:00:00. > :00:00.people, so we can come to a better resolution, so we will conthnue to
:00:00. > :00:00.watch carefully how matters develop, that she can be reassured that we do
:00:07. > :00:09.not accept this is a better way to go forward.
:00:10. > :00:13.I am sorry, demand exceeds supply and we must move on.
:00:14. > :00:23.Urgent question, Gisela Stu`rt. It is to ask the Secretary of State of
:00:24. > :00:26.the legal status of EU nationals residing in the United Kingdom in
:00:27. > :00:33.the event of the United Kingdom leaving the European Union.
:00:34. > :00:39.Thank you very much, Mr Spe`ker EU nationals make an invaluabld
:00:40. > :00:45.contribution to our economy, society and daily lives. They should be
:00:46. > :00:50.assured that, as the Prime Linister and Home Secretary have repdatedly
:00:51. > :00:56.said, there will be no immediate change in their status in the UK.
:00:57. > :01:02.The Prime Minister has been clear that decisions on issues relating to
:01:03. > :01:06.the UK's exit from the EU whll be for a new Prime Minister. I'm
:01:07. > :01:13.therefore not in a position to make new policy announcements thhs
:01:14. > :01:19.afternoon. The discussions that we have with the EU to agree
:01:20. > :01:24.arrangements of the UK's exht will undoubtedly reflect the immdnse
:01:25. > :01:33.contribution made by EU cithzens to our economy, to the NHS, to schools
:01:34. > :01:37.and in so many other ways. But they must also secure the interests of
:01:38. > :01:43.the 1.2 million British cithzens living and working elsewherd in the
:01:44. > :01:47.EU. The Home Secretary was clear yesterday when she said we should
:01:48. > :01:52.seek to guarantee that the rights of both groups are protected, `nd that
:01:53. > :01:57.this is best done through rdciprocal discussions with the EU as part of
:01:58. > :02:00.the negotiations to leave the EU. It has been suggested the government
:02:01. > :02:07.could now fully guarantee ET nationals living in the UK the right
:02:08. > :02:10.to stay. This would be Aaron Wise without a parallel assurancd from
:02:11. > :02:16.European governments. -- thhs would not be wise regarding British
:02:17. > :02:21.nationals living within thehr countries. Such a step might also
:02:22. > :02:26.have the unintended consequdnce of prompting EU immigration to the EU.
:02:27. > :02:30.-- to the UK. We have to have detailed work on this issue and that
:02:31. > :02:36.the new Prime Minister decides the best way forward as quickly as
:02:37. > :02:42.possible. In the meantime, H would like to stress that EU nationals
:02:43. > :02:47.continued to be welcome herd. After macro -- LAUGHTER
:02:48. > :02:53.We have seen some truly a w`rrant hate crimes in the past week or so
:02:54. > :02:57.against EU nationals. We will not stand for these kind of att`cks
:02:58. > :03:04.They must and will be tackldd in the strongest possible terms. ET
:03:05. > :03:10.nationals can have our fool and unreservedly reassurance th`t their
:03:11. > :03:14.right to enter, work, study and live in the UK remains unchanged, but to
:03:15. > :03:20.pre-empt future discussions at this point risks undermining our ability
:03:21. > :03:25.to protect the interests of EU and British citizens alike, and to get
:03:26. > :03:36.the best possible outcome for both. Gisela Stuart. I hit to teach the
:03:37. > :03:40.Minister British organisational and structures, but we are a Cabinet
:03:41. > :03:45.government structure. Irrespective of whether prime ministers decide to
:03:46. > :03:49.leave, the cabinet can still make decisions. Ministers, peopld are not
:03:50. > :03:57.bargaining chips. It is deeply, deeply offensive to assume that this
:03:58. > :04:01.is a country that retrospectively changes the rights of its chtizens.
:04:02. > :04:07.It is their duty of our govdrnment to allow people to live and arrange
:04:08. > :04:12.their lives and make predictions. We have 3 million citizens livhng in
:04:13. > :04:18.this country who are EU cithzens. 1.2 live in the EU at the moment. We
:04:19. > :04:21.have our right to expect from this government, to make clear
:04:22. > :04:26.statements, and the Minister may have read a letter in the Stnday
:04:27. > :04:31.Telegraph we are a whole group of people from members of Parlhament,
:04:32. > :04:40.including the member for Normanton, Pontefract and Castleford, for which
:04:41. > :04:47.an ad Harpenden, such as thd TUC, the British future, they all say it
:04:48. > :04:52.is a duty of this government to say clearly and unequivocally that
:04:53. > :04:56.retrospectively any EU citizen here will maintain and continue the
:04:57. > :05:00.rights they have acquired. @nything else is a failure of governlent to
:05:01. > :05:05.protect its people and the future obligations. The Minister m`y also
:05:06. > :05:09.be aware of the House of Lords is far from happy with the govdrnment
:05:10. > :05:14.position. Can you just do the right thing? And not make people
:05:15. > :05:20.bargaining chips? Not worry about the future, at this moment, say that
:05:21. > :05:26.EU citizens have made an important and valuable contribution. We should
:05:27. > :05:35.know that at human rights and we will now say those who are here will
:05:36. > :05:41.continue to be here. I entirely understand the b`sic
:05:42. > :05:46.premise of the Right Honour`ble Lady's point, seeking to give
:05:47. > :05:50.assurance for EU nationals who are here in the UK as well as British
:05:51. > :05:56.citizens who are within othdr European countries. And on that
:05:57. > :06:01.brought premise, I don't thhnk we are poles apart at all. The question
:06:02. > :06:11.is the manner and ways to achieve that objective. I think it raises a
:06:12. > :06:17.number of complex issues. As she will equally understand, we are
:06:18. > :06:21.talking about, yes, the right to reside, but writes unemploylent to
:06:22. > :06:28.study, entitlements to benefit, access to public services, `s well
:06:29. > :06:32.as joined by family members. It is not, as she seeks to characterise
:06:33. > :06:36.it, in some way viewing people as bargaining chips at all. It is
:06:37. > :06:41.rather to get the best posshble outcome for EU citizens that are
:06:42. > :06:46.here, as well as the 1.2 million but he citizens in the European Union
:06:47. > :06:51.elsewhere. That is the focus of this government. Through the discussions
:06:52. > :06:55.with the European Union, we can get that best possible solution. She can
:06:56. > :07:00.be assured, as well as other EU nationals who are here contributing
:07:01. > :07:04.to our society, that that is absolutely at the forefront of what
:07:05. > :07:11.we are seeking to achieve in terms of negotiations that will follow.
:07:12. > :07:16.Damian Green. Thank you, Mr Speaker. I am sure everyone on all shdes once
:07:17. > :07:23.no disadvantage given to EU scissors and is living in this country ought
:07:24. > :07:32.to UK citizens living in other European countries. -- EU chtizens.
:07:33. > :07:37.Does the Minister, what judgment have you made about the best way to
:07:38. > :07:41.protect the interests of thd more than 1 million British citizens
:07:42. > :07:45.living and in many cases working in other EU countries, so that at the
:07:46. > :07:52.end of this process nobody can be disadvantaged at all? I think that
:07:53. > :07:54.we need to ensure that therd is an overall balance and careful
:07:55. > :08:00.consideration of all these hssues and to view this in the round. That
:08:01. > :08:04.is why it would be mistaken to view this in a narrowly and potentially
:08:05. > :08:09.make statements now that cotld have an impediment on broader discussions
:08:10. > :08:12.in relation to the position of British nationals in other DU
:08:13. > :08:15.countries. That is the right approach to take and precisdly what
:08:16. > :08:23.the prime ministers set out and we need to look at this carefully. Andy
:08:24. > :08:27.Burnham. I declare an interdst, my wife Mike Frantz as a Dutch
:08:28. > :08:34.national, my children are h`lf Dutch. -- my wife married France.
:08:35. > :08:41.This is similar to many famhlies. The EU nationals are fathers,
:08:42. > :08:47.mothers, and Sand uncles of many British children. To leave
:08:48. > :08:50.uncertainty over their future, it undermines family life in otr
:08:51. > :08:55.country, which does not strhke me as a very cry ministerial thing to do,
:08:56. > :08:59.but it is what the Home Secretary did yesterday. She said people who
:09:00. > :09:05.have an established life ye`r would be part of negotiations with
:09:06. > :09:07.Brussels. For people making a huge contribution to subvert -- to
:09:08. > :09:13.society being talked of as ` bargaining chip was insensitive But
:09:14. > :09:17.when she said nobody necess`rily stays for ever, it becomes
:09:18. > :09:20.threatening. I hope she will tell the Home Secretary that my own
:09:21. > :09:26.children would quite like their mum to stay here forever, if th`t is OK
:09:27. > :09:31.with her! In retrospect, do you not accept the Home Secretary's comments
:09:32. > :09:35.were ill judged, and that pdople who made a life year when perfectly
:09:36. > :09:40.legal to do so should not h`ve the right pulled from under thel? And is
:09:41. > :09:44.it entirely in the gift for the UK Government to remove this uncertain
:09:45. > :09:50.to Russia and why isn't the Home Secretary here doing precisdly that
:09:51. > :09:54.rather than by advising her own leadership campaign? -- to remove
:09:55. > :09:59.this uncertainty. It is this government's own decision to make
:10:00. > :10:02.this an issue in negotiations. And by doing so, are be creating
:10:03. > :10:08.conditions for the unwelcomhng climate to continue and risds in
:10:09. > :10:12.xenophobic and racist abuse we have seen? Finally, doesn't be vdry fact
:10:13. > :10:16.we are having to hold this debate illustrates how flawed the
:10:17. > :10:19.referendum campaign was? Didn't people have a right to know the
:10:20. > :10:25.answer to this crucial question before going to vote? Sending any EU
:10:26. > :10:29.nationals home has enormous implications for families, public
:10:30. > :10:36.services, the economy, so why on earth did the government instruct 77
:10:37. > :10:40.is not to carry out any contingency planning on the implications of
:10:41. > :10:46.Brexit? Wasn't that the height of irresponsibility and hasn't it left
:10:47. > :10:49.us with either compass or chart the Conservative Party has reduced the
:10:50. > :10:53.country to chaos and created uncertainty felt in every f`mily.
:10:54. > :10:57.The Home Secretary wants to lead us out of it, she needs couragd to come
:10:58. > :11:00.to this House and clear up her own mess!
:11:01. > :11:07.I have to say that if anythhng is ill-judged sadly I think thd right
:11:08. > :11:11.honourable gentleman's commdnts were ill-judged in the manner, in which
:11:12. > :11:17.he has approached this, his contribution this afternoon. I have
:11:18. > :11:20.been absolutely clear that there is no concept of bargaining chhps or
:11:21. > :11:25.viewing people in that way `t all, and have been clear in terms of the
:11:26. > :11:30.contribution that I see EU citizens make to our country now and in the
:11:31. > :11:35.future too, which is why it will be a part of that negotiation, as we
:11:36. > :11:40.look towards a future, a positive future for our country, outside of
:11:41. > :11:43.the European Union. And acttally, I don't think what would be
:11:44. > :11:49.responsible would be to takd a stance now, that could have an
:11:50. > :11:54.impact on the 1.2 million British citizens who are in countrids
:11:55. > :11:59.outside of the UK. It is not a choice of, it is not a choice of one
:12:00. > :12:06.or the other, it is a questhon of looking at both of them, and getting
:12:07. > :12:09.the best possible outcome for UK citizens in other European
:12:10. > :12:13.countries, as well as assurhng the rights of European citizens who are
:12:14. > :12:18.here, I think it is important that we approach the negotiations in that
:12:19. > :12:23.front, and he, he makes the point about the, the rise in tenshons
:12:24. > :12:27.community tension, a point H know he he made very fairly to to us last
:12:28. > :12:31.week, when my right honourable friend made her statement in
:12:32. > :12:37.relation to hate crime, which I think that we would have colmon
:12:38. > :12:40.cause with in condell, which I do absolutely again today, with the
:12:41. > :12:43.further work that will be bding introduced with the further work
:12:44. > :12:47.round hate crime, the work that police are doing in our comlunities
:12:48. > :12:50.at the moment. Why we do celebrate the work of so many European
:12:51. > :12:55.citizens here if our countrx now, that is why this does need to be
:12:56. > :12:59.part of those discussions and agreements with the European Union,
:13:00. > :13:04.to give that assurance and xes, to get the best possible outcole for
:13:05. > :13:11.them, as well as British citizens abroad.
:13:12. > :13:15.Will my right honourable frhend understand many of us regard the
:13:16. > :13:21.home secretaries's remarks `s wholly inappropriate. Would he also accept
:13:22. > :13:26.that any EU citizen, any EU citizen who currently resides in thd United
:13:27. > :13:30.Kingdom will continue to do so, as he has suggested, but that once the
:13:31. > :13:36.repeal of the European Commtnities Act 1972 has taken place, it will be
:13:37. > :13:41.matter for domestic legislation here at Westminster, to decide in our
:13:42. > :13:46.traditional, fair and reasonable manner, on what basis peopld should
:13:47. > :13:52.remain, having regard to thd interests of UK nationals in other
:13:53. > :13:58.member states. Well, Mr Speaker, I would underline
:13:59. > :14:02.again we are an opening welcoming country and recognise the
:14:03. > :14:06.contribution that recognise the contribution that EU citizens make
:14:07. > :14:12.to our country, our economy, our community, and that is why this must
:14:13. > :14:16.form part of our assessment, our consideration and our negothations
:14:17. > :14:21.and agreement with our European partners making forward. I stress it
:14:22. > :14:25.in those terms very clearly and I hope my right honourable frhend will
:14:26. > :14:29.understand why it needs to be viewed in that broader construct in the
:14:30. > :14:34.best interests of our country and get the best outcome from those
:14:35. > :14:37.discussions. I may briefly start by observing this is one of many
:14:38. > :14:44.questions to which it might have been prudent to have annal `nswer,
:14:45. > :14:49.before the honourable member for Birmingham and her fellow Brexiteers
:14:50. > :14:54.so many of their Tello citizens -- fellow citizens. Citizens. Scotland
:14:55. > :14:57.voted to stay within the European Union and our fellow citizens who
:14:58. > :15:02.were born outside the UK ard now anxious to know what the referendum
:15:03. > :15:10.results mean for them. Not just now, but in the future, and so are EU
:15:11. > :15:14.citizens across the UK, it hs wrong and irresponsible to prevarhcate
:15:15. > :15:18.about this. In launching bid for the leadership of the Tory partx, I the
:15:19. > :15:23.Home Secretary said we will strive to make Britain a country that works
:15:24. > :15:27.for everyone, regardless of who they are, and regardless of wherd they
:15:28. > :15:32.are from. Mr Speaker, actions speak louder than words, why is the Home
:15:33. > :15:36.Secretary not here today, to give the sort of reassurance that one
:15:37. > :15:41.might have expected in the light of that election pitch? What is it
:15:42. > :15:46.what could it be that is more important than her coming to this
:15:47. > :15:49.House, to give that reassur`nce The opening of the Scottish Parliament
:15:50. > :15:54.on Saturday, the First Minister said we are one Scotland, and we are
:15:55. > :16:01.simply home to all of those who have chosen to live here, that is who and
:16:02. > :16:04.what we are. Will the minister reconsider for the First Minister's
:16:05. > :16:08.example and offer that sort of reassurance for the whole of the
:16:09. > :16:13.United Kingdom? If he is not prepared do that, will he clarify
:16:14. > :16:18.today, in what circumstances he thinks it would be appropri`te to
:16:19. > :16:24.remove the rights of EU cithzens already living here? I think she has
:16:25. > :16:28.rightly highlighted there wdre and will be a whole range of issues that
:16:29. > :16:31.will need to be addressed, `nd obviously this is one of thdm, and
:16:32. > :16:35.this was a consequence of the decision to leave the Europdan
:16:36. > :16:39.Union, and was not something that was shied away from, and was clear
:16:40. > :16:44.in advance of the referendul. Referendum. I think she makds the
:16:45. > :16:50.point she does in a very cldar and concise way, to come to her broader
:16:51. > :16:54.point, we want to get to a position where we can tell EU nation`ls who
:16:55. > :16:58.live in the UK that everythhng will be fine, that we can see thdm
:16:59. > :17:01.continuing, so Iry verse thd approach and take it from that stand
:17:02. > :17:06.point, and that I think is the approach we will take as we look
:17:07. > :17:16.towards those negotiations `nd those EU discussion. There will bd a
:17:17. > :17:20.premium on brevity to be exdmplified by the right honourable member. The
:17:21. > :17:24.hyperbole and the statement from benches opposite will do much to
:17:25. > :17:27.frighten EU nationals more than anything has been said from the
:17:28. > :17:35.front bench but there is an urgency in terms of giving a clear lessage
:17:36. > :17:41.on this, EU citizens are among our top, our top surgeon, consultants,
:17:42. > :17:44.anaesthetist, top engineer, top architect, these are people who can
:17:45. > :17:53.work anywhere in the world. And we need to make clear that we want them
:17:54. > :17:57.here and it is part of our dconomy. I certainly recognise the
:17:58. > :18:00.contribution that all of those people that the my right honourable
:18:01. > :18:05.friend has made to our economy, but also as I have said to school, to
:18:06. > :18:09.the Health Service, to so m`ny other parts of our community, I would
:18:10. > :18:13.stress again there is no ch`nge to their status now, we have to
:18:14. > :18:18.approach the discussions and focus on how we get the best posshble
:18:19. > :18:24.outcome for them Azerbaijan our own citizens and that is what wd will
:18:25. > :18:29.do. In, isn't it obvious th`t the forced deportation of millions of EU
:18:30. > :18:34.citizens is something that no sane or fair Government would cob
:18:35. > :18:38.template doing, therefore, given no Government would do it, all we see
:18:39. > :18:42.from the minister is the fact that 2 Home Secretary has an incredible
:18:43. > :18:46.negotiating position in invdrted commas and is causing untold fear
:18:47. > :18:51.and misery for many people hn our country, it is I'm the Government
:18:52. > :18:56.gave clarity on this issue. I am sorry, I entirely reject the
:18:57. > :19:01.analysis that the right honourable gentleman has made. We are, we have
:19:02. > :19:05.been clear on confronting the division in our society, in doing
:19:06. > :19:08.the work and setting out thd best possible outcome for EU cithzens as
:19:09. > :19:12.well as British citizen, th`t is what we will get on with thd job of
:19:13. > :19:15.doing. I was glad to hear a moment ago from one response from the
:19:16. > :19:19.minister, that foreign residents are not to be treated as pawns hn the
:19:20. > :19:24.negotiations but I have to say that wasn't the impression I had from his
:19:25. > :19:29.opening statement. Protecting their rights, it seems to me, is the only
:19:30. > :19:34.ethical position that can now be taken, and what is more, thd longer
:19:35. > :19:39.the uncertainty about this puestion persists, as my right honourable
:19:40. > :19:43.friend the member for Brentwood was pointing out, the greatester the
:19:44. > :19:46.risk of the economic downturn and consequence, the minister h`s been
:19:47. > :19:51.sent to do a holding operathon today, will the minister take back
:19:52. > :19:55.from this the clear message that waiting until September 9th or
:19:56. > :20:04.beyond is simply not a realhstic option and the best thing do now is
:20:05. > :20:07.get on with granting these rights? Well, I note my right honourable
:20:08. > :20:12.friend's contribution and I would reassert again the comments I made
:20:13. > :20:18.about people not being barg`ining chips, we are talking about people's
:20:19. > :20:21.lives and we appreciate, we fully appreciate and recognise thd
:20:22. > :20:24.personal significance this has. I do say to him, though, it is
:20:25. > :20:29.appropriate that we need to look at this in the round, with all of the
:20:30. > :20:32.complexity, autumn of the unintended consequences that might arise from
:20:33. > :20:35.making statements now, how H think it is appropriate to considdr it in
:20:36. > :20:42.that way, and to get the best outcome.
:20:43. > :20:45.Thank you, Mr Unintended consequences in not making `
:20:46. > :20:49.statement now t and allowing this issue to drift. There are children
:20:50. > :20:55.in schools whose parents ard French or Polish who are in tears because
:20:56. > :20:59.they fear they may have to leave. Extremists are exploiting this for
:21:00. > :21:03.go home campaigns and repatriation campaigns, that are vile and the
:21:04. > :21:07.Home Secretary is just giving them succour, he has been sent ott here
:21:08. > :21:11.to waffle, while the Home Sdcretary once again has gone to ground for
:21:12. > :21:15.something she could sort right now, Parliament is sovereign, we could
:21:16. > :21:19.sort this before the recess, why don't we have a motion throtgh this
:21:20. > :21:23.Parliament, that every one of us can sign up to and support, to say we
:21:24. > :21:27.will respect people's rights if they are settled here and contributing to
:21:28. > :21:32.the country already, that is the fair thing to do.
:21:33. > :21:36.I would say to the right honourable lady, that we do have the cdrtainty
:21:37. > :21:42.of knowing there will be be no immediate change and therefore
:21:43. > :21:48.people, people should not bd fearful, or, and equally for others
:21:49. > :21:54.to try to Stoke up anxieties in the way I think has been done bx some
:21:55. > :21:59.contribution, it is important we get this right, and that people can
:22:00. > :22:03.continue in the way they have done now, and again, this process in
:22:04. > :22:07.terms of leaving the EU, is likely to take a number of year, and
:22:08. > :22:12.therefore, there will be no change while we remain a member of the
:22:13. > :22:17.European Union, and people need to have that confidence and certainty
:22:18. > :22:21.in that way, and we will certainly confront any division, any hatred,
:22:22. > :22:25.any racism we see and the police are already taking action on th`t.
:22:26. > :22:32.While I understand the immediate logic of my honourable friend's
:22:33. > :22:38.position, he does need to understand that partners are not going to be in
:22:39. > :22:41.a position to make a reciprocal commitment because there ard 27
:22:42. > :22:44.nations that have to agree hts position. This is an area in which
:22:45. > :22:50.the uncertainty needs to be brought to an end as soon as possible. Since
:22:51. > :22:54.it is inconceivable we would not grant are the speck tick right,
:22:55. > :22:59.frankly shouldn't we get on with it meetly. Represent speck tick rights.
:23:00. > :23:04.He is right in saying that ht is important that we do look at the
:23:05. > :23:08.reciprocal rights and how wd do that at an EU level rather than perhaps
:23:09. > :23:12.individually with individual member state, that is the right approach to
:23:13. > :23:15.take. It is important to vidw it in the round, viewing the role and
:23:16. > :23:22.responsibilities of British citizens who are in other European countries
:23:23. > :23:27.and ensuring the actions we take don't have unintended consepuences
:23:28. > :23:31.for them. Thank you Mr Speaker, I find it hard to comprehend the
:23:32. > :23:35.minister keeps talking about not using EU citizens as bargaining
:23:36. > :23:38.chips but talks as if that hs what is he is going to do. I havd to
:23:39. > :23:43.declare an interest, my husband is German, has been a GP in thhs
:23:44. > :23:46.country for 30 years, and along with others in the community, thdy are
:23:47. > :23:51.anxious, the minister talks about there will be not be an answer for
:23:52. > :23:56.several year, in what way should people feel reassured? We c`used the
:23:57. > :23:59.problem, we should set the dxample and other countries will respond in
:24:00. > :24:04.kind. Just give them the reassurance.
:24:05. > :24:08.I commend and congratulate the contribution the honourable lady's
:24:09. > :24:12.husband has played to the NHS, as so many other EU nationals havd, and
:24:13. > :24:15.again, it is important to underline that where EU nationals havd been
:24:16. > :24:19.exercising treaty rights for a period of five years they are
:24:20. > :24:24.entitled to permanent dense under existing rule, so that is why we
:24:25. > :24:28.need that, I think calm approach to these issues, to underline the
:24:29. > :24:31.existing arrangements that `re there and EU citizens will continte to
:24:32. > :24:34.benefit from, as well as cldarly looking at what the arrangelents
:24:35. > :24:36.will need to be into the future with is where the negotiation has
:24:37. > :24:48.such an essential part. Why don't we just do what this House
:24:49. > :24:55.clearly wants to do, to grant the rights to these people and couldn't
:24:56. > :25:00.that be implemented quickly if we repeeled the 1972 European
:25:01. > :25:04.Communities Act and doesn't my right honourable friend set responsibility
:25:05. > :25:10.for gross negligence in not having any contingency plans? I'm `fraid my
:25:11. > :25:15.honourable friend highlights some solutions and there are significant
:25:16. > :25:20.legal complexities in what he has just outlined and glossed over. I
:25:21. > :25:23.would say to him that there are a range of complex, multifaceted
:25:24. > :25:28.issues that highlight from this I've highlighted some of thdm in
:25:29. > :25:30.terms of things like benefit rights, access to public services,
:25:31. > :25:34.employment rights and others as well. Tgs not as simple as some have
:25:35. > :25:42.set it out to be. It's why we need to work through this care fly get
:25:43. > :25:45.the best outcome -- carefully. There are 36,000 EU passport holddrs,
:25:46. > :25:49.almost one in eight of the population. This week I havd been
:25:50. > :25:52.flooded by people e mailing me about their concerns, about the jobs they
:25:53. > :25:57.do, about the businesses thdy run and indeed about the future of their
:25:58. > :26:01.children's education. Does he not understand that not immediately is
:26:02. > :26:05.simply not good enough? People are making decisions about their lives,
:26:06. > :26:10.their businesses and their children. They need reassurance and they need
:26:11. > :26:16.it now. Of course, I understand the points
:26:17. > :26:20.that she makes very fairly. Clearly, I don't think there are, thdre's
:26:21. > :26:26.much difference between us on actually getting to that objective,
:26:27. > :26:30.which is why I make the point about - which is why I make the point I do
:26:31. > :26:34.about the certainty people have now and working to give that certainty
:26:35. > :26:37.and assurances at EU level. I understand the point fairly that she
:26:38. > :26:42.makes to me, that is precisdly why this needs to be a priority as part
:26:43. > :26:45.of those discussions with otr European partners so there hs
:26:46. > :26:51.certainty for their citizens here as well as our citizens in those member
:26:52. > :26:54.states too. Thank you Mr Speaker. Does the
:26:55. > :26:58.minister agree that we should actually hold ourselves to ` higher
:26:59. > :27:05.moral standard than trading off one group of immigrants against another?
:27:06. > :27:08.Unilaterally we should decl`re a status of EU acquired rights giving
:27:09. > :27:12.people the right to reside here if they've been here for less than five
:27:13. > :27:15.years and advertising to those who've been here longer than five
:27:16. > :27:19.years that they automatically have the right now for permanent
:27:20. > :27:24.residence so as many of thel as possible can avail themselvds of
:27:25. > :27:28.that right. I've already explained the position in relation to
:27:29. > :27:35.permanent residence in response to an earlier question, so those rights
:27:36. > :27:40.are there. Obviously, we will retain and respect all existing rights
:27:41. > :27:45.whilst we remain a member of the European Union until we havd left.
:27:46. > :27:48.He makes a number of points as to the potential solutions, ultimately
:27:49. > :27:55.that will be a matter for the next Prime Minister. Will the minister
:27:56. > :28:00.join me in condemning Lord Pearson who has said, "It is we who hold the
:28:01. > :28:06.stronger hand, if we retali`te, because so many of them - them being
:28:07. > :28:11.EU citizens - are living here." Would he perhaps for two spdcific
:28:12. > :28:16.categories, NHS, where therd are 10,000 doctors, EU doctors who work
:28:17. > :28:20.in the NHS, just under 10% of the staff and indeed, EU students who
:28:21. > :28:23.have just embarked on their studies, can he give either category any
:28:24. > :28:29.guarantees they'll be able to continue? Well, on his first point,
:28:30. > :28:33.I entirely agree with him. Those comments are just simply not
:28:34. > :28:41.acceptable. On his second point yes, we know there are around 5 ,000
:28:42. > :28:48.EU citizens that are working within (inaudible)... Is absolutelx
:28:49. > :28:53.essential. I underline the points about existing EU rights and working
:28:54. > :28:57.towards a position where we can give clarity moving forward. 55,000
:28:58. > :29:02.members of our NHS workforcd qualified elsewhere in the Duropean
:29:03. > :29:07.Union. And 80,000 members of our equally valued care sector. They
:29:08. > :29:11.need security, not just now, but in the long-term. Because the workforce
:29:12. > :29:16.crisis one of the biggest challenges facing the NHS. In addition to
:29:17. > :29:21.welcoming the extraordinary valuable contribution they make to otr health
:29:22. > :29:25.and care sector, would the linister take back the clearest posshble
:29:26. > :29:31.message to this House that we need long-term security now? I'm grateful
:29:32. > :29:35.again to my honourable friend for underlining the contribution that EU
:29:36. > :29:41.and other citizens make to our NHS in providing care, as well `s also
:29:42. > :29:46.in the care sector for our dlderly. Obviously, we want to ensurd that as
:29:47. > :29:50.part of the negotiations th`t there is that assurance that is there
:29:51. > :29:58.that exists now. I stress that again. I do recognise the priority
:29:59. > :30:02.that she has given and which I hear. Mr Speaker, my honourable friend
:30:03. > :30:10.from Birmingham, of course, was leading the campaign that's got us
:30:11. > :30:15.into this mess. Can I take ht up with the minister something he said
:30:16. > :30:19.about the British people living in other European countries. I declare
:30:20. > :30:23.an interest, I'm president of Labour international. We have had lots of
:30:24. > :30:28.people living in Spain and elsewhere, who are very concerned
:30:29. > :30:31.about their future. Can he dnd the uncertainty for those British
:30:32. > :30:35.people, many of whom couldn't vote in the referendum because they'd
:30:36. > :30:39.been abroad longer than 15 xears, that they are not going to be forced
:30:40. > :30:43.out of Spain, France or elsdwhere by the British Government making a
:30:44. > :30:47.quick, early statement of sdcurity for citizens of those countries
:30:48. > :30:51.here? I think the honourabld gentleman makes his point vdry well
:30:52. > :30:56.on the bigger implications `nd the broader issues that we absolutely
:30:57. > :31:00.have to have in making the decisions that we do, I think we need to act
:31:01. > :31:04.with care, consideration and thought to ensure that we are yes,
:31:05. > :31:10.absolutely considering the rights of those who the EU who are here.
:31:11. > :31:13.Equally, the rights of Brithsh citizens overseas who will be
:31:14. > :31:16.feeling uncertain and why wd need to think about both of them in the
:31:17. > :31:22.discussion that's we have. As the right honourable ladx will
:31:23. > :31:24.know, nobody on the official Leave campaign raised the prospect of
:31:25. > :31:28.sending people away and deporting people. This has been raised bit
:31:29. > :31:31.Home Secretary -- by the Hole Secretary and it is a catastrophic
:31:32. > :31:35.error of judgment for someone who wishes to lead this country to even
:31:36. > :31:40.suggest those people who ard here legally, working with familhes and
:31:41. > :31:43.settled, should be even part of the negotiations has made a big error of
:31:44. > :31:50.judgment. That message needs to go back to the Home Secretary today.
:31:51. > :31:53.I'm very sorry, but I think my honourable friend has compldtely
:31:54. > :31:57.mischaracterised what the Home Secretary said. She was merdly
:31:58. > :32:01.saying that people do come `nd go. Some people work here, they then may
:32:02. > :32:05.go back to their home countries Therefore, it is that fluidhty that
:32:06. > :32:10.we see in labour markets and also the movements of people between
:32:11. > :32:14.different countries. It is that I think, she was referring to.
:32:15. > :32:18.Therefore we do want to work to see that the rights of those who are
:32:19. > :32:25.here are guaranteed. That whll form part of those negotiations. Thank
:32:26. > :32:30.you Mr Speaker. The minister's answer to this question seels to be
:32:31. > :32:39.- trust me, it's all in hand. But is it any wonder that the right
:32:40. > :32:44.honourable member for Leigh's family and other families can't trtst the
:32:45. > :32:49.Government given the way thdy've handled the immigration question for
:32:50. > :32:52.years now. Can I ask him whdther he has made representations to his
:32:53. > :33:00.opposite numbers in the French government or Spanish government on
:33:01. > :33:08.this very issue? I do say to the honourable lady that this issue is
:33:09. > :33:11.given great seriousness. It is not about those multilateral
:33:12. > :33:14.negotiations, she talks abott. It's actually getting this right,
:33:15. > :33:17.assessing all the complexithes that I've highlighted in this, in my
:33:18. > :33:21.statement to the House this afternoon. Therefore, that hs the
:33:22. > :33:25.response that I think is appropriate as the Prime Minister has s`id, we
:33:26. > :33:31.need to look at this very c`refully and then for the next Prime Minister
:33:32. > :33:36.to act. Thank you, Mr Speakdr. I must say knowing of the contribution
:33:37. > :33:44.EU nationals make to Torbay, it s welcome to hear a more positive
:33:45. > :33:46.portrayal for their contribttions in this society today, particularly
:33:47. > :33:51.with that which wasn't happdning for a couple of months. Can we reassure
:33:52. > :33:55.them, unless there is a ret`liation in the European Union against
:33:56. > :34:00.British passport holders, wd will guarantee our intention the right of
:34:01. > :34:04.those here no the UK. Well, I do say to my honourable friend and I
:34:05. > :34:09.welcome his comments, we want to make sure that EU nationals, who are
:34:10. > :34:12.already here can stay in Brhtain. But we also, as I've alreadx
:34:13. > :34:16.stressed, need to guarantee the rights of British nationals living
:34:17. > :34:21.in EU member states too and that that needs to be a priority of our
:34:22. > :34:24.negotiation. On exactly that point, can he
:34:25. > :34:28.explain how it can possibly be likely to prejudice the rights of UK
:34:29. > :34:32.nationals in the EU, if we do the right thing, if we do the moral
:34:33. > :34:36.thing, if we uphold the bashc human rights, by extending the rights of
:34:37. > :34:39.EU nationals here? Does he recognise how out of touch he is on this
:34:40. > :34:44.issue. Will he take that back to the Home Secretary on no uncert`in
:34:45. > :34:49.terms? Of course, I underst`nd the point that the honourable l`dy makes
:34:50. > :34:54.on wanting to act. All I wotld say to her is that we need to bd careful
:34:55. > :34:59.on the unintended consequences of things that we do now, up front in
:35:00. > :35:07.terms of other emplay indic`tions. As I've highlighted in ensuring that
:35:08. > :35:11.we get the best possible outcome for those British citizens overseas She
:35:12. > :35:13.and I would both share, I think but it's the difference in how we go
:35:14. > :35:21.about I understand the concerns that have
:35:22. > :35:24.been expressed today. My mother is a Danish national, who has lived in
:35:25. > :35:29.the UK for over 50 years. Mx right honourable friend has set ott there
:35:30. > :35:34.are complexities here. Can he reassure the House this is `n urgent
:35:35. > :35:38.priority and that plans are being developed urgently, not just in the
:35:39. > :35:42.hosts, but by the EU Brexit unit, set up recently by the Primd
:35:43. > :35:46.Minister as well? Yes, I can. My honourable friend makes refdrence to
:35:47. > :35:53.the new unit established. I can certainly say that this is seen as
:35:54. > :35:57.an early item in terms of that work. But is the minister aware that his
:35:58. > :36:00.remarks and the remarks of the Home Secretary have created real
:36:01. > :36:06.insecurity amongst a number of people and what they are now doing
:36:07. > :36:10.is seeking to become British - people who are perfectly qu`lified
:36:11. > :36:15.for British citizenship, he is about to make hundreds of thousands of
:36:16. > :36:20.pounds of profit from those applications. What is he gohng to do
:36:21. > :36:24.right now to cut the cost of becoming British or at least to make
:36:25. > :36:28.it happen more efficiently `nd faster for the many European
:36:29. > :36:33.citizens who will become Brhtish because they're so unsure of their
:36:34. > :36:36.own future? I don't accept that either my comments or the comments
:36:37. > :36:42.of the Home Secretary have hn any way added to is the uncertahnty that
:36:43. > :36:45.she has pointed to. The Prile Minister said very clearly that
:36:46. > :36:49.nothing changes whilst we rdmain a member of the European Union.
:36:50. > :36:56.Obviously, we need to make decisions for the future and that will be for
:36:57. > :36:58.the next Prime Minister. Interestingly, throughout the
:36:59. > :37:02.referendum campaign, the Government didn't indicate what their position
:37:03. > :37:06.would be in relation to this matter. Since the result have demonstrated
:37:07. > :37:10.nothing other than being colpletely unprepared for this and every other
:37:11. > :37:12.issue. EU nationals are part of our communities. Our children share
:37:13. > :37:16.classrooms and friendships with them. The Secretary of Statd for
:37:17. > :37:19.education just stated in an answer in oral questions, before this
:37:20. > :37:22.session, that she believes that EU nationals and their children should
:37:23. > :37:28.be allowed to remain in this country. Does the minister `gree
:37:29. > :37:34.with his colleague? As I've already indicated in response to other
:37:35. > :37:38.answers, I believe that we do need to work to secure the peopld who are
:37:39. > :37:43.here can stay in the UK. Th`t's what I've already said. But it ndeds to
:37:44. > :37:49.be part of those negotiations to secure that. That is the very clear
:37:50. > :37:51.point that I make is that that is part of those discussions as well as
:37:52. > :37:59.the position of British nathonals overseas. His statement tod`y
:38:00. > :38:02.condemning large numbers of my constituents married to fordign
:38:03. > :38:07.nationals or expecting children are foreign nationals or are employed in
:38:08. > :38:10.factories here and abroad whth foreign nationals great uncdrtainty.
:38:11. > :38:14.If he's not going to accept the will of this House today, could he give a
:38:15. > :38:18.clearer indication of - it's just a matter of the next Prime Minister -
:38:19. > :38:22.and what the time scale is The right honourable gentleman will know that
:38:23. > :38:26.there are a number of issues that flow through from the decishon that
:38:27. > :38:33.has been made for the UK to leave the European Union. And this is but
:38:34. > :38:39.one of them. I do entirely recognise the points that have been m`de by
:38:40. > :38:43.him and others. But it is how we are able to get the best outcomd for
:38:44. > :38:47.European citizens here, but also British nationals overseas.
:38:48. > :38:52.Therefore, that is part of the detailed, considered work. @s I ve
:38:53. > :38:59.indicated, this is certainlx a priority aspect of that.
:39:00. > :39:07.What does the minister say to my constituent who was one of the some
:39:08. > :39:11.183 EU nationals up to last week, in fulltime education in Scotl`nd and
:39:12. > :39:16.has two years of study to g`in her degree. What pre-Brexit leg`l advice
:39:17. > :39:21.was sought by the UK Governlent and will he share that advice so I can
:39:22. > :39:26.best advise my constituent on how to be safe and secure for her studies
:39:27. > :39:30.in the UK? I said at the outset that I wish her well with her sttdies
:39:31. > :39:36.that. Should continue. She should have no fears in relation to the
:39:37. > :39:41.current situation. We don't share legal advice. That is a well founded
:39:42. > :39:49.position of many Governments over the years. But I do want to give
:39:50. > :39:53.that sense of assurance that nothing changes now. It is a process that
:39:54. > :39:55.could take a number of years, there foreI wish her well with her studies
:39:56. > :40:03.in Scotland. Thank you regarding this qudstion,
:40:04. > :40:08.though it is bizarre to see the Brexiteers the on both sides weeping
:40:09. > :40:13.crocodile tears. What am I to tell the 15% of my constituents who are
:40:14. > :40:19.EU national, hundreds of whom have written to me to express thdir
:40:20. > :40:23.dedismay or giving the racist attacks, fear. Many are thinking of
:40:24. > :40:28.going to another country, if they do, it will be we, not they who can
:40:29. > :40:36.are the poorer for that. We need, we need certainty, and we need it now.
:40:37. > :40:42.Well, I utterly condemn any attacks on any citizens in this country as a
:40:43. > :40:46.consequence of nationality, faith, creed, colour, that is completely
:40:47. > :40:51.unacceptable, does not reprdsent the country that I believe in, or this
:40:52. > :40:56.Government believes in, and I think this House has unequivocallx
:40:57. > :41:00.condemned those sorts of action I know there have been ministdrial
:41:01. > :41:04.visits to the Polish centre and I recognise the points he makds,
:41:05. > :41:07.clearly, there is nothing that changes now, it is for thosd
:41:08. > :41:12.negotiations to give that ultimate certainty, but we want to ensure
:41:13. > :41:17.that the UK remains an open, attractive place for people to come,
:41:18. > :41:24.live, work, and study, and that is the approach that for my part, I
:41:25. > :41:29.will continue to advocate. In the grace. Absence of thd Home
:41:30. > :41:38.Secretary, can the minister offer any reassurance beyond not
:41:39. > :41:41.immediately to my constituents, that her long-term future cannot be
:41:42. > :41:44.guaranteed. More gain came to Scotland in good fate. She built a
:41:45. > :41:50.life here and is contributing to Scottish society. Surely colmon
:41:51. > :41:56.decency dictates she and millions like her deserve guarantees of their
:41:57. > :42:00.long-term security. Of course, I understand the point
:42:01. > :42:04.the honourable gentleman make, and the assurance he seeks, nothing does
:42:05. > :42:07.change immediately, as the Prime Minister has been very clear on and
:42:08. > :42:11.I certainly do want us to gdt to a position where we are able to ensure
:42:12. > :42:15.that EU nationals who are already here can stay in Britain, btt that
:42:16. > :42:22.needs to be part of that negotiation.
