Shop Direct (Greater Manchester)
Sam Gyimah Excerpts(6 years ago)
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The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
I congratulate the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) on securing this important debate, which follows the announcement on 11 April by Shop Direct Ltd that it would be closing three of its sites in the north-west of England, in Shaw, Little Hulton and Raven Mill, and consolidating its distribution operations in the east midlands gateway. I would also like to thank her for writing to the Prime Minister on this issue. My right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy has responded and met the hon. Lady earlier today to discuss this issue.
I appreciate that this is a worrying time for employees of Shop Direct Ltd and their families. I have listened to the contributions made here today and recognise that colleagues on both sides of the House are understandably concerned about the impact of the closures. Shop Direct Ltd is in formal consultation with the Union of Shop, Distributive and Allied Workers and, subject to this consultation, expects to offer an enhanced redundancy package, along with tailored support to all affected colleagues. As the exit process is not expected to start until mid-2020, there is an opportunity for Shop Direct Ltd to provide that individualised support. This will include training, career skills, access to financial planning and vocational courses to support retraining. I also understand that a local taskforce has been established, led by the Manchester Growth Company, and will include representatives of affected areas.
I am sure the hon. Lady can appreciate that I am unable to comment on commercial decisions made by the company and that it would not be appropriate for me to do so throughout the consultation period.
Jim McMahon
I accept that the Minister cannot comment on the commercial decisions taken by Shop Direct, but can he confirm whether it has been given any inducements to move to the east midlands, such as business rate benefits or relocation grants?
Mr Gyimah
That is a very important question. I am not aware of any inducements given to Shop Direct to move to the east midlands. I am sure the hon. Gentleman raised this issue in his discussions with the Secretary of State.
For companies to remain viable, and to keep in step with the modern competitive market, difficult decisions sometimes need to be taken. However, I recognise that this does not make the situation that some employees face any less troubling. I can reassure the House that the Government have measures in place for such situations. I will now turn to the protections in place for employees facing redundancy and the support available at such a difficult time.
The law is clear that organisations are required to consult with employee representatives about proposed collective redundancies where at least 20 employees are at risk at one establishment within the same 90-day period. Employers are required to provide specified information to representatives, or directly to affected employees if representatives have not been appointed. The consultation should include ways to avoid redundancy or dismissals, or to reduce the number of dismissals involved to mitigate the effects. Any employees who feel their rights have been denied may complain to an employment tribunal, which may make a protective award to the affected employees of up to 90 days’ pay.
Our priority is helping those who are affected to find new employment through the Jobcentre Plus rapid response service or to retrain if necessary. Rapid response service support is delivered in partnership with a range of national and local partners, including Her Majesty’s Revenue and Customs and local service providers. DWP and Jobcentre Plus will also work with the company to understand the level of employee support required. Just to reassure the House, typical support includes matching people to known local job vacancies, helping them to construct or improve their CVs and providing general information about benefits and how to make a claim.
Barbara Keeley
During the speech by my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams), I said that the company seems to expect that employees will stay for two years and across two Christmases, and not get their redundancy till the end, when they could all land on the unemployment market at the same time. Surely, it makes sense for redundancy packages to be spread across the two-year period, so that if job vacancies arise, my constituents and my hon. Friend’s constituents will be able to take advantage of them. Otherwise, in a ward such as Little Hulton, where unemployment is twice the national average, it will be pretty hard in the end.
Mr Gyimah
The hon. Lady makes a good point about having some flexibility on when people get their redundancy, especially if they find new opportunities. That has been noted and the relevant Minister will get back to her about how we can raise that with the company. It is a relevant point. The support that I mentioned is available to all those who are affected by potential job losses and goes beyond direct employees of the business to those such as self-employed subcontractors and individuals working for suppliers affected by the outcome of such structural changes.
The hon. Member for Oldham East and Saddleworth asked generally about what is happening in the retail sector. We can all agree that the retail sector has a vital role to play in the local community and the national economy. The Government work with retailers to understand their needs and we have acted to support the sector. In March, we announced the Retail Sector Council as part of our industrial strategy. Its first meeting has taken place and through the council, the Government and industry are working together to contribute to the sector’s future direction to boost productivity and economic health. Council members will review the best way that retailers can adapt to changing consumer behaviour and trends. They will also look at new technology opportunities such as those that will improve customer service and the chance to grow skills through a sector push on high-value training.
The Government recognise the importance of our high street, and since 2010, we have given over £18 million to towns, funding successful initiatives such as the Great British High Street. In the autumn Budget 2017, we announced measures worth more than £2.3 billion over five years to cut business rates. This includes bringing forward the planned switch in the indexation of business rates from the retail prices index to the consumer prices index by two years to 2018. That will benefit retailers, as well as other businesses.
Jim McMahon
While we are on the business rates point, is the Minister aware that the two sites in Oldham together have rateable values of £1.3 million? Of course, Oldham is one of the business rates pilot authorities. If we do not find an alternative employer to take those premises, that will have a direct impact on the council’s budget. In context, that would be the whole of the council’s youth service budget gone.
