European Union (Withdrawal) Act

Debate between Stephen Kerr and Alan Brown

Wednesday 9th January 2019 Commons Chamber

[Stephen Kerr]

I am grateful to the hon. Gentleman for that intervention. The respect that he describes is reciprocated—to him, and indeed to all his colleagues, whom I recognise as Unionists. I do understand the complexities, and a lot of the emotion as well, around the issue of Northern Ireland’s place in the United Kingdom, but I have thought long and hard about Northern Ireland, as well as Scotland, and I believe that the backstop does not have to, and must not, represent a threat to the integrity of the United Kingdom, and that those of us who want to honour the decision of the people on 26 June must work together to make Brexit happen. Otherwise, we will have a crisis of political confidence in this country. There are so many people—sadly, on both sides of this House—who do not want to honour the result the people gave us in June 2016. The alternatives on offer are this agreement, no Brexit, or a hard, no-deal Brexit. I will come back to those points, but I am grateful for the hon. Gentleman’s intervention. Negotiations are about achieving the acceptable, but very rarely about achieving the perfect. The withdrawal agreement is a predictable compromise that is bearable for both sides—and, crucially, it delivers on the referendum result.

Since shortly after being elected to this House, I have served on the Business, Energy and Industrial Strategy Committee. Its latest report revisited evidence we had received 12 months earlier from businesses in strategically critical sectors of the UK economy—automotive, aerospace, pharmaceutical, and food and drink. We collected evidence on their response to the withdrawal agreement, and as we make clear in the report’s conclusion, while they would have preferred to have stuck with the status quo, they now need clarity and certainty, and for that reason, their consistent message to the Committee, and to the House through the report, is that we should support the withdrawal agreement. They were also very respectful of our democracy and accepted the result of the June 2016 referendum—something that so many in this House seem unprepared to do. These business leaders were prepared to accept that result, and they were actively seeking to apply a pragmatic approach to an undoubtedly complex set of problems. It is now for us parliamentarians to be pragmatic and deliver the certainty that businesses need, and we do that by supporting the withdrawal agreement.

I am a Unionist; it is core to who I am. I have an unshakeable belief in our country and its peoples, in Scotland and in the United Kingdom, the most successful political union in the history of the world. My warning to colleagues is simply this: nationalism is waiting in the wings. The withdrawal agreement is, in my judgment, no threat to the Union, but no deal is. The threat in Scotland is from the Scottish Nationalists; they want the disruption that no deal would bring, because their nationalism is more important to them than any other issue. They and their leader make no secret of the fact that their single unifying purpose is to break up the United Kingdom, and that transcends every other single issue, economic or social. They want chaos; they want the disruption, because they believe it will give them the platform to launch their bid, much talked about within their ranks, for a second independence referendum, so that they can break up the United Kingdom.

I say to those who advocate no deal, particularly Conservative Members, that to me, as a Scottish Unionist, they exhibit some of the same symptoms as the SNP. Like the SNP, they appear to be prepared to sacrifice jobs and prosperity to realise their version of our future.

[Alan Brown]

The hon. Gentleman talks about nationalism. Who gave EU citizens the vote in the 2014 referendum? Who gave EU citizens the voting franchise, and who did not?

Universal Credit Roll-out

Debate between Stephen Kerr and Alan Brown

Tuesday 24th October 2017 Commons Chamber

[Stephen Kerr]

Let us look at what happened when Labour launched its tax credits with a big bang. I am still helping constituents who got caught up in that mess, which included £2 billion in underpayment and overpayment errors.

It is worth reminding ourselves why universal credit is such an important plank in welfare reform. It is about helping people to prepare for a return to the world of work. It is designed to mirror the world of work. When people return to the world of work, it underpins the promise that people will always be better off in work than on benefits. Under the old system, there was a cliff edge, because it made sense to work for only 16 hours or less, and it cannot be good if we end up penalising people because they chose to do the right thing and go to work. The old system punished work. People could lose more than £9 of every £10 extra they earned. Under Labour, the benefits system was so complicated that some people found that there was no point to working more because they would lose more in benefits than they would earn in work. The old system failed to get young people into work. The old system subsidised low wages by letting the tax credits bill get out of control.

It is also worth remembering what work does for people.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

On the point about low wages, does the hon. Gentleman agree that the Government should pay the real living wage, not the kid-on living wage?

[Stephen Kerr]

I am very proud that the Conservatives have introduced a national living wage. It is worth remembering what work does for people. It instils a sense of confidence and of self-worth. It enables people to manage their own affairs and make their own decisions for themselves and their families, to be independent, and not to depend on anyone or anything. That is what work does, and that is why it is so important to record again today that more people in this country are working than ever before and that unemployment is at a 40-year low. That is a good thing that we should be proud of. Universal credit is helping people to get back into work. Those on universal credit are four percentage points more likely to be in work within six months than jobseeker’s allowance claimants in similar circumstances. Universal credit underlines the salient principle that people should always be better off in work than on benefits.

