Building Safety

Stephen Hammond Excerpts

Monday 10th January 2022 Commons Chamber

[Michael Gove]

I rely on the right hon. Gentleman’s description of the building, but we will talk to Barratt or whoever is the ultimate owner in order to ensure that they live up to their responsibilities, and there are steps that we can take. We will outline what they are when we bring forward appropriate amendments. We will make sure that we test those amendments with him and others to ensure that they meet the need that he has correctly identified. There is still a little bit of legal work to be done to ensure that the amendments are as robust as possible.

[Stephen Hammond (Wimbledon) (Con)]

I warmly welcome my right hon. Friend’s statement and the work that the Minister has done as well. I hope it will bring resolution to people in blocks of flats in Plough Lane in the centre of Wimbledon and in Chorus properties. Can my right hon. Friend confirm that he will expect and, if necessary, require lenders to base their lending decisions in future on the new risk mechanism, because clearly distress has been caused by people being trapped in their houses?

[Michael Gove]

My hon. Friend is absolutely spot on and that is what we will seek to do.

Leasehold Reform (Ground Rent) Bill [Lords]

Stephen Hammond Excerpts

2nd reading
Monday 29th November 2021 Commons Chamber

[Stephen Hammond (Wimbledon) (Con)]

Let me say to my hon. Friend the Minister how much I think everyone across this House supports his aim—I certainly do—of getting rid of some of the egregious behaviour that we have seen in the market in the past five years. That behaviour undermines the work done by those professional freeholders who have done a good job for leaseholders for many years.

We are right to look at the whole process of leasehold. My right hon. Friend the Member for Newark (Robert Jenrick) described this Bill as the appetiser before the main course. A lot of us will welcome the main course, in which we can look at making it easier for leaseholders to extend their leases through simplification of the extension process, which I assume will come in that very complex Bill. The hon. Member for Ellesmere Port and Neston (Justin Madders) was right to say that although progress has been not as fast as many would have liked, it is coming. I warmly welcome that.

This Bill is fairly tightly drawn: it is very much about the ground rents on future leases. I make only four points, and I would like those on the Treasury Bench to respond to them. First, a practical point: while we all welcome and recognise the work done by the Competition and Markets Authority, it is missing half the problem. On the many people who may or may not have been instructed to use solicitors recommended by the developer or their agents, those solicitors had an obligation and a duty to the client purchasing the property, for whom they were working. I strongly advise Ministers to talk to the Solicitors Regulation Authority about whether this should be looked at as a corollary of the work being done by the Competition and Markets Authority.

Secondly, I heard what the Minister said about doing away with ground rent and moving to a peppercorn that will not have to be paid. What I am not clear about—perhaps if I am on the Committee, we can explore this a bit more—is why anyone would not just transfer all the increase in ground rent to other charges. He said that there are protections in progress, but some of those will be really difficult to establish. We have talked about “excessive” admin charges, repair charges and service charges; I think that will be quite difficult for the Minister to define, and I look forward to exploring that with him. If I am not on the Committee, I hope he will meet me to talk about how we might make sure that that is more tightly defined.

My third and fourth points have already largely been made by my right hon. Friend the Member for Chipping Barnet (Theresa Villiers). If ground rents are taken to a peppercorn, freeholders are unlikely to want to be involved, so we will move to a system of commonhold in reality, rather than by legislation. That raises two issues. The first is: who will manage the blocks of flats, and how will that come into place? The hon. Member for Reading East (Matt Rodda) mentioned that there are systems in other countries, but in complex buildings—those large buildings with mixed use underneath, or large-scale blocks of flats—a number of people will not want to actively participate in the management of that building; nor will it necessarily always be possible to bring them to resolution and agreement with the rest of the commonholders. For things to work, there may have to be an obligation on the commonholders to have a management company; otherwise, a number of repairs simply may not happen. My right hon. Friend the Member for Chipping Barnet talked about Scotland a moment ago.

