Oral Answers to Questions

Debate between Sarah Olney and Lord Sharma

Wednesday 14th July 2021 Commons Chamber

[Alok Sharma]

What an excellent question. I commend my hon. Friend for the work he is doing to encourage youth climate activists in his constituency, such as those in Warrington Youth Voice and at Penketh Primary School. As he knows, last month we sent a COP26 schools pack, designed to engage students with climate action, to schools across the UK. In May, MPs also received a UK engagement pack.

[Sarah Olney (Richmond Park) (LD)]

What steps he is taking to help ensure that COP26 outcomes commit to limit global temperature rise to 1.5°C.

[The COP26 President (Alok Sharma)]

We are pressing all countries to come forward with mid-century net-zero commitments, and aligned ambitious 2030 emissions reduction targets. We have seen some progress. When the UK took on the COP26 presidency, less than 30% of the global economy was covered by a net-zero emissions target, and that figure is now 70%.

[Sarah Olney]

The Government claim that the UK has reduced its emissions footprint by 42% since 1990, which is a commendable feat. That has been achieved in part by offshoring manufacturing and outsourcing many emissions to countries such as China that produce the goods we consume. If we factor in those emissions, the UK emissions reduction is possibly as little as 10% to 15%. Ahead of COP26, what steps will the Minister take to include the full scope of our emissions in the accounting, including those arising from UK consumption, supply chains, and international aviation and shipping?

[Alok Sharma]

The hon. Lady talks about aviation and shipping, and we have included those in the sixth carbon budget. The role of the UK COP presidency is to ensure climate action and ambition across the whole UK, and that is what we are working to deliver.

UK Internal Market: White Paper

Debate between Sarah Olney and Lord Sharma

Thursday 16th July 2020 Commons Chamber

[Sarah Olney (Richmond Park) (LD)]

This talk of powers being returned disguises the fact that the Government are denying us all here a much more important power—that of scrutinising the trade deals that are struck in our name. The British people used to have this power through their elected representatives in Brussels, but the Trade Bill comes back to the House on Monday and there is no provision in it for this Parliament to have scrutiny of the trade deals that are being struck in our name. Will the Secretary of State accept that trade flows throughout the United Kingdom can best be secured by instituting a robust and respected dispute resolution process, and will he confirm that implementing such a mechanism will be a priority as he progresses his plans?

[Alok Sharma]

I say respectfully to the hon. Lady that she needs to move on. The British people decided that we were leaving the European Union in 2016 and we are implementing that vote.

Corporate Insolvency and Governance Bill

Debate between Sarah Olney and Lord Sharma

2nd reading & 2nd reading: House of Commons
Wednesday 3rd June 2020 Commons Chamber

[Alok Sharma]

Colleagues in the banking sector will I am sure be watching this debate and listening in, and they will have heard what my hon. Friend has said. I would be happy to have a discussion with him after this debate if there are particular points that he wants to raise or if he wants to talk about particular organisations.

The second temporary measure is the suspension of the wrongful trading provisions. This will be retrospective to 1 March and will be in place until one month after Royal Assent, and again it can be extended if that is deemed necessary. Hon. Members will know that wrongful trading is an important deterrent against company directors continuing to trade when the company is insolvent and when doing so increases the losses to creditors. Directors can be made personally liable as a result. However, during this difficult period, many otherwise viable companies may become technically insolvent, particularly if they have been severely affected by a drop in demand caused by covid-19. This measure gives company directors the confidence to use their best efforts to continue trading without the threat of personal liability, should the company ultimately go into insolvency. Since the measure was announced in March, we have received much support for it from stakeholders. The Institute of Directors has welcomed it, saying that it

“will help to avert entirely preventable corporate collapses.”

The Bill also contains the necessary time-limited powers to extend these temporary provisions, should that prove necessary.

The Bill will also allow the Government to make other temporary amendments to insolvency law or the new restructuring plan to deal with the effects of covid-19, where needed. The power to amend corporate insolvency or governance legislation will allow the insolvency and business rescue regime to react quickly to the challenges we face as a result of the impact of covid-19, and that power will expire on 30 April 2021. However, due to the potential unforeseen circumstances relating to covid-19, the expiry date of this power can be extended if it is deemed necessary. If an extension is sought, the House will of course have an opportunity to scrutinise it.

The next group of temporary measures deals with meetings and company filings. These measures enable companies and other bodies, including mutual societies and charitable incorporated organisations, to hold AGMs and other meetings in a safe way, while respecting social distancing rules.

[Sarah Olney (Richmond Park) (LD)]

On the point about AGMs, it is obviously good that the legislation makes provision for AGMs to be held digitally, but is it necessary for the legislation to restrict the participation of shareholders quite as much as it does? Surely, if a digital method enables shareholders to question directors, that should be encouraged if it can be facilitated.

[Alok Sharma]

There are, of course, other methods for shareholders to question directors of a company. There will be shareholders’ days, for example. The reality is that businesses will be reacting and doing their best to try to get information to their shareholders. I am sure that the hon. Lady’s point will be noted, but the intention of this Bill—and, I think, of the business community—is not in any way to use these measures to restrict shareholders’ access to information. This is actually about making sure that we can get past the pandemic and be in a position to bounce back.

The flexibility in terms of these meetings and filings will apply from 26 March—retrospectively, obviously—until 30 September. The measures also enable AGMs to be postponed until 30 September this year, where necessary.

Covid-19: Business

Debate between Sarah Olney and Lord Sharma

Tuesday 12th May 2020 Commons Chamber

[Sarah Olney (Richmond Park) (LD) [V]]

Many businesses in my constituency offering health services, such as dentists and physiotherapists, have been excluded from other forms of Government support yet are offering absolutely vital services that we will need when the shut- down ends. Does the Minister have any specific guidance for businesses such as these?

[Alok Sharma]

I would not say that businesses have been excluded. Indeed, if we look at the range of what is available in terms of loan schemes it covers the smallest businesses right to the very largest. We are seeing significant take-up particularly of the Bounce Back loan scheme. I made an announcement about the top-up to the local business grant fund scheme that we already have—almost £9 billion has gone out. This is a discretionary fund that is being set up to support businesses as well.