I pay tribute to the Ministers at the Department for Work and Pensions. What I have experienced from them is a genuine willingness to engage and to receive feedback, and that is both positive and constructive. They have been impressively responsive to my concerns, and more especially to the cases of my constituents that have been brought to their attention. I am pleased that there has been a response to the urgent need for payments. Claimants who want advance payments should receive them within five working days, and for those in immediate need there is a fast-track payment that can be received on the same day. I was initially concerned about the payback period for advances, but I am assured that repayments can be delayed for up to six months, and for a further three months if necessary. I have also received reassurances from Ministers about the issues that face rural constituencies.

I repeat that while I accept that no one should have to wait for six months with no money, it should not be beyond our means to make improvements in the system to reduce the time before the first payments are received. However, it would be wholly wrong to pause the universal credit full service roll-out now.

Smart Meters Bill

Debate between Stephen Kerr and Alan Brown

2nd reading: House of Commons & Money resolution: House of Commons & Programme motion: House of Commons & Ways and Means resolution: House of Commons
Tuesday 24th October 2017 Commons Chamber

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I start with a slight confession: I sometimes wonder whether I am easily confused. I ask that because I have been looking at the information that the Government have put out in the briefings associated with this Bill. I have to ask myself, “Are the Government easily confused, or are the Government trying to confuse us?” I want to highlight some of the issues that I have picked up.

First, it is claimed that the extension of the Secretary of State’s powers to intervene until 2023 does not extend the actual period of the smart meter roll-out beyond the 2020 target date. The Government claim that they are on target to hit their deadline, but analysis shows that 53 million smart meters need to be installed but that only 7.7 million meters have been installed since 2011. That leaves 45 million smart meters to be installed in just a three-year period.

[Stephen Kerr]

Is there not an upside to this? The meters that have been installed so far have fairly limited functionality and interoperability. The upside is that the second generation of meters, which will be fully functional, will allow the Government to put their foot to the floor and move ahead with these meters.

[Alan Brown]

I understand the hon. Gentleman’s point, and I thank him for it. It is a bit like saying that the long-drawn-out introduction of universal credit is good, when the roll-out was a shambles. It is not enough to say, well, this roll-out is a shambles but that is good because better technology is coming further down the line.

--- Later in debate ---

[Stephen Kerr]

The other issue is connectivity. There is not the broadband or mobile telephony coverage that these rural areas need to sustain the functionality of the meters.

[Alan Brown]

I agree. There is an issue with connectivity, and a problem with gas meters on external walls. Flats and tenements quite often have banks of meters installed in communal areas, and there is not yet a solution for the installation of smart meters in those cases. Frankly, the 2020 deadline is dead in the water.

As I said, the consumer pays for any increase in labour costs and recruitment to try to hit a deadline, so that is an additional cost that eats into savings and is probably not yet projected. I am a wee bit unsure about the Government’s estimate of the financial benefits of the smart meter roll-out. I am not saying that the roll-out is not a good thing, but I do question some of the figures attributed to it. The only guarantee that consumers have is that they will have to pay for the £11 billion installation costs. As we have already heard, those costs are increasing.

There is an estimated direct consumption saving of £5.3 billion, which is only half the installation cost. There is also an assumption about long-term behaviour—that customers will continue to operate a reduced energy usage. I have a concern about human behaviour. It may be the natural instinct of many customers to modify their behaviour and turn down their electricity usage when they get smart meters, but bad habits may creep in over a long period and the savings might not be realised at the same level.

There are other estimated savings in the Government’s cost-benefit analysis that are, frankly, quite spurious. The Government estimate £8 billion of supplier benefits, but there is absolutely no guarantee that the £8 billion that suppliers are predicted to save will be passed on to consumers. The Secretary of State intervened earlier to suggest that the market will dictate that these savings will rightly be passed on to consumers, but I draw the Minister’s attention to the fact that market failure is the whole reason that we agree on energy price caps. There is no way that we can guarantee that future savings for suppliers will be passed on to consumers.

Other spurious savings estimates include carbon-related benefits of £1.3 billion and £98 million in air quality savings. Now, reducing carbon emissions is a good thing, but I question how we can quantify those reductions as savings that will go direct to the consumer. The Government estimate savings for each household of £11 per annum by 2020 and £47 per annum by 2030, and £16 billion of savings were estimated overall. However, as my colleagues have touched on, the bottom line is that these estimated savings of £16 million are completely dwarfed by the £30 billion project that is called Hinkley Point C. That wipes out any projected savings from this programme.

Other hon. Members have mentioned that all consumers are paying for this programme, so surely the fuel poor and prepayment customers should be targeted first and given assistance. We should ensure that these vulnerable customers get the smart meters they deserve. Smart meters are supposed to end estimated billing, but it is acknowledged in the Government’s own factsheet that accompanied some briefings that if somebody with a first generation meter changes supplier, it is quite possible that they will lose the functionality of the smart meter. Even if they retain some functionality, they will end up back with estimated meter readings. That is counter- productive and the opposite of what the smart meter roll-out is supposed to achieve.

It was said that the second generation roll-out will start in July 2018. Well, we need the Minister to confirm how certain that is. Will the energy suppliers be forced to move on to the second generation meters, or will they be able to use up the backlog of 2 million first generation meters or whatever the number is? What if the initial companies are doing cheap deals on the first generation meters to get them out the door? Are we still going to be stuck with them?