Draft Companies (Directors’ Remuneration Policy and Directors' Remuneration Report) Regulations 2019

George Freeman Excerpts

Wednesday 15th May 2019 General Committees

[George Freeman (Mid Norfolk) (Con)]

I am grateful to the Minister for introducing this measure. It is all about the transparency of pay, which we should all believe in because it helps shareholders to hold directors to account on our behalf. Some smaller technology companies are concerned about employee share option schemes, which the Minister knows are a key way of rewarding people in tech start-ups. Can she reassure me that there is nothing in the draft regulations that will in any way change a company’s ability to set the strike price at a level that rewards directors or employees? I believe that may be in some other measure, but I just want to check that it is not contained in the draft regulations.

[Kelly Tolhurst]

My hon. Friend is quite right that a part of the particular sector to which he refers has concerns about potential future restrictions. However, this measure is about transparency and making sure that when shareholders are asked to vote, they have access to that information, and also that that information is publicly available. It is all about transparency and shareholders being able to exercise their rights and having the right information to make informed decisions.

On the impact of the draft regulations, the Government believe that the additional cost to business will not be significant. The UK’s executive pay reporting framework is already one of the most robust in the world, and the draft regulations propose only targeted enhancements to the existing remuneration policy and remuneration report. The Government tested the draft regulations in advance with a wide range of interested parties, including business groups, investors and civil society representatives. No significant concerns were raised, and a small number of technical comments helped to inform the final drafting of the regulations before they were laid in Parliament.

Much of the shareholder rights directive provisions on executive pay are already enacted in UK law, following previous rounds of Government reform on executive pay domestically. I pay tribute to Parliament and in particular the Select Committee on Business, Energy and Industrial Strategy for the active and constructive role that MPs have played in supporting and informing the ongoing reform process.

Most recently, the BEIS Committee has produced a number of recommendations following its recent fair pay inquiry, and I was glad to appear before it and give evidence. The Government will respond to the Select Committee’s report very soon. In the meantime, and to sum up, the draft regulations will increase further the ability of shareholders to scrutinise how directors are rewarded for their performance. In doing so, the draft regulations will enable the UK to implement articles 9a and 9b of the revised shareholder rights directive covering executive pay, to the extent that they are not already given effect in the UK. I hope that the Committee will approve the draft regulations.

[Bill Esterson (Sefton Central) (Lab)]

It is a real pleasure to serve with you in the Chair, Ms McDonagh, and it gives me the opportunity to congratulate you on the fine work you have done over the years in fighting for workers’ rights on a number of occasions. [Hon. Members: “Hear, hear.”] I am glad to have had the opportunity to say that.

The draft regulations remind us of how promises to curb executive pay used to have a prominent place in this Government’s agenda, along with issues such as having workers on boards. It was encouraging to see Julian Richer give employee ownership a vote of confidence yesterday, with his announcement about the future of Richer Sounds. I might also add that that was a welcome endorsement of Labour policy. It is in the context of long-running debates between both parties represented here this afternoon about worker and shareholder democracy that we are considering the draft regulations.

We do not oppose the draft statutory instrument, but we do not think it goes far enough in tackling the gap between the high pay of a handful of senior executives and the pay of everyone else.

The Institute for Public Policy Research North report that was published yesterday was a timely reminder of the income inequality that sees one in four workers in the north of England being paid less than the living wage, with many worse off than 10 years ago. Similar challenges and income inequalities exist right across the country.

The draft regulations state that the directors’ remuneration report must be made available, free of charge, on the company website for 10 years, showing any split or fixed and variable payment to directors. Crucially, reports must compare the annual change in directors’ pay with the yearly change in the pay of company employees, including over a five-year rolling period.

That sounds broadly fine but, as noted by the Secondary Legislation Scrutiny Committee and the House of Lords, the directive and draft regulations introduce other responsibilities that cut across a wide range of bodies, both departmental and non-departmental. The Minister referred in her opening remarks to those measures relating to the Treasury, the Financial Conduct Authority and the Department for Work and Pensions. When she responds, will she update us on whether other Departments will need to introduce regulations and, if so, when we can expect to see them? I ask that because the deadline to incorporate the EU directive into UK law is 10 June, so if additional regulations are required the Government will have to get a move on. That also gives rise to the question as to why it has taken until today to bring these draft regulations to Committee. Were the Government anticipating a no-deal Brexit, which would have resulted in the draft regulations not being transposed?