:42:23. > :42:25.Yesterday I was stopped in the street by a constituent, an EU
:42:26. > :42:29.national whose children werd born here they were, the family `re from
:42:30. > :42:33.Denmark but the children do not speak a word of Danish, the older
:42:34. > :42:36.child is due to start school next term, does the minister unddrstand
:42:37. > :42:39.that the Government has an obligation to the best interests and
:42:40. > :42:46.welfare of children, and th`t this uncertainty is putting their parents
:42:47. > :42:50.in an impossible position. Well of course I do understand, as H have
:42:51. > :42:54.responded to other questions this afternoon, of the position that we
:42:55. > :43:01.are now faced with, as a consequence of the UK having made the ddcision
:43:02. > :43:05.to leave the EU, as I have have indicated there are no immediate
:43:06. > :43:09.changes that would happen while we remain an EU member state, clearly
:43:10. > :43:13.want want to be in a position to give the sort of guarantees her
:43:14. > :43:16.constituent seeks and that will be a core part of the negotiations that
:43:17. > :43:21.will follow. Thank you. In a written
:43:22. > :43:25.Parliamentary question in J`nuary I asked the home sec from I to outline
:43:26. > :43:30.the plans her department was making in the event of a leave votd. The
:43:31. > :43:34.minister replied and give no assurance, isn't it clear on
:43:35. > :43:39.thissish sue as with every other question thrown up by a leave vote,
:43:40. > :43:42.the Government has done no planning, the consequence is people are making
:43:43. > :43:45.decisions ability their education, about their jobs and their families,
:43:46. > :43:48.have no assurances whatsoevdr from the Government, isn't the mhnister
:43:49. > :43:52.ashamed of that position and doesn't it reflect the Cavalier approach of
:43:53. > :43:58.this Government since it was elected last year? No, I do not sop that
:43:59. > :44:04.characterisation that the honourable gentleman seeks to proffer. I would
:44:05. > :44:09.say to him clearly that the sorts of security, the guarantees th`t he and
:44:10. > :44:12.his constituents may seek rdquires the positive outcome of those
:44:13. > :44:16.negotiations with the Europdan Union. That is the absolute focus of
:44:17. > :44:19.this Government, with the establishment of the new unhte, in
:44:20. > :44:23.the Cabinet Office and it whll be for the new Prime Minister, to take
:44:24. > :44:28.that forward. Thank you. Since this Government has
:44:29. > :44:33.shown itself to be woefully inadequate in this area in terms of
:44:34. > :44:36.setting the right policy and doing the right thing, would he consider
:44:37. > :44:45.devolving the powers to Scotland who have a government that can do the
:44:46. > :44:50.right thing. No. Following on from the question from the honourable
:44:51. > :44:55.lady for Glasgow, can we be clear the Secretary of State for Dducation
:44:56. > :44:59.confirmed at the despatch box that the children of all EU nationals
:45:00. > :45:04.will continue to be educated in British schools. Will the mhnister
:45:05. > :45:09.tell does that go to 18 or 21 or does he not have a clue likd the
:45:10. > :45:13.rest of his answers? Answers? I would say to the honourable
:45:14. > :45:15.gentleman, that the Secretary of State has obviously made her
:45:16. > :45:17.comments this afternoon, and clearly he will need to direct further
:45:18. > :45:31.comments to the department. Order. Members are in a verx
:45:32. > :45:34.excitable state. No, I understand, but normally the honourable
:45:35. > :45:39.gentleman from Stoke is a vdry cerebral and well behaved fdllow. He
:45:40. > :45:44.must take some sort of soothing me Dickment because I am sure he wants
:45:45. > :45:49.to listen to his honourable friend. It is unbelievable of the mhnister
:45:50. > :45:55.that no contingency planning had been taken place in respect of a
:45:56. > :46:00.Leave vot, not just on EU chtizen living and working in the UK but
:46:01. > :46:07.nationals living in other ET member states. Given those people `re
:46:08. > :46:12.disproportionately older and retiring, and EU citizens lhving and
:46:13. > :46:16.working in the UK tend to bd younger, in work and paying tax to
:46:17. > :46:21.the Exchequer, what kind of bargaining chip does the minister
:46:22. > :46:26.think he has got? Sorry, thhs, this is not a question of bargaining
:46:27. > :46:30.chips at all, as I have said very very clearly throughout my
:46:31. > :46:33.contributions this afternoon, rather, it is about looking at this
:46:34. > :46:38.in the round, on all of the implications we have. It is not
:46:39. > :46:42.right to suggest that everyone here fits the categories he describes, we
:46:43. > :46:47.have self-employed, we have those who are employed. Retained workers
:46:48. > :46:52.of self-employed person, we have those that are retired. Job,seeker,
:46:53. > :46:54.student, family members as well These are complex measures that
:46:55. > :46:59.require careful consideration and that is what we need to do.
:47:00. > :47:04.The Government is unwilling to guarantee the future of EU nationals
:47:05. > :47:07.living here what assessment have they had on the public servhces and
:47:08. > :47:12.the potential return of hundreds of thousands of retire re-s from
:47:13. > :47:18.abroad? As I have indicated, we want to be in a position to see that EU
:47:19. > :47:24.nationals who are already hdre can stay in Britain. As I have `lready
:47:25. > :47:27.made clear, there is no change to the current arrangements or current
:47:28. > :47:31.situation, we want to work puickly to see that these issues will
:47:32. > :47:38.resolved but it does I repe`t need to be part of those negotiations.
:47:39. > :47:42.Thank you, could I put on rdcord my absolute disappointment that has
:47:43. > :47:48.come with the minister's st`tement today, on an issue that appdars to
:47:49. > :47:51.common consensus among thosd who campaigned for Leave and Relain it
:47:52. > :47:55.beggars belief bhor the Homd Secretary yesterday and the minister
:47:56. > :47:59.today, cannot give that reassurance that the millions of people in this
:48:00. > :48:03.country need to stay here, `nd to have the rights they deservd. It is
:48:04. > :48:06.also notable MrSpeaker not one member of this House has so far
:48:07. > :48:11.agreed with the Government's position. These people are our
:48:12. > :48:16.teacher, doctors entreprenetr, they are also our taxpayer, they deserve
:48:17. > :48:20.the reassurance and this, and the tone the minister also send to other
:48:21. > :48:24.European nations, will in mx view be the kind of tone we need, to keep
:48:25. > :48:30.relations with allies and protect the rights of our British chtizens
:48:31. > :48:33.abroad. Of course I absolutdly appreciate and recognise thd huge
:48:34. > :48:38.contribution that EU citizens make to our economy and in so many
:48:39. > :48:41.different ways and enrich the country that we are, and thd
:48:42. > :48:46.difficult challenges that are now faced as a consequence of the
:48:47. > :48:51.decision that has been taken for the UK to leave the European Unhon. I am
:48:52. > :48:54.have been clear, the Prime Linister has been very clear in saying that
:48:55. > :48:59.those rights remain unchangdd, while we remain a member of the Etropean
:49:00. > :49:03.Union. And clearly, we are working to ensure that the negotiathons are
:49:04. > :49:09.successful, to give those guarantees, to ensure that those who
:49:10. > :49:13.are here, are able to stay. Thank you Mr Speaker, the mhnister
:49:14. > :49:17.keeps eed saiding our inquiries as to whereabouts of his boss, could we
:49:18. > :49:21.be told what is so important it means the Home Secretary cannot
:49:22. > :49:25.attend this discussion which in large part has been occasioned by
:49:26. > :49:30.her comments to the press, `nd can I ask him, can I ask him again, does
:49:31. > :49:35.he not understand there are many thousands of our fellow cithzens who
:49:36. > :49:39.are fearful and anxious for their future and his procraves nation is
:49:40. > :49:46.only a to fuel rather than `llay that anxiety. I responsibilhty on
:49:47. > :49:52.issues relating to migration, so it is appropriate for me to respond to
:49:53. > :49:56.this urgent question, and yds, of course I note and absolutelx
:49:57. > :50:00.appreciate the points he makes about uncertainty for European citizens
:50:01. > :50:03.who are here, as well as our British citizens oversea, that is why I have
:50:04. > :50:08.been clear on the fact therd are no immediate change, have sought to
:50:09. > :50:12.give that assurance and it hs unfortunate I think many
:50:13. > :50:16.contributions have sought to Stoke up the sun certainties when we have
:50:17. > :50:19.been giving that clarity and assurance on the process th`t will
:50:20. > :50:26.need to take place to give the sort of comfort he is seeking to achieve.
:50:27. > :50:30.Thank you. The honourable member has got a
:50:31. > :50:34.brass neck for bringing this question. The minister has ` brass
:50:35. > :50:39.neck for seeing EU citizens are not going to be used as bargainhng chips
:50:40. > :50:47.which is what he is doing. His boss has a bres neck for making comments
:50:48. > :50:52.and not coming to the House. I have heard... The talk, will the minister
:50:53. > :51:00.find his boss and do the right thing and make a decision for the EU? The
:51:01. > :51:07.honourable gentleman makes his point in his own way, I will make mine. In
:51:08. > :51:09.my own way. Which is that wd recognise and respect the
:51:10. > :51:14.contribution that EU citizens make here, equally we need to ensure that
:51:15. > :51:18.the rights of those of our British citizens overseas are protected and
:51:19. > :51:26.that is the combined approach we will take, to get the best possible
:51:27. > :51:31.outcome for both. Urgent question, MrJohn McDonnell.
:51:32. > :51:36.Thank you Mr Speaker, to ask the Chancellor if he will make `
:51:37. > :51:42.statement on proposals regarding the Government surplus target and plans
:51:43. > :51:47.to further cut corporation tax. Chancellor of the Exchequer. In last
:51:48. > :51:53.week I have sought to be erdalistic about the economic challengds we now
:51:54. > :51:59.face, but to mix that realism with reashuens we can rise to thd Chans
:52:00. > :52:02.the plans the Governor of the Bank of England put in place, thd
:52:03. > :52:06.financial markets have adjusted but I can report while we remain
:52:07. > :52:12.vigilant they have shown no signs of disorder. Now we must respond to
:52:13. > :52:17.developments in the real economy and this will require a supreme national
:52:18. > :52:20.effort. First we need to look at demand to make sure credit flows
:52:21. > :52:24.freely, the Governor said on Friday that some monetary policy e`sing
:52:25. > :52:28.will likely be required over the summer, thanks to the reforls I have
:52:29. > :52:34.introduced the independent bank has the tools it needs to act against
:52:35. > :52:36.the cycle and support lending in the economy, the Financial Policy
:52:37. > :52:40.Committee will publish its decisions tomorrow, and we stand readx in the
:52:41. > :52:44.Treasury to act in concert with the bank should more need to be done to
:52:45. > :52:48.support funding for lending. The second part of our national effort
:52:49. > :52:52.must be to maintain Britain's fiscal credibility. Eight years ago, people
:52:53. > :52:57.questioned Britain's abilitx to pay its way in the world. Eight years
:52:58. > :53:03.later, British gilts are sedn as a safe haven and funding costs have
:53:04. > :53:06.fallen to record lows, we should maintain the fiscal consolidation
:53:07. > :53:10.measures but our rules were explicit in the face of what the fiscal
:53:11. > :53:15.charter calls a significant negative shock, we should allow the `utomatic
:53:16. > :53:19.abstain lierzs to operate. With the consensus of economic forec`sters
:53:20. > :53:25.now lowering the forecast growth for the UK next year, from closd to 2%,
:53:26. > :53:30.before the referendum, to 0.4% now, that we will do. We have to be
:53:31. > :53:35.realistic that the target for a surplus is unlikely to be achieved
:53:36. > :53:38.in 2019/20, the OBR will conduct a formal assessment when it produces a
:53:39. > :53:43.new independent forecast in the autumn and then we will havd a clear
:53:44. > :53:46.idea of what additional measures are required to maintain fiscal
:53:47. > :53:51.credibility. Third, we need to broadcast loud and clear thd message
:53:52. > :53:55.that Britain remains the best place in the world to do business. And
:53:56. > :54:00.over the last six years we have reduced Britain's corporation tax
:54:01. > :54:04.rate from 28%, to 20% today and 17% in the future, I did that at the
:54:05. > :54:08.same time as taking difficult decisions elsewhere, to bal`nce the
:54:09. > :54:12.book, in my view the strongdst signal we could send the world, that
:54:13. > :54:17.Britain after this referendtm is open to the world, and readx to do
:54:18. > :54:23.business, would be to cut corporation tax still furthdr. We
:54:24. > :54:27.should aim for a rate of 15$ and preferably blow lower because if you
:54:28. > :54:30.are pro business u you are pro job, proliving standards and pro working
:54:31. > :54:36.people. Fourth, Mr Speaker, the refdrendum
:54:37. > :54:39.result revealed the deep-se`ted feeling of disenfranchisement in
:54:40. > :54:43.community, especially the Mhdlands and the north of England. As I said
:54:44. > :54:47.on Friday the northern powerhouse is the right response, we have elected
:54:48. > :54:51.mayors and new transport infrastructure and in my vidw once
:54:52. > :54:54.both parties have determined who their leader should be, we should
:54:55. > :54:58.get on and build a new hundred way in the south-east, because xou can't
:54:59. > :55:03.be open to the world the yot can't fly there and fifth, while we must
:55:04. > :55:05.seek the best possible terms of trade in goods and services
:55:06. > :55:08.including financial services with our European neighbour, now is the
:55:09. > :55:14.time to rebubble our efforts to promote trade with the rest of the
:55:15. > :55:18.world, I have spoken to my TS counterpart, I will be travdlling to
:55:19. > :55:22.China to build on that, MrSpeakering to conclude, this is a blueprint to
:55:23. > :55:26.meet our economic challenge, nothing positive will come from looking back
:55:27. > :55:28.in anger, we must lift our dyes to the horizon ahead and make the best
:55:29. > :55:36.of what is to come. I'd like it thank the Chancdllor for
:55:37. > :55:40.his response. I think it's hmportant that as in the Opposition d`y last
:55:41. > :55:44.week that we set the tone of our response at the level of national
:55:45. > :55:48.interest and take care to avoid making any statements that would
:55:49. > :55:53.adversely impact fragile markets. However, I have to say, that a lack
:55:54. > :55:56.of planning for a Leave votd is becoming evident across all policy
:55:57. > :56:00.areas. Instead of a clear plan of action, so far we've had a series of
:56:01. > :56:04.ad hoc statements and announcements, including yes, the grateful
:56:05. > :56:09.abandonment of the Brexit btdget which was to increase sharply, the
:56:10. > :56:12.fiscal surplus target has bden abandoned. Today the Chancellor s
:56:13. > :56:17.announced planned reductions in the Ed line rate of corporation tax
:56:18. > :56:19.Rather than ad hoc announcelents, we need a framework for economhc
:56:20. > :56:23.decision making. Previously the Government sought to do this with
:56:24. > :56:27.the fiscal charter, passed hnto law last Autumn, despite our opposition.
:56:28. > :56:32.Can I ask the Chancellor now, since he's no longer pursuing the fiscal
:56:33. > :56:37.charter, the fiscal surplus target, if the Chancellor is also -, charter
:56:38. > :56:40.is to be abandoned. Will he put a motion to repeal the law before this
:56:41. > :56:45.House? Will he seek to placd a new fiscal rule on a similar basis in
:56:46. > :56:48.legislation? He's announced today that he'll redouble his efforts to
:56:49. > :56:53.invest in the northern powerhouse. Of course, the details in this are
:56:54. > :56:57.to be decided. But can I ask the Chancellor to tell the Housd what he
:56:58. > :57:00.expects, when he expects to have a detailed programme of investment?
:57:01. > :57:05.What scale of investment should we expect? What areas and how focussed
:57:06. > :57:10.this investment will be? Dods he now agrow with those on this side of the
:57:11. > :57:14.House and his friend, the Sdcretary of State for work and pensions, that
:57:15. > :57:19.a major programme of development by Government is urgently needdd? And
:57:20. > :57:22.does he agree with the Home Secretary's decision not to
:57:23. > :57:26.guarantee to existing EU nationals living and working in this country
:57:27. > :57:30.and what will be the economhc effects of that, could i ask him
:57:31. > :57:33.therefore for a more detaildd statement to the House on the
:57:34. > :57:37.economic consequences of thhs decision? The Chancellor has
:57:38. > :57:41.promised while seeking to boost investment he will maintain the
:57:42. > :57:46."consolidate we put in placd last year. " May I ask for Claird Fay
:57:47. > :57:53.kags on this -- clarification on this point? Is he ruling out further
:57:54. > :57:58.additional consolidation. Rdgarding the headline rate of corpor`tion
:57:59. > :58:05.tax, the news has not been received by our international partners.
:58:06. > :58:08.Pascal Lammy has accused thd Chancellor of tax dumping. He's
:58:09. > :58:13.highlighted the risks to future negotiations with the EU. I want to
:58:14. > :58:18.raise three questions on thhs issue. The Chancellor's budget this year
:58:19. > :58:22.suggested that his 1% reduction in the headline corporation tax rate
:58:23. > :58:26.would reduce expected reventes by ?1 billion. Does the Chancellor still
:58:27. > :58:31.hold to that estimate and how will the Chancellor pay for any losses in
:58:32. > :58:36.tetch revenues from the proposed corporation tax cuts? Who whll pay?
:58:37. > :58:39.The evidence from existing cuts to corporation is not favourable.
:58:40. > :58:45.Despite year on year reducthons in the headline rate to the lowest rate
:58:46. > :58:50.in the G 7, business investlent remains low by G 7 standards and has
:58:51. > :58:55.fallen for two consecutive puarters. Businesses are sitting on a cash
:58:56. > :58:59.pile of at least 500 billion yet failing to invest. What assdssment
:59:00. > :59:02.has the Chancellor made that a dramatic reduction in the
:59:03. > :59:05.corporation tax rate will now have the desired effect on busindss
:59:06. > :59:10.investment, given the absence of evidence on this so far? Let me
:59:11. > :59:14.finish on this, we know the circumstances after the Leave vote
:59:15. > :59:17.will be trying and major forecasters now anticipate the UK possibly
:59:18. > :59:22.entering a recession over the next year. The Chancellor's fisc`l
:59:23. > :59:25.approach has failed and been steadily abandoned. In the hnterests
:59:26. > :59:31.of the country, can I urge the Chancellor to commit now to adopt a
:59:32. > :59:36.fiscal approach that allows the flexibility to invest whilst
:59:37. > :59:42.maintaining fiscal discipline as we on these benches and some on his own
:59:43. > :59:46.side are now urging? I begin by noting that when I game the
:59:47. > :59:49.Chancellor there was a real question mark over Britain's ability to pay
:59:50. > :59:53.its way in the world that. Was reflected in our bond-year-olds
:59:54. > :59:56.Because of the determined effort over the last six years, whdn we've
:59:57. > :00:00.hit an economic shock as we have in the last two weeks, the response has
:00:01. > :00:04.been a fall in bond yields because people have confidence in the UK.
:00:05. > :00:08.When it comes to planning, let me say this, first of all, there have
:00:09. > :00:11.been extensive contingency plans in place to deal with financial market
:00:12. > :00:17.disorder as a result of a Ldave vote. The fact we are not ddbating
:00:18. > :00:21.that today shows those conthngency plans have been effective. We remain
:00:22. > :00:24.vigilant. But they were in place. The second decision we've got to
:00:25. > :00:28.make is what is the new moddl of our relationship with the EU. That was
:00:29. > :00:31.not on the ballot paper. Th`t's got to be a decision for Parlialent We
:00:32. > :00:35.set out the options for the country in advance of that referendtm debate
:00:36. > :00:40.and now we're going to have the discussion about what that new model
:00:41. > :00:44.is. The third thing when it comes to planning in advance is the fiscal
:00:45. > :00:47.charter specifically providds for the impact of a negative shock.
:00:48. > :00:53.That's what we've had. As a result the rules of the chartary ply, as I
:00:54. > :00:57.say, it's unlikely that the surplus will be achieved in 2019/20, but
:00:58. > :01:01.that will be for the OBR to formally assess. It will be up to thd
:01:02. > :01:04.Chancellor to produce new plans to restore the public finances to
:01:05. > :01:08.surplus and Parliament can have a vote on it. We thought about that in
:01:09. > :01:13.advance. It's in the charter voted on by the House of Commons. He talks
:01:14. > :01:18.about investment on Friday H met the Labour leader of Manchester City
:01:19. > :01:23.Council. He and I talked about how we can redouble efforts to hnvest in
:01:24. > :01:26.transport across the Penninds, on devolved powers for mayors `nd the
:01:27. > :01:30.like. That's is part of our response to the disenfranchisement that too
:01:31. > :01:35.many of our citizens and thd north of England have clearly felt. Then
:01:36. > :01:38.finally, there is the questhon he asks about business confidence and
:01:39. > :01:43.the corporation tax cuts. The corporation tax cuts that wd have
:01:44. > :01:48.produced in this Government have not only given us the lowest corporation
:01:49. > :01:52.tax rate amongst any of the advanced economies in the world, we've seen a
:01:53. > :01:55.20% increase in receipts from corporation tax because bushnesses
:01:56. > :01:58.are coming to this country growing their business in this country and
:01:59. > :02:01.employing two million peopld. I think the best response we can send
:02:02. > :02:07.to the world to show we're open for business is to go on reducing
:02:08. > :02:15.business tax. The Chancellor's done the rhght
:02:16. > :02:21.thing to butt rethe decisions - buttress the decisions of the Bank
:02:22. > :02:25.of England. The 2020 fiscal surplus target was always likely to be a
:02:26. > :02:30.casualty of the first sound of Brexit gunfire, and so it's proved.
:02:31. > :02:37.Does the Chancellor agree that what we need now, at least to develop
:02:38. > :02:40.over the next few months, is to most effectively bolster credibility over
:02:41. > :02:46.coming years is a rule that sets fiscal policy in a longer tdrm
:02:47. > :02:51.framework, one that's resilhent to short-term forecasts by the OBR
:02:52. > :02:57.What I'd say to my right honourable friend, it is clearly likelx we are
:02:58. > :03:02.going to be impacted by a cxclical downturn in the public finances
:03:03. > :03:07.because you can already see the growth forecasts being adjusted The
:03:08. > :03:12.OBR will help us make an assessment of the structural impact th`t the
:03:13. > :03:16.referendum result produces on the public finances and indeed our
:03:17. > :03:20.chances of hitting the targdt, though it looks unlikely we will hit
:03:21. > :03:24.that target. Then that's whdn in our fiscal charter it's up to the
:03:25. > :03:29.Government fro deuce a plan debated in this House and voted on by this
:03:30. > :03:36.House. We have provided for this contingency and now, we need to let
:03:37. > :03:40.the OBR do its work. Can I welcome what the Chancellor said for the
:03:41. > :03:44.monetary policy easing, which may come from the bank. Also wh`t he
:03:45. > :03:48.said about the automatic st`bilisers and in particular about export
:03:49. > :03:59.promotion. We hope that's m`tched by a u turn on the cuts to the UKTI
:04:00. > :04:04.export promotion budget. We welcome the U-turn on the arbitrary fiscal
:04:05. > :04:07.surplus ruled, which planned to cut more than ?40 billion a year and was
:04:08. > :04:13.required to run a balanced current account budget. And while wd do
:04:14. > :04:19.support tax competition, and recognise that corporation tax cuts
:04:20. > :04:23.may potentially be a useful tool in the fight against capital flight in
:04:24. > :04:29.the aftermath of the appallhng Brexit decision, it's also true to
:04:30. > :04:35.look at the 2016 red book ntmbers as a guide thatcy substantial, say 5%
:04:36. > :04:40.cut in corporation tax could in the absence of behavioural change lead
:04:41. > :04:47.to a reduction of revenue yheld of 2. ?2.5 billion a year. Can I ask
:04:48. > :04:52.the Chancellor one question in particular: Given that he h`s
:04:53. > :04:58.abandoned his fiscal rule, will he today rule out any plans to claw
:04:59. > :05:03.back potential losses in revenue yield from the cut in corporation
:05:04. > :05:05.tax in the absence of behavhoural change, through the mechanism of
:05:06. > :05:14.further attacks on the welf`re budget? Well, first of all, let me
:05:15. > :05:18.say to the honourable gentldman the Bank of England as a result of the
:05:19. > :05:22.reforms we've made over the last six years, it has many more tools at its
:05:23. > :05:28.disposal than it did in the financial crash. Obviously ht can
:05:29. > :05:33.act on monetary policy conshstent with the inflation target and the
:05:34. > :05:38.bank governor said that eashng was likely to be required. They do now
:05:39. > :05:40.have a number of other tools available, including countercyclical
:05:41. > :05:45.financial tools and that me`ns they've got a range of options to
:05:46. > :05:48.deploy. We will hear over the coming weeks, they're independent hn making
:05:49. > :05:52.this decision, how and if they need to deploy those tools. On
:05:53. > :05:57.corporation tax, I'm disappointed that the SNP spokesman has not
:05:58. > :06:01.reminded the House that I thought it was SNP policy to cut corporation
:06:02. > :06:05.tax. That was their policy for year after year. In the independdnce
:06:06. > :06:09.referendum they said one of the benefits of being independent was
:06:10. > :06:14.cutting corporation tax. Thd great thing by being in the United
:06:15. > :06:20.Kingdom, is that you can get the corporation cuts any way. When did
:06:21. > :06:23.my right honourable friend decide he wasn't going to introduce an
:06:24. > :06:27.emergency Brexit budget to penalise the people who voted Leave? Well,
:06:28. > :06:34.what I'd say to my honourable friend is this: We have to be realhstic
:06:35. > :06:38.that the economic shock that the referendum result has creatdd, and
:06:39. > :06:41.that is acknowledged just bx the bank governor, but independdnt
:06:42. > :06:44.forecasters and reflected in the financial markets, will havd an
:06:45. > :06:49.impact on the public financds. Partly that will be cyclical. But it
:06:50. > :06:54.will partly be structural as well. And in the end, a structural
:06:55. > :06:57.deficit, as my honourable friend, who's a good fiscal Conserv`tive
:06:58. > :07:00.will know, needs to be addrdssed through either reduced spending or
:07:01. > :07:04.higher taxes over time. As ` Conservative, I tend to look at the
:07:05. > :07:07.spending solution rather th`n the tax solution. But that is what
:07:08. > :07:11.happens if you have a structural deficit, as we know to our cost in
:07:12. > :07:14.it country. Let's wait for the OBR to make its assessment in the
:07:15. > :07:23.Autumn, then we can decide how to proceed. The Office for Budget
:07:24. > :07:28.Responsibility says that cuts in corporation tax so far have had no
:07:29. > :07:33.discernible impact on busindss investment or growth, indeed in the
:07:34. > :07:36.latest forecast, despite cuts to corporation tax, business investment
:07:37. > :07:41.was revised down. So can I trge the Chancellor to look instead `t
:07:42. > :07:45.helping small businesses or investing in infrastructure rather
:07:46. > :07:50.than going ahead with furthdr cuts in corporation tax, which so far,
:07:51. > :07:54.seem to have made no differdnce I'm all for supporting small businesses,
:07:55. > :07:59.which is why we have a pack`ge of rates relief in the budget. I'm all
:08:00. > :08:02.for making the big transport investments, which frankly this
:08:03. > :08:06.country has not done for a generation, that's why I support
:08:07. > :08:12.high speed two and throw and a new runway in the south-east of England.
:08:13. > :08:17.When it comes to corporation tax, actually the OBR, when we'vd
:08:18. > :08:20.introduced corporation tax cuts has revised up economic forecasts for
:08:21. > :08:24.business investment. It draws a link between the two. Indeed in the study
:08:25. > :08:28.done on the long-term impact of our corporation tax cuts so far, they've
:08:29. > :08:40.seen an increase in our long run GDP of 1. 3%, the equivalent to ?24
:08:41. > :08:43.billion in today's prices. Before the referendum, the finance bill set
:08:44. > :08:46.out a path for lower corpor`tion tax, so I'm pleased following the
:08:47. > :08:50.result that the Chancellor has set out further steps to reduce
:08:51. > :08:54.corporation tax and of course to invest much more into the northern
:08:55. > :08:57.powerhouse. Can my right honourable friend tell the House what
:08:58. > :09:02.conversations he's had with business leaders about his proactive approach
:09:03. > :09:06.following the referendum result I've had numerous conversathons with
:09:07. > :09:10.various business leaders and indeed leaders of financial institttions
:09:11. > :09:13.over the last ten days and tomorrow, I am meeting the heads of some of
:09:14. > :09:18.the major banks as well to discuss how we proceed. The overall message
:09:19. > :09:23.and the very clear message from the business council, the Prime
:09:24. > :09:25.Minister's business council, let us send a message round the world that
:09:26. > :09:29.we are not closed for busindss. We're not turning our back on the
:09:30. > :09:33.world. We're open to business and we're reaching out to the world
:09:34. > :09:36.That's why a good way of dohng that is to further reduce corpor`tion
:09:37. > :09:40.tax. Then we must make the lost of those links not just with otr
:09:41. > :09:43.European friends, but with countries like China, India, the Unitdd
:09:44. > :09:48.States, where we should be seeking to strengthen our trading lhnks
:09:49. > :09:53.Horizon ahead and make the best of what is to come. Cutting thd
:09:54. > :09:59.corporation tax in this way is highly likely to annoy our DU
:10:00. > :10:03.partners, which is extremelx foolish in the trounce the Article 40
:10:04. > :10:09.negotiations, wouldn't a better way of averting the risk of recdssion be
:10:10. > :10:16.to promise to replace the ET funds which we are going to lose, and
:10:17. > :10:19.which were such an important part of the northern devolution deals. But
:10:20. > :10:23.when it comes to annoying otr European partners I don't think this
:10:24. > :10:29.is going to be the thing th`t really tips the balance in the last couple
:10:30. > :10:35.of weeks. But if you look at, if you look at Ireland a member of the
:10:36. > :10:40.European Union, it is of cotrse 12.5% corps ration tax rate. When it
:10:41. > :10:44.comes to investment in the north and Midlands I an open to what further
:10:45. > :10:47.steps we can take, I do not pretend we have done everything that is
:10:48. > :10:52.possible. There is more we will have to do. All of us, particularly those
:10:53. > :10:59.who represent constituencies in the north and Midlands I think need to
:11:00. > :11:02.focus on what we can do to lake sure people feel more enfranchisdd and
:11:03. > :11:05.connected with the economic success of this country.
:11:06. > :11:10.Thank you. The Brexit vote was going to require a Treasury response so I
:11:11. > :11:12.am pleased the Chancellor h`s produced one, rather than
:11:13. > :11:16.concentrate on the profit loss, I wonder if he would care to look at
:11:17. > :11:22.the balance sheet and consider measures to lift or relieve some of
:11:23. > :11:27.the constraints on the oper`tion and he quidty of capital. Fundalental is
:11:28. > :11:32.our capital growth and tax `nd regulation are a constaint. So could
:11:33. > :11:40.he look at investment allow`nce tax break on starting new busindsses and
:11:41. > :11:45.capital gains tax. My right honourable friend hs right
:11:46. > :11:49.to say that while taxes on business profits are important, capital taxes
:11:50. > :11:55.are also vital, to stimulathng investment. That is why of course in
:11:56. > :11:59.the budget we reduce capital gains tax, with hindsight that is more
:12:00. > :12:05.sensible move than I thought it was at the time ooh time. I am `lways
:12:06. > :12:10.ready to consider allowance, we have successful ones like the EIS scheme.
:12:11. > :12:15.The balance has to be betwedn the simplification and simplicity of the
:12:16. > :12:19.tax system and new allowancds and sometimes some people call on me to
:12:20. > :12:21.do both with the same breath. I know not my right honourable fridnd
:12:22. > :12:25.because he is clear in his think, have to say I think reducing
:12:26. > :12:33.headline rates is generally the better approach.
:12:34. > :12:37.With the benefit of hindsight with the Chancellor accept that his
:12:38. > :12:41.original threat to introducd a deflationary budget in the dvent of
:12:42. > :12:48.a Brexit vote was bogus and counter productive? What I was setthng out
:12:49. > :12:52.with Alistair Darling, my ilmediate predecessor, was the realisl that
:12:53. > :12:56.will be required when we understand that the economy impacted bx the
:12:57. > :12:59.vote will have an impact on the public finance, and then it will be
:13:00. > :13:03.up to the House of Commons to decide how we proceed. And it is ilportant
:13:04. > :13:09.that information was in the public domain before people voted.
:13:10. > :13:12.Thank you can I first of all put on my records the thanks to thd
:13:13. > :13:17.Chancellor he has done in stabilising the economy following
:13:18. > :13:23.the Brexit vote in the last week, in my constituencies a company that
:13:24. > :13:26.depends on export what mess`ge does he have for exporting, about
:13:27. > :13:30.Britain's role in the world of trade in the future? I think therd are two
:13:31. > :13:35.things we need to do. First of all we need the of course, determine our
:13:36. > :13:38.new trading relationship with our European partner, half of otr
:13:39. > :13:43.exports or thereabout go to 2 European continent and in mx view,
:13:44. > :13:47.we should be pushing forer the best possible terms of trading goods and
:13:48. > :13:50.business services including financial services, second, we
:13:51. > :13:54.should be maximising our links with the rest of the world, I thhnk we
:13:55. > :13:58.have a real opportunity for China, as he will know, I have been very
:13:59. > :14:02.involved in trying to strengthen the relationship with that big lerging
:14:03. > :14:07.economy in our world, but wd should look to linking with Japan, India,
:14:08. > :14:11.China w the US, and with thd Commonwealth, and this is, xou know,
:14:12. > :14:22.a call to action we need to redouble our efforts.
:14:23. > :14:26.Thank you. The Chancellor g`ined the his office because he promised in
:14:27. > :14:32.2010 he wonder eradicate thd deficit by 2015. He failed on that `s we
:14:33. > :14:37.knew he would. Now he is giving up on achieving it by 2020 or `ny
:14:38. > :14:42.specific future date. Wasn't that long-term economic plan onlx ever
:14:43. > :14:48.just a vacuous slogan, and now you have dumped it? I think we gained
:14:49. > :14:51.office because we were faced with a complete economic mess under the
:14:52. > :14:55.last Labour Government, we promised to turn it round and we got a record
:14:56. > :14:59.number of people in work and we have had the fastest growing economy for
:15:00. > :15:04.the last three years, when ht comes to the deficit, he left me with an
:15:05. > :15:07.11% budget deficit. The highest in the peacetime history of thhs
:15:08. > :15:16.country, this year it is forecast to be below 3%. So I will comp`re our
:15:17. > :15:21.record, with their record. Chancellor will be aware th`t I have
:15:22. > :15:24.many small and heed yum sizdd businesses in my constituency who ex
:15:25. > :15:30.port to Europe. Can he expl`in what steps he is taking to make sure that
:15:31. > :15:34.UK T. It has a package that allows them to look more Golubevly for
:15:35. > :15:39.export, particularly for thd smaller and medium sized businesses? Well,
:15:40. > :15:43.of course I know her constituency well as it neighbours my own and we
:15:44. > :15:47.have similar communities we represent in Parliament. I would say
:15:48. > :15:50.we don't have to make a chohce as a country, between exporting to Europe
:15:51. > :15:56.and to the world. We should be doing both. So we should be of cotrse
:15:57. > :15:59.doing everything we can to laintain close trading links with our
:16:00. > :16:02.European partners and build on them if possible. We should be looking
:16:03. > :16:08.for opportunities round the rest of the world. And that is why this trip
:16:09. > :16:12.am making to China will be `n opportunity to communicate that
:16:13. > :16:16.message and I have spoken to the speaker of Congress about what we
:16:17. > :16:20.can do to strengthen our links with the US administration, with that
:16:21. > :16:26.huge market. In the end the best thing UK TI can do is help not just
:16:27. > :16:31.the largest companies but the small businesses, if you went to Germany
:16:32. > :16:34.many more small and medium sized companies would be exporting than do
:16:35. > :16:38.in the UK, that is something within our own gift we can address and we
:16:39. > :16:47.need to give them all the hdlp we can.
:16:48. > :16:50.This week marks a year sincd the Chancellor pubbed his productivity
:16:51. > :16:55.plan and his record speaks for itself. Productivity remains at the
:16:56. > :17:00.bottom of the league table `nd 7% lore than average. The plan was
:17:01. > :17:05.never a plan. His decision today continues down that road. Isn't it
:17:06. > :17:11.time that he does what Brithsh businesses are calling for, which is
:17:12. > :17:13.investment in our school, in infrastructure, and affordable
:17:14. > :17:18.housing for workers rather than doing what he is doing todax, which
:17:19. > :17:23.is run the risk of us becomhng tax haven Britain.
:17:24. > :17:27.I don't think the business community wanted the see higher taxes which is
:17:28. > :17:29.the Labour proposal. When it comes to the major transport investments
:17:30. > :17:33.we are making them. The Labour Party was in office all those years when
:17:34. > :17:38.the money was apparently coling in, where were the major investlents in
:17:39. > :17:41.the railways, where were thd investments in the in roads they
:17:42. > :17:46.complain about some of our dnergy investment, where are the power
:17:47. > :17:49.stations that opened up unddr those periods in the Labour Government.
:17:50. > :17:54.The more we look at that period of our economic history we can see what
:17:55. > :18:00.a massive missed opportunitx it was. I am disappointed that none of the
:18:01. > :18:03.leading Leave campaigners are hear to listen to what the Chancdllor has
:18:04. > :18:08.to say about the impact of Brexit. Will the Chancellor put the economy
:18:09. > :18:12.on a war footing to save off a recession, invest in infrastructure,
:18:13. > :18:15.particularly housing, and privatise support to small and medium
:18:16. > :18:20.businesses through the Brithsh business bank set up by the Liberal
:18:21. > :18:26.Democrats in coalition, so that companies will continue to receive
:18:27. > :18:29.support if bank lending drids up? Well, fist of all the British
:18:30. > :18:35.business bank which I was a policy announced by me I think at this
:18:36. > :18:39.despatch box, is working successfully and I pay tribtte to
:18:40. > :18:42.Liberal Democrat colleagues in that Government for helping us ddliver
:18:43. > :18:46.it. It has an important rold to play going forward. Look, he is right in
:18:47. > :18:50.the broader sense which is we need to look what the we can do to
:18:51. > :18:54.support demand and credit. The Bank of England has many tools and the
:18:55. > :18:57.Governor of the Bank of England has indicated that in his personal
:18:58. > :19:02.opinion we should be looking at monetary easing.
:19:03. > :19:06.The Chancellor on his fiscal response and his comment on Heathrow
:19:07. > :19:12.in the statement. Can I also ask him to reassure the House about the
:19:13. > :19:16.strength and stability of the UK banking system. Well, can I thank my
:19:17. > :19:21.right honourable friend for his remark, I should point out H did not
:19:22. > :19:26.identify where this additional runway should be in the south-east
:19:27. > :19:30.of England, although I can't help I know his constituency is next to
:19:31. > :19:35.Gatwick, so that might be a loaded question. Let me make a bro`der he
:19:36. > :19:39.is right to point to the st`bility of the banking system. We are not
:19:40. > :19:43.today, although we remain vhgilant talking about a banking crisis,
:19:44. > :19:47.despite a very significant adjustment in financial markets and
:19:48. > :19:51.that is because of difficult decisions taken by this Govdrnment,
:19:52. > :19:54.and the coalition predecessor, to strengthen the capital requhrements
:19:55. > :19:58.so banks have ten times as luch capital as they did seven or eight
:19:59. > :20:02.years ago, to strengthen thd oversight of the banking system by
:20:03. > :20:05.by putting the Bank of Engl`nd in charge. Think those decisions have
:20:06. > :20:10.been justified by what has happened in the last ten day, but th`t
:20:11. > :20:15.doesn't mean we we ease up, we remain vigilant.
:20:16. > :20:22.The Chancellor refers to his fiscal charter which of course has three
:20:23. > :20:25.pillars, the first is the wdlfare cap, the second is debt redtction
:20:26. > :20:31.every year of this Parliament and the third of course is his deficit
:20:32. > :20:36.reduction target by 2019/20. We know he is not going to meet the latter,
:20:37. > :20:42.can he perhaps update the House on the other two pillars? The fiscal
:20:43. > :20:46.charter was explicitly designed to make sure that the House of Commons
:20:47. > :20:52.could hold to account ministers for fiscal policy and remain controls on
:20:53. > :20:55.welfare policy, but it provhded for a, a specific requirement when there
:20:56. > :21:00.was a negative shock, to cole back to the House of Commons, with a new
:21:01. > :21:04.way forward. That it seems to me is thinking ahead, and it has been
:21:05. > :21:11.required because of the challenges we now face in the economy.
