Children Not in School: National Register and Support

Ed Davey Excerpts

Tuesday 23rd January 2024 Commons Chamber

[Bridget Phillipson]

I am grateful to my hon. Friend for all her campaigning work on the important issue of supporting families and children where imprisonment is a factor in their lives, such as when a parent is spending time in prison or is in the criminal justice system. She raises the important issue—one that I will come to in the debate—of the need to get a better sense of all the information around a child so that we can better support all children and families.

[Ed Davey (Kingston and Surbiton) (LD)]

Will the hon. Member give way?

[Bridget Phillipson]

I will give way one final time, then I must make some progress.

[Ed Davey]

I am grateful to the hon. Lady for giving way. It is important that she has brought this critical issue to the House. Many groups of young children, as we have heard, are not in school for many reasons. One group that is particularly close to my heart is young carers. I am sure that she will know from all the evidence and analysis that, on average, young carers miss 27 days of school a year. That shows the absolutely urgent need to have a national carers strategy with a focus on young carers. Does the hon. Lady agree and will she commit her party to push that forward in government?

[Bridget Phillipson]

I agree that we absolutely must do more to support young carers, and I give the undertaking that a Labour Government would ensure that young carers’ voices, needs and rights and the support that should be made available to them are taken seriously.

Members on both sides of the House will be familiar with the view widely held by those on the Conservative Benches that whatever damage they might have done to our country, whether it be laughing in the face of voters waiting year after year for NHS treatment, as the Prime Minister did last week, the sewage that fills our rivers and seas, or the growing crisis their party has created in provision for children with special educational needs and disabilities—separate from all that—at least the education that children receive in our country is something the Conservative party has not yet damaged beyond repair. The trouble with that belief is that if it were ever true, today it is no longer.

At the end of last year, the OECD’s programme for international student assessment 2022 results came out. Conservative Members have for many years taken a keen interest in the results, which I should say at the outset are based on such a small sample in England that they may not be altogether robust—a point to which I intend to return. Close observers will have noticed that, over a number of years, the intellectual effort by the Conservative party and its apologists has moved from explaining to concealing what the results show, and from regarding them as a spur to action to taking them as an excuse for complacency. We are in a debate on an education matter, so I hope that Members across the House and you, Madam Deputy Speaker, will forgive me if I briefly adopt a didactic tone.

The PISA score for each country shows how well that country is doing at educating its children across reading, maths and science. The PISA rankings are about how well the children in that country are doing relative to children in other countries. Rather obviously, that ranking is affected by not merely how well children do in other countries, but how many other countries are involved. Going up or down the rankings need be no measure of changing outcomes for children in England, nor of any success for this Government. It is therefore the scores, not the rankings, that are the proper focus of Government attention.

It is not enough that our children are doing better than children elsewhere if they are doing worse than their older siblings, nor is it a comfort that their reading is better than that of children in another country if it is worse than their brothers and sisters. Education is not a contest between nations, but a shared endeavour in every country and across our world to give children the very best start—not some of our children, but all of them.

The PISA results showed that standards in England’s schools are going backwards in science, in reading and in maths. They may not be going backwards as fast as they are elsewhere, but the pace of failure ought not to be a source of pride. Some 14 years into a Conservative Government, they focus carefully on the rankings, not the scores, and their proudest claim is that other children for whom they are not responsible are getting an even worse education overseas.

It beggars belief—and it is no good blaming the pandemic. The pandemic was worldwide, but not every country has gone backwards. That slow failure is not a story of poor teaching, of staff not pulling their weight or of leaders not rising to the challenges they face. It is structural, reflecting choices made in Downing Street and the priorities of the Conservative party: tax breaks for private schools, not standards for state schools, and smaller bills for the super-rich, not better starts for children. The one area in which this Government excel is the creation and maintenance of fresh barriers to learning.

Schools may crumble—indeed, despite the Secretary of State’s well-publicised view of the quality of her own work, the BBC’s “Panorama” programme last night showed powerfully that schools do crumble—but nothing seems to stop Ministers putting fresh barriers in the way of our children getting the education they deserve. There are barriers because the children are neither at school nor in home education; barriers because children are not ready that day, or that year; barriers because children have not slept and cannot concentrate, do not succeed when they should and are not learning when they ought; barriers because children simply are not well; and barriers that speak to the wider failure, and the piling of expectations on schools alone that schools alone can never meet.

Child poverty’s effects do not end as the classroom door closes. The good night’s sleep, the space to do homework and the quiet undisturbed time at home are all missing from far too many of our children’s lives. As I mentioned earlier, the PISA results are based on such a small sample in England that they may not be altogether robust, and that points, indirectly, at the problems we face—the problems with which the next Labour Government will and must contend, because this Government have not, are not and will not. Teaching children who come to school does not help those who do not, supporting children we know about will not bring in the ones we do not, and the results for children who are there are not meaningful for the children who are not. That is true for PISA, true for GCSEs and true for A-levels.

Labour’s belief is simple: excellence is for everyone—not just for those who are in school every day, but for those who are not. High and rising standards must be in every school, in every classroom and for every child, but today, all too clearly, they are not. Across the autumn and spring terms last year, more than 1.5 million children were persistently absent from school. That is, roughly speaking, one in five children, or more than double the number who were absent during the same terms five years ago. If that rise goes on, the number of children persistently absent will rise to more than 2 million in 2025-26, or one in four children missing at least a day each fortnight. That is a disaster, and the Government are doing as close as they can to nothing at all.

Let me quote to the House the words of the headteacher of a state secondary school in the north-east, earlier this month:

“Today, an unremarkable Wednesday in the second week back after a two week holiday, 10% of our students are absent from school. 17% of Year 11 students, those in the most important examination year of their lives, are absent. We’ve become used to these statistics and sadly, these patterns of absence are now considered normal in schools. Indeed, our attendance is higher than national and local averages.”

Ministers will doubtless tell me they are proud of their attendance hubs, and the 10 councils in which they are set to deliver attendance mentoring. The Secretary of State might as well be proud of the water pistol she brings to a wildfire. School leaders know it is a disaster. They can see the catastrophe unfolding around them.

Special Educational Needs and Disabilities Funding

Ed Davey Excerpts

Tuesday 12th February 2019 Westminster Hall

[Sir Vince Cable]

My hon. Friend is right; that is one of many anomalies. Many such issues were not properly accounted for and are not being fully funded. I will come to others in a moment.

The consequence of the growing demand is that many local authorities, which are genuinely trying to do their best in most cases, are accumulating large financial deficits. The Local Government Association, which has done lots of research on it, believes that there will be a gap of about £1.6 billion at the end of the next financial year. That is unaccounted for at present.

Some London authorities—I speak as a London MP, but I know that other parts of the country have similar problems—have a shortfall from the high needs block of about 7%. For about six boroughs in London, it is more than 10%. For my borough, Richmond, it is 20%, and I think three others are in an even worse position, including the borough of my right hon. Friend the Member for Kingston and Surbiton (Sir Edward Davey). For his borough, I think it is 40%.

[Sir Edward Davey (Kingston and Surbiton) (LD)]

My right hon. Friend is right that the situation for Kingston is the worst of any London borough. We are spending more than 40% above our allocation, with a potential knock-on to the budgets of schools across the board, and potentially even the solvency of the local authority. Given how serious that is, does he agree that Ministers need to take action now and that we need to talk to the Department of Health and Social Care? The health service is often not paying for the health part of EHCPs.

[Sir Vince Cable]

My right hon. Friend is absolutely right: those are both key parts of the solution. For example, I have discovered that there are children whose need for wheelchairs—clearly a health requirement—is treated as an educational need. There are many such cases in which the finance sits in silos and is not sensibly dealt with.

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[Sir Edward Davey (Kingston and Surbiton) (LD)]

I will start with my four recommendations to ensure that I get them out in time. This is my first request to the Minister: when the Department looks at the high needs block formula, can it look at the historical element, because there is no justification for the allocations? They have simply come from history. Some of them are clearly unfair and my local authority has certainly been hit. Secondly, can the Minister speak to her education colleagues to ensure that capital funding is provided for a new special school in Kingston when the announcement is made shortly? Thirdly, as I said in my intervention on my right hon. Friend the Member for Twickenham (Sir Vince Cable), can we look at the way the NHS contributes to the cost of EHCPs? I have spoken to many headteachers and Achieving for Children in Kingston and it is clear that the health component is coming out of the education component to deal with things such as physio, testing for diabetes, and members of staff in the classroom dealing with the child’s health needs, not their educational needs. The bills that the NHS is not meeting run into hundreds of millions of pounds across our country.

My fourth recommendation relates to looking at special needs education and health again in a cross-party way. I speak not only from the experience of looking after my constituents and their children, but as the father of a special needs child who has attended two special schools, and who we now educate at home. In my experience of dealing with the schools and with EHCPs and the process, there is a huge amount of waste, which is a scandal when children are not getting the service that they should, such as CAMHS and so on.

I speak as a governor of a local school. I am very impressed by how maintained state schools are properly held to account for their budgets; but some of the voluntary or private schools, which might be very good, are not properly held accountable for the money that they spend. This might be controversial, but in my experience some of them do not provide the quality of care with the money they are given, partly because special needs are extremely difficult to look at. It is much more difficult to get a proper distribution and proper comparisons because special needs are so broad and heterogeneous, and it is difficult to get a proper statistical analysis, unlike with mainstream schools. It is also difficult because Ofsted does not analyse well enough what special needs schools are doing, so I urge the Minister to look at that problem.

In my constituency in the Royal Borough of Kingston we have a crisis in special needs schools. If I could show the Minister the graph of the London boroughs and their overspending on their allocated formulas, she would see that we are a long way to one end—more than 40% above our allocated funding. If we do not bring that overspending under control—it is partly our job to do so, but we need patience and help from the Government—it will call into question the solvency of the council.

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[The Minister for Apprenticeships and Skills (Anne Milton)]

It is a pleasure to serve under your chairmanship, Sir Gary. I congratulate the right hon. Member for Twickenham (Sir Vince Cable) on securing this debate, and I thank him for the constructive tone that he adopted in his opening remarks.

Provision for children with special educational needs and disabilities, and the support available for their parents and families, has been a particular concern for me since I was elected in 2005. Governments of all political persuasions have struggled to get it right.

The right hon. Gentleman spoke about the success of the Children and Families Act 2014, and pointed out some of the issues that have arisen. I was a Minister in the Department of Health when we were doing the early work on it. Much of what was done at the time was the right thing to do, but we must now resolve some of the issues that have arisen from that. Many—but not all—of the issues relate to funding. Many local authorities and schools are having to work very hard to make the best use of the resources available, particularly in supporting those children and their families.

I want to put on the record some of the things that we have done. We have prioritised funding for schools, and increased funding for high needs from £5 billion in 2013 to £6 billion this year—a 20% increase over five years. In December we allocated an additional £250 million funding for high needs, and in the next financial year we will ensure that every local authority will get a share of that additional funding. Across England, funding for high needs will rise to £6.3 billion in 2019-20. We have also announced an additional £100 million of capital funding to create new places and improve facilities for children and young people. That will take our total investment between 2018 and 2021 to £360 million.

We will invest in more of the new special schools that are needed locally. Sixty-five local authorities have applied for funding to build special and alternative provision free schools. We are currently looking carefully at those requests and will go ahead with all bids that meet the criteria and are of good quality, so that local authorities have the specialist provision they need. We are hoping to notify local authorities before Easter. I recognise that although that additional support is welcome, it will not provide a complete answer to the funding pressures that local authorities are reporting to us. We are preparing for the spending review with that in mind.

We have reformed the funding system and have introduced a new formula allocation to make the funding for those with high needs fairer. We introduced the national funding formula after extensive consultation. It marks an historic change to the way that we distribute education funding—one that previous Governments have long avoided. The formula that we use to allocate high needs funding uses a range of factors, including low attainment, deprivation and health factors, to direct funding to where it is most needed.

The formula ensures that the funding changes from year to year and takes account of changes in the overall population of young people and children, which the system it replaced did not. The formula also includes a substantial element of funding based on local authorities’ past spending, to reflect the fact that there are factors driving costs that depend on local circumstances and cannot be linked directly to the population and other characteristics represented in the formula. The formula also includes a funding floor to guarantee an underlying increase in high needs funding from this year to next year, subject to population and pupil or student number changes. Although the national funding formula is a significant improvement in the way that we distribute high needs funding to local authorities, we will keep it under review.

[Sir Edward Davey]

Is the Minister able to tell me, either today or in writing, how the historical spend factor in the formula was set? I understand what history is, but it needs a justification.

[Anne Milton]

I will make sure that the right hon. Gentleman gets a letter on that point.

We want to ensure that the design of the funding system works in mainstream provision. The hon. Member for Westmorland and Lonsdale (Tim Farron) raised the issue of perverse incentives, as did my hon. Friends the Members for Bexhill and Battle (Huw Merriman) and for Cheltenham (Alex Chalk), who has raised this issue with the Secretary of State. There is an expectation that mainstream schools pay for the cost of SEND support—up to £6,000 from their core budget—before accessing additional top-up funding from the local authority. We are very aware that that arrangement is deterring schools from meeting the needs of pupils with special needs.

A number of issues were raised in this debate. My hon. Friend the Member for St Ives (Derek Thomas) talked about the life chances of those young people and referred to proposed changes in Ofsted inspections, which are very important. I am the Minister with responsibility for post-16 further education, and I know what a brilliant job further education colleges do. As the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) said, getting education right early in a child’s life saves money and, in some instances, much heartache further down the line.

I point out to the shadow Minister that discretionary bursaries are available for transport, although I know that that is an issue for some local authorities. I do not recognise all that the shadow Minister said, which is disappointing, bearing in mind the consensual tone of the debate. I think that we all share and acknowledge the problems that families and their children face. There is no one system that works for every child. I remember that when I was elected in 2005, the whole issue of inclusion was much debated. Inclusion is positive, but it is not always the right answer for children or their families.

Home schooling is without doubt the option that some parents choose if their child’s needs are not being met. The hon. Member for Sheffield, Heeley (Louise Haigh) mentioned increase in demand for EHCPs and the issue of transport costs, while the right hon. Member for Kingston and Surbiton (Sir Edward Davey) raised the issue of the NHS not paying for the health part of the EHCP. When I was a junior Minister, bringing health and care together was at the heart of discussions. My right hon. Friend the Member for Witham (Priti Patel) talked about wraparound provision, which is exactly what the changes to the 2014 Act were meant to ensure.

The hon. Member for High Peak (Ruth George) talked about the fight that parents face—as if they do not already have enough to manage. The hon. Member for Sheffield, Heeley talked about navigation of the complex system. It is a complete nightmare for parents who, as I said, already have a lot on their plate. There are right hon. and hon. Members present who are members of the Government—my right hon. Friend the Member for Portsmouth North (Penny Mordaunt) is one—and who have an interest in this subject. If House convention had allowed it, they would have raised particular points, because this issue is shared by many.

My right hon. Friend the Secretary of State for Education—

Oral Answers to Questions

Ed Davey Excerpts

Monday 11th December 2017 Commons Chamber

[The Minister for Apprenticeships and Skills (Anne Milton)]

I would be delighted to meet my hon. Friend, and I praise the work that he has done on apprenticeships. It was a delight to see him at WorldSkills UK in Birmingham. I also praise the work that he is doing on the year of engineering.

[Sir Edward Davey (Kingston and Surbiton) (LD)]

The Secretary of State might not be aware of this yet, but on 4 December I wrote to her to ask for an urgent meeting to discuss the funding of high needs in Kingston. Kingston’s high needs budget is set to be overspent this year by £6.5 million, or 35%—the worst in London. Will she meet me as soon as possible to discuss this?

