of the UK’s long-term energy mix.

In that context, I want to inform the House of how little of our energy comes from nuclear. Some 72.3% of France’s energy comes from nuclear, compared with 54.1% of Slovakia’s, 51.7% of Belgium’s, 51.3% of Hungary’s and 40% of Sweden’s. We are at less than half that percentage. I would be delighted to be told that I am wrong—I would be delighted if it were higher—but I am informed that it is less than 20%. Nuclear power, as a source of electricity to power millions of homes and businesses for decades to come, is not only clean, low-carbon energy, but reliable. It will also secure our energy, environmental and economic futures. It is therefore absolutely critical to get the regulation of it right.

We have heard about the deal to secure our first new nuclear power station for a generation. It will be built without resort to the public purse and will mean the creation of 26,000 new jobs. It is the sort of industry we want to incentivise in this country to create good new jobs for young people now and in the future. It will also mean energy security, as I have said, which is absolutely critical for our kingdom’s future prosperity, so it is critical that the right safeguards are in place.

It is important that the nuclear safeguards provided under the Bill are distinct from both nuclear safety measures and nuclear security measures. Those measures, which are respectively intended to prevent accidents and to put in place physical protection measures at nuclear sites—are not under the purview of the Bill. They are unaffected by our leaving the EU, because they are not responsibilities provided primarily by Euratom. Euratom has no role in setting security standards or in regulating or inspecting security arrangements in our civil nuclear sector.

Nuclear safety and security are regulated by the Office for Nuclear Regulation—very effectively to date, I might add—and it is the ONR that will assume responsibility for running our effectively equivalent domestic nuclear safeguards regime created under the Bill. That is why, again, I believe that the Bill should stand unamended. Furthermore—international safety and security considerations have been mentioned— the UK will remain a member of the International Atomic Energy Agency, of which we were one of the founding members in July 1957 and remain one of the board members. Our leading role in the IAEA, our work developing and complying fully with international standards and obligations on nuclear safety and security, and our commitment to responsible nuclear non-proliferation thus demonstrate that the UK has no intention of retreating from international standards in our new domestic safeguards regime.

[Rachel Reeves]

I am sure that the hon. Gentleman is aware of this, but I clarify to the House that IAEA standards are not as high as Euratom’s. The Office for Nuclear Regulation has said that it will not be able to meet Euratom’s standards on day one of our exit from the European Union, so that would mean a dilution of the standards that we have today. Does the hon. Gentleman understand and acknowledge that?

[Mr Jayawardena]

My point about the IEA—I mean the IAEA; what a tongue-twister!—was not about the standards it provides. It was that we will remain part of the IAEA and will continue to comply fully with the international standards set out and our obligations in relation to nuclear safety and security.

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[Richard Harrington]

I thank all Members who have contributed to the debate. Those who have heard our consideration of the Bill for the first time today will not realise, given that most of our discussion has been about one or two new clauses, that many other aspects were discussed in Committee. I pay tribute to the Opposition Members who have participated, as well Government Members, and particularly the hon. Members for Southampton, Test (Dr Whitehead), for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), and for Sheffield Central (Paul Blomfield), whose cameo Brexit role has been well appreciated. Many points were dealt with by consensus in Committee and in our discussions afterwards. Today’s debate has focused on new clause 1, but I will also speak to the other new clauses and amendments in the group.

The overall strategy for withdrawal from Euratom, and our ambitions for our future relationship with it, were the subject of a comprehensive written statement made by my right hon. Friend the Secretary of State on 11 January. I think that most Members on both sides of the House would agree that, as I have stated publicly in Committee and privately afterwards, we are seeking the closest and most effective association with Euratom. We are therefore putting in place all the measures necessary to ensure that the UK can operate as an independent and responsible nuclear state from day one.

As Members will be fully aware, the nature of our future relationship with Euratom is part of the next phase of negotiations, which is yet to start. The written statement set out the principles upon which our strategy is based, many of which have been discussed today: to aim for continuity with current relevant Euratom arrangements; to ensure that the UK maintains its leading role in European nuclear research; and to ensure that the nuclear industry in the UK has the necessary skilled workforce. We will be seeking: a close association with Euratom’s research and training programme, which includes the JET project and the international thermonuclear experimental reactor project; continuity of open trade arrangements to ensure that the nuclear industry can continue to trade across EU borders; and maintenance of close and effective co-operation with Euratom on nuclear safety.

[Rachel Reeves]

rose—

[Richard Harrington]

It is a pleasure to give way to the Chair of the Business, Energy and Industrial Strategy Committee.

[Rachel Reeves]

I thank the Minister and particularly the Secretary of State for the written ministerial statement published on 11 January, which gave much more clarity on the Government’s aims and ambitions in this area. On the seventh day of consideration of the European Union (Withdrawal) Bill by the Committee of the whole House, Ministers gave a commitment to publish a timetable with milestones that the Government will need to achieve to meet the objectives set out in the written statement. When does the Department plan to publish that timetable, because I really think it is crucial? Can we also have an update on progress towards a voluntary agreement with the IAEA for safeguarding inspections, and on how discussions are going regarding the nuclear co-operation agreements, which are crucial to getting the association we need?