Mr Gyimah
These are all very important points, but as I said, businesses make commercial decisions driven by their own commercial interest. The Government’s responsibility is to support the employees, find new work and to support the local community as it transitions through this period.
Let me come to some of the other points made by the hon. Member for Oldham East and Saddleworth. The broader question of automation was raised. Of course, we recognise the workplace challenges as well as the potential opportunities. Matthew Taylor stated in his review of modern working practices that history has shown that technological advancements and the automation of individual tasks can lead to job creation. In our response to his review, we set out our Good Work plan to ensure that the labour market is resilient enough to respond to the changes that automation may bring.
Debbie Abrahams
My specific point about Shop Direct is that we need BEIS support—Government support—to ensure that, if it does ultimately leave the sites in Greater Manchester, alternative employment will be brought in. Just saying that it is the responsibility of the employees to reskill and retrain is not good enough.
Mr Gyimah
I certainly have not said that it is the responsibility of the employees to reskill and retrain; I have said that the Jobcentre Plus rapid response service will be working directly with them, and BEIS will work with the taskforce at the local level as far as the transition is concerned. A number of important conversations will have to take place on this over the next few years, but I can give the hon. Lady a categorical assurance that Ministers, as well as BEIS employees, will work closely with her and her colleagues to make this transition as smooth as possible for the employees and the local community.
Question put and agreed to.
Intellectual Property Office: Performance Targets
Sam Gyimah Excerpts(6 years ago)
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The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
As an executive agency and trading fund of the Department for Business, Energy and Industrial Strategy, the Intellectual Property Office sets targets which are agreed by Ministers and laid before Parliament. For 2018-19 its targets are:
At least 85% of our customers will rate us 8-10 or higher in overall satisfaction.
We will have prepared the systems supporting our trade-marks and designs services for the UK’s exit from the EU and the implementation of the EU trade mark directive.
We will offer faster handling of patent applications, by providing an examination report with a search report when both are requested at the application date, and meeting at least 90% of requests for an accelerated two-month turnaround for search, publication and examination.
We will ensure that all of the Intellectual Property Office’s Statutory Instruments relating to EU exit are drafted and ready for laying as required by the legislative authorities.
Sixty per cent of the businesses we reach and survey confirm that they have made an informed decision on their IP.
We will deliver our part of the creative industries sector deal and alongside industry develop appropriate voluntary measures targeting: online market places, social media and digital advertising.
We will develop and launch ‘The Deal’, clarifying the mutual expectations between IPO and its employees.
We will externally validate and benchmark our provision for the mental health of our people.
We will demonstrate an efficiency gain of at least 3.5%.
[HCWS629]
Higher Education
Sam Gyimah Excerpts(6 years ago)
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Mr David Lammy (Tottenham) (Lab)
The Minister will be aware that, as a former Minister, I am concerned about the loss of the Office for Fair Access and about whether access will continue to be an important theme under the new Office for Students. We have a lot to do, particularly on fair access to the Russell Group. The Minister will be aware of the work that I have tried to do, particularly in relation to Oxbridge. I look forward to going to Cambridge later this week to discuss in more detail what it is doing to get young people from the regions, particularly from the north of England, and particularly from poorer backgrounds and ethnic minority backgrounds. I have some faith, of course, in the leadership of Michael Barber and Nicola Dandridge, but it is right to say, as my hon. Friend the shadow Education Secretary indicated, that the Office for Students got off to a very bumpy start indeed with the Toby Young affair.
When the Minister gets to his feet, I hope that he might say something about further education in particular. A lot of Members across the House would say that, if someone has three or four children in this country and only one is academic, Britain is still one of the best places in the world in which to be born. But I do not think that any of us believe that this country has cracked it when it comes to vocational skills; we are a long way off. It is a mistake not to have FE represented in such an important body, which is regulator, funder and has important levers in relation to the provider. I do hope that the Minister will look again at the important role of FE, as has been suggested by the Labour Front-Bench team and the Chair of the Education Committee.
In an age where student satisfaction is everything—that journey began many years ago, when we decided to move towards a regime of fees—it seems paradoxical that the student voice is not as present in this new body as it probably should be. [Interruption.] The Minister nods from a sedentary position that it is. I look forward to him explaining how that is the case. If it is the case, why does he think that students should be afforded less of a status, frankly, than others who sit on the board?
The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
That point has been raised a number of times during this debate. For the first time, there will be a regulator that will have a student panel and a student representative on the board. I was there for the inaugural meeting and those representatives are doing great work. The suggestion that the student voice is somehow not represented is simply inaccurate.
The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
When I walked into the Chamber and listened to the shadow Secretary of State, the hon. Member for Ashton-under-Lyne (Angela Rayner), I thought for a moment that I had walked into the wrong debate. Although the Opposition prayed against the Government’s legislation, meaning that we had to have this debate on the Floor of the House, it took quite a long time for me to realise that she was actually speaking to her motion, because nothing that she said was relevant or bore any resemblance to its content. The motion is actually a very serious one that calls for the set of regulations before the House to be annulled, although she said that that was not the case at all.