My other major concern is this: if that provision is not there, and we no longer have professional managing agents or freeholders, who will ensure future building safety? I am interested to hear how the Minister intends to protect complex buildings. Commonhold can easily be seen to work in smaller buildings, but there is real concern about buildings over 18 metres and large buildings. If safety standards change in the future, who will force through building safety measures? I am keen to hear a response to that from my right hon. Friend the Member for Tamworth (Christopher Pincher).

Budget Resolutions

Stephen Hammond Excerpts

Monday 1st November 2021 Commons Chamber

[Stephen Hammond (Wimbledon) (Con)]

In essence, this Budget contains three themes. The first is restarting the process to ensure that our public finances are put back on a sound footing. Therefore, the two new fiscal rules that underline that public sector net debt as a percentage of GDP must be falling and that the state must borrow only to invest in our future growth and prosperity, with everyday spending paid for by taxation, are undoubtedly correct. May I urge my right hon. Friend, the Chief Secretary to the Treasury not to follow the example of the previous Labour Administration in abandoning rules when they were inconvenient.

The second point is that we are here to deliver stronger public services. As a former Health Minister, I welcome the 40 new hospitals, particularly the plans that could see the refurbishment of St Helier Hospital—those plans are in the Treasury waiting to be rubber-stamped. I also welcome and applaud the changes to business rate revaluation and the new business rates relief, which, undoubtedly, will help a number of businesses in my constituency.

As COP26 starts today, one can only applaud the ambitious net zero strategy, the issuance of green bonds and the incentives for renewable growth. I have long campaigned for the changes that will allow pension funds to invest in long-term projects. All of that is welcome as is the new investment in public services. As my right hon. Friend, the Secretary of State for Levelling Up, Housing and Communities said, it is not only how much we spend, but how we spend it and how we pay for it. It is key, therefore, that the Government do not, in their quest to work out how to pay for investment, become boxed in with the false choice of higher taxes or higher debt. Higher debt leaves the economy open to the ravages of inflation and higher interest rate costs, which only hit the poorest in our society. With experts at the moment predicting inflation to be 4% at the end of the year and possibly rising to 7% next year, any headroom that the Chancellor has created to invest more in public services will be eaten up by debt service payments. Therefore, as my right hon. Friend said earlier, we must attack inflation.

The choice now surely is for us to go for faster and more sustainable growth. Therefore, the third theme in the Budget was the Government starting to support all of those factors that can drive higher economic growth. We must not be left with a low- growth, stagflationary economy. I particularly welcome the tax relief for creative industries, more generous investment in economic infrastructure, and spending on research and development. However, the Government do not have the monopoly on wisdom in those areas and, particularly in the areas of infrastructure and skills, we should be much more open to using the innovation, the initiative and the help that the private sector can provide,

Beyond the measures that were announced in the Budget, may I say that, if we really want to achieve growth, we need to make sure that business succeeds. In terms of regulation, I urge those on the Treasury Front Bench to consider recommitting to the one in, two out —in fact one in, three out—rule. That would send the message to business that this is a Government who have changed their philosophy and mantra from eff business to love business, for we need to love business if we are to grow our way in the post-covid recovery.

Finally, let me say this to those on the Front Bench. Just as my hon. Friend the Member for Southampton, Itchen (Royston Smith) said, levelling up must not be about just geography; it must be about opportunity. Please can we ensure that we do not create a left-out London? Let us not forget that levelling up in one area must not mean levelling down in another, and I hope that the Budget will support that.

Leaseholders and Cladding

Stephen Hammond Excerpts

Tuesday 24th November 2020 Commons Chamber

[Christopher Pincher]

Something like 97% of buildings with ACM cladding in the social sector have been remediated or have remediation under way. Of course, we continue to work on the remediation of non-ACM cladding, and we will work with local authorities to make sure that that is done as swiftly as possible. Another Member previously asked me if I would encourage housing associations to work more swiftly to remediate their properties—I think it was my right hon. Friend the Member for Chipping Barnet (Theresa Villiers)—and I said to her that, yes, we will. I say to my hon. Friend: yes, we will work harder with social housing operators to make sure that their properties are remediated.

