Climate Change

Jim Shannon Excerpts

Monday 24th June 2019 Commons Chamber

[Chris Skidmore]

I thank my hon. Friend for making that excellent point, and he is right. When we consider any impact on wider society of introducing this legislation over the next few decades, while we may see short-term costs from the transformation, we need to look at the investment opportunities that will be created by new green jobs, which are expected to rise from the 400,000 figure he mentions to 2 million by 2030, potentially creating an economy worth over £150 billion in the longer term. It is important that that investment is recognised, because we want the UK to lead the world in future technologies such as carbon capture and storage. The legislation today provides a catalytic moment for us to look at how we can achieve this target and to invest for the future. The Treasury review will lead into the spending review and we will wish to look at how we can continue to invest in clean growth as a technology.

[Jim Shannon (Strangford) (DUP)]

I congratulate the Government on bringing this proposal forward and assure him of my party’s support. I want to put that on record today. This issue is a topic of conversation every day in my office: it has become that sort of issue. Will the Minister outline how he intends to bring businesses along on the climate change agenda and ensure that they are encouraged, rather than forced, to make small changes that could make lasting changes globally? It would be great to bring small businesses along, as it would be a step in the right direction.

[Chris Skidmore]

I thank the hon. Gentleman for his leadership on the issue. We have had several conversations in the past few weeks on the legislation, but he is right that we have to take a whole of the United Kingdom approach to this. I know that it is more difficult for certain industries to make the changes that are needed, but for small businesses and those groups that we know will have questions or difficulties in making the transition, we will want to be able to set that out clearly. The energy White Paper will be published shortly, as the first in a series of documents to demonstrate the changes and consultations that we need. I reassure the hon. Gentleman that those consultations will allow the voice of small business to be heard in this debate. It is possible to achieve the changes, and we want to make sure that small businesses feel reassured of that.

Smart Cities

Jim Shannon Excerpts

Monday 24th June 2019 Commons Chamber

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

The inspiration for this debate came from my visit to the mid-west USA last month with a cross-party delegation of MPs from the British-American parliamentary group. I admit to having been a bit of a technophobe prior to the delegation, and I still am a bit of a dinosaur when it comes to technology.

I thought 5G was about higher speeds—that was my understanding of what we should expect. However, it appears from our learning on the visit that there is so much more to 5G and to smart cities than just higher speeds. It is actually about transformative technology and its ability to connect not just people but things—5G is designed to increase connectivity. We are talking about smarter motorways, smarter factories, smarter homes and smarter cities, and I would like to see capacity for smarter towns, smarter villages and smarter rural areas, because connectivity must be inclusive across the whole United Kingdom and across all areas.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Lady on securing this debate. Smart cities is a wonderful programme, with Belfast leading the way in smart city urban innovation. Does she agree it is imperative that we share good practice and information throughout the United Kingdom of Great Britain and Northern Ireland to ensure that the UK, as a whole, is able safely and effectively to make the most of technology and to ensure that we are not at cyber-war with each other within the UK, at the expense of lost opportunities for everyone?

[Dr Cameron]

I thank the hon. Gentleman for making that important point. It is important that smart technology is used and regulated appropriately, and that communities buy into the technology so that they can benefit collectively, rather than be in opposition to and competition with each other. The hon. Gentleman’s point is well made and I hope the Minister will reflect on it in his speech, because it is important that all areas benefit from this new smart technology. In my constituency, we are looking at redeveloping our new town, which was built after the second world war; it was new and shiny then, and it improved our lives and wellbeing dramatically. We are looking to develop smart technology and for us to have smart, sustainable East Kilbride moving forward.

With 5G, people will be able to control their home and car—everything—from a single device. I had always thought that autonomous vehicles were a bit pie in the sky, but having spoken to the technology leaders in the mid-west and internationally during the visit I know that this technology is already on the showroom floor and is now just being refined. So this is going to be happening. Autonomous vehicles—electric vehicles—can improve climate emissions, tackling CO₂ , and reduce congestion, because we may be less likely to own vehicles in the future. We may have a share in these robot vehicles rather than own them, and they may come to our homes, take us where we want to go and then move on to the next person’s home and take them where they want to go. It will be like a robot taxi—that is how I would think of it. This would mean less congestion in our cities, because we will not all have to have cars and we might not all be travelling at the same time. Less car parking would be required in cities and in high streets, and we hope there would be a consumer benefit in terms of less cost. One question to the Minister is about consumer benefits and costs in the future, and how we make this beneficial for consumers.