This legislation should be a piece of good news for the House. For the first time in the age of the student—when students should no longer be grateful for the experience that universities dish out to them, but should have a champion for them—this Government have set up a new regulator to perform that role. But of course the Opposition chose not to recognise that, saying instead that we should annul the legislation.
The first point—I will speak specifically to the SI—is that annulling this legislation is unviable. It is unviable to continue with the existing legislation. That is because the Higher Education and Research Act—HERA—replaces the previous legislative framework for higher education that was established in 1992, when the sector was smaller and competition was limited. The majority of funding came from direct grants, to which HEFCE attached conditions. The situation now is fundamentally different. Of 131 higher education institutions funded by HEFCE until April this year, 90 receive less than 15% of their income directly from Government. Attaching conditions to grant funding is simply no longer a viable mechanism to deliver regulatory oversight and to protect students’ interests in the long term.
The Office for Students is an independent regulator that puts the interests of students and value for money at its heart. It stands for a new, outcome-driven approach to regulation that seeks to open up university opportunities to all, to enhance the student experience, to improve the accountability and transparency of providers, to promote the quality and flexibility of higher education choices, and, crucially, to protect students’ interests. The old system, to which the Opposition would like to return, is a recipe for state control of universities, and it would see a return to top-down planning of higher education and student number controls. This would be a fundamental undoing.
Paul Blomfield (Sheffield Central) (Lab)
As the Minister will know, I wrote to him on the point raised by the hon. Member for Faversham and Mid Kent (Helen Whately) about the remit of the OfS. Does he recognise that if it is to be a champion for students, its remit needs to be more widely drawn? Does he recognise the point made by the all-party parliamentary group on students that adding a responsibility for wellbeing, with special regard to students’ mental health, would balance out the current remit and demonstrate that the OfS was more interested in putting students first? I regret, as he might perhaps recognise, that he did not respond directly to that point but simply passed it on to the OfS for comment. Will he take this opportunity to agree with the hon. Lady, with me and with many Members on both sides of the House that the remit needs to be broadened in this respect?
Mr Gyimah
The remit of the OfS is already very broad. I passed the letter on to it for comment, as an independent regulator, and it is right for it to respond to the hon. Gentleman. I agree, however, that there is an issue around student wellbeing that needs tackling, whether via the OfS or via another route. It is something that we should be alive to. The Chairman of the Education Committee and the right hon. Member for Tottenham (Mr Lammy) mentioned the role of further education, in particular. I assure them that the Secretary of State’s first set of strategic guidance to the OfS set a very clear expectation that apprenticeships must be taken into account whenever the OfS exercises its functions, and that apprentices must be represented within its widening access and participation activity. I note the points that have been made about the composition of the board.
However, the key point is that there is no going back. HERA has established the new Office for Students, which regulates in a very different way by imposing terms and conditions on providers that want to be on its register, and only registered providers can benefit from their students having access to student support. The OfS is already operational, and there is no going back. HEFCE has already been abolished, as has the Office for Fair Access. Both ceased to exist on 1 April, and annulling these regulations does not change that. That ship has already sailed, and neither of these bodies can be resurrected without primary legislation. The OfS now has important responsibilities for access and participation and is already pushing higher education providers to make greater progress through their access and participation plans for 2019-20.
Helen Goodman
The Minister and I have corresponded about the impact of the recent strike on students and the fact that universities do not really have a financial incentive to settle the strikes because they get the tuition fees in and save money on the lecturers’ pay. A further question I have about the OfS’s remit is whether it will have the power to order the institutions to pay the students compensation.
Mr Gyimah
The hon. Lady makes a perfect case for the OfS. The reason why the OfS could not have intervened in the recent strikes is that it did not exist statutorily at that point, but were the OfS to be in place, that is exactly the sort of issue it could take on and champion on behalf of students. That is why we have brought this legislation forward.
Let me absolutely clear about the effect on students and providers alike if this motion is carried. First, students’ fees will be uncapped. While the amount of fees that students can be charged is set out in separate legislation, these transitional regulations ensure that until the new regime goes fully live on 1 August 2019, a cap remains on student fees. Without these regulations, students’ fees would be completely uncapped. That would happen immediately, and it would be the Opposition’s fault.
Overnight, there would be no legal barrier to prevent students from being charged the same fees that providers charge to international students. What would that mean for students? In 2017, international students paid between £10,000 and £35,000 annually for lecture-based undergraduate degrees, and for undergraduate medical degrees some providers charge up to £38,000 per year. Simply put, a vote to annul these regulations is a vote to allow tuition fees to be increased without any upper limit.
Without fee caps, we lose access plans, because it is the incentive of being able to charge students up to the current higher fee cap that drives providers towards agreeing access plans. Without fee caps, that incentive is removed. Many Members in the debate have commented on the importance of access, especially to our elite universities, but a vote to annul these regulations is a vote to remove the key tools currently used to boost access and participation. We need an orderly transition to the new regulator.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. People have been asking questions of the Minister all evening and now they are not listening to his answers.
Mr Gyimah
Madam Deputy Speaker, you make a fine Chair.
Establishing a single regulator, which brings together the regulatory functions of HEFCE in relation to teaching in higher education with the statutory remit of the Director of Fair Access, delivers a significant change in ownership of responsibility for widening access and participation. It brings together the powers, duties, expertise and resources under the collective responsibility of the OfS and allows for a smooth and orderly transition.
In conclusion, during the passage of the Higher Education and Research Act, Members across the House debated long and hard the future of higher education. Irrespective of different views about how we finance higher education or how it should be regulated, there will always be an imperative to ensure that students are getting a high-quality experience and positive outcomes from the time and effort they put into their education. This Government firmly believe that giving students real and well-informed choices is the most effective way to achieve that, and that the regulatory system should be designed to support healthy competition on a level playing field.
In attempting to annul these regulations, the Opposition are proving that they have no desire to give students more information, protection, choice or value for their money, and that they will bring nothing other than chaos and confusion for students and providers alike. While I am dismayed that the Opposition prayed against these regulations and did not even utter one sentence about them, I urge the House to vote for this important champion of students.
Question put.
Unconditional University Offers
Sam Gyimah Excerpts(6 years, 1 month ago)
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Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
It is a pleasure to serve under your chairmanship, Mrs Moon. I congratulate my hon. Friend the Member for Boston and Skegness (Matt Warman) on securing this important debate and on the balanced and self-deprecating way in which he made his speech. I welcome the opportunity to discuss the issues he raised.
I, too, am deeply concerned by the recent large increases in the number of unconditional offers received by students and the potential impact that those offers can have, as my hon. Friend the Member for Chippenham (Michelle Donelan) so clearly outlined. For example, some students may coast in their studies at school or college or perhaps not even complete their course. Another possibility is that students might accept the obvious attractions of an unconditional offer at one institution, rather than a conditional offer at an institution that would better suit their ability level. I want to be clear that higher education providers should not make unconditional offers to students who lack the talent and potential to complete a higher education qualification, especially when those students may benefit from exploring different education options or becoming employed on finishing their A-level qualifications.
It is right that higher education institutions should be able to make unconditional offers when it is appropriate, but I agree with Members that that should be done with extreme care. I therefore welcome this opportunity to highlight the sharp rise in the number of unconditional offers made in recent years and why it is right for the House to be concerned. Data from UCAS for last year shows that the number of unconditional offers to 18-year-olds increased to more than 50,000 from fewer than 3,000 in 2013—a seventeenfold increase. Last year, 17.5% of 18-year-old applicants received at least one unconditional offer. While the overall proportion of such offers remains relatively low, at some providers unconditional offers account for more than 20% of all offers made. The House is right to be concerned.
Universities rightly have autonomy over their admissions. The principle of institutional autonomy has been recognised as central to our higher education system for many years. In fact, the Higher Education and Research Act 2017 goes considerably further than previous legislation in recognising that principle. Institutions select their students, and it is their responsibility to ensure that they only take students who are appropriately qualified and able to succeed on the course they are applying for. I expect institutions to assess carefully the impact of unconditional offers on students, ensuring that they really do get the right students for the right courses. They should not allow students without the potential to succeed to continue into a route that will not benefit them.
There is considerable advice from UCAS for prospective students on how to consider unconditional offers. UCAS advises applicants to wait until they have received initial decisions from all their university and college choices and then to consider them carefully before accepting an unconditional offer as their firm choice. It also emphasises to students who accept unconditional offers the importance of completing their qualifications to the best of their ability, recognising that employers are likely to be interested in their exam results as well as their degree classification.
Our reforms in the 2017 Act will help ensure that institutions are accountable for ensuring that the students they recruit can succeed. We have put in place a new regulatory framework, and the teaching excellence and student outcomes framework will include metrics on non-continuation. The TEF will take into account student feedback, drop-out rates and graduate outcomes to help prospective students make the right choices and ensure that they get the value for money they deserve from higher education. That will act as a strong incentive for institutions to ensure that they recruit sensibly and support all their students to succeed.
In addition, and in response to the concerns that many have expressed about the impact of unconditional offers, the Government have already asked the Office for Students to monitor and review the number of unconditional offers made by registered higher education providers. It is important that the sector and the public have the evidence available to make clear judgements about any impact such offers may have on student access and outcomes in higher education. The Office for Students intends to work with UCAS to analyse the data on unconditional offers made during the last three years. They will look at such factors as provider, location, subject and student characteristics, including the grades with which they ultimately entered higher education relative to their predicted grades. That will enable initial conclusions to be drawn on the scale and focus of unconditional offer making and its impact on attainment prior to entry into higher education. The OfS will produce a report on the first aspect of the work this year.
The OfS will also analyse the relationship between unconditional offer making and subsequent outcomes in non-continuation, attainment, progression to postgraduate study and employment. Where the OfS identifies a problem, I expect it to take action in accordance with its powers set out in legislation. The exact course of action will be for the OfS to determine. I am clear that I do not intend to see the life chances of young people adversely affected by a desire to fill places at some institutions.