[Mr Goodwill]

We are providing high needs funding of £5.84 billion to local authorities this year—next year’s figure rises to £5.97 billion—to help them to support children and young people with special educational needs. Earlier this year, we gave local authorities £23 million to support a strategic review of their special needs provision. We have allocated £215 million of capital funding to enable local authorities to create more places for those with special educational needs and disabilities. I would be happy to meet the right hon. Gentleman to discuss this issue.

Schools Update

Ed Davey Excerpts

Monday 17th July 2017 Commons Chamber

[Justine Greening]

I have set out that we will have a minimum of around £4,800, which will be transitioned in over these two years. That is good news, and I pay tribute to my hon. Friend who has been a tireless campaigner on fair funding. He has done an outstanding job of being very clear with me about his local community concerns and also his desire to see fair funding. It is responding to colleagues like him that has led to the statement today.

[Sir Edward Davey (Kingston and Surbiton) (LD)]

The Secretary of State will know that the National Audit Office said just a few months ago that school budgets needed an extra £3 billion by 2020 to avoid cuts. How does she square that figure with the £1.3 billion that she has announced today over two years? She also knows that the high needs budget—spending on special educational needs—is rising faster than inflation and faster than per pupil numbers. What in this statement will deal with that?

[Justine Greening]

In answer to the right hon. Gentleman’s first point, we are maintaining real-terms funding per pupil, as I have set out today. That sits alongside the other work that we are doing with schools to enable them to unlock efficiencies from the investment that is already there. I have also set out further additional funding for high needs today, which I hope he will welcome, given his long-term interest in this area.

Oral Answers to Questions

Ed Davey Excerpts

Thursday 2nd February 2012 Commons Chamber

[Hugh Bayley (York Central) (Lab)]

6. What his policy is on the Daylight Saving Bill; and if he will make a statement.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

May I first pay tribute to my hon. Friend the Member for Castle Point (Rebecca Harris) for her excellent work on her private Member’s Bill? As the House knows, the Government supported the Bill, as amended in Committee. Unfortunately, and as the Leader of the House made clear last week, there is no way the Bill could complete its passage through both Houses in this Session, but it could be taken forwards by a private Member’s Bill in a future Session. The Government would not, however, expect to introduce any trial of daylight saving time if there was clear opposition in any part of the UK.

[Hugh Bayley]

In the Western Morning News, the Secretary of State is reported as saying that he is disappointed that the Bill was killed by a handful of Back Benchers who could not see the light, and that he did not rule out Ministers—I repeat, Ministers—finding more time. If the Government are genuinely committed to this measure, as they say they are, and if it is not just warm words and they really want it to happen, will they commit to bring forward a Bill of their own in this Session or the next?

[Mr Davey]

The Leader of the House explained the problems of doing so in this Session and was equally clear that we would welcome a private Member’s Bill in the next Session. This Government have worked harder on this issue than the last one did, and we have made more progress. I would hope for emerging consensus in the House because this Government are making real efforts.

[Mr Peter Bone (Wellingborough) (Con)]

The Minister seems to be trying to face two ways at once. It is quite clear that time could have been made. We have a general debate later today and the time for it could quite easily have been devoted to private Members’ Bills. I doubt whether today’s business will run the full course. Come on, let’s put this Bill back on and let Parliament decide.

[Mr Davey]

I know my hon. Friend is a huge supporter of the Bill, but the Leader of the House has made clear the problems of getting it through both Houses during this Session, and I am certainly not one to challenge his judgment.

[Anne Marie Morris (Newton Abbot) (Con)]

7. What steps his Department is taking to support micro-businesses.

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[Mr Nick Raynsford (Greenwich and Woolwich) (Lab)]

17. What his policy is on responding to public interest declarations made to him or his Department.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

My right hon. Friend the Secretary of State takes seriously any public interest declarations made to him. If a declaration alleges that a company is trading in a fraudulent manner, the Secretary of State can authorise an investigation into the affairs of that company, using powers under the Companies Acts. Such investigations are confidential and it is seldom possible to confirm or deny whether an investigation is in train, but if there is an enforcement action as a result of the investigation, that can be made public. My officials will of course be willing to take further details of the allegations.

[Mr Raynsford]

I am grateful to the Minister for his answer, and to the Secretary of State for the letter he sent me yesterday in response to my constituent’s public interest declaration. I cannot but note that it is only since the question appeared on the Order Paper that his Department appears to have been taking the matter seriously, because the declaration was made in mid-December. Given that it is a serious declaration, involving allegations of unethical and probably criminal behaviour by a significant company, will the Minister ensure that the investigation takes full and detailed evidence from my constituent?

[Mr Davey]

I am sorry that after the initial e-mail sent just before Christmas there was no substantive follow-up. I apologise to the right hon. Gentleman’s constituent, but the Secretary of State has now written to the right hon. Gentleman, as he acknowledged, and I confirm that officials of the Insolvency Service who exercise those powers will now make contact with his constituent as he has requested.

[Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

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[Greg Mulholland (Leeds North West) (LD)]

The one seemingly hopeful part of the Government’s otherwise dreadful response on pub companies was the unfortunately named PICAS—the pub independent conciliation and arbitration service. However, hope soon faded when it was revealed that it was to be pubco-funded, and this week it has been announced that it will be chaired by a Punch Taverns surveyor. Does the Minister think that licensees will want to use that supposedly independent body?

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

I am afraid that as in a number of aspects of this debate, my hon. Friend does not reveal the full details. Rodger Vickers has been appointed with the unanimous support of the board of the pub independent rent review scheme, which includes two members of the Independent Pubs Confederation, the champion of licensees and tenants. I have made it clear to the independent chairman of PIRRS, Mr Brindley, that its efforts to appoint a vice-chair, again with high standing among the licensee community and close links to the IPC, should continue.

[Mr Jim Cunningham (Coventry South) (Lab)]

Will the Secretary of State clarify what is actually happening to the Typhoon contract? There was an implication that it could be renegotiated. If he fails to renegotiate it, will he blame the previous Government?

Oral Answers to Questions

Ed Davey Excerpts

Thursday 8th December 2011 Commons Chamber

[Julian Smith (Skipton and Ripon) (Con)]

17. What recent progress his Department has made on its employment law review being undertaken as part of the red tape challenge.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

We have made excellent progress with our employment law review. Our radical package includes streamlining the employment tribunals system, doubling the qualifying period for unfair dismissal, promoting early conciliation and mediation, and simplifying compromise agreements. We have also called for evidence on TUPE and collective redundancies as part of our wide reforms.

[Brandon Lewis]

For many years, small and medium-sized enterprises in particular have felt that they are caught in the stranglehold of gold-plated red tape when it comes to growing and employing more people. Will the Minister give grounds for optimism to companies that want the freedom to employ more people and grow, particularly with reference to TUPE, which he mentioned?

[Mr Davey]

The Government’s strategy is to ensure that we are not gold-plating. I am sure that my hon. Friend will have been pleased that on 23 November we published a call for evidence on the TUPE regulations, which he mentioned. It is available on the Department’s website and I encourage all right hon. and hon. Members to respond.

[Mr Marcus Jones]

I recently met local business people at a constituency event sponsored by the Federation of Small Businesses, and they told me that they were apprehensive about taking on additional employees because of the culture of employment tribunals, to which employees can take even the most spurious claims without any personal risk whatever. What can the Minister do to address that issue, which, if tackled, would encourage more employers to take on extra staff?

[Mr Davey]

We have listened to both employer and employee concerns about the cost and complexity of going to employment tribunals, and believe that our reforms will make a positive difference to both parties. We have set out our conclusions and our response to the “Resolving Workplace Disputes” consultation. Critical aspects of our new approach include a major new emphasis on mediation and a new pre-claim conciliation service by ACAS, and, finally, a fundamental review of the rules and procedures is now being undertaken by Lord Justice Underhill.