Toyota is designing multifunctional vehicles, able to serve as not only a taxi but a hospital shuttle, delivery van or mobile co-working space. I therefore ask the Minister to ensure that determinations in this regard are fully inclusive and adaptable for those with special needs and disabilities. I chair the all-party group on disability, and I was thinking about the impact of these vehicles on the Motability scheme; it will be essential to ensure that vehicles can be adapted for wheelchairs and for people with special needs.

Space10 is the innovation hub run by IKEA and I understand it is piloting autonomous healthcare vehicles, which bring medical equipment and professionals to people’s doorsteps. I was reading in The Times today that 5G can enable hospital specialists to make a diagnosis remotely while patients are still in the ambulance, as faster connections can allow paramedics to perform ultrasound scans as clinicians watch live; it is happening in the ambulance and guidance can be offered on what to do through robotic gloves. This technology would boost survival rates by allowing more timeous diagnosis, reducing diversions to other hospitals. What often happens is that the initial diagnosis may change when the patient reaches the hospital and they then have to go to a different specialist hospital. This technology should the reduce the rate of those misdiagnoses and improve morbidity rates for patients, who will be able to get to surgery much faster.

We will therefore have to look ahead and alter our training—of paramedics, health professionals, doctors, surgeons, nurses and so on—to ensure that we capitalise on this technology. A whole-government approach will be needed. I do not expect the Minister to answer all those questions tonight, but it would be useful to find out how this is going to be co-ordinated in the future.

[Jim Shannon]

The hon. Lady is right about co-ordination, and perhaps the Minister will respond on this issue. It is imperative that the four regions of the United Kingdom of Great Britain and Northern Ireland are part of this, so that Scotland, Northern Ireland, Wales and England are doing this together. Does she feel that when it comes to working on a policy and a strategy it is important that we all feel the benefits?

[Dr Cameron]

Yes, I absolutely think that. It is why, although this debate is on “Smart Cities”, I have placed such an emphasis on all areas of our populations—towns, villages and rural populations, too. That has to be right, both across the United Kingdom and internationally. Specialists in the health aspects I was speaking about can be international specialists from across the world, who are able to lend their expertise through this technology, so that it does not just connect the UK, but instead connects us to the EU—although some in this House are trying to disconnect us, following the vote—and right across the world. That is important to specialists internationally.

Traffic management may be a particular issue that can also be improved—I am sure we would all be glad to hear that—particularly for those who have long journeys in the morning. I see lots of congestion in London when I am travelling to the House of Commons each day.

This technology may get people to the hospitals faster and police to critical incidents much more quickly. Our delegation heard in Chicago about how sensors on lampposts in high-risk areas are sensing gunshots in milliseconds, so that the police and emergency services can get to the area where someone has been harmed, both to apprehend those responsible and to treat those impacted much more quickly. So this technology is also aiding the police and emergency services, and such technology will also be expanded to look at sensors for fire and to respond to other types of difficulty that citizens can get into.

The data can also be used to convict those responsible. On the visit, we asked questions about data security and GDPR—the general data protection regulation. It appears crucial that any and all of these advances must be developed with community participation. That was what really helped this to work in Chicago. There was buy-in from the local community, who had experienced the gun-related deaths, wanted something to be done much more quickly and were then agreeable to the data being collected in this way and used to the community’s benefit. That participation must be at the forefront, with communities on board.

We all need education in this regard, as members of the community and as Members of Parliament and leaders within the community. We therefore need to make sure that our communities are aware of the new technology, understand how it might improve their lives and put in place appropriate consultation about the data usage that can come from it. I ask the Minister for training for MPs in this new technology and its implications for our constituencies, so that we will also then be able to try to improve training locally to make sure that all the agencies that will be affected should be on board and understand how to take this forward for the best benefit.