This is the right debate to have, and we are having it at the right time. The OfS will comes into being on 1 April, so it will be well placed to take the necessary action in the interests of students, as my hon. Friend the Member for Boston and Skegness said. We want the university system to act in favour of students.
Question put and agreed to.
Education
Sam Gyimah Excerpts(6 years, 1 month ago)
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Mr Gyimah
I would like to give the hon. Gentleman that reassurance now. He is absolutely right: the widening participation funds—£1,000 out of every £9,000 paid by students in fees—go towards access.
[Official Report, 28 February 2018, Vol. 636, c. 351WH.]
Letter of correction from Mr Gyimah:
An error has been identified in my response to the hon. Member for Sheffield Central (Paul Blomfield) during the Westminster Hall debate on funding higher education.
The correct response should have been:
Draft Criminal Justice and Police Act 2001 (Powers of Seizure) Order 2018
Sam Gyimah Excerpts(6 years, 2 months ago)
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The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
I beg to move,
That the Committee has considered the draft Criminal Justice and Police Act 2001 (Powers of Seizure) Order 2018.
It is a pleasure to serve under your chairmanship, Ms Ryan. The UK wholesale energy markets are of great significance to the UK economy. The large sums involved and the importance of the wholesale energy market for financial services, industry and consumers make integrity of the market a matter of national and international importance. Insider trading and price manipulation in wholesale energy markets harms hard-working consumers and businesses. It drives up prices and distorts markets, which should be fair and transparent. The Government believe it is therefore vital that the energy regulator in Great Britain, Ofgem, has strong powers to investigate and punish those behaving in this way. Strong powers also have a deterrent effect, making those considering cheating the system think twice.
Insider trading and market manipulation in wholesale energy markets is prohibited by the EU regulation on energy market integrity and transparency, or REMIT, which has been in force since December 2011. In June 2013, the Government made civil enforcement regulations for REMIT, the Electricity and Gas (Market Integrity and Transparency) (Enforcement etc.) Regulations 2013. The 2013 regulations give Ofgem powers to impose unlimited financial penalties, access information and enter premises of a regulated person under warrant. In March 2015, the Government strengthened that regime by making further regulations to create criminal offences of intentionally or recklessly breaching the prohibitions on insider trading and market manipulation.
The 2013 regulations gave the regulator power to search for and seize information and documents which appear to be relevant under warrant. There are, however, cases where Ofgem may have difficulty exercising this power of seizure. For example, investigating officers may be presented with a large volume of documents. Identifying documents relating to suspicious transactions among many documents of a similar nature can be difficult and time-consuming. Ofgem currently has no power to take away an entire body of documents in order to sift them for relevance off premises and evidence relevant to Ofgem’s investigation could therefore be missed.
Section 50 of the Criminal Justice and Police Act 2001 enables a person exercising such a power of seizure to remove material from the premises being searched. This information can then be adequately sifted to determine whether it is something which the person is entitled to seize, if it would not be reasonably practical to determine that on the premises. The power in section 50 applies where a person is exercising the power of seizure listed in schedule 1 to the Criminal Justice and Police Act. Over 60 such powers are already listed in the schedule. The effect of this order is to extend this power to Ofgem when it is searching premises to investigate breaches of REMIT. The Government believe that this will be a proportionate and reasonable extension of Ofgem’s powers, which will help to ensure it can take effective enforcement action.
The Government sought views in December 2015 through consultation on whether Ofgem powers should be strengthened to bring them in line with this provision. This measure was consulted on as part of a wider package of reforms to Ofgem regulatory powers. It received relatively few comments, as would be expected for a specialised issue. It is perhaps not surprising that most industry stakeholders who responded to the consultation argued that the powers were disproportionate. One industry stakeholder supported the powers being given to Ofgem with sufficient oversight. Other stakeholders were neutral.
We have considered stakeholder views carefully. We must weigh up the importance of giving Ofgem sufficient powers to tackle anti-competitive behaviour versus the need to respect stakeholder views. With that in mind, the Government concluded that sufficient safeguards will be in place to meet stakeholder concerns and that it will be proportionate to proceed with this instrument. The first such safeguard is that the power will apply only where a court has granted Ofgem a warrant to search premises. Secondly, when Ofgem exercises this power, it will be under a statutory duty to sift information as soon as reasonably practicable after seizing it, and return anything that it was not entitled by the warrant to seize. Thirdly, a person who is the owner of a document can apply to the court for the return of such material. Finally, magistrates may of course refuse warrant applications, preventing a potential investigation where it is not seen to be justified. Ofgem will have to provide extensive evidence to support an application, and therefore we expect it to do so only when it is absolutely necessary to support an investigation.
Further, ensuring that the relevant evidence is identified more quickly should lead to less disruption to those businesses being investigated, with more efficient investigations overall. Co-operation with Ofgem will also ensure that investigations run quickly and smoothly. The Government would certainly encourage those under investigation to help Ofgem in whatever way they can.