[Stephen Hammond (Wimbledon) (Con)]

Like so many colleagues across the House, I have had many constituents write to me about the problems they are suffering with cladding, remediation and getting some answers from both finance and insurers, so I will not repeat all of what has been said before. Could I just say to my right hon. Friend that I have an outstanding meeting request with his colleague Lord Greenhalgh, and I wonder whether he might facilitate that for me?

I heard the Minister’s answer a moment ago to the question about whether or not the Government would look at the amendment from the House of Lords, and I listened carefully to his answer. Can he tell me whether or not the Government are sympathetic to the amendment, and whether or not the Government might bring forward their own amendment that would be in order?

[Christopher Pincher]

My hon. Friend encourages me to facilitate a meeting with Lord Greenhalgh, and I am happy to try to assist him in that regard. Regardless of the rather byzantine practices in the other place, I trust that we can make that happen for him.

My hon. Friend asks whether we have sympathy with the amendment sent down to us from the House of Lords. I understand what the amendment is trying to achieve. I believe it is defective, but of course we will look at it from the point of view that another Chamber in this Parliament has sent us an important amendment, and we will give it appropriate consideration.

Planning for the Future

Stephen Hammond Excerpts

Thursday 12th March 2020 Commons Chamber

[Robert Jenrick]

I or the Housing Minister would be happy to meet the hon. Lady to discuss that matter. I believe it is subject to a judicial review, so it may not be possible, but I am happy to consult my colleagues in the Department to see whether it is appropriate for me to meet her at the moment.

[Stephen Hammond (Wimbledon) (Con)]

I am sure the Secretary of State is aware that one reason why the number of completions quite often does not meet the number of consents is that there is a problem in getting utilities to sites. He is absolutely right to point out that much has changed since 1947, including the way we build houses and the developments in modular building. Will his planning review specifically look at those two issues? That would allow us to meet the desire of the right hon. Member for Wentworth and Dearne (John Healey) to align completions and consents.

[Robert Jenrick]

Absolutely. A lot of important work has been done on utilities, not least by the National Infrastructure Commission, and I would like to take that forward. On the broader challenge relating to modern methods of construction, that will absolutely be at the heart of not just the planning work we are going to do but our broader housing strategy. There is a huge opportunity for us as a country to lead the world in new construction technology and to build good-quality homes at pace. I really want us to take that forward.

Southend Hospital

Stephen Hammond Excerpts

Wednesday 5th December 2018 Westminster Hall

[Sir David Amess (Southend West) (Con)]

I beg to move,

That this House has considered services at Southend hospital.

It is a pleasure to serve under your chairmanship, Mr Davies. I very much welcome my hon. Friend the Minister to his new post in the Department of Health and Social Care. I was on the Select Committee on Health for 10 years, which was probably too long, but during that time—I am bragging a bit—I initiated the debate on obesity, which some people now think they are discovering for the first time. We also dealt with the smoking ban, which I never thought would work, and with passive smoking, allergies and a whole raft of other issues.

I have to say that it is a long time since I heard anything original said about the health service. I have been all around the world and all over the country looking at facilities, and I am left with the conclusion, which I know the House shares, that our national health service is the best in the world. It is the only really nationalised health service that exists. The differences between the two political parties may be a bit blurred, but if it is down to funding, good luck with that issue—the money has to come from somewhere.

I am delighted that my hon. Friend the Member for Rochford and Southend East (James Duddridge) is here to support me. My right hon. Friend the Member for Rayleigh and Wickford (Mr Francois) and my hon. Friend the Member for Castle Point (Rebecca Harris) may not be here at the moment, but I feel that they are somehow here in spirit, because the four of us use the facilities at Southend Hospital.