I also heard about how 5G will also allow technologies such as augmented reality and virtual reality to become commonplace—so “Star Wars” fans may now be able to have their own Princess Leia moment. I even heard, in a local school I was visiting, Duncanrig Secondary School in East Kilbride, that a constituent who is an inventor has sought to bring holograms to children’s reading materials. They may soon be able to speak directly to Harry Potter when they turn the page and, thus, have a much more interactive experience with their reading development.

The delegation heard that 5G had vastly altered infrastructure projects in South Bend. For instance, they were going to spend hundreds of millions of dollars on new sewerage systems, similar to the billions being spent in London for the same reason.

--- Later in debate ---

[Jim Shannon]

It is not just Belfast, but its peripheries: it is my constituency of Strangford; my council area of Ards and North Down; Lisburn and Castlereagh City Council; Mid and East Antrim Borough Council; and Newtownabbey Borough Council. Belfast and its surrounding areas all benefit—that benefit is for everyone.

[Chris Skidmore]

The hon. Gentleman is absolutely right. Setting out the benefits beyond the inner city locations is so crucial. When it comes to dealing with the issues of science and technology, we need to demonstrate the need for smart cities that will improve congestion and public transport.

I have not yet touched on the critical need to make sure that the lives and experiences of disabled people are better met in our cities. As Universities Minister, I am really keen that inclusivity must be mainstreamed. We should not be thinking about disabled people as part of the strategies; they should be at the centre of any strategy. That is the same in a university campus as in an inner-city location or a pedestrianised zone in a shopping centre. Placing the needs of disabled people at the heart of a vision from the very beginning is also critical in the design of smart cities for the future. Any local authority should make sure that it takes those issues of inclusivity absolutely to heart.

I conclude on a point of principle. The Government are committed to spending 2.4% of GDP on research and development—both private and public spend; at the moment, roughly a third of that spend is public and two thirds private. At the moment, we spend 1.7% on research and development. Other countries such as the United States, Germany, South Korea and even China are spending vastly more than us. That allows them to make advances that we must match.

Hitting 2.4% of GDP by 2027—the Government’s target—will just take us to the OECD baseline. We have to be able to make that investment, which would mean increasing the amount we spend on research and development across the public and private sectors from about £35 billion a year to £60 billion. To do that, we must convince SMEs to change their business models and recognise the value of research and development.

For example, we set up a robotics strategy in 2013. We invested about £386 million as a Government in robotics, and we leveraged in private capital of over £1 billion as a result. We need to see how we can increase that leverage; at the moment, the private sector puts in roughly £1.40 for every pound we spend on research and development in areas such as smart cities. In Germany, the figure is nearer £2.40 and in Israel it is about £3. We could be doing more to ensure a greater sum total pot for research and development on smart cities and the technologies that underpin them. However, we have to be able to make that initial public investment.

I have been giving a series of speeches about the road to 2.4%. First, I have covered the critical issue of people—investing in universities and future research leaders. Secondly, I have spoken about international partnerships; I am delighted that the hon. Member for East Kilbride, Strathaven and Lesmahagow took part in the delegation to the United States, setting out the new countries with which we wish to work for the future. Thirdly, I have been focusing on the new technologies such as quantum and robotics—the underpinning of smart cities and a future R&D strategy. My fourth speech on 10 July will be about how we can increase leverage and private investment for the future.

All four speeches relate to the key point of smart cities, which will happen and expand into our regions, towns and villages only if we make the investment in research and development in the longer term. We will need to spend £60 billion across the private and public sectors by 2027. We will need a catalytic moment from the public sector.

As science and technology Minister, I am also determined to ensure that we increase spend on clean and green technology for the future. The debate earlier focused on carbon capture, utilisation and storage. It is the regions that are coming up with some of the great new ideas; on Thursday, I will be going to Cheshire to look at some of the latest technology in that area. We do need to invest publicly as well as trying to increase private investment. The 2.4% figure must be a cornerstone of this Government’s and any future Government’s desire to meet the net zero target by 2050.