In conclusion, this additional power will aid Ofgem in its investigation of market abuse, but with safeguards that should ensure that it is used proportionately. I commend this order to the House.
Mr Gyimah
I thank hon. Members for their valuable and relevant comments on the order. The first point made by the Opposition spokesperson was about whether this power would encourage fishing expeditions on the part of Ofgem. To assuage his concerns and those of the Committee, the terms of the warrant to conduct seize and sift will be clear and well defined. Ofgem will only seize and retain information that is relevant to the investigation at hand and specified in the warrant.
There was also concern about the timing and the sense of urgency regarding the consultation and the path to where we are now. The Government have been considering priorities against a very restricted legislative timetable, as the hon. Member for Southampton, Test, will be aware. A decision was taken in July 2017 to take forward the proposals on REMIT separately from the other proposals in the consultation. The timeline was driven by the non-REMIT part of the consultation, which included proposals for new primary legislation, on which decisions were due to be taken in early 2016. The opportunity for that decision to be taken was then delayed. I hope that that gives some background on the timing.
Dr Whitehead
The other piece of secondary legislation to which the Minister has referred comes under another area of law and, as far as we understand, that has been laid before Parliament as a negative statutory instrument and will come into force on 9 April, I think. That appears to suggest that the two bits of legislation that were set out in the consultation ran in parallel and not separately, as he appears to be suggesting.
Mr Gyimah
The basic point is getting the time. The hon. Gentleman is aware of the restrictions on the legislative timetable. As he rightly recognises, this is a timely addition to the powers of Ofgem that provides safeguards as far as seizure is concerned. As a relatively new Minister in the Department, I welcome the fact that we are able to get on with it. I refer to what the hon. Gentleman said: it is important that action is taken, and is taken swiftly. That is why we are here.
I turn to the comments made by my hon. Friend the Member for Bosworth. I am happy to write to him to give some detail on the definition and how many documents constitute too many documents. To give the Committee an idea, there may be many documents of a similar nature—for example, buy and sell orders—that may appear relevant to an investigation. Rather than going through someone’s social media accounts, if we think about the number of trades that are conducted in any given day or any given period, it might not be possible to sift all of them on site. I am happy to write to Committee members to illuminate in more detail the definition and limits of what counts as far as documentation is concerned.
David Tredinnick
On electronic media, will the Minister look at whether iPhones and other types of equipment are covered?
David Tredinnick
I have to say to my hon. Friend that it should. He needs to look at this, because we now have such a wide range of communication systems at our disposal that it is pointless coming forward with an order that does not cover all the possibilities. I think that should be addressed.
Mr Gyimah
As I have said, I will write to my hon. Friend to set out in full detail all the electronic media that are covered. That will be the best way to proceed so that he has a comprehensive answer to his questions.
The order provides Ofgem with the necessary tools to aid its enforcement efforts in this area. That is self-evident. The proposed seize-and-sift power will enable Ofgem to scrutinise information thoroughly and to identify what is relevant. It will do so under the scrutiny of the magistrate’s warrant, which is an important safeguard. It will contribute to Ofgem’s ability to effectively investigate and prosecute market manipulation and insider trading offences. I commend the order to the Committee.
Question put and agreed to.
Draft Land Registry Trading Fund (Extension and Amendment) Order 2018
Sam Gyimah Excerpts(6 years, 2 months ago)
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The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
I beg to move,
That the Committee has considered the draft Land Registry Trading Fund (Extension and Amendment) Order 2018.
It is a pleasure to serve under your chairmanship, Sir David. Her Majesty’s Land Registry is a trading fund that was established under the Land Registry Trading Fund Order 1993. It plays a critical role in supporting the Government’s housing and infrastructure objectives. As the Committee might know, the trading funds are a means of financing the revenue-generating operations of a Department. They set their charges in accordance with “Managing public money”.
In 2003 the Land Registry Trading Fund Order was extended for the first time to include the consultancy and advisory services included in the Land Registration Act 2002. The Land Registry’s operations were further extended by the Infrastructure Act 2015 to provide for the transfer to it of responsibility for the local land charges register, and to extend its powers in relation to the consultancy or advisory services about land to include other property and services relating to documents or registers. The draft order will ensure that the revenues generated through the extended activities form part of the Land Registry’s trading fund revenues.
I will turn now to the detail of the draft order. As a trading fund, the Land Registry is required to ensure that its income from fees covers its expenditure under normal operating conditions. All Land Registry revenues are part of its funded activities, except for revenues generated through the activities conferred by the Infrastructure Act. Therefore, an extension and amendment to the existing trading fund order is required. The draft order has been agreed with the Treasury.
In conclusion, the Infrastructure Act gave the Land Registry powers to expand its operations. Consequential amendments to the Land Registry Trading Fund Order are therefore required to take account of the additional revenues. Without the draft order, revenue from local land charges and wider activities would not form part of the Land Registry’s activities as a trading fund. I commend the draft order to the Committee.