[Julian Smith]

Compensated no-fault dismissal could be a great fillip to very small businesses and the employment market. Will the Minister outline the timetable for the Government’s call for evidence and reassure the House that he is completely open-minded on the policy?

[Mr Davey]

As my hon. Friend knows—the Chancellor announced this in the autumn statement—we will be publishing a call for evidence on the case for and against a new compensated no-fault dismissal for micros. The Government have an open mind on that, but we are especially keen to ensure that there are no unintended consequences. My hon. Friend will be mindful that the unfair dismissal law was introduced by a previous Conservative Government to improve industrial relations.

[Jim Sheridan (Paisley and Renfrewshire North) (Lab)]

As part of the sham review of employment legislation, has the Minister had any consultations with the trade unions or others who believe in effective employment legislation? If he has, what was the outcome? If he has not, why not?

[Mr Davey]

My right hon. Friend the Secretary of State and I regularly meet Brendan Barber from the TUC. People from the trade union movement widely responded to the “Resolving Workplace Disputes” consultation, and we have looked at those responses.

[Fiona O'Donnell (East Lothian) (Lab)]

The Minister will be aware that those who work with children and vulnerable adults can play a vital role in their protection. What is he doing to ensure that new employees, who often see problems with established bad practice, are protected if they decide to become whistleblowers?

[Mr Davey]

There is already whistleblowing legislation; I believe that it was passed by the previous Government. We would therefore advise employees in the situation that the hon. Lady describes to look at that.

[Ian Murray (Edinburgh South) (Lab)]

The Secretary of State and the Minister are obviously at loggerheads with Downing street over their proposals on changes to employment law, and have been forced to consult on no-fault dismissal. Lord Heseltine believes that such a measure would

“make life rougher and tougher for large numbers of people”;

Citizens Advice described it as a rogue’s charter; only 6% of SMEs consider employment law as a factor when employing people; and the Secretary of State himself has said that there was already a “reasonably good balance” between rights and flexibility in Britain. So why is his Department—the Department for no growth—trying to make it easier to fire rather than hire people?

[Mr Davey]

The truth is that the Government are making it easier to hire people. We understand the importance of fair, efficient and flexible labour markets. We will protect those because that is in our country’s interest. I should tell the hon. Gentleman that we are working very closely with colleagues across the coalition on all aspects of our employment law review. This coalition is more together than the Labour party was when it was in government.

[Dr Julian Huppert (Cambridge) (LD)]

3. When he plans to publish his innovation and research strategy.

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[Keith Vaz (Leicester East) (Lab)]

6. What recent steps he has taken to ensure that the liquidation of Bank of Credit and Commerce International is complete.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

My right hon. Friend the Secretary of State wrote to the BCCI liquidators about the progress of the BCCI liquidation earlier this year, following his meeting with the right hon. Gentleman. I understand that a closure plan has been published on the liquidators’ website at www.bcci.info. This website is updated as and when there are any developments in the liquidation.

[Keith Vaz]

It is now 20 years since the bank went into liquidation, in which time the liquidators, Deloitte Touche, its solicitors, Lovells, and other professionals have received £1.2 billion in fees. Will the Minister thank the Secretary of State for writing that letter and ask him whether he would be prepared to secure his place in history, or at least to act as Santa Claus to the victims of BCCI, so that finally this bank can be closed and the liquidators will cease to bleed it of the last remnants of its money?

[Mr Davey]

I think that my right hon. Friend already has his place in history. The right hon. Member for Leicester East (Keith Vaz) knows that the BCCI creditors have been repaid more than 85% of what they were owed at the outset of liquidation, and a final dividend—estimated to be about 3%—is expected to be paid in April or May 2012. He will also know that control of the BCCI liquidation is a matter for the liquidation committee, and ultimately the courts, not for the Secretary of State, and that the liquidators are trying to bring this long period to an end.

[Harriett Baldwin (West Worcestershire) (Con)]

7. What steps he is taking to assist unemployed people to start new businesses.

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[Naomi Long (Belfast East) (Alliance)]

T7. Northern Ireland is the only region where employment law is devolved, an anomaly that in the past has led to the Northern Ireland position being largely ignored in the formulation of UK policy both in the transposition of European Union employment directives and in national agreements. Will the Minister assure us that he will work with the Minister for Employment and Learning in Northern Ireland to provide a framework in which Northern Ireland interests can be addressed in any future developments in this area?

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

The hon. Lady is absolutely right: our Department looks at the majority of employment law for the rest of Great Britain but not for Northern Ireland. However, I can assure her that officials from my Department are in regular contact with their counterparts in the Department for Employment and Learning in Northern Ireland. Examples of that include frequent conversations during the consultation on resolving workplace disputes, and close working between the employment agency standards inspectorate and the equivalent team in Northern Ireland. Indeed, we are currently working with it to understand the impact of the agency workers directive, and we will continue to do so.

[Mark Menzies (Fylde) (Con)]

T9. Will the Minister update me on what efforts are being taken to attract inward investment into enterprise zones such as that in Warton in my constituency?

--- Later in debate ---

[John Pugh (Southport) (LD)]

Will the Minister explain how revising TUPE will actually create more jobs, as opposed to facilitating outsourcing?

[Mr Davey]

My hon. Friend will know that there are mixed views in the business community about whether or not the current TUPE regulations are gold-plated, which is why we have called for evidence. We have not published a consultation with specific proposals as we want to have evidence from all stakeholders, so that when we make our proposals in a future consultation they will be well evidenced.

[Mr John Denham (Southampton, Itchen) (Lab)]

May I draw the Secretary of State’s attention to the £150 million worth of entirely private investment that Associated British Ports wants to spend now to equip Southampton for the next generation of container ships? Instead of creating and supporting 2,000 or more jobs, this project is mired in red tape in the Department for Environment, Food and Rural Affairs and its agencies. Will he speak to his colleagues to try to get this vital project under way?

--- Later in debate ---

[Mr Speaker]

Order. I think we have got the thrust of it.

[Mr Davey]

I am very grateful for my hon. Friend’s question. She will be aware that her constituents in this village share their concerns about postcode issues with many other residents in many other constituencies across the UK. I have raised this matter in the past with Royal Mail, and it believes that the costs of changing its systems would be disproportionate. Of course I will raise her point, but I do not want to raise her expectations.

[Jim Shannon (Strangford) (DUP)]

The responsibility to promote adult and community learning in Northern Ireland is a devolved matter. Has the Minister considered linking with Northern Ireland’s Department for Employment and Learning to provide a strategy for the mutual benefit of both the UK mainland and Northern Ireland?

--- Later in debate ---

[Karen Bradley (Staffordshire Moorlands) (Con)]

I am afraid that I am going to take the Minister back to the issue of postcodes, as many of my constituents contact me with their frustrations about the very wide range of postcodes in Staffordshire Moorlands, which leads to problems with insurance, cold weather payments and the emergency services failing to find people. So would he be able to meet me and local representatives to discuss the possibility of creating and setting up a Staffordshire Moorlands postcode to deal with these problems?

[Mr Davey]

I am always happy to meet hon. Members and I am sure we can arrange that. Ahead of that meeting, however, I want to ensure that the hon. Lady and her constituents who will be accompanying her do not have raised expectations. Royal Mail is struggling with its financial position. We are turning around Royal Mail—it was a disastrous financial case when we had it from Labour—and, as Minister, I would not want to impose extraordinary and disproportionate costs on it. I shall certainly meet the hon. Lady, however.

[Chris Bryant (Rhondda) (Lab)]

The Labour Government introduced the artists resale right, which has made an enormous difference to many artists in this country. The law requires that it is introduced for the estates of deceased artists from 1 January next year. When I last asked the Secretary of State about it, he said that he could not confirm that it was going ahead and he still looks as bemused as he did then even though it is his responsibility, but the Arts Minister has told me that it will go ahead as long as I do not mention it to anybody else. Will the Secretary of State please now inform us exactly what is happening on the artists resale right?

[Mr Davey]

rose—

[Chris Bryant]

The Secretary of State.