The essay crisis Prime Minister left office after the 2016 referendum. In his absence, I wonder if he has been replaced by an essay crisis Government. Looking at the former Minister, the hon. Member for Watford, who is sitting opposite me, perhaps I am on to something.

The High Pay Centre report shows that the Government urgently need to do more. It shows that between 2014 and 2018, the first full five years of the “say on pay” regime introduced by the coalition Government, every single FTSE 100 company pay policy put to annual general meetings was approved by shareholders. Across more than 700 pay-related resolutions voted on at AGMs over the same period, the average level of shareholder dissent was just 8.8%, and only 11% of pay-related resolutions attracted significant dissent levels of over 20%.

The intervention by my hon. Friend the Member for Slough about the challenge posed by the disengagement of owners and shareholders of large corporations is particularly pertinent. He asked how the draft regulations address the gap between top executive pay and everybody else’s, as well as the gender pay gap. The Minister has indicated, as do the draft regulations, that information is provided. What is not provided is a way not just to change the culture of shareholder disengagement, but to create a regulatory environment or teeth to address the challenge and difficulties presented by both the pay gap and the gender pay gap.

[George Freeman]

Does the hon. Gentleman agree that it is important to look not only at the gap between the highest and lowest paid in a company, but at the extent to which remuneration is linked to company performance overall, and the extent to which those who are being rewarded are being rewarded for taking risks and delivering above-trend growth? Does he also agree that we should look at the broader issue of wider share ownership in a company? Inequality in itself is not necessarily a problem, provided that the people who are lower paid are benefiting from the success of the company. Does the hon. Gentleman agree that that is as important a metric?

[Bill Esterson]

That is a very good challenge. Julian Richer is a responsible employer who has treated his employees very well over many years. He is giving a £1,000 bonus to each staff member and delivering an employee-owned future for the business.

One of the historical problems with the regime of rewarding performance is that it has rewarded apparent immediate success without taking the longer term into account. There have been scandals over many years, with some senior executives raking in enormous bonuses only for us to discover later that the apparent success of the organisations they ran was built on sand and that the true underlying performance was not reflected in the short-term results. We can all think of some very high-profile examples; Enron is one, but there have also been many in this country, which I deliberately will not mention at this stage. The hon. Gentleman’s challenge is an important one, but we have to make sure that any executive remuneration is truly fair over a longer period.

To be fair to the hon. Gentleman, I think he accepts the wider point that fair pay must reflect the contributions of people throughout the organisation. There is a degree of consensus that it is extremely important for the relationship between the pay of senior executives and that of others in the organisation to be fair and balanced, difficult though attempts to achieve that may be. I welcome this debate and the fact that the draft regulations address the matter, but the question is how much further we need to go and what steps we must take to maximise the potential benefits.

When the current Prime Minister took over, she made an initial commitment to put workers on boards, but it was very quickly downgraded and appears not to have advanced. Perhaps the Minister could tell us when those sorts of measures might be introduced.

Following on from the intervention from the hon. Member for Mid Norfolk, what is the most effective way to bring up the pay of working people and combat rising inequality? The answer is to join a trade union. The Government have failed to move beyond the union-busting mindset—that is obvious from their Trade Union Act 2016—and to look to a future that involves unions and employers working together responsibly. The Institute for Public Policy Research has shown that there is a strong correlation between high shares of income going to the top 1% of earners and low trade union membership.

Offshore Wind Substations: East of England

George Freeman Excerpts

Monday 11th March 2019 Commons Chamber

[George Freeman (Mid Norfolk) (Con)]

In the immortal words spoken by my Whip each evening, may I ask colleagues please to stay for the Adjournment? It is a great privilege to be able to rise to speak in this House on behalf of our constituents, and it is no less a privilege for me to do so tonight for one of my smaller villages, the village of Necton. Until tonight, the village was famous for being mentioned in the Domesday Book, where it appears as “Nechetuna”, the name meaning town or settlement by neck of land; for All Saints church, in the benefice of Necton; and for a magnificent 14th-century grade II listed tomb, which is reputed to be that of the Countess of Warwick. As of this year, Necton becomes famous for something else: being the home of the world’s largest concentration of substation infrastructure for the transmission of offshore-generated electricity to connect to the grid.