Mr Gyimah
I thank the hon. Gentleman for those questions. Having heard him speak in the House a number of times, I know of his usual scepticism about the private sector. My view, however, is that there are great organisations in both the public sector and the private sector; we need both to run our economy.
On the hon. Gentleman’s specific question about whether the draft order is part of a plan for privatisation, the 2016 autumn statement confirmed that:
“Following consultation the government has decided that HM Land Registry should focus on becoming a more digital data-driven registration business, and to do this will remain in the public sector.”
The Law Society welcomed that announcement. Its then chief executive, Catherine Dixon, said:
“This decision responds to the representations we, and other Land Registry users, made as to the risks of privatisation, and puts the public interests in this important institution first. We look forward to working with the Land Registry to assist it in delivering its ambitious modernisation plans.”
There is therefore no plan for privatisation, but it still makes sense to improve and modernise this fantastic organisation, which is why we need the draft order. As I mentioned in my earlier remarks, the Infrastructure Act gave the Land Registry powers to expand its operations, so consequential amendments to the trading fund are needed to take account of the additional revenues.
The hon. Gentleman asked a number of questions about the local land charges services and about implementation. The 1 March 2018 formal response to the consultation on local land charges rules marked a significant milestone and provides an exciting opportunity to modernise the service. In the first phase, the Land Registry is working with 26 local authorities in England to migrate their local land charges records to the national local land charges digital register service. It is also anticipated that the Land Registry will be able to launch a live service later this year for those 26 local authorities. With regard to how that will be implemented, the Land Registry is building the foundations for a national land charges register, which will happen over the coming year. It will be working with more than 30 local authorities in England to migrate local land charges records to a centralised digital register, which will launch in 2018-19, benefiting up to 125,000 home buyers.
The first phase of migration will establish the foundations for the national local land charges service and help the Land Registry better understand how it can make further migration of more local authorities’ land charges and how to do that more simply and faster, using data more effectively. In the meantime, local authorities are still expected to undertake activity to keep the register up to date.
The hon. Gentleman asked whether any powers have been extended to support the future privatisation of the Land Registry. The answer is simply no. I hope that satisfies him.
Bill Esterson
I asked about the impact on staff numbers. I quoted figures indicating that there are 850 staff across England and Wales. How many staff does the Minister anticipate will be needed in the Land Registry, and what will be the impact on staff in local authorities? Will fees stay the same or change? Does he accept the figures in the Library briefing, which indicates that this measure will cost £48.5 million and generate £134 million of income?
Mr Gyimah
Of course, as I said, the trading fund will have to ensure that its income from fees covers its expenditure under normal operating conditions. The hon. Gentleman asks about the number of staff and what exactly will happen to them. As I wait for inspiration on that point, I will expand on some of the other points that he raised. Local authorities will receive a new burdens payment to assist with this migration so that they are not negatively affected financially, and we are working with new businesses to assess how it will be implemented. [Interruption.] The inspiration seems to have arrived just at the right moment. On average, there will be a reduction in the fee for consumers, and we do not expect this to impact on staff increases at all. I hope he is satisfied—
Bill Esterson
I think I heard the Minister say that there will be an impact on local authority budgets because there will be an interim period during which there will be support. Is he saying that local authorities will have their budgets cut as a result of this move? Also, there are on average two to three affected staff in each local authority. Will they lose their jobs, or will they transfer to the Land Registry? It would be really helpful to know whether the Land Registry will take on additional staff or use existing staff, because 850 people’s livelihoods are at stake.
Mr Gyimah
No, there are no planned budgetary cuts, and we expect local authority staff to remain in local authorities to keep the register up to date. I hope that, at his third time of asking, I have satisfied the hon. Gentleman’s legitimate curiosity about the draft order, and I commend it to the Committee.
Question put and agreed to.
Oral Answers to Questions
Sam Gyimah Excerpts(6 years, 2 months ago)
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Stephen McPartland (Stevenage) (Con)
The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
We remain firmly committed to local enterprise partnerships. As announced in the industrial strategy, we are currently reviewing the roles and responsibilities of LEPs so that they are able to play an important role in developing local industrial strategies and driving growth across the country as we prepare to leave the European Union.
Stephen McPartland
Hertfordshire LEP has been a disaster for Stevenage people. Does the Minister agree that it is shameful that growth deal round 1 money is being used to build new council offices and sell off public sector land for developers to build luxury flats, with less than 10% being affordable homes?
Mr Gyimah
Some £15 million of growth deal round 1 money has already been invested in Stevenage, and that has helped to leverage a commitment of £350 million of private investment into the town. My hon. Friend raises an issue of concern, and I urge him to speak to the Secretary of State for Housing, Communities and Local Government to resolve it.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
May I invite the ministerial team to step out of its bubble by coming to Yorkshire and talking to our local enterprise partnerships to respond to their pessimism that while London and the south might survive post Brexit, the midlands, the north and the regions will be in bitterly disappointed territory?
Layla Moran (Oxford West and Abingdon) (LD)
Competitiveness Council
Sam Gyimah Excerpts(6 years, 2 months ago)
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The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
The Competitiveness Council (Internal Market and Industry) will take place on 12 March in Brussels. Day two on research and space has been cancelled.
