Asked by: Ian Mearns (Labour - Gateshead)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he is taking to introduce more stringent supply chain employment requirements for the offshore wind industry ahead of the next Contract for Difference auction process.
Answered by Kwasi Kwarteng
The Government is eager to deliver supply chain investment and jobs from CfD contracts. We have confirmed our intention to align the Supply Chain Plan process with government priorities, and we are currently consulting[1] on proposals to introduce consequences for non-delivery of commitments that developers put forward in their Supply Chain Plans, which are approved before they enter the CfD Allocation Round. We are also strengthening the Supply Chain Plan monitoring process to support compliance.
These measures should be seen alongside my Rt. Hon. Friend the Prime Minister’s announcement on £160 million of new funding towards investment to upgrade ports and infrastructure and long-term ambitions to increase renewable energy capacity in the next CfD auction, which, together, will support new UK content, jobs and investment.
[1] https://www.gov.uk/government/consultations/contracts-for-difference-cfd-changes-to-supply-chain-plans-and-the-cfd-contract - Closing date 18th January 2021.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he is taking to ensure that the next Contract for Difference auction process assists the offshore wind industry in meeting its commitment to 60 per cent UK content in the supply chain for offshore wind farms on the UK Continental Shelf before 2030.
Answered by Kwasi Kwarteng
The Government is eager to deliver supply chain investment from CfD contracts. We have confirmed our intention to align the Supply Chain Plan process with government priorities, and we are currently consulting[1] on proposals to introduce consequences for non-delivery of commitments that developers put forward in their Supply Chain Plans, which are approved before they enter the CfD Allocation Round. We are also strengthening the Supply Chain Plan monitoring process to support compliance.
These measures should be seen alongside my Rt. Hon. Friend the Prime Minister’s announcement on £160 million of new funding towards investment to upgrade ports and infrastructure and long-term ambitions to increase renewable energy capacity in the next CfD auction, which, together, will support new UK content, jobs and investment.
[1] https://www.gov.uk/government/consultations/contracts-for-difference-cfd-changes-to-supply-chain-plans-and-the-cfd-contract - Closing date 18th January 2021.
Asked by: Ian Mearns (Labour - Gateshead)
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 has had with the Secretary of State for Transport on regulatory measures in the coastal shipping sector to increase domestic employment in the supply chain roles for (a) offshore wind, (b) decommissioning and (c) Carbon Capture, Utilisation and Storage projects on the UK Continental Shelf.
Answered by Kwasi Kwarteng
I regularly meet my colleagues in the Department for Transport to discuss a wide range of issues, including on how we deliver the aims of the Industrial Strategy.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will review the Crown Estate’s licensing process for offshore wind farms to ensure that (a) employment and (b) port activity in the supply chain is reserved for UK based (i) workers and (ii) ports after the EU transition period expires.
Answered by Kwasi Kwarteng
The Crown Estate is an independent commercial business, created by Act of Parliament, and the Department does not have powers to review their licensing process. However, Ministers and officials of the Department work closely with the Crown Estate to ensure that offshore wind leasing process are consistent with the Government’s renewable ambitions to achieve net zero by 2050 while boosting the UK economy.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make it his policy to amend the Contracts for Difference auction process for offshore wind farm projects on the UK Continental Shelf to weight the process in favour of developers who commit to use Tier 1-3 contractors who employ (a) seafarers and (b) other maritime workers in the domestic supply chain.
Answered by Kwasi Kwarteng
The Government is currently consulting on proposals to strengthen Contracts for Difference (CfD) Supply Chain Plans, to align them more closely with government priorities. We propose to introduce consequences for non-delivery of commitments that developers put forward in their Supply Chain Plans and strengthen the monitoring process to support compliance.
These measures should be seen alongside my Rt. Hon. Friend the Prime Minister’s recent announcement on £160 million of new funding towards investment to upgrade ports and infrastructure to ensure UK ports have the necessary facilities and capabilities to meet the future needs of offshore wind developers. Together with other commitments on offshore wind, this will enable the sector to support up to 60,000 jobs directly and indirectly by 2030 in ports, factories and the supply chains.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make it his policy to amend the Contracts for Difference auction process for offshore wind farm projects on the UK Continental Shelf to weight the process in favour of developers who commit to the exclusive use of UK ports by their Tier 1-3 contractors.