I must take the opportunity to praise the staff at Southend Hospital, who I know only too well are overworked and underpaid. It is a difficult political issue to deal with, but they are so dedicated and they provide an absolutely excellent service. My hon. Friend the Member for Rochford and Southend East and I, and our families, have benefited from care at the hospital. We were so privileged to be at the Hospital Heroes awards ceremony in September, which celebrated the very best of Southend’s healthcare staff and those who go the extra mile for their patients. I congratulate all the winners and nominees and thank them for their dedication, compassion and considerable expertise.

I also praise the volunteers among my Southend West constituents, who give up their time, unpaid, to support the hospital’s work and help others. Those women and men are there day in, day out and week in, week out, giving a little extra help and support to people going into hospital, many of whom are somewhat concerned and stressed about what lies ahead. From befrienders to hospital gardeners to the library service, they should be commended for their invaluable contribution on behalf of patients across Southend.

Southend Hospital and healthcare services throughout Southend are at a crossroads. It could be argued that their future is uncertain. The Minister will be only too well aware of the mid and south Essex sustainability and transformation partnership plan for the reconfiguration of specialist services across hospitals in Essex. I must tell him that I will not support any changes to those services unless they are led by clinicians, not by politicians. It is up to the clinicians to put their heads above the parapet and argue the case for change.

The plans have been referred to the Secretary of State for review. I will not go into the whys and wherefores of what happened, but we have a Conservative-controlled local authority in Southend and I think the Conservatives were particularly concerned about changes to the stroke service, which is under the excellent leadership of Dr Guyler. I am not sure why all the plans have had to be reviewed. If the Minister cannot answer now, perhaps he could write to me to confirm whether there is a possibility, however vague, that we might lose funding as a result of the delay or that the funding we were promised might arrive less quickly. [Interruption.] Does he wish to intervene?

[The Minister for Health (Stephen Hammond)]

No, no—I was just listening very carefully to my hon. Friend’s speech.

[Sir David Amess]

Right. Well, there seem to be rumours that, as a result of the plans being referred, there is a real danger that the extra money that we were promised might not materialise or that there could be repercussions for the services at Southend Hospital. I appreciate that the Minister might not be able to comment on that issue at the moment, but in this short debate I hope to set out some of my constituents’ concerns, and my own, about how best to support the world-class services at Southend Hospital and ensure that everyone in all four constituencies receives the best possible care.

Southend has always been absolutely at the top of cancer services generally. I will not delay the House by listing all the organisations that have had a hand in delivering cancer services there, but Southend has always been very highly regarded. From its gynaecology training coming top in the UK and its trauma and orthopaedic team being named training hospital of the year, to its world-leading practice standards for cancer care, Southend Hospital has lots to celebrate about its services and patient care. The radiotherapy department deserves particular mention in the light of its recent CHKS accreditation for its pioneering radiation treatment, as well as its high ratings from the Care Quality Commission. The centre has led the way in utilising highly focused and concentrated radiation treatment on tumours that reduces harm to surrounding organs. It has treated more than 1,700 patients this year and is a great example of the importance of investment in driving world-leading research and developing innovative treatments.

This is where the sting comes in. NHS figures show that 36% of Southend cancer patients wait eight weeks for treatment after their initial GP referral. The Minister may have an answer to this, but more than a third seems somewhat high—more than twice the national NHS target. It is vital that more be done to speed up referrals and avoid such unacceptable delays in treatment, which can cause so much worry for patients. With world-class care on their doorstep, our constituents deserve nothing less than fast access to the treatments that they most need. I would welcome any comments from the Minister about speeding up the process.

Southend Hospital is currently trialling a mobile stroke ambulance unit—a pioneering and innovative treatment service that allows specialists to travel directly to patients and treat them en route to the hospital. Data is still being analysed, but clinicians have reported great successes, with specialists being able to deliver life-saving thrombolysis treatment just 16 minutes after the patient alert. That is absolutely incredible. We all know that the sooner a stroke is treated, the more likely a good outcome. Treatment in the first few minutes can make all the difference, so getting patients to a specialist as quickly as possible is imperative. Not only have patient outcomes been improved, but the unit has shown great potential to alleviate pressure on A&E departments. Some 88% of patients in the trial were admitted directly to a specialist stroke unit, freeing up resources across the NHS.