Tonight, I want to use the privilege of speaking in the House for Necton to raise some important issues about the lack of proper strategic planning to deal with the bringing onshore of the infrastructure necessary for connection. That links to the statement that we have just had, because the slogan that has fuelled the Brexit revolution was: “Take back control.” For what have we taken back control—to be overrun by unaccountable quangos, or to act on behalf of the people whom we are here to serve?

[Jim Shannon (Strangford) (DUP)]

rose—

[Jim Shannon]

I congratulate the hon. Gentleman on securing the debate. Does he agree that tidal energy is not being used to its full potential? The power that tidal turbines can bring to my constituency—in Strangford lough, in particular—proves beyond doubt that substantial amounts of energy could be harnessed and diverted, and further consideration should be given to perfecting the offshore and renewable energy sources in our constituencies. We think we could do more with it, as he has done.

[George Freeman]

The hon. Gentleman makes an excellent point. Had I been in charge of energy policy at the relevant time, I would have doubled nuclear capacity when we could have got it cheap and invested more in long-term research on a whole range of renewables, including tidal. But we are where we are, and tonight my constituency faces the enormous challenge of hosting this national infrastructure.

I want to make it clear that I am a strong supporter of renewable energy. Indeed, if the wind is to be used, I would rather it were used offshore than onshore. Investment in offshore wind in East Anglia is phenomenal, and it will generate a large number of jobs. Much more importantly, it will reduce our dependence on fossil fuels and dramatically accelerate our work on climate change; it will lessen our dependence on energy from Russia and the middle east; and it is generally a very good thing. I do not want anything I say to be taken as in any way against the offshore wind generation revolution.

East Anglia is now the global hub of offshore renewable energy, and many of the points I am raising tonight impact on Norfolk as well as Suffolk. I am delighted to be joined tonight by my hon. Friend the Member for Waveney (Peter Aldous), and to have the support of the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Suffolk Coastal (Dr Coffey) and the Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Norwich North (Chloe Smith). My hon. Friend the Member for Suffolk Coastal is here on the Front Bench, muted by virtue of her high office but present and supportive as ever—with a thumbs up for the camera.

I want to raise three questions tonight. First, what strategic options have not really been debated properly in Norfolk, Suffolk or East Anglia, and have the Government looked, or required the relevant agencies—in this case, National Grid—to look properly at those options and do a proper cost-benefit assessment and environmental impact assessment? Secondly, what guidance and provisions cover small communities such as Necton when they have to host national infrastructure on the scale that we are talking about? When I talk about a substation, I am not talking about something the size of a container that hums in the rain behind a hedge; these are the size of Wembley stadium, and I shall have two of them outside one village. Thirdly, what can a community that is being asked to carry that kind of infrastructure expect in the way of proper consultation and community benefit?

[Peter Aldous (Waveney) (Con)]

The offshore wind sector deal, which was launched by my right hon. Friend the Minister for Energy and Clean Growth in Lowestoft and Yarmouth last Thursday, provides for the Government and the industry to work together to maximise the benefits of offshore wind to the UK and to regions such as East Anglia. The sector deal makes specific reference to the need to ensure that the impact of onshore transmission is acceptable to local communities such as Necton. Does my hon. Friend agree that this provides the framework for the Government, the industry, National Grid, the Crown estates, councils and MPs to work together to put in place a sustainable solution to the problems that he is quite rightly highlighting?

[George Freeman]

I am grateful to my hon. Friend for making that excellent point, and I hope that the Minister will pick up on it in her closing comments. He has pointed to something very important.

The key question that is being asked in our part of the world is: if we are to host this incredible investment—there is up to £50 billion of investment already in the pipeline; I have two wind farms connecting through my constituency and there are 10 more coming—what voice should the people of Norfolk and their elected representatives have in shaping the way in which that infrastructure is connected? At the moment, it looks very much like a free for all. Each wind farm applies for its own cabling and its own substation, with the result that we waste energy, we waste huge amounts of land and we massively increase the environmental impact. This leaves Norfolk powered by renewable energy but disempowered when it comes to the democracy of those decisions and without any benefit. In our part of the world—I say this as a supporter of renewable energy—it is beginning to feel as though the applicants are using the national significant infrastructure planning regulations to bypass and circumvent the need for any meaningful conversations at all. This explains why I have had such strong support from other colleagues in the area.