Answered by Kwasi Kwarteng
The Government is currently consulting on proposals to strengthen Contracts for Difference (CfD) Supply Chain Plans, to align them more closely with government priorities. We propose to introduce consequences for non-delivery of commitments that developers put forward in their Supply Chain Plans and strengthen the monitoring process to support compliance.
These measures should be seen alongside my Rt. Hon. Friend the Prime Minister’s recent announcement on £160 million of new funding towards investment to upgrade ports and infrastructure to ensure UK ports have the necessary facilities and capabilities to meet the future needs of offshore wind developers and remain competitive.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, when he plans to launch revised local content methodology for the offshore wind industry; and whether that methodology will apply to supply chain contractors.
Answered by Kwasi Kwarteng
The Offshore Wind Industry committed to updating its UK content methodology and a longer-term move towards increased transparency as part of the Offshore Wind Sector Deal. The industry has committed to reviewing the methodology and they will publish this once agreed.
The methodology applies to every developer, who are obliged to seek UK content data from their suppliers, using the same methodology, for all contracts above £10m.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what plans his Department has to review the (a) weekly income limit, (b) maximum number of qualifying years and (c) other eligibility criteria and limitations on the Statutory Redundancy Pay Scheme.
Answered by Paul Scully
Any employee who is dismissed due to redundancy and who satisfies certain qualifying conditions has a statutory entitlement to a lump sum from their employer, based on their age, length of service and contractual weekly earnings, subject to a statutory upper limit, payable at, or soon after, the dismissal date.
The statutory redundancy scheme is intended to provide a minimum “safety net” of entitlement for vulnerable employees, and the legislation leaves the parties free to negotiate and agree improvements on the statutory entitlement according to their own priorities, needs and circumstances.
We introduced new legislation which commenced on 31 July to ensure that furloughed employees who are subsequently made redundant receive statutory redundancy pay, statutory notice pay, unfair dismissal compensation and pay for short-time working based on the employee’s normal pay, rather than their furlough pay (potentially 80% of their normal wage). The Government has always urged employers to do the right thing and not seek to disadvantage furloughed employees who are facing redundancy.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether his Department has any plans to increase the protections afforded to those who buy gift cards for businesses in cash, in line with those offered through the Chargeback scheme and Consumer Credit Act, in circumstances where businesses enter administration.
Answered by Paul Scully
The Department asked the Law Commission to examine the protection given to consumer prepayments, including gift vouchers, and consider whether such protections should be strengthened. The Law Commission concluded that gift voucher losses were relatively uncommon, and mandatory regulation on gift vouchers in an insolvency context would be disproportionate. Costs arising to businesses from regulation could also be passed on to consumers.
The Government has worked with the industry and consumer groups to publish better guidance for insolvency practitioners on the information that should be made available to consumers when a retailer becomes insolvent.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he is taking to ensure that UK employment law applies to shipping companies contracted to (a) transport, (b) install, (c) construct and (d) maintain offshore wind farms on the UK Continental Shelf.
Answered by Kelly Tolhurst
Workers on offshore windfarms are entitled to the same protections as UK workers, including National Minimum Wage for all their work on the installation, construction and maintenance of the windfarms regardless of nationality or where they ordinarily work.
Workers on UK registered ships are entitled to National Minimum Wage for all their work on the ship wherever it is located, unless they work entirely outside the UK or are not ordinarily resident in the UK. BEIS and the DfT are working together to increase the scope of National Minimum Wage entitlement from those seafarers in internal waters to those working in the territorial sea, an area that extends up to 12 nautical miles from the mean low-water line.
This Government takes minimum wage enforcement seriously and is committed to ensuring all employers pay their workers correctly. We continue to invest heavily in minimum wage enforcement, increasing the budget to over £26 million for 2018/19, up from £13 million in 2015/16. In addition to following up on every worker complaint received, HMRC undertake proactive investigations and conduct awareness raising activities amongst both employers and workers. Last year, HMRC identified record arrears of £15.6 million, for over 200,000 workers.