Oral Answers to Questions

Ed Davey Excerpts

Thursday 27th October 2011 Commons Chamber

[Michael Connarty (Linlithgow and East Falkirk) (Lab)]

1. What recent progress he has made on securing private sector investment in Royal Mail.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

As I made clear during the passage of the Postal Services Act 2011, we are taking a staged approach to its implementation. Before decisions can be taken on private sector investment, the regulatory regime must be reformed and the Government must secure approval to take on Royal Mail’s historical pension deficit and restructure its balance sheet. Progress is being made in these areas, alongside Royal Mail’s progress with its modernisation plan.

[Michael Connarty]

I thank the Minister for his reply. Will he therefore tell the House exactly how much the Government value the assets in the Post Office pension fund at this moment, how much will be transferred to the Treasury and what will be left in the assets of the pension fund thereafter?

[Mr Davey]

The hon. Gentleman will know, having been in the House a long time, that we would not make a valuation while working with the European Commission to secure state aid clearance. Until we get that, those sorts of calculations would be completely inappropriate.

[Lorely Burt (Solihull) (LD)]

As part of the deregulation process prior to the sale, we can expect a reasonable rise in stamp prices, which are currently the second lowest in Europe, despite the fact that we have the highest delivery specification. Does my hon. Friend agree that it is ironic that the Labour party now criticises us for remedying the problems that it created through its regulation procedures?

[Mr Davey]

During the passage of the Postal Services Act, we heard a lot of criticism of the regulatory regime that the Labour party put in place. We put in a much stronger regime, which has been greatly welcomed.

[Mr Marcus Jones (Nuneaton) (Con)]

2. What steps he is taking to support manufacturing.

--- Later in debate ---

[Nic Dakin (Scunthorpe) (Lab)]

T4. In June, the Office of Fair Trading upheld the Which? super-complaint about card surcharges, agreeing that they pose significant detriment to consumers. When will the Government act to stop people being exploited in this way?

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

I am grateful to the hon. Gentleman for his question. We are looking at the OFT’s powerful report and consulting colleagues in the Treasury, and we will come back to the House in due course.

[Michael Fallon (Sevenoaks) (Con)]

T3. In formulating his response to the Beecroft review, will the Secretary of State bear in mind the interests of hundreds of thousands of people who are currently locked out of the labour market, particularly youngsters who might well be prepared to waive some of the more generous job protection provisions in return for that vital first start?

[Mr Davey]

My hon. Friend will know that the Chancellor has announced that we will move the period of unfair dismissal from one year to two years—I know that my hon. Friend welcomes that—which will deal with exactly the point he has made. He will also know that we have an employment law review and a red tape challenge to ensure that we have employment laws in this country that will make our labour market fair and efficient.

[Stella Creasy (Walthamstow) (Lab/Co-op)]

T5. What message do the Government think they are sending to the thousands of families in this country who are now struggling in debt as a result of payday loans, by allowing the legal loan sharks not only to advise them on employment law, but to swell their party coffers?

[Mr Davey]

I was expecting the hon. Lady to thank the Government for putting forward an idea that she and other Members have been pressing on the Government: namely, to launch research on the impact of a cap on the total cost of credit. I am really rather disappointed in her.

[Margot James (Stourbridge) (Con)]

T6. My right hon. Friend will be aware of the Wilson review on the collaboration between industry and universities. I am currently working on a project in the west midlands with local business leaders and universities. Will he meet industrialists and me when the report is competed next year?

--- Later in debate ---

[Andrew George (St Ives) (LD)]

Many of those who strongly support the Government’s policy to establish a grocery adjudicator to curb the bully-boy tactics of supermarkets will be concerned to ensure that it has the teeth to do the job. Will my hon. Friend the Minister take this opportunity to reassure those supporters of the Government’s policy that a supplier will not be required to take the risk of making a complaint in order to prompt an inquiry by the adjudicator?

[Mr Davey]

I again pay tribute to my hon. Friend, because he has been a stalwart campaigner for that change. I am delighted that we were able to publish the draft Groceries Code Adjudicator Bill on 24 May, and that the Business, Innovation and Skills Committee’s report on it has welcomed our proposals. He will know that the proposal is unique, because it allows anonymous claims to be made to the adjudicator and for reports, of which the adjudicator will be able to take note, to be put into the public domain.

[Mr William Bain (Glasgow North East) (Lab)]

The Bank of England’s own data released last week indicate that lending by banks to small businesses fell by £2.5 billion in the three months to August. Was not the Secretary of State right to admit at last that the economy is in a far weaker state under this Government than it ever was in the last year under Labour?

[Greg Mulholland (Leeds North West) (LD)]

Since December 2008, 3,218 tied pubs have closed and 425 free houses have opened, yet the British Beer and Pub Association, which speaks for pub companies, continues to mislead Ministers and MPs by stating that the opposite is actually the case. Do Ministers agree that this discredits the BBPA and also shows that the Government must stick to their commitment to act on the issue?

[Mr Davey]

My hon. Friend has been a doughty campaigner on the subject, and he will know that the Business, Innovation and Skills Committee has just undertaken a report on all those issues. The Government are therefore considering it and will respond to it shortly. If I were tempted into replying to the details of his question, I would prejudice that response.

[Valerie Vaz (Walsall South) (Lab)]

Having withdrawn funding from the UK Resource Centre for Women in Science, Engineering and Technology, will the Secretary of State tell us which women’s organisations he has contacted to encourage women back into those under-represented areas?

--- Later in debate ---

[Dr Julian Huppert (Cambridge) (LD)]

The Department for Business, Innovation and Skills is considering the creation of a public data corporation. Does the Minister accept that making public data openly available can facilitate innovation in more ways than can be easily anticipated, benefiting the economy and the country? Will he meet me and other campaigners to discuss the details of that further?

[Mr Davey]

I am certainly very happy to meet my hon. Friend to discuss the issue. He is right to bring attention to this very important innovation by the Government to create something called a public data corporation, bringing together a number of key Government assets to ensure that they are managed efficiently and to put a greater amount of data into the public domain.

[Chris Bryant (Rhondda) (Lab)]

One of the Labour Government’s great successes was the introduction of the artist’s resale right. Since then, the art market has quadrupled, and hard-pressed artists have received £13 million. The derogation in awarding the artist’s resale right to the estate of dead artists lapses at the end of the year. Will the Secretary of State confirm that from January next year it will apply to the estate of deceased artists?

Oral Answers to Questions

Ed Davey Excerpts

Thursday 9th June 2011 Commons Chamber

[Julian Smith (Skipton and Ripon) (Con)]

11. What steps he is taking to ensure that employment law supports business competitiveness, job creation and sustainable economic growth.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

My Department is leading a comprehensive review of employment-related laws across Government to remove burdens from employers and ensure that our labour market operates effectively. Our consultation on resolving workplace disputes, for example, closed on 20 April, and we will be coming forward with our proposals in the autumn.

[Alun Cairns]

Does the Minister agree that there is a need to reduce employment regulation following Lord Young’s excellent report which talked about businesses operating within a climate of fear; and what progress is he making in reducing red tape in general?

[Mr Davey]

I am grateful for my hon. Friend’s question. I met Lord Young to discuss his views, and he explained that in his meetings with business people they talked about the reality and the perception of red tape, particularly in relation to employment law. We are therefore tackling both aspects with our proposals to reform employment tribunals, our moratorium for micros, and the review of sickness absence and compliance and enforcement regimes. We also published the employers charter to show that the legal position is not as frightening as some employment lawyers would have firms believe.

[Julian Smith]

Are other Departments fully engaged with the employment law review? Which Minister is leading this across Departments? Does the Minister agree that in order to address this issue fully we need all Departments, not just BIS, to be engaged with it?

[Mr Davey]

I agree with my hon. Friend. We have written to other Departments that are going to work with us on this. It is very important that it is a cross-Whitehall review, and it will last the whole Parliament long because we are determined to make a real difference.