I have taken an interest in this, and I have been a Parliamentary Private Secretary in the Department, so I was quite surprised that I first heard about the scale of this infrastructure in my role as a constituency MP, when I was confronted by the application for the Dudgeon wind farm. At the time, the proposal was to put it close to Necton. I did not particularly have a problem with that, but I did have a problem with the siting. It was proposed to put it on the top of a hill in an area of natural beauty with environmental protections. Anyone who had actually been to that area would have said that it was a daft place to put a substation. With the active co-operation of the then applicant company, we sat down with the parish councils and were able to agree that it should be put in the low-lying land next to the village of Necton.

A few years later, in 2013, it became clear that the Vanguard and the Boreas wind farm applications were coming, and that they would need another substation. That was my first surprise, because I felt that the first substation would have been big enough for all those wind farms. However, it turns out that each wind farm will have one. The process of consultation, led by Vattenfall, has led to increasing levels of concern not just for me but for the local community. Throughout all the consultation phases, no one is actually listening to the voices of the people on the ground. We have ended up with this enormous structure placed on top of the hill, visible to five villages and raising all sorts of environmental impacts, including light pollution and impact on the landscape. This has happened in the teeth of a howl from the local community. They do not mind having a substation, but could it not have been put out of sight in the low-lying land next to the previous substation? You could not have made this up.

What has been shocking in this process is the absolute lack of interest from the applicant in the voice of local community representatives, from the parish council to councillors to the MP, because it seems to have been led to believe that it is able to circumvent that local representation under the nationally significant infrastructure planning rules.

The more that one looks into the process by which we have ended up here, the clearer it has become that there has been no proper consideration of the strategic options for taking this scale of energy offshore. Indeed, a number of people in both Norfolk and Suffolk have suggested at various points that it would be rather more efficient to have an offshore ring main to collect the electricity and then have it brought onshore at one or two points with a major substation, instead of requiring each individual wind farm to have its own cabling and substation. You might think that a sensible proposal, Mr Deputy Speaker, and I see you nodding, which is encouraging—neutral though you are—but at no point in the past three, four, five, six or seven years has there been a strategic discussion in Norfolk or Suffolk to which the elected representatives at council or parliamentary levels could contribute.

It appears that the National Grid has merrily gone through the national planning process and has responded to applications, but we are in danger of having hugely unnecessary levels of cabling and substation infrastructure, all of which involve high-security installations that represent something of an energy security challenge to the UK in these dangerous times. To illustrate that point, the two wind farms coming to my constituency are responsible for 2,500 acres of land over which 115 km of cabling will run, and reasonably sophisticated local projections have shown that if the cabling were unified for just those two, it could be reduced by 80 km, but there seems to be no basis upon which that conversation could be had. Therefore, what consideration has been made of such options? If there has been none, what consideration should be made of not only the cost and benefit, but the environmental implications? I know that the Minister, as a passionate activist and campaigning Minister, takes such matters seriously.

In the event that little villages such as Necton end up carrying major substation infrastructure—hopefully on the right site—what benefit should such communities expect? It has always seemed fair that if a village should host a wind turbine, for example, it should benefit in a small way locally. Where a village takes a massive piece of national infrastructure, perhaps the benefit might be proportionate. The people of Necton would be happy if something flowed back into the village by way of some community facility. Given the scale of the infrastructure, that could perhaps come as a transport upgrade to the dangerous junction with the A47. Normally, I would relish sitting down with the applicant to try to broker something sensible, but the way that the regulations appear to have been drafted means that there is a no conversation to be had, which seems wrong.

It is late at night, and I have made my points, so I will invite the Minister to reply. However, I close by saying that the applicant should not be able to plead that because this is national infrastructure—although understandably that may bypass the minutiae and the eddies and currents of the local planning system—then somehow the voice of the local community and elected representatives should be cut out. That is important not just for Necton and Mid Norfolk, but for trust in our planning system and for the sense that this energy revolution will work for everybody’s benefit. At the moment, however, it looks horribly like it will be for the benefit of a few energy companies and very few people in our part of the world, so I welcome the Minister’s interest in this matter both offline and in her comments now.

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

Some might say that it is drawing the short straw to do a late Adjournment on such an important evening, but this debate on an incredibly important topic is far from it. It is also extremely timely, because it was only last week that we launched the offshore wind sector deal. I was lucky enough to fly over part of the developing East Anglia ONE wind farm and then to track the entire cable array back to the substation, and I should add that I offset the emissions.

I warmly congratulate my hon. Friend the Member for Mid Norfolk (George Freeman) on securing the debate and allowing me the chance to think a little more about the subject, and perhaps to give him some reassurance. I also thank the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Suffolk Coastal (Dr Coffey), who is here with me. She is unable to participate, but she has concerns about the proposal in Friston.

It is great to see my hon. Friend the Member for Waveney (Peter Aldous) who, along with his constituents, made me and many others so very welcome last week. It is good to hear the value of the offshore wind sector deal to the community in Lowestoft, in addition to all the exciting opportunities for the fishing industry, about which he has been very clear.

The Norfolk and Suffolk coast is becoming a centre for low-carbon energy generation, which is an exciting prospect that, as my hon. Friend the Member for Mid Norfolk points out, comes with some concerns. One of the reasons for wanting to focus on offshore wind is that it avoids the landscape impairment of giant wind turbines, which can be controversial from a planning point of view and can yield a lot less power. People describe offshore wind as better quality wind, as it blows 55% of the time in the North sea, compared with only 30% of the time onshore.

It is astonishing that we can build 197 wind turbines on one offshore farm, which would be very difficult to achieve onshore. That is why the sector deal states that we intend to triple generation from offshore wind over the next 11 years. We think offshore wind will contribute about 30% of our total energy consumption in 2030, at which point 70% of our energy consumption will be from low-carbon sources. Offshore wind will create thousands of jobs: 6,000 or so in the Lowestoft-Yarmouth area, and 27,000 across the UK. We think offshore wind can also help us capture about £3 billion of export opportunities, which is fantastic.

I emphasise that we have the largest market for offshore wind in the world, which is one of the reasons we have been so successful in decarbonising. Of course, in order to bring the power back, we have to join it to the grid at some point, which gets to the heart of my hon. Friend’s speech. We want to make sure that, as we develop this resource, we continue to bring communities with us—offshore wind should not be imposed on them.

We have to be clear that the two things to which my hon. Friend alluded, community involvement in planning and the integration of connection infrastructure, will be adequately addressed. Most of the proposed applications in Suffolk and Norfolk are at the pre-application stage, but the applications for Hornsea Project Three and Norfolk Vanguard are currently undergoing examination, and I understand my hon. Friend has been eloquent in his written and oral representations to the examiners on those projects.

My hon. Friend will understand that the final decision on applications for nationally significant infrastructure projects, including onshore connections, is made by my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy, so I am unable to comment on the specific merits of those particular applications, but I emphasise that NSIP projects stress the importance of pre-application consultation. Developers have to prepare a consultation strategy, and they have to carry out a pre-application consultation with the local community in line with their plan. When they finally make their application, the report must show that they have addressed any concerns raised in the plan.

Of course, the Planning Inspectorate writes to local authorities to ask whether a plan is adequate. If the application is accepted, local people can, of course, continue to make their views known on the proposals. I understand that, in the case of the Suffolk proposals, the Planning Inspectorate is considering what measures it may be able to put in place to limit the need for local people to make the same points over and again. The inspectorate can basically build up a body of evidence and deliver on that. Within the current framework of the planning system, the message to developers is clear: they must consult local communities and ensure that they give serious consideration to their concerns before any decision can be made by the Secretary of State.

As my hon. Friend the Member for Mid Norfolk pointed out, the system may have been inadequate when we had several connections coming onshore. As we continue to build up this resource, we could be dealing with dozens of applications and, in many ways, he represents the optimum point. We have the best resources for offshore wind in the world in the North sea, particularly in the southern North sea, because it is shallow and the wind blows a lot of the time. So we have historically had a point-to-point connection, and that has been a basis on which planning applications have been considered. A series of spokes have brought power onshore. That power is then taken some considerable distance inland in order to connect with the national grid and because the pathway of the cabling has to respect boundaries—it is a process of negotiation—the cables often do not go straight like motorways, but instead follow crooked pathways.