I am delighted that the hon. Lady secured this debate. It has highlighted some of the challenges that will lead to huge opportunities if we make that commitment to spending 2.4% on research and development. We can reach out to the whole country. Rather than research being focused in certain cities, we will be able to make sure that everyone in this country can share the proceeds of growth from research and development. We are looking at smart cities, but every town can be a smart town and every village a smart village.

Question put and agreed to.

Bank Holidays in 2020

Jim Shannon Excerpts

Tuesday 18th June 2019 Commons Chamber

[Derek Thomas]

That is the argument I will be making as I remind the House about the incredible event that took place on VE Day and explain why it is absolutely right that we set aside time to celebrate that next year, so that the whole of Great Britain can take part.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for giving way, and if he needs any advice on bonfires in Northern Ireland, we would certainly have lots of information. We do them every 11 July, by the way. I attend one in Newtownards and it is always very well attended. There have been almost 1,000 people there in years gone past. Does he not agree, however, that it is difficult for businesses and even community groups to accept this roll-out of a new bank holiday date? I support the principle of what he is saying, but the proposal is not even for a year’s roll-in. Does he share my dismay at the news of calendar makers losing hundreds of thousands of pounds due to the short roll-in? Does he share my concern at the environmental aspects of the wastage of perfectly good material because the Government, in this case, did not pre-empt the change in the same way as was done with the last change to a bank holiday, which was announced in 1993 for a roll-out in 1995?

[Derek Thomas]

I welcome that intervention, and I would be happy to apply for a Westminster Hall debate with the hon. Gentleman if he chose to speak on that further.

I want to make the point that I am not a fan of the way in which the Government have come to this decision, but it is really important for me, knowing what a great thing it is to remember the sacrifice made by the millions of men, their families and all the people involved in working and fighting for peace in Europe, that we spend a little bit of time remembering the great event that took place when that finally came to an end. For me, seeing the footage of crowds in the streets celebrating this momentous occasion—for them, a bittersweet moment after years of hardship, loss and fear—it is right that we should put aside all else and commemorate and celebrate that day on 8 May next year. I hope that we will be able to re-enact many, if not all, of the activities in our towns and villages. I would not need to go far, as I have a couple of sons in my own home who would be quite happy to tell me how to light fires, which the hon. Member for Strangford (Jim Shannon) mentioned.

As I have said, I have no problem with the decision to move the bank holiday to 8 May. My problem is the cack-handed way in which the Department for Business, Energy and Industrial Strategy went about reaching this decision. I would be interested to hear from the Minister what impact assessment the Department did on the lateness of making such a substantive change to the bank holidays in 2020 before announcing this decision. What was the Department thinking when it decided to give just 11 months’ notice of the cancellation of the early May bank holiday?

--- Later in debate ---

[Andrew Stephenson]

If the hon. Gentleman bears with me, I will come to address that point.

The sentiment of celebrating VE Day is something that everyone in this House would agree with. As well as marking the allies’ great victory in 1945, the bank holiday on Friday 8 May is an opportunity to pay tribute to members of the UK armed forces who have served and continue to serve our country to this day. On this historic occasion, the Government want to ensure as many people as possible have the valuable opportunity to pay a fitting tribute. This is part of a wider package of celebrations the Government have supported, including the commemorations to mark the 75th anniversary of D Day, which recently took place across the UK. The 75th anniversary of VJ Day is also a significant commemoration in its own right and will be marked appropriately.

My hon. Friend has been a consistent champion of the tourism sector, which thrives in his constituency, drawing from his own experience of running a small business. Since his election to this House, he has prioritised supporting small business owners. Having served as a district and parish councillor, he has shown a deep commitment to his local community through his work at Westminster. I recognise that the Government’s decision to move the bank holiday from Monday 4 May to Friday 8 May next year will have an impact on the impressive May Day festival in his constituency, which I believe dates back to 1573.