[Jack Dromey (Birmingham, Erdington) (Lab)]

On a day when BMW announces £500 million of investment in Britain, safeguarding 6,000 jobs—the result of co-operation between the union Unite and a world-class company—is it not time for the Secretary of State to stand up to his backwoodsman Back Benchers, who would seek to demonise workers, and instead to celebrate modern trade unionism as a force for good?

[Mr Davey]

I think the hon. Gentleman is referring to press reports of the speech by my right hon. Friend the Secretary of State to the GMB. I am afraid that if he reads that speech he will see that my right hon. Friend repeated the Government’s line, which has been the case since we were elected, that we wish to engage positively with trade unions. That engagement is paying dividends.

[Kerry McCarthy (Bristol East) (Lab)]

Does the Minister accept that it is counter-productive to create the impression that things such as maternity rights, employment protection, the minimum wage and health and safety laws are burdens on business and not essential to ensuring that companies operate in the best interests not just of their balance sheet but of their workers?

[Mr Davey]

I refer the hon. Lady to the consultation that we published just last month on modern workplaces. We wish to reform maternity and paternity law, which we believe will be a win-win for employees and employers. It will produce better rights for families than the previous Government provided, and provide more flexibility for employees and employers so that they can have adult conversations about how such leave should be taken.

[Nigel Mills (Amber Valley) (Con)]

5. What recent assessment he has made of the level of lending by banks to small businesses.

--- Later in debate ---

[Nic Dakin (Scunthorpe) (Lab)]

13. What steps he plans to take to support those affected by job losses at the Tata plant in Scunthorpe.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

Of course, we were very disappointed to hear the news. It will be a worrying time for the workers affected, but I reassure the hon. Gentleman that the Jobcentre Plus rapid response service and the Skills Funding Agency are working with Tata Steel to support workers at the Scunthorpe plant.

[Nic Dakin]

I thank the Minister for his response. It would be good if he or the Secretary of State could come to Scunthorpe to see the situation first hand. Will the Government be bidding for European globalisation adjustment funds, for which the situation in Scunthorpe is eligible?

[Mr Davey]

I pay tribute to the hon. Gentleman for his efforts. He has met the Minister of State, Department for Business, Innovation and Skills, my hon. Friend the Member for Hertford and Stortford (Mr Prisk), and I am sure that he welcomed the announcement by my right hon. Friend the Secretary of State of the taskforce, on which the hon. Gentleman is serving. It is for the taskforce to come up with ideas not just for the regional growth fund but for European funding. If the taskforce can put together a bid, I am sure that it will get the Department’s support.

[Andrew Percy (Brigg and Goole) (Con)]

Members of Parliament across north Lincolnshire are working together closely on this important issue, which affects all of our constituents. Does it not demonstrate that the creation of a pan-Humber local enterprise partnership, which was recently agreed, is a positive step forward? We now need to send in our application and hopefully get Government approval for this pan-Humber LEP in order to support the renewables industry.

[Mr Davey]

We were delighted to be able to announce yesterday the decision on a new Humber estuary local enterprise partnership, which I am sure will play a positive role. I am sure that my hon. Friend would not expect me to say whether the enterprise zone will be awarded, but clearly the taskforce and the LEP are in a good position to represent that area.

[Brandon Lewis (Great Yarmouth) (Con)]

14. What steps he is taking to help young unemployed people find apprenticeship places.

--- Later in debate ---

[Andrew Selous (South West Bedfordshire) (Con)]

T4. Small businesses are the engine of growth and jobs for our economy, and all the time that owners and managers spend dealing with red tape is time taken away from expanding their businesses, so what have the Government done to reduce regulation on small businesses?

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

I assure the hon. Gentleman that we are spending a huge amount of time on tackling red tape through the red tape challenge, and I can report to the House a little victory. On bank holiday Monday, I attended the EU Competitiveness Council to argue for an exemption for micro-entities from various accounting rules under an EU directive. I am sure that the House will be pleased to know that that exemption passed the Council.

[Nic Dakin (Scunthorpe) (Lab)]

T3. According to the Office of Fair Trading, self-regulation of debt management companies is not working. Does the Minister agree that it is time for the Government to act to protect vulnerable consumers?

[Mr Davey]

The hon. Gentleman is quite right. He knows that I met him and other members of the all-party group on debt and personal finance to discuss that very issue. He will know of my concern about it, which was shared across the meeting. When we respond to the call for evidence on consumer debt and personal solvency, we will have a lot to say about that very issue.

[Gavin Williamson (South Staffordshire) (Con)]

T5. We all welcome the fantastic news from Nissan and BMW, but we want to see automotive investment in the west midlands. Will the Minister assure the House that he and his officials are doing all that they can to attract automotive investment into the west midlands?

--- Later in debate ---

[Andrew George (St Ives) (LD)]

Every day by which the creation of a groceries code adjudicator is delayed is a further day on which farmers, growers and food producers in this country and in the developing world go to the wall. What reassurance can Ministers give me and, indeed, the House that they will make every effort to ensure that a proposal which has cross-party support is implemented as quickly as possible?

[Mr Davey]

My hon. Friend, who has campaigned so vigorously and successfully on this issue, will be delighted to know that we published the draft Groceries Code Adjudicator Bill just before the recent recess. We hope that it will be scrutinised by the Select Committee and will attract interest across the House, and we hope to introduce the formal Bill on the basis of that scrutiny.

[Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)]

T8. May I return the Minister to the issue of regional development agency asset sales, about which there is considerable concern in my constituency and throughout the north-west? Can he answer the question put to him earlier by my hon. Friend the Member for Birmingham, Erdington (Jack Dromey)? If assets can be gifted to Boris Johnson and London, why can they not be gifted to the rest of the country?

--- Later in debate ---

[Mr Davey]

May I congratulate the hon. Lady on being the Member of Parliament who wants to meet me more frequently than any other? She omitted to tell the House not only that I have met her twice and that she failed to provide the evidence backing up her arguments for which I asked, but that I have met other Members of the House from the coalition parties who are campaigning on this issue, such as my hon. Friend the Member for Chippenham (Duncan Hames) and the hon. Member for North Swindon (Justin Tomlinson).

Oral Answers to Questions

Ed Davey Excerpts

Thursday 31st March 2011 Commons Chamber

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

Last month I met the Minister with responsibility for civil society, the Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Ruislip, Northwood and Pinner (Mr Hurd), and other Ministers with an interest in advice services to co-ordinate our national efforts. The Department for Business, Innovation and Skills has already agreed to protect the core funding for the umbrella organisations Citizens Advice and Citizens Advice Scotland.

[Barbara Keeley]

I thank the Minister for that answer, which I did not hear much of. Walkden citizens advice bureau, which is in Salford, serves an area that is among the 7% most deprived in the country, and has done since 1939, but it is now under threat because of uncertainty about funding and because of cuts. Will the Minister call a halt to the cuts in funding for advice services, and will he conduct an urgent review on the future of the funding of those vital organisations?

[Mr Davey]

The hon. Lady will know that local citizens advice bureaux are funded by local authorities and that the Government have called on local authorities to play their part, as the national Government are playing their part, and to pass on funding to CAB services. Those services are very important and are valued, and we are looking to all local authorities to play their part.

[Nia Griffith (Llanelli) (Lab)]

At a recent meeting I chaired, representatives from individual CABs and other advice centres from across the country gave the loud and clear message that the current uncertainty about the funding of advice services means that advice service centres are closing their doors, expert advice workers are being made redundant and vulnerable people will soon have nowhere to turn for advice. It is all very well the Minister’s blaming the closure of individual CABs on local government decisions, but those decisions are often taken in the light of extreme uncertainty about the future of other funding streams. His Government admits that there is much cause for concern, so why has he not sought an immediate moratorium on all cuts to Government funding streams for advice services for the coming financial year in order to allow time for a longer-term strategy to be developed?

[Mr Davey]

I am very surprised that the hon. Lady did not mention the £27 million that the Government announced last month for face-to-face debt advice. That has been strongly welcomed by citizens advice bureaux across the country, and I would have thought that she would have given us credit.