[Richard Harrington]

If the hon. Lady will have a bit of patience, I will come to those points, all of which are valid, later in my speech. Progress on many of those points will be included in the quarterly statements, which are the result of discussions in Committee.

I have been through the important points covered in the written statement, so let me turn to the point about associate membership made by the hon. Member for Ynys Môn (Albert Owen)—I learned how to pronounce his constituency in the Westminster Hall debate; I hope he realises that I am showing off now—and others. As I have already stated at the Dispatch Box, we cannot be an associate member of Euratom because there is no such concept in the treaty as it stands. We have had a lot of discussions about whether we could. The hon. Member for Leeds East—

[Rachel Reeves]

West.

Oral Answers to Questions

Rachel Reeves Excerpts

Tuesday 12th December 2017 Commons Chamber

[Greg Clark]

I am glad my hon. Friend mentions that, because the construction sector is one of the areas in which there are big opportunities. It has a sector deal that has been concluded as part of the industrial strategy, and representatives of the sector have said that this represents a major opportunity, especially in offsite manufacture.

[Rachel Reeves (Leeds West) (Lab)]

The Secretary of State has just touched on the sector deals the Government are agreeing with different sectors of the economy. Some of the sectors with the lowest productivity, such as retail, hospitality and social care, do not have a sector deal, yet if we close the productivity gap in those sectors, we will help boost productivity overall compared with our main competitors. What are the Government doing to secure sector deals in those sectors?

Industrial Strategy

Rachel Reeves Excerpts

Monday 27th November 2017 Commons Chamber

[Greg Clark]

I am grateful to my right hon. Friend, not least for her excellent work as a Minister in the Department for Business, Innovation and Skills in laying the foundations for this work, which is of benefit to every single part of the country. One of the mistakes that was made over many decades by successive Governments was not to recognise the importance of local economies in creating the right conditions for businesses to succeed. That is prominent in the strategy, and I know that she has been a particular champion of it.

[Rachel Reeves (Leeds West) (Lab)]

Industrial strategy, particularly in sectors such as the automotive sector, depends on a model of just-in-time delivery. One concern of that sector, in particular, is that things will be held up at ports if we leave the European Union and the customs union. What assurances can the Secretary of State give businesses that we will have frictionless as well as tariff-free trade after we leave the European Union? Without that, productivity will deteriorate even further.

[Greg Clark]

The hon. Lady is absolutely right about the importance of making sure that we can continue and, indeed, expand our trade, not just with the European Union but with the rest of the world. She is absolutely right that the model of the automotive sector and many other sectors requires the availability at very short notice of components and products. That is why it is very important that the deal that we negotiate should give us the ability to trade without tariffs and with the minimum of friction.

Oral Answers to Questions

Rachel Reeves Excerpts

Tuesday 7th November 2017 Commons Chamber

[Greg Clark]

I am grateful to my hon. Friend. The industry is aware of the firmness of our intention. It makes no sense to disrupt what has been a very successful relationship between this country and some of the home countries of those manufacturers: that is very clear in all our minds.

[Rachel Reeves (Leeds West) (Lab)]

Our successful car manufacturing sector exports nearly 1 million cars a year to the rest of the European Union. However, the Society of Motor Manufacturers and Traders has said:

“Brexit is the greatest challenge of our times”.

What is the Secretary of State doing to ensure that there are no costly tariffs or time-consuming customs checks in the sector after we leave the EU?

[Greg Clark]

We met the SMMT and all members of the sector to discuss every aspect of the challenges and opportunities ahead. The hon. Lady is of course right that Brexit is very much on the minds of every motor manufacturer, which is why the discussions we have had reinforced our commitment not only to secure a good deal at high level, but to make sure all the particular aspects for that industry are addressed. The industry was also enthusiastic about our clear commitment, with mounting enthusiasm being shown on the part of our partners, big and small, to invest in the future and to make sure that what makes Britain attractive as a place to locate continues to be so in the future.

--- Later in debate ---

[Claire Perry]

I am sure that my hon. Friend, like me, celebrates the fact that there has been an unprecedented fall in the price of offshore wind in the most recent auction, proving that the policy making—at least in this case—actually worked. We look forward to further investment in the industry, and are working with the sector on a sector deal that will have to address the issue of skills and apprenticeships. It is a vital industry; there is much more to do and much more growth to come.

[Rachel Reeves (Leeds West) (Lab)]

T8. Last year, a Whirlpool tumble dryer caused a devastating fire at Shepherd’s Bush Green after Whirlpool told customers that it was safe to continue using them, contrary to advice from the fire brigade. There are still 1 million of these potentially deadly tumble dryers in people’s homes. What does the Minister think about that and what is she doing to ensure that all electrical goods are safe, and recalled if they are not?

[Margot James]

The Government take product safety extremely seriously. We established a working group on product recalls and safety that reported in July, and we will respond shortly. We are already taking action in the areas that have given the hon. Lady cause for concern. Whirlpool has now managed to withdraw or modify more than 2 million of those machines to an unprecedented degree.