Tourism has driven development in my hon. Friend’s constituency over the past 150 years and is an essential part of the area’s day-to-day life, impacting significantly on the economic activity of the local community. An estimated 2,850 jobs in St Ives are supported by visitor-related spending and 42% of jobs directly depend on tourism, so I understand the importance of this sector to his local area. These celebrations will have others like them across the country, and reorganising them will be a real challenge. I hope that plans can be adapted during the next 11 months to ensure minimal disruption. I also hope that other events planned may benefit from the change; I particularly hope that the St Ives literary festival, which begins only a day after the VE Day bank holiday next year, will attract even more tourists, due to the long weekend.

As we have heard, there are additional impacts on other specific sectors and planned events throughout the country. As we are moving the bank holiday rather than creating an additional one, we anticipate that the overall cost to business will be relatively low, but I genuinely recognise that the benefits and costs will vary from area to area and from sector to sector.

[Jim Shannon]

In my intervention on the hon. Member for St Ives (Derek Thomas), I referred to the massive £200,000 cost to a calendar business. Does the Minister have an idea of how we can help to compensate that business in some way for its massive loss? That small business cannot absorb that cost.

[Andrew Stephenson]

I think I have read about that example in the newspapers. It is obviously a significant blow to that business and something that I feel is regrettable. I wish the decision could have been made in a more timely fashion and do genuinely appreciate the concerns expressed by firms throughout the country. As I shall say later in my speech, the impact on different sectors of the creation of an additional bank holiday, of which there would be even shorter notice, could have an even bigger impact on our economy and on some businesses. I appreciate some of the concerns expressed about this decision, but we need to strike a balance in our approach to the creation of additional bank holidays.

Let me reflect on some more of the points that my hon. Friend the Member for St Ives made about the importance of small business. First and foremost, we need to ensure that the decisions the Government take reflect the needs of small businesses, because small businesses are the backbone of our economy. In 2018, small and medium-sized enterprises accounted for 60% of UK private sector employment and had a combined annual turnover of £2 trillion. We try to support small businesses through my Department’s industrial strategy, and on an almost weekly basis I meet the Federation of Small Businesses and the British Chambers of Commerce to hear about their concerns and how we can best support them.

In May, the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Rochester and Strood (Kelly Tolhurst), who is responsible for small business, held the first ever small and microbusiness engagement call, to allow the Government to engage with hard-to-reach businesses. The next call will be on Monday, alongside the regularly scheduled SME advisory board meeting.

I appreciate what my hon. Friend the Member for St Ives said about the Department having a tin ear on this issue, but I reassure him that we regularly engage with businesses small, medium and large throughout the country. I have been in post for only two months, but in the past month I visited 22 businesses throughout the UK, from Kent to Derby and up to Burnley—I had to do some visits in Lancashire, Mr Deputy Speaker.

The Government are proceeding rapidly with discussions with the industry to deliver a tourism sector deal. Ten sector deals are currently part of our industrial strategy, and I very much hope that the 11th will be a tourism sector deal, which we hope to launch in the coming weeks. The deal will look to harness the opportunities that the UK has to offer and further boost our tourism sector.

My hon. Friend asked about parents having booked holidays on the date of the original bank holiday, which will now fall as a school term day. As I understand it, it is within the gift of headteachers to grant permission for children to be absent during term time, under exceptional circumstances. Given the rationale behind the moving of the bank holiday, a compelling argument could be made that the circumstances are indeed exceptional.

I accept that the decision will have a negative impact on some people, but moving the bank holiday remains a right and fitting tribute to mark such a watershed moment in our nation’s history.

Net Zero Emissions Target

Jim Shannon Excerpts

Wednesday 12th June 2019 Commons Chamber

[Greg Clark]

I am happy to meet anyone who has a contribution to make, both to reducing our emissions and to achieving technological advances. On the nuclear industry, the hon. Gentleman knows that the financing of new nuclear power stations has been done commercially, and we are reviewing the financing model to see whether a different approach might address some of the difficulties that private sector investors have had in financing the scale of investment required for new nuclear. That review will report soon.

[Jim Shannon (Strangford) (DUP)]

On behalf of the Democratic Unionist party, I welcome the Government’s continuing commitment to deal with this vital issue. It is important that the United Kingdom of Great Britain and Northern Ireland does its bit to safeguard the environment for our children and grandchildren. Will the Secretary of State confirm that other countries are also committed and will do all that they can do to address the issue with equal determination?