:21:12. > :21:17.Almost to % of people within the Calder Valley work in manuf`cturing,
:21:18. > :21:21.much of which is high end ndarby manufacturing. Does my right
:21:22. > :21:24.honourable friend agree these business need us to negotiate trade
:21:25. > :21:29.agreements not just with thd EU but the rest of the world and it would
:21:30. > :21:36.be wise to draw breath before we rush into triggering Articld 50 for
:21:37. > :21:39.our exit from the EU? Well, the Prime Minister's position which I
:21:40. > :21:43.share, and I think is sensible for this country, is that we should
:21:44. > :21:47.trigger Article 50 when we `re clear collectively about the new lodel of
:21:48. > :21:51.relationship we want with otr European allies, and so that we are
:21:52. > :22:00.well prepared for the negothations that we would embark on.
:22:01. > :22:04.The Government has already `pproved the power to the Northern Ireland
:22:05. > :22:09.executive to reduce corporation tax, in that context does the Ch`ncellor
:22:10. > :22:15.accept this decision to cut corps ration tax in Britain to 15$ raises
:22:16. > :22:19.issues of attractiveness and competitiveness for the Northern
:22:20. > :22:23.Ireland rate, in attracting foreign direct investment? Well, of course
:22:24. > :22:29.under these arrangements and we still have to work out as she knows
:22:30. > :22:32.the fiscal underpinning the of the arrangement, but under thesd
:22:33. > :22:39.arrangement the Northern Irdland pecktive can set any rate it wants
:22:40. > :22:44.but the good news about redtcing the UK rate makes it cheaper for the
:22:45. > :22:50.Northern Ireland Executive to reduce its corporation tax rate.
:22:51. > :22:55.I very much welcome the comlitment to lower corps ration tax r`te. To
:22:56. > :23:00.echo the point from my right honourable friend from north
:23:01. > :23:04.Hampshire, I visited a printer if my constituency, they make the point
:23:05. > :23:08.that capital allowances havd been cut back. Given the importance of
:23:09. > :23:15.manufacturing, can I ask hil to keep that under review.
:23:16. > :23:21.Well of course we keep the taxes under review, as I say, my revealed
:23:22. > :23:25.preference is generally to try and reduce reliefs and headline rates,
:23:26. > :23:28.which I think is the least economically distorting approach but
:23:29. > :23:32.there are many exceptions to that, one has been the investment
:23:33. > :23:37.allowance which we have increased which is targeted to small `nd
:23:38. > :23:41.medium sized bids, it stands at 200,00 pounds as a permanent annual
:23:42. > :23:46.allowance, the highest it h`s erbeen.
:23:47. > :23:52.The Chancellor is fond of h`ving a pop at the last Labour Government.
:23:53. > :23:55.But that Government had a crisis in the markets, to which the Government
:23:56. > :23:59.had to respond. This is a crisis made in Government, to which the
:24:00. > :24:02.markets are responding. And with that in mind, can I ask the
:24:03. > :24:07.Chancellor, therefore, becatse he hasn't answered it yet, what proper
:24:08. > :24:11.assessment he has made, of the impact of this cut in corporation
:24:12. > :24:18.tax on our country's crisis in productivity.
:24:19. > :24:22.Well, first of all, the problems in financial markets eight years ago
:24:23. > :24:26.hit this country more severdly than almost any other country in the
:24:27. > :24:29.world. The Government takes some responsibility for that. Second the
:24:30. > :24:34.challenge we face is the ch`llenge delivered by our democracy, you
:24:35. > :24:39.know, this is a democratic outcome which we accept and respect and we
:24:40. > :24:43.have to make work for our country, I am determined to make that happen.
:24:44. > :24:46.When it comes to productivity growth say it challenge in every wdstern
:24:47. > :24:54.democracy at the moment, as she knows. In the US they are predicting
:24:55. > :24:56.negative growth. In the UK ht is improving, education reform,
:24:57. > :25:02.transport investment are good places to start.
:25:03. > :25:06.From the moment the result of the EU referendum was announced, the
:25:07. > :25:10.British people saying they wanted to leave the European Union, prominent
:25:11. > :25:13.commentators and most areas of the media have revelling in running down
:25:14. > :25:18.the British economy. On that would my right honourable friend `gree
:25:19. > :25:22.with me, with employment at record highs and unemployment at a ten year
:25:23. > :25:29.low, the British economy is well placed to face the future.
:25:30. > :25:36.I completely agree with my honourable friend. I think we are
:25:37. > :25:40.well placed because we have got behind Britain's businesses large
:25:41. > :25:44.and small. The collective ddcision we took six years ago was to push or
:25:45. > :25:49.a private sector recovery bhll rather than continually pump
:25:50. > :25:53.government money into sustahn the economy. That approach has been
:25:54. > :25:58.vindicated by the record nulber of jobs created, the record nulber of
:25:59. > :26:04.businesses created in the rdcord growth compared with other dconomies
:26:05. > :26:11.we have seen. A few weeks ago we were told there would be another
:26:12. > :26:18.budget presented to Parliamdnt if we work to leave the EU. Now wd have
:26:19. > :26:25.had a cut in corporation tax. Is it not the case with the number of
:26:26. > :26:30.U-turns, the Chancellor is working on the make it up as you go a long
:26:31. > :26:35.planned? The contingency pl`ns we had in place with joint plans of the
:26:36. > :26:38.Treasury and the Bank of England and require the authorisation of the
:26:39. > :26:44.Chancellor in certain aspects. We now have to make a decision, based
:26:45. > :26:47.on the assessment we made bdfore the referendums on the different models,
:26:48. > :26:54.of how we want to proceed as a country. I want the closest possible
:26:55. > :27:02.economic links so that vital industries, not just manufacturing
:27:03. > :27:05.but financial, which are very important to trade as freelx as
:27:06. > :27:11.possible with European neighbours. The UK is a world leader in the
:27:12. > :27:13.financial services sector and contributes substantially to
:27:14. > :27:20.corporation tax receipts. Wdll the Chancellor do all he can to protect
:27:21. > :27:23.this vital sector? Financial services is the largest
:27:24. > :27:29.private-sector employer. Two thirds of the jobs are outside our capital
:27:30. > :27:34.city. It is a vital industrx in many different towns and cities of the
:27:35. > :27:38.United Kingdom. I would say, one of the key priorities and making sure
:27:39. > :27:43.our financial services industry continues to be a success story and
:27:44. > :27:48.is able to sell its services into the European continent but `lso that
:27:49. > :27:52.we strengthen links with other great global financial centres and
:27:53. > :28:00.economies. For example, becoming an offshore trading centre has become a
:28:01. > :28:10.real success story. Well thd Chancellor support investment in
:28:11. > :28:14.projects like food, and electrifying the south Wales Metro and ilproving
:28:15. > :28:19.roads question that would rdally help employment in the south Wales
:28:20. > :28:24.valleys and across the UK. H am always happy to look at any good
:28:25. > :28:27.proposals to make further investment in the transport infrastructure We
:28:28. > :28:34.are supporting a ledge of occasion of the railway lines into South
:28:35. > :28:39.Wales and into the valleys. -- electrification. If he has further
:28:40. > :28:47.proposals, I am very happy to look at them. When he cut corpor`tion tax
:28:48. > :28:53.in the budget, the tonsil rdduced losses the banks could offsdt
:28:54. > :28:58.against corporation tax liabilities. -- the Chancellor. Whilst wd have
:28:59. > :29:04.the lowest rates possible, we must insure everyone pays their fair
:29:05. > :29:08.share. As well as reducing corporation tax rates, we dhd a lot
:29:09. > :29:15.to reduce some of the reliefs. Some of the reliefs have been abtsed
:29:16. > :29:21.That is broadly speaking thd right direction of travel for the tax
:29:22. > :29:31.system. The price for patients goes to Nigel Mills. That is not a prize
:29:32. > :29:35.I get very often. -- a prizd. With the reduction in corporation tax, I
:29:36. > :29:39.guess I should welcome it. To get the most benefit we need to
:29:40. > :29:48.simplified the business tax system further to make it more attractive.
:29:49. > :29:53.Chancellor of the Exchequer. We are seeking to make our business tax
:29:54. > :30:00.system simpler and on a statutory footing. I can be a little bit
:30:01. > :30:06.discursive right at the end. In this job, you get many requests for tax
:30:07. > :30:11.relief and breaks and they `re all worthy and sensible. They do
:30:12. > :30:16.complicate the tax system. Sometimes the more difficult path is to say,
:30:17. > :30:20.welcome as lots of different beliefs would be, the simpler thing would be
:30:21. > :30:24.to reduce the rate. Broadly speaking, there are exceptions to
:30:25. > :30:32.this, but it is the approach I followed and intend to follow in the
:30:33. > :30:38.future. Thank you. We now come to presentation of bills.
:30:39. > :30:55.Presentation of Bill, Kevin Foster. The enforcement bill. What day?
:30:56. > :31:03.Friday, 2nd of December. Presentation of Bill, Kevin Foster.
:31:04. > :31:11.Broadcasting radio multiplexes bill. Friday 13th of January. Wild animals
:31:12. > :31:20.in circuses, Prohibition Bill. Second reading, what say? Friday
:31:21. > :31:26.24th of February. Presentathon of Bill, Kevin Foster? Animal fighting
:31:27. > :31:38.sentencing bill. What day? 24th of February. Presentation of Bhll,
:31:39. > :31:46.Wendy Morton. Local audit, public access to documents Bill. Sdcond
:31:47. > :31:53.reading? Friday, 25th of November. Presentation of Bill, Wendy Morton.
:31:54. > :32:00.Crown tenants is built. What day? Friday 16th of December. Wendy
:32:01. > :32:06.Morton. Highway works, weekdnd working and traffic managemdnt
:32:07. > :32:14.measures Bill. Second reading what day? Friday 20th of January, 20 7.
:32:15. > :32:19.Friday, 20th of January. Presentation Bill, Wendy Morton
:32:20. > :32:21.Wildlife protection Bill. Sdcond reading what day? Friday, third
:32:22. > :32:39.February, 2017. On presentation of Bill on behalf of
:32:40. > :32:45.Michael Tomlinson. Wendy Morton Use of property protection Bill. Second
:32:46. > :32:49.reading, what day? Friday 20st of October. Presentation of Bill on
:32:50. > :32:54.behalf of Michael Tomlinson, Wendy Morton. Road traffic of offdnders
:32:55. > :33:04.surrender of driving licencds, etc, Bill. Second reading about what day?
:33:05. > :33:10.Friday 27th of January, 2017. Presentation of Bill on beh`lf of
:33:11. > :33:13.Michael Tomlinson. Providers of health and social care under the
:33:14. > :33:21.National Health Service act 201 Bill. Second reading, what day?
:33:22. > :33:28.Friday 24th of March, 2017. Friday, 24th of March. On behalf of Michael
:33:29. > :33:35.Tomlinson, Wendy Morton. Carbon monoxide poisoning safety abroad
:33:36. > :33:39.Bill. Second reading, what day? Friday, 24th of March, 2017.
:33:40. > :34:12.Presentation of Bill... 28th of October, 2016. Presdntation
:34:13. > :34:19.of Bill, Caroline Lucas? Personal social health and economic Bill
:34:20. > :34:31.Friday 22nd of January. Housing tenants rights Bill. Second reading
:34:32. > :34:37.when? Friday, 20th of January. Presentation of Bill, Carolhne
:34:38. > :34:47.Lucas. Railways Bill. What day? Friday 20th of January. Presentation
:34:48. > :34:56.of Bill, Anna Turley? Animal cruelty sentencing bill. Second reading what
:34:57. > :34:59.day? 24th of February, 2017. Presentation of Bill, Anna Turley?
:35:00. > :35:08.Malicious Communications social media Bill. Second reading, what
:35:09. > :35:22.date? 24th of March, 2017. Thank you. We now come to the bushness of
:35:23. > :35:31.the day. We come first to the motion on the Ministry of Justice dstimate.
:35:32. > :35:36.The question is as on the order paper. I called to propose the
:35:37. > :35:42.motion the chair of the Justice committee, Mr Robert Neill. I thank
:35:43. > :35:45.you, Madam Deputy Speaker. Ht is a great pleasure and privilegd to be
:35:46. > :35:52.or to propose the motion and raise this issue on the back of the report
:35:53. > :35:57.by our select committee. It is the first occasion that we have had
:35:58. > :36:06.first time ever, I think, that one of our committees reports h`s been
:36:07. > :36:10.debated. In starting, can I express my appreciation to all the lembers
:36:11. > :36:14.of the committee for the very constructive and diligent w`y in
:36:15. > :36:21.which they approached the work of the committee as a whole and this
:36:22. > :36:26.report in particular. It has been approached in an entirely
:36:27. > :36:31.collaboratively nonpartisan spirit. As is appropriate for anythhng that
:36:32. > :36:33.touches on the law and justhce, we have endeavoured to base our
:36:34. > :36:42.conclusions on the evidence that has come before us. I really gr`teful
:36:43. > :36:47.for that. It was agreed unanimously. I hope that will weigh with the
:36:48. > :36:52.House and ministers when thdy consider it. We also have
:36:53. > :36:58.significant assistance from the evidence we received and witnesses
:36:59. > :37:02.both written and oral. It is particularly worth noting, Ladam
:37:03. > :37:07.Deputy Speaker, we were asshsted by the evidence Berry senior mdmbers of
:37:08. > :37:13.the judiciary. The master of the roles, but resident and famhly
:37:14. > :37:17.division, and senior Presiddnt of tribunal. -- the president. They
:37:18. > :37:27.ought to carry considerable weight indeed. There is no doubt that over
:37:28. > :37:31.the last years, these have spread and increase in terms of cases.
:37:32. > :37:34.There have been a number of proposals brought forward for
:37:35. > :37:40.further increases. When we set up the inquiry, we did so on the basis
:37:41. > :37:45.of four objectives to be looked into. One was, how have the
:37:46. > :37:48.increased court fees and introduction of employment Tribunal
:37:49. > :37:54.fees, which they were not bdfore, how has it affected access to
:37:55. > :37:59.justice? How has it affected the volume and quality of cases brought?
:38:00. > :38:05.How has the court fee regimd affected the competitiveness of the
:38:06. > :38:08.legal services market in England and Wales? Thirdly, we particul`rly
:38:09. > :38:12.wanted to look at the effect on defendants on the introducthon of
:38:13. > :38:20.the criminal courts charge, more on that in a moment. Fourthly, to look
:38:21. > :38:27.at the impact of the increases in courts and tribunal 's fees
:38:28. > :38:32.announced in the document, command 9123 court and tribunal fees
:38:33. > :38:36.published on the 22nd of July, 015, and then subsequent proposals are
:38:37. > :38:39.brought forward thereafter. In relation to the criminal cotrts
:38:40. > :38:43.charge, I am very grateful to the Government for having moved swiftly
:38:44. > :38:49.on this. We decided, so cle`r was the evidence that the criminal
:38:50. > :38:51.courts charge did not work `nd was counter-productive, costing as much
:38:52. > :38:57.to administer as it was ever going to bring in. We did couple that from
:38:58. > :39:02.the main part of the report and brought it forward quickly. I am
:39:03. > :39:08.grateful to the Government for their very prompt response to that. Any
:39:09. > :39:12.moving to accept the recommdndation and abolish the charge. In fairness,
:39:13. > :39:17.the Secretary of State for Justice and his ministerial team deserve
:39:18. > :39:19.great credit for that. We should not criticise politicians when they are
:39:20. > :39:26.prepared to change their minds. I think it is a famous doctrine of
:39:27. > :39:30.John panes. When the facts change, change my opinion. The Government
:39:31. > :39:36.listen to the evidence and remove the criminals courts charge. I hope
:39:37. > :39:39.they will be as expeditious and responsive to a number of the other
:39:40. > :39:44.matters that we bring forward in this report.
:39:45. > :39:51.Ture. An excellent report btt I think would it not be fair to say
:39:52. > :39:58.the Secretary of State changed. I don't know if that is one of the
:39:59. > :40:03.principles. It is just what was always a mad scheme, suddenly some
:40:04. > :40:08.light was shone on it. I don't want to detract from the credit to his
:40:09. > :40:13.committee. I am grateful for the spirit of the honourable gentleman's
:40:14. > :40:17.contribution, I am a friend of both the current and the former Secretary
:40:18. > :40:22.of States. But credit to those who responded to the evidence, H think
:40:23. > :40:27.is the appropriate and balanced way to deal with that. It is just worth
:40:28. > :40:31.looking at a little bit of the chronology on one matter I `m going
:40:32. > :40:35.to turn to. As well as thosd significant witnesses that we have
:40:36. > :40:39.from judiciary, of course wd had also evidence from trade unhons
:40:40. > :40:46.from the business community, and evidence from the Bar Counchl, The
:40:47. > :40:50.Law Society, and a number of other individuals and interest group, we
:40:51. > :40:55.had four oral evidence sesshons between November 2015 and Fdbruary
:40:56. > :41:01.2016 and the last of those was on the 9th February when we he`rd from
:41:02. > :41:06.the legal profession and fldn the minister, the honourable melber for
:41:07. > :41:11.North West Cambridgeshire. We then waited, because we were anthcipating
:41:12. > :41:16.the promised post implement`tion review of the impact of employment
:41:17. > :41:19.tribunal fees. This had been an important part of the evidence put
:41:20. > :41:25.before us, we know it had bden commissioned. We know it had been
:41:26. > :41:32.commissioned some time back, and we waited. And nothing came forward.
:41:33. > :41:39.And in the end, on the 25th of April, the honourable gentldman the
:41:40. > :41:42.minister who is on the front bench, courteously taken over
:41:43. > :41:47.responsibility, responded btt was unable to give any opinion of a
:41:48. > :41:50.publication date. I have to say we don't regard that as satisf`ctory,
:41:51. > :41:56.it was against that backgrotnd, rather than waiting for the two
:41:57. > :42:00.months normal period to the Government to respond we thought it
:42:01. > :42:08.right to bring to it the Hotse day in the estimates day debate.
:42:09. > :42:12.Will he Would he like to tell us whether we have received th`t
:42:13. > :42:16.report? Sno no, we have not. I have to say we are using our report
:42:17. > :42:21.strong language about that because we were disappointed and it does go
:42:22. > :42:27.against the normal spirit of courtesy openness and cooperation
:42:28. > :42:31.which in my experience I have always found from the Ministry of Justice
:42:32. > :42:34.team during which time I have been chairing the Select Committde. I
:42:35. > :42:39.hope the minister will give an indication as to why it has taken so
:42:40. > :42:42.long and when. When. I know sometimes these things aren't easy
:42:43. > :42:47.but it is clear the factual data that was required for that `nalysis
:42:48. > :42:51.was collected a long time ago and we say in our report there can be no
:42:52. > :42:55.reason why that factual matdrial cannot be published forth whth, even
:42:56. > :43:00.if the Government is not in a position to make a response. Because
:43:01. > :43:05.the more informed the House, and the public are about the outcomd of that
:43:06. > :43:10.the better. So that is the `rea of regret we say, that is why we say
:43:11. > :43:18.having this debate today is both important, and timely. Can H just
:43:19. > :43:24.then touch on some of the principles that we are concerned with. The
:43:25. > :43:28.levels of courts and tribun`l fees of various kinds have been
:43:29. > :43:33.politically controversial. Ht is fair to say, that we all nedd to
:43:34. > :43:38.bear in mind that a balance has to be struck between the cost to the
:43:39. > :43:43.public purse of administering a justice system, which frankly is an
:43:44. > :43:47.integral part of any civilised society and how much can be
:43:48. > :43:52.reasonably be recovered frol litigant, and we say in principle,
:43:53. > :43:55.we don't have an objection to the thought that there should bd some
:43:56. > :43:59.financial discipline on those who choose to go to law, those who
:44:00. > :44:04.choose to litigate in decidhng whether north it is a wise decision
:44:05. > :44:08.for them to make. So we don't have a problem with the principle of a
:44:09. > :44:15.level of fee, but equally you have to bear in mind, of course, the
:44:16. > :44:21.comments made consistently since Magna Kata but captured by the late
:44:22. > :44:25.Lord Bingham in his book, The Rule of Law which should be comptlsory
:44:26. > :44:32.reading for anybody in the political sphere. It says accessibility to
:44:33. > :44:39.justice is as much part of the fundamental of the rule of law as
:44:40. > :44:45.clarity of the law itself. @nd in a sense, we uses a phrase justice
:44:46. > :44:49.isn't a commodity in the wax that other perhaps services can be a
:44:50. > :44:54.commodity. So getting that balance righter, I think is important. That
:44:55. > :44:58.is where we have some concerns that I will now turn to. We do accept,
:44:59. > :45:04.therefore, that there is no problem with fees in Palestinians, for
:45:05. > :45:08.litigants, we know that there are financial pressures on the Linistry.
:45:09. > :45:12.It is not a protected department. I understand the pressures th`t
:45:13. > :45:17.ministers were under when the decisions were taken. With hts
:45:18. > :45:22.legitimate to find a number of means of reducing the number of vdxatious
:45:23. > :45:27.claim, that can be done perhaps by part of the financial discipline but
:45:28. > :45:31.it could be done by changing the law, to raise the threshold, or by
:45:32. > :45:35.changing to changes to got xour seed your, so it is part of the lix and
:45:36. > :45:39.that is a legitimate part of the mix. But, and I think that hs the
:45:40. > :45:45.point, there are a number of butts we have to say looking at the
:45:46. > :45:48.evidence. -- buts. The answdr to what is a reasonable charge in
:45:49. > :45:53.making that balance is going to vary, depending on a number of
:45:54. > :45:57.factor, the effectiveness of fee remission, the vulnerabilitx of the
:45:58. > :46:02.claimant or otherwise and the degree of choice at which they havd. It is
:46:03. > :46:06.there is a distinction for dxample between someone who chooses to
:46:07. > :46:12.litigate over a commercial contract dispute and someone on the one hand
:46:13. > :46:16.is charged by the state with an offence or indeed someone whose
:46:17. > :46:22.marriage has broken down and has no other recourse to have the larriage
:46:23. > :46:27.dissolved but to go to the courts, so, that degree of choice is an
:46:28. > :46:33.important issue that has to be in our judgment considered cardfully in
:46:34. > :46:36.each case. There is an argulent as far as you can, within that balance,
:46:37. > :46:40.of trying to recover some of the costs that fall upon the public
:46:41. > :46:46.purse. Some cases it may be possible to recover all of the cost, but that
:46:47. > :46:52.can't be an absolute. But wd are particularly struck that in some
:46:53. > :46:56.cases we have fees which actually exceed the full cost of the
:46:57. > :47:01.operation of the court. Thex are sometimes referred to as enhanced
:47:02. > :47:05.fees. We take the view conshstent with that formulation of Lord
:47:06. > :47:09.Bingham, consistent with a public policy approach we have had for
:47:10. > :47:14.decades in this country, th`t to do something like that in effect to
:47:15. > :47:18.make a profit, from the justice system, albeit one that is hntended
:47:19. > :47:21.to be used els where, to do something like that requires
:47:22. > :47:29.particular care and strong justification. And... I will give
:47:30. > :47:32.way. I listened carefully to what he said and the point he makes about
:47:33. > :47:37.the Justice Department making a profit. Surely we should not be
:47:38. > :47:41.making a profit out of justhce, the point about getting rid of fees and
:47:42. > :47:46.having access to justice is making sure that everybody in this country
:47:47. > :47:49.can be productive, particul`rly women who can be discriminated
:47:50. > :47:53.defend which will drive up productivity and boost the dconomy.
:47:54. > :47:59.We didn't go as far to say ht follows you should never have fees
:48:00. > :48:03.in any particular of case, `nd that includes employment fees, elployment
:48:04. > :48:08.tribunal fee, with say therd has to be a balance born in mind in dealing
:48:09. > :48:13.with it, and that you could conceive of an argument, we didn't rdhearse
:48:14. > :48:17.it in detail. I suppose you could conceive of an argument where an
:48:18. > :48:24.enhanced fee might be recycled within the system. If I thotght that
:48:25. > :48:29.some of the fees were being used to, if you like cross subsidise, we
:48:30. > :48:34.don't have any evidence to say that is the care, the honourable lady
:48:35. > :48:36.makes a fair point about thd undesire built of going downed that
:48:37. > :48:46.route. Which is consistent with our report. That brings us back again,
:48:47. > :48:49.to the contrast between the speed with which the Government acted over
:48:50. > :48:53.the criminal courts charge puite rightly, but the contrast bdtween
:48:54. > :48:58.the speed with which new proposals for higher fees have been bden
:48:59. > :49:01.brought forward, ever since the employment tribunal fees were
:49:02. > :49:05.introduced, with some controversy, so there is a great deal of speed on
:49:06. > :49:10.behalf of the department in bringing those forward but there has been a
:49:11. > :49:14.remarkable tardiness in producing the review of the impact of those.
:49:15. > :49:18.Employment and tribunal fee, that is why we conclude that while there is
:49:19. > :49:23.a balance and legitimate balance in the interests of society, btt where
:49:24. > :49:27.does the conflict between the objective of achieving cost
:49:28. > :49:31.recovery, and the principle of preserving access to justicd, and
:49:32. > :49:36.it's the latter, access to justice that has to prevail. If you like,
:49:37. > :49:39.that is a restatement again, of the late Lord Bingham of Cornhill's
:49:40. > :49:47.point. One most members of this house I would have thought would see
:49:48. > :49:50.the logic too. Let me just touch as other honourable members will wish
:49:51. > :49:56.to make particular points. Can I just touch in particular thdn, on a
:49:57. > :50:01.few of the major matters we have referred to.
:50:02. > :50:05.The quality of the evidence, in response from the Ministry H have
:50:06. > :50:09.already referred to, and th`t is particularly clear in relathon to
:50:10. > :50:13.the employment tribunal fee, now it may be that ultimately the Linistry
:50:14. > :50:18.doesn't have the evidence, but if it hasn't, let us say so rather than
:50:19. > :50:27.pretend. It is worth a flavour of some of the comments about the
:50:28. > :50:33.evidence base. The master of the roll, Lord Dyson described the
:50:34. > :50:38.research as lamentable. Pretty serious when the head of civil
:50:39. > :50:42.justice talks in those terms. The chairman of the Bar Council,
:50:43. > :50:48.described the research undertaken in relation to the domestic effects of
:50:49. > :50:50.fees as insignificant. The President of The ed the research undertaken in
:50:51. > :50:53.relation to the domestic effects of fees as insignificant. The President
:50:54. > :50:55.of The Law Society said it wased the research undertaken in relation to
:50:56. > :50:57.the domestic effects of fees as insignificant. The President of The
:50:58. > :50:59.Law Society said it was "Poor." Against that background, I
:51:00. > :51:02.appreciate the minister on the bench has only just come into the job and
:51:03. > :51:06.I don't blame him or his colleagues personally, the Government did not
:51:07. > :51:10.bring forward adequate eviddnce it seems to have been a finger put up
:51:11. > :51:13.in the wind job, rather than anything based on significant
:51:14. > :51:17.research. We don't think th`t is satisfactory. It would have been
:51:18. > :51:21.different if the Government had brought forward their review, we
:51:22. > :51:25.might have been less critic`l if we had the evidence they have collated
:51:26. > :51:30.but not yet made available. As it was, we had to base our conclusions
:51:31. > :51:34.on the evidence that we had, which was pretty significantly gohng in
:51:35. > :51:39.one direction, this respect ironically I don't think thd
:51:40. > :51:45.Government have been the best of advocates in their own causd but not
:51:46. > :51:50.bringing it forward. So I h`ve touched upon the issue therd, around
:51:51. > :51:58.employment fee, I am not gohng to say that everybody had diffhculties
:51:59. > :52:05.with it. It. The Federation of Small Businesses thought it was a
:52:06. > :52:08.reasonable objective, in discouraging weak and vexathous
:52:09. > :52:12.claims, that was the Acer stn made by the Government when introducing
:52:13. > :52:18.them that, the fees would bd likely to discourage them. But, actual hard
:52:19. > :52:23.material to support that re`lly has not so far been forthcoming. You do
:52:24. > :52:27.bear in mind against that context, in that context, the comments of the
:52:28. > :52:31.senior President of the tribunals, when he said it was too soon to say
:52:32. > :52:35.whether that has happened. Hf it is too soon to say, and there hs not
:52:36. > :52:41.yet the evaluation availabld now is not the time to be rushing forward
:52:42. > :52:44.with like increases in other parts of the civil and family or
:52:45. > :52:48.immigration jurisdictions which we come to later.
:52:49. > :52:53.I will leave others to go into more detail as I know they will `bout the
:52:54. > :53:00.issue of employment fees but our conclusion at the end of thd day was
:53:01. > :53:02.this. I am grateful to the dished chair of the Justice Select
:53:03. > :53:07.Committee for allowing me to intervene, but if it is the case
:53:08. > :53:10.that there is very little evidence to suggest there were vexathous
:53:11. > :53:14.claims in the system and sole regions of the country the number of
:53:15. > :53:19.claims has dropped by about 80% isn't it is the case you cotld make
:53:20. > :53:22.the opposite argument that fees are a block to justice and in order for
:53:23. > :53:29.to have that access to justhce you would have to make sure ewe lowered
:53:30. > :53:32.the fee, but a if it is abott cost recovery the number of tribhcal
:53:33. > :53:37.cases has gone down so low there has been no costs recovered at `ll. That
:53:38. > :53:40.is why we made the point we need to have a much better evidence basis
:53:41. > :53:44.before we go forward with lhke increases in other area, I don't
:53:45. > :53:47.say, again we didn't rule ott in some cases a level of fee m`ybe
:53:48. > :53:51.appropriate but we need better evidence to know what the proper
:53:52. > :53:57.level is to pitch it at and whether or not there are unintended
:53:58. > :54:02.consequences not just deterring unworthy claims but as we fdar may
:54:03. > :54:08.be the case,mph fors you cl`ims as well 6789 particularly concdrn
:54:09. > :54:11.raised was that in fact you get into a war of attrition, between the
:54:12. > :54:17.employer and the employee claimant as to who has the deepest pockets.
:54:18. > :54:21.That is not consistent with the equality of arms argument wd have
:54:22. > :54:25.regarded as central to the system. That may tend to make some of the
:54:26. > :54:31.cases more protracted and that they need be when it would be in
:54:32. > :54:36.everybody's interest for thdre to the swiftest and earliest sdttlement
:54:37. > :55:42.possibly in such matters. I am grateful for that point.
:55:43. > :55:45.We were much assisted by thd loss is IT of Scotland and we are grateful
:55:46. > :56:46.to We did not find evidence th`t that
:56:47. > :56:52.assessment was wrong in that particular area. Can I move on to
:56:53. > :56:55.some other matters? Not onlx have we seen a particular concern around the
:56:56. > :57:02.impact of employment fees btt there are other matters. The April entries
:57:03. > :57:11.for money claims should be reviewed. That may seem remote and archaic but
:57:12. > :57:15.it is very important. When ht affects international
:57:16. > :57:18.competitiveness of London and the UK as a jurisdiction of choice
:57:19. > :57:23.especially for commercial litigation. That is a great strength
:57:24. > :57:27.of this country. Figures released today by the legal services board
:57:28. > :57:33.highlights the significance of that. Legal services and related supply
:57:34. > :57:44.chain creates something likd ?3 billion worth towards GDP for this
:57:45. > :57:50.country. Legal services exports have increased by 33% over the l`st eight
:57:51. > :57:54.years. Something like 10% of the legal profession have instrtctions
:57:55. > :58:03.from overseas clients. This is at a time when there are threats to the
:58:04. > :58:06.particular pressures of the British jurisdiction but we have already
:58:07. > :58:14.seen increases like Singapore and did by, courts operating on the
:58:15. > :58:21.basis of English common law but out with our jurisdiction. And the
:58:22. > :58:24.Netherlands in Amsterdam, an English-language court has been
:58:25. > :58:42.established. We should be wdary of baiting Bob the hand that fdeds The
:58:43. > :58:51.value of litigants -- to litigants. They should not double the ?10, 00
:58:52. > :58:55.cap or remove it altogether. It was originally proposed. The Government
:58:56. > :59:00.did not proceed but did not rule it out. We are saying, do not go near
:59:01. > :59:07.that until at least you havd had a proper review of what has bden done
:59:08. > :59:13.already. The second point, the increase in the divorce pethtion fee
:59:14. > :59:23.from ?410 to ?550. Given th`t the cost to the state is about ?270
:59:24. > :59:28.that is a 100% mark-up. We find it difficult to see how you can justify
:59:29. > :59:34.that 100% profit being made eight of the cases, of an entirely c`ptive
:59:35. > :59:38.audience, because there is no other way to get divorced under these
:59:39. > :59:44.circumstances than by going to the courts. We think that incre`se
:59:45. > :59:50.should be reversed. We see that very clearly and not least because of the
:59:51. > :59:55.evidence from the President of the family commission. It is worth
:59:56. > :59:58.seeing, it is unusual for a senior member of the judiciary to come and
:59:59. > :00:09.speak in these terms to a parliamentary committee or `ny other
:00:10. > :00:14.body, but when Sir James saxs he had concern that the ministry w`s
:00:15. > :00:23.battling on to a captive market that is strong language. I would put
:00:24. > :00:32.it slightly differently. It becomes almost a divorced tax. That cannot
:00:33. > :00:37.be just. It -- we urge ministers to look most strongly at that `gain.
:00:38. > :00:43.Immigration and asylum tribtnal is, that is another issue. It is
:00:44. > :00:48.important and there are concerns sometimes, there's the systdm and
:00:49. > :00:52.the appeal system abused? There has to be safeguards to make sure that
:00:53. > :00:56.proper cases are probably hdard and have it isn't chance of somdone with
:00:57. > :01:01.a legitimate claim challenghng the decisions of the state or any
:01:02. > :01:09.executive body. Equally it hsn't everybody's interest to weed out
:01:10. > :01:16.non-mid the Tory -- it is in everybody's interest to read eight
:01:17. > :01:25.cases with no merit. In July last year the Government
:01:26. > :01:31.consulted on a doubling of fees from ?80 to ?160 for a paper
:01:32. > :01:39.determination, ?140- 220 potnds for our healing. After consultation it
:01:40. > :01:42.was confirmed as would go ahead In April this year a further
:01:43. > :01:48.consultation was brought out without any review of the impact of the last
:01:49. > :01:52.set of increases, proposing eight sixfold increase in disease in those
:01:53. > :01:55.jurisdictions, to full cost recovery. That would be an
:01:56. > :02:04.application for a paper dechsion proposed to be ?490, and law
:02:05. > :02:08.appealing at ?800. This brings us back to the point we have m`de more
:02:09. > :02:11.than once, there is no eviddnce base to support that level of entries.
:02:12. > :02:15.But there were a might have taken a different approach to it. Btt to do
:02:16. > :02:20.that when at the end of the day people, by in each of these cases
:02:21. > :02:25.are vulnerable, it does not seem to us to be justified. That despite we
:02:26. > :02:27.express ourselves as having considerable concern about those
:02:28. > :02:32.proposals. The final point H would be, as this. I am surprised that the
:02:33. > :02:38.Government have adopted that approach given the expedients over
:02:39. > :02:41.employment tribunal fees and the expedients of the criminal courts at
:02:42. > :02:46.charge because the idea is to make a full cost recovery. But the problem
:02:47. > :02:50.is you are dealing with people who by their nature, if they ard in the
:02:51. > :02:56.asylum or immigration systel, are very unlikely ever to have `ny means
:02:57. > :03:01.to recover even a decent percentage of the cost against, never lind full
:03:02. > :03:07.cost recovery and you end up in the same position as you did with
:03:08. > :03:10.criminal courts charge, and you end that setting our objective that you
:03:11. > :03:16.have no hope of meeting. It is getting blood out of a stond. It is
:03:17. > :03:19.pointless to pursue and an achievable objective in that regard.
:03:20. > :03:26.That is why again we urge the Government to think again there I
:03:27. > :03:34.have endeavoured to outline what is a detailed report. I hope it is a
:03:35. > :03:38.useful one to the House. We make no apology for its detailed because
:03:39. > :03:43.these are issues which impact not just our system, but impact
:03:44. > :03:49.individuals. Every piece of litigation involves an individual
:03:50. > :03:54.somewhere at the end of the day We think the Government has had ample
:03:55. > :03:57.time to consider the report. I hope we will have a substantive report as
:03:58. > :04:01.to when the information will be published, what they will do about
:04:02. > :04:04.the increase in divorce fees, what they will do about realism or
:04:05. > :04:12.otherwise, as we think, abott full cost recovery in the immigr`tion and
:04:13. > :04:16.Asylum chamber, and the othdr pieces of evidence that we have detailed
:04:17. > :04:26.and. I am grateful for the indulgence of the House.
:04:27. > :04:34.Thank you, and could I join in welcoming the work undertakdn by the
:04:35. > :04:37.committee, of which I am a lember. We have been brought to consensus on
:04:38. > :04:42.the recommendations in this report, which I think the Government needs
:04:43. > :04:46.to reflect on very seriouslx. At the heart of the proposals before us
:04:47. > :04:51.today is the issue of access to justice. That is central to the
:04:52. > :04:56.recommendations that we havd made. As the chair of the Justice
:04:57. > :05:00.Committee has said, we remahn concerned first and foremost that
:05:01. > :05:04.the Minister has not yet brought forward the results of the review.
:05:05. > :05:08.That is influenced strongly that I put that has an foot is who we are
:05:09. > :05:12.able to present our report `nd the poise is a big debate and then we'd
:05:13. > :05:17.be has done that. The Minister could have saved a lot of trouble had tea
:05:18. > :05:21.brought forward the information requested in the timescale that we
:05:22. > :05:30.requested it. As members will know, during the course of the 2000-2 15
:05:31. > :05:35.Parliament there was a rangd of policies aimed at reducing the cost
:05:36. > :05:38.of tribunal services through the introduction of a range of previous
:05:39. > :05:44.fees including charges for employment tribunal 's. As the chair
:05:45. > :05:49.of the Justice Committee has said we have looked particularly at whether
:05:50. > :05:53.the increase in court fees `nd the introduction of climate tribunal
:05:54. > :05:56.these affected access to justice. It is fair to say for all membdrs of
:05:57. > :06:03.the committee, particularly in the area I want to focus on, thd
:06:04. > :06:06.recommendationss relating to employment tribunal fees, otr
:06:07. > :06:11.conclusions are straightforward The evidence we have had from the
:06:12. > :06:16.judiciary, from the trade union movement, from organisations dealing
:06:17. > :06:20.with vulnerable people who `re in a particularly vulnerable status
:06:21. > :06:26.relating to maternity provisions or other similar issues, all that
:06:27. > :06:32.evidence has shown that we believe that there is a challenge in
:06:33. > :06:37.relation to the impact of fdes on implement tribunal is as a whole.
:06:38. > :06:40.And then since I make one plea to the Minister, that it would be
:06:41. > :06:45.helpful, if before the summdr recess he could give the commitment that he
:06:46. > :06:49.gave to the committee, to ptblish the information on the results of
:06:50. > :06:53.his one-year review as soon as possible because it is important,
:06:54. > :07:01.given the concerns that we have that that information is put the
:07:02. > :07:05.public domain, because it is information that he said he would
:07:06. > :07:08.deliver to the committee before the committee reported. And the
:07:09. > :07:14.committee, after its report, has still not seen. I will focus if I
:07:15. > :07:21.may on the issue of employmdnt tribunal fees. This is of p`rticular
:07:22. > :07:27.concern to the committee across the House and it is certainly of concern
:07:28. > :07:31.to me. The committee found that the Government had not reported on the
:07:32. > :07:34.review which I have just mentioned. It also had some damning evhdence
:07:35. > :07:42.about the impact of employmdnt tribunal fees on access to justice.
:07:43. > :07:47.Let me touch on a couple of full statistics so that the Housd can get
:07:48. > :07:51.a flavour of why our concerns were there. The number of employlent
:07:52. > :07:58.tribunal cases brought by shngle individuals declined by 67% to
:07:59. > :08:11.around 4500 per quarter, from October 2014, until June 2005.
:08:12. > :08:17.Multiple claims declined by 72% That is a major decline. It is
:08:18. > :08:24.important that Minister reflects on this. Is that decline because there
:08:25. > :08:27.are not injustices continuing in the workplace? Is that decline because
:08:28. > :08:30.there are not people that fdel aggrieved with their implemdnt
:08:31. > :08:36.position? Has that figure ddcline because there are people who feel it
:08:37. > :08:42.is not worth a candle applyhng to the deployments tribunal for
:08:43. > :08:47.justice? On all three points the answer is no. The decline is because
:08:48. > :08:53.of the prohibitive fees the Government has put in place. If we
:08:54. > :08:57.look at statistics supplied by the TUC and the trade union Unison,
:08:58. > :09:04.comparing cases brought in the first three months of 2013, and 2015, we
:09:05. > :09:10.have seen reductions across the board in areas of key industrial
:09:11. > :09:16.activity. Let me give some dxamples. Working Time directive has fallen by
:09:17. > :09:20.78%. That means that the nulber of cases being brought under the
:09:21. > :09:30.working Time directive to elployment tribunals has fallen by 78%. Is that
:09:31. > :09:37.because there are now no employers, or 78% less employers making people
:09:38. > :09:41.work longer than their hours and, dear I see it, European leghslation?
:09:42. > :09:45.If I look at an authorised deductions from wages, a nulber of
:09:46. > :09:52.employment tribunal 's brought has fallen by 56%. Our beer mir`culous
:09:53. > :09:57.activities going on where elployers of stop deducting from wages of
:09:58. > :10:00.individuals unfairly in that period? If that is the information the
:10:01. > :10:03.Minister is supposed to havd with that might help us to understand
:10:04. > :10:08.that fall in the deduction from wages.
:10:09. > :10:17.I'm fair dismissal has falldn. Equal pay claims are down. Breach of
:10:18. > :10:25.contract down by 75% and six discrimination don't as well. One of
:10:26. > :10:27.two things have happened. Ehther employers have dramatically improved
:10:28. > :10:34.the performance over the last two years in those areas. If so, let's
:10:35. > :10:40.have some evidence to show that is the case. Or people who havd been
:10:41. > :10:43.unfairly discriminated against on working time directive, unf`ir
:10:44. > :10:47.dismissal have not taken thd claims to the courts and to the appointment
:10:48. > :10:53.tribunal is because of the fees introduced by the government to
:10:54. > :10:59.date. We had several witnesses. This is not me, this is the commhttee on
:11:00. > :11:04.a cross-party basis. The cl`im could example on maternity pay and
:11:05. > :11:09.pregnancy that try borrowing all fees where having a profound
:11:10. > :11:14.discriminatory effect in relation to pregnant women and new mothdrs who
:11:15. > :11:19.received were treatment at work Roslyn Bland of the maternity action
:11:20. > :11:27.fund said there had been a dropping claims for pregnancy related
:11:28. > :11:31.detriment or dismissal. Not a party political organisation have said
:11:32. > :11:35.that dignity discrimination was no widespread in the public and private
:11:36. > :11:42.sector but very few women wdre able to take action now because of the
:11:43. > :11:46.deteriorating effect of fees. It is particularly clear when we look at
:11:47. > :11:50.the question of low value fdes. Inevitably when people are deciding
:11:51. > :11:55.whether to take a fee to thd tribunal be well with the cost of
:11:56. > :12:01.the feat against the likely size of an award. If the likely sizd of an
:12:02. > :12:05.award is very low at its sthll a matter of access to justice and a
:12:06. > :12:10.matter of feeling strongly `bout an issue remains high, that level of
:12:11. > :12:14.fee is pitting of people from taking claims to Troy and to tribunal.
:12:15. > :12:22.Listen to me. That employment tribunal. Judges told us th`t. There
:12:23. > :12:26.had been a marked client in unfair dismissal, holiday pay, the types of
:12:27. > :12:35.cases rocked by ordinary working people. The words, not mine. This
:12:36. > :12:40.indicates to me, Madam Deputy Speaker, that there is a problem
:12:41. > :12:45.here. The problem needs to be looked at seriously by the Minister. If his
:12:46. > :12:51.evidence indicates that this is not the problem we think it says, bring
:12:52. > :12:54.it forward, let's have a look at it. The Council of employment jtdges
:12:55. > :12:59.further told us that many jtdges reportedly now hear no monex claims
:13:00. > :13:04.at all. Prior to the introdtction of fees money claims are often brought
:13:05. > :13:10.by low paid workers in sectors such as care, it's Judy, hospitality
:13:11. > :13:14.cleaning. And in some cases these small amounts were signific`nt to
:13:15. > :13:19.the individuals involved. The refugee defences to such cl`ims the
:13:20. > :13:23.often succeed but now they `re not being taken forward accordingly
:13:24. > :13:28.That, I think, it should be a worry to the House at also in conclusion
:13:29. > :13:33.to my contributions on this matter, in the written evidence unison used
:13:34. > :13:40.figures for median awards for different types of discrimination
:13:41. > :13:47.claims for 2012 to 2013. Re`ching from just under 4504 age
:13:48. > :13:52.discrimination cases to ?7,400 in disability discrimination. These
:13:53. > :13:55.fees constituted such a high proportion of probable awards that
:13:56. > :13:59.many claims are not going to go forward because people find it
:14:00. > :14:05.excessively difficult to brhng forward. A survey by the citizens
:14:06. > :14:09.advice you now indicated 47$ of the respondents would have to ptt aside,
:14:10. > :14:15.wait for this, would have to put aside six months of their
:14:16. > :14:21.discretionary income to afford the ?1200 needed to bring a typd to
:14:22. > :14:26.claim. If an individual feels aggrieved but if an individtal has
:14:27. > :14:30.du say on a low income I will have whipped away six months of ly
:14:31. > :14:32.discretionary income, self-evidently, people who have a
:14:33. > :14:39.just claim will not take it forward because of that discretionary fee
:14:40. > :14:43.being imposed. I thank my honourable friend for giving way. Does he also
:14:44. > :14:48.concurrent with the reports that have found with some of the trade
:14:49. > :14:51.unions in particular women `nd black and Asian people who have bden
:14:52. > :14:57.affected by the fees and not being able to afford the fees that my
:14:58. > :15:00.honourable spend speaks abott. I think it is important particularly
:15:01. > :15:06.because many women particul`rly are in low paid jobs. It is the natural
:15:07. > :15:11.discrimination in many areas for the MA communities on employment
:15:12. > :15:14.purposes. The key thing I al putting in a case for the government to
:15:15. > :15:19.respond to an cases of employment fees. We have had evidence that the
:15:20. > :15:23.committee that says that thd discriminatory effect of those fees.
:15:24. > :15:26.The government have investigated this previously and not yet produced
:15:27. > :15:31.a report showing whether thdy believe that to be the case or not.
:15:32. > :15:36.There may be other reasons. I do not doubt there are. The key thhng from
:15:37. > :15:42.today's report is for the government to divide evidence to this House
:15:43. > :15:46.because this committee was tnanimous in that this was a discriminatory
:15:47. > :15:51.effect. It was detaining cl`ims and those claims were from the coolest,
:15:52. > :15:58.lowest paid with most insectre employers. Therefore it is hurting
:15:59. > :16:01.those who have no other defdnce from the employment tribunal fees which
:16:02. > :16:06.is now out of each because of the cost of those fees. That is an
:16:07. > :16:10.access to justice matter on a cross-party basis we have agenda
:16:11. > :16:15.that and said we think therd is a real case to answer on that. It is
:16:16. > :16:22.for the government minister today and future in response to this
:16:23. > :16:27.report to answer that case. It is a great pleasure to follow thd member
:16:28. > :16:32.just doubt that there is to follow my honourable friend the ch`irman of
:16:33. > :16:35.the committee. The difficulty for me at this stage is that in both
:16:36. > :16:40.presentations they have alrdady covered all of the issues that I was
:16:41. > :16:45.going to cover. Let me touch on one because I think the member has
:16:46. > :16:52.highlighted this. The key issue for all of us write this post s`ys was
:16:53. > :16:56.the question of access to jtstice. I think that comes through in what my
:16:57. > :17:00.honourable friend the chairlan of the committee said as well. It is a
:17:01. > :17:07.big issue for us write this committee. It is also a big issue
:17:08. > :17:13.for the courts. For the senhor judiciary in this country. Not just
:17:14. > :17:16.for us. I have an doing a fdllowship for the industry and Parlialent
:17:17. > :17:21.trust that has involved me sitting with senior members of the judiciary
:17:22. > :17:26.in this country and I have had an opportunity to talk to them about
:17:27. > :17:30.many of these issues. I can assure you that the members of the
:17:31. > :17:37.judiciary are very concerned about access to justice. Now the point of
:17:38. > :17:43.telling these bets that I'm now going to tell you is that whthout
:17:44. > :17:48.these information is providdd by the Ministry of Justice it is dhfficult
:17:49. > :17:54.to know where the impact of the changes that are being made is
:17:55. > :17:57.coming from. The reason I s`y that is because there are an enormous
:17:58. > :18:02.number of reforms that are taking place. It is not just a question of
:18:03. > :18:08.Port fees and tribunal fees that are being put through at a rapid pace by
:18:09. > :18:15.the Ministry of Justice. Th`t court fees. The Lord chief justicd himself
:18:16. > :18:21.is a great reformer. He is ` great reforming Lord Chief. If yot talk to
:18:22. > :18:27.him you really get the feelhng that he understands the issues of access
:18:28. > :18:33.to justice. You also have at the same time Lord Justice breaks taken
:18:34. > :18:38.forward his views from online court. The reason for that is in order to
:18:39. > :18:43.reduce the costs of justice by taking out lawyers from the equation
:18:44. > :18:49.in bringing a relatively sm`ll case to court. I know that there is a lot
:18:50. > :18:55.of work that needs to be done to get the details of the online court is
:18:56. > :18:59.right the first time. Nevertheless, it is there in order to provide
:19:00. > :19:05.access to justice. In the rdport we also highlight the need to look at
:19:06. > :19:12.other means of determining court applications. One of those comes
:19:13. > :19:17.under the terms alternative dispute resolutions. I happen to be the
:19:18. > :19:22.chairman of the all-party Parliamentary group on alternative
:19:23. > :19:28.dispute resolutions. It is `n area that I am a way of. The courts to
:19:29. > :19:31.our way of this and when I sat in the commercial courts with the
:19:32. > :19:37.judges the day were very kedn to ensure that where there was an
:19:38. > :19:41.option of people who came to the courts for going for altern`tive
:19:42. > :19:49.dispute resolution that the ticket. Some of them dead and some of then
:19:50. > :19:54.didn't .- the to it. It is hmportant to offer them that as an alternative
:19:55. > :19:59.to carrying on with their d`y in court. If they do take that there is
:20:00. > :20:02.an important issue of the sdctor itself and the alternative dispute
:20:03. > :20:11.resolution sector of making sure that they too can keep costs down.
:20:12. > :20:18.When I sat with judges in the courts the thing that was on the mhnd all
:20:19. > :20:22.the time was how to keep costs down. We went through this with the lot of
:20:23. > :20:31.the cost hearing is and cut out quite a lot of the barristers fees
:20:32. > :20:39.that were involved. Therefore it is important to ensure that we can tell
:20:40. > :20:43.whether it is the effect of those changes to the courts that `re
:20:44. > :20:49.having the effects on tribunal numbers and that sort of thhng or
:20:50. > :20:59.whether it is the effect of the fees that are being charged for those
:21:00. > :21:03.sort of activities. No, I s`y this because, as part of the expdrience,
:21:04. > :21:12.I spent a day with an emploxment tribunal. I asked when I went there,
:21:13. > :21:16.there were three members sitting for this ploy on tribunal, I asked how
:21:17. > :21:23.long disappointment tribunal was going to go on for and they said we
:21:24. > :21:27.have scheduled this for six days. -- employment tribunal. Six daxs for an
:21:28. > :21:35.employment tribunal which could have lasted just about one day. So, the
:21:36. > :21:38.court fees had not had an significant effect in this
:21:39. > :21:43.individual bringing their c`se but they had assigned six days to it
:21:44. > :21:48.because it was a litigant in person and they wanted to bend over
:21:49. > :21:52.backwards to provide the expertise, the time for that individual to make
:21:53. > :21:58.his case. Now, a much more sensible approach to that would have ensured
:21:59. > :22:06.that the case was on for a long less time while still preserving access
:22:07. > :22:13.to justice and still insular in what the litigant in person was wanting
:22:14. > :22:17.to achieve could still be achieved. So, the senior judiciary have been
:22:18. > :22:21.pursuing one line of cost rdduction while the government has bedn
:22:22. > :22:25.pursuing another line of cost reduction. He lives in wrong with
:22:26. > :22:32.that are seeing this along ` twin track provided that the two groups
:22:33. > :22:35.work together and tock together The thing that came back to me from the
:22:36. > :22:39.senior judiciary that I sat with was that the government was not talking
:22:40. > :22:45.to them about the changes they were making. I think that is a great
:22:46. > :22:50.shame in the way forward because, without that, I do not see how we
:22:51. > :22:57.can make sense. And to really get to the bottom of the access to justice
:22:58. > :23:02.element to this. I honourable friend the chairman of the committde has
:23:03. > :23:07.already highlighted the isstes of the impact assessment of thd changes
:23:08. > :23:13.to court fees and the fact that the information is still not av`ilable.
:23:14. > :23:15.He also pointed out that thd master of the roles was absolutely scathing
:23:16. > :23:21.about the quality of that evidence and I would just put that on record
:23:22. > :23:26.again because I think it is very important when somebody as senior as
:23:27. > :23:31.the master of the robes comds along and is critical of the government's
:23:32. > :23:39.approach to that. I have two say I do share his views in this. The
:23:40. > :23:45.court and tribunal fees is not a milk cow. It is a real issud of
:23:46. > :23:49.access to justice. Without the information that we still h`ve not
:23:50. > :23:55.received we cannot assess the impact of these fees on the access to
:23:56. > :24:03.justice issue and what impact they will have.
:24:04. > :24:11.Thank you for calling me in this very important debate. I ought to
:24:12. > :24:17.start by making the direct declaration of interests in that my
:24:18. > :24:22.wife sits as a tribunal judge, part-time judge, in the sochal
:24:23. > :24:30.entitlement tribunal. She is also a criminal solicitor receiving public
:24:31. > :24:36.money. Prior to my collection to this House I was with a barrister is
:24:37. > :24:46.Chambers in Halle where I practised criminal law and a recently I have
:24:47. > :24:53.read in rules to the role of solicitor. I welcome this rdport. I
:24:54. > :24:58.ought to set out from the ottset that the chairman of the colmittee
:24:59. > :25:07.goes about his business in ` very fair way. He is entirely impartial
:25:08. > :25:13.and completely objective, in my respectful opinion. I welcole the
:25:14. > :25:18.report. I welcome the recommendations by the commhttee
:25:19. > :25:25.urging the Government to publish the impact on employment tribun`l fees.
:25:26. > :25:30.I also welcome the Select Committee 's proposal that fees must be
:25:31. > :25:38.substantially reduced. It is worth noting, and I make a party political
:25:39. > :25:43.point here, but it is worth noting that the Labour Party in opposition,
:25:44. > :25:47.when these fees were being considered and discussed, absolutely
:25:48. > :25:52.opposed them. We opposed thdm all the way along in the debate and the
:25:53. > :25:56.discussions. I remember attdmpting to speak with Avis ministers at the
:25:57. > :26:04.time to make submissions directly to them. I cannot remember if H got a
:26:05. > :26:08.sit down meeting with ministers but I do recall chasing ministers
:26:09. > :26:14.through the lobby, telling them what I thought the problem with these
:26:15. > :26:25.fees would be, what the consequences would be. But we also as an
:26:26. > :26:32.opposition voted absolutely against these fees. Why? Because we knew
:26:33. > :26:37.from the evidence, from the experts, from people who were contacting us,
:26:38. > :26:42.from unions, from the citizdns advice bureau briefings, and from
:26:43. > :26:45.everybody else, from the bar counsel, from the Law Society, from
:26:46. > :26:55.anybody that knows anything about this area, we knew it was unlikely
:26:56. > :27:05.to work. Tribunal 's have dropped by a massive 70%. A huge percentage. We
:27:06. > :27:11.cannot be going to pretend, and I doubt whether the Minister hn any
:27:12. > :27:18.good conscience would get to the dispatch box and pretend th`t the
:27:19. > :27:24.majority of those cases where without merit. What does thhs mean?
:27:25. > :27:32.It means that people are behng shut out of accessing justice. I should
:27:33. > :27:37.pay tribute as well to Unison the union because they have brotght
:27:38. > :27:46.legal challenges in judicial review. The latest cases to be heard by the
:27:47. > :27:51.Supreme Court later this ye`r. I am not about to suggest what the
:27:52. > :28:01.outcome might be that I think it seems to me, as a lawyer, pretty
:28:02. > :28:05.favourable for the union. When these fees were introduced we werd told by
:28:06. > :28:10.the Government that they were introduced to pay for the elployment
:28:11. > :28:19.Tribunal services running costs But it is not working. In 2014-2015 the
:28:20. > :28:26.Ministry of Justice say that net income from the fees is ?9 lillion
:28:27. > :28:31.but the expenditure of the service, the employment Tribunal service is
:28:32. > :28:38.?71.4 million. Thousands of workers are being shut out of seeking
:28:39. > :28:52.justice. That leads me to think that this is ideological. They'rd right
:28:53. > :28:57.honourable member for Surrex Heath, has overturned so much policy of his
:28:58. > :29:02.predecessor that the rumour in this place is that he is considering
:29:03. > :29:11.changing the name of his chhldren, so it would not harm anybodx if the
:29:12. > :29:15.Justice Secretary said, this is not working, we did not expect this to
:29:16. > :29:20.be the fiasco that that has become, we can do something about this. We
:29:21. > :29:32.should scrap it and we should scrap it now. Much of the preliminary work
:29:33. > :29:42.was carried out in the earlx days of the Coalition Government whdn I had.
:29:43. > :29:47.I acknowledge the point madd by my colleague that the issues are
:29:48. > :29:50.complex and depend on the dhfferent circumstances. As an opening
:29:51. > :29:54.observation I do think that there is a level of understanding now that
:29:55. > :30:01.was not generally prevalent back then. Firstly that you have a decent
:30:02. > :30:06.court service, to have decent quality courts, and an excellent
:30:07. > :30:11.quality of judge, as we do, all of that costs money. Secondly, that
:30:12. > :30:15.this cost should not just bd for the taxpayer to shoulder. For instance
:30:16. > :30:25.we invested ?300 million in providing a state of the art Rolls
:30:26. > :30:35.building. This gives the UK the quality of court to maintain its
:30:36. > :30:41.position as the key place and therefore offering greatly to the
:30:42. > :30:44.income of UK plc. But I havd to ask whether their high value cases
:30:45. > :30:50.should be subject to a ?10,000 fee cap. The first case we heard in the
:30:51. > :30:56.Rolls building involved to Russian oligarchs and would have cost them
:30:57. > :30:59.hundreds of thousands of potnds per week in a lawyer costs, but
:31:00. > :31:03.relatively cheap to hire thd court and to judge. I appreciate concerns
:31:04. > :31:08.that costs should not be so high that I would appreciate hearing from
:31:09. > :31:12.the Minister of whether we currently have the balance right therd. When
:31:13. > :31:16.it comes to employment tribtnals the claimant figures may be smaller most
:31:17. > :31:21.of the time that the principle still remains that the service has to be
:31:22. > :31:24.paid for. Appreciating that an appointment contract is a private
:31:25. > :31:27.contract that does not involve the state except with a state of the
:31:28. > :31:32.employer itself, we do need to ask why it should be the taxpaydr that
:31:33. > :31:36.subsidises the private clail. I think that we know basicallx have
:31:37. > :31:41.the right formula which is to say that so far as possible, and as a
:31:42. > :31:46.starting point, the fees pahd by the applicant should cover the cost of
:31:47. > :31:51.the application. But followhng that, where it is in the interest of
:31:52. > :31:54.justice, people who need help should be individually assisted through a
:31:55. > :32:01.remission scheme. In this context I have to say that I do not agree with
:32:02. > :32:04.the suggestion that the overall they should be reduced and I do not
:32:05. > :32:10.believe that the report justifies this in any sense that I do except
:32:11. > :32:14.that it has been acknowledgdd that more data is required to make the
:32:15. > :32:22.assessment. The figures for employment tribunal is our laterial,
:32:23. > :32:26.67% less single cases, although that represents tens of thousands of
:32:27. > :32:34.claims per year being made, the fall in multiple cases by 72% was more to
:32:35. > :32:37.be expected as there was a large number of public sector equ`l pay
:32:38. > :32:41.claims working their way through the system, so if all was to be
:32:42. > :32:44.expected. However there seels to be some debate as to what extent these
:32:45. > :32:49.have put people off claiming and I think this will always be a
:32:50. > :32:53.difficult figure to tie down. I note that the Justice Committee specially
:32:54. > :32:57.to do that it could be 13,000 people per year based on 26% of AC@S
:32:58. > :33:00.claimants saying they would not progressed The Queen becausd they
:33:01. > :33:13.found the fees off-putting. A similar proportion -- would not
:33:14. > :33:24.progress there claim becausd they found the fees off-putting.
:33:25. > :33:29.These are all important isstes and I will come back to them. But they did
:33:30. > :33:34.not form the starting point of our initial review which was firstly to
:33:35. > :33:38.get those who could pay to do so. Secondly to encourage partids to
:33:39. > :33:42.seek alternative methods of dispute resolution where possible. @nd also
:33:43. > :33:45.maintain access to justice. I still maintain that those were sotnd
:33:46. > :33:49.principles on which to procded and I think that this has been justified
:33:50. > :33:55.by the very many judicial rdviews, mainly from the trade unions, which
:33:56. > :33:59.to date have consistently found For my part I believe that when I
:34:00. > :34:04.claimants could issue a clahm form at your cost to themselves, he or
:34:05. > :34:09.she had every incentive to do so. But most importantly every hncentive
:34:10. > :34:14.to do so, whatever their we`kness of the claim itself. The Justice
:34:15. > :34:19.Committee report describes ` witness who says fixation claims max be less
:34:20. > :34:26.than 5% of claims. That still represents a significant nulber for
:34:27. > :34:29.the unfortunate companies stbjected to them. Witnesses also states that
:34:30. > :34:43.these had declared claimants who would otherwise have one...
:34:44. > :34:48.He says 5% is significant btt here we are talking about Falls of 7 %.
:34:49. > :34:54.If he is concerned about discouraging frivolous clails a
:34:55. > :34:58.small charge, not a charge of ? 200, might be appropriate. Does he not
:34:59. > :35:04.think this is disproportion`te even if he agrees with the princhple
:35:05. > :35:11.Looking directly at the point he makes, the starting point is to get
:35:12. > :35:14.cost recovery and then to look at individual circumstances whdre
:35:15. > :35:19.necessary. I would have likdd previous honourable members to have
:35:20. > :35:26.spent more time talking abott the remission system rather than the
:35:27. > :35:31.fees. Perhaps one of my honourable friend is about to do so. That might
:35:32. > :35:37.be because there are more c`ses which I settles before tribtnal what
:35:38. > :35:40.I would say is even if this is an access to justice issue it hs one
:35:41. > :35:46.that should be dealt with through the remission system. What H
:35:47. > :35:50.personally recall, the signhficant numbers of businesses compl`ining
:35:51. > :35:55.that the threat of implement claims alone was enough to put thel of
:35:56. > :35:58.employing more people. This is more prevalent amongst small bushnesses
:35:59. > :36:03.than large ones. This is reflected in the Justice Committee's report
:36:04. > :36:10.which clearly shows the CBI to be more relaxed than the organhsation
:36:11. > :36:14.for small businesses. This hs because larger companies have large
:36:15. > :36:19.departments that can manage claims as part of overall business. For
:36:20. > :36:29.small businesses, managing ` claim can take up an impossible alount of
:36:30. > :36:33.the principles time. Does he accept though that this
:36:34. > :36:37.still gives the employer in and fair financial advantage over thd
:36:38. > :36:40.claimant and ultimately, regardless of big or small firms, the largest
:36:41. > :36:48.cost is borne by the claimant themselves? The lady talks `bout and
:36:49. > :36:58.fair advantage. I am not sure who she is defining it but if it is a
:36:59. > :37:05.single employer, most of thd membership of FSB is a 2-person
:37:06. > :37:09.business, so if it is said that that is against one employee that is not
:37:10. > :37:20.fair, I would say not. The `nswer is it depends on circumstances. The
:37:21. > :37:22.fact also remains that therd is more to business confidence than
:37:23. > :37:26.statistics so that the indirect impact of fees has been to change
:37:27. > :37:30.this perception amongst bushness orders, which I feel it has, then
:37:31. > :37:34.fees have made a significant contribution to an economy which is
:37:35. > :37:38.delivering the creation of the highest level of employment the UK
:37:39. > :37:43.has ever enjoyed and we would be cautious to meddle with that. The
:37:44. > :38:02.big change to this area frol when I was in the... The number of claims
:38:03. > :38:07.being handled by ACAS seems to me to be positive. It was a policx of the
:38:08. > :38:11.last Labour Government, the Coalition Government, this
:38:12. > :38:18.Government, that that would be cheaper, quicker, more consdnsual, I
:38:19. > :38:25.would be interested to hear that the Minister has plans to incre`se this
:38:26. > :38:29.further. In terms of access to justice, I notes that the rdport is
:38:30. > :38:38.limited at looking at the status quo. Fees versus remissions. That
:38:39. > :38:44.has something of the viewing of trade union influence.
:38:45. > :38:49.Would he like to comment on the specific proposal that we m`ke
:38:50. > :38:53.around remission that there should be an apt reading of the vessel to
:38:54. > :39:03.take account of inflation otherwise there is risk of fiscal drag? That
:39:04. > :39:12.is a useful thing to look at, and perhaps a wider review on how
:39:13. > :39:17.remission is working is also due. I would accept that these things need
:39:18. > :39:20.to review. But it also overlooks the changing nature of the fundhng of
:39:21. > :39:26.legal claims now and possibly in the future. The use of loans to fund
:39:27. > :39:30.claims, or the use of no-win no fee agreements. It assumes that the
:39:31. > :39:34.burden of risk is super to be shared between claimant and defend`nt which
:39:35. > :39:40.does not reflect reality. What about the risk of claims being sh`red out
:39:41. > :39:46.between insurers, lenders, lawyers and trade unions? Should we not be
:39:47. > :39:48.investigating what will ever of risk they should take on before the
:39:49. > :40:01.taxpayer steps then? We need to look at innovative ideas
:40:02. > :40:05.and an assessment of what is going on in the wider marketplace. I would
:40:06. > :40:11.be grateful to hear the govdrnment's views on these things. This debate
:40:12. > :40:19.is apparently about courts `nd tribunal fees but it is unfortunate
:40:20. > :40:22.that this government's reform of courts and tribunal fees has been
:40:23. > :40:28.pursued as part of a wider government has said to programme. In
:40:29. > :40:32.practical terms this means tribunal fees introduced in 2013 reqtires
:40:33. > :40:36.financial contribution from claimants to have their casds heard
:40:37. > :40:43.and further fees looks set to be imposed. When the governancd and
:40:44. > :40:47.function of the management `nd operation of employment tribunal is
:40:48. > :40:51.devolved in Scottish Parlialent in 2017 the First Minister of Scotland
:40:52. > :40:58.has outlined her concerns about the system and has expressed her desire
:40:59. > :41:01.to look forward to abolishing fees for employment tribunal. Access to a
:41:02. > :41:06.fair hearing and fair work should not be the reserve of those who can
:41:07. > :41:11.raise the funds to have thehr voices heard in the interest of justice and
:41:12. > :41:16.risks falling foul of the Htman Rights Act. Of course we have heard
:41:17. > :41:24.part of the reason for introducing such payments was to discourage
:41:25. > :41:27.vexatious claims which was hn costing the employee nothing but
:41:28. > :41:33.could cost the employer significant legal costs. However, since these
:41:34. > :41:37.fees were introduced we know there was a significant drop in the number
:41:38. > :41:41.of claims accepted by the appointment tribunal. Is anxone
:41:42. > :41:44.seriously suggesting the drop can be accounted for Isil called wdak and
:41:45. > :41:54.vexatious claims no longer been pursued? Surely the real re`son for
:41:55. > :41:59.the drop in claims must mean many of these ploys simply cannot afford to
:42:00. > :42:05.pursue their cases due to the costs involved. Effectively being priced
:42:06. > :42:10.out of the justice system. H thank the honourable lady for givhng way.
:42:11. > :42:14.I believe what you said. Organisations have a loss for
:42:15. > :42:19.example in Coventry the will tell you they are inundated with people
:42:20. > :42:24.who cannot get justice at tribunal is because they cannot afford it.
:42:25. > :42:29.The real reason for the cuts in those sort of budgets was vdry much
:42:30. > :42:35.about the economic situation as part of the government was my phhlosophy
:42:36. > :42:41.to make gigantic cuts. It ddnies people basic justice. That hs the
:42:42. > :42:45.important point. This is not about a justice agenda. This is abott an
:42:46. > :42:49.ideological driven motivation towards austerity. That is
:42:50. > :42:55.effectively hitting those who cannot raise the funds for justice and
:42:56. > :43:00.surely now one can defend this? Research undertaken as the
:43:01. > :43:03.honourable gentleman has pohnted out by the citizens advice has
:43:04. > :43:08.demonstrated an eye watering 82 of those surveyed who when expdriencing
:43:09. > :43:12.problems at work said they would be deterred from bringing a cl`im due
:43:13. > :43:19.to the fees. Only 29% of those respondents were aware that the code
:43:20. > :43:22.apply for fee or mission. Wd have heard a similar chorus of concern
:43:23. > :43:27.from the Law Society of Scotland and other experts which showed genuine
:43:28. > :43:31.cases are not reaching tribtnal 's due to the prohibitive fees. The
:43:32. > :43:36.impact on women is particul`rly damaging and are the result unlawful
:43:37. > :43:42.appointment practices are undeterred and going unpunished. Let's look at
:43:43. > :43:48.the other evidence we have that such fees only barrier to justicd. On the
:43:49. > :43:52.20th of June the justice colmittee published its review into court and
:43:53. > :43:56.tribunal fees and find that the introduction of fees for cl`imants
:43:57. > :44:02.and tribunal employment tribunal is as lead to a drop of almost 70% in
:44:03. > :44:06.the number of cases being brought forward and find further ch`nges are
:44:07. > :44:11.urgently needed to restore `n acceptable level of access to the
:44:12. > :44:16.employment tribunal system. That, by definition, it shows the justice
:44:17. > :44:20.committee, after its investhgations and deliberations, find the current
:44:21. > :44:24.level of access to the employment tribunal system is not currdntly at
:44:25. > :44:27.acceptable levels. That is why then these powers are devolved to
:44:28. > :44:35.Scotland these fees will be abolished. Access to justicd cannot
:44:36. > :44:38.and must not be limited to those who can afford it. That is not
:44:39. > :44:46.acceptable in any country that seeks to see itself as enlightened and
:44:47. > :44:50.democratic. Despite talk of austerity politics is about choices.
:44:51. > :44:55.These choices are based on the shared values of the societx in
:44:56. > :45:00.question. It is as simple as that. To quote the honourable member for
:45:01. > :45:05.Bromley and Chislehurst to cheers the justice committee who s`id we're
:45:06. > :45:09.there is conflict between the objectives of achieving full cost
:45:10. > :45:15.recovery and preserving accdss to justice, the latter must prdvail. I
:45:16. > :45:21.could not agree more. Worryhngly, as has already been pointed out, it has
:45:22. > :45:24.been a lengthy delay in the government's posed mentation review
:45:25. > :45:31.of the impact of employment tribunal fees which aims to their effect
:45:32. > :45:35.against me that three main objectives, taken the cost `way from
:45:36. > :45:39.the taxpayer and those who can afford to pay and encouraging
:45:40. > :45:42.parties to seek up relative ways to resolve disputes while maintaining
:45:43. > :45:48.access to justice. Like the honourable member for Bromldy and
:45:49. > :45:54.Chislehurst I am concerned that such an implementation review has not
:45:55. > :46:00.taken place. However, today is an estimate state debate and I crave
:46:01. > :46:04.your indulgence for a few moments. I would like for this House to be in
:46:05. > :46:08.mind that it is an estimate state debate and I believe it was Benjamin
:46:09. > :46:13.Franklin who said the only certainties in life where ddath and
:46:14. > :46:18.taxation. He was certainly right about the first but recent dvents
:46:19. > :46:23.might suggest he is a wee bht off the mark with the second. However,
:46:24. > :46:28.there is another certainty hn life which Mr Franklin overlooked. The
:46:29. > :46:31.one thing you may be sure what that will not be debated through a
:46:32. > :46:37.Westminster debate on estim`tes are the actual estimates. This hssue may
:46:38. > :46:40.not exercise the minds of the general public but that is because
:46:41. > :46:44.it is not well-known outsidd this way is just how little scrutiny
:46:45. > :46:50.there is of the spending pl`ns of departments. These scrutiny is
:46:51. > :46:56.negligible. It has suited stccessive governments of all persuasions that
:46:57. > :46:59.it should be so. If the public knew just how inscrutable this process
:47:00. > :47:07.was they would quite rightlx be alarmed. The estimates procdss is a
:47:08. > :47:12.very technical process by which spending is approved by parliament.
:47:13. > :47:19.I further crave your indulgdnce for just a few minutes more. If you will
:47:20. > :47:25.allow me to recall that durhng the evil debate the leader of the is
:47:26. > :47:28.noted the possibility of a review of the estimates process will seem to
:47:29. > :47:35.be completely adamant that dstimates already allows for affecting the
:47:36. > :47:39.Barnett consequential. The procedure committee on which I set is
:47:40. > :47:43.continuing to review the estimates process and many very distinguished
:47:44. > :47:49.and Leonard expats, far mord distinguished than I, from `ll
:47:50. > :47:54.sides, have argued while discussing EVEL that the estimate procdss is
:47:55. > :47:58.simply not fit for purpose. The way the House deals with the estimates
:47:59. > :48:02.and supply process is not sustainable. We need to havd proper
:48:03. > :48:09.debate around the supply procedure to agree clarity and Barnett
:48:10. > :48:13.consequential. The scrutiny of the estimates process is not robust and
:48:14. > :48:17.there's parliament has the least scrutinised spending arrangdments in
:48:18. > :48:24.the Western world in this so-called mother of Parliaments. Madal Deputy
:48:25. > :48:31.Speaker, for just one minutd more if you continue to leave your
:48:32. > :48:36.indulgence, Adam Tolkien's hs now a conservative member of the Scottish
:48:37. > :48:43.Parliament and he told the procedure committee on the 8th of September
:48:44. > :48:47.last year that, and I quote this gentleman for fear of
:48:48. > :48:52.misrepresenting him, whatevdr we do with English votes for Englhsh laws
:48:53. > :48:56.has to be made practical and operational in the light of and
:48:57. > :49:02.through using the Barnett formula. I think that can happen, he wdnt on,
:49:03. > :49:05.but I think it can happen only if there is a clear opportunitx for MPs
:49:06. > :49:10.representing constituencies from across the whole of the UK
:49:11. > :49:16.effectively and robust lead to engage in deliberation and debate in
:49:17. > :49:20.the supply and estimate process At the moment, he continued, there
:49:21. > :49:24.seems no such opportunity cost estimate debates tend to be very
:49:25. > :49:32.wide-ranging. About everythhng other than estimates. The fly in the
:49:33. > :49:34.ointment, he concluded, is to have this current inability or
:49:35. > :49:41.unwillingness to debate robtst lead and effectively are mentallx
:49:42. > :49:44.estimates. The processes such, Madam Deputy Speaker, that these
:49:45. > :49:49.procedures simply do not give MPs the full opportunity to scrttinise
:49:50. > :49:55.any Barnett consequential of England only or England and Wales only
:49:56. > :49:59.legislation and that is reqtired in a healthy and mature Parlialentary
:50:00. > :50:06.democracy. And you need not take my word for it. We have the emhnent
:50:07. > :50:09.opinion of the Conservative member of the Scottish Parliament telling
:50:10. > :50:16.us this. An expert in his fheld or so I have been told. It shotld be a
:50:17. > :50:22.consequence of EVEL that thd supply process the revolved in this matter
:50:23. > :50:27.been a process of development. The very words used by the leaddr of
:50:28. > :50:34.this House on the 22nd of October 20 15. I thank Madam Deputy Spdaker for
:50:35. > :50:37.satisfying my craving for hdr indulgence and I will return no
:50:38. > :50:44.moment Hanley to employment tribunal fees. Just for clarity, I should
:50:45. > :50:49.tell the House and the honotrable lady that she is perfectly hn order.
:50:50. > :50:55.She is talking about estimates. This is an estimates day. Whatevdr anyone
:50:56. > :51:03.else says, in my judgment, the points she is making are perfectly
:51:04. > :51:08.reasonable and ought to be debated. I thank Madam Deputy Speaker
:51:09. > :51:12.enormous and for that support of comment. Regarding tribunal fees the
:51:13. > :51:16.SNP government in Scotland understands as I viewed the UK
:51:17. > :51:20.Government does not yet seen to that the introduction of these fdes is
:51:21. > :51:26.significant barrier to justhce. Not least for well in facing maternity
:51:27. > :51:32.discrimination and who cannot afford to take a rogue employer to a
:51:33. > :51:35.tribunal. Last year a report for the Department of business, innovation
:51:36. > :51:40.and skills and the equality and human rights commission found that
:51:41. > :51:45.unlawful maternity and paternity discrimination is now more common in
:51:46. > :51:50.the UK work ways than ever before. As many as 54,000 pregnant women and
:51:51. > :51:55.new mothers, one in nine, bding forced out of their jobs each year
:51:56. > :52:02.will stop we in Scotland will listen to the expats. We will abolhsh these
:52:03. > :52:05.repetitive and punitive fees. It is the right thing to do and jtstice
:52:06. > :52:13.must be the guiding principle of all that we do. When any state puts a
:52:14. > :52:19.price on justice for its citizens, that is a state in peril. I urge the
:52:20. > :52:21.Minister to reflect on this and reconsider the pernicious effects of
:52:22. > :52:31.such fees on ordinary working people. I am most grateful for the
:52:32. > :52:36.opportunity to speak into Dhbaba 's Mike debate and indeed to follow
:52:37. > :52:41.such expedience and indeed learn and speakers from across the Hotse. If I
:52:42. > :52:45.made, and good to concentrate on court and tribunal fees this
:52:46. > :52:49.afternoon. I am grateful for the opportunity to have served on the
:52:50. > :52:53.committee which produced thhs report and I wholeheartedly endorsd this
:52:54. > :52:56.report and its recommendations. I want to focus not on the more
:52:57. > :53:02.newsworthy aspects of the rdport such as climate tribunal 's hole on
:53:03. > :53:07.the structure and permission of fees. Having said that, it hs
:53:08. > :53:13.important to say it is crithcal that fees do not impede access to
:53:14. > :53:17.justice. These are useful and indeed necessary, in my view, for two
:53:18. > :53:22.reasons. Firstly they help pay for the justice system which my friend
:53:23. > :53:27.from Huntingdon reminded us. Secondly fees can be used
:53:28. > :53:31.effectively to declare frivolous and vexatious claimants. As ever as has
:53:32. > :53:35.been said across the House this afternoon getting the balance right
:53:36. > :53:38.is key. The introduction of fees before employment tribunal has had
:53:39. > :53:45.clearly an enormous impact on the number of places issued. It was
:53:46. > :53:50.right that we focused on th`t. I also know, from speaking to many of
:53:51. > :53:53.my fellow barristers, that the increases have had a signifhcant
:53:54. > :53:59.impact in other areas. Parthcularly in the area of recessional
:54:00. > :54:02.negligence. It is not the wdalthy of my fellow barristers that concerns
:54:03. > :54:07.me, it is the welfare of thd individuals. Perhaps those hnjured
:54:08. > :54:11.during the course of medical treatment which goes wrong or cannot
:54:12. > :54:19.then issue claims which could be of concern to us today.
:54:20. > :54:26.We look closely at fee structure and they remission and be received
:54:27. > :54:31.evidence from the bar counchl and the Law Society amongst othdrs. One
:54:32. > :54:35.suggestion put forward to alleviate the deterrent effect of increases
:54:36. > :54:40.was to allow these to be met in a series of staged payments throughout
:54:41. > :54:44.the course of a claim. At fhrst glance staged fees seemed a good
:54:45. > :54:48.idea to as, but this was not universally supported by thd
:54:49. > :54:54.evidence that was given by the senior judiciary. Lord Dyson and Sir
:54:55. > :55:01.James Monday were hesitant `bout staging fees. Lord Dyson told as it
:55:02. > :55:06.was not a proposal he had previously thought about and while he `greed it
:55:07. > :55:12.was an interesting idea he voiced concerns about who they staging
:55:13. > :55:14.might be used by respondents to put pressure on claimants at dahly
:55:15. > :55:22.stages of the litigation. One solution suggested is to adopt the
:55:23. > :55:25.Scottish civil justice model of requiring a responded's fee to be
:55:26. > :55:32.paid alongside sequential fdes for claimants. This, he said, would
:55:33. > :55:37.level the playing field and face the risk or feeling on both parties As
:55:38. > :55:41.the evidence did not point clearly one way or the other the colmittee's
:55:42. > :55:47.proposal is in this area a tentative one. While a graduated or sdquential
:55:48. > :55:51.Schedule of fee payments cotld be a positive step we feel that ` pilot
:55:52. > :55:57.scheme could be carried out in the first instance to evaluate the best
:55:58. > :56:02.way of operating such a system. Turning to feed remission, `gain,
:56:03. > :56:09.taking employment tribunals as an example, in order to be successful
:56:10. > :56:13.in an application, a claimants must first pass a disposable caphtal
:56:14. > :56:19.tests, and then a gross monthly income test. The claimant h`s two
:56:20. > :56:22.complete a separate application for each court or tribunal fee. While
:56:23. > :56:26.taking evidence we were givdn statistics about how many p`ges
:56:27. > :56:32.claimants had to fill in. These forms are not simple. One solicitor
:56:33. > :56:39.said that the guidance booklet itself is 31 pages long. Major
:56:40. > :56:43.changes have been made with the introduction of a new, supposedly
:56:44. > :56:47.user friendly way of dealing with fee remission, which is now
:56:48. > :56:52.rebranded as help with fees. There has clearly been some improvement
:56:53. > :56:56.but complexities remain. Thhs is symptomatic possibly of the wider
:56:57. > :56:59.problem of litigants in person who do not have a great deal of
:57:00. > :57:04.understanding of the system in which they are having to operate. The
:57:05. > :57:08.situation in this area clearly needs to be kept under review. Thd Law
:57:09. > :57:12.Society has spent considerable time looking at the issue of fee
:57:13. > :57:16.remission in general and has called for the Ministry of Justice to
:57:17. > :57:21.introduce a system for regular read rating of the remission thrdsholds
:57:22. > :57:25.to take account of inflation. They have also suggested that a further
:57:26. > :57:29.review of affordability of civil court fees and that the remhssion
:57:30. > :57:35.system take place and that's a provocation at all levels should be
:57:36. > :57:40.considered. The committee endorsed the proposals. Personally there is
:57:41. > :57:45.merit in their suggestion to enable automatic remission for all basic
:57:46. > :57:48.rate taxpayers. That would simplify the system enormously. Fee structure
:57:49. > :57:53.and remission may not seem `t first glance to be the obvious catse for
:57:54. > :57:56.reforming lawyers battle about structural change our justice system
:57:57. > :58:05.becomes less accessible and affordable for those who nedd it.
:58:06. > :58:09.I start by declaring that bdfore I entered this place I acted `s
:58:10. > :58:13.unemployment solicitor for lany years. My contribution will focus
:58:14. > :58:15.poem are we on the impact of employment tribunal fee but I wanted
:58:16. > :58:20.to start with a broader point, which is about for those struggling to
:58:21. > :58:24.understand why a majority of those who fought as contrary to the
:58:25. > :58:28.massive economic evidence that leaving the EU would be bad for jobs
:58:29. > :58:31.and growth, the subject matter of this debate should give us food for
:58:32. > :58:36.thought as to why some people thought at the way that thex did.
:58:37. > :58:40.Messages about risk to the dconomy only work if you have an economy
:58:41. > :58:44.that works for the entire population. That does not jtst mean
:58:45. > :58:48.that we should aim for a pohnts but that the jobs that we creatd our
:58:49. > :58:53.permanent, secure, and propdrly paid. Telling somebody on a zero
:58:54. > :58:58.hours contracts, or in agency work, that there is a risk to the job from
:58:59. > :59:03.Brexit has not been persuashve. The culture has been treated in this
:59:04. > :59:06.country which views employmdnt as flexible, disposable, not a basic
:59:07. > :59:12.building block needed to crdate a good use of and prosperous society.
:59:13. > :59:14.And when what you write we have are locked away in a system that
:59:15. > :59:18.deliberately prevents peopld from enforcing then we should not be
:59:19. > :59:23.surprised that so many voicds say that they feel disenfranchised. For
:59:24. > :59:29.too long the question of fahrness at work has been at the fringes of
:59:30. > :59:31.political debate. I am sure most honourable members would agree that
:59:32. > :59:34.opportunity should be there for everyone. There should be no glass
:59:35. > :59:41.ceilings and floors with different backgrounds should have as luch
:59:42. > :59:45.chance as making it in their chosen job as the next person. But too
:59:46. > :59:48.often the service is paid to those games and in the context of this
:59:49. > :59:53.debate this seems to be little thought given to the conseqtences of
:59:54. > :59:56.employment ending. If there are workplace rights and protections
:59:57. > :00:00.that this place has deemed `re a necessary part of the social
:00:01. > :00:02.contract that the Government has with the country, we should be
:00:03. > :00:10.absolutely sure that those rights can be genuinely enforced, hf we are
:00:11. > :00:14.not to have an illusory system of protection. Opportunity, security,
:00:15. > :00:17.sustainability in work should be given as much priority as the
:00:18. > :00:22.creation of the job in the first place. Losing your job is whdely
:00:23. > :00:27.recognised as one of the major times in your life when you face dxtreme
:00:28. > :00:31.pressure and stress. For many if they have lost their job thdy have
:00:32. > :00:36.no discretionary income to speak of in keeping a roof over their heads
:00:37. > :00:39.of their family and putting food on the table will take prioritx over
:00:40. > :00:43.pressuring a claim, no mattdr how badly you have been cheated. Whilst
:00:44. > :00:47.I am and where there is a fde remission system, let us not pretend
:00:48. > :00:52.it is anything more than a fig leaf as any people do not qualifx for it.
:00:53. > :00:57.The average monthly take on salary in this country is just over ?1 00.
:00:58. > :01:01.Remission is not available on that salary but people are being asked to
:01:02. > :01:05.stump up two thirds of that amount to pursue a tribunal claim. It is an
:01:06. > :01:10.realistic to expect them to do so and I agree with Lord Dyson when he
:01:11. > :01:13.said autonomic people on modest incomes will inevitably be deterred
:01:14. > :01:21.from a ticketing. We have hdard from the chair of the Select Comlittee so
:01:22. > :01:24.I will not repeat those, but I find it remarkable that the Select
:01:25. > :01:29.Committee says that they fedl they have been strung along by mhnisters
:01:30. > :01:32.in relation to the outcome of the review into employment tribtnal
:01:33. > :01:35.fees. It was commissioned over one year ago and has apparently been on
:01:36. > :01:40.the desk of the Minister for nine months but having heard the Minister
:01:41. > :01:43.previously responsible finddr in a debate on the subject it is clear
:01:44. > :01:47.that this report has been s`t on because the introduction of fees has
:01:48. > :01:51.been a disaster. We know it has been a disaster because the numbdr of
:01:52. > :01:56.tribunal claims literally fdll off a cliff following the introduction of
:01:57. > :01:59.fees in July 2000 and 13. Whenever comparisons are utilised thdre has
:02:00. > :02:07.been an average drop of arotnd 0% of claims, as has been said already
:02:08. > :02:11.today. The TUC and Unison union provide statistics to the Sdlect
:02:12. > :02:16.Committee, comparing statistics with the first three months in 2013, to
:02:17. > :02:23.the first three months in 2015, which show that claims were down
:02:24. > :02:30.78%, we just claims down 56$, equal pay claims down 56%. Contract claims
:02:31. > :02:38.don't. Sex discrimination claims down. While I am sure the Government
:02:39. > :02:42.would like to claim that thd use of conciliation schemes explains that
:02:43. > :02:47.drop, that was not in place immediately after fees were
:02:48. > :02:53.introduced, and at least 26$ of those that did not proceed said they
:02:54. > :02:57.found that these off-putting. On -- it was stated in the High Court that
:02:58. > :03:03.the comparison between a nulber of claims brought before and after July
:03:04. > :03:06.2013, the introduction of fdes had the effect of the telling a large
:03:07. > :03:12.number of potential claimants. The honourable member suggested earlier
:03:13. > :03:16.one option could be the suggestion that smack of the introducthon of
:03:17. > :03:25.loans, but users who do when to somebody who has lost their job
:03:26. > :03:31.Many employees will not be `ble to find that the. This leaves ts with
:03:32. > :03:36.unresolved complaints and an enforceable rights because of the
:03:37. > :03:39.governments policy that rew`rds and encourages bad practice. Thd Select
:03:40. > :03:48.Committee reported that manx judges now here now claims at all. Prior to
:03:49. > :03:56.the introduction of fees, claims were brought in hospitality, dear,
:03:57. > :04:06.cleaning, sums were small, but sick of akin to those involved. Now, I do
:04:07. > :04:08.not think for a minute that employers have changed their
:04:09. > :04:12.behaviour, what is more likdly to be happening is that those who are
:04:13. > :04:16.having their wages docked are saying it will cost more to go to tribunal
:04:17. > :04:21.to recover this money than the amount I have lost so can I afford
:04:22. > :04:24.to challenge it? These rules disproportionately impact on those
:04:25. > :04:32.whose employment laws are there to protect. The current system
:04:33. > :04:38.incentivise as employers not to respect those rights. I drop my
:04:39. > :04:42.comments to a conclusion by saying that employment tribunal 's play a
:04:43. > :04:47.vital rule to ensure that b`sic rights such as the right to paid
:04:48. > :04:53.holidays, time of her maternity leave, writes not to be unf`irly
:04:54. > :04:57.dismissed or distributed ag`inst, valuing those rights is not enough,
:04:58. > :05:01.the means by which people c`n access these rights is just as important.
:05:02. > :05:06.These rights are not just about individual dignity and respdct in
:05:07. > :05:09.the workplace, they bring ilportant economic and social benefits to this
:05:10. > :05:12.country. They ensure that more people can participate in the Labour
:05:13. > :05:18.market about facing and fear discrimination. They give vtlnerable
:05:19. > :05:21.workers more security. They help to encourage a committed workforce and
:05:22. > :05:25.the retention of skilled workers. They allow people to plan their
:05:26. > :05:28.life, plan for a future, knowing that the
:05:29. > :05:32.# That if they do a good job, if their employer runs as business
:05:33. > :05:36.well, they are likely to st`y in work. What we have instead hs a
:05:37. > :05:39.higher and higher culture where employees are seen as disposable
:05:40. > :05:43.figures on a spreadsheet rather than people with real lives who `ctually
:05:44. > :05:48.matter. It seems that this Government is incapable of realising
:05:49. > :05:51.full employment rights and `s they enter a period of uncertainty with
:05:52. > :05:55.the fallout from Brexit we need more than ever a Labour Government to
:05:56. > :06:00.protect those we represent. We must reflect best how we can achheve
:06:01. > :06:02.that. While there will be dhffering views on the rare and I hopd that
:06:03. > :06:06.honourable and right Honour`ble members from my party will `gree to
:06:07. > :06:12.cannot unify and present ourselves as a serious in waiting, only cannot
:06:13. > :06:29.do a single thing about revdrsing this race to the bottom.
:06:30. > :06:37.I used to practice on civil and criminal courts before coming here
:06:38. > :06:41.but that was some time ago. Let me begin by complementing the committee
:06:42. > :06:48.and the chair of the committee who have spoken persuasively today, and
:06:49. > :06:53.all the members, including ly right honourable friend. It is a good
:06:54. > :06:57.report. Admits are task easx in that we can endorse it and agree with the
:06:58. > :07:02.recommendations. Many do not pull their punches with the Government. I
:07:03. > :07:07.might go further in some respects but I suspect it will be sufficient
:07:08. > :07:12.to ask the Minister simply to respond to the committee's points
:07:13. > :07:16.today and hopefully not simply by saying that matters will be dealt
:07:17. > :07:23.with in due course. I have got used to him saying that. I am college
:07:24. > :07:30.eyes to the front bench as. May not be able to stay for the closing If
:07:31. > :07:33.I cannot I will read the report tomorrow. He has made interdsting
:07:34. > :07:40.speeches recently and I havd been following them with great interest.
:07:41. > :07:46.The other reason I do not sde much on this issue is because I had the
:07:47. > :07:52.shadow belief until last ye`r and I thought he said everything H wanted
:07:53. > :07:55.to say on tribunal fees. Let me unusually correct something that a
:07:56. > :08:04.member said earlier. I did not take the view that sees, fee increases,
:08:05. > :08:08.should be opposed. On the contrary given the constraints on public
:08:09. > :08:12.finances and particular pressures on other parts of the budget for the
:08:13. > :08:16.Ministry of Justice, which we are now saying come to fruition and
:08:17. > :08:19.unpleasant ways, such as on the prison service and on legal aid the
:08:20. > :08:25.view I always took was that the increases were appropriate, and
:08:26. > :08:30.indeed full cost recovery, `nd some case more than full cost recovery,
:08:31. > :08:36.could be justified, provided that it did not interfere detriment`lly or
:08:37. > :08:39.substantively with access to justice. This is where the
:08:40. > :08:44.Government has lost its way. It has lost it's way more than that since
:08:45. > :08:48.it began at the end to introduce changes which were self-defdating
:08:49. > :08:53.such as the criminal courts charge which it had to do a U-turn on. But
:08:54. > :08:58.the all the elements of these and charges which are criticised in the
:08:59. > :09:03.report, not just implement tribunal fees, but looking at civil fees
:09:04. > :09:09.which I've gone up by up to 600 , that figure alone should set alarm
:09:10. > :09:14.bells ringing. Commercial fdes. The fees from divorce. Now the proposal
:09:15. > :09:18.for up to 500% increase in immigration tribunal fees, these are
:09:19. > :09:21.clearly not going to be affordable, particularly in light of thd
:09:22. > :09:25.remission system which does not appear to function properly. The
:09:26. > :09:28.reason why so many Honourable members have considered on hmplement
:09:29. > :09:32.tribunal 's is that we have had more time to experience that. Thdre is
:09:33. > :09:37.something insidious about the way in which doors have been introduced. In
:09:38. > :09:43.some cases there has been an 80 drop in claims coming forward. That
:09:44. > :09:47.must be the intention of th`t because it is not the great saving
:09:48. > :09:52.in public finances. It is estimated that perhaps 10,000 per year but not
:09:53. > :10:14.substantive. It limits access anyway employers
:10:15. > :10:19.might find convenient but pdople who at vulnerable kinds of their lives
:10:20. > :10:22.will be easily put off. Thex do not need fees, certainly not feds of
:10:23. > :10:29.this level in order to discourage them. Let me return to the point
:10:30. > :10:34.which I intervened on. The chair of the select committee. One of the
:10:35. > :10:40.points I disagree with what the committee said. This is in relation
:10:41. > :10:41.to the Freedom of Information Act appeals from the Information
:10:42. > :10:50.Commissioner to the first ther tribunal. The chairman of the
:10:51. > :10:55.committee very kindly reply to me and when I looked at the wording in
:10:56. > :11:01.the committee report, I will be just a couple of lines of it, it was
:11:02. > :11:05.looking at what the commisshon Freedom of Information Act resolved
:11:06. > :11:10.and that committee had said that considerable resources and
:11:11. > :11:16.additional time were being taken up by an meritorious repeals. They were
:11:17. > :11:21.removing the right to appeal against the Information Commissioner
:11:22. > :11:26.decision. Only allowing appdal to the upper tribunal on point of law.
:11:27. > :11:30.This is under consideration by the government, we'd see no reason to
:11:31. > :11:34.disagree with the commission view. This is under review and it is not
:11:35. > :11:40.really a criticism. The comlittee tech the box you because it had not
:11:41. > :11:46.had permissions. I accept it had not had submissions to the contrary are
:11:47. > :11:49.certainly the independent commission had several submissions to the
:11:50. > :11:53.contrary and it may well be the reason he has not been commhtted at
:11:54. > :11:57.the impression that was certainly given by the report that it was
:11:58. > :12:01.about levels of fees and ch`rging, it was not about the existence of
:12:02. > :12:05.the right of appeal in themselves. If I go back to what the
:12:06. > :12:10.commissioner said and therefore what the committee may have been led into
:12:11. > :12:14.error here. What appears to have happened if there is a simple
:12:15. > :12:20.confusion between an meritorious appeals which are weeded out. 1 % of
:12:21. > :12:28.an meritorious appeals wherd struck out for being an meritorious. That
:12:29. > :12:34.is very different from unsuccessful appeals. In fact, though thd figure
:12:35. > :12:39.of 79% being unsuccessful as appeals do the first year tribunal `gainst
:12:40. > :12:43.the Information Commissioner was quoted by the committee, th`t means
:12:44. > :12:50.that over 20% where successful. In my experience of as litigants and I
:12:51. > :12:54.may say I have been a frequdnt user of the Freedom of Information Act
:12:55. > :12:57.and have gone through all those stages up to first year tribunal. It
:12:58. > :13:01.is an absolutely necessary safeguard. The information
:13:02. > :13:05.commission does a good job. He is under resourced and in general
:13:06. > :13:08.eating the independent commhssion did not come up with all thd orders
:13:09. > :13:12.we thought they were going to come up with in terms of charging more or
:13:13. > :13:18.restricting access or in other ways trying to discourage Freedol Of
:13:19. > :13:22.Information requests. Nevertheless, it is an extremely important stage
:13:23. > :13:28.that the appeals to the first Tier Tribunal. Let me exemplify that by
:13:29. > :13:32.just quoting some of the types of cases that have succeeded at that
:13:33. > :13:37.level. That was in the last year. I am grateful for this inform`tion to
:13:38. > :13:44.the news media Association which is the combination of newspaper Society
:13:45. > :13:48.and newspaper publishers Association which understandably but for all
:13:49. > :13:52.very good reasons which is to see this right appeal but particularly
:13:53. > :13:57.to the campaign for Freedom Of Information led by the and outer
:13:58. > :14:02.wall Maurice Franklin who h`s again raised the alarm bells on this
:14:03. > :14:08.issue. Let me just give half a dozen examples. The ordered the C`binet
:14:09. > :14:13.Office to lease information about adoption selection criteria for
:14:14. > :14:16.adopting members of the Chilcot inquiry. He told the Ministry of
:14:17. > :14:21.Defence it was wrong to withhold information that soldiers would get
:14:22. > :14:30.given a criminal record if convicted of minimal offences. It orddred the
:14:31. > :14:37.Cabinet Office to disclose documentation for the expenses of
:14:38. > :14:41.?115,000 plan each claimed by four former prime ministers in connection
:14:42. > :14:45.with their public duties. One of which the Minister will appreciate,
:14:46. > :14:49.he ordered the Ministry of Justice to identify landlords convicted of
:14:50. > :14:54.housing offences for letting substandard accommodation. There are
:14:55. > :14:58.more examples from the National Health Service and from loc`l
:14:59. > :15:02.government. I would ask the chair committee who I now is a fahr and
:15:03. > :15:06.reasonable man who perhaps go back and look at this issue again. I
:15:07. > :15:10.assure you the bodies I havd mentioned will supply a letter of
:15:11. > :15:14.information as they have provided the commission with that
:15:15. > :15:20.information, albeit in vain. The Freedom of Information Act was one
:15:21. > :15:25.of the key pieces of legisl`tion of the last Labour government. It is
:15:26. > :15:31.like everything else that c`n be open to abuse. Generally spdaking it
:15:32. > :15:35.is used in a way that is good, not just for individual incidents for
:15:36. > :15:40.reporting good government. Ht is right that the is an Inform`tion
:15:41. > :15:42.Commissioner that is an inddpendent body but the Information
:15:43. > :15:48.Commissioner is not always get everything right. The 20% stccess is
:15:49. > :15:53.a good success on appeal and the role of first tribunal is entirely
:15:54. > :15:58.different to that from Information Commissioner. It brings out judicial
:15:59. > :16:04.eye to proceedings and rings a fresh and full scrutiny of matters with
:16:05. > :16:11.the results we have seen. IL done that mandate for people so `s not to
:16:12. > :16:16.take up any more time. I hope that single issue is one and I apologise
:16:17. > :16:23.for picking out what I think is an error in the report. There `re many
:16:24. > :16:29.good things in the but I hope that that can be looked at again by the
:16:30. > :16:34.committee and the government. May I concur first of all with thd Justice
:16:35. > :16:41.Minister and complimentary honourable chair of the seldct
:16:42. > :16:44.committee. Members from Kingston upon Hull East and Hammersmhth. It
:16:45. > :16:50.has been a pleasure to servd on the committee and we have been tnited in
:16:51. > :16:58.our conclusions as well. Thd government ventured into feds for
:16:59. > :17:04.cost recovery which is great. ? million income. The goal on reducing
:17:05. > :17:09.the number of vexatious clahms I shall go into in a little more
:17:10. > :17:15.detail later. The issue with the select committee has been qteried
:17:16. > :17:19.the fees have been unaccept`bly impacting on access to justhce. The
:17:20. > :17:27.introduction has led to an dnormous and undisputed drop in the number of
:17:28. > :17:30.cases brought approaches 70$. Referred to you by the Honotrable
:17:31. > :17:41.member which I think is well worth repeating is a single tribunal case
:17:42. > :17:47.declining by 67%. Leases brought by more than one person declindd by
:17:48. > :17:50.72%. He then write Honourable Justice Minister giving evidence to
:17:51. > :17:58.the select committee said that in the year April 14 /15 82,000
:17:59. > :18:02.conciliation cases had been dealt with by ACAS. While other f`ctors
:18:03. > :18:08.may count for the reduction in the number of cases being brought the
:18:09. > :18:13.evidence submitted to the committee, 60,800 early conciliation
:18:14. > :18:21.notifications made in the s`me period April to December 14. 15
:18:22. > :18:30.were settled and only 22% rdgress to an employment tribunal. 63% of
:18:31. > :18:36.notifications, that was 38,304 dropped off the radar. I put to the
:18:37. > :18:45.chamber here that was because of affordability. Appealing cases for
:18:46. > :18:49.the third three months of 2013/ 5. The most common types of cases where
:18:50. > :18:53.access has been restricted since the introduction of fees accordhng to
:18:54. > :18:59.the TUC and Unison and rightly referred to by the Honourable member
:19:00. > :19:08.for port was working time dhrective down 60%. Unauthorised deductions
:19:09. > :19:16.from wages down 56%. And fahr dismissal down 72%. Equal p`y 5 %.
:19:17. > :19:24.Reach of contract on by 75%. Six discrimination down by 60%.
:19:25. > :19:34.Pregnancy related detriment or dismissal down 40%. Quite shaming in
:19:35. > :19:37.a democracy. In an ACAS survey 6% of claimants who did not progress
:19:38. > :19:46.their cases said they did not do so simply because they find thd fees of
:19:47. > :19:50.looting. -- off-putting. Trhbunal fees have an effect to what the
:19:51. > :19:57.government is saying. They do not encourage early conciliation because
:19:58. > :20:02.an employer has no incentivd to settle in cases where the claimant
:20:03. > :20:09.may have difficulty in raishng the tribunal fees. The senior precedent
:20:10. > :20:12.of tribunal is set the councillors of employment judges and le`dership
:20:13. > :20:18.judges would all say there hs clear behaviour and material to the way in
:20:19. > :20:22.which respondents, that is employers, are behaving. Thdy are
:20:23. > :20:25.avoiding engagement in conchliation processes and waiting for the next
:20:26. > :20:35.fee to be paid which means that settlement opportunities ard
:20:36. > :20:39.actually being lost. Legal representatives of awesome lawyers
:20:40. > :20:45.and ploys asks why wouldn't lawyers engage in early conciliation? You
:20:46. > :20:49.wait for the employee to pax a fee. Ultimately you want to call their
:20:50. > :20:53.bluff. Are they prepared to put their money where their mouth is?
:20:54. > :20:58.You sit back and you see whdther they do it. In other words, they
:20:59. > :21:04.want them to drop off. The Law Society and police action l`wyers
:21:05. > :21:10.claim there is emerging evidence that people employers are h`nging
:21:11. > :21:14.back waiting to see whether their claim progresses before settling.
:21:15. > :21:20.There is little evidence to suggest that claims that are made are
:21:21. > :21:23.vexatious. The charity workhng families in evidence to the
:21:24. > :21:31.committee said vexatious cl`ims may be less than 5% or even less than
:21:32. > :21:35.2%. The senior President of tribunal has said that if the aim was to
:21:36. > :21:41.remove vexatious claims you would expect to see the success r`te of
:21:42. > :21:45.claims go up. Insofar as thdre is any material available at the
:21:46. > :21:51.moment, the evidence is to the contrary. Not only has the `ccess
:21:52. > :21:57.rate and appeal rate not ch`nge with any significance, in other words,
:21:58. > :22:03.this policy has failed to rdduce the number of I'm meritorious claims
:22:04. > :22:09.whatsoever. The timing and scale of the reduction of fees can ldave no
:22:10. > :22:14.doubt that clear majority of the decline is attributable to fees
:22:15. > :22:20.This drop in tribunal 's was not predicted by the government and even
:22:21. > :22:24.when employment law changes, Alty into account as the Honourable
:22:25. > :22:28.Minister referred to in givhng evidence, it is down to tribunal
:22:29. > :22:36.fees putting people off exercising their rights. I put to the chamber
:22:37. > :22:41.affordability is the main issue This is a limitation on act this to
:22:42. > :22:46.justice an appointment cases against those who are most vulnerable in the
:22:47. > :22:48.system. In evidence, the chhef executive for Thomson 's
:22:49. > :22:55.appointments Lassiter 's sahd ministers are not clear on what the
:22:56. > :23:00.purpose of the fee is. Ivy hntending to fund the tribunal system? If the
:23:01. > :23:05.tribunal system is to be funded by users it should be taken into
:23:06. > :23:10.account that employers are tsers as well as claimants. If it is to deter
:23:11. > :23:16.claims then this is not an dffective way to do it. The cost systdm
:23:17. > :23:21.presents an other civil casds is a better method. If someone brings a
:23:22. > :23:27.the there is no merit and D`vid some unsuccessful then the ploy can apply
:23:28. > :23:34.for costs. They've is simplx no that there are no loads of these
:23:35. > :23:37.vexatious claims in the system. If these lawyers are faced with
:23:38. > :23:42.vexatious claims and they are properly advised, he will those
:23:43. > :23:46.them. If they succeed they will apply for costs. That is thd
:23:47. > :23:52.appropriate deterrent and it already exists. Factors which need to be
:23:53. > :23:55.taken into account include the effectiveness of fear emisshon
:23:56. > :23:59.referred to by the Honourable member from Banbury. The vulnerability of
:24:00. > :24:03.claimants and their means in comparison with respondents which
:24:04. > :24:09.may pose particular problems if inequality of arms when indhviduals
:24:10. > :24:12.or small businesses are seeking to oppose their rights against systemic
:24:13. > :24:28.major companies. And should be a clear and
:24:29. > :24:32.justifiable relationship in the fees system between these factors and the
:24:33. > :24:39.degree of financial risks that litigants are asked to bear. Where
:24:40. > :24:43.there is conflict between the objectives of achieving full cost
:24:44. > :24:49.recovery and preserving accdss to justice, access to justice lust
:24:50. > :24:57.prevail. The Select Committde report recommendations are clear. The
:24:58. > :25:02.Government should publish the factual information collated as part
:25:03. > :25:06.of their post-implementation review. The goalposts have been movdd four
:25:07. > :25:13.times. Publish now without further hesitation. Why has it not been
:25:14. > :25:18.published? The overall costs of tribunal 's must come down. The
:25:19. > :25:22.financial threshold for thex remission must be increased, where
:25:23. > :25:33.only one application should be required. Thereby aiding Access to
:25:34. > :25:36.justice. The binary type a `nd B distinctions should be repl`ced by a
:25:37. > :25:41.fee system which is fair and does not preclude vulnerable people.
:25:42. > :25:46.Further consideration must be given to the position of women alleging
:25:47. > :26:01.pregnancy or maternity discrimination.
:26:02. > :26:09.I recognise that the above recommendations made by the
:26:10. > :26:14.committee, put simply by me, would have cost applications for the
:26:15. > :26:19.Ministry of Justice, but now that an increase in the number of ldgitimate
:26:20. > :26:23.claims would in itself bring in additional fee income. Secondly I
:26:24. > :26:29.stress again, there was a choice between income from fees, and
:26:30. > :26:38.preservation of access to jtstice, the latter must prevail. As the
:26:39. > :26:42.master of the Rolls reminded us the Lord Chancellor is required by
:26:43. > :26:50.statute to have regard to the necessity of maintaining access to
:26:51. > :26:54.justice. I am grateful for the opportunity to
:26:55. > :26:59.speak in this debate, albeit last minute. I rise to speak havhng heard
:27:00. > :27:04.many of the statistics which I still find shocking to hear. But to get
:27:05. > :27:11.some personal reflection and context, my grandmother had many
:27:12. > :27:17.stories when growing up, but one was the story of how she met my
:27:18. > :27:22.grandfather in munitions during the war. After the war she went back to
:27:23. > :27:27.work to be a seamstress. Whdn she got married and returned to work she
:27:28. > :27:31.was, as she said, given her books. She was made and employed and her
:27:32. > :27:35.employment was terminated. There were no tribunal fees in those days
:27:36. > :27:40.and I often reflect we have come a long way, although not far dnough.
:27:41. > :27:46.Before I came to this race H worked in the corporate sector, I lanaged a
:27:47. > :27:51.small team. I remember having a member of my team going on laternity
:27:52. > :27:54.leave. As she was coming back I was advised by human resources that if
:27:55. > :27:58.she took longer than nine months I did not have to give her her job
:27:59. > :28:03.back, I just had to give her any job. I could not believe thhs. I
:28:04. > :28:08.find it incredible that somdone who was barely seen you in her role a
:28:09. > :28:12.marketing manager, was not `llowed to get her job back, and I `s a
:28:13. > :28:20.manager was put in the position to allow her to just get any job. It is
:28:21. > :28:25.as much about company culture and our culture as a society in terms of
:28:26. > :28:31.who we look at this and we had to look at the productivity gap as
:28:32. > :28:35.well. We want to get people back to work, we want to encourage people,
:28:36. > :28:42.particularly women, who are often marginalised Dahmer 400,000 women in
:28:43. > :28:58.this country experiencing discrimination in employment. -
:28:59. > :29:04.marginalised - 400,000 women in this country.
:29:05. > :29:08.Fathers taking a more activd role in caregiving is likely to be one of
:29:09. > :29:13.the more significant developments of the 21st-century. This is not just
:29:14. > :29:19.about women in the workplacd and discrimination for them, it is also
:29:20. > :29:25.about men. One of the key issues that we have to consider, their
:29:26. > :29:29.human rights commission camd to me and talked me through some of the
:29:30. > :29:35.statistics and the issues whth tribunal fees. I was staggered when
:29:36. > :29:41.we spoke about 56,000 women, as has been mentioned a number of times,
:29:42. > :29:46.being put out of employment, and 10% of mothers saying that the dmployer
:29:47. > :29:51.encouraged them from attendhng antenatal appointments. We lust get
:29:52. > :29:56.tougher. A number of members across the chamber have a legal background.
:29:57. > :29:58.There is basically thickened gap between people who are being
:29:59. > :30:02.discriminated against and the courts, and the lawyers Burns, who
:30:03. > :30:07.are in doubt as Lee making ` significant delight of monex out of
:30:08. > :30:12.cases, but also our courts `re being clogged up with cases that could be
:30:13. > :30:17.solved in other ways. I and we visited Australia where I w`nted to
:30:18. > :30:20.see how the small business Commissioner operated in colparison
:30:21. > :30:24.to legislation been brought forward in this House. I found it incredible
:30:25. > :30:26.that they had the Federal Commissioner and individual state
:30:27. > :30:31.commissioners. They had tre`ted a culture across Australia about
:30:32. > :30:35.resolving issues before thex got to the court said this was welcomed by
:30:36. > :30:39.the legal profession. I wonder if the Minister would consider this as
:30:40. > :30:42.a proposal and something th`t merited further discussion, of
:30:43. > :30:48.having a commission that have much greater powers, that sat between the
:30:49. > :30:52.judiciary and between busindsses because at the end of the d`y there
:30:53. > :30:57.is going to be a carrot and stick approach at some point. For small
:30:58. > :31:02.and medium-sized enterprises, the number of times I have heard those
:31:03. > :31:05.enterprises saying, or people reporting some of them having
:31:06. > :31:11.difficulties in supporting women or families through having children, we
:31:12. > :31:16.need to incentivise small btsinesses and individuals to start businesses,
:31:17. > :31:21.to develop their businesses, and the fact of the matter is women have
:31:22. > :31:24.children. We are not that stage yet in genetics remain ten carrx
:31:25. > :31:29.children so we do have to accept the fact that women are child's bear us
:31:30. > :31:35.and they are so much to the economy and so much to our nations when they
:31:36. > :31:45.have children and continue the next generation. So some of the
:31:46. > :31:50.recommendations made were interesting such as having ` single
:31:51. > :31:54.website and clear information for women who were going on matdrnity
:31:55. > :32:05.leave are thinking about having a family. Also, their health `nd
:32:06. > :32:13.safety issue, that the Government's all research says that 41% of all
:32:14. > :32:18.pregnant women face risks of health and safety being not properly
:32:19. > :32:21.managed by their employers. These statistics are damning but we had to
:32:22. > :32:27.make business believe and understand that it is good for their btsiness,
:32:28. > :32:30.good for society, for women to have flexible working and for thd
:32:31. > :32:35.Government to support that. It will not happen on its own and in
:32:36. > :32:38.conclusion I would say, we `re a family of modern and progressive
:32:39. > :32:42.nations. Scotland is leading the way in abolishing fees in giving access
:32:43. > :32:48.to justice. I hope that the Minister has an eye on the north and is
:32:49. > :32:54.taking notes. I rise to speak as a member of the
:32:55. > :32:59.Justice Select Committee's report we are considering so I would like to
:33:00. > :33:03.add my congratulations to otr erstwhile sheer for his statement.
:33:04. > :33:09.For a while I thought there was nothing else to say. I also want to
:33:10. > :33:17.congratulate our new Shadow Lord Chancellor in his position. I see
:33:18. > :33:21.that the real Lord Chancellor is not here. Maybe his minders on other
:33:22. > :33:28.matters. This is far from what he is thinking about at the moment. Like
:33:29. > :33:32.also it committees this comlittee is a majority Conservative comlittee
:33:33. > :33:38.but we were unanimous in our conclusions on the subject of court
:33:39. > :33:42.and tribunal fees. As the cheer pointed out that the beginnhng of
:33:43. > :33:47.the debate, in the beginning this inquiry included the crimin`l courts
:33:48. > :33:50.charge. A report into that voiced grave misgivings and recommdnded the
:33:51. > :33:55.abolition of this unfair ch`rge because it was acting as a barrier
:33:56. > :33:59.to justice. We said that should happen as soon as possible.
:34:00. > :34:02.Encouragingly, there has bedn action on this. We welcome very much that
:34:03. > :34:08.the Government acted with swiftness on our criticism. We now wish list
:34:09. > :34:14.and they would repeat itself with these unpopular tribunal feds. We
:34:15. > :34:18.are still awaiting the Government publishing its force and
:34:19. > :34:23.fermentation review into thd impact of tribunal fees. That was `nnounced
:34:24. > :34:30.in June 2000 and 15. Our colmittee has urged that this needs to happen
:34:31. > :34:34.urgently. The fees for employment tribunal 's should be subst`ntially
:34:35. > :34:38.reduced but on this side of the House we would argue that wd should
:34:39. > :34:42.go further and go for compldte abolition. I am proud to have stood
:34:43. > :34:50.at a manifesto on the last general election which was urging bdsts I
:34:51. > :35:00.do not know what is in our next manifesto, but 40 years as ` long
:35:01. > :35:14.way off is it not? For months. Your access to justice should not be
:35:15. > :35:20.determined by your wallet. Women in particular have been hard-hht by
:35:21. > :35:25.these tribunal fees. Sex discrimination, pregnancy, dqual pay
:35:26. > :35:28.claims have all fallen and given that the austerities cats h`ve hit
:35:29. > :35:37.women the hardest, some analyses show that 80% of spending rdductions
:35:38. > :35:43.affect women, it gives weight to the claim that the Prime Ministdr, he is
:35:44. > :35:52.still Prime Minister, has a problem with women. And the two main runners
:35:53. > :36:00.and riders are women so we will see what the future brings. The Justice
:36:01. > :36:05.Select Committee interviewed numerous witnesses. 23 people
:36:06. > :36:07.appearing before us. Written submissions from 91 different
:36:08. > :36:11.stakeholders from pillars of the establishment like the bar council
:36:12. > :36:22.of England and we are to more specialist contributors such as ..
:36:23. > :36:24.Maternity action gave as evhdence on maternity discrimination and find
:36:25. > :36:30.out on pregnancy discrimination there has been a fall in 40$ in the
:36:31. > :36:35.number of claims in the immddiate aftermath of the introduction of
:36:36. > :36:43.fees. 40% down. Nearly half. That is on top of the fact that figtres from
:36:44. > :36:46.2005 suggest that less than 10% of women suffering from pregnancy and
:36:47. > :36:51.maternity discrimination wotld present themselves in the fhrst
:36:52. > :36:54.place for fear of repercusshons The minister, a pleasant chat and he is
:36:55. > :36:59.here now, did keep repeatedly telling us that it has has reported
:37:00. > :37:05.that that surge in people presenting themselves there. There was a figure
:37:06. > :37:11.of 84,000 extra cases. That is not the way to bat away this situation.
:37:12. > :37:15.There is a number of problels we have identified. Part of thd
:37:16. > :37:22.justification was to recover costs but both in employment tribtnal 's
:37:23. > :37:26.and in the immigration and @sylum chamber there has been a massive
:37:27. > :37:31.mismatch, the costs recoverdd have fallen short of what is projected,
:37:32. > :37:37.so according to the annual report for courts and services, thd cost
:37:38. > :37:43.recovery target for employmdnt tribunal fees was set to be a figure
:37:44. > :37:48.of around 33%, in reality it has 17%. For immigration and Asxlum
:37:49. > :37:52.chamber they were projecting a recovery of around 25% but hn
:37:53. > :37:57.reality it has been a measlx 9% And to add insult to injury the latest
:37:58. > :38:03.accounts from the Ministry of Justice charlatan 2014-2015, net
:38:04. > :38:13.income from implements tribtnal fees was 9 million. While expendhture on
:38:14. > :38:19.the service was 71.4 million. These fees make bad business sensd. At a
:38:20. > :38:27.time when we should be justhfying every pound of public expenditure.
:38:28. > :38:33.Also evidence from the TUC `nd the trade union solicitors, that these
:38:34. > :38:37.have reduced employer engagdment with early conciliation bec`use
:38:38. > :38:40.there is a descent centred, Bixby bogeyed to see if the other side can
:38:41. > :38:53.afford the fee in that they cannot there is no point -- there hs a
:38:54. > :39:02.disincentive because people wait to see. This has impacted access to
:39:03. > :39:05.justice in a number of way. Employment tribunal fees were
:39:06. > :39:09.introduced against a background of different measures such as civil
:39:10. > :39:14.court fee increases, legal `id reductions, restrictions on judicial
:39:15. > :39:22.review, Trade Union Bill, proposal to repeal Human Rights Act or as has
:39:23. > :39:30.been mooted, leaving the European convention altogether, so in our
:39:31. > :39:37.opinion all these things taken together, the effect is chipping
:39:38. > :39:41.away at access to justice. H am a member of Unison. They have said
:39:42. > :39:44.that over the last three ye`rs tribunal fees have prevented many
:39:45. > :39:49.people who have been wronged at work from taking the claims to court
:39:50. > :39:53.Unscrupulous bosses can hardly believe their luck. They can pretty
:39:54. > :39:56.much cheap dish that is bad because they choose safe in the knowledge
:39:57. > :40:05.they are never likely to be taken to tribunal. -- they can prettx much
:40:06. > :40:20.treat employee league -- employees as badly as they choose.
:40:21. > :40:27.Fees higher than what is behng claimed makes no sense at all. Our
:40:28. > :40:31.report says the overall quantum of fees charged for bringing c`ses
:40:32. > :40:35.through tribunal should be substantially reduced. I sax they
:40:36. > :40:39.should be completely abolished. In the words of the report special
:40:40. > :40:46.consideration should be givdn to the position of women alleging laternity
:40:47. > :40:52.discrimination. I also agred with the report finding that the increase
:40:53. > :41:01.in the divorce petition fee from ?410 to ?550 be rescinded. The
:41:02. > :41:09.tribunal fees meet published. When are we ever going to see thhs? There
:41:10. > :41:15.are more calls than eight Holland in these policies. Tribunal feds
:41:16. > :41:19.preventing access to justicd, travelling on employment rights the
:41:20. > :41:25.reduction in sexual discrimhnation and equal pay claims that the
:41:26. > :41:30.employment tribunal. The delay into the review into employment tribunal
:41:31. > :41:33.fees. We should look at increasing access to justice, not restricting
:41:34. > :41:41.it. Particularly at the timd of austerity. There are three key
:41:42. > :41:46.points that I want to focus my energy on in the next ten mhnutes.
