Home Insulation

Debate between Mark Hendrick and Claire Perry

Wednesday 24th October 2018 Commons Chamber

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

I am genuinely interested to hear the comments of the hon. Member for Preston (Sir Mark Hendrick) tonight. The points he makes about damp living conditions and the impact that has on people’s health and whether their homes are fit for purpose also apply in my constituency and are of enormous importance.

I will start by saying that I do not think that what has happened has been good enough. I will also say something that I will repeat at the end of my speech, which is that I am going to instruct one person in my Department to act as the broker and bring together all the people who have played a part in the problem and can also be part of the solution. I hope that that reassures the hon. Gentleman. I am also going to take a moment to set out where the issues the hon. Gentleman raised about this scheme are being addressed fully in the latest iteration of the schemes we are using to help people living in fuel poverty—the ECO3 scheme.

As the hon. Gentleman will know, the scheme he is referring to in his constituency was the community energy saving programme, or CESP, which was set up by the previous Labour Government. All the shortcomings of that scheme—no guarantee and no list of installers—were a function of the scheme design at that time. That is one reason why that scheme was closed by the coalition Government in 2012, and a number of penalties were issued for companies under that scheme because, as the hon. Gentleman’s constituents well know, it had not delivered what had been required both in terms of the carbon savings and the quality of work.

Fishwick was then part of this mitigation activity that was undertaken by InterGen. I totally agree that solid wall insulation is not a suitable way to reduce energy consumption in many homes in the country, but that was part of InterGen’s mitigation scheme. As the hon. Gentleman knows only too well—it is one of the reasons why he is a long-standing champion in this place—this issue has been going on for many years. There were problems as a result of those installations. Ofgem then received complaints from 62 households, although I know the complaints pool is much larger. Those were offered remedial work which was delivered by E.ON. But as the hon. Gentleman also knows, there are real concerns about the quality of that work, because, as he said, it is not good enough to rip the cladding off and leave holes in the wall; people expect to have a warm home that can breathe and is fit to live in.

I understand that E.ON provided some additional funding to carry out the necessary structural work. I am told it carried out full structural surveys, but if the hon. Gentleman is telling me that that was not the case, that is certainly something to investigate further. Some homeowners of course declined to have extra work; there were issues gaining entry and so forth. If full surveys were not carried out, we need to know that, which is why I am keen that we have one point of contact in my Department to get to the truth of the matter.

Since that work was undertaken in the summer of 2017, more complaints have emerged—over 180. As the hon. Gentleman set out, the installer no longer exists. We are insisting on appropriate guarantees through ECO, but the Fishwick homes, which are a strong failure of the scheme put in place by that Labour Government, did not have any guarantees required from any installer, and the Solid Wall Insulation Guarantee Agency now set up to be a backstop did not exist at the time.

[Sir Mark Hendrick]

I fully take what the Minister is saying to be correct, but I would have expected the guarantees and quality of work that we saw in the Warm Front programme to be carried over into this scheme if it was indeed put together by the Labour Government prior to the coalition. I am very surprised to hear that that was not the case, but obviously I believe what the Minister says.

[Claire Perry]

The great thing about these debates is that we do not have to focus too much on the politics, but the hon. Gentleman is right to say that some very good designs and functions were put in place under the warm home scheme, and they have very much influenced the design of the energy company obligation, which is the replacement for CESP.

Perhaps I can give the hon. Gentleman some comfort in relation to other constituents who are receiving measures under this scheme by telling him that the design flaws have been addressed. We have worked with the British Standards Institution to develop new standards over and above building regulations standards for any eco-obligation, and any installer that wants to be part of the scheme must meet those technical standards. All solid and cavity wall installations must be accompanied by a guarantee that gives financial assurance even if the company providing the guarantee cannot honour it. There has to be a bond in place to provide sufficient coverage of at least 25 years, including full replacement or remediation, and to provide a verified quality assurance tick, which we would expect our constituents to be able to rely on in terms of the quality of the work and the products that are being installed.

In July 2015, we commissioned the “Each Home Counts” review. This has been a further key driver of developments in this area. The hon. Gentleman might also have heard of the TrustMark scheme that I launched last week during Green Great Britain week. It sets out a clear code of conduct for businesses. He might also receive complaints, as I do, about cold calling and the aggressive selling of these products, which are completely unacceptable. A process guarantee and rigorous new technical standards to tackle poor design and installation will be published next spring. I entirely agree with him that robust monitoring is key, and enforcement activities are the way to ensure that this happens.

I want to bring comfort to the hon. Gentleman’s constituents, but I know that it is no comfort to learn that some of the failings in the scheme design of 2009 that have caused such problems for them have given us lessons from which we have learned. I was pleased this week to bring forward the next set of measures to support ECO3. It will now be focused 100% on the alleviation of fuel poverty right across the UK, and I hope that some of his constituents will benefit from that.

--- Later in debate ---

[Sir Mark Hendrick]

Just before the Minister finishes, will she address the matter of finance for the remaining homes and whether the Government can be of any assistance?

[Claire Perry]

The hon. Gentleman anticipates my final remarks. I am fully sympathetic towards what he said, and I am sorry that he has been given the runaround over the years, because he has been doughty in raising such points. There is such a complex array of people involved. He referenced Preston City Council, and I am disappointed that it has been less than active historically, particularly in working with some of the agencies with which he has set up relationships. It sounds as though InterGen, E.ON and Ofgem also need to be corralled into a place where we can come up with a solution.

The scheme’s design, under which insulation is independently installed, never included a backstop to Government finance, although the hon. Gentleman may say that that ought to be a requirement. I therefore do not have any money in any of my budgets to meet the funding requirements, but given that many of the companies are still in operation and will still want to work during the scheme—the market for them is substantial—I feel strongly that they ought to do the right thing and work out ways to fix the problems and ensure that residents are happy.

I will write to the hon. Gentleman shortly with the name and contact details of a person in my Department whom I will task with bringing things together and who will report back to me with progress on a regular basis. I am happy to discuss that progress with the hon. Gentleman, either in the Tea Room or more formally. Lessons have been learned, although I appreciate that that is no comfort for residents who have been bedevilled with problems, but we can work together to try to sort things out.

Question put and agreed to.

BAE Systems Military Air & Information Sites: Job Losses

Debate between Mark Hendrick and Claire Perry

Tuesday 10th October 2017 Commons Chamber

[Mr Mark Hendrick (Preston) (Lab/Co-op)]

(Urgent Question): To ask the Minister of State, Department for Business, Energy and Industrial Strategy if she will make a statement on the likelihood of over 1,000 jobs being lost across the north of England at BAE Systems Military Air & Information sites.

[The Minister of State, Department for Business, Energy and Industrial Strategy (Claire Perry)]

I know that the Government, and indeed all of us, are disappointed to hear the news that BAE Systems is considering reductions of up to 1,400 staff in its military air and information business, 375 in its maritime services division and 150 in its applied intelligence business. This is a concerning time for those working for BAE Systems, particularly in the run-up to Christmas. That is why I can assure the hon. Gentleman that the Government stand ready to support fully those affected. Indeed, colleagues across the Ministry of Defence, my Department and others are reviewing what support we can offer the company as it goes through this process. Of course, the Department for Work and Pensions is also standing by to provide whatever advice or support is required.

I would like to set out three main points. First, I will provide an update on the process; secondly, I will explain the rationale for the changes; and thirdly, I will set out what the Government are doing to support BAE Systems and this vital sector with our business. The company will now enter a 30-day statutory consultation process, and no final decisions will be taken about the level or type of redundancies until that process is complete. The Government will continue to work with BAE Systems to ensure that compulsory redundancies are kept to a minimum, and the company assures us that the reductions will be managed on a voluntary basis as far as possible. I emphasise that, as is usual in such cases, the DWP rapid response team is engaged and standing by, ready to deploy. It is incredibly important that the skills that people in the workforce have built up are retained in the UK industry as far as possible. That is why we will be using the talent retention system that was designed by my Department, working with the sector, to ensure that vital skills are not lost to the UK.