The trial is due to end on 19 December, but so far there has been no confirmation that this pioneering service, which has been funded entirely by charitable donations, will continue. I believe that greater support is needed to ensure that the hospital can retain the mobile unit. More than 100,000 strokes occur each year in the UK, so it is essential for the NHS to use such innovative services to ensure that we can deliver the best care to patients in the shortest time. I know that my right hon. Friend the Member for Rayleigh and Wickford is particularly interested in stroke care and in how it is delivered at Southend Hospital. I encourage the Minister to review the successes of the trial at Southend and to look into how such life-saving services can be offered to patients across the United Kingdom.

The critical issue of time in stroke care is a great concern for Southend. I appreciate that the Minister will be unable to comment on the STP’s proposed centralisation of stroke services in the constituency that I once represented—Basildon. However, maintaining the established stroke service infrastructure and keeping Southend as a centre of excellence is very important. Whatever the outcomes of reconfiguration, my constituents do not want to see the downgrading of the world-class stroke services in Southend, and patients put at risk.

There is a big issue about transport services, which I know is of great concern to my hon. Friends the Members for Rochford and Southend East and for Castle Point, and my right hon. Friend the Member for Rayleigh and Wickford. While Southend Hospital is leading the way in many areas of care, transfer to specialist services is obviously important. Patients are currently transported to acute services across Essex through the treat-and- transfer model. Although that is working in ensuring that patients get access to the specialist treatment they need, a big concern for our constituents is the impact that an expansion to the model could have. Inter-hospital transfers affect not only the patient, but their carers or families. The costs incurred and difficulties experienced by patients and visitors travelling across services need to be taken into careful consideration. It is essential that the local transport services, whether public transport or community transport organisations, can provide the right support to patients and their families.

--- Later in debate ---

[The Minister for Health (Stephen Hammond)]

It is a pleasure to serve under your chairmanship, Mr Davies, and to take part in this debate. I congratulate my hon. Friend the Member for Southend West (Sir David Amess) and pay tribute to my hon. Friend the Member for Rochford and Southend East (James Duddridge) and my right hon. Friend the Member for Rayleigh and Wickford (Mr Francois) for their contributions. They have all raised points that I wanted to come to and I hope I can respond to them in my reply, because the subject is very important. As constituency MPs, whether a Minister or no, we all recognise the crucial importance of local healthcare systems and what they deliver for our constituents.

My hon. Friend the Member for Southend West is well known as a passionate advocate for his constituents, and has been for many years, but he was also right to point to his distinguished service on the then Health Committee, a Committee that has always done so much to drive thought. He mentioned a number of issues and said he did not want to blow his own trumpet, but some of the issues that he raised are now mainstream issues, and that is hugely important.

My hon. Friend was right when he said in his opening remarks that he thought the NHS was the best health service in the world. I completely agree; that is right. He is also right, of course, as was my hon. Friend the Member for Rochford and Southend East, to say that it is the staff who drive the hospitals and the service for our constituents. As my hon. Friends did, I extend my thanks and those of everybody to those staff, and to everybody who works in the health service, whatever they do. They all contribute in a significant way. They also spoke of the role of volunteers, which was again right. I see the work that volunteers do in my local hospitals. People sometimes forget how that work contributes to the whole experience; it makes life easier for people at an extraordinarily stressful time. I also note with interest the comments made about the stars awards.

I had the chance to speak to Clare Panniker yesterday. She is clearly an impressive professional, driving change for the right reason, which is listening to clinicians and ensuring the best outcome for patients.