[Andrew Percy (Brigg and Goole) (Con)]

The CABs in Goole and Scunthorpe provide excellent advice to my constituents on debt-related issues. While I welcome the money that has been announced, is it not time that we tried to achieve a national approach? CABs have a battle, year in, year out, to secure funding, which clearly does not help our constituents.

[Mr Davey]

As I said in my initial response, we are working across government with other Ministers to make sure that we co-ordinate national efforts. We will soon respond to the call for evidence on personal consumer credit and personal insolvency, which will deal with issues such as debt advice.

--- Later in debate ---

[Margaret Curran (Glasgow East) (Lab)]

12. What discussions he has had with his international counterparts on steps to increase transparency in the reporting of company profits.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

I, personally, have not had any recent discussions with my international counterparts on the matter, but the Government are committed to greater transparency through corporate reporting. Internationally, the Treasury is leading the Government’s efforts with the Organisation for Economic Co-operation and Development’s task force on tax and development, which is exploring the issues of country-by-country reporting on tax and profits.

[Margaret Curran]

In the light of his answer, the Minister will be aware of the OECD’s recognition that poor countries lose more money each year to corporate tax-dodging than they receive in aid, and Christian Aid estimates that to amount to $160 billion. May I ask him to have a conversation with the Secretary of State? The right hon. Gentleman said in opposition:

“New accounting standards are needed to force multinational companies to declare publicly the profits they make and the taxes they pay in every country in which they operate. That way anomalies will be quickly spotted.”

Can I reasonably assume that, in the light of his commitment to the issue, the Government will raise it at the G20 in November?

[Mr Davey]

I think that the Government—both my right hon. Friend the Secretary of State and the Chancellor—actually have a very good record on the issue. We are contributing to the OECD taskforce, because it is about ensuring not just that UK companies report their profits as they need to, but that we improve corporate performance throughout the world.

[Dame Anne Begg (Aberdeen South) (Lab)]

What guarantees can the Government give for those companies that report their profitability transparently that, at the next Budget, the Treasury will not come along and, completely out of the blue, wallop them with a great windfall tax, as it just has with the offshore oil and gas industry?

[Mr Davey]

That was a very good attempt by the hon. Lady, who is obviously trying to champion her constituency, and that is exactly right, but I am sure she will attend the next Treasury questions.

--- Later in debate ---

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

18. What recent discussions he has had with his G20 counterparts on corporate social responsibility.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

I have had no such discussions in the context of the G20. However, in January, I met Professor Ruggie, the UN special representative on business and human rights. The Government welcome the guiding principles developed by Professor Ruggie and will work to build consensus for their adoption.

[Bridget Phillipson]

I thank the Minister for that answer. In opposition, the Secretary of State was a keen supporter of global action to tackle corporate tax dodging in developing countries, but the Department’s recent White Paper did not include a single reference to it. When will the Government put that right?

[Mr Davey]

The hon. Lady was not listening to the answer that I gave a few moments ago to her colleague, the hon. Member for Glasgow East (Margaret Curran). The Government are working hard with the OECD taskforce on tax and development, because we want greater transparency in the reporting of profits and tax.

[Mr Speaker]

Liz Kendall. Not here.

[Neil Carmichael (Stroud) (Con)]

20. What progress he has made on the implementation of his proposals for a groceries code adjudicator.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

The groceries code adjudicator Bill is being drafted. I had hoped to publish it before Easter, but now I expect that publication will happen soon after Easter.

[Neil Carmichael]

I thank the Minister for that encouraging reply. Farmers in my constituency are very anxious to see the introduction of an adjudicator. Will it have sufficient powers to impose financial penalties if there is persistent avoidance of the code of practice?

[Mr Davey]

When we publish the Bill, the hon. Gentleman will see that we wish to have a reserve power for the adjudicator on penalties, but there is also a real case to be made for the adverse publicity that large supermarkets would face if they breached the groceries supply code of practice.

[Jim Shannon (Strangford) (DUP)]

Last week we had a debate in Westminster Hall on the pig industry, and Members indicated clearly that if there was no immediate action to restore the balance between supermarkets’ profits and the profitability of farmers, many farmers would go out of business. What steps is the Minister taking to ensure that that does not happen?

[Mr Davey]

I may have to refer the hon. Gentleman to Ministers in the Department for Environment, Food and Rural Affairs, who are obviously responsible for agriculture. We should be clear that the groceries code adjudicator will not be a price regulator—that has never been proposed. It will be there to enforce the groceries supply code of practice. That is very important, because it is in the interests not just of the producers and farmers who supply the large supermarkets but of consumers.

[Kevin Brennan (Cardiff West) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[Yvonne Fovargue (Makerfield) (Lab)]

T4. There are still high numbers of rogue operators in the fee-paying debt management industry and they often charge high amounts and pay not one penny to creditors. Does the Minister agree with the argument advanced in Wednesday’s Daily Mirror by the free advice sector that it is no longer tenable to stand by and fail to protect vulnerable individuals from those companies?

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

The hon. Lady is right to raise this matter. She will know from her time working in the citizens advice bureau in her area how significant this matter is. Some debt advice agencies out there—frankly—do not act in an acceptable way. We are considering this issue under the consumer credit and personal insolvency review, and will make an announcement after the Easter recess.

[Bob Blackman (Harrow East) (Con)]

T9. I am all in favour of encouraging enterprise and start-up businesses. However, what will my hon. Friend do about the current scandal of businesses trading, taking people’s money, closing down overnight, then starting up the next day with the same directors and defaulting on all due payments? That is a scandal in society and we must stop it.

[Mr Davey]

My hon. Friend is exactly right, so I hope he welcomes the statement that I have made today on this very issue. Following a consultation launched by the previous Government, we have concluded that action needs to be taken on phoenix companies when assets are sold to connected parties without open marketing. Our proposals, which are in the statement, include insolvency practitioners giving three days’ notice to all creditors before the sale, which we think will be valuable.

[Alex Cunningham (Stockton North) (Lab)]

T7. The proposed changes to the feed-in tariff for solar energy projects has dealt the industry a massive body blow and left in tatters plans by Norton sports and social club in my constituency to build one to finance their community work. How many more projects have been deferred, and what does the Secretary of State have to say to this job-creating industry?

--- Later in debate ---

[Mark Durkan (Foyle) (SDLP)]

The Minister might be aware that the Office of Fair Trading is receiving complaints about the market dominance and business practices of Electoral Reform Services. Will he encourage the OFT to be more attentive and responsive to those complaints than it has been to previous complaints?

[Mr Davey]

The hon. Gentleman will know that the OFT is an independent body, and I am sure that he would not want the Government to breach the law by intervening in that way. However, I am sure that the OFT has heard his question.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

The excellent Coventry and Warwickshire local enterprise partnership is considering imaginative ways to make an offer for the next tranche of enterprise zones. Will the Minister meet it and me to discuss its imaginative ideas?

Oral Answers to Questions

Ed Davey Excerpts

Thursday 17th February 2011 Commons Chamber

[Yasmin Qureshi (Bolton South East) (Lab)]

18. What assessment he has made of the potential effects on requirements for support from his Department by citizens advice bureaux of planned reductions in the provision of legal aid.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

My Department does not provide core funding for individual citizens advice bureaux; it provides it only for the national umbrella bodies of which they are all members. However, we are aware of the challenges facing bureaux from funding cuts at both the national and local level, including from the proposals on legal aid funding, and we are working closely with colleagues in the Ministry of Justice and other Departments across government that have an interest in the citizens advice service.

[Yasmin Qureshi]

As the Minister will be aware, citizens advice bureaux are suffering pressures not just from cuts to the legal aid budget but across Departments that are cutting services. How many citizens advice bureaux does he think will be cut as a result of the spending review?