[Greg Clark]

I am grateful for what the hon. Gentleman said; I know that he has regular discussions with the Minister for Energy and Clean Growth and is a strong advocate. Northern Ireland is one of the parts of the United Kingdom that has benefited strongly from clean energy and its deployment. We will continue that effort and I am grateful for the hon. Gentleman’s support.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 11th June 2019 Commons Chamber

[Greg Clark]

I am indeed. I set out to my hon. Friend a means by which that can be financed. In our response to the Climate Change Committee’s report, we will be setting out further measures that we can take to accelerate our decarbonisation.

[Jim Shannon (Strangford) (DUP)]

Will the Minister outline what steps her Department has taken to ensure that free ATM services are retained in rural areas?

[Kelly Tolhurst]

Absolutely. Access to free cashpoints is an important part of our high streets and I personally, as a constituency MP, have made representations on that to the banking sector. However, through the post office network, we already have a great deal for offering cashpoints in post offices with the Bank of Ireland. I hope to make sure that Post Office Ltd extends that service. We continue to campaign and talk to the Treasury to make sure that we still offer those cashpoint services.

National Minimum Wage Naming Scheme

Jim Shannon Excerpts

Tuesday 4th June 2019 Commons Chamber

[Kelly Tolhurst]

The hon. Gentleman is a keen campaigner in the area of unpaid work trials. As I have said on many occasions, in most cases, unpaid work trials, if they are not a small trial that is conducive to the work environment, are illegal. On the back of his campaign and work that had been done before, we issued new guidance in December 2018. As I have said, where a worker feels that they have had a detriment, they are to report it to HMRC or ACAS. HMRC will investigate every complaint. We cannot just judge this issue on prosecutions. We need to judge it on where the detriment to the worker is, and then ensure that they get what is owed to them and that the employer is penalised.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for the response that she has given. What discussion has taken place with the Chancellor with regard to help for small businesses who struggle to make the payroll, and have a presence on the high street, in order to provide tax relief or other help so that the local economy is helped and that small businesses can survive and pay a correct and fair wage?

[Kelly Tolhurst]

I thank the hon. Gentleman for raising the issue of small businesses. It is absolutely true that small businesses are the backbone of our economy—99.6% of all UK businesses are small businesses, and is absolutely right that we are able to help them. A key part of that is making sure that, as the small business Minister, I make representations to the Chancellor and across Government on what small businesses need. The work that is being done on the review of naming and shaming is to make sure that when small employers find themselves in breach of the national minimum wage legislation, we are able to give them the right guidance and advice to enable them to meet their obligations. Many small employers want to make sure that they pay the national minimum wage, and above the national minimum wage. It is our duty not only to penalise but to aid and enable small businesses to meet their obligations.

Bombardier

Jim Shannon Excerpts

Tuesday 7th May 2019 Commons Chamber

[Andrew Stephenson]

No, I would respectfully disagree. I think we need to provide certainty for all sectors of our economy. We have seen a range of recent investments in the aerospace sector across the United Kingdom, but we have also seen businesses restructure, as in this business with huge growth potential, as the sector looks to realign itself for the growth potentials in future.

[Jim Shannon (Strangford) (DUP)]

rose—

[Sammy Wilson (East Antrim) (DUP)]

rose—

[Mr Speaker]

What a difficult choice—Strangford against East Antrim. I call Jim Shannon.

[Jim Shannon]

Thank you, Mr Speaker.

I thank the Minister for his reply to these questions. I represent Strangford, as Mr Speaker said and others here will know as well. The factory in Newtownards is part of the Bombardier business, and I want to speak on its behalf. Last year, I had an opportunity to visit the Belfast site in the constituency of my hon. Friend the Member for Belfast East (Gavin Robinson), and to understand its importance and the experience of its skilled workforce. It seems that there are three companies interested in Bombardier. Has the Minister had time to discuss the possibility of a partnership with Airbus, with Airbus owning 50.1% of the shares, thereby cementing the wing technology in the United Kingdom, and 49.9% owned by Bombardier, with voting shares retained by Bombardier? That is very similar to the partnership in the Airbus C Series, now the Airbus A320.

