Office for Product Safety and Standards

Jim Shannon Excerpts

Wednesday 9th May 2018 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

As always, it is a pleasure to speak in a Westminster Hall debate, Sir David. I congratulate the hon. Member for Swansea East (Carolyn Harris), who always speaks with a real passion and belief in what she says. I commend her for that. I always look forward to debates that she is involved in. It is because of her that we have this debate and are able to speak in it, so I thank her for that. I also thank all the hon. Members who have made contributions and the Front-Bench spokespersons for the Scottish National party and for the Labour party who will speak later. I believe their contributions will be significant as well. I am sure that the Minister, who is taking notes, will take on board Members’ questions and concerns, and I hope that we can obtain some reassurance from him as to how things stand.

I received a briefing from Electrical Safety First, a charity dedicated to reducing the number of deaths, injuries and fires from domestic electrical accidents, and I commend it and fully support it. We should note its recommendations, and the hard work that the charity does. Over the years I have debated this topic, including in Adjournment debates in the main Chamber with the hon. Member for Hammersmith (Andy Slaughter), among others, and it keeps coming back. That is because there seem to be continual problems with electrical safety. Electricity causes more than 20,000 house fires a year; that is almost half of all accidental house fires. Every year in the UK, around 350,000 people are injured through contact with electricity and 70 people are killed.

An example, if anyone needs a reminder, of what electricity can do when it goes wrong, is the Whirlpool case. I spoke in the debate on that matter obtained by the hon. Member for Hammersmith. I remember the debate well, and the issue even better. Afterwards I learned from one of my constituents who had such a dryer that she had been told to stay in and watch the dryer when it was in use. I nearly fell off my chair when I heard that. It is an unusual and strange thing to say: “Don’t watch TV; watch your dryer.”

[Andy Slaughter]

The hon. Gentleman is making a good point. What alerted me to the issue in the first place was a serious tower block fire in Shepherd’s Bush, two years ago, when the victim was watching—she was in the same room as the fire and did everything right, including unplugging it. It still completely destroyed her flat, and Whirlpool would still not change their advice about using the machines, until they were threatened with legal action.

[Jim Shannon]

The hon. Gentleman has been a warrior on these issues and speaks well about them, and what he said illustrates the point. “Watch your dryer”—my goodness, watch it as it burns and the house catches fire. It will be too late then, but that is by the way.

I thought that what was happening was not the way to handle an electrical safety unit, and I am pleased about the setting up of the Office for Product Safety and Standards. There has been no long-term strategy to tackle fires caused by electricity in people’s homes. At present, only the Electrical Fire Safety Week held in November each year—we all go along—exists to provide a concentration of communication to the public from Government. Communication campaigns such as the Home Office’s “Fire Kills” campaign have been under Government review for some time. Perhaps the review is coming to an end; I hope so.

Electrical Safety First believes that Government campaigns on electrical fires must be expanded. There should be more advertising, probably on television, and through councils, and more safety measures should be taken. An average success rate of 20% of products being recovered or repaired means that millions of potentially dangerous products remain in people’s homes. We may not know it but we might have such things in our own homes. The hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones) mentioned phone chargers, and it is an important point: teenagers laugh if their phone charger, or even earphones, catches fire, but those incidents are not reported. Teenagers do not know where to report them, or who to contact. It is easier to buy a new one, which is probably what they do. They discard the old one, without considering why the fire happened. We must realise that someone who falls asleep with their earphones on may not find it so funny. It is definitely not a funny matter.

Clearly, consumers need confidence that the Government are taking appropriate action to protect them, particularly given that five fires a day are caused in the UK by white goods alone, and in view of the dangers posed by counterfeit electrical goods. In her opening remarks the hon. Member for Swansea East made many good points, but the one I want to reiterate is the rise in the number of people buying online. It continues to be a problem, and it is frustrating because the attraction is price, and customers do not see the safety issue. Is the safety perfect? No, it is not. Is there a safety-conscious attitude? No—or rather, as that is not fair, not in every case.

A big issue, which must be addressed, is the need to look at authenticity and proof of origin. I completely agree that an action plan must be developed, and backed up with an enforcement operation strategy to target the growing problems. Consumers are being put at risk by inaccurate and misleading advertising of electrical goods, as other hon. Members have mentioned. Products claimed to be genuine often contain counterfeit or substandard components. They might look good, but that does not always mean that they are. That has a significant impact on consumer safety, creating a culture of acceptability in selling counterfeit electrical goods online. It undermines legitimate UK business—those who are doing it right. What does the Minister think can be done further to address that issue?

We live in a technologically driven world that is over-reliant on technology. We depend on such things in our lives. We test-drive cars and research the safety of vehicles in crashes, but we do not do the same for electrical goods that we use in our homes. We must, through the new office and today’s debate, send the message that it is important for people to safety-check everything in their homes, and that they can have recourse to a way to report defective goods. That must be done not simply to complain—that is not what it is about—but for the safety of others in the future. That is the motivation of every hon. Member who has spoken in the debate. We look to the Minister, as we always do, for a satisfactory response.