[Mr Davey]

As I said in my initial response, funding for local citizens advice bureaux is up to local authorities. The Department for Communities and Local Government has made it clear that the voluntary sector, including citizens advice bureaux, should not be hit disproportionately. I hope the hon. Lady will welcome the fact that the national bodies Citizens Advice and Citizens Advice Scotland have had their funding for next year maintained at current levels. I hope she will also welcome the announcement this weekend by my right hon. Friend the Secretary of State that we will supply £27 million of funding for face-to-face debt advice next year.

[Nia Griffith (Llanelli) (Lab)]

The Secretary of State will be well aware of the devastating impact that the cuts to legal aid will have on citizens advice bureaux across the country, leaving many people without the advice they desperately need. As the Cabinet Minister responsible for the citizens advice service, what action has he taken to ensure a coherent strategy across government to safeguard the full range of funding that the service receives from different Government Departments? At the moment, he seems to be abandoning the service, like the hireling shepherd leading out the injured lamb to be torn apart limb by limb by its predators.

[Mr Davey]

I do not think I have been promoted. However, I can reassure the hon. Lady that we are taking a cross-Government approach to the funding of citizens advice bureaux. That is why the Department has been so strong in making sure that national funding for the National Association of Citizens Advice Bureaux, which supplies technology and IT for all local bureaux, has been maintained, and I would have thought that she welcomed the extra money—£27 million—announced by my right hon. Friend the Secretary of State at the weekend, for which she and others have been calling.

[Mr Philip Hollobone (Kettering) (Con)]

19. If he will take steps to require Royal Mail to ensure the retention of the (a) colour of and (b) royal monogram on post boxes.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

Royal Mail has publicly stated that it cherishes its distinctive and much-loved red post boxes and that it is absolutely committed to ensuring that they remain a distinctive part of our communities. The Government believe Royal Mail should continue to use the royal cypher on post boxes and we are in discussions with the palace about that.

[Mr Hollobone]

The red pillar box is one of the great symbols of our great nation, and it would be a national shame if pillar boxes were to disappear as a result of privatisation. Will the Minister require the Royal Mail to keep red pillar boxes, or ensure that some form of listed heritage status is applied to them so that we do not lose this great British symbol?

[Mr Davey]

I share my hon. Friend’s interest in red post boxes, so I visited the British postal museum and archive only last week, and I can tell him that Britain’s post boxes were originally green, but the public complained that they were too camouflaged, so chocolate brown was tried instead. That colour required too much paint, however, so we ended up with red, and we are on the fifth shade of red. I can also tell my hon. Friend that it would cost almost £1.7 million to repaint the nation’s 115,000 post boxes, and given that Royal Mail has 300 litres of red paint in stock I think he can sleep easily in his bed at night about the colour of our post boxes.

[Mr Speaker]

We have now learned more about post boxes and the Minister’s travel plans and personal interests, for which we are grateful.

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[Mark Pawsey (Rugby) (Con)]

24. What steps his Department is taking to make it easier for small businesses to recruit staff.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

The Government are reviewing employment laws to provide the flexibility that businesses need and support economic growth. As part of this, we recently launched a consultation on employment tribunal reform and the employer’s charter, both aimed at increasing business confidence to take on, and manage, staff.

[Mark Pawsey]

On Friday I met business leaders in my constituency, Rugby, who told me that the matter of greatest concern to them is that too many work force disputes, often without foundation, are taken to the employment tribunal. Fear of such action is acting as a deterrent to employment. Can the Minister update us on when the new proposals will come into effect?

[Mr Davey]

As the hon. Gentleman knows, we recently published the consultation, “Resolving workplace disputes”. I urge him to ask businesses in his constituency to respond to that consultation because we want to ensure that the current system, which I believe is bad for employers and employees, is reformed.

[Simon Kirby (Brighton, Kemptown) (Con)]

T1. If he will make a statement on his departmental responsibilities.

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[Margot James (Stourbridge) (Con)]

T5. The UK dairy industry is in crisis, with farmers receiving from supermarkets 3p per litre less than the cost of production. This is leading to pressures to intensify dairy farming that are most concerning on grounds of animal welfare and the environment. Will the Minister update the House on plans to introduce a grocery code adjudicator, as announced in the coalition agreement?

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

I certainly will. We hope to publish the draft Bill before Easter.

[Helen Jones (Warrington North) (Lab)]

Does the Minister plan to switch higher education numbers to low-cost courses in further education colleges, as recently reported in the Financial Times, and, if so, what modelling has his Department done on the effect on student choice and possible increased social segregation?

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[Chris Ruane (Vale of Clwyd) (Lab)]

What is the Minister’s definition of the big society, and what role is his Department playing in it?

[Mr Davey]

I believe that the whole point of the big society is to give people the permission and the support to engage in their local community and to show responsibility. I would have thought that the hon. Gentleman and other Opposition Members supported something that plays to the best traditions of our country.

[Graham Evans (Weaver Vale) (Con)]

T9. I have mentioned in the House before my constituency’s excellent Daresbury science and innovation campus, which really is a world-class centre for hi-tech entrepreneurship. Daresbury recently bid for a share of the £1.4 million regional growth fund. Can the Minister assure me that that bid will be looked upon favourably?

[Natascha Engel (North East Derbyshire) (Lab)]

Government Front Benchers have today stated their intention to extend from one year to two a worker’s right to claim unfair dismissal, but, in industries such as construction, where tens of thousands of workers who have worked for many years for the same employer do not even have a written contract, what is the Secretary of State doing to enforce such basic employment rights before he starts taking workers’ other rights away?

[Mr Davey]

We do not propose to take away all the rights to which the hon. Lady refers. We are approaching our employment law in terms of ensuring fairness for employees and that businesses have the freedom and flexibility to take on more people. I would have thought that she welcomed the fact that we want to reduce the dole queues by ensuring proper employment reform.

[Lorely Burt (Solihull) (LD)]

I greatly welcome this week’s news that the directors of Farepak and its parent company have been disqualified, and I am sure that the whole House, alongside all the families who lost money, will do, too. What can we do now to ensure that companies like that are not able to bleed their subsidiaries of savers’ and families’ money?

[Mr Davey]

Disqualification proceedings have been issued against the nine directors on the grounds that their conduct makes him or her unfit to be concerned in the management of a company, so I am afraid that my hon. Friend’s remarks are slightly premature.

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[Mr Andrew Turner (Isle of Wight) (Con)]

Sixteen months ago, the Office of Fair Trading declined to investigate ferry services to the Isle of Wight. Many islanders feel that the ferry operators view the OFT’s decision as carte blanche to cut services and to change their pricing structure. Will the Minister agree to meet me and a small group of my constituents to discuss those matters?

[Mr Davey]

I am not aware of that OFT report from 16 months ago, but I will meet the hon. Gentleman to discuss it.

[Mr Ben Bradshaw (Exeter) (Lab)]

I thank the Secretary of State and his Ministers for what they have been trying to do in talking sense into Devon and Somerset over our local enterprise partnership, and suggest that perhaps west Dorset might like to come in with us as a solution to the problem mentioned by the hon. Member for Mid Dorset and North Poole (Annette Brooke). However, Exeter is still being completely excluded from this process. Will the Minister not sign off the draft LEP until Exeter is guaranteed either a business or a local authority seat on the partnership board?

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[Mrs Jenny Chapman (Darlington) (Lab)]

We found out this morning that Wonga, the payday lender, has raised £73 million to expand its operations across the country into even more communities. When are this Government going to get a grip on these legal loan sharks?

[Mr Davey]

As my right hon. Friend the Secretary of State said earlier, we are waiting to respond to the consultation on consumer credit and personal insolvency, which will deal with all aspects of consumer credit. I am not aware of the particular point that the hon. Lady has made, but when we respond I hope that she will welcome our ideas.

[Richard Fuller (Bedford) (Con)]

In towns such as Bedford, there is a tremendous opportunity for small business men and women to support start-ups and entrepreneurs in their local communities with time, advice and money. Will the Minister consider ways in which he can support such community-led efforts to promote jobs and enterprise in local communities?