Asked by: Emma Reynolds (Labour - Wycombe)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what estimate the Government has made of the number of companies affected by the liquidation of Carillion; and what steps the Government plans to take to minimise job losses at those companies.
Answered by Andrew Griffiths
At this stage in the liquidation process it is far too soon for the Liquidator to have gathered in full details of the company’s debts and creditors. The Liquidation process for such a complex and interconnected group of companies will take some time. The Official Receiver and his Special Managers have access to the records of the company and will be analysing these as quickly as possible.
We have taken steps to minimise job losses by enacting robust contingency plans to mitigate the impact of Carillion’s insolvency on public services and the individuals employed by the company. PWC are acting as Special Manager to the Official Receiver to ensure that we can continue to provide public services until the liquidation is complete, this means people providing these services can continue to go to work and be confident that they will get paid.
We met with and sought assurance from major high street lenders that they will not penalise small businesses affected by Carillion’s liquidation. Lenders are contacting customers and, where appropriate, are putting in place emergency measures, including overdraft extensions, payment holidays and fee waivers to ensure those facing short term issues can be helped to stay on track.
Government undertook to fund for 48 hours the costs of Carillion continuing to deliver purely private contracts in order to give private sector contractors to determine whether they want to pay for continuation of services from Carillion in liquidation while they move their contracts to another firm.
Between 15 and 16 January all of the company’s private sector service customers have been contacted by the Official Receiver to determine their ongoing needs. Over 90% of these customers have indicated that they want Carillion to continue providing services in the interim until new suppliers can be found and will provide funding which enables the Official Receiver to retain the employees working on those contracts.
My rt. hon. Friend the Secretary of State for Business, Energy and Industrial Strategy chaired the first meeting on 18 January of a taskforce to advise on the impact on small businesses and employees affected by Carillion insolvency. It will act as a means for government to communicate to those affected by Carillion’s liquidation, assess wider economic impacts and consider how to ensure that employees are provided with the right support to maximise rapid re-employment.
Information is published online by the Insolvency Service for employees, creditors and suppliers affected and seeking advice. This can be found at:
Asked by: Emma Reynolds (Labour - Wycombe)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what estimate he has made of the number of jobs at risk in Carillion's supply chain.
Answered by Andrew Griffiths
The nature of Carillion business means that it sub-contracts significant proportions of its work, with the potential for those sub-contractors to sub-contract out further elements. The complexity of the contracting structure is such that it is not possible for Government at this stage in the liquidation process to have an estimate of the number of jobs at risk in Carillion’s supply chain.
Asked by: Emma Reynolds (Labour - Wycombe)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, which measures in the industrial strategy will help to reduce the rate of unemployment in the West Midlands.
Answered by Claire Perry
The Government’s Industrial Strategy sets out a long term plan to boost the productivity and earning power of people throughout the UK. It also builds on previous reforms to allow local leaders to focus where they will have the greatest economic impact. We will agree Local Industrial Strategies that build on local strengths and deliver on economic opportunities. These will be long-term, evidence-based, and aligned to the national Industrial Strategy.
The Government is pleased to have agreed a further devolution package with the West Midlands: the detail of this deal demonstrates the Government’s commitment to mayoral devolution, the Midlands Engine and promoting local economic growth.
Key measures to support employment include:
Joint work to establish one of the first Skills Advisory Panels – a new partnership between the West Midlands Combined Authority, local employers, post-16 skills providers and central government which will bring together data and intelligence on local labour market demand and influence skills provision, including the implementation of T-level qualifications in the local area.
A career learning pilot testing new approaches to helping adults to upskill and reskill throughout their working lives.
In March 2017 we announced a flagship £20million Midlands Skills Challenge to improve skills across the Midlands. This includes:
£11 million to provide additional Work Coaches in order to deliver targeted employment support to unemployed people across Birmingham, Solihull and Black Country, with the aim of supporting claimants furthest from the labour market and improve the employment rate in these areas.
And £2 million to offer English-language training to people in the Midlands, whose lack of ability to speak English is holding them back from accessing employment.
Finally, in the three months ending September 2017, compared to the same period in 2010, the unemployment rate in the West Midlands fell from 9.0% to 5.7%, a decrease of 3.3 percentage points, meaning 87,000 fewer people unemployed (Labour Force Survey, November 2017).
Asked by: Emma Reynolds (Labour - Wycombe)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what the Government's policy is on executive pay being approved by an annual vote of shareholders.
Answered by Margot James
Remuneration policies of quoted companies must be put to a binding shareholder vote at least once every three years. A binding shareholder vote is required to approve any Directors’ remuneration that falls outside the scope of the approved remuneration policy.
The annual Directors Remuneration Report on implementation of the remuneration policy is subject to an advisory shareholder vote. If this vote is lost, a company must put a new remuneration policy to a binding shareholder vote within twelve months.
The Government has no current plans to change these existing shareholder voting provisions.
Asked by: Emma Reynolds (Labour - Wycombe)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, when the Government plans to introduce the register on shareholder voting announced by the Prime Minister on 27 August 2017; and whether his Department has undertaken an impact assessment of the number of companies it expects to be placed on that register.
Answered by Margot James
The Government’s response to the Corporate Governance Reform green paper consultation invited The Investment Association to implement its proposal to establish a public register of quoted companies encountering shareholder opposition of 20% or more to executive pay and other resolutions. The Investment Association is working to establish the register by the end of the year and the number of companies included will be confirmed at that time.
Asked by: Emma Reynolds (Labour - Wycombe)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether the Government has plans to increase the national living wage for apprentices above £3.50 per hour.
Answered by Margot James
The independent Low Pay Commission (LPC) review and recommend the National Minimum Wage rates each year, following extensive consultation and analysis. Their recommendations for 2018 will be provided to the Government in autumn, and Ministers will announce the rates, including the apprentice rate, to apply from April 2018 following that.
Asked by: Emma Reynolds (Labour - Wycombe)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what discussions he or his officials have had with UK businesses on the consequences on them of leaving the EU Customs Union.
Answered by Margot James
My Rt Hon Friend the Secretary of State for Business, Energy and Industrial Strategy and his officials have on-going discussions with businesses operating in multiple sectors to understand their views on a range of issues following the referendum.
Asked by: Emma Reynolds (Labour - Wycombe)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the potential effect of leaving the EU Customs Union on (a) businesses and (b) complex supply chains.
Answered by Margot James
The Department is currently working closely with the Department for Exiting the EU to understand the impacts that withdrawal from the EU will have on businesses, consumers and other economic actors. As my Rt Hon Friend the Prime Minister has said we will work hard to get the best deal for Britain.