[Sir David Amess (in the Chair)]

Order. I commend colleagues on their excellent timekeeping, which is an example to others and has resulted in plenty of time being left for the Opposition spokesmen and, particularly, for the Minister.

Shop Direct (Greater Manchester)

Jim Shannon Excerpts

Tuesday 1st May 2018 Commons Chamber

[Debbie Abrahams]

Absolutely. The irony is not lost on me, and I will come on to that.

What was so disappointing was the failure of Shop Direct to engage with anyone. As Shop Direct directors revealed on the morning of this announcement, this move has been planned for more than 18 months, and during that time there have been no discussions with staff, USDAW, Oldham Council, my colleagues and me or the Greater Manchester Mayor, Andy Burnham.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Lady on bringing this issue to the House for consideration. Does she agree that it is time the Government began to intervene to encourage big businesses to remain in situ, especially considering that profits appear in this case to be 14.6% on the back of 15.9% growth in 2016 and 17.4% growth in 2015? Businesses must understand that they have a duty of care to employees, which does not appear to have been met in this case. It is not all about making profit; it is about looking after the employees.

Industrial Strategy

Jim Shannon Excerpts

Wednesday 18th April 2018 Commons Chamber

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

I welcome today’s debate because the UK Government’s industrial strategy is hugely significant and could be transformational for all parts of the United Kingdom. It is fair to say that the industrial strategy has been welcomed by a huge variety of organisations, including organisations that are not common bedfellows. The CBI is positive about the strategy and the TUC calls it “an important step forward.”

There is cross-sector acknowledgement that the industrial strategy is a serious piece of work that is genuinely trying to identify and address the challenges that our economy will face in the next few years. It is the role of Government to support and develop industry and to pursue economic growth, and I am broadly in favour of the non-interventionist but highly engaged approach. With this industrial strategy, we have gone right back to basic principles, and the UK Government have identified five foundations that are essential for a successful economy. These five foundations show how in Scotland the industrial strategy will need to be implemented by both the UK and Scottish Governments. Devolved government has control over significant parts of the five foundations, including skills, transport and housing. I am pleased that the UK Government understand that point and have repeatedly acknowledged that it is vital to work with the devolved Administrations to implement the industrial strategy. I hope that the Scottish Government—I note that Scottish National party Members are currently absent from the Chamber—are able to accept this commitment at face value and work constructively with their counterparts here at Westminster.

I would like to focus my remarks on what has been identified as the fifth foundation: places. I think we all accept that, to have a productive economy, we need prosperous communities, but what does that mean in practice for the United Kingdom? The industrial strategy identifies four challenges that need to be addressed to put the UK at the forefront of industries of the future. These are understandably forward-looking, but I do think it omits a current challenge: the dominance of London in the UK’s economic output. I would like to make it clear that the success of our nation’s capital is something of which we should all be proud. London is a truly global city, an economic powerhouse and a cultural masterpiece. Its contribution to the UK goes well beyond the fact that it accounts for 22% of our GDP. We will not drive our economy forward by holding London back, but it remains the case that London dominates our economy in a way that is almost unique.

That matters because it has resulted in an imbalance in our nation’s economy. The domination of London has created a self-perpetuating cycle where new investment flocks to the city because that is where everyone else is. This has created wealth and economic growth, but it has also been centred on the one city.

[Jim Shannon (Strangford) (DUP)]

Northern Ireland has benefited from IT and digital tech industries to such an extent that our region is equal in this to London in the delivery of jobs and opportunities.

[John Lamont]

The hon. Gentleman makes the point well.

As a Scottish MP, I think London’s domination has to change, not because I think Scots look enviously at London, but because rebalancing our economy and spreading power across all parts of the United Kingdom strengthens our bond in that Union. The Conservative manifesto last year pointed out:

“For our civil service and major cultural bodies to claim to be UK institutions, they need to represent and be present across our whole United Kingdom.”

Let us push ahead with the proposal to use Brexit as a catalyst to create more civil servant jobs outside London. As we are talking about the industrial strategy, why not, for example, base the Industrial Strategy Council outside London? Let us focus on bringing the economy outside London up to speed. The city deals for Scotland, including the proposed Borderlands growth deal in my area, are part of this, but we need to do more. The industrial strategy represents an opportunity to drive forward the economy of the UK as a whole, and I hope that Scotland’s two Governments can work together with this common aim.

Unconditional University Offers

Jim Shannon Excerpts

Wednesday 28th March 2018 Westminster Hall

[Matt Warman (Boston and Skegness) (Con)]

I beg to move,

That this House has considered unconditional university offers.

It is an honour to serve under your chairmanship, Mrs Moon, for what I hope will be a debate that is both pithy and genuinely important.