I wanted to make those remarks right at the start, and I will say a few words on the three issues that my hon. Friends have talked about—stroke, cancer, and transport and access. The national picture on stroke services is that there is a need to improve the quality of service provision and outcomes for all patients. It is well recognised that stroke is the fourth-biggest killer in the United Kingdom and a leading cause of disability. Although the 10-year national stroke strategy came to an end last year, a programme board was established in March 2018 to oversee the development of a new stroke plan. The fact that one has continued does not mean in any sense that the prioritisation has changed; indeed, that board is now chaired by NHS England’s medical director, Steve Powis, and by the chief executive of the Stroke Association.

To add to what my hon. Friend the Member for Southend West said about specific local issues, we should also mention the importance of the national context. I absolutely understand some of the issues that he raised, and he is right to say that changes, and the rationale for changes, should be clinician-led rather than politician-led. As my hon. Friend the Member for Rochford and Southend East acknowledged, that is actually what is happening with the transformation programme, which is why I understand the frustration of my hon. Friends. They will understand that it is impossible for me to comment on that in detail today due to the referral, but I give the guarantee that when the process has ended and the decisions have been made, all my hon. Friends—not only the three who are present, but others who are concerned—will of course be given sight of that recommendation and the chance to comment on it.

My hon. Friend the Member for Southend West has explained that he has a particular interest in transport. For the sake of clarity, it is important that I set out what has been agreed by the clinical commissioning group and what some of the alternative paths are, in response to the point made by my right hon. Friend the Member for Rayleigh and Wickford. On the transfer of patients, we all know that the CCGs have approved a treat-and-transfer model, whereby a small number of patients will receive initial treatment at their local A&E before being transferred to another hospital. Decisions on patient transfer will be made solely as clinical decisions and discussed with patients prior to transfer. Modelling by the CCG and clinicians suggests that, on average, 15 patients a day might be transferred from their A&E to a different site for clinical reasons and due to the proposed changes. It is a vital part of a joined-up service, especially where specialisation increases—the need for this may or may not increase. Like my right hon. Friend the Member for Rayleigh and Wickford, I encourage hon. Members to continue to press this matter with the STP once it is resolved, because I think it is vital.

[Mr Francois]

The critical thing we need to know is who will provide the service. The obvious answer is the East of England Ambulance Service, but it faces serious resource and capacity challenges. It is difficult for us to support this plan wholeheartedly until we are given definitive answers. Who will provide the service, and how will it work in practice?

Increasing Choice for Rail Passengers

Stephen Hammond Excerpts

Wednesday 11th July 2018 Westminster Hall

[John Penrose (Weston-super-Mare) (Con)]

I beg to move,

That this House has considered increasing choice for rail passengers.

It is a pleasure to have you in charge of our proceedings, Mrs Moon. It seems that almost no one is terribly happy with how our railways are performing at the moment. Not passengers, who have to suffer delayed or cancelled trains when timetables go into meltdown, as they have done repeatedly recently, causing misery for millions. Not the unions, who have been in an on-off dispute on a variety of routes for months. Not the staff, who have to cope with angry passengers every day. Not the rail firms, who have repeatedly handed back expensive franchises to the Government because they cannot make them work, and not rail Ministers, who face continuous incoming flak, from urgent questions in Parliament to critical headlines and irate passengers who lose thousands of man-and-woman hours battling to get to and from work every day.

That is odd, because until recently Britain’s railways were quite a success story; something to be proud of. Since denationalisation, passenger rail journeys have more than doubled, and we have one of the safest railways for passengers of any major network in the EU. What has gone wrong? Why is everybody on all sides unhappy with where we are today? I argue it is because franchising has run its course. It might have worked in the past, but not any more—at least, not well enough. It has become a brittle, inflexible, fiendishly complicated, expensive old thing that causes misery and frustration for millions and which nobody loves.

The root of the problem is that franchises put train firms, rather than passengers, first, because passengers do not have any real choices when things go wrong. Why should we be at the mercy of a single train company when the timetable melts down? If a train is delayed or cancelled, we ought to be able to switch to a different firm’s service that is still running instead; franchising takes away that choice. If we do not like the service the franchise-holding firm provides—tough. Our only choices are to get in the car, which could mean traffic jams and is not very green, get on a bus, which is usually slow, or just lump it and get back on the train.