I turn now to the rationale for the announcement. The House should be absolutely clear that BAE Systems has taken this decision as a result of normal business practice. The decision is the result of internal restructuring and a drive to transform its business so that it can continue to be one of our most efficient and effective companies, generating export orders across the world. This is not related to any UK defence spending decisions. [Interruption.] Labour Members can shout all they like, but I hope that we can avoid getting politics into this. It was very striking how during conference speech after conference speech Labour Members—not the hon. Members opposite me, for whom I have great respect—went out of their way to criticise the industry that we are talking about. I suggest that we calm down and think about the people affected and what we can do to support them.

In the last year, the Ministry of Defence has spent almost £4 billion with BAE Systems, as part of the £18 billion—half of which is spent in the manufacturing sector—that we spend across Government buying products and services from UK industry. We continually bang the drum and lead the charge for our world-leading defence industry right across the globe, maximising export opportunities for companies such as BAE Systems and the thousands of people employed in their supply chains. Indeed, only last month the Defence Secretary signed a statement of intent with Qatar to buy 24 Typhoons and six Hawks from BAE Systems. This is extremely positive news, and it demonstrates continued confidence globally in Britain’s defence and aerospace industry. We will continue to work with BAE Systems to maximise opportunities for the Typhoon and the Hawk training aircraft, and the Type 26 global combat ship, in markets such as Saudi Arabia, Indonesia, Belgium, Finland, Canada and Australia.

In conclusion, we absolutely understand that this is a worrying time for those affected. We are determined to do all we can to support BAE Systems’ future export opportunities, and I stand ready to meet workers, unions or MPs who are concerned about the potential impact of the announcement in their constituencies.

[Mr Hendrick]

Thank you, Mr Speaker, for allowing this urgent question. Today’s announcement by BAE Systems has come as a huge blow to thousands of workers and their families across Lancashire in the run-up to Christmas. The majority of Lancashire MPs have today written to the Prime Minister seeking immediate action and offering to establish a taskforce to avert the disaster. We ask the Minister for a swift, meaningful and positive response to our request.

What intermediate and longer-term actions are the Government taking to win contracts around the globe, to fly the flag and to sell the Eurofighter Typhoon and the Hawk? That is essential to sustaining the UK’s leading-edge technology and sovereign capability, as well as highly skilled jobs and the massive supply chain in the north-west of England. In order to maintain a leading edge, we must look to the future. BAE Systems has taken a big step by developing a £12 million academy in Lancashire. Will the Government play their role and announce an industrial strategy for aerospace, as they have done with shipbuilding, and will they commit themselves to assisting BAE Systems to develop a sixth-generation manned fighter aircraft?

With my right hon. Friend the Member for Chorley (Mr Hoyle) and my hon. Friend the Member for Hyndburn (Graham P. Jones), I met Prime Minister Cameron to urge him to secure vital contracts with Japan and India. We were assured that there was good news on the horizon, but there clearly was not. The Minister mentioned Qatar and that is obviously positive, but it is nothing like the size of the other contracts. Lancashire builds the finest because we have the best workforce in the world. We do not want to be let down again, so I ask the Minister to use her good offices to impress on the Prime Minister the major concerns of Lancashire MPs and indeed of MPs from across the House.

[Claire Perry]

I commend the hon. Gentleman and many of his colleagues for their absolutely resolute support both for the company and the sector. Of course I would be delighted to meet the taskforce, and I think we should extend the offer to the workers and unions affected. It is absolutely clear that we need maximum communication about the process, or to encourage the company to ensure maximum communication, particularly at this worrying time.

The hon. Gentleman is right to say that the Government have a vital part to play in banging the drum for British exports. I have mentioned the Qatar statement of intent, and clearly there are ongoing conversations with countries, such as Saudi Arabia, that have expressed an interest in this technology. There is an appetite around the world for this technology. For every unit that is sold, the whole provision—supply and maintenance—will have a measurable impact on the work available for the hon. Gentleman’s constituents and those of other Members.

The hon. Gentleman asked about the industrial strategy for this sector. We are very keen—we are already having conversations about this with the aerospace sector—on a bespoke sector deal. He will know that we have worked with the industry, on initiatives such as the technology for the future combat air system, to set out what we need to do both across this export-facing part of the business and right across the supply chain to ensure we have the right level of investment and skills.