Asked by: Jim Fitzpatrick (Labour - Poplar and Limehouse)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to ensure that recalled electrical goods are not offered for sale; and if he will make a statement.
Answered by Andrew Griffiths
Electrical products intended for use by consumers, are regulated under the Electrical Equipment (Safety) Regulations. The Government is clear that when a safety issue is identified in a product already on the market, corrective action should be taken swiftly and with sufficient resource to ensure it is effective.
Retailers, including retailers of second-hand goods, also have a duty to ensure that any products they sell meet the legal safety requirements and are not subject to relevant corrective action.
Asked by: Jim Fitzpatrick (Labour - Poplar and Limehouse)
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 an assessment of the effectiveness of the Consumer Affairs Act 2015 on the regulation of private sales online between private individuals.
Answered by Andrew Griffiths
The Consumer Rights Act provides protection for consumers when buying from traders and does not cover private sales online between private individuals.
The Consumer Green Paper “modernising consumer markets” published on 11 April 2018 consulted on whether the legal framework for consumer-to-consumer transactions remains appropriate to promote consumer confidence. A copy of the Green Paper can be found at: https://www.gov.uk/government/consultations/consumer-green-paper-modernising-consumer-markets.
Asked by: Jim Fitzpatrick (Labour - Poplar and Limehouse)
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 is taking steps to ensure more effective controls on the sale of recalled electrical goods online; and if he will make a statement.
Answered by Andrew Griffiths
Existing safety legislation already applies to on-line sales including sales of second hand electrical goods. Online retailers are responsible for ensuring that their goods meet the legal safety requirements and are not subject to a recall or other corrective action.
The Government recognises the challenge in applying and enforcing legislation to online sales, where consumers can import goods directly from outside the UK. On 21st January 2018 the Government announced the creation of a new Office for Product Safety and Standards which will help the UK to meet the evolving challenges of product safety by responding to the increasing rate of product innovation, the growth in online shopping and expanding international trade.
Asked by: Jim Fitzpatrick (Labour - Poplar and Limehouse)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what guidance his Department has issued to consumers on the identification of sales of (a) second hand and (b) recalled electrical goods.
Answered by Andrew Griffiths
The Government recalls website keeps consumers informed on recalls of all electrical goods and other products. The Government advises consumers to register their electrical appliances, whether new or second-hand, with the manufacturer so they can be informed directly by them should a recall or other corrective action subsequently be required. There is also helpful guidance for consumers on buying second hand electrical goods produced by the Royal Society for the Prevention of Accidents and Electrical Safety First.
Asked by: Jim Fitzpatrick (Labour - Poplar and Limehouse)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of whether cancellation charges incurred by subcontractors and SMEs after 15 January 2018 working on public contracts secured by Carillion will be paid.
Answered by Andrew Griffiths
Goods and services supplied with the Official Receiver’s agreement following the making of the winding up orders against Carillion Plc and its subsidiaries will be paid in full. Any amounts due by the Carillion companies to contractors and suppliers prior to the date of the winding-up orders will be claims in the liquidation and included in the general body of unsecured creditors. Those claims in the liquidation could include incidental costs incurred by subcontractors and others which are a direct consequence of the liquidations.
Asked by: Jim Fitzpatrick (Labour - Poplar and Limehouse)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Secretary of State for Business, Energy and Industrial Strategy, what steps the Government is taking to support SMEs affected by the collapse of Carillion.
Answered by Andrew Griffiths
My rt. hon. friend, the Secretary of State and I are working to ensure information is provided to SMEs in the Carillion supply chain in a timely manner.
The Secretary of State has established the Carillion Taskforce to advise on the impact on small businesses and employees affected by Carillion insolvency. The Taskforce’s attendees included representatives from leading business bodies, the construction trade sector, unions, banks and government. This has already led to useful collaborations, in particular in relation to ensuring firms and employees have access to support from Government and the banks.
I have also met several times with leading business and construction trade bodies, representing Carillion’s sub-contractors, to understand the impact of Carillion’s insolvency on the supply chain, and agree actions that could be taken to mitigate this. It is our intention to continue to meet regularly with this group on an ongoing basis.
Following the Secretary of State and my meeting with the banks on Wednesday 17th January, they made public commitments to provide support to SMEs affected and 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. Details of these can be found at https://www.ukfinance.org.uk/banks-offer-support-to-business-customers-impacted-by-carillion/
On the 3rd February, the Government announced that through the British Business Bank, it will make available support of up to £100m to small businesses, through their delivery partners, using the Enterprise Finance Guarantee (EFG); enabling lenders to extend credit to SMEs which, while viable, may have insufficient security to secure other credit lines to support their businesses at this time. Through this collaboration the UK government and the banks can continue to support small businesses with the appropriate finance.
The Secretary of State has written to all accredited EFG lenders to draw their attention to this additional support, and expects them to ensure that they are actively engaging with SME businesses so they can give them the support they need. Accredited EFG lenders are listed on the British Business Bank website at https://british-business-bank.co.uk/ourpartners/supporting-business-loans-enterprise-finance-guarantee/efg-accredited-lenders/
The Department is providing a range of advice and support services for firms, delivered both nationally and locally available to SMEs affected by the insolvency of Carillion. These include a network of 38 Local Growth Hubs, run in conjunction with the Local Enterprise Partnership, to help businesses of all sizes and in all sectors to access support.
Information is published online by the Insolvency Service for employees, creditors and suppliers affected and seeking advice. In addition to providing current information, they provide a dedicated hotline for enquiries and contact numbers to other relevant organisations such as the Pensions Advisory Service, and the website PwC have been established to provide information. These can be found at: