European Council

Kirsty Blackman Excerpts

Monday 26th March 2018 Commons Chamber

[The Prime Minister]

Yes, I assure my right hon. Friend that we are ensuring that we are preparing for all eventualities.

[Kirsty Blackman (Aberdeen North) (SNP)]

What does the Prime Minister think the effect on GDP will be of the UK leaving the EU?

[The Prime Minister]

Let me say to the hon. Lady what I expect to happen as a result of us leaving the European Union. I believe that we will be able to continue to trade on a very good basis with the countries of the European Union. We will also be able to sign trade deals around the rest of the world. The impact on the GDP of this country is not just about our membership of the European Union, but about the steps that this Government are taking through the modern industrial strategy and other, which is why we see record levels of employment in this country and have seen continuous growth for some period of time.

UK/EU Future Economic Partnership

Kirsty Blackman Excerpts

Monday 5th March 2018 Commons Chamber

[The Prime Minister]

Yes.

[Kirsty Blackman (Aberdeen North) (SNP)]

The Prime Minister finds herself between a rock and a hard place—or perhaps between two brick walls—when she talks about not agreeing with any of the three trade scenarios put forward in the Government analysis. She has plans for a bespoke deal that will not be any of those scenarios, so does she expect GDP to be hit or to increase in her bespoke scenario, and by how much?

[The Prime Minister]

We have said all along that we are looking for a bespoke trade deal with the European Union. We have said all along that that will recognise the integrated nature of the UK’s markets with the EU’s markets at the moment, but also that we will be able to continue to trade around the rest of the world. As for growth, I am pleased to say that growth has actually been up, in recent figures.

Carillion and Public Sector Outsourcing

Kirsty Blackman Excerpts

Wednesday 24th January 2018 Commons Chamber

[Mr Lidington]

The Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Burton (Andrew Griffiths), may be able to say more when he responds to the debate, but that help will involve things such as credit facilities and loans to enable those companies to trade their way through this period of difficulty, particularly until there is greater certainty about what happens to the contracts on which they were engaged.

[Kirsty Blackman (Aberdeen North) (SNP)]

I understand that some subcontracts have not been automatically rescinded as result of the process that is under way, so organisations such as county councils and so on cannot provide a new contract. I would appreciate it if the Minister looked into that.

--- Later in debate ---

[Kirsty Blackman (Aberdeen North) (SNP)]

On behalf of the Scottish National party, I will start by talking about all those affected by the collapse of Carillion, not just those directly employed by it but those who have pensions, having previously been employed by it, those who are subcontractors or are employed by subcontractors and those who are receiving services provided by Carillion that have been stopped overnight and now are being provided by somebody else or by some other vehicle.

I want to talk a bit about what the Scottish Government have done to ensure that in Scotland our constituents and those living around the country receive a continuing service in the aftermath of the collapse of these contracts. The Scottish Government have set up helplines for employees of Carillion and its subcontractors. In addition, Skills Development Scotland is speaking to apprentices concerned about the future of their apprenticeships. The biggest Carillion project in Scotland that we know about, and which the Secretary of State mentioned earlier, is the Aberdeen bypass, on which project Balfour Beatty and Galliford Try are subcontractors. Because of how the contract was written, they are jointly and severally reliable for the delivery of the project, which means that there is no risk to the project and there will be no additional cost to the taxpayer from its continuation. I say that just to reassure my constituents, in particular, who are desperate to see this bypass, which, as many have said many times, is already 40 years too late—but at least we are getting there. We are pleased to hear that that contract will continue, and hopefully those who are working on it in Aberdeen and the surrounding areas will be reassured. It is estimated that the project will generate more than £6 billion of additional income for the north-east: it is a major infrastructure project.

We do, however, feel that serious questions must be asked of the UK Government about the decision to continue awarding contracts to Carillion. The Scottish Government have not awarded it any contracts since the first profit warning was given in July last year. Since the warnings, both the UK and Welsh Governments have agreed contracts with the company. In the days after the first warning, the UK Government awarded contracts worth £2 billion, including the huge High Speed 2 and Ministry of Defence contracts. At the time, the then Transport Secretary said that he hoped Carillion would overcome its problems. He said:

“My wish is that Carillion get through their current problems but we’ve made sure that it’s not an issue for these contracts.”

I hope that that is the case. I hope that people will continue to be paid, and continue to be able to deliver the work.

After the third profit warning, the UK Government’s Education and Skills Funding Agency awarded a £12 million school building contract to Carillion, and the Welsh Government went ahead with a contract for work on two junctions on the A55. The questions that we must ask are these: if rigorous processes were in place, why did Carillion continue to be awarded contracts, and what other firm has continued to be awarded contracts despite not being in a position to deliver on them?

[Luke Graham (Ochil and South Perthshire) (Con)]

I am pleased about some of the measures that the devolved Administrations have taken. If Carillion had been of such concern, however, would not Scottish National party Members have mentioned it more than twice in the last six months of 2017? Moreover, the Scottish Government have put £5.7 billion into 82 projects through Carillion. This should not be a criticism only of the UK Government. The problem exists in all the devolved Administrations, and we must all work together to fix it.

[Kirsty Blackman]

As I have said, the Scottish Government have not awarded any contracts to Carillion since the first profit warning. Yes, the SNP has raised the matter twice in the House. Given that the contracts that have been awarded since the profit warning have not been awarded in Scotland, it is amazing that the SNP is standing up for Members’ constituents throughout the United Kingdom.

Let me say some more about what the Scottish Government are doing and the direction that they have taken, particularly in relation to private sector contracts. They have said that they will use private sector partners only when that is the best way in which to support public services, which is why fewer Carillion contracts have been awarded in Scotland than elsewhere. In 2008, the Scottish Government stated their intention to phase out private contracts relating to, for example, those providing services in hospitals. As a result, all cleaning in NHS hospitals is now carried out by in-house workers. We in Scotland have also announced our intention to build a publicly owned competitor to bid for the ScotRail franchise.

We support the continued use of procurement processes to ensure that the Scottish Government can continue to seek the living wage. We have made it as clear as possible that those who are contracted to provide public services for private companies must pay the living wage, and, wherever possible, the Scottish Government have taken action to ensure that that happens. I hope that the UK Government will follow suit. They talk about what they describe as the national living wage, which people cannot actually live on, but I am talking about the real living wage. To provide that for all public sector workers and all those who are contracted to provide public services would be an incredibly important move, which would help to deal with the wage stagnation that we have seen in recent years.

The hon. Member for Hemsworth (Jon Trickett) mentioned blacklisting. We have argued against it on a number of occasions, both in the House and elsewhere. We have made it clear that it is completely unacceptable. Companies should not engage in the practice, and the Government and other organisations should make that plain to them. They should treat companies that apply for contracts differently if they are proved to have engaged in it.

As I have said, the UK Government need to look at all their contracts. They need to assess the financial stability of all the organisations that provide vital public services, especially those in the private sector.

I cannot believe that the directors of Carillion sat in board meetings looking at the accounts and believed for so long that the company was solvent. I do not understand how the directors could genuinely have believed that, because it is so clear to everyone—now that the profit warnings have been issued, the accounts are being discussed and the company is in liquidation—that the position was totally unsustainable for quite a long time. I do not understand how the position was reached where the directors were not taking their responsibilities seriously, taking decisions and making changes—actually saying to the Government, “Sorry, but we can’t bid for these contracts, because we don’t think we are in a position to deliver.”

The Minister talked about the processes whereby services are outsourced and contracts granted to private sector companies. Whatever the process gone through, it was clearly not rigorous enough. In future, a more rigorous process must be applied. Carillion employs 19,000 people; we think about 1,000 of them are in Scotland. That is a significant employer to collapse. We do not want smaller employers that may not have so many public sector contracts but are in financial difficulties to fall too, in a domino effect. It is incumbent on the Government to check that the private sector companies that have public sector contracts can deliver those contracts, so we do not end up again in a situation where people are scrambling.

[Patrick Grady (Glasgow North) (SNP)]

My hon. Friend makes some important points. Do not the Government need to send a strong signal to public sector bodies that are issuing contracts that best value does not necessarily or always mean the cheapest? The problem is that companies undercut each other because they think that is how to get the contract, and the local authority thinks it has to take the cheapest, rather than the best value that will deliver the best quality service.

[Kirsty Blackman]

I agree. As a local authority councillor, I worked under the best value regime looking at contracts and tenders. I judged them, not just on the best price, but on best value and the quality of service provided, and whether the companies would be able to deliver what they said they would when they tendered for a contract. Something has gone wrong in the system. I do not know if that is because of Tory austerity, which has resulted in a squeeze on contracts in the public sector and a drive to ensure that contracts are awarded to the cheapest bids, rather than those that provide best value. Given the collapse of Carillion, the Government need to look carefully at the reasons behind awarding all those contracts to ensure that this can never happen again.

I see you shoogling in your seat, Madam Deputy Speaker. I will just take another minute. The Public Accounts Committee warned of the risks of contractors paid from the public purse becoming too big to fail; unfortunately, the Government did not heed the warning and continued to award the contracts. I think—I hope—the Minister would agree with me that it is disgraceful that the contracts were awarded and Carillion continued to line the pockets of its shareholders despite not being in a position to fulfil the contracts. Clearly there are major structural issues with the awarding of contracts. I hope that this is the beginning of the UK Government looking seriously at the matter and making proper changes to ensure that these events can never happen again.

[Several hon. Members rose—]

Oral Answers to Questions

Kirsty Blackman Excerpts

Wednesday 22nd November 2017 Commons Chamber

[The Prime Minister]

My hon. Friend raises an important point. He has campaigned strongly on the whole issue of housing, and on homelessness in particular. That approach is already taken by housing associations. As they are non-profit organisations, their surpluses are reinvested in the business, often in the next year. For example, in 2015-16 their investment in new and existing properties was more than double the surpluses they generated.

I recently announced an additional £2 billion of funding for affordable homes, including those for social rent. Last week, housing associations were reclassified to the private sector, taking £70 billion of debt off the country’s balance sheet and meaning greater certainty for housing associations in getting on with the job that my hon. Friend and I both want them to do, which is building more homes.

[Kirsty Blackman (Aberdeen North) (SNP)]

Q3. My thoughts are with my many constituents who have friends and family in Nigeria.The SNP has asked 140 times for the VAT paid by our police and fire services to be scrapped, and for the £140 million to be refunded. The Chancellor said only last month that legally, we would not be able to recover VAT and that the UK Government are now constrained by the VAT rules that are in place. Was he misleading us?

[The Prime Minister]

The SNP may have asked a number of questions, but of course it knew, when it took the decision to create a single police and fire authority, that this would be the VAT treatment.

Oral Answers to Questions

Kirsty Blackman Excerpts

Wednesday 19th July 2017 Commons Chamber

[The Prime Minister]

My hon. Friend is absolutely right. As I have said in this Chamber and elsewhere, we want to avoid a cliff edge for businesses, because people want to know where they stand, and to be able to carry on investing in the UK and creating the jobs that we have seen being created. As I have also said before, once we know—once we have negotiated through this two-year period—what the end-state relationship for the UK and the European Union will be in the future, it will then be necessary to have an implementation period when people can adjust to that new end state that is coming in. There will be some very practical things that need to be done during that period. As part of the negotiations, it will be important for us to agree what that implementation period, or periods, is, and what the arrangements will be during that.

[Kirsty Blackman (Aberdeen North) (SNP)]

Q2. Since Winnie Ewing’s maiden speech 50 years ago this year, SNP MPs and MSPs have been arguing for the voting age to be lowered. In recent elections, young people have proven themselves to be the most knowledgeable and most engaged that they have ever been. I believe there is a majority in this House in favour of lowering the voting age. Will the Prime Minister support giving votes to 16 and 17-year-olds?

[The Prime Minister]

I would say to the hon. Lady that this is one of those issues on which people will obviously have different views. My view has always been and continues to be that 18 is the right age. We expect people to continue in education or training until the age of 18, and I think that is the right point for the voting age.

G20

Kirsty Blackman Excerpts

Monday 10th July 2017 Commons Chamber

[The Prime Minister]

My hon. Friend is absolutely right. The fact that several leaders—not only those whom I have mentioned, but others as well—have expressed their interest in trade deals with the United Kingdom is a vote of confidence in the British people.

[Kirsty Blackman (Aberdeen North) (SNP)]

I would be really interested to know when the Prime Minister expects to sign trade deals with Australia and India, how much she expects those deals to be worth, and how much extra immigration she intends to accept as part of those deals.