[Mr Speaker]

I do hope that the hon. Gentleman now feels that he has fully ventilated his concerns, at least for now.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 30th April 2019 Commons Chamber

[Kelly Tolhurst]

The hon. Gentleman raises an important point about our high streets. Obviously, the Government play an important part in that respect in making decisions that affect our regions. I would like to reassure him about what we are doing for high streets and the retail sector. With the Retail Sector Council, we are looking at business costs and elements around skills and employment on the high street. We remain committed to making sure that our high streets remain the heart of our communities. I will make sure that I do everything in my capacity as Minister to achieve that.

[Jim Shannon (Strangford) (DUP)]

Can the Minister outline any initiatives that are being considered to offset high street rates to encourage businesses to not only trade online but have a presence in local high streets? Some of my constituents have done that, and they have been quite successful.

[Kelly Tolhurst]

The hon. Gentleman makes an important point with regard to traditional retail and online sales. I have spoken with the likes of Amazon and eBay, and one thing I have been extremely surprised at is that they have worked with small businesses that have started online but then invested in bricks-and-mortar retail outlets. We need to work to make sure we have a mixed economy, and I have outlined the work we are doing with the Retail Sector Council, particularly looking at business rates and other issues.

Post Office Network

Jim Shannon Excerpts

Thursday 25th April 2019 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

On rural communities, which is where the hon. Gentleman and I are coming from on this, should there not be an absolute commitment from this place, and from the Government, to safeguarding and securing what can be seen as the last bastion of social interaction for elderly and vulnerable people in isolated rural communities? The importance of that cannot be underlined enough.

[John Lamont]

The hon. Gentleman makes a critical point. For many communities and small towns across Scotland and the entire United Kingdom, the ability to access cash, financial services and benefits is critical. As banks and cash machines close, there are very often no other alternatives. It is critical that we in this place do something to ensure that people in those communities, including the most vulnerable older people, can continue to access such services, and to ensure that we can sustain our high streets, and shops and businesses in these communities, which are dependent on cash. The post office network is an important part of that. People are clearly using postal services differently, and that trend will inevitably continue, which reinforces the need for the UK Government to continue to monitor and review the sustainability of the network.

I conclude by again congratulating the hon. Member for Motherwell and Wishaw on bringing this important debate.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

I am delighted to speak in this debate and I thank my hon. Friend the Member for Motherwell and Wishaw (Marion Fellows) for securing it. We all understand the value and importance of having post offices in our communities. More than 2 million small businesses—62%—use them at least once a month. In rural areas, they are vital; 36% of rural businesses use post offices weekly. One in four of all businesses are registered in rural areas and contribute well over £200 billion to our economy. Citizens Advice has been clear that eight in 10 small businesses in remote rural areas will lose money if local post offices close.

We all remember around 2008 when post offices were gradually being run down under the Labour Government of the day and when the services our local post offices could provide were wrested away from them, paving the way for mass closures. Long before I was elected in 2015, in 2008, I remember going round the doors in my constituency asking people to sign a petition to save their local post offices. I and other party activists did that in Skelmorlie, Glengarnock and Kilwinning. Naively, we thought we could make a difference. It turned out the Post Office’s so-called consultations were not much more than a sham. To make it worse, our then local Labour MP voted on five separate occasions under the Blair Government to close post offices across the UK and then immediately afterwards put out press releases to the local papers lamenting the closure of our local post offices. Sometimes it is not hard to see why people become cynical about politics.

Some post offices are now being closed by stealth. By that, I mean that postmasters are either retiring or shutting up shop because it has become so difficult to make a living out of the business, important though that business is for our communities. Postmasters in my constituency tell me that they were earning minimum wage. We know from recent announcements that as of October 2019—although I do not know why it is taking so long—our sub-postmasters will receive better remuneration from the Post Office for the key services that they provide for the public. The question is whether that improved payment is enough for the long-term sustainability of the service, and we will have to reserve judgment on that.