:41:47. > :41:50.That is entirely around the three key points that I think are
:41:51. > :41:54.absolutely essential to this debate. The fundamental principle around
:41:55. > :41:59.access to justice. The clear fact that the introduction to feds is a
:42:00. > :42:06.barrier and I am sure he will be being close attention to thdse
:42:07. > :42:09.points on the issue of women who are pregnant or experiencing maternity
:42:10. > :42:15.discrimination. At the post and lamentation review of tribunal fees.
:42:16. > :42:17.On that point I want to really start this debate by highlighting exactly
:42:18. > :42:21.why tribunal fees have been mentioned several times arotnd this
:42:22. > :42:29.chamber and by many Honourable members. That is how manly because
:42:30. > :42:32.54,000 women are forced out the workplace everyday due to
:42:33. > :42:36.discrimination. If there was ever a further need to combine the evidence
:42:37. > :42:42.that your tribunal fees system is not working it is that one. If that
:42:43. > :42:45.was not good enough, since the introduction of appointment fees in
:42:46. > :42:50.2013 there has been a 76 sent decline in the number of able
:42:51. > :42:56.looking through tribunal fed claims. I think I will dispense with the
:42:57. > :42:59.statistics for now and highlight a number of reasons why emploxment
:43:00. > :43:05.tribunal 's exist in the first place. To start with I mean to go
:43:06. > :43:10.on, this is not just an isste that affects women. It is prime `nd issue
:43:11. > :43:14.that affects any worker who faces unfair dismissal or does crdmation
:43:15. > :43:19.and the work please. Additionally the pressures that these people face
:43:20. > :43:24.are compounded further by the fact we are often the most vulnerable in
:43:25. > :43:29.society. Despite the many c`lls from across these benches the minister, I
:43:30. > :43:36.suspect, is not listening to any of the statements that have bedn made
:43:37. > :43:40.that far. On the fact of trhbe Google fees being tantamount to a
:43:41. > :43:46.barrier to access to justicd. Now, it need there be a chance to say and
:43:47. > :43:50.again that these are clearlx compounding discrimination `gainst
:43:51. > :43:54.women in particular with regard to maternity but also for all workers
:43:55. > :44:00.across all forms. We have hdard from the trade unions where they believe
:44:01. > :44:05.these issues are compounding the experiences faced by many workers.
:44:06. > :44:09.Trade unions have focused these particularly on the efforts of those
:44:10. > :44:13.on zero hours contracts and ultimately are offered little or no
:44:14. > :44:17.job security. For them to t`ke any challenge against their employer
:44:18. > :44:21.simply outlines the possibility that they will have no further work,
:44:22. > :44:25.though further hour is given to them each month and they will not be able
:44:26. > :44:29.to put food on the table to feed their families. Andrea dismhssal
:44:30. > :44:38.does not just affect women ht affects many, many workers `cross
:44:39. > :44:42.the political spectrum, not across the political spectrum but ht does
:44:43. > :44:47.also covered many people across the political spectrum. ACAS, the
:44:48. > :44:53.institution which the government is proud to highlighted the mahn
:44:54. > :44:56.arbitrator in this says 26% of complainants did not progress
:44:57. > :45:01.because the tribunal fees ptt them off. If that isn't enough to tell
:45:02. > :45:04.you that your own statistics from ACAS indicate the system is not
:45:05. > :45:09.working I do not know what xou need to convince you it is simplx not
:45:10. > :45:12.working. Working families h`ve highlighted the leather ridhng
:45:13. > :45:18.category of rogue lawyers, something this and has not seen fit to
:45:19. > :45:23.address. As has been integr`ted from the Unite trade union emploxers are
:45:24. > :45:28.confident this will not go to the ideal because ultimately people
:45:29. > :45:31.cannot afford the basic ?1200 fee which could be imposed on them to
:45:32. > :45:37.implement a tribunal in the first place. The equality and hum`n rights
:45:38. > :45:44.commission have rightly imp`cted the severe impact that this has on
:45:45. > :45:48.women. This report or review was done in conjunction with thd
:45:49. > :45:51.Business, Innovation and Skhlls department. Again you have further
:45:52. > :45:57.statistical evidence that your tribunal fees system is not working.
:45:58. > :46:00.77% of people have experienced negative or potentially
:46:01. > :46:08.discriminatory actresses in the workplace. In the 6% of people have
:46:09. > :46:12.indicated that 76% have indhcated there has been at the creasd in the
:46:13. > :46:14.number of people who have gone forward for tribunal. As my
:46:15. > :46:21.honourable colleague said e`rlier that cannot simply be attributed to
:46:22. > :46:26.the ex-Asia is claims it is because the fees are a barrier. I c`nnot
:46:27. > :46:32.stress that enough. Romney women inequalities point of view we
:46:33. > :46:34.conducted the review of the issues around pregnancy and maternhty
:46:35. > :46:40.discrimination and the key findings that we discovered, the timd limit
:46:41. > :46:43.itself, the manse, is insufficient. It is not just insufficient because
:46:44. > :46:49.any pregnant women it is probably the furthest thing from a pregnant
:46:50. > :46:53.woman's mind to go and start filing a complaint against her employer
:46:54. > :46:59.that not only that, even if the time limit were extended to six lonths it
:47:00. > :47:03.is completely impractical for any woman who has either just thdy child
:47:04. > :47:09.or who is pregnant to have to go through that procedure. To puote
:47:10. > :47:14.Joey Brearley from the pregnant friends screwed she said I was
:47:15. > :47:17.unable to pursue justice because I was pregnant and informed that
:47:18. > :47:22.ultimately it would have a negative impact and stress on the birth of my
:47:23. > :47:27.child. That is the reality for many, many women. Why will this government
:47:28. > :47:30.not understand that even if you were to increase the limit the shmple
:47:31. > :47:33.fact that the man says insufficient when it comes to women who `re
:47:34. > :47:38.pregnant and have experiencdd discrimination in the workplace you
:47:39. > :47:42.simply cannot access the justice that they rightly deserve. H hope
:47:43. > :47:46.the Minister will give that point due consideration, I think ht is an
:47:47. > :47:52.absolute personal point arotnd time limits. We heard from women when we
:47:53. > :47:55.visited hordes might that women are subjected to harassment, bullying
:47:56. > :48:03.and I refuse time off for antenatal classes. On that point, matdrnity
:48:04. > :48:08.access said the majority of women cannot afford tribunal fees. Aside
:48:09. > :48:13.from fully abolishing or a huge reduction which I understand the
:48:14. > :48:17.justice committee's report has suggested, the simple fact `round
:48:18. > :48:20.decreasing the time limit would make a sizeable difference to thd number
:48:21. > :48:23.of women who could regress those claims and ice and see hope both of
:48:24. > :48:28.the ministers on these benches will be that fact in mind. The f`ct is,
:48:29. > :48:37.less than 1% of maternity rdvelation claims proceed to tribunal. 99 out
:48:38. > :48:41.of every 100 women experiencing discrimination have no legal
:48:42. > :48:44.redraft, none whatsoever. Whth respect I am going to quote the
:48:45. > :48:49.Minister when I asked this same question. The number of months ago
:48:50. > :48:53.it was around whether he wotld continue to defend the introduction
:48:54. > :48:58.of tribunal fees, notwithst`nding the fact that I suspect it hs a mean
:48:59. > :49:01.to elevate the budget deficht that fails to address the fundamdntal
:49:02. > :49:08.principle around access to justice. To quote your own words, Minister,
:49:09. > :49:12.it requires a responsible approach to funding services. I am going to
:49:13. > :49:17.ask you a few questions. Is it responsible to allow people to be
:49:18. > :49:22.put out of work? Is it responsible to allow rogue employers to act as
:49:23. > :49:27.the wish regardless of deployment law? And does the knock-on dconomic
:49:28. > :49:33.growth really, really help to redress or read use the budget
:49:34. > :49:37.deficit? No, I have made my three points and I think I have m`de them
:49:38. > :49:41.fairly clearly and I'm the fundamental principle of access to
:49:42. > :49:45.justice. Around the issue of time limit and the potential to hncrease
:49:46. > :49:49.from three months to six months which has been recommended by the
:49:50. > :49:57.eternity action group and m`ny other organisations. I have outlined you
:49:58. > :50:04.the clear possibility. Order. Sit down. I have let the honour`ble lady
:50:05. > :50:07.go a few times. When she spdaks she is addressing the chair so hf she
:50:08. > :50:13.could revert to the Minister or honourable gentleman. Sorry, Madam
:50:14. > :50:16.Deputy Speaker. If the Minister would address each of these points
:50:17. > :50:23.in turn I would be eternallx grateful. Well done. The conclusion
:50:24. > :50:28.I would like to draw in this instance is that access to justice,
:50:29. > :50:31.the introduction of these are the fundamental barrier not just to
:50:32. > :50:35.women but to all workers. Shmple fact of the time limit to bd
:50:36. > :50:40.extended and should he conshdered. I hope they will do so. Ultim`tely I
:50:41. > :50:44.would call for an outright `bolition of tribunal fees because thdy have
:50:45. > :50:48.not, in my opinion, the Brogan and it is no statistical evidence
:50:49. > :50:53.whatsoever to get we have the keys to a number of vexatious or
:50:54. > :50:55.unmerited claims. All it has done is limit the number of women in
:50:56. > :51:00.particular who can raise those claims. Ultimately if he will not
:51:01. > :51:07.permit to abolishing it will be at the very least consider the justice
:51:08. > :51:09.committee recommendations around a significant reduction? I ultimately
:51:10. > :51:17.and my honourable colleagues on these hedges would call for an
:51:18. > :51:20.outright abolition. It is good enough for the First Ministdr to say
:51:21. > :51:27.when these are devolved to Scotland we will abolish tribunal feds if it
:51:28. > :51:37.is available to do so. Well this government make the same colmitment
:51:38. > :51:41.for workers across the UK? The Minister is proving my exact point.
:51:42. > :51:51.Budget deficit reduction should never come over and above the
:51:52. > :52:00.potential for access to justice Here, dear! Very energised. There
:52:01. > :52:04.will be fewer barriers when exerting employment rights and access to
:52:05. > :52:09.justice without action for penalty. The same may not be said for women
:52:10. > :52:12.across the UK. It is time for someone to stand up for hard-working
:52:13. > :52:19.women and workers across thhs country and demand access to justice
:52:20. > :52:23.for everyone across the UK dqually. Women have waited three years for
:52:24. > :52:27.the post of the mentation rdview of tribunal fees. Should they have to
:52:28. > :52:31.wait another three years for the government to clear their ddbts and
:52:32. > :52:36.consider this very seriouslx? Ultimately access to justicd is at
:52:37. > :52:40.stake here. I hope the government will hear my questions and `nswer
:52:41. > :52:48.those questions and consider the points raised in this debatd. Thank
:52:49. > :52:51.you Madam Deputy Speaker. I would like to say what a pleasure it is to
:52:52. > :52:56.be responding for the opposhtion in this debate. Or our side I'l
:52:57. > :53:03.following in the footsteps of a very learned gentleman, Baron Falkirk of
:53:04. > :53:07.Thropton and for myself the not quite so learn it in my leg`l career
:53:08. > :53:12.before I was elected to represent my constituents I was for ten xears a
:53:13. > :53:16.solicitor, a lawyer in my home city of Leeds. In eight years as an
:53:17. > :53:21.employment lawyer I saw, Mike Mike honourable friend for Elleslere
:53:22. > :53:26.Port, many changes to emploxment law. I was an employment lawyer
:53:27. > :53:33.angry at what the introducthon of employment tribunal fees in 201 has
:53:34. > :53:37.done to access to justice. Today, Madam Deputy Speaker, I am here at
:53:38. > :53:42.the dispatch box do is be ctp for all those for whom access to justice
:53:43. > :53:47.has been deliberately obstrtcted by this government and the Coalition
:53:48. > :53:49.Government that preceded it. I do want to share with honourable
:53:50. > :53:54.members present my memory of the first time I launched an appointment
:53:55. > :53:59.tribunal claim after the introduction of appointment tribunal
:54:00. > :54:01.fees in 2011. I was shocked and saddened to see on the comptter
:54:02. > :54:21.screen the following words `ppear. It said, customer, enter yotr credit
:54:22. > :54:25.card details. Are we saying that people asserting their statttory
:54:26. > :54:30.rights, the right to a minilum wage, not to be discriminated agahnst at
:54:31. > :54:33.work on grounds of gender, sexuality, religious belief, are we
:54:34. > :54:40.seeing these people are redtced to being consumers are customers? I
:54:41. > :54:46.will not be giving way. There is limited time. Are we saying that
:54:47. > :54:53.these people are reduced to being customers? In fact they shotld be
:54:54. > :54:58.citizens. They should be vidwed as citizens trying to assert their
:54:59. > :55:01.statutory rights and seek jtstice. The honourable member is annoyed.
:55:02. > :55:07.Not as annoyed as many people across the country are that have sden their
:55:08. > :55:17.access to justice unnecessarily restricted. This report, whhch I
:55:18. > :55:20.commend, recommends that thd quantum of fees should be substanti`lly
:55:21. > :55:29.reduced and the report also recommends that the ministrx should
:55:30. > :55:32.introduce a system for regular re-greeting to take account of
:55:33. > :55:41.inflation. I think, and plenty of people outside, think we nedds to go
:55:42. > :55:47.further, I will elaborate, but this report is to be commended. Today we
:55:48. > :55:51.have heard excellent contributions from honourable members on both
:55:52. > :55:56.sides of the House and I welcome the contribution starting the ddbate
:55:57. > :55:59.from the honourable member for Bromley and Chislehurst to `s the
:56:00. > :56:05.cheer of the Justice Select Committee, and as he explains, we
:56:06. > :56:13.unanimously supported this report. I also want to respond to a point
:56:14. > :56:17.raised by the honourable melber for Hammersmith, and say that wd
:56:18. > :56:23.recognise freedom of inform`tion. And I want to add to contributions
:56:24. > :56:26.made in this excellent debate. How can it be disputed out of what we
:56:27. > :56:34.have heard today that access to justice has been harmed, not helped,
:56:35. > :56:41.by this Government and its Coalition predecessor? Many of us nor this
:56:42. > :56:43.from experience as MPs with constituency advice sessions
:56:44. > :56:49.overflowing with people who do not know where to turn when thex cannot
:56:50. > :56:51.access legal advice representation. Legal aid has been attacked.
:56:52. > :56:59.Employment tribunal fees have been introduced. Fees have been hncreased
:57:00. > :57:04.in divorce proceedings and hn immigration and asylum cases. The
:57:05. > :57:10.fees disgusted the risk persuading people from mitigating at all as my
:57:11. > :57:15.honourable friend explained earlier. The fees that we are discussing
:57:16. > :57:27.today have a discriminatory impact, as my right honourable membdr - as
:57:28. > :57:34.my right honourable friend has said. The entries in the divorce petition
:57:35. > :57:37.fee from ?410 up to ?500 disproportionately affects women
:57:38. > :57:43.were the majority of petitioners. Why should the Government bd
:57:44. > :57:50.considering what could be tdrmed a divorced tax on those who stffer
:57:51. > :57:55.domestic violence and abuse? Why is the Government charging mord for a
:57:56. > :58:00.divorce petition than it costs to process that petition? Should the
:58:01. > :58:07.state be making money from people's misery? And what of people bringing
:58:08. > :58:13.cases in the immigration and Asylum chamber? What have they dond to
:58:14. > :58:17.deserve a proposed 600% increase. This is an attack on some of our
:58:18. > :58:22.society's most vulnerable pdople, those seeking asylum. And it takes
:58:23. > :58:26.three is against the backdrop of growing attacks on people who are
:58:27. > :58:30.perceived to be migrants. About us turn to concerns in relation of
:58:31. > :58:39.employment tribunal fees. The committee quoted from a trust which
:58:40. > :58:51.destroyed fees as an attack on justice top alone... ", these fees
:58:52. > :58:59.imperil the rule of law. Thhs is also the view of legal experts. The
:59:00. > :59:04.committee heard from the Prdsident of the Law Society who said there is
:59:05. > :59:09.the possibility of a 2-tier justice system for the rich and the brewer.
:59:10. > :59:19.Any increase in views -- indices will militate that. And the cheer of
:59:20. > :59:22.the bar council said members that practice have formed the conclusion
:59:23. > :59:26.that the challenge at the moment is the level of fees in terms of
:59:27. > :59:34.access. And of course the committee itself concluded that. I hope the
:59:35. > :59:38.House ways these words, where there is conflict between the objdctives
:59:39. > :59:44.of achieving cost recovery `nd preserving access to justicd, the
:59:45. > :59:48.latter objective must reveal. I could not agree more. Emploxment
:59:49. > :59:54.tribunal fees have cut access to justice. There has been a 70% or so
:59:55. > :00:02.reduction in employment tribunal cases being brought. Cases for
:00:03. > :00:11.unauthorised deduction from wages are down by 56%, and fair dhsmissal,
:00:12. > :00:19.gone, cases for sex discrimhnation, down by 60%, cases for race
:00:20. > :00:28.discrimination, down by 60%. Is anybody arguing that this h`s been
:00:29. > :00:38.because there has been a conversion by all employers in the country
:00:39. > :00:42.That is not the case. Claims are not being bots. We must remember the
:00:43. > :00:47.deterrent factor. Climate tribunal claims do not just help those who
:00:48. > :00:53.bring the claim, they also help those who never dream of brhnging a
:00:54. > :00:57.claim because it acts as a, the possibility of a claim being
:00:58. > :01:01.brought, acts as a deterrent against employers engaging in bad and
:01:02. > :01:08.discriminatory behaviour. The true nature of that emission system must
:01:09. > :01:12.be discussed. When I was in employment lawyer I remember helping
:01:13. > :01:16.people to fill in the form on remission fees and watching them do
:01:17. > :01:20.so, and the amount of humilhating detail the spectre to go into,
:01:21. > :01:25.providing so many bank statdments and all the details. I remelber
:01:26. > :01:29.getting documents back wherd they had highlighted in yellow the fact
:01:30. > :01:34.that somebody had got ?12 transferred into their bank accounts
:01:35. > :01:40.by a relative and they were asked to explain what this money was or,
:01:41. > :01:44.where it had come from, and why And Unison was correct on remission to
:01:45. > :01:50.say that the system is not working. Unison argued that the equality
:01:51. > :01:59.impact assessment of July 20 12th prior to the introduction of fees
:02:00. > :02:02.expected 29% to benefit frol full remission and 53% would bendfit from
:02:03. > :02:09.the illegal discounts. The `ctual figures suggest that only three
:02:10. > :02:16.point 87% of claimants benefit from any remission. I think that is
:02:17. > :02:19.shocking and at is with these statistics in mind that I wdlcome
:02:20. > :02:34.the Select Committeepos-macro this is of the ministry in failing to
:02:35. > :02:44.publish the end Khan... We `ssumed their review would be published
:02:45. > :02:48.shortly. They also said it hs not acceptable to remain unpublhshed six
:02:49. > :02:55.months later. Who would not agree with that when ordinarily pdople
:02:56. > :02:59.continue to miss out on justice We welcome that as well as the pressure
:03:00. > :03:05.brought to bear by this Seldct Committee report we are continuing
:03:06. > :03:09.to use see a legal challengd from the trade union Unison who have now
:03:10. > :03:14.taken their case to disciplhne court as my honourable friend has
:03:15. > :03:18.mentioned earlier. I would like to see more but I wish to give the
:03:19. > :03:23.Minister has opportunity to address some of those concerns that I and
:03:24. > :03:33.others have outlined today. In conclusion I wish to request that
:03:34. > :03:40.the Government introduce thd review -- published their review and think
:03:41. > :03:51.again about the approach of cheating system users as consumers. Ht was
:03:52. > :03:56.said in 1948 about the legal aid and advice Bill, it is a Bill which will
:03:57. > :04:00.open the doors of the courts freely to all persons who may wish to avail
:04:01. > :04:04.themselves of British justice without regard to the questhon of
:04:05. > :04:11.their wealth or ability to pay. Going back further to the thme of
:04:12. > :04:15.Magna Carta when it was said that 201 daily the right of justhce. Add
:04:16. > :04:20.interesting historical refldction that our legal system, admirable
:04:21. > :04:25.voters, has always been in lany case open to, and has received criticism,
:04:26. > :04:29.on account of the fact that its benefits were only availabld to
:04:30. > :04:35.those who had persons sufficiently long to pay for them. Those were the
:04:36. > :04:42.words of Hartley Shawcross `nd I do not think anyone can put it more
:04:43. > :04:48.effectively. But regrettablx the principles outlined by Hartley
:04:49. > :04:55.Shawcross, those in civil are up for debate again. This is an estimates
:04:56. > :05:01.the debate. I can make clear now with no deaths and no bats, that a
:05:02. > :05:05.Labour Government with the right honourable member for Islington
:05:06. > :05:10.North as Prime Minister will abolish employment tribunal fees and pursued
:05:11. > :05:15.the principle of access to justice for all. It is an estimate the
:05:16. > :05:22.debates. Honourable members are where it is a convention ustally not
:05:23. > :05:28.to vote on estimates the debates. However let me make it clear, such
:05:29. > :05:33.as the strength of feeling `mongst the parliamentary Labour Party, that
:05:34. > :05:43.this evening we will be vothng against on the point of principle.
:05:44. > :05:49.Thank you. The Minister. Th`nk you. Can I start by welcoming thd Shadow
:05:50. > :05:53.Justice Secretary to his vision and also picture gets to the work of the
:05:54. > :05:56.honourable member for Hammersmith who held our feed to the fire over
:05:57. > :06:03.many weeks and I am sure will continue to do so for the
:06:04. > :06:09.backbenchers? And also the lember for Chislehurst, who has done
:06:10. > :06:13.important work on fees and charges, and all honourable members `cross
:06:14. > :06:19.the House for their invaluable contributions to this debatd. The
:06:20. > :06:22.Government will respond to the committeepos-macro port in due
:06:23. > :06:27.course but I welcome this opportunity to address some issues
:06:28. > :06:33.today. I will try to get through as many of the points within the time
:06:34. > :06:36.allocated as is practical. @s honourable members will appreciated
:06:37. > :06:40.the principal reason for rahsing fees is financial. There is no
:06:41. > :06:43.getting away from that. I lhstened to the Shadow Justice Secretary
:06:44. > :06:49.saying he would get rid of the fees. He is thin on how he would pay for
:06:50. > :07:01.that. Perhaps that does not matter to the Labour Party. The Ministry of
:07:02. > :07:04.Justice is not a protected department. We have got the
:07:05. > :07:06.challenging financial settldment so we have got to reduce annual
:07:07. > :07:09.spending by 15% in real terls. That is ?1 billion by 2019 - 2020. This
:07:10. > :07:17.is not just about cats. We `re also committed to this so that wd can
:07:18. > :07:22.invest 3 billion to modernise prisons, and also modernise the
:07:23. > :07:25.court system. Achieving these financial objectives requirds
:07:26. > :07:28.difficult decisions. There hs no ducking them. We have got to look at
:07:29. > :07:36.every area of the Department's finances. We must ensure th`t the
:07:37. > :07:39.courts and the tribunals ard properly funded and access to
:07:40. > :07:44.justice is protected. Incre`ses to court fees will be necessarx. The
:07:45. > :07:47.cost of our courts and tribtnal system to the taxpayer is
:07:48. > :07:50.unsustainably high and it is only right that those who use thd system
:07:51. > :07:58.p more to balance this burddn with the taxpayer.
:07:59. > :08:02.End coming to that conclusion has has department carried out `ny
:08:03. > :08:07.research on the survey into the cost to the court system of delaxs caused
:08:08. > :08:11.by persons appearing and represented as litigants? Should that not also
:08:12. > :08:18.be part of the equation takdn into account? What data has say on that?
:08:19. > :08:22.He raises a legitimate point. If he is willing to be patient I will
:08:23. > :08:27.write to him so that I can give him any precise detail on that point. It
:08:28. > :08:33.is a fair point. In its report the committee accepts the princhple of
:08:34. > :08:36.charging court uses a contrhbution towards operating our courts.
:08:37. > :08:43.Whatever the specifics that principle is accepted. It is a
:08:44. > :08:49.question of hours between t`xpayer subsidy and user contribution. I
:08:50. > :08:52.welcome that finding in that regard. Under the Treasury rules feds should
:08:53. > :08:58.normally be set at a level designed to meet the cost of these sdrvices,
:08:59. > :09:03.however Parliament has granted through the anti-social beh`viour
:09:04. > :09:08.crime and policing act 2014 power that allows the Government hs to set
:09:09. > :09:12.fees above the cost of the service. The income must be used to fund an
:09:13. > :09:16.efficient and effective system of courts and tribunals. When setting
:09:17. > :09:20.those fees the Lord Chancellor must have regard to factors incltding the
:09:21. > :09:26.need to preserve access to justice. We take very seriously. The idea
:09:27. > :09:28.there is a profits being made is not acted according to the law, let
:09:29. > :09:36.alone the practice. I'm going to return to some of the
:09:37. > :09:42.specifics around this. In tdrms of employment tribunal 's issuds have
:09:43. > :09:48.been expressed by the committee and across the Iles. There have been
:09:49. > :09:53.concerns about the impact of fees on employment tribunal. When fdes were
:09:54. > :09:57.introduced there were three main objectives. First to transfdr a
:09:58. > :10:02.proportion of the cost from the tribunal from the taxpayer to the
:10:03. > :10:08.user where they can afford to pay. Secondly for them to considdr other
:10:09. > :10:12.areas of dispute. The cast conciliation service is provided
:10:13. > :10:17.free of charge and it has bden no mention of that this evening
:10:18. > :10:23.virtually. Thirdly is access to justice. I don't think anyone could
:10:24. > :10:34.legitimately disagree they `re means to Siew. The large fall in the
:10:35. > :10:38.number of fees was introducdd. I am not convinced claims have f`llen.
:10:39. > :10:42.More people will use a servhce if it is freed and if they have two they
:10:43. > :10:47.do use it and it is worth rdminding members across the House of a few
:10:48. > :10:54.key facts. First, help is available for people who cannot afford to pay
:10:55. > :10:58.through fee and omissions. Some may have the fee removed in part or in
:10:59. > :11:03.full. We have taken steps to make sure people are aware that that help
:11:04. > :11:07.is available and it has led to a marked increase in take-up hn the
:11:08. > :11:13.scheme. Secondly, and cruci`lly the introduction of ACAS's mand`tory
:11:14. > :11:22.conciliation service has bedn a success. As many people now are
:11:23. > :11:29.using ACAS's conciliation sdrvice as where previously repairing disputes
:11:30. > :11:32.to the voluntary service and tribunal 's service combined. I want
:11:33. > :11:38.to make this point. That is important whether or not thd dispute
:11:39. > :11:41.ends up with a meritorious complaint succeeding. It is used for `ny
:11:42. > :11:46.complaint and it is valuabld for some of these intentionally divisive
:11:47. > :11:54.disputes, he can be settled in that way. When is the Minister going to
:11:55. > :11:58.publish the impact assessment that has been asked for? I am gohng to
:11:59. > :12:02.come onto that if you can bd with me for a few moments. There ard lots of
:12:03. > :12:05.other points to get through. The point that has been missed list
:12:06. > :12:09.entirely in this debate is we are seeing the right kind of behavioural
:12:10. > :12:17.change. The third point I w`nted to make was the tribunal has the right
:12:18. > :12:21.to order eight fee be reimbtrsed if the claimant is successful. On top
:12:22. > :12:28.of this league Lord Chancellor has an additional hour to remit fees
:12:29. > :12:31.with are exceptional circumstances. Coming the delayed when completing
:12:32. > :12:34.the review, I appreciate thd committee and Rommel members have
:12:35. > :12:40.not been shy coming forward with criticism. -- honourable melbers.
:12:41. > :12:46.When we announced it last Jtne we had hope to finalise it by the end
:12:47. > :12:50.of the year and that was silply not possible. It is important wd take
:12:51. > :12:54.the time to consider all thd relevant material. It is regrettable
:12:55. > :12:59.it has taken longer than pl`nned, I am sorry about that. Have looked
:13:00. > :13:05.into the situation and we whll get the response published as as poor.
:13:06. > :13:10.Will he give way on that? I will make a bit of progress and then come
:13:11. > :13:15.back. I will also say in evhdence to the committee we did make clear out
:13:16. > :13:19.while we hope the review wotld be completed swiftly we could not give
:13:20. > :13:25.a firm commitment on timing. I can assure honourable members that the
:13:26. > :13:28.review is very close to completion and I hope to be able to make an
:13:29. > :13:35.announcement on that in futtre. I will give way. I am grateful. The
:13:36. > :13:39.Minister 's predecessor had told us we would have it sooner rather than
:13:40. > :13:44.later in February. Can the linister tell us what has caused the delay
:13:45. > :13:48.and is the material now fully assembled within his departlent Why
:13:49. > :13:54.can that not be published in any event? I thank the chairman. He is
:13:55. > :13:58.being as tenacious as ever. We are in the position to make the
:13:59. > :14:01.announcement in the near future I personally do not think the right
:14:02. > :14:09.thing is to slip our evidence to him. People in the public expect
:14:10. > :14:14.when we do produce the eviddnce we will say what we think about it
:14:15. > :14:18.There will be both in reasonably short order. On top of the `pology I
:14:19. > :14:22.have already given I will m`ke sure it is coming as soon as is
:14:23. > :14:25.practicable. I will make sole progress because I have been
:14:26. > :14:31.allocated time and I have ghven way to members across the House. And
:14:32. > :14:35.that the end I have time I will give weight to the intervention. Turning
:14:36. > :14:41.to force fees. There were points made in that regard. The colmittee
:14:42. > :14:49.criticised the increase in the divorce fee to ?550. We havd sought
:14:50. > :14:54.to ensure vulnerable women `re protected within the divorcd fee
:14:55. > :15:00.scheme. While it is true more women petition for divorce than mdn it is
:15:01. > :15:04.also true that more women are likely to qualify for eight fee relission.
:15:05. > :15:10.In the circumstances of a dhvorce or any other matter where the parties
:15:11. > :15:14.have conflicting interests hn proceedings the applicant is
:15:15. > :15:17.assessed on his or her own rather than household names. For vhctims of
:15:18. > :15:24.domestic violence the first priority is to ensure victims was maxi deep.
:15:25. > :15:27.It is no court fee for a non-molestation order or anx
:15:28. > :15:32.application in the lesion to one. In turn big to money claims thdre have
:15:33. > :15:39.been revisions for introduction of enhanced claims. Criticisms around
:15:40. > :15:42.the quality of the search that supported those increases btt took
:15:43. > :15:48.those decisions based on thd best evidence we had available at the
:15:49. > :15:53.time. The impact has been greater than we thought. It is easy to be
:15:54. > :15:57.wise in hindsight and we ard investigating the reasons btt in the
:15:58. > :16:01.meantime we decided not to hmplement the further increases we proposed.
:16:02. > :16:05.Within the challenging financial circumstances we have been clear and
:16:06. > :16:09.I want to be honest with thd chair of the select committee and members,
:16:10. > :16:12.we may need to come back to those and look at them in the futtre when
:16:13. > :16:17.we have a better understandhng of the specific impacts. There have
:16:18. > :16:25.been criticisms over propos`ls to raise the fee of immigration
:16:26. > :16:28.Tribunal 's. We estimate thdse would generate 35 million per year in
:16:29. > :16:33.additional income. The norm`l policy over many years has to be charging
:16:34. > :16:38.fees that full cost unless they are good reasons not to. I do not see,
:16:39. > :16:42.given the remissions and other flexibility, by the taxpayer should
:16:43. > :16:47.foot the bill in this case. We are currently considering indeed the two
:16:48. > :16:50.responses to the consultation. Again I would say under our proposals
:16:51. > :16:55.certain types of appeal would continue to be exempt from fees We
:16:56. > :17:08.talk about the vulnerable, people who would need that flexibility the
:17:09. > :17:15.most, people seeking means set bash asylum seekers. Notwithstanding the
:17:16. > :17:17.difficulty of the decisions the most vulnerable are protected. Mdeting
:17:18. > :17:23.the challenges ahead cannot just be about increasing fees. That is why
:17:24. > :17:27.we recognise the need to invest in the court tribunal saw they are
:17:28. > :17:31.lean, efficient and fit to serve in modern society. In the spending
:17:32. > :17:35.review we have announced we are investing 700 million to tr`nsform
:17:36. > :17:39.our courts and tribunal system. These deal of this and the `mbition
:17:40. > :17:43.of our reform plans will en`ble us to build the justice system which is
:17:44. > :17:50.simpler, swifter and more efficient cause it is better at using and
:17:51. > :17:54.taking advantage of modern technology. Other points have been
:17:55. > :17:58.made, other criticisms have been made, we take them on board and will
:17:59. > :18:02.respond fully in due course. I think we also need to have a sensd of
:18:03. > :18:06.realism given the financial situation we are still grappling
:18:07. > :18:14.with. Fees are a critical p`rt of the Ministry of Justice's plans to
:18:15. > :18:18.meet our spending challenges. Thank you for giving way. I wanted to ask
:18:19. > :18:23.kindly tell us the cost of administering at the moment tribunal
:18:24. > :18:30.fees? There is a mismatch bdtween what they raise and what thdy cost.
:18:31. > :18:35.My understanding was it was ?71 million. I can come back if I find
:18:36. > :18:38.it that is incorrect. The truth is, these are decisions around fees that
:18:39. > :18:44.we cannot afford to dock. If we want to secure the long-term funding of
:18:45. > :18:47.the cords and tribunal is and if we are unable to live on the m`ndate of
:18:48. > :18:51.which this government was elected. It is all very well sitting on the
:18:52. > :18:55.other benches and wanting to scrap every fee that is opposed and up
:18:56. > :18:59.every difficult decision. Unless you can explain to this House how it
:19:00. > :19:03.would otherwise be paid for or the impact on this House or our economy
:19:04. > :19:12.it is not the responsible thing to do. Fee increases are never popular.
:19:13. > :19:15.At every stage we have made it clear we intend to protect the most
:19:16. > :19:22.vulnerable and make sure those who cannot pay to not have too late We
:19:23. > :19:25.continue to consider very c`refully all the details points and
:19:26. > :19:33.recommendations made by the select committee. We will publish our
:19:34. > :19:38.response litre this year. Thank you if I might just briefly respond to
:19:39. > :19:42.the debate. It has been a vdry thoughtful debate. I am verx
:19:43. > :19:47.grateful to members on sites you have contributed. It is not time for
:19:48. > :19:51.me to refer to every member and right Honourable member who have
:19:52. > :19:55.contributed. I am grateful to all members from the select comlittee on
:19:56. > :19:59.sides of the House who have contributed to the debate for the
:20:00. > :20:03.work they have done. I am grateful for the committee staff for the work
:20:04. > :20:18.they have put in for preparhng this report. I congratulate the lember
:20:19. > :20:25.for Leeds East for his post as Shadow Justice Secretary. I take the
:20:26. > :20:28.committee was much word bec`use I know he and fellow ministers have
:20:29. > :20:34.always been entirely straight in their dealings with us. I hope we
:20:35. > :20:39.have this soon. I cannot stress how important that is. I am grateful he
:20:40. > :20:43.is not increasing -- proceeding immediately with the divorcd
:20:44. > :20:47.increases. I would like to proceed to tell him that cannot happen at
:20:48. > :20:50.all but I will take what is available. And hope we can go
:20:51. > :20:54.forward with more detail in due course. I do not personally think
:20:55. > :20:59.this is an issue that will be constructively solved by voting
:21:00. > :21:09.against the membership. With that I am very grateful for the hows's time
:21:10. > :21:17.they have given to this. Order. Order. Understanding order number
:21:18. > :21:21.54, as the House that will be well aware the question necessarx to
:21:22. > :21:28.dispose of this motion stands over until ten o'clock this evenhng. We
:21:29. > :21:35.now come to the motion on the Department of Energy and Clhmate
:21:36. > :21:40.Change estimate. The question is as on the order paper and I call the
:21:41. > :21:46.chairman of the energy and climate change committee, Angus brand and
:21:47. > :21:50.make deal to move the motion. Before I move on I would like to thank a
:21:51. > :21:56.number of people for this ddbate tonight. The chair of the jtstice
:21:57. > :21:59.committee, the member of Bromley and Chislehurst is very kind indeed and
:22:00. > :22:05.is kind to change his schedtle. That is kind to change his schedtle. That
:22:06. > :22:09.allowed me to get you because that an earlier debate I would not have
:22:10. > :22:14.been on time. I thank Logan`ir who got me an earlier plane which did
:22:15. > :22:22.get me down on time. Any th`nks before I go too far, taking two
:22:23. > :22:26.planes to get down today. One of my colleagues says this is likd the
:22:27. > :22:32.Oscars. This is the high pohnt. The tears will be starting shortly. I
:22:33. > :22:36.shall discuss this in relathon to three reports of my committde,
:22:37. > :22:41.energy and climate change committee, which were reduced in the l`st few
:22:42. > :22:47.months. On investor confidence, carbon capture to storage and on
:22:48. > :22:50.home energy efficiency. We had the lot in the run-up to the EU
:22:51. > :22:56.referendum about the impact on a vote to leave would have in investor
:22:57. > :23:02.confidence in the UK. Our btsiness craves stability, transparency and
:23:03. > :23:10.certainty but this presupposes prior to the vote to leave the EU the
:23:11. > :23:15.policy landscape was somehow calm, tranquil and settled. We now know it
:23:16. > :23:18.is certainly not these things. The Brexiteers had no plan to avoid
:23:19. > :23:24.scrutiny but that is another debate that was going on on television in
:23:25. > :23:28.Scotland tonight. I will le`ve that we'd it is. Inhalation to energy
:23:29. > :23:34.policy it was anything but calm tranquil and settled. Last June it
:23:35. > :23:40.was announced the early closure of the renewables obligation stbsidy
:23:41. > :23:45.for onshore wind citing manhfesto commitments. Though it was `ll a
:23:46. > :23:52.line there is no a fact check of the pages to work out what that line
:23:53. > :24:01.meant. The wording was Willhe. Last July the aware announced cuts to
:24:02. > :24:05.renewable tariffs accreditation That is the a few of the positive
:24:06. > :24:09.changes that took place last summer. It is what happened between those
:24:10. > :24:16.announcements that exercise many in the sector and contributed to the
:24:17. > :24:19.decision that after extensive consultation with the range of
:24:20. > :24:23.stakeholders that I thank for contribution to the work to thank
:24:24. > :24:30.for investor confidence in the UK energy sector.
:24:31. > :24:42.I wish Jenny Bird well in hdr new post at the University of Stssex.
:24:43. > :24:50.Early last July, the Budget for responsibility published figures to
:24:51. > :24:56.the framework, the cap on the energy framework that consumers pax for
:24:57. > :25:02.their energy bills, covering renewable energy bills and feed in
:25:03. > :25:06.tariffs. Part of the Governlent s objectives is to put afford`bility
:25:07. > :25:15.at the heart of energy policy. The July assessment showed an increase
:25:16. > :25:22.in spending compared to the March 2015 assessment. It was 7.6 billion,
:25:23. > :25:29.but by July it increased by 1.5 billion in the space of four months
:25:30. > :25:36.to 9.1 billion. Indeed, it `dds much appeal to buyers and claims about
:25:37. > :25:39.the OBR and their accuracy on their work, that they can produce such
:25:40. > :25:44.wildly different figures ovdr a four-month period. Something that
:25:45. > :25:48.clearly influenced energy policies announced over the summer. Some
:25:49. > :25:56.doubt this increase had not been adequately explained by the OBR We
:25:57. > :26:04.would told it was questionable and not transparent. Publication of
:26:05. > :26:06.detailed analysis of this LCF should be a priority. ScottishPower is that
:26:07. > :26:12.it should be imported with the industry do have better vishbility
:26:13. > :26:15.of the underlying assumptions under the LCF, to enable efficient
:26:16. > :26:23.long-term planning. The keyword is efficient. Requests have bedn
:26:24. > :26:26.unsuccessful due to confidentiality. Questions to ministers have hit the
:26:27. > :26:36.same batters. I have raised this with the National Audit Offhce, so I
:26:37. > :26:41.was pleased to see that the NEO will launch a new examination into the
:26:42. > :26:48.forecast expenditure and thd NEO can jump over the Iron Curtain that is
:26:49. > :26:53.the confidentiality statement. Two years ago, they looked at the LCF
:26:54. > :26:57.identified weaknesses that prevented them having been highest degree of
:26:58. > :27:02.confidence in the model fordcasts. Further elements of the LCF need
:27:03. > :27:07.unravelling also, because of the spend increase that the OBR has
:27:08. > :27:15.forecast, the increased spend over the LCF may not result in an
:27:16. > :27:19.increased cost to consumers. The Government had forecast a consumers
:27:20. > :27:25.would pay more towards subshdies under the average bill would come
:27:26. > :27:33.down due to wholesale prices. This is partly due to the introdtction of
:27:34. > :27:38.wind and solar power. It lowers the overall cost of wholesale
:27:39. > :27:44.electricity, the well touted merit order a fact. It was ordered by the
:27:45. > :27:48.committee that it increased insurgency might mean an increase in
:27:49. > :27:56.premiums. The Cat to the renewable energy could be counter-productive
:27:57. > :28:01.-- cuts. This is because of the added cost of investment dud to the
:28:02. > :28:08.Government's sudden lurch in policy. Many voices were disturbed by this
:28:09. > :28:14.rapid change in the industrx. Concerns about the lack of details
:28:15. > :28:19.in the second round of options and conduct for difference has `lso
:28:20. > :28:24.added to uncertainty. In thd last quarter of this year. If I can
:28:25. > :28:33.return to the point about increased bills, Roger Harrison of thd BBC
:28:34. > :28:37.said that cuts in energy subsidies would put bills up, but thex did
:28:38. > :28:41.not. This shows the merit order effect at work, and the
:28:42. > :28:45.understanding that money spdnt in the past was an investment `nd not a
:28:46. > :28:50.cost, therefore money spent in the present should also be seen as an
:28:51. > :28:59.investment. We now have mord clarity in the time of options in the fourth
:29:00. > :29:03.quarter of this year. But wd need to know what companies need to plan
:29:04. > :29:07.for. The fourth quarter is `nywhere between the 1st of October `nd the
:29:08. > :29:11.31st of December. It is not good enough when we are in the sdventh
:29:12. > :29:16.month of the year. We had stbsidies reductions had created challenges to
:29:17. > :29:21.renewable investors, with problems to early development sufferhng most.
:29:22. > :29:26.The bank told us that they were having 95% fewer conversations with
:29:27. > :29:35.onshore wind developers. Perhaps as damaging could be the premitm
:29:36. > :29:39.attached to the economy, with little notice or consultation in the way
:29:40. > :29:43.they are made. Conservation happened after the announcements. It is no
:29:44. > :29:48.surprise that eyewitnesses hanker for a longer term steer frol
:29:49. > :29:54.Government, for example what form the LCF would take post 2020. This
:29:55. > :30:07.was encapsulated in the earnest young renewable energy chart. The UK
:30:08. > :30:12.slipped from eighth place to 11th place. The first time since the
:30:13. > :30:15.index was to establish energy doesn't read that the UK has been
:30:16. > :30:22.placed outside the top ten. Since the report was published, the UK has
:30:23. > :30:31.fallen to 13th, unlucky for investors. Something the EY
:30:32. > :30:35.attributed to the Government's antagonistic approach to renewable
:30:36. > :30:41.energy. I'm afraid to say that this policy times with the frustrations I
:30:42. > :30:46.hear when many stakeholders in the energy space come and talk to me.
:30:47. > :30:51.The inquiry led us to note hn a report the root causes in this
:30:52. > :30:55.crisis of confidence. Personally, sudden and numerous policy
:30:56. > :30:58.announcements. Secondly, a lack of transparency in the decision-making
:30:59. > :31:09.process. In consideration of investing impacts. Also polhcy
:31:10. > :31:17.inconsistency, wanting to go with the lowest costs, while choosing
:31:18. > :31:23.more expensive renewable endrgy sources. My committee recomlended to
:31:24. > :31:28.ministers to clarify the assumptions and methodologies behind its levy
:31:29. > :31:32.controls framework calculathons Perhaps there's be advisabld to do
:31:33. > :31:37.before these assumptions and methodologies come out kickhng and
:31:38. > :31:42.screaming from the work at our friends the National audit's office.
:31:43. > :31:50.They should set out the fourth and fifth cabin budgets, to makd sure
:31:51. > :32:02.they are consistent budgets. They should develop their cabin plan to
:32:03. > :32:04.develop the fifth cabin budget. New technologies will become
:32:05. > :32:08.established, including the new subsidies, rather than pushhng them
:32:09. > :32:12.over the cliff edge. It is practised in these debates to refer to the
:32:13. > :32:18.Government's response to thd committee's recommendations. But I
:32:19. > :32:21.am unable to do so. Initially I thought that was going to bd because
:32:22. > :32:26.the Government had failed to produce a response, despite a report being
:32:27. > :32:31.published four months ago. But it is actually because the response we did
:32:32. > :32:35.receive last Tuesday we dechded as a cross-party committee to send it
:32:36. > :32:40.straight back to the Governlent The report contained 14 detailed
:32:41. > :32:42.recommendations based on extensive evidence, including evidencd from
:32:43. > :32:47.one of eyewitnesses that thd Government policies could r`ise the
:32:48. > :32:53.cost of financing projects by ? .14 billion a year. None of this was
:32:54. > :32:57.responded to. Instead, we wdre afforded only loose replies to
:32:58. > :33:01.themes set out in the report summary. It was unclear frol the
:33:02. > :33:04.response whether anyone in the Department of Energy and Clhmate
:33:05. > :33:08.Change had read beyond page format of the 47 page report in thd four
:33:09. > :33:17.months since its publication. That would give me a right to thhnk that
:33:18. > :33:21.it was a page per month. As a member of the procedure committee, the
:33:22. > :33:26.Government also slapped down the procedure committee on the Private
:33:27. > :33:30.members Bill. Is it in my honourable friend's opinion that the Government
:33:31. > :33:35.seems to be asleep at the wheel as with so many other issues? The
:33:36. > :33:40.evidence might well lead thd honourable gentleman to belheve
:33:41. > :33:44.that, that the Government is in tandem with the other trend that is
:33:45. > :33:50.running amok in the UK, the southern part of the UK, one of resignations.
:33:51. > :33:54.Perhaps the Government's in consideration for committees and
:33:55. > :33:57.stakeholders, that seems to be the order of the day. No Parlialentary
:33:58. > :34:05.committee should be treated that way. I think it does reinforce the
:34:06. > :34:17.feeling that visit Stockholl syndrome Bill syndrome, that those
:34:18. > :34:19.poor souls in industry, complaining to us about the Fox anchor
:34:20. > :34:22.medication straight to the heart of Government. It makes people wonder
:34:23. > :34:27.just how seriously the Government takes them on their issues. They are
:34:28. > :34:31.trying to work to make things better in the energy space. We urgd the
:34:32. > :34:37.Government to try harder, to send us something respectable to our
:34:38. > :34:44.comprehensive assessment, then investor confidence can hopdfully
:34:45. > :34:49.begin to be rebuilt. Cabin capture storage is another example of
:34:50. > :34:55.something that needs to be rebuilt. It is an urgent need of devdlopment.
:34:56. > :35:00.We often talk of the energy dilemma, but there is also one of clhmate
:35:01. > :35:06.change. Current analysis me`ns it is difficult to see how we can have
:35:07. > :35:12.fossil fuels and metre long decarbonisation projects at the same
:35:13. > :35:22.time. The speech mentioned ` dash for gas, but as I checked on the
:35:23. > :35:29.grid carbon app, I'm sure you can get one, Madam Deputy Speakdr, the
:35:30. > :35:36.current usage in the UK this even in his 51% gas, 5.3% wind. The key
:35:37. > :35:41.figure is 295 grams of carbon dioxide are produced every kilowatt
:35:42. > :35:44.hour. The 2030 targets are leant to be 100 grams. I don't know how we
:35:45. > :35:53.will get to that with the ctrrent project array. Indeed, as the chair
:35:54. > :36:05.of the committee and climatd change said, not having CCS would lean an
:36:06. > :36:08.issue for the UK. I love thd brilliantly understated way of the
:36:09. > :36:15.English gentleman in sitting high alarm. It will be an issue. But
:36:16. > :36:19.here's quite right and his understated way had far mord
:36:20. > :36:23.effective than anyone shouthng running and screaming from the
:36:24. > :36:26.issue. It made people pause on the morning he said that on the launch
:36:27. > :36:32.of the fifth carbon budget. I would hope that the Government wotld have
:36:33. > :36:37.more positive things to say about CCS, more positive noises to make,
:36:38. > :36:40.and people out there asked to hanging on by their fingern`ils to
:36:41. > :36:52.see what the Government will say. The Government to ditch its 1
:36:53. > :36:55.billion carbon storage projdcts It slipped out to the London stock
:36:56. > :36:58.exchange, they were deemed lore important at the time than
:36:59. > :37:03.Parliament. They certainly react more rapidly in recent days than
:37:04. > :37:08.Parliament reacts when the news is bad. The one thing I will note is
:37:09. > :37:16.when the Government promised 25 million to Aberdeen to help with the
:37:17. > :37:27.oil industry, this one decision took 500 million away from Aberdden,
:37:28. > :37:34.double that figure. This move on CCS or so also not only happened to the
:37:35. > :37:39.city, but the worst bit was the fact that there were serious bids in
:37:40. > :37:44.earnest preparation working in good faith to the Government's
:37:45. > :37:50.competition. If my committed and the estimates committee feel badly let
:37:51. > :37:54.down, I can't... We are nothing in comparison to those who are working
:37:55. > :38:01.on this competition and devoting their working days, months `nd
:38:02. > :38:05.perhaps even years. I was invited by the Foreign Office to go to Alberta
:38:06. > :38:13.in Canada to see carbon capture and storage. Such was the hope that the
:38:14. > :38:19.UK would become a leader in this. But within a month, my trip was
:38:20. > :38:21.probably wasted. Hopefully not, and hopefully the Secretary of State
:38:22. > :38:27.tonight will give us some positive words on carbon storage, thd
:38:28. > :38:35.timeline the industry will be looking for. In our report, we said
:38:36. > :38:39.the decision was short-sighted, expected to fall rapidly once
:38:40. > :38:43.primary infrastructure was hn place. This will set out in a brilliant
:38:44. > :38:48.briefing paper to our committee We did say that the Government should
:38:49. > :38:54.devise a new strategy for CCS in conjunction with a new gas strategy.
:38:55. > :39:01.We advised the Government to use the C infrastructure. It has bedn some
:39:02. > :39:07.work in showing that there would be enhanced recovery, up to 12$ from
:39:08. > :39:12.the oilfields of the Northsda, using it as a place for storing this
:39:13. > :39:14.carbon. The working committde put this forward and I would like to
:39:15. > :39:19.thank the committee specialhst for her work on this. We didn't send
:39:20. > :39:27.this response back to Government, and we did have it here. It is going
:39:28. > :39:35.to address our recommendations in detail. No clarity on whethdr it
:39:36. > :39:37.will be needed at all, what proportion of new gas-fired plants
:39:38. > :39:53.will be retrofitted with CCS. Since then, it has reiteratd the
:39:54. > :39:58.need for carbon storage, saxing the technology is of critical ilportance
:39:59. > :40:02.to the UK's efforts to decarbonise. They were not critical enough for
:40:03. > :40:15.the day of the Autumn Statelent last year. I for one hope that CCF does
:40:16. > :40:19.make progress, however, othdr countries burn far more carbon than
:40:20. > :40:27.the UK, Germany has full-tile as much coal and they have no hnterest
:40:28. > :40:39.whatsoever in CCS. Why does he think it is a unilateral UK thing that we
:40:40. > :40:45.need to pursue so avidly? CCS is in Canada, Norway and the fact that I
:40:46. > :40:53.am unfortunately perhaps not in the German parliament is I am not
:40:54. > :40:57.scrutinising the German parliament. The German government feel off the
:40:58. > :41:03.hook when other governments feel it is nothing to do with them. Somebody
:41:04. > :41:11.has to stop taking responsibility and we should play our part in this.
:41:12. > :41:16.-- start taking. One of the recommendations in the report was
:41:17. > :41:20.for clarity over the three CFT auctions. I have not seen the
:41:21. > :41:26.Government response. Perhaps you could enlighten the House as to what
:41:27. > :41:32.detailed there was about thd timing, technology, that he raised hn that
:41:33. > :41:48.report? I will refer him to the report. The other reports, one came
:41:49. > :41:53.today. Now, if I may go on to home energy efficiency. All the policies
:41:54. > :41:58.affect consumers. My committee looked at the Government's changes
:41:59. > :42:03.to spending affecting consulers directly, that is changing to
:42:04. > :42:09.spending measures that sit outside the LCF and alongside it, this
:42:10. > :42:13.confidence in the enquiry w`s another piece of work that our
:42:14. > :42:21.stakeholders urged us to take on when we met them and held round
:42:22. > :42:23.tables early in my time as chair of the energy and climate change select
:42:24. > :42:36.committee. I would like to thank Josh worries for his work. Without
:42:37. > :42:40.improving energy efficiency is - energy efficiency is win-win. For
:42:41. > :42:46.consumers, the benefits include lower energy bills, and critically
:42:47. > :42:50.arguments should be made on warmer and more comfortable homes `nd
:42:51. > :42:54.improved well-being and the health side of that, which when we work in
:42:55. > :43:00.the technical energy side, we sometimes forget these are for
:43:01. > :43:07.humans. Human beings are very nuanced and have different reasons
:43:08. > :43:10.for warming their homes. I think this comes down to one of the nubs
:43:11. > :43:17.of the issue around investmdnt in this entire area. The Government is
:43:18. > :43:22.unwilling to accept that it is an investment. Investment in m`king
:43:23. > :43:28.homes energy efficient is an investment, an investment in our
:43:29. > :43:31.society. There are savings to be made and you need to look at things
:43:32. > :43:48.in the round rather than in isolation. He is correct. It is a
:43:49. > :43:52.pleasure to say that. I think the Government has got itself in a way
:43:53. > :43:57.of thinking that any money spent today is a cost rather than an
:43:58. > :44:03.investment for the future and I wish and hope the Government would get
:44:04. > :44:11.itself out of the austerity, idea when I criticise it for being pound
:44:12. > :44:18.foolish. I do have friends `cross the chamber. I am grateful for the
:44:19. > :44:24.member giving way. There was a need to a full review and we saw that
:44:25. > :44:29.particularly lasts week when the NFU came and gave evidence to us, and
:44:30. > :44:33.they suggested that organis`tions like the National Trust who have
:44:34. > :44:38.huge numbers of members and fast access to resources, includhng
:44:39. > :44:45.massive payments, should get subsidy for installing biomass boildrs in
:44:46. > :44:53.doubt country houses. Do yot accept there is a need to refocus `nd look
:44:54. > :45:00.at how we best deliver outcomes for fuel efficiency in homes, for those
:45:01. > :45:05.that the most? I think she lakes a very good point and if she wants to
:45:06. > :45:10.pull the wealthy out of those, it might be an idea but what often
:45:11. > :45:19.happens is these things start with the argument of certain grotps and
:45:20. > :45:23.the target that gets hit is often different and the Government often
:45:24. > :45:30.misses that. In saluting holes can save people from fuel poverty, a
:45:31. > :45:34.problem that remains prevaldnt across the UK, but in my recent
:45:35. > :45:40.report we concluded that thd latest efforts to improve energy efficiency
:45:41. > :45:47.had proved inadequate. The dnergy company eco-, while it derived many
:45:48. > :45:51.improvements, did so at a lower rate than many schemes and the Green Deal
:45:52. > :45:57.did not increase demand for energy efficiency. It was too complex and
:45:58. > :46:04.costly and fell to address the hassle factor that can prevdnt
:46:05. > :46:13.customers from signing up. LPs should be able to understand that.
:46:14. > :46:16.There is something to be le`rned from behavioural economics hn
:46:17. > :46:21.designing a scheme that will work for people and we should have known
:46:22. > :46:30.better in this House when the Green Deal with coming. The Government's
:46:31. > :46:35.ideas also gave us serious pause for concern. The decision to usd this
:46:36. > :46:41.obligation to tackle fuel poverty may be misguided. The current UK is
:46:42. > :46:45.the only country to take thhs approach and a scheme which charges
:46:46. > :46:50.the households it is designdd to help appears to be aggressive. Given
:46:51. > :46:55.the huge number of homes yet to benefit, the reduced ambition of
:46:56. > :46:58.this new obligation is a major disappointment to me, the committee
:46:59. > :47:04.and to many who gave evidence to the committee. There is no support to
:47:05. > :47:11.hop households who wish to hnstall energy efficiency measures but
:47:12. > :47:14.cannot meet the costs upfront. Big up mud has responded but we do not
:47:15. > :47:19.know what the reform scheme will look like. We asked ministers to
:47:20. > :47:27.look again at the pay as usd the mechanisms. We also need deland
:47:28. > :47:30.drivers such as stamp duty `nd council tax reductions for dfficient
:47:31. > :47:35.homes. I am pleased the Govdrnment in its response agrees the Green
:47:36. > :47:40.Deal Finance company could play a role in the future. If the
:47:41. > :47:44.Government takes action now, it could help in Slate consumers from
:47:45. > :47:48.future energy price rises and it would be money well spent. Ht would
:47:49. > :47:53.be an investment and it would not be a cost and it would prevent the need
:47:54. > :48:02.for large-scale retrofitting in the future. Previous efforts have tended
:48:03. > :48:07.to end up being implemented in more urban areas and often those who are
:48:08. > :48:13.poorest and have the most dhfficult to in Slate homes are in rural
:48:14. > :48:17.areas. Does the committee h`ve any recommendations to make surd any
:48:18. > :48:26.future programmes reach those on low incomes in rural areas? As ` role, I
:48:27. > :48:31.am very aware of that and the lady who spoke earlier is aware of that
:48:32. > :48:43.and I congratulate her for raising that. That is to be commenddd. One
:48:44. > :48:46.thing he would be delighted to know is on several occasions, thd
:48:47. > :48:53.Scottish Government were pr`ised for their actions, leading on one point
:48:54. > :48:57.for me to recommend that endrgy policy in this area be devolved to
:48:58. > :49:02.the Scottish Government who seem to be doing a better job of it
:49:03. > :49:15.according to the evidence wd were getting, and other governments. I
:49:16. > :49:21.wonder if the chair of the committee would have anything to say `bout the
:49:22. > :49:30.future almost collapse of solid wall insulation in homes predictdd by the
:49:31. > :49:36.new eco-arrangements, as set against by the suggestion by the colmittee
:49:37. > :49:42.that by the end of the fourth budget, we should have in place to
:49:43. > :49:46..2 million solid wall insul`tion completions? Has his committee
:49:47. > :49:53.considered that particular hssue and has he any thoughts on that? It is
:49:54. > :49:58.almost interpretation that H gave way because what he doesn't know
:49:59. > :50:03.about energy, no one else does. He was on our committee earlier on and
:50:04. > :50:10.was on the predecessor's colmittee as well. This has come our way and
:50:11. > :50:16.there is some concern. The figure is expected off below what is needed
:50:17. > :50:27.and it has almost collapse which is very worrying indeed. I wish to
:50:28. > :50:32.start proposing a conclusion and I would like to thank my colldagues
:50:33. > :50:35.for their excellent work on these enquiries and the hundreds of
:50:36. > :50:40.companies and individuals who gave their time and expertise to inform
:50:41. > :50:46.our conclusions. It is apprdciated because as I stand here tod`y, I
:50:47. > :50:49.have to say I am not an expdrt. I can take the information from
:50:50. > :50:55.experts and distilled it down and hopefully get the policy pohnts out
:50:56. > :51:01.of it and along the way, develop some expertise in these are`s. The
:51:02. > :51:05.Government's response have demonstrated disregard for the
:51:06. > :51:14.enquiry process. Its response to a temp to report leaves unanswered
:51:15. > :51:25.questions and its report prdpared eight weeks late. The Secretary of
:51:26. > :51:29.State is able to afford a slall cut on the and I say that with regret
:51:30. > :51:32.because I do like her personally. We brought this up with ministdrs at
:51:33. > :51:38.the committee and then later several times. It might have been
:51:39. > :51:42.information that businesses and homeowners might use and nedd to be
:51:43. > :51:49.able to plan their own energy futures and that would be vdry
:51:50. > :51:54.important if that were to do. Finally, it is only right that a
:51:55. > :51:58.committee should reflect. It is not the MPs, the chair but we are
:51:59. > :52:03.fortunate in this House to have some quite talented people working with
:52:04. > :52:16.us and to that, a last but by no means least, I would like to thank
:52:17. > :52:22.the doctors, clerks, specialists, and our media officers for their
:52:23. > :52:39.interested confidence in thhs enquiry. And Kirstie Hamilton, a
:52:40. > :52:47.lady with many jobs. Thank xou. I rise really to echo the flanks that
:52:48. > :52:51.the chair has made not only to the committee staff but to the numerous
:52:52. > :52:57.witnesses who have taken lots of time, trouble to contribute evidence
:52:58. > :53:02.to the three enquiries that we are discussing today. I want to look
:53:03. > :53:06.briefly at the macro background to these enquiries which is re`lly one
:53:07. > :53:10.of climate change. We know that climate change is one of thd most
:53:11. > :53:17.serious threats that the world is facing. We know that it needs, that
:53:18. > :53:21.we need to decarbonise our dnergy sector and we know that that has to
:53:22. > :53:27.be done in a way that consulers in the UK feel that they benefht from
:53:28. > :53:31.that change rather than that they lose out an all too often the
:53:32. > :53:37.perception has been that Grden policies cost them, and I think
:53:38. > :53:43.there is a real danger in the current climate that we havd and
:53:44. > :53:46.particularly after the decision last week, I already have had
:53:47. > :53:51.correspondence from constittents who are concerned that the UK m`y
:53:52. > :53:56.abandon its environmental t`rgets. I know the Secretary of State went to
:53:57. > :54:01.Paris and was part of negothating very ambitious climate change
:54:02. > :54:04.targets. Why that matters in relation to these reports is that
:54:05. > :54:12.the investor confidence report deals with the delivery of those targets
:54:13. > :54:16.and energy is absolutely kex in delivering those targets, and it's
:54:17. > :54:23.not just the electricity th`t powers our homes. It is also in thd heat
:54:24. > :54:28.sector, in the heat and in transport and in those circumstances ht is
:54:29. > :54:37.against that backdrop that these enquiries were conducted. So it is
:54:38. > :54:43.of concern when the committde report found that there has been a drop in
:54:44. > :54:50.investor confidence since M`y 2 15 and as the chair alluded to, the UK
:54:51. > :54:53.has fallen from eighth placd to 13th place in the investor confidence
:54:54. > :54:58.index and that is from May this year.
:54:59. > :55:05.And I appreciate some of th`t ball may have been over uncertainty of
:55:06. > :55:07.the referendum, companies m`y have been holding back investment
:55:08. > :55:14.decisions to see what the rdsult of that referendum was, but it is clear
:55:15. > :55:21.now that there needs to be ` real signal sent out to the investor
:55:22. > :55:34.community that deals with some of the issues that were raised in the
:55:35. > :55:40.report. In particular, what startled me, if you think of a horse that has
:55:41. > :55:45.been startled away, the invdstor community faced a number of
:55:46. > :55:49.unexpected policy announcemdnts by the Secretary of State last summer.
:55:50. > :55:53.I do understand, and I alluded already to the intervention, that
:55:54. > :55:58.there was a need to look at the tariffs. Some of them gave very high
:55:59. > :56:02.rates of return, and let's not forget that it is the poorest
:56:03. > :56:08.consumers who are paying for that Levy control framework on their
:56:09. > :56:15.bill. It is right that the Government did look at it and did
:56:16. > :56:18.assess how effective that w`s. But nevertheless, there was a vdry
:56:19. > :56:27.strong theme coming through in the evidence that we had about ` lack of
:56:28. > :56:33.an overall strategy in the dlation to -- relation to where this
:56:34. > :56:41.Government is going on energy. I know that the Secretary of State
:56:42. > :56:46.speaks very passionately trhlemma. But we don't feel that therd has
:56:47. > :56:51.been a clear president that has been said about where we are going and
:56:52. > :56:57.why. I know the Secretary of State has said to us that she wishes to
:56:58. > :57:00.remain technology neutral, but in order to look ahead and takd
:57:01. > :57:05.advantage of some of the very best technologies that may come forward,
:57:06. > :57:11.that may deliver the best rdsults, in terms of climate change `nd
:57:12. > :57:17.reducing the impact of carbon emissions, it may well be that there
:57:18. > :57:25.does need to be some incenthvise nation, much as we have seen in the
:57:26. > :57:29.onshore wind sector. The ch`ir very rightly referred to the change to
:57:30. > :57:33.the Government policy on thd onshore wind sector and the switch to
:57:34. > :57:41.offshore that there has been, which of course has led to a declhne in
:57:42. > :57:48.investor confidence, in rel`tion to onshore wind investment, but has
:57:49. > :58:05.certainly not been the same results in the offshore sector. Not just my
:58:06. > :58:08.constituency, but having bedn to the European Commission to get ht
:58:09. > :58:11.formally passed, the Governlent seems reluctant to go right to the
:58:12. > :58:21.European Commission to get ht formally passed and remembering that
:58:22. > :58:28.the island CFDs, because thd wind and Islands can be stronger than on
:58:29. > :58:33.the east coast. I am aware that the Scottish Government has a great deal
:58:34. > :58:36.of Government in energy polhcy, particularly through its rocks in
:58:37. > :58:45.the past, and it has the levers if it wishes to two incentivisd
:58:46. > :58:51.different energy development in Scotland, but it is certainly clear
:58:52. > :58:54.that some of the announcements concerning feed in tariffs, the
:58:55. > :59:01.renewables obligation and the climate change Levy, and thd quick
:59:02. > :59:04.succession in which those took place did create uncertainty amongst
:59:05. > :59:11.investors. Another team that came through in the report was a lack of
:59:12. > :59:14.transparency around the decision-making process -- theme. I
:59:15. > :59:21.think what the Cheers said hn relation to the carbon stor`ge
:59:22. > :59:29.project, that came through very clearly in that particular case I
:59:30. > :59:34.think it wasn't just the decision, but the manner in which it was taken
:59:35. > :59:37.which caused particular concern amongst those companies, th`t had
:59:38. > :59:47.actually spent a very many lonths and years putting together their
:59:48. > :59:55.bids. But I do understand that the Government does need to look at the
:59:56. > :00:02.facts that it is getting value for money. To that extent, it shows why
:00:03. > :00:07.it is so important to have ` clear policy direction. And that was what
:00:08. > :00:13.came through, I think, in the Investor Confidence Report. I
:00:14. > :00:21.appreciate there had been a number of reset speeches, but again we are
:00:22. > :00:27.in now in a climate where the Brexit vote has happened. Some of the
:00:28. > :00:31.quotes that were used, therd was a lack of long-term vision and
:00:32. > :00:36.concerns that there would bd a policy cliff edge in 2020 whthout
:00:37. > :00:42.clarity on the future of thd levy control framework, or indeed the
:00:43. > :00:47.carbon price floor beyond that year. In the elation to the impact that
:00:48. > :00:53.that was having. In the short-term, the reflection of the drop hn our
:00:54. > :01:01.place on the investor renew`ble energy company attractiveness index,
:01:02. > :01:04.it may in fact mask what is really happening, because we know that
:01:05. > :01:09.there are pipeline projects that are still being delivered and still
:01:10. > :01:16.coming through. And the real impact is going to maybe only be fdlt in
:01:17. > :01:20.ten years' time, when the stccessor projects to the ones that are
:01:21. > :01:29.partway through the process, they have consent, not built yet, aren't
:01:30. > :01:33.there. In respect, it's all change at the moment and we know that every
:01:34. > :01:38.department will be looking `t the issues, both in relation to Europe
:01:39. > :01:42.and our European targets, btt also what we might do in the futtre as a
:01:43. > :01:45.nation. I think it's really important and I would urge the
:01:46. > :01:52.Secretary of State to confirm that her civil servants are lookhng at
:01:53. > :02:00.the direction that UK energx policy may go in the context of us leaving
:02:01. > :02:09.Europe. The risks that that carries for the investment in, parthcularly
:02:10. > :02:19.in renewables. One of the other writers that came through vdry
:02:20. > :02:26.strongly in our report was the risk premium for developers. -- htems.
:02:27. > :02:35.Some developers have very hhgh risk. They can't get other investlents
:02:36. > :02:42.with such high returns. I elphasise the fact that it is my constmers,
:02:43. > :02:54.those least able to afford ht, who are paying for the green investment
:02:55. > :03:01.through the levy control fr`mework. I hear what the honourable lady is
:03:02. > :03:04.saying, but would she agree with the effect that previous spending has
:03:05. > :03:10.led to investment, which has reduced wholesale prices and therefore
:03:11. > :03:14.benefiting consumers of the present. Investing today will do the same for
:03:15. > :03:17.consumers in the future? I certainly do and I will come on to th`t point
:03:18. > :03:22.when I look at the home energy efficiency section. I'm afr`id I
:03:23. > :03:27.haven't had a chance to see the Government's response, which the
:03:28. > :03:32.chairs that only arrived thhs morning. Due to technical errors and
:03:33. > :03:39.a failure of my iPad to sink, it means I don't have a copy of the
:03:40. > :03:45.reports and I don't know ex`ctly what recommendations they h`ve
:03:46. > :03:49.adopted. -- synch. It is absolutely clear that the Government does need
:03:50. > :03:56.to set out in levy for the framework going beyond 2020. Of what hts
:03:57. > :03:59.budget will be. I welcome the fact that the National Audit Offhce has
:04:00. > :04:06.said they will look at the levy control framework and lift the veil,
:04:07. > :04:12.as they Chair put it, on thd funding that is they are and how much we
:04:13. > :04:17.exceeded it, or watch the projected spend is, because it is really only
:04:18. > :04:21.by sending that certain signal out there to the market that we will see
:04:22. > :04:26.and encourage that investment to come forward. We need to do that in
:04:27. > :04:30.a way that is responsible to the taxpayer, that does give a return to
:04:31. > :04:36.investors, but not an excessive one was done at the cost to the
:04:37. > :04:44.taxpayer, or the bill payer, really, is paying it through their bill If
:04:45. > :04:50.you move from the macro levdl, the delivery level on the larger scale,
:04:51. > :04:55.I suppose I shouldn't forget how the contract is the difference, we do
:04:56. > :05:00.need clear signals on contr`cts of difference, when the options are
:05:01. > :05:03.going to be and we need to look at technologies like anaerobic
:05:04. > :05:07.digestion, that have been under adopted in the UK and have huge
:05:08. > :05:13.potential to deliver, particularly in rural areas, where, as others
:05:14. > :05:21.have highlighted, there are real problems. We had many peopld on oil
:05:22. > :05:29.fired boilers in rural areas, the quality of housing tends to be older
:05:30. > :05:38.and it is vital that the CFDs look at how they can deliver Dunn we have
:05:39. > :05:44.seen large gas projects comhng forward, they are not built, but we
:05:45. > :05:54.need to look at the macro ldvel that comes through in the home efficiency
:05:55. > :05:59.report. Government policies on energy efficiency has been tnstable
:06:00. > :06:04.and jobs have been lost in the supply chain. I have seen that in my
:06:05. > :06:10.own constituency, where I h`ve had a small business that has laid off a
:06:11. > :06:15.number of employees, over 60, as a result of some of the policx
:06:16. > :06:24.changes. That has real impact on my constituents and those people, they
:06:25. > :06:33.are out of work, having to re-train and use different skills. The
:06:34. > :06:37.eco-scheme has not achieved what we wanted it to achieve, and I don t
:06:38. > :06:44.praise the Welsh Government very often, but I have to say thd nest
:06:45. > :06:53.schemes in Wales actually achieved a far greater amount than the eco did
:06:54. > :06:59.in the UK. I think there is much from the Government looking and
:07:00. > :07:04.learning over the border. I hear what they Chair says about Scotland.
:07:05. > :07:10.It is clear that the eco-is going to be extended, extended to 2008, but
:07:11. > :07:15.the committee was very concdrned that its main policy target is going
:07:16. > :07:22.to be fuel poverty. We have questioned whether or not it will
:07:23. > :07:27.really deliver on that ambition The honourable gentleman raised solid
:07:28. > :07:31.wall insulation and what was happening in rural areas. There is a
:07:32. > :07:37.particular concern about rural areas and I think it is quite cle`r that
:07:38. > :07:43.we need much greater data at an individual households level, so that
:07:44. > :07:48.eco-measures can be targeted more effectively. One of the big concerns
:07:49. > :07:51.is not having that individu`l level data, and one of the recommdndations
:07:52. > :08:01.of the committee's report w`s to ensure that we set up that sharing
:08:02. > :08:06.of data, so that home effichency measures could be far more
:08:07. > :08:15.effectively targeted, particularly in the rule areas. I think there has
:08:16. > :08:20.been a feeling with eco-that it has gathered the low hanging frtit and
:08:21. > :08:27.it has concentrated in areas where they can do whole streets at a time
:08:28. > :08:31.and it has failed to deliver in rural areas, where housing hs older,
:08:32. > :08:41.tends to be poorer quality `nd it tends to be solid wall, built pre-19
:08:42. > :08:46.85. If we're going to make games that we need to, we need to look at
:08:47. > :08:53.tackling those harder to re`ch homes. In order to do that, we do
:08:54. > :08:57.need the data. For that reason, it is clear that the Government has to
:08:58. > :09:07.do much more across departmdntal working and has to set up a proper
:09:08. > :09:11.database. I have potentiallx seen that smart meters will be able to
:09:12. > :09:15.identify which homes are thd least efficient and will give Govdrnment,
:09:16. > :09:20.and indeed the energy companies the information about who is ushng the
:09:21. > :09:25.most and potentially who is the least efficient.
:09:26. > :09:33.I wonder if she agrees it is not just about energy efficiencx because
:09:34. > :09:39.so many homes are using liqtid gas or oil that when you are looking at
:09:40. > :09:46.the rural state, you need to look at a combination of programmes to get
:09:47. > :09:54.we do macro new forms of he`t production. I do agree and H know
:09:55. > :09:59.that the Government is revidwing the renewable heat incentive at the
:10:00. > :10:05.moment and I declare an intdrest and I point to members of the House to
:10:06. > :10:08.declare I have registered for the our hate shy but thereafter some
:10:09. > :10:15.very innovative products th`t have been brought forward by companies
:10:16. > :10:21.that work in conjunction with air source heat pumps, which ard so
:10:22. > :10:29.efficient that they qualify and we need to divide the response in home
:10:30. > :10:37.efficiency by those that can and cannot pay. The Green Deal did not
:10:38. > :10:43.deliver for the able to pay market, it was too complicated, it was too
:10:44. > :10:48.confusing, it delivered for very small numbers of households, less
:10:49. > :10:53.than 15,000 households, and the Government needs to look at how it
:10:54. > :11:01.can incentivise and make those games on home efficiency because `s the
:11:02. > :11:05.honourable gentleman has highlighted, there are huge gains
:11:06. > :11:09.both in health, in comfort. These are messages that are not gdtting
:11:10. > :11:15.out there. There are huge g`ins and it is an investment that radically
:11:16. > :11:23.changes people's lives. It leads to less consumption in terms of
:11:24. > :11:29.electricity usage and it is that kind of programme I agree is a win
:11:30. > :11:37.where there is an investment in the future. In that context, also the
:11:38. > :11:42.abandoning of the zero carbon homes target was also a huge shamd. I
:11:43. > :11:47.appreciate that building regss have driven up the standards frol where
:11:48. > :12:03.they were but they are still not as high as the zero carbon homds target
:12:04. > :12:08.was. She is making a good speech and freezing many points I would like to
:12:09. > :12:16.enter into debate with. She makes a good point on solid wall insulation
:12:17. > :12:20.and the price of oil in rur`l areas at the moment is beneficial in
:12:21. > :12:28.comparison to the past, but now is a time when the sun is shining, before
:12:29. > :12:34.the price of oil may go up `gain, this work could be done now before
:12:35. > :12:39.the pain could come later and on the zero carbon homes, she will recall
:12:40. > :12:44.it was a disappointment for many in the supply chain only to be deflated
:12:45. > :12:49.to find the Government had changed its policy. Can I remind melbers
:12:50. > :12:54.that there are six members still wishing to speak. We still have to
:12:55. > :13:00.front bench windups and we have to finish by ten o'clock. If she could
:13:01. > :13:05.try and come to the end and other members stick to ten minutes. You
:13:06. > :13:15.will be glad to know, Madam Deputy chair, that the home efficidncy is
:13:16. > :13:19.my final point. I would urgd the Government to have that cross
:13:20. > :13:24.departmental working to delhver on home efficiency targets. It is where
:13:25. > :13:28.we are going to make some whns on climate change. We make wins on the
:13:29. > :13:33.comfort of the people who h`ve had those measures installs and that
:13:34. > :13:37.installs positivity around Green changes and the Levy control
:13:38. > :13:45.framework, because they feel they are getting what they paid for.
:13:46. > :13:50.There is much in the report that I would urge you to adopt and look at
:13:51. > :13:53.because really it is that ddlivery on the ground that matters to people
:13:54. > :14:04.who are paying it through their bills. It's a pleasure to follow the
:14:05. > :14:10.honourable member who I thotght made a thoughtful contribution, lost of
:14:11. > :14:15.which I agree with. I think that perhaps sets the tone for the rest
:14:16. > :14:22.of the evening's debate bec`use I think there is a wide consensus now
:14:23. > :14:27.that the changes that were lade the storm of changes in last sulmer
:14:28. > :14:35.particularly in a whole range of renewable incentives and issues have
:14:36. > :14:39.created enormous problems to investor confidence and havd created
:14:40. > :14:45.substantial uncertainty in terms of what the future direction of the
:14:46. > :14:49.Government is as far as energy policy is over all concerned. The
:14:50. > :14:53.three excellent reports that we are also discussing this evening from
:14:54. > :14:58.the energy and climate change select committee I think underlying just
:14:59. > :15:08.how those problems have arisen and what they consist of. At thd same
:15:09. > :15:14.time, however, we have just into juiced -- introduced the acceptance
:15:15. > :15:21.of the fifth carbon budget. I think it is great the Government has
:15:22. > :15:29.accepted that. It would be nice to have shipping in the fifth budget,
:15:30. > :15:33.but nevertheless, there we `re. They have accepted the fifth carbon
:15:34. > :15:39.budget and that budget talks about the onward march of renewables is
:15:40. > :15:43.absolutely essential as far as carbon budgets are concerned and
:15:44. > :15:50.reductions in emissions is concerned. It talks the essdntial
:15:51. > :15:58.nature of carbon caption storage, it talks about the essential n`ture of
:15:59. > :16:09.the forward march of energy efficiency in homes. The pohnt I
:16:10. > :16:16.made in intervention that the fourth carbon budget deals with solid wall
:16:17. > :16:27.insulation in homes and all of which point to the -- opposite. They will?
:16:28. > :16:34.Not just in terms of investors but in terms of future policy over how
:16:35. > :16:40.is it that at one and the s`me time we can be on target for those
:16:41. > :16:45.budgets and hope we will be on target and undertaking thesd changes
:16:46. > :16:50.in the way we have over the shorter period. The justification not so
:16:51. > :16:59.much for the cancellation of the CCS macro which I think was thoroughly
:17:00. > :17:07.deplorable, but for the changes as far as renewables was a verx
:17:08. > :17:14.controlled framework. It cale in in 2011, a framework which has been
:17:15. > :17:28.supposed to ensure their ard limits to what levies are arranged, partly
:17:29. > :17:32.indeed in terms of what customer bills will look like as a rdsult of
:17:33. > :17:39.those levies because they whll, forward on to customer bills in the
:17:40. > :17:48.end, but it really was almost an inevitable car crash. In terms of
:17:49. > :17:56.how the original framework was conceived and what it will look like
:17:57. > :18:04.by 2020. We had some claritx coming forward about future auctions on
:18:05. > :18:08.levy control, under the fralework of 22020, but it does not look like
:18:09. > :18:19.there will be much money in those auctions and it does not look like
:18:20. > :18:24.there will be very signific`nt. That partly it's because when thd levy
:18:25. > :18:30.control framework was first designed it was based on renewables
:18:31. > :18:36.obligation, and that had a fixed sum of payment of the Government to
:18:37. > :18:41.those receiving obligation certificates. But there is `
:18:42. > :18:46.variable some coming forward and as energy prices go down, so the cost
:18:47. > :18:50.of payments go up and so thd less and less money there is in the
:18:51. > :18:55.framework. A badly designed arrangements to deal with ftture
:18:56. > :18:58.renewables deployment if we are serious about getting that
:18:59. > :19:06.deployment in line with our carbon budgets. My view is that not only
:19:07. > :19:12.does the levy control framework need to be clarified from 2020 onwards,
:19:13. > :19:18.that there is one and by thd way I was interested to see this lorning
:19:19. > :19:29.that a very interesting consultation emerged about changes to thd 20 4
:19:30. > :19:33.contracts of different orders, which turns out to be a consultathon about
:19:34. > :19:39.whether there should be a ldvy control framework at all after 020
:19:40. > :19:45.but not what it should conshst of or how it should work, but just that
:19:46. > :19:52.actually the Secretary of State indicated that there would be some
:19:53. > :19:56.offshore wind auctioned aftdr 2 20, therefore there has to be a levy
:19:57. > :20:02.control framework that that is as far as we have got as far as any
:20:03. > :20:06.information is concerned. The consultation consisted of one
:20:07. > :20:12.Kristian and nine pages but does not tell us what the framework will be.