This point-to-point approach is considered to have represented a saving for consumers, with an estimate being at least a £700 million saving so far having been delivered by this connection. Of course, we are still in the infancy of developing these wind farms, so it is right that as the sector matures we consider the potential to connect adjacent projects offshore, linking them up as a ring main, as my hon. Friend said. The developers recognise that this is an important opportunity, as we could be bringing onshore one connection, perhaps a larger oversized connection, that brings in the power of many other wind farms across different development portfolios. Of course, we can also explore the possibility of interconnection with mainland Europe. Some exciting proposals have been made to have interconnectors that run through the middle of some very large wind developments going forward.

The system operator has a key role to play in determining this, working out the way to implement those projects and considering a charging regime for them. My hon. Friend the Member for Waveney has obviously read the sector deal with great interest, because as he said it contains a specific work strand to explore the way the connections are planned and developed. I want to emphasise how very exciting the sector deal is; for the first time, we have the developers and the supply chain in this extremely important industry working together, thinking about the opportunities and the need for co-working. In this space, there is a real appetite to sort this out and have a plan for the future.

As we develop those plans, my door is of course open to my hon. Friends who represent these important constituencies, and indeed to others who may wish to comment on this. It would be helpful to have scrutiny by the representatives sent to this place. It is clear that our approach needs to evolve if we are to maximise the potential that this fantastic resource delivers to provide us with low-carbon energy at the best value for consumers. I would like to finish by saying two things. The first is a big thank you to the local communities who are going through these processes right now, as they are really helping us to deliver a world-leading energy system. If we get this right, it will have far less of an imprint on the landscape than building the equivalent in terms of onshore scale.

[George Freeman]

I am grateful to the Minister for agreeing to meet me and other MPs. I particularly wanted to mention the right hon. Member for North Norfolk (Norman Lamb), who, although happy with the current proposals, shares our view that we need a different proposal going forward. In the remaining moments, will she tackle the issue of what should be the approach for the benefit of a local community carrying national infrastructure? The people of Necton are feeling as though they are going to carry this and receive nothing. Is there any guidance or Government thinking to say that a community should benefit?

[Claire Perry]

If I may, I will take that point away, because my hon. Friend does raise an important question. Obviously, it is similar to others that have come up in respect of energy developments. Perhaps he and I can agree to meet to discuss that a little further. It is right that we make sure that the local communities who host these connections feel that it is worth their while to do so and that they have a minimal physical and environmental impact from allowing these connections to come through their precious space.

I wanted to say two other things. The first is that I am disappointed that we did not manage to work the pedlar of Swaffham into our remarks tonight, as we did so many years ago—perhaps we will be able to try again next time. Lastly, a very appropriate reason for having this debate is that the green heart hero awards were held in our wonderful House of Commons this evening. I am proud to wear my heart, and it was wonderful to see so many people, ranging from babies a few weeks old to people in their later years, absolutely committed, with full enthusiasm, to the sort of low-carbon future that we want to deliver. This is such a timely opportunity to talk about how we deliver that in a way that intelligently uses the grid and minimises the impact on the communities affected.

Question put and agreed to.

Draft Employment Rights (Miscellaneous Amendments) Regulations 2019 Draft Agency Workers (Amendment) Regulations 2019 Draft Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2019

George Freeman Excerpts

Wednesday 6th March 2019 General Committees

[Kelly Tolhurst]

I respect the comments made by the hon. Member for Sheffield, Brightside and Hillsborough. I like to think that when I work with her in her role as shadow Minister we have quite good communication. I respect her position, and thank her for the tone in which she always presents her comments in Committee.

I am not embarrassed to be standing here today as the Minister; I am very proud to be the Minister responsible for labour markets, and to be introducing these three SIs on the back of announcing our Good Work plan at the end of 2018. In my view, as a 40-year-old woman—[Interruption.] Yes, everybody knows my age now. Most of my days in employment were under a Labour Government. I had a lot of different experiences, and saw what it was like to be a young person trying to follow a career. I then ran my own business, and I am now in a Conservative Government, looking at these matters. I am proud of this Government’s record in bringing forward the Good Work plan and in initiating the work that went into the Taylor review, to get to where we are now. To move to where we are going is a big step change. The initiatives that we have announced in the Good Work plan go further than before. We have expressed our intentions about what we would like to do going forward. These SIs are limited in scope to give us the ability to move quickly and make changes that enable our ambitions to be realised as soon as possible.

[George Freeman (Mid Norfolk) (Con)]

I echo the Minister’s comments. Many of us in this Palace, and all of us here today, care passionately about this issue—I do not think there is any disagreement about that—and bitterly resent the few examples of terrible employment practices that the Government are moving to clamp down on. I thought the shadow Minister’s comments were slightly old-fashioned. Those of us who have had a career in starting technology businesses—fast-growing businesses with modern workforces, where many women want flexible hours—understand that this is not about the trade union rep in a company with six employees. It is about good employers, good regulations and good standards in the modern workplace. We have moved on a bit from the 1920s.

[Kelly Tolhurst]

I thank my hon. Friend for his comments; I concur with them. Ever since I have had this role I have been committed to making sure that our workers are put at the centre of what we are doing around business, and making sure that, quite rightly, we listen to workers, businesses, unions and all kinds of representatives when we are formulating—hopefully—good legislation for the future.

We have, I believe, been seen to have a good record in what we have done in recent times. We have got a record-breaking number of people in work, and 80% of jobs created since 2010 were full-time jobs. We are continuing with our commitment to increase the minimum wage, with the new increased rate starting in April, when it moves to £8.21. We are committed to, and on track to meet the 60% of median earnings target.

I will turn to the questions that I was quite rightly asked by the hon. Member for Sheffield, Brightside and Hillsborough. She is quite right about employment status. That is something that came from the Taylor review and has been outlined in the Good Work plan. We are committed to aligning employment status with tax. There is evidence to suggest that that is what we need to do. We need to get it right, to consult properly and to make sure that anything brought in is done in the right way. The engagement that I have had with businesses and workers shows that they welcome this move. It has to be done correctly and in the right way. It has been expressed in our Good Work plan and it will be consulted on further.

On the unions and the Information and Consultation of Employees Regulations 2004, I make it clear to the Committee that the new regulations strengthen workers’ ability to request consultation in the workplace.

Draft Energy Efficiency (Private Rented Property) (England and Wales) (Amendment) Regulations 2018

George Freeman Excerpts

Monday 14th January 2019 General Committees

[Claire Perry]

My right hon. Friend makes a very important point that gets to the nub of the issue: how will we ensure that these regulations are enforced? Enforcement is a power given to local authorities, which have a range of powers to support effective enforcement. To understand what that requires and what the best levers are to drive enforcement, my Department is funding seven 12-month longitudinal enforcement studies this year, which will work out what is the best enforcement toolkit.

There is now more data across Government on home standards and on which households live in fuel poverty, so there is more data available to target the enforcement work. We will have evidence from right across the UK, although not, I believe, from any constituencies in Wales—I apologise for that. We will have at least a sense of what we need to do to enforce the regulations.

The other point worth touching on is that someone might be renting a property where they could save themselves between £200 and £1,000 a year, but that information is currently not readily available to renters. Generally, agents list properties simply on the basis of aggregate rent per week or month. They might also show broadband speeds or local school quality. I would very much like—we are doing some work on this—estate agents and rental agents to put the whole question of cost to rent and cost to operate into the metrics that they show to tenants. If something looks affordable on paper, is it affordable to occupy? That is a piece of ongoing work. I hope that my right hon. Friend is satisfied with that response.

[George Freeman (Mid Norfolk) (Con)]

The Minister, like me, is a great champion of British innovation and UK leadership in innovative technologies. A company in my constituency called Finn Geotherm has led the way in developing packages for social housing that deliver huge benefits for both tenants and providers. Will she reassure me and the Committee that work is being done to ensure that innovative little British companies get a chance to use this great measure to drive forward their leadership in the field?

Oral Answers to Questions

George Freeman Excerpts

Tuesday 12th December 2017 Commons Chamber

[Greg Clark]

I am delighted to hear the hon. Lady’s endorsement of that, and she is absolutely right that there is an opportunity for sector deals for many sectors, including those she mentioned. We are already in discussions with many of those sectors, including the food and drink sector and the hospitality sector; we expect to see early sector deals concluded in them. I am delighted that the hon. Lady supports that.