I remember being at school when I first heard about unconditional offers. I thought that perhaps some Oxbridge college, then the usual issuer of such things, would be so obviously struck by my talents that an unconditional offer would be a possibility. The prospect of an unconditional offer gave me hope of relief from the pressures of the exams that dominated my life then and that sometimes dominate young people’s lives now. So I hope that hon. Members will not interpret this speech as an attack on unconditional offers per se.

By the way, I pause briefly to add that in so far as Oxbridge was struck by my obvious talents, it was only to suggest that I attend a different university, but perhaps taking my teenage self down a peg or two was the best thing that Oxbridge could have done.

Back then in 1999, and indeed up until last year, the typical student who was made an unconditional offer was still predicted three As—by the way, I was not predicted three As—although Oxbridge had abolished unconditional offers earlier. UCAS has reported that 3,000 unconditional offers were made in 2013, and that in 2017 the figure was 50,000. The Department for Education and the Select Committee on Education are therefore right to look at the overall picture, which has seen a quintupling of such applications, according to UCAS, from less than 1% of all offers in the past to more than 5% today. In my own constituency nearly 30% of all applicants received at least one unconditional offer, and those applicants were predicted grades ranging from BBC up to ABB.

This growth in unconditional offers comes not from universities that dominate the top of the league tables but from elsewhere; nor does it come in the subjects for which university entrance is the most hotly contested. Less than 0.1% of all medicine and dentistry students received unconditional offers, compared with nearly 10% of all mass communications and documentations degrees. As a former journalist myself, I would not dare to demean a media studies degree, but given that at one time there were more people studying the media at university than there were actually working in all of it, it is right to ask why universities are seeking to fill their courses in this new way, and whether it is for financial reasons.

[Jim Shannon (Strangford) (DUP)]

First, I congratulate the hon. Gentleman on bringing this matter forward for debate; I spoke to him before the debate, telling him that I would seek to make an intervention. Does he agree that the fact that over 15 times more unconditional offers as in the past have been made to university students in the UK indicates a mindset among universities of focusing on ensuring that they reach their capacity of “bums on seats” rather than on a student’s ability to take a course? Does he agree that some children will go with a course that is less suited to them than other courses as they will know it is in the bag, as it were, and that they will therefore miss out on courses that could have been better for them as an individual?

[Matt Warman]

I agree absolutely with the hon. Gentleman. Indeed, that contrasts sharply with what Universities UK has said in response to the Education Committee:

“Unconditional offers account for a very small proportion of all offers made by universities. It is simply not in the interests of universities to take students without the potential to succeed at university.”

There has clearly been a huge growth in the number of unconditional offers, for some of the reasons that the hon. Gentleman has just mentioned.

Schools have expressed concerns about students across the spectrum of abilities not performing to their full potential in exams, because they are safe in the knowledge that they have already secured a place at university regardless of their grades. Although that can be a welcome safety net for some students, we must balance it with the impacts that it can have on schools and how it affects their exam results overall, for which they are held accountable and against which, of course, they have their own performance measured. This is not a new problem but it has now spread far more widely, as I said earlier.

In my constituency, anecdotal evidence has been cited of students giving up college courses after receiving an unconditional offer, which of course may result in their struggling at university if they have missed fundamental information that they would otherwise have been taught. If we let this development go unchecked, we are letting our young people down at a time when we should be supporting them in preparing for their next step in education. Of course all universities should be able to make unconditional offers, but in doing so they should surely exercise a duty of care to the interests of the prospective student at the same time.

I look forward to hearing the Minister’s views in a moment on what is a complex matter. Some universities, for instance, have reportedly been inducing students to come to them by giving unconditional offers, so long as they are ranked as the student’s first choice. In the competitive landscape that a large number of universities find themselves in, such a tactic could be seen as potentially damaging to students, when other incentives would more typically involve vouchers or computers.

The risk is that a student might end up with a degree from one university when they might have got into another university that is ranked more highly, and that they might end up with worse results in their school exams because they did not need good grades to get to university. It is a vicious circle if things go wrong, and it applies to all subjects rather than simply being about the promotion of the most academic subjects.

I will give an example from my constituency. Already this year, 23 students at Boston Grammar School have received an unconditional offer from at least one university. That is more than a third of the students from the school who have applied to universities for admission through UCAS. If there is a demotivational effect, there is a risk that it will reflect badly both on the school and on the students themselves in later life.

The headmaster of Boston Grammar School, John McHenry, who has helped me to put together this speech, tells me that the school has even seen comments suggesting that universities would “appreciate” it if students completed their studies. He says:

“In other words, it actually won’t make any difference at all if they don’t finish their A-level courses. It’s very difficult to understand how it is possible for universities to permit students onto degree courses without passing examinations, when schools themselves have strict admission criteria relating to A-level courses. How would a ‘free for all’ at A level impact on GCSE results nationally?”

If people drop out of school courses prior to university, or prior to doing anything else, it will compromise both their ability to complete a degree and their CV for the rest of their life. This is a serious issue.

The risks of having the wrong unconditional offers system are obvious: universities struggle to attract the best students for a course, which can lead to those with lower exam results being accepted, but those students then end up struggling further, which in turn holds those children back when they become adults. It compromises the long-term quality of that university course, and schools, too, are punished for declining results. The ramifications of getting this matter wrong are extensive.

Universities are rightly independent of Government, but they are also regulated and subsidised by taxpayers. In this area, as in others, a totally free market may not serve the wider interest. As The Times Educational Supplement has highlighted, some universities have explored making so-called “contextual offers”, whereby lower grades are required of members of certain demographics. Although that seems like part of the solution, that sort of positive discrimination should very much be handled with care. Likewise, courses such as music and art may rightly rely on a portfolio of work rather than purely relying on A-level grades. However, those two things do not explain the situation that we are in.

This debate is ultimately about pupils; it is not about universities or schools, but about the pupils who are going through the system potentially damaging their CVs and job prospects for the rest of their lives. I end by quoting Malcolm Trobe, deputy general secretary of the Association of School and College Leaders:

“Universities need to understand that making unconditional offers to students on the basis of predicted grades is not in the best interests of these young people. It can lead to students being less focused on their A-levels because they feel their university place is in the bag. They then attain a lower grade than they are capable of achieving and this can later become a significant problem for them if a prospective future employer takes A-level grades into account in their selection process. We urge universities not to make unconditional offers on the basis of predicted grades, and advise students against choosing a course on the basis of an unconditional offer and to ensure they find the university and course that best suits them.”

Today I echo that call, and I hope that the Minister will consider reviewing the effect of unconditional offers on the overall education ecosystem.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 13th March 2018 Commons Chamber

[Mr Speaker]

Thank you.

[Jim Shannon (Strangford) (DUP)]

What discussions has the Minister had with the Treasury about the impact of Her Majesty’s Revenue and Customs’ new end-use procedure changes on the gas and oil industry?

[Richard Harrington]

I will give a very succinct answer, as you have requested, Mr Speaker. I do not know, but I will happily meet the hon. Gentleman to discuss it.

DMB Solutions: Liquidation

Jim Shannon Excerpts

Monday 5th March 2018 Commons Chamber

[Caroline Lucas]

I thank the hon. Gentleman for his intervention, and I agree entirely. It is a point to which I will return shortly. As he says, the company must have known six days before it chose to go into liquidation that it was about to do that. I would have thought that to seek tens of thousands of pounds just days before was criminal—I would have thought it was fraud—but we are having great difficulty prosecuting the case.

I want to share one last story from a constituent who told me:

“My partner and I started a project with DMB Solutions in May last year. The project – to rearrange rooms in the loft extension, and create an extension housing a large open plan family room downstairs – was intended to take four weeks and cost about £95,000. We did some research on the company and were unable to find anything concerning. We had seen several boards outside houses and were impressed by the website and by the promises of the design consultant. However, in early January this year, we found ourselves in the position of having an upstairs with no heating, water or Building Control approval, and a downstairs with holes in the ceilings, unattached electrical cables hanging through ceilings, damage to rooms which were outside the scope of works, and a water system which does not provide enough hot water for a bath. We had paid all the money in accordance with the staged payment plan we had signed, so we are £60,000 out of pocket, and our lovely home has been ruined. These events have rocked me to the core and I still cannot quite believe this awful thing has happened to us. In my opinion, DMB Solutions have acted incompetently, immorally and illegally. What I find so distressing is that various bodies and organisations that exist partly to protect the public in these situations seem to have been ineffectual, enabling the company and Directors to continue to operate.”

[Jim Shannon (Strangford) (DUP)]

Today it is DMB Solutions and Brighton Pavilion; tomorrow it will be another company in Edinburgh, Cardiff or Belfast—this is a problem across the whole United Kingdom. Does the hon. Lady agree that it is essential that subcontractors be able to continue with and be paid for work that has been started and that this be a priority for the liquidators, because sometimes small contractors are able to finish the job for a small price?

[Caroline Lucas]

The hon. Gentleman has drawn attention to a very important issue. It is not just individual householders who are suffering; many companies are also suffering, and the smaller ones may face bankruptcy as a result of not being paid by the other companies. The ripple effect of these actions extends very far, and of course it is by no means limited to one part of the country. This is happening in all the nations of the United Kingdom.

My constituent went on to say:

“I understand that Trading Standards and the Federation of Master Builders had been aware of complaints about this company for more than a year. I also understand that DMB Solutions owed…half a million pounds in taxes.

How can it be that they were still allowed to be operating, and taking money from new customers for work that it was likely they had no intention of completing satisfactorily? I am sure that had I personally owed a proportional amount of money in taxes, someone in authority would have been having a stern conversation with me about it.”

I think that my constituent was entirely right.

One of the striking features of the many cases brought to my attention is the fact that—as we heard from the hon. Member for Hove—the office of DMB Solutions was sending out invoices to customers for work yet to be undertaken, right up until a few days before the directors of the company called in the liquidators on 29 December. For example, Mandy Stewart, a teacher, contracted with DMB Solutions last summer to do a loft conversion at her home. Her partner’s daughter and granddaughter were moving in with them, and work began in mid-October. The project was never completed. Mandy was left with a partially finished and uninhabitable loft conversion, damage to her neighbour’s roof, and damage to her ceilings and light fittings because a tarpaulin had been badly fitted by DMB’s workers during wet and windy weather.

Having paid some £41,000 to DMB Solutions, Mandy is now faced with finding further funds to have the work completed. She also needs to pay for inspection by a structural surveyor to ensure that what has been done so far is safe, to engage building control representatives to sign off the work and to have scaffolding re-erected because the previous company took theirs down when they had not been paid by DMB Solutions.

Furthermore, on 21 December, Mandy received an invoice for almost £10,000 for the next stage of the project. It was not actually due until January, but the covering e-mail from DMB Solutions stated that it was being sent early because the DMB offices would be closed during the Christmas break. As by then Mandy had serious concerns about the work that had been done, she did not pay, but, as she says,

“it is extremely hard to believe that the DMB directors did not know that the company was insolvent on 21 December 2017, barely four working days before they called in the administrators.”

From the accounts that I have been given, it is clear that Mandy is far from alone in having been invoiced by DMB Solutions for a large sum of money, by email on or about 21 December, when the directors must have known that the company faced imminent insolvency. In fact, it is clear that the company was signing up new customers as late as mid-December. Charlotte Preston paid £11,000 to DMB Solutions for an extension to her home on 15 December, but no work was ever started. Even more disturbingly, it is clear that disgruntled customers of DMB Solutions were reporting serious concerns about the company to trading standards as far back as early 2016.

According to accounts filed with Companies House on 11 December, by the time the company went into liquidation on 2 January this year, it owed no less than £542,000 to HMRC in unpaid VAT. Indeed, it seems that it may have been trading unlawfully for a considerable time before its collapse. One member of the Facebook victim support group, Andrew Painton, first raised concerns with trading standards that DMB Solutions was trading fraudulently, rather than just incompetently, in March 2017, and has done so many times since then. In January this year, Andrew told me:

“To say that the performance of Trading Standards has been lamentable would, in my view, be over praising them. They could have done so much more to protect the customers who became victims of this company during the latter nine months of 2017.”

He continued:

“In the Autumn of 2017, a fellow member of the Facebook victim support group submitted a Freedom of Information request to Trading Standards, and this revealed the escalating number of complaints in recent years about DMB Solutions. This did galvanise Trading Standards into action…but it was too little too late.”

I recognise, of course, that Ministers are not responsible for the collapse of private sector businesses, but I hope that the Minister will be able to help this evening by providing clarity about what my constituents can do. Specifically, they want to know how to try to obtain financial recompense and how to ensure that the directors of DMB Solutions cannot simply walk away from their debts—both to their unfortunate customers and to the taxpayer—and start all over again by forming a new company. I can find no adequate Government guidance on either of those points. If there is no comfort under existing legal frameworks, perhaps the Minister can point me to the changes that would be required to company law, or any other laws, that would allow my constituents to be recompensed for their suffering.

Since December, the local trading standards office has been collecting evidence from those affected by the collapse of DMB Solutions. It has also advised them to make a complaint to the Action Fraud line, which reports to the National Fraud Intelligence Bureau, based in the City of London police service. Trading standards in Brighton also says that it plans to submit a report to the economic crime unit of Sussex police. However, the Action Fraud line appears to focus on cyber-crime, rather than incompetently run or even unlawfully run building companies, and the House of Commons Library has been emphatic in advising me that there is nothing that trading standards will now be able to do for those of my constituents who have lost out as a result of the collapse of DMB Solutions. The Library tells me that the appropriate body, at least in terms of seeking to get the directors of DMB Solutions disqualified from acting as company directors in future—something my constituents are understandably keen to see happen—is the Insolvency Service.

My office has consulted a local lawyer specialising in consumer rights, who similarly suggested that the Insolvency Service, not trading standards, is the appropriate body for my constituents to complain to about DMB Solutions. However, the Insolvency Service phone line no longer exists, and its website has a small amount of hard-to-find information on it, stating that it can carry out a confidential investigation or pass complaints on to another public body if they are serious enough, and that if it finds anything wrong and has enough evidence it might ask a court to close a company down or disqualify the company’s directors. It might also carry out a criminal investigation if it finds the company has committed an offence.

However, Andrew Painton of the Facebook victim support group tells me that he has twice complained to the Insolvency Service about DMB Solutions, but on each occasion received only a standard response saying that the service was not considering an investigation against the company. Moreover, the Insolvency Service advises that if a company has already gone into administration, into receivership or is being liquidated, complaints need to be directed to the official receiver or insolvency practitioner. I have emailed them myself, but to date have not had a response.

Trading standards—which appears to have done nothing when it had the chance to do so—is now acting as if it is responsible. It is doing so in concert with Action Fraud and the National Fraud Intelligence Bureau, which does not appear to me to have any obvious role in such a situation. My constituents are confused and they need clarity about who is responsible for ensuring enforcement of the law against the directors of DMB Solutions. In short, it is all about as clear as mud.

While I do not, of course, expect the Minister to accept any responsibility for the collapse of DMB Solutions, I do hope he will be able to set out, clearly and authoritatively, which public body or bodies are now responsible for gathering evidence from my constituents and considering what action needs to be taken against the directors of the company. I would also like to know whether the Minister agrees that the Department should do more to ensure that members of the public have access to reliable, accurate information when such problems arise. People need to know which body to turn to, and what they can expect that body to do, first, when they experience such shockingly poor service by a private sector business—as numerous customers of DMB Solutions clearly did for at least a year before the company collapsed—and, secondly, when, as in this case, a business goes into liquidation and the directors apparently disappear.

More particularly, on behalf of my constituents, I would like the Minister to answer the following questions. If the Insolvency Service is responsible, is it good enough to have a few sparse paragraphs of so-called guidance for members of the public hidden away on a corner of its website? I do not think it is. Could there not be a single, well signposted and advertised point of contact—a one-stop shop—for members of the public who fall victim to the poor business practices and eventual collapse of a limited company like DMB Solutions? Is there perhaps a role for the Citizens Advice consumer helpline here? Currently, the helpline appears to refer only to trading standards, but what if trading standards is not the appropriate enforcement body, as we have been told it is not in this case? Could the appropriate enforcement body, whichever it is, be facilitated and resourced to take a more proactive approach to ensuring that, in such a situation, directors of a failed company are disqualified from acting as directors in future if there are grounds for such disqualification?

I appreciate that there are a number of questions, but I greatly look forward to hearing the Minister’s response, not least because many families and individuals in my constituency are depending on it.

UK Research Centre for Ceramics

Jim Shannon Excerpts

Wednesday 21st February 2018 Commons Chamber

[Jack Brereton]

I thank the hon. Gentleman for that point. I agree that there is a need to ensure that our industries are protected, and the Trade Bill and the customs Bill, which he cited, provide an opportunity to do that. I would like to see a continuation of measures that we have seen in the EU—a continuation of those trade remedies that would ensure that the ceramics industry continued to receive those protections.

I wish to set out two key arguments. The first is that a UK research centre for ceramics is a vital addition to global Britain. The second is that, obviously, such a research centre should reside in the global home of ceramics, Stoke-on-Trent. Why do we need a research centre? For thousands of years, ceramics have been valued for their unique properties of durability, strength and resistance to corrosion. Thanks to hundreds of years of technological advances in ceramics manufacture, we now, regrettably, take for granted the affordability and ubiquity of ceramic products.

[Jim Shannon (Strangford) (DUP)]

I asked the hon. Gentleman beforehand whether he would agree to my intervention. Does he agree that there is a need to keep alive the skills and the lessons he referred to, which have been handed down through generations, so as to ensure that those with an interest and desire to learn this beautiful, wonderful ability can access the tools and know-how to do so? Does he further agree that although it is wonderful to have the worldwide web at our fingertips and all the information it holds, there is something to be said for having the clay in your hands and the skills to mould it?

[Jack Brereton]

I thank the hon. Gentleman for that point and I totally agree that it is incredibly important that those skills come through. I have spoken to people from a number of businesses in my constituency, and they need more of those skills coming through, because we have the jobs and opportunities needed to absorb them. It is incredibly important, therefore, that we continue to see those skills coming through, and this research unit is about part of that.

We are all familiar with household ceramic goods, both functional and ornamental, but the ceramics sector is much wider than just the market for household goods. Increasingly, advanced and technical ceramics are being used across the global economy: thermal barrier ceramic coating is used in jet engines; ceramic armour is used in the defence industry; ceramics are used in semiconductors needed in electronics; bio-ceramics are making important advances for the medical sector, in operations and, in particular, prosthetics; solid oxide fuel cells are radically benefiting the energy market; and in the world of digitalisation and virtual reality, the concrete reality of ceramics still reigns, including in digital printing materials. We need to make sure that global Britain leads this industry—that it is our nation and Stoke-on-Trent that harness the power of the 21st century ceramics revolution. Global Britain should not be saddled with a £900 million annual trade deficit in ceramics, given that the products we make are the best in the world.

A UK research centre for ceramics would be a magnet for research, skills and design talent. It would support and expedite the journey from inspiration and early-stage research, right through to fully commercialised products and processes. It would be the go-to place for firms seeking to source and exploit the latest ceramic technologies.

Currently, the UK lacks the R&D infrastructure for seamlessly researching and exploiting the range of novel sintering technologies. That cannot go on. Sintering is the process of using heat or pressure to compact materials such as clay without the risk of liquefaction, which would destroy the material completely. It is a process that has long required a high level of expertise. Now, with advanced sintering—flash sintering—revolutionising the industry’s ability to transform the properties of input materials, and using significantly less energy across the process, we stand at the threshold of a new era of high productivity and exceptionally fine goods.

To be globally competitive, we need to provide the environment to facilitate that process, not least in respect of Stoke-on-Trent’s Lucideon, the development and commercialisation organisation that specialises in materials technologies and processes and is leading the sintering revolution. This is not about picking winners; it is about unlocking the doors for winners to walk through.

Carillion: TUPE

Jim Shannon Excerpts

Wednesday 21st February 2018 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this debate; it is one that I have a particular interest in because of my own constituency and the workers there and across Northern Ireland. First, I congratulate the hon. Member for Wolverhampton South West (Eleanor Smith) on bringing the debate forward, presenting the case, and giving us an opportunity to participate. I thank her for that. It is nice to see the Minister in his place. I spoke to him beforehand. We are looking for substantive responses from him; we are not putting any pressure on him, but we are here to highlight the issues. He knows what the issues are and he knows what we are seeking.

Carillion is undoubtedly one of the biggest shakes in the construction industry in recent years, and yet as one delves deeper one can see that it was not a shock to those in the know but an inevitability. The hon. Member for Cardiff Central (Jo Stevens) said in her intervention that there were two or three warnings along the way. I cannot quite understand why nothing happened. What we are seeking, in as gentle a fashion as possible but with firm determination, is to ensure that those warning signs that were clearly there among some businesses are warning signs that the Government are able to take notice of and do something about.

When we hear about other big businesses—hon. Members will forgive me this, because we are probably all the same; I do not think I am any different from anybody else—and hear the names, we say, “Are they okay? What’s their pension fund like?” Those are the questions we ask automatically, right away. If the pension fund is run down, that should be a warning sign of what is happening. I am not sure what powers the Government have on this, but I would be keen to ensure that they have the power necessary to check pension funds and see whether they are being run down.

When I ran my own business, I quickly learned that a business cannot survive with outstanding invoices. A 30-day pay period was my ultimate rule, and for good reason: if the retailer went bust, I would have a loss of £1,000 for one month, perhaps, but if it went for three months it would be £3,000. When the latest diktat from Carillion advised that 120 days could be an invoice period, something major was wrong.

Although we could and should go into a major investigation into how it all could have happened and how Carillion continued to be awarded Government contracts, that is not my most pressing concern. My most pressing concern, and the subject of this debate, is the workers—those with redundancy or uncertainty looming, a mortgage to pay, a family and children to look after and debts creeping up around them. How will the small businesses survive? My hon. Friend the Member for South Antrim (Paul Girvan), who is not here today but in a meeting of a Committee he is involved with, has a company in his constituency that finds itself in exactly that problem, with very deep troubles.

Carillion, as we know, employed some 43,000 staff worldwide and provided services for schools, prisons and hospitals, which have been well illustrated—we all know what they are—across the United Kingdom of Great Britain and Northern Ireland. Reports suggest that Carillion had over 200 jobs in Northern Ireland, but sometimes we need to look at what that means, because 200 jobs does not mean 200 employees. That is 200 jobs with contractors, with subcontractors and with suppliers. There is a domino effect on many other companies. They are all hanging in the balance, and that is not a balancing act that any of us would want to sit back and watch.

There were many contracts, including repair and heating services for the Northern Ireland Housing Executive and for Power NI. Boy, do I know that there was a period in which the Housing Executive in my constituency and across Northern Ireland was struggling under the burden of uncertainty! Constituents were ringing up about repairs not being carried out and fearing that their long-awaited and desperately needed maintenance work would not be done, disabled adaptations would not be made or unsafe stairs would not be repaired. The list is endless—we all have such issues in our own constituencies.

The latest news is that the Housing Executive is transferring its Carillion contracts to the UK division of ENGIE, a French energy and outsourcing company. That is great, but it begs the question whether the workers who have the contract continue in their employment. There is no doubt in my mind that the answer should be yes. I, along with other MPs and elected representatives across Northern Ireland, raised those concerns and we were fortunate to be given the assurance that ENGIE was the preferred bidder: identified by PwC’s special managers as a specialist in the field. It was appointed following Carillion’s liquidation.

There is good news there again: the existing terms and conditions of the legacy Carillion contracts, including costs and service delivery, will remain. I noticed in the media that ENGIE confirmed that all staff working on the Housing Executive contracts would keep their jobs on the same pay and conditions.

We have had some good fortune in Northern Ireland, and we are pleased to report that in this debate. That is wonderful for Northern Ireland, but is it happening UK-wide? Perhaps some contributions will indicate that it is not. If it is not, it needs to be. It is time to address this. It must happen UK-wide, and if it does not, we in the House must take the lead. We look to the Minister to give us that reassurance, and I think all Members participating in the debate seek that assurance as well.

It seems to me that in a similar scenario, when the bankers messed up and small businesses paid the price, we did not do the best job in holding those bankers to account. Ensuring that TUPE happens for all existing contracts and contractors will ensure that we step up in the right way for those who are blameless and yet will carry the burden. I always say this—I am sure we are all the same—but my job here is to speak out for the wee man and the wee woman: those who are down there with big business trampling on the backs of their heels and the backs of their necks. That is what we do in the House: we speak out for those people and make sure we can be a voice for them.

There is waiving of fees and extensions of overdrafts, but how long will the banks continue with that without the guidance of this place? Has the Minister had any discussions with the banks on how they can assist and help small businesses? This is a national concern and must be addressed in this place, to stop the little man from drowning in the wake of the cruise liners that have continued to sail on through the storm that they created. We need Government intervention and Government help, and it is important that we receive that assurance today.

Enough is enough. I, for one, have no issue in supporting this motion and the thrust of why we are here today, which is to try to help those who are concerned about their wages, contracts, pensions and all the other things. They are concerned about putting food on the table and looking after their families. The contractors—the men and women who have outlaid money for materials and who have staff to pay and mortgages to pay—are the innocent. They have done no wrong but have been grossly wronged.

We are elected to this place to speak out for what is right and to ensure that we do what is right. At the same time, we ask the Government to ensure that right is done as well. We are called to bring in legislation that benefits our constituents and society as a whole, and that is what the debate represents. While the major players mopping it up in Northern Ireland have confirmed that that is the case, it must also be the case across the whole of the rest of the United Kingdom—in England, Scotland and Wales.

Smart Meters Bill

Jim Shannon Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Monday 5th February 2018 Commons Chamber

[Dr Whitehead]

Like me, the hon. Gentleman sat through many of the evidence sessions during the Committee stage, so he will know that an advanced programme is in place to ensure that SMETS 1 meters are compatible and interoperable, and indeed can work online, to ensure that that problem does not occur. That is a recent development. I agree that if it turns out that many SMETS 1 meters become completely dumb, that might be a problem for the overall roll-out. Perhaps the Minister will have something to say about that later, because it is important that we get this right.

[Jim Shannon (Strangford) (DUP)]

Following on from the previous intervention, does the hon. Gentleman believe that consumers’ concerns about their ability to switch energy suppliers smoothly to keep costs down, and about keeping the system going and keeping providers “on their toes”, are adequately addressed in the Bill, because some people say that they are not?

[Dr Whitehead]

I will come on to talk about how far more SMETS 1 meters have been installed than was ever intended, which was due to various reasons. The hon. Gentleman is certainly right that if a substantial number of installations eventually give rise to non-smooth transfers when people want to switch, that will be deleterious to the roll-out as a whole. Indeed, that is something that needs to be very carefully and urgently addressed so that we ensure that such switchovers can be as smooth as possible.

When we think about the roll-out, we do not need to look very far into the timescale to conclude that, whatever might be said about the numbers already installed, it is not going well. We are more than halfway through the period originally specified for the mass installation of smart meters, but we are far below halfway towards the target of installing smart meters in 30 million homes. In fact, the latest quarterly installation figures show that only 8.6 million domestic and non-domestic meters have been installed to date. That issue has been exacerbated by the transition from SMETS 1 to SMETS 2 meters. SMETS 1 meters were supposed to be essentially proving meters that would have very little role to play in the overall process. However, the DCC—the body required to set up and implement all the communications systems to allow meters to talk to the system—is now two and a half years behind in going live, and is still not really functioning as intended. Millions of SMETS 1 meters have therefore been installed to make up the gap before SMETS 2 meters can come on stream, and we are still in a precarious position with regard to the new meters, because end-to-end testing of them is still not really available. A programme that should by now have seen the installation of a few SMETS 1 meters and millions of SMETS 2 meters now has the opposite position. To be precise, when I asked the head of the DCC how many SMETS 2 meters had been installed, the figure he gave was 250.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 30th January 2018 Commons Chamber

[Andrew Griffiths]

I congratulate my hon. Friend on his tenacity in campaigning on behalf of his residents. Following his representations on the impact of the proposed redundancies, I am happy to confirm that there will be additional flexibility in how the rapid response service can be used. That means that, while there is no additional funding, all workers made redundant from Cleveland Potash will benefit from the same flexibilities for job-focused training as have been made available to ex-SSI and supply chain workers.

[Jim Shannon (Strangford) (DUP)]

T8. In the light of the possible barriers to resolving cross-border insolvencies in the UK post Brexit, what assessment has the Minister made of the need to reform the UK’s corporate insolvency framework to ensure that it is fit for purpose?

[Greg Clark]

We keep the insolvency regulations under constant review, in response both to Brexit and to lessons learned from our experiences domestically. I will work with the hon. Gentleman to make sure that his views are fed in.