It is weird, really. We would not put up with being banned from changing to a different brand of coffee, cornflakes or broadband. We expect to be able to choose between a dizzying array of different car insurers or energy firms. But trains? No.

[Stephen Hammond (Wimbledon) (Con)]

Although I agree with my hon. Friend that franchising has severe problems and has run its course, does he agree that one of the central problems is Network Rail and its inability efficiently to allocate track access, and the money it gets for investment and upgrading, to the franchises, as it would do if there was more open access on the system?

Open Access Rail Services

Stephen Hammond Excerpts

Tuesday 10th July 2018 Westminster Hall

[Martin Vickers]

I acknowledge what the hon. Gentleman says, and I have to say that I have experienced similar problems on some of my own journeys. Hull Trains, in particular, has recently gone through a rather bad spell, from which it has now hopefully recovered. That does not take anything away from the concept of open access which, as the hon. Gentleman acknowledges, has provided services to towns off the main east coast and west coast lines. That is essential if we are to develop the north-east and Humberside economies.

[Stephen Hammond (Wimbledon) (Con)]

Will my hon. Friend give way?

[Martin Vickers]

I give way to yet another former Transport Minister.

[Stephen Hammond]

Does my hon. Friend agree that the concept of open access could drive efficiency back into the railway system, where it is needed? He mentioned the failure of the franchising system. Network Rail’s inability to link to the requirements of the operator is one fundamental problem with the rail system. A slot auction system for access could give Network Rail an incentive to align itself with the operators’ objectives.

[Martin Vickers]

I thoroughly agree. My hon. Friend’s experience as a former Minister makes that a particularly relevant point.

We are currently experiencing record private investment in UK rail. In 2016-17, that investment totalled £925 million—the highest since records began. The vast majority—£767 million—was spent on rolling stock. Some of that went to Hull Trains.

Given the other demands on the Budget, the idea that more taxpayer investment would go towards the railways was a myth. I know the Opposition’s policy is to renationalise the railways, but those of us who remember the nationalised system know that, in fact, it spiralled down because of a lack of investment. The reality is that there are so many calls on Government investment that transport does not get what it deserves. If the Government have a choice between investing in the health service and improving the rail services to Cleethorpes, I rather suspect that the rail services to Cleethorpes would suffer.

Space Industry Bill [Lords]

Stephen Hammond Excerpts

2nd reading: House of Commons
Monday 15th January 2018 Commons Chamber

[Stephen Hammond (Wimbledon) (Con)]

It is a great pleasure to follow my hon. Friend the Member for Morecambe and Lunesdale (David Morris), who is the chairman of the parliamentary space committee.

When I listened to the opening remarks of my right hon. Friend the Member for Wantage (Mr Vaizey), who said that my hon. Friend the Member for Mole Valley (Sir Paul Beresford) had tiptoed into the debate, I realised that I was about to do exactly what the Bill is not intended to do, which is to crash into the debate. There are moments when I think I know a little about transport, but listening to the erudite, learned and extensive speeches so far, I realise that I know almost nothing about the sector. However, I want to make three very basic points, if I may.

When doing some thinking about what I should say tonight, I looked at the industrial strategy. Its strapline is: “Building a Britain…for the future”. That is exactly what this Bill is all about, and that is why it deserves our support.

Quite rightly, there have been a lot of comments from Members tonight about the size and growth of the sector. Quite rightly, in his opening remarks the Minister set out the Government’s ambition that the UK should be at the forefront of the opportunities that arise from this technology, and our excellence in the small satellite market. Overall, however, the key thing is that not only the Government but the private sector will invest in this industry. Therefore, if we want to see that investment, it is key that certain things happen. One is that the Government are in favour of it and create the right environment for businesses to succeed. Part of that is about putting in place the legal certainty for investment, as mentioned previously.