[The Prime Minister]

The hon. Lady may know that there is a limit to what we can put in place while we are still a member of the European Union, but that does not mean that we cannot discuss what a future trade agreement might be or how we can improve trade relations now. We can do just that in certain areas that are not covered by EU competences, and those are the discussions that we are having.

Oral Answers to Questions

Kirsty Blackman Excerpts

Wednesday 1st March 2017 Commons Chamber

[Jane Ellison]

As I am sure many hon. Members also know, I am very aware from many of my conversations with businesses—particularly those thinking about their plans for the future, especially since the referendum last year—that they often see competitiveness through the prism of tax and that they want to know the Government are entirely focused on creating the conditions in which businesses can grow and thrive. I really think that all of us need to focus on pursuing our plans to make our respective countries very competitive. In Scotland, the Government have to understand that the decisions they take about using their powers are part of such a package for businesses.

[Kirsty Blackman (Aberdeen North) (SNP)]

The Tories at Westminster are facing rebellion on their Back Benches on business rates. What advice are they taking from the Government in Scotland, who have listened to local businesses and put on a cap of 12.5% for businesses in the hospitality sector and particularly those in Aberdeen that have been hard hit by the oil price?

[Jane Ellison]

I think that is just an attempt to make a political bragging point. My right hon. Friends the Chancellor of the Exchequer and the Secretary of State for Communities and Local Government have made it quite clear that they will have more to say about that. They are listening carefully to the concerns of particularly the smallest businesses and of those hardest hit by business rates in England.

Oral Answers to Questions

Kirsty Blackman Excerpts

Wednesday 18th January 2017 Commons Chamber

[The Prime Minister]

My hon. Friend raises an important issue. I am pleased to say that the Government have already taken some action on executive pay: giving shareholders the power to veto pay policies, forcing companies to disclose the pay of their board directors and introducing tough transparency measures for banks. I want to build on that, which is why we published a Green Paper on how to strengthen shareholders’ influence over executive pay and introduced greater transparency. I look forward to receiving representations from my hon. Friend on this issue.

[Kirsty Blackman (Aberdeen North) (SNP)]

Q2. Will the Prime Minister provide a commitment today that no part of the great repeal Bill will be subject to English votes for English laws?

[The Prime Minister]

The hon. Lady might recognise that the great repeal Bill will deal with a number of complex issues. At its heart will be the repeal of the European Communities Act 1972. As we look at the Bill and at negotiating our way out of the European Union, we will need to look at the whole issue of reserved matters and devolved matters, but there are many aspects—[Interruption.]

Oral Answers to Questions

Kirsty Blackman Excerpts

Wednesday 23rd November 2016 Commons Chamber

[The Prime Minister]

My hon. Friend is trying to tempt me down a particular route. One thing that I will certainly rule out is a second referendum on whether we leave the European Union.

[Kirsty Blackman (Aberdeen North) (SNP)]

Q11. Aberdeen Cyrenians have launched a financial appeal because of the increasing number of people finding themselves homeless as a direct result of the UK Government’s pursuit of austerity. How can the Prime Minister sleep in her warm bed at night knowing that her Government’s policies have consigned people to a cold Christmas?

[The Prime Minister]

The Government are taking action in a variety of ways to address homelessness. One of the key things we need to do is ensure that we see more homes being built in this country. The hon. Lady talks about austerity in the tone that she uses, but austerity is about us living within our means. When we talk about the Government providing support for individuals, we should always remember that taxpayers have to pay for that support, and many taxpayers are themselves struggling to get by.

Oral Answers to Questions

Kirsty Blackman Excerpts

Wednesday 23rd March 2016 Commons Chamber

[Mr Gauke]

My hon. Friend makes an extremely good point. The United Kingdom is able to absorb the shocks of the volatile oil price, and take steps to ensure that our oil and gas sector is as strong as it can be, given the low oil prices.

[Kirsty Blackman (Aberdeen North) (SNP)]

Will the Minister and his Front-Bench colleagues commit to taking action to ensure that companies in the oil and gas sector have appropriate access to finance at this time?

[Mr Gauke]

The Government do all they can to support businesses the length and breadth of the United Kingdom in all sectors. My point is that we are able to take action and support the oil and gas sector because we are the United Kingdom. Had Scotland become independent, it would be facing a very substantial loss of revenue and have great difficulties absorbing that.