The Council will hold an exchange of views on the European semester 2018: Digitalisation of the EU economy. The Council will discuss industrial policy and will look to agree upon a set of conclusions on a future EU industrial policy strategy for competitiveness, growth and innovation. There will then be a discussion to mark the 25th anniversary of the single market. Finally, there will be a ‘competitiveness check-up’ discussion which I expect to focus on the externalities of regulation in services on manufacturing.
The Council will discuss a number of AOB points on the Industry 2030 roundtable and the plastic strategy, both presented by the Commission. The Council will end with a point on better regulation presented by the presidency.
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Office for Students: Guidance
Sam Gyimah Excerpts(6 years, 2 months ago)
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The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)
The creation of the Office for Students (OfS) marks a new era for students as well as higher education regulation. On 20 February, I issued the first annual statement of Government priorities for the OfS under this new regime. This is being published today alongside the publication of the new regulatory framework—a key milestone in the delivery of the programme of reforms set out in the Higher Education and Research Act 2017 (HERA).
In my letter to the OfS, I set out the following key priorities for the OfS in its first year:
Creating a new regulatory system and ensuring a smooth transition—I have asked the OfS to be bold in operating the new regulatory framework, explicitly supporting diverse, innovative approaches and championing students. A key task in 2018-19 is to register current and new providers ready for full operation of the framework from August 2019, while continuing to operate the existing regulatory arrangements effectively during the transition.
Delivering value for money for the student and taxpayers—In order to ensure that all students receive value for money, I have asked the OfS to work with the sector to protect quality and standards, hold governing bodies to account, improve transparency, and ensure good governance, effective and efficient use of resources—including around senior staff remuneration, engaging closely with the sector on its own self-regulation in this area.
Student experience, quality and choice—Students’ interests should be central to the OfS’ mission. I have asked the OfS to work with the sector to promote a positive higher education experience for all students regardless of background.
Freedom of speech—I have asked the OfS to champion and promote freedom of speech, including calling out and challenging attempts to shut down debate such as ‘no platforming’. Free speech is essential in ensuring that higher education exposes students to new and uncomfortable ideas, and encourages robust, civil debate and challenge.
Prevent—I would like the OfS to continue the work HEFCE has previously done to monitor and assess how HE institutions are managing their responsibilities under the statutory prevent duty, to safeguard students from the risk of radicalisation.
Access and participation—My expectation is that the OfS will promote access and participation in higher education and that this will be integral to all that the OfS does. I have asked the OfS to work with providers to seek continuous improvement in this area to encourage greater progress.
Industrial strategy and skills—I have asked the OfS to consider how the higher education sector can further support the Government’s broader economic policy as defined by the industrial strategy. Key to this will be promoting and enhancing collaboration between the higher education sector and employers, working with Government on reviewing how funding can be used to stimulate this and on reviewing the impact of apprenticeships.
Collaboration with UK Research and Innovation (UKRI)—I have asked the OfS to prioritise collaboration with UKRI to ensure a co-ordinated and strategic approach to the funding and regulation of the higher education system in England. This will include OfS leading on the teaching and student elements of the Higher Education Innovation Fund.
Strategic priorities for funding—The OfS’ funding priorities remain broadly consistent with those set for HEFCE in relation to teaching grant in previous years. I have also asked the OfS to support DfE on funding policy issues, including contributing to the review of Post-18 Education and Funding and helping take forward the review’s recommendations.
Developing the OfS—I have also asked the OfS to prioritise developing as an organisation which operates effectively and efficiently, with confidence and independence in regulating the sector, involving students, following the principles of best regulatory practice, and complying with the regulators’ code voluntarily (until this becomes a statutory requirement).
This statement of priorities also covers areas where the Government committed to provide guidance during the passage of HERA, such as on managing risks relating to overseas providers.
Supplementary guidance to the OfS
Alongside this overall statement of Government priorities, I also issued the following supplementary guidance on the 20 February—also being published today.
Priorities for access and participation including access and participation plan guidance—This sets out how the Government expect the OfS to take forward its responsibilities for access and participation and informs the access and participation plan guidance, which the OfS has issued to the higher education sector today.
Degree Awarding Powers (DAPs) and University Title (UT) guidance—This sets out the new high level criteria and processes for DAPs and UT, covering: the different types of DAPs authorisations: eligibility criteria for both DAPs and UT; and revocation and variation actions. The OfS must have regard to this guidance when exercising its functions.
Facilitating electoral registration—This guidance, produced by the Department for Education in collaboration with the Cabinet Office, asks the OfS to encourage providers to promote electoral registration, and help them understand potential challenges and risks that arise as a consequence of registering students.
Alongside the announcement of the review of Post-18 Education and Funding, this guidance and the work of the OfS reflects the Government’s commitment to ensuring that the higher education sector continues to be world leading, improving the opportunities for and outcomes achieved by all students from all backgrounds.
The guidance documents are being published on www.officeforstudents.org.uk/.
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