Whichever way we look at the current regulatory environment, it is in need of updating, so the Bill is particularly appropriate. That brings me to my first substantive point, which is that many people in the House will know that, in fast-developing technologies and industries—particularly across the transport and infrastructure sector—not only is the regulatory environment lagging, as it is currently in the space sector, but the Government make no attempt to bring it up to date or to set in place a framework that will anticipate developments. One of the great advantages of this Bill is not just that it sets out a regulatory framework, but that it sets out one that is likely to future-proof the industry’s development over the next few years. I commend that thinking because, in so many other areas of infrastructure and technology, we have seen regulatory environments that frustrate future development.

From my quite cursory look at the Bill, it seems that there are a couple of issues that the Minister will particularly want to look at. I should start by saying that I particularly commend clause 1(4), which makes the point I have just been making. Normally, Back Benchers say to Ministers, “The last thing we want is for sweeping and inclusive powers to be given to Ministers”, but that is what we need in this sector. We need forward thinking and examples that can future-proof regulation. The demand for small satellites, the expansion of markets, the technology and global competition mean we need a relatively free and loose regulatory environment that can anticipate developments—within the context, of course, of ensuring safety and room for development. That said, there are issues with clause 1 that the Minister will want to explore later: for instance, some of the language, particularly some of the geographic restrictions, might prove to contain rather than allow development.

I also want to guide the Minister towards clause 8. There are two things there on which he will want to reassure the House if he really does want a forward-thinking regulatory environment and development in the sector. The phrase

“contrary to the national interest”

could easily be defined where an activity threatens either security or legal aspects, but he will want to ensure that activities are not regulated on the basis of prejudice. If one were to follow previous regulatory systems, there could be a whole proliferation of opportunities, in the area of economics, caught by the phrase. It must not stifle development.

The Minister will also want to reassure the House about the phrase in clause 8:

“the applicant has the financial and technical resources”

to undertake activities. The applicant should, of course, be able to fund its activities and must ensure that it is technically competent in this area, and it must ensure it has the right liability insurance and all aspects of safety in place, but—if I may guide the Minister to other regulatory systems, particularly in the financial services world—such statements elsewhere can be used to stifle small firms and initiative and prevent smaller companies from competing against larger companies. That sort of phraseology is often used to put in place relatively superfluous information requirements that prove to be overly exacting. I ask him to think carefully about that phrase when regulations are made so that his ambition and, I am sure, the whole House’s ambition—that the industry might thrive and opportunities be made available to firms both large and small—might be achieved.

Secondly, many colleagues have spoken about the marvellous opportunities in their constituencies, and it would be foolish of me not to take the same opportunity. Many would perceive Wimbledon as a leafy suburb in south-west London, which indeed it is, but I also like to think of it as tech suburb. Our small high-tech and biotech companies exemplify what is true of the opportunities in the Bill for all Members and their constituencies. Members might not have the space for a spaceport, but they will have the opportunity to bring forward and sponsor the inspiration that space brings to many and to create opportunities in the supply chain. That is what I will be doing in my constituency.

Many concentrate on spaceports and the large companies, but one forgets the opportunities for the small high-tech firms that will arise from the expansion of the satellite market and sub-orbital spaceflight. It is incumbent on us to ensure plenty of opportunities for the supply chain and small companies and to ensure that the skills required are given the appropriate boost. In the latter part of his speech, my right hon. Friend the Member for South Holland and The Deepings (Mr Hayes) talked about skills. It is clear that a greater emphasis needs to be placed, both at secondary school and university level, on the skills that will allow industries such as the space industry to develop.

Finally, as I have mentioned extensively already, it is often the smaller firms that produce the ideas that enable big leaps forward such as those we expect in the space sector. It is often those accelerator institutions that push the technology forward. I hope that the Minister and the Treasury will have due regard to ensuring that those institutions can prosper and succeed so that the developments in technology, some of which we cannot anticipate, can come forward and so that sub-orbital spaceflight and space activities can succeed in the future. The Bill will future-proof the regulatory environment and could make a significant difference to investment and innovation in transport over the next decade.