[George Freeman (Mid Norfolk) (Con)]

I congratulate the Secretary of State on launching the industrial strategy—in particular the life sciences sector deal, which has already triggered £1 billion of new investment. Does he agree that the key now is to negotiate a Brexit deal that avoids a cliff edge but gives us the regulatory freedom to continue to lead in the all-important genomics and data of tomorrow’s medicine?

[Greg Clark]

I do agree with that, and I commend my hon. Friend as the former life sciences Minister who saw before many people the opportunities of the strategic approach. I think he has been honoured this very week by the learned societies for his contribution to promoting science in Parliament, and I congratulate him on that. He is absolutely right that we need to build on these successes. The life sciences sector deal is a demonstration that a long-term strategy can have immediate benefits; we have had more than £1 billion of investment on the basis of the confidence that the sector has in the strategy we have set out.

Budget Resolutions

George Freeman Excerpts

1st reading: House of Commons
Tuesday 28th November 2017 Commons Chamber

[George Freeman (Mid Norfolk) (Con)]

It is a privilege to rise on behalf of my constituents to welcome this Budget and the industrial strategy announced by the Business Secretary yesterday. In the past week, the Chancellor and the Business Secretary have sent a strong signal that this economy and this country are in the hands of safe grown-ups in the Treasury—[Laughter.] I would not laugh yet. This country knows that what we need is a sensible, one nation Conservative Administration, not a Marxist shadow Chancellor committed to the overthrow of capitalism. [Interruption.] The hon. Member for Stalybridge and Hyde (Jonathan Reynolds) thinks that is funny; I do not. We do not need Labour’s £500 billion spending spree, which would put more debt on to the backs of our young, and we do not need dangerous talk of requisitioning private property and exploiting the crisis we face to fulfil Labour’s Marxist fantasies.

I wish to highlight three particularly encouraging aspects of the Budget. First, on public sector pay, I welcome the fact that the Government have shown they are listening carefully to the concerns of those in the public sector who feel that, after seven years of the pay cap, we need a different model to inspire our best. I welcome the easing of the pay cap, so that those on the frontline of our public services—the heroes who run into burning buildings and take bullets for us—can get the pay rise that they deserve that is appropriate and affordable. I also welcome the signal that those in the public services who are responsible for management and delivering productivity are rewarded for, and on the basis of, that productivity.

I particularly welcome the announcement of a public sector leadership academy, which my right hon. Friend the Chief Secretary to the Treasury and others have been instrumental in pushing forward. In the next few years, we need to go further and signal an ambition for our public services to work in partnership with the private sector to drive a recovery. We want an innovation economy in which the public sector embraces innovation, and is a partner for innovation, to modernise our public services. I call that public sector enterprise. Let us be bold and unleash the power of the NHS to work with our life sciences sector to pull innovation through for modern healthcare. Let us be bold in procurement, so that the public sector drives innovation in our economy, and let us incentivise our best public sector leaders to be part of that.

Secondly, I warmly welcome the industrial strategy. I am proud to have done my bit over the past few years, working with the former Chancellor and Member for Tatton; Lord Willetts, who was in the Gallery earlier; Lord Heseltine; and my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy. Do not take it from me that a Conservative generation has led the way on industrial strategy; take it from Lord Mandelson, who said at Davos a few years ago that it was a new generation of Conservatives who were setting the pace on 21st-century industrial policy. Do not take it from me; take it from the life science sector, which yesterday announced £1 billion of inward investment to create new jobs in the economy. That is the vote that I care about—the vote of business and of the wealth and job creators, not the vote of the wealth and job destroyers on the Opposition Benches.

Thirdly, on skills and infrastructure, I strongly welcome the east-west rail announcement. For too long we have seen investment in our commuter lines, but not enough in the east-west lines. I relish the prospect of an innovation express from Norwich to Cambridge to Oxford to Reading to Southampton—an arc that links our east and west clusters. I also relish the announcement of a new Victorian-model rail company that undertakes development to fund rail infrastructure, allowing garden towns and villages to be built by a modern railway company—the first to be created in such a way for more than 150 years.

On skills, we need a response to the industrial strategy from each locality. That is why I have been working with Cambridge, Norwich and Ipswich to put together the “accelerate east” skills gateway. I would like us to offer every school and college leaver a skills passport into the 21st-century economy.

This was a Budget for business and for Britain, but the big B is Brexit. We need to make sure that in the next 18 months we negotiate and deliver a Brexit deal that supports our modern economy.