Postmasters tell us that they hand count thousands of pounds daily. That money is accepted, checked, double-checked, bagged, remmed out and sent away, for much less money than the banks charge their customers. The gap is large, which means that either banks or the post office are making a lot of money on the back of postmasters. That does not seem fair to me.

Our postmasters are taking on a greater role in our communities as banks abandon our towns. Post offices are an important amenity in our communities and offer a lifeline on everything from pensions to benefits and, increasingly, day-to-day banking services. In so many towns, our post offices are the last place where face-to-face services are still available.

We all understand how important it is that banks properly remunerate postmasters for the services they provide to major banks, which turn over huge profits, and I am pleased that there will be a near-threefold increase on current rates. However, some postmasters in my constituency say this simply does not go far enough, which causes me a lot of concern. Indeed, we are all keen to see if the details of this offer are sufficient to protect our postmasters and, importantly, the network’s sustainability as a whole. I have been lobbying the Government and the Post Office chief executive about this for two years, so I am delighted that we have at last made some progress, but the devil will be in the detail.

I have spoken out about the threat to our post office network in four different debates since I was first elected in 2015—we seem to have them once a year. It is an issue that I campaigned on with Scottish National party activists in my community long before I was elected, and I will continue to do so until our postmasters get the fair deal that they deserve. Our post offices are too important to be left to flounder at the mercy of banks that are apparently too big to fail, and of successive UK Governments who have consistently failed to recognise the importance of post offices to our communities.

[Jim Shannon]

I want to put on record what a very good campaign the Scottish National party and others have run on behalf of the banks that are closing, and the importance of post offices in filling that gap. Over time, their campaign has outlined and highlighted the issue of banks closing at a fast rate, which means that the importance of post offices is increasing. It is so important.

[Patricia Gibson]

I thank the hon. Gentleman for that observation and very much welcome it.

GKN Aerospace, Kings Norton

Jim Shannon Excerpts

Wednesday 24th April 2019 Commons Chamber

[Richard Burden (Birmingham, Northfield) (Lab)]

I am grateful for this opportunity to raise the case of GKN Aerospace in Kings Norton. It is a year to the day since the Business Secretary made a statement to the House to tell us that, while he would not intervene to block Melrose Industries’ hostile takeover bid for GKN last year, we could all take comfort in the legally binding undertakings that the company had given him about the future. Indeed, at the time, Melrose was falling over itself to assure everyone of its commitment to manufacturing in the UK. For example, on 13 March 2018, Melrose’s chief executive Simon Peckham wrote to my hon. Friend the Member for Leeds West (Rachel Reeves), the Chair of the Business, Energy and Industrial Strategy Committee, setting out particularly clearly what the company asked us to believe about its intentions. He said that the company’s commitments included:

“Returning GKN to be a British manufacturing powerhouse—competitive on the global stage. Committed to innovation…Investing in skills, R&D and productivity to support the Industrial Strategy…Working with suppliers and customers to boost Britain’s industrial base and the wider economy.”

On 5 April, just over a year since Mr Peckham wrote that letter, workers at the GKN Aerospace plant at Kings Norton in my constituency were told what these assurances meant for them when GKN’s management announced that the plant is to be run down over the next two years and closed altogether in 2021, with the loss of over 170 jobs. The company says that the work undertaken by the factory will be transferred to

“other GKN Aerospace sites or low cost areas”.

By “low cost areas” we can safely assume that the company means overseas.

[Jim Shannon (Strangford) (DUP)]

Does the hon. Gentleman agree that this breach of faith cannot go unchallenged by this House or by the Minister lest every other big business that reaps the benefits of Government contracts, Government funding and Government subsidy decides that it too can go against its word and move its work to Mexico, Morocco or elsewhere? Shareholders can enjoy the benefits while our own hard-working men and women—the hon. Gentleman is a friend and a hard-working MP—wonder how to keep their homes and feed their families.

[Richard Burden]

The hon. Gentleman is quite right, and I thank him for his kind words. This breach of faith needs to be challenged, and I hope that the Minister will assure us that it is not only Opposition Back Benchers who are challenging the decision and that the Government will do so as well.