:20:13. > :20:18.-- one question. We need to look at the continuation of the fralework
:20:19. > :20:30.and clarity is what that will be. I was interested in his remarks a few
:20:31. > :20:35.moments ago. It seems to me that the levy control framework was
:20:36. > :20:39.conceptualised when prices were higher or more expensive. I wonder
:20:40. > :20:46.what use he might have on that and also with the live it control
:20:47. > :20:55.framework, no revision has been made. The chair of the commhttee is
:20:56. > :20:59.absolutely right to raise those particular questions becausd it is
:21:00. > :21:08.not only the case that with the change in prices coming forward and
:21:09. > :21:14.indeed interestingly the prhces of gas and electricity and oil are now
:21:15. > :21:18.below the lowest conceive of all concerned are you that the
:21:19. > :21:22.Department of Energy and Clhmate Change puts forward in its
:21:23. > :21:27.projections and way below its reference points, so it is something
:21:28. > :21:30.that has an effect on the framework that was not anticipated by the
:21:31. > :21:37.department when they first designed the framework. Also, the levy
:21:38. > :21:44.control framework only takes into account the expenses to consumers of
:21:45. > :21:46.how it works and as the chahr of the committee himself mentioned, it is
:21:47. > :21:52.fairly clearly the case that actually investment in renewable
:21:53. > :21:56.energy for every pound that goes in in terms of the change in the merit
:21:57. > :22:02.order that produces and therefore the downward pressure on prhces
:22:03. > :22:06.there is a real effect on wholesale prices as a result and something
:22:07. > :22:13.like 60p comes back for every pound going in, which is not calctlated in
:22:14. > :22:17.anyway as far as the costs of the framework are concerned and that
:22:18. > :22:22.wart to be another redesign of the framework when it comes out after
:22:23. > :22:30.2020. The chair of the select committee also mentioned, which I
:22:31. > :22:34.think is a serious issue to stand alongside the levy control framework
:22:35. > :22:39.itself, the signals that ard given out by the parallel arrangelents
:22:40. > :22:43.taking place as far as the capacity auctions are concerned. Cap`city
:22:44. > :22:48.auctions have the same form as the levy control framework in tdrms of
:22:49. > :22:54.their effect on customer bills. That is they are a levy, the customer
:22:55. > :22:59.will pay them, the energy companies have to pay into that levy `nd they
:23:00. > :23:07.land on the doormat in the form of bills and yet with capacity auctions
:23:08. > :23:12.with the continuation of supply for non-renewables, for mineral -based
:23:13. > :23:17.power stations the department while saying on the one hand that capacity
:23:18. > :23:20.auctions are going to be within the levy control framework, havd kept
:23:21. > :23:27.the sums involved in capacity auctions outside the headline total
:23:28. > :23:30.for the limit of the levy control framework, up to 2020 and that is
:23:31. > :23:34.not surprising because if wd look at how many billions of pounds have
:23:35. > :23:41.been thrown up against the war so far as far as capacity aucthons are
:23:42. > :23:50.concerned in terms of trying to get onstream some new gas-fired capacity
:23:51. > :23:53.power stations, or just to get gas capacity power stations and coal
:23:54. > :23:59.power stations and nuclear power stations just to continue to supply
:24:00. > :24:04.energy, then they bear no rdlation to the limits that are being set by
:24:05. > :24:12.the framework. Not only no relation but as the committee on clilate
:24:13. > :24:21.change suggests, by 2020 thd total amounts of bills as far as customer
:24:22. > :24:27.bills are concerned, the total amount of bills that will go on to
:24:28. > :24:29.founding renewables will be about ?70, that is the committee's
:24:30. > :24:40.estimation. Capacity options so far, and we had
:24:41. > :24:54.the announcement of the new capacity auction that will precede the new
:24:55. > :25:03.capacity auctions. It'll be something like ?50 on the bhll for
:25:04. > :25:09.the first option is, and if we add those three figures together, we
:25:10. > :25:14.will find that by 2020, the cost to the customer of overs will be about
:25:15. > :25:17.the same of all the costs rolled in for renewables and for the levy
:25:18. > :25:24.Control Framework, and yet one is capped on the other is not. That
:25:25. > :25:27.must send a message surely to renewable and low-carbon investors,
:25:28. > :25:36.if they think the Government is prepared to put out by .5 bhllion
:25:37. > :25:42.pounds on capacity auctions and yet not received from the Levy Control
:25:43. > :25:53.Framework, which is able to receive in the next four years. -- five 5p.
:25:54. > :25:57.I now bringing my remarks to a close, but I hope the response will
:25:58. > :26:02.indicate personally that thd Levy Control Framework will becole in any
:26:03. > :26:07.decent form in 2020, and will be reviewed to take into account the
:26:08. > :26:21.points I have mentioned. Madam Deputy Speaker,, I will spe`k in
:26:22. > :26:24.less detail and be a bit shorter. I enjoyed all three of the select
:26:25. > :26:31.committee reports and I congratulate the select committee for those. I
:26:32. > :26:33.have specific comments on them. I would say that the particul`r
:26:34. > :26:38.suggestion the chairman madd that we should evolve energy policy to
:26:39. > :26:43.Scotland has in part some mdrit because it is true that Scotland has
:26:44. > :26:48.got the lowest carbon per c`pita of any of the UK nations. I am aware
:26:49. > :26:53.that the way they have achidved that is that the highest proporthon of
:26:54. > :26:57.their energy comes from nuclear power. To that extent, we c`n all
:26:58. > :27:03.learn from what Holland has achieved. I wanted to talk hn terms
:27:04. > :27:12.of the trust of the three rdports, about investor confidence. There is
:27:13. > :27:15.a cost associated with that. I would say that if I am in business and my
:27:16. > :27:21.business model is all about subsidies from governments, it is
:27:22. > :27:24.reasonable that from time to time there is a discontinuity in some of
:27:25. > :27:33.that and I should expect sole of that. The point was made th`t we
:27:34. > :27:38.have slipped from eighth to 13th in the table for renewables and how can
:27:39. > :27:43.that be compatible with meeting what are the most challenging
:27:44. > :27:48.decarbonisation targets of `ny country in the world? The answer is
:27:49. > :27:51.that it isn't compatible and it is better if that was improved, but
:27:52. > :27:58.renewables is only one part of how we're going to decarbonise. In the
:27:59. > :28:02.UK, 9% of our comes from renewables. The chairman of the select committee
:28:03. > :28:08.read out some numbers in terms of energy production at the molent He
:28:09. > :28:12.was talking about electricity, and energy is including transport and
:28:13. > :28:19.all that goes with that, and a district that 30% of investlent in
:28:20. > :28:24.renewables in the EU last ydar was in the UK, it is also true that the
:28:25. > :28:27.Government is making a great deal of progress with nuclear power. It
:28:28. > :28:33.needs to do it even more with gas, in terms of the substitution of coal
:28:34. > :28:40.from gas, which will make the biggest single difference. But valid
:28:41. > :28:44.points were made. There will be other people tonight talking about
:28:45. > :28:49.CCS, and I regret that that did not go ahead. It is not clear to me
:28:50. > :28:53.That there is a clear pathw`y of how CCS is going to work. We talk about
:28:54. > :28:58.Canada, perhaps the array, neither of those are yet commercial and
:28:59. > :29:02.there is a lot more work to be done to make that happen. I would defend
:29:03. > :29:07.the Government somewhat in terms of its notice to the stock exchange
:29:08. > :29:18.before Parliament, just makd this point, in that companies like Shall
:29:19. > :29:24.invested huge amounts of money in this and I think stock exch`nge had
:29:25. > :29:27.to be told before Parliament. The honourable gentleman says that CCS
:29:28. > :29:36.is not commercial, whatever that means, but I think the point was for
:29:37. > :29:40.climate change targets, for the meeting of carbon dioxide. On the
:29:41. > :29:45.other hand, nuclear is not commercial either. Someone from his
:29:46. > :29:50.own party made that point a few weeks ago at a Brexit meeting.
:29:51. > :29:55.Hinkley C was not chosen for reasons of economic. You can't make a
:29:56. > :29:58.commercial argument on one side and then change it for the other. We
:29:59. > :30:02.could spend a long time talking about the word commercial in that
:30:03. > :30:06.context. The former energy linute that he has just referred to is the
:30:07. > :30:11.one I think we are about to talk about in the context of the third
:30:12. > :30:16.report, which was around thd green deal of the Echo and some of those
:30:17. > :30:20.things. I'm not going to trx to defend what has happened ovdr the
:30:21. > :30:25.last five or six years in that area, because it has not been good and the
:30:26. > :30:28.Government must do much better, because there is a very big prize to
:30:29. > :30:34.be gained in energy efficiency. The one thing we can all agree on,
:30:35. > :30:36.whether we agree on nuclear, CCS or anything else, we can all agree that
:30:37. > :30:41.energy efficiency is somethhng we have to do a lot better in. I think
:30:42. > :30:47.what happened around the grden deal was a little short of a dis`ster. I
:30:48. > :30:53.want to come on to market shgnals, because we have made the biggest
:30:54. > :30:58.market signal over the last week that could be imagined. We have
:30:59. > :31:07.accepted the committee on climate change figure 457% reduction in
:31:08. > :31:13.carbon by 2030, consistent with the climate change act, that is all it
:31:14. > :31:18.is. I am pleased that we have done that. But I want to make thd point I
:31:19. > :31:22.have made previously. What worries me is that others around thd world
:31:23. > :31:29.are not following us in the way that we might have expected or hoped
:31:30. > :31:32.This isn't China or India, or the economy is that must catch tp, this
:31:33. > :31:41.is other countries within the Europe. We gloss over somethmes in
:31:42. > :31:45.these debates the impact on allergen city prices, which means
:31:46. > :31:51.uncompetitive manufacturing. I would just say that the website this
:31:52. > :31:58.morning showed that we have 60% higher electricity prices than the
:31:59. > :32:02.mean in the EU. The industrx has 90% higher electricity prices than the
:32:03. > :32:05.mean of the EU. So when the Government talks of rebalancing the
:32:06. > :32:11.economy, when the Government talks about the noise and powerhotse, I
:32:12. > :32:17.say that if we are serious `bout manufacturing, it is very h`rd to do
:32:18. > :32:22.that with differentially higher prices and some of the debates we
:32:23. > :32:29.have about the need to re-c`rbonised must be seen in that context --
:32:30. > :32:39.Northern Powerhouse. In terls of the 57% target that we have, it saddens
:32:40. > :32:51.me that it is approximately doubled the European target, put into the
:32:52. > :32:56.Paris commitment in the INDC. That was a 40% reduction. That's 40%
:32:57. > :33:00.includes the UK, so if you take that out it is roughly speaking doubled
:33:01. > :33:08.the rate. They are not even achieving that. This year, 08 out of
:33:09. > :33:15.the 28 countries in the EU hncreased their carbon emissions. The UK
:33:16. > :33:20.managed a 3% reduction. Why is that happening? Because they continued to
:33:21. > :33:25.burn coal at a rate that is in some cases coming down, but in gdneral
:33:26. > :33:28.very high indeed. The Secretary of State made an announcement last
:33:29. > :33:36.November that we would phasd out coal by 2025 dustup a week later,
:33:37. > :33:42.the Germans commissioned thdir brand-new midnight burning tnabated
:33:43. > :33:47.coal power stations, and Germany burn four times as much coal as the
:33:48. > :33:51.UK. But it is not just Germ`ny, Holland, Ireland, all of thdse
:33:52. > :33:55.countries burn significant `mounts of coal. There is an issue that has
:33:56. > :34:02.to be resolved, as we make our progress. I am about to sit down. In
:34:03. > :34:05.terms of this 57% reduction. We can't do it on our own and part of
:34:06. > :34:09.being the UK and showing le`dership in this means making sure that these
:34:10. > :34:17.other countries come with us. China is doing it a lot more than many
:34:18. > :34:20.others. In these days of uncertainty, one thing is cdrtain.
:34:21. > :34:26.If we are going to go it alone in the big, bad world, we need to have
:34:27. > :34:29.energy policies that are fit for our future requirements. We need to make
:34:30. > :34:34.sure that our spending priorities are targeted properly. Yet ready
:34:35. > :34:39.reports suggest that the UK is lagging behind an existing legally
:34:40. > :34:45.binding EU target of 50% of energy coming from renewables by 2020, with
:34:46. > :34:49.the Government bringing an dnd to subsidies from wind farms, cutting
:34:50. > :34:54.support to solar power. Mordover, the Government is failing to provide
:34:55. > :34:58.the investment we need in energy efficiency to support a low carbon
:34:59. > :35:06.economy in the UK and has dhtched support for low carbon technologies,
:35:07. > :35:19.like CCS. I know from my chairmanship of the AAPG on CCS that
:35:20. > :35:24.there was a withdrawal of ftnding. Industry want answers from the
:35:25. > :35:30.Government. On the EE referdndum result, it and utterly left the UK
:35:31. > :35:38.politics in a state of turmoil, but these CCS agenda must remain a
:35:39. > :35:56.strong priority. The UK agrded the fifth climate change budget,
:35:57. > :35:59.committing to help in the UK's lowering of carbon emissions. This
:36:00. > :36:05.should be welcomed, but there can be no doubt that industrials CCS must
:36:06. > :36:12.have a significant role to play if we are to meet this goal. The carbon
:36:13. > :36:15.budget has determined the UK's low-carbon transmission. Anx
:36:16. > :36:18.uncertainty of the target is disruptive at best and catastrophic
:36:19. > :36:25.at worst. The Government has already slashed funding for green energy
:36:26. > :36:27.options. Further ambiguity will not help the investment needed, but will
:36:28. > :36:35.increase the cost. We need the Government to clarify the climate
:36:36. > :36:38.change targets and clearly prioritise energy spending
:36:39. > :36:42.intentions to ensure realistic and responsible goals are both retained
:36:43. > :36:45.and achieved. I would argue that following the referendum, it is more
:36:46. > :36:49.important than ever that thd Government commits to be in a world
:36:50. > :36:52.leader in important areas stch as climate change and energy policy,
:36:53. > :36:56.driving innovation and investment, rather than sitting in a passenger
:36:57. > :37:02.seat attending to given dirdctions. The importance of CCS to medting the
:37:03. > :37:07.climate change targets were confirmed on the same day that the
:37:08. > :37:11.climate change budget was agreed in the progress report, which
:37:12. > :37:16.specifically recommended th`t the Government should urgently come
:37:17. > :37:21.forward with a new approach to CCS technology. I know the Government
:37:22. > :37:29.member from south to have J`nsher has been preoccupied with Brexit,
:37:30. > :37:34.and he has promised a new plan for CCS for months now and it is about
:37:35. > :37:37.time we saw it. News of the Government's new approach now
:37:38. > :37:42.promise towards the end of the year is far too late and ministers need
:37:43. > :37:44.to come today has much soondr. I would welcome hearing from the
:37:45. > :37:48.Secretary of State that the events of June the 23rd will not bd allowed
:37:49. > :37:55.to cloud our collective judgment and create a to progress. The absence of
:37:56. > :38:02.the CCS demonstration projects, which were expected to contribute
:38:03. > :38:09.towards decarbonisation by 2020 is extremely worrying. I share the view
:38:10. > :38:14.of the group that it is difficult to see how the Government's absence of
:38:15. > :38:19.policy ambition for CCS can be reconciled with the recommendations
:38:20. > :38:27.of the committee for Paris `ctor decarbonisation, of the deshred to
:38:28. > :38:33.enable energy committee is to become part of the UK in general. Ht
:38:34. > :38:36.represents one of the largest clusters of manufacturing industries
:38:37. > :38:44.in the UK. The industry contributes to over ?10,000 annually and
:38:45. > :38:53.provides manufacturing jobs in the local area, produces a signhficant
:38:54. > :38:57.amount of the UK's annual ottput. Industrial CCS has the potential to
:38:58. > :39:01.protect these energy intenshve industries from future high carbon
:39:02. > :39:07.prices, well curtailing CO2 emissions. We know that CCS is a
:39:08. > :39:15.core component in the energx intensive sector road maps. Despite
:39:16. > :39:22.that, at the expectation th`t the CO2 abatement cost might be lower
:39:23. > :39:27.from some industrial things than other, there is no support policy
:39:28. > :39:30.for industrial CCS deployment. I would be grateful if the Secretary
:39:31. > :39:34.of State could outline meastres that have been taken to this disparity.
:39:35. > :39:40.Some industries have started to benefit from the Government's
:39:41. > :39:50.existing CCS policy. I welcome that. But I would ask the minister, what
:39:51. > :39:52.is the target for post EU energy? Will it still exist and to what
:39:53. > :40:11.extent? Importantly the committee also
:40:12. > :40:13.pointed out recommended sep`rate recommendations to enable the
:40:14. > :40:18.development of this infrastructure. Only by doing so in places like
:40:19. > :40:22.Teesside with the capacity `nd expertise to make such projdcts work
:40:23. > :40:35.in the UK hoped to secure a stable future post EU. IM cleared that
:40:36. > :40:42.investment poses the potenthal to secure thousands of jobs whhch is
:40:43. > :40:48.important now more than ever before. But with the UK having statdd the
:40:49. > :40:53.intention to vacate its seat at the top table as far as policy-laking at
:40:54. > :40:59.the EU level is concerned, can the Minister reassured the Housd that
:41:00. > :41:01.plans are in place to guarantee officials can collaborate whth
:41:02. > :41:06.counterparts as policies ard developed. I would welcome the
:41:07. > :41:09.minister confirming the indtstry would not lose out on current or
:41:10. > :41:13.future support as a result of leaving the EU and that backing for
:41:14. > :41:19.these technologies will be ` priority. EU funds have supported
:41:20. > :41:28.and continue to support CCS projects such as the Dunn Valley Project I
:41:29. > :41:35.would be grateful if the Minister could outline how the Government
:41:36. > :41:46.intends to replace these monies for existing policies. I will try and
:41:47. > :41:50.make my report, remarks verx brief. We have approved the fifth carbon
:41:51. > :41:55.budget comedy framework of `ll frameworks. That is the message that
:41:56. > :42:02.needs to go out from this place to investors, that is where we are
:42:03. > :42:06.headed. We are headed to 2040 with the climate change act intact,
:42:07. > :42:10.supported by this Government, the party opposite and it's important
:42:11. > :42:16.talking about investors being put off, it is important we do not set
:42:17. > :42:21.out messages which suggests they should not be confident. Thdre are a
:42:22. > :42:28.number of ways in which we can all boost that. We are in a typd of
:42:29. > :42:32.change, I hope we never havd a Chancellor of Exchequer who says we
:42:33. > :42:44.should not lead in this are` again. Reassured. If there is a Chhnese
:42:45. > :42:49.electric bus company come to Britain because we are leading the world, we
:42:50. > :42:53.have a law in place and we `re committed to doing it. We h`ve
:42:54. > :42:59.energy research happening this year, the Government is looking at it
:43:00. > :43:05.again and Brexit provides other opportunities. What are thex going
:43:06. > :43:09.to do as we leave the EU, wd need to make low carbon our own. As we are
:43:10. > :43:15.doing it, we need the investment here, the jobs here and we leet the
:43:16. > :43:19.central task which goes to the point my honourable friend raised about
:43:20. > :43:23.cost. We have to drive that downwards as quickly as possible.
:43:24. > :43:27.That requires coherent policy-making, sound messagds,
:43:28. > :43:32.constant positive tone across this House if we are going to make the UK
:43:33. > :43:37.low carbon centre of the world and if we can do that, we will lower our
:43:38. > :43:48.costs of energy and bring the benefit. With that, I will sit down.
:43:49. > :43:59.I would like to begin by congratulating the honourable
:44:00. > :44:04.gentleman for securing the debate and for the work of his comlittee
:44:05. > :44:11.improving the Government. Wd seem to have come a long way since the heady
:44:12. > :44:15.days of promising to leave the Green is government ever. In realhty we
:44:16. > :44:21.have had years of policy chopping and changing and now an energy
:44:22. > :44:28.colleague says that seems to be going in reverse. First the Green
:44:29. > :44:31.deal effectively ended last July after local authorities had wasted a
:44:32. > :44:39.fortune in time and money trying to make it work. In my own are`,
:44:40. > :44:47.Birmingham energy Savers is one such venture. Forced to wind up `s the
:44:48. > :44:53.latest shift in government policy brought its ambitions for energy
:44:54. > :44:58.efficiency to a halt. No ond on the benches opposite wanted to listen to
:44:59. > :45:03.concerns about Green deal in the early days. They ignored warnings
:45:04. > :45:07.about the complicated structure the expensive yorker sea and thd cost to
:45:08. > :45:15.homeowners. They insisted they knew best but they were wrong and with
:45:16. > :45:17.that, it has become the hallmark of the Conservative government and
:45:18. > :45:24.decided to end the scheme after years of denial. It was not just the
:45:25. > :45:31.Green deal. The last Labour government had a fair degred of
:45:32. > :45:33.success with warm front which was a progressive tax payer supported
:45:34. > :45:39.initiative designed to reduce energy bills and improve installathon, so
:45:40. > :45:43.the Government scrapped it `nd replaced it with the energy company
:45:44. > :45:52.obligation. Little more than a hidden Tory tax on all constmers
:45:53. > :45:58.irrespective of their incomds. In Northern Ireland we have a fuel
:45:59. > :46:05.poverty at levels of 35% plts, the highest in Britain and Northern
:46:06. > :46:10.Ireland. Does he agree that what we need is a policy and a strategy in
:46:11. > :46:16.place for all new bills to lake sure they are efficient. That thdre is a
:46:17. > :46:24.coordinated plan that every council will try to make those constmers
:46:25. > :46:30.more efficient as well. I agree We need a plan that is much wider and
:46:31. > :46:35.reaches a lot more homes and that certainly focuses on new buhlds I
:46:36. > :46:40.agree with the honourable gdntleman on that, but I guess I would say the
:46:41. > :46:46.problem is so successful is the direction of current governlent
:46:47. > :46:51.policy that by 2017, about 200, 00 homes as opposed to 1.3 million will
:46:52. > :46:58.be eligible for some assist`nce with energy efficiency measures `nd the
:46:59. > :47:02.total level of investment in energy efficiency will have halved.
:47:03. > :47:07.Essentially we have ended up with a policy where only those who qualify
:47:08. > :47:12.as fuel poor can get any help to invest in energy efficiency
:47:13. > :47:15.measures, that is no doubt part of the explanation for why the
:47:16. > :47:19.committee on climate change recently claimed that cutting carbon
:47:20. > :47:26.emissions from the home was now a policy in reverse. Matthew Bell the
:47:27. > :47:31.Chief Executive, has made clear the best way to reduce consumer bills
:47:32. > :47:34.and tackle climate change is to make sure more homes are properlx
:47:35. > :47:39.insulated but this Government has managed to ensure that the rate of
:47:40. > :47:44.home insulation has fallen by 9 % and a recent estimate shows that
:47:45. > :47:48.over the course of the last Parliament and the present one, the
:47:49. > :47:54.number of households receivhng help will decline by a staggering 76 and
:47:55. > :48:00.the Government has scrapped ideas for new homes to be zero carbon
:48:01. > :48:05.thus as the chair of the colmittee pointed out, insuring we store up
:48:06. > :48:12.additional retrofit costs for the future. In terms of energy savings,
:48:13. > :48:16.new technology and our growth in Green energy jobs, this Govdrnment's
:48:17. > :48:22.achievement has been not to be the greenest ever but the biggest
:48:23. > :48:25.failure ever. We need a set of government policy, an environment
:48:26. > :48:30.where businesses and consumdrs can plan ahead. We need a fair `nd
:48:31. > :48:38.simple plan that incentivisds households and the rented sdnt to --
:48:39. > :48:44.sector to invest. We would be helped by a signal in government that they
:48:45. > :48:49.intend to support the leasehold reform energy efficiency bill. Alas
:48:50. > :48:53.we have a government bereft of practical policies to meet lore than
:48:54. > :48:58.half of the emission reducthons required by 2030 and many of the
:48:59. > :49:03.existing EU linked initiatives are now in doubt because of the botched
:49:04. > :49:07.referendum. The abandonment of carbon capture and storage
:49:08. > :49:11.initiative is the latest in a series of U-turns by a government that is
:49:12. > :49:21.without direction and any coherent energy policy. Here we are, yet
:49:22. > :49:26.another estimate stay debatd where the one thing that does not get
:49:27. > :49:30.discussed are the estimates but the motion in front of us today does
:49:31. > :49:37.authorise a reduction in thd expenditure for the Departmdnt of
:49:38. > :49:53.energy to the chewing of 2 billion as outlined in all pages of the
:49:54. > :49:57.report. The context of this on investors and consumers as
:49:58. > :50:06.investigated by the select committee, effectively chaired by my
:50:07. > :50:16.honourable friend and he is only one of two F M E who have things to say
:50:17. > :50:21.about the estimates process. There are very interesting things included
:50:22. > :50:28.in this booklet. One suggests a cart to the department's budget for
:50:29. > :50:32.managing the UK's energy safely One page lists the EU government grants
:50:33. > :50:36.received which is not a lind that will it be appearing much more
:50:37. > :50:46.often, something the energy minister will be happy about. Interestingly
:50:47. > :50:52.absent this evening. But 78$ of my constituents who voted to rdmain
:50:53. > :50:55.will beg to differ. Nowhere in this booklet are the implications of the
:50:56. > :51:02.Barnett consequential is and we were repeatedly told that estimates days
:51:03. > :51:13.were our opportunities to h`ve our say on the consequential spdnding.
:51:14. > :51:18.The estimates process is colpletely irrelevant to Barnett alloc`tions
:51:19. > :51:24.and that has been proven ovdr the two debates taking place. It is
:51:25. > :51:27.cleared they are not very useful in scrutinising the detail of
:51:28. > :51:33.government policy either, bdcause despite the fact we have three
:51:34. > :51:36.reports, my honourable friend has outlined how inadequate the
:51:37. > :51:41.Government's response to those papers has been so even thotgh this
:51:42. > :51:45.is a chance for committees to have the reports discussed, the reality
:51:46. > :51:50.is time is compressed and at best there are 30 plus select colmittees,
:51:51. > :52:04.three estimates days, so thdre is a one ten chance of getting a report
:52:05. > :52:08.to the House. I think many of the policy points have already been
:52:09. > :52:14.talked about, the importancd of energy efficiency both for cutting
:52:15. > :52:18.climate change emissions and for improving well-being and reducing
:52:19. > :52:25.fuel poverty and I did decl`re an interest because on Friday H had a
:52:26. > :52:31.smart meters installed in mx home. I look forward to seeing how that
:52:32. > :52:34.affects my energy efficiencx. Investor confidence is also hugely
:52:35. > :52:41.important and the greatest threat to that has been the Brexit vote so it
:52:42. > :52:49.is disappointing the energy minister is not here given that she was in
:52:50. > :52:53.favour of a lever vote. As hs often the case, the Scottish Government is
:52:54. > :53:05.who we should look to for the best lessons. Renewable energy, over 40%
:53:06. > :53:08.in Scotland. It has helped ts reach our world leading climate change
:53:09. > :53:15.targets and the Scottish Government has committed to 103 million to
:53:16. > :53:19.improve warm homes and reduce fuel poverty. Three inadequacy is in the
:53:20. > :53:25.very short time I have had to hide it. An inadequate procedure for
:53:26. > :53:29.examining government supply and expenditure. When we do abld to
:53:30. > :53:34.scrutinise government policx we find it is also inadequate and then the
:53:35. > :53:38.powers that the Scottish Government has also inadequate to the task at
:53:39. > :53:42.its hand. There is a need to devolve energy policy and so many areas to
:53:43. > :53:47.the Scottish goblet. The second order of business today takds place
:53:48. > :54:00.with no debate at 10pm this House will be asked to authorise
:54:01. > :54:05.government expenditure... It is a system in need of reform and perhaps
:54:06. > :54:06.that will come of this Housd controls the purse strings of
:54:07. > :54:19.Scotland. I welcome the fact that we `re
:54:20. > :54:23.debating these important colmittee reports, but as my honourable friend
:54:24. > :54:29.from Glasgow North has ably demonstrated, it is just a pity we
:54:30. > :54:34.are debating it tonight, whdn what we should be discussing is how we
:54:35. > :54:39.spend all the money the Govdrnment spends. It is a whopping figure
:54:40. > :54:44.There is a danger of irony hn the fact that less than three wdeks ago,
:54:45. > :54:49.this country apparently votdd to take back control team make this
:54:50. > :54:53.Parliament sovereign once again but we can't even properly debate how we
:54:54. > :54:58.spend the money. The investor confidence report of the trde is the
:54:59. > :55:05.absolutely critical one. For me it explodes the myth of the so,called
:55:06. > :55:10.long-term economic plan. Thd rhetoric versus reality is borne
:55:11. > :55:14.out, very much so. One of the quotes from the investor confidencd report
:55:15. > :55:18.is merely stating that therd may be three options this Parliament does
:55:19. > :55:22.not constitute a plan, referring to contracts for difference. In
:55:23. > :55:27.fairness to the absence of ` plan around about Brexit, this looks like
:55:28. > :55:31.a detailed masterplan, but hn reality it is not. All joking aside,
:55:32. > :55:36.the report goes on to say that we heard the policy was weakenhng the
:55:37. > :55:43.case for investment in energy in the UK. That could mean the projects
:55:44. > :55:46.could be come more expensivd to deliver and bully to compensate for
:55:47. > :55:54.increased risk, or the projdcts will not go ahead. Hiatus in invdstment
:55:55. > :56:04.could undermine the UK's abhlity to deliver. In essence, that is all
:56:05. > :56:08.three sides of the energy trilemma are underlined by the decishons the
:56:09. > :56:12.Government has made. Throw hn a dose of Brexit uncertainty and there is a
:56:13. > :56:17.real requirement for the Government to provide some certainty about
:56:18. > :56:21.this, if we are going to medt the challenges, not just in terls of
:56:22. > :56:27.affordability of electricitx, reducing carbon, but also in terms
:56:28. > :56:32.of the security of supply. @ll three of these are questionable. They were
:56:33. > :56:34.questionable before the Brexit vote and the increased uncertainty of
:56:35. > :56:42.that has been magnified substantially. The discussions
:56:43. > :56:47.around about this, it is cldar from the reports that this is
:56:48. > :56:50.significantly undermined investor confidence, particularly in
:56:51. > :56:59.Scotland. The undermining of our renewables industry is damaging The
:57:00. > :57:03.discussions roundabout CCS `re hugely undermining Scottish
:57:04. > :57:10.industry. We had the potenthal in Peterhead to have both the worlds's
:57:11. > :57:13.first floating wind farm, commercially deployed, and CCS in
:57:14. > :57:19.Peterhead power station. Th`t was the chance for a relatively small
:57:20. > :57:25.part of Scotland to be right at the global cutting-edge of the carbon
:57:26. > :57:27.reduction and climate changd technological advances.
:57:28. > :57:31.Unfortunately, one part of that is not going ahead, and that is
:57:32. > :57:37.substantially regrettable. H think we have also heard the disctssions
:57:38. > :57:43.around the fixation on one side of the Levy Control Framework hn a
:57:44. > :57:47.regrettable way. The fact that there is an opaqueness roundabout the Levy
:57:48. > :57:51.Control Framework, I would `dd the call to that of the committde that
:57:52. > :57:55.we need to see the details working behind this. We also need an
:57:56. > :58:01.understanding from Government that if the investments in low c`rbon
:58:02. > :58:05.technology drive down the price therefore increasing the notional
:58:06. > :58:09.overspent on the Levy Control Framework, that doesn't acttally
:58:10. > :58:15.lead to greater costs necessarily for the consumer. If you ard
:58:16. > :58:17.undermining the investment of the low-carbon industries based on a
:58:18. > :58:23.desire to protect the consuler, which would be a reasonable position
:58:24. > :58:29.to start from, not necessarhly what I would agree with wholeheartedly,
:58:30. > :58:39.but you would need to look `t what we are doing in the round. @nd if
:58:40. > :58:43.the reports say that half ?0 billion is to be increased in the Ldvy
:58:44. > :58:47.Control Framework from the fall in the wholesale price of convdntional
:58:48. > :58:52.electricity, that is not an additional cost to the constmer and
:58:53. > :58:56.it is certainly not a reason to cut the support, cut the investlent the
:58:57. > :59:01.long-term investment, the investment in the future and renewable energy
:59:02. > :59:10.will bring. I also note that there is huge uncertainty around `bout how
:59:11. > :59:15.we deal with our European ndighbours following the vote two weeks ago.
:59:16. > :59:20.The Secretary of State in hdr reset speech discussed at length the
:59:21. > :59:24.benefits of energy union and how that needs to be worked upon. We
:59:25. > :59:31.have no idea if that will c`rry on, no idea if we will be part of the
:59:32. > :59:36.emissions trading scheme. The honourable gentleman raises a good
:59:37. > :59:45.point. I think it would be tseful if we could outline the three `reas
:59:46. > :59:50.that will be most useful. If the UK goes for the third country option,
:59:51. > :00:01.we would have to leave the `nd then how however many years before we had
:00:02. > :00:07.a deal -- EU. I think I would go further than the say it would be
:00:08. > :00:10.useful. I think it is absolttely essential and irresponsible
:00:11. > :00:15.Government must deal with it. These are contingency plans any more, they
:00:16. > :00:21.are the plans. We need some sense of certainty around what is gohng on.
:00:22. > :00:27.The reports from the committee ably demonstrated the uncertaintx of
:00:28. > :00:29.building additional cost. When we have two replace a signific`nt
:00:30. > :00:36.proportion of Arabella show city capacity in the next decade so, if
:00:37. > :00:44.that cost will be greater, these are things that need to be addrdssed --
:00:45. > :00:47.electricity. It would be unfair to expect the Secretary of State to
:00:48. > :00:52.come out with a detailed pl`n now, but we need to know that her
:00:53. > :00:55.department will undertake the necessary work to deliver some form
:00:56. > :01:03.of uncertainty, otherwise wd will be in a real pickle very soon. The
:01:04. > :01:09.honourable member talked about how he was delighted, and the only
:01:10. > :01:12.signal we needed to give to the markets was the welcome announcement
:01:13. > :01:16.that the Government was going to accept the targets of the fhfth
:01:17. > :01:21.carbon budget. I do share hhs enthusiasm that the Governmdnt has
:01:22. > :01:27.done that, albeit somewhat later than was expected, but I thhnk, and
:01:28. > :01:30.as the climate change committee itself has suggested, you nded a
:01:31. > :01:33.little bit more in terms of the Halle well as well as the what.
:01:34. > :01:41.Again, I would hope that thd Government will deliver a lhttle bit
:01:42. > :01:44.and soon on the how we are going to do this. These are fundamental
:01:45. > :01:54.questions that cannot go un`nswered. To conclude, this is a Government
:01:55. > :02:02.that has created uncertaintx in this particular field. That uncertainty
:02:03. > :02:05.has been magnified and it rdally stresses the fundamentally hmportant
:02:06. > :02:14.case for a long-term plan that has cross-party by an, and that will not
:02:15. > :02:18.be subject to the whims and changes of Government. I think the lodel we
:02:19. > :02:22.have in terms of the climatd change legislation and how we work
:02:23. > :02:26.elaborate of the across parties and parliaments and assemblies hs
:02:27. > :02:32.something that needs to be done There is an opportunity through the
:02:33. > :02:37.National infrastructure comlittee to provide a model for that. Btt it is
:02:38. > :02:40.absolutely fundamental, not just in terms of the uncertainty thd
:02:41. > :02:48.Government has created, but the uncertainty of the Brexit vote. We
:02:49. > :02:54.need a plan, stick to it and deliver it. I thank the honourable lembers
:02:55. > :02:59.and his committee for initi`ting the debate, for giving B has thd
:03:00. > :03:03.opportunity to consider the direction of Government energy and
:03:04. > :03:07.climate policy and for their excellent reports. Like him, but I
:03:08. > :03:12.suspect Ama Agbeze Secretarx of State, I look forward to thd
:03:13. > :03:18.publication of the National audit inquiry, on whether the Govdrnment
:03:19. > :03:22.will have to pay compensation to developers -- unlike the Secretary
:03:23. > :03:26.of State. This could result in a multi-million pound bill and I hope
:03:27. > :03:31.we will acknowledge that thhs could be an extremely expensive ddcision
:03:32. > :03:42.indeed. One might be forgivdn for imagining that Dec were recdiving
:03:43. > :03:49.instruction from the very l`st minute before finally applyhng the
:03:50. > :03:53.night to CCS. It is no wonddr that the honourable member from
:03:54. > :03:57.Warrington South regretted the decline of the CCS projects, I think
:03:58. > :04:01.was quite right, and he also spoke powerfully about the green deal
:04:02. > :04:08.saying that its demise was nothing short disaster. The honourable
:04:09. > :04:12.member from Beverley quite rightly praised the Government for `greeing
:04:13. > :04:18.with the committee on climate change for the fifth climate budget. I
:04:19. > :04:24.agree, I just wish they had actually said it by the statutory lilit in
:04:25. > :04:29.accordance with the 2008 act, because of course it had to be set
:04:30. > :04:34.and voted on by affirmative resolution in this House by the 30th
:04:35. > :04:37.of June. That did not take place and I hope that the Secretary of State
:04:38. > :04:41.may in fact clarify to the house this evening at what the legal
:04:42. > :04:47.status now is. It is one thhng to say that you accept the comlittee on
:04:48. > :04:50.climate change's recommendation but it is not good enough. The climate
:04:51. > :04:59.change act is very clear on that point. It has to be set, and so far
:05:00. > :05:09.it has not been. The judgment of the right honourable lady for edits was
:05:10. > :05:13.impeccable. She spoke at length but it was a great speech. She told
:05:14. > :05:19.about the investor communitx being startled, but she did it in a way
:05:20. > :05:23.that didn't scare the horses, that didn't allow her to be open to that
:05:24. > :05:31.accusation of talking Britahn down, but it was a very fine speech
:05:32. > :05:34.indeed. Despite his sore throat my honourable friend spoke verx
:05:35. > :05:39.powerfully about the need to bring forward the UK carbon plan. He is
:05:40. > :05:45.absolutely right. It goes to the point that the other honour`ble
:05:46. > :05:48.member was making. And indedd the honourable member speaking for the
:05:49. > :05:53.SNP. It is great to have thd ambition of the fifth carbon budget,
:05:54. > :05:57.but yet again we look back to 2 11, when the fourth carbon budgdt was
:05:58. > :06:05.set, and we know that this statutory obligation is to bring forw`rd as
:06:06. > :06:08.soon as reasonably practical, a plan to show how it will be achidved We
:06:09. > :06:16.are still waiting for that five years later, so I think it was a
:06:17. > :06:21.very fair point to say that this should be brought forward from the
:06:22. > :06:30.end of the year and ruled ott immediately, to give investors
:06:31. > :06:33.confidence. My honourable friend for Southampton speaks with such
:06:34. > :06:44.knowledge and authority on these matters. He made a very powdrful
:06:45. > :06:48.point about the LCF after 2020, and I hope the Secretary of State will
:06:49. > :06:54.make some remarks on that. Hn their latest report by the committee on
:06:55. > :06:57.climate change meeting carbon budgets published last Thursday
:06:58. > :07:01.they showed that there is a need for urgent action to strengthen
:07:02. > :07:10.policies, without which progress on emissions will not continue. We are
:07:11. > :07:16.in a post-Brexit situation, where investor confidence has been lost
:07:17. > :07:19.through the heightened uncertainty, creating a crisis in investlent and
:07:20. > :07:27.in turn that this creates the crisis in costs, as greater uncert`inty
:07:28. > :07:31.result in higher costs of c`pital. The national grid have issudd a
:07:32. > :07:36.warning that energy bills whll rise and energy security would bd put at
:07:37. > :07:43.risk, if the UK is excluded from Europe's internal energy market
:07:44. > :07:49.There was warning of the potential impacts resulting from excltsion
:07:50. > :07:55.from this could be up to ?500 million per year by the early 2
:07:56. > :07:59.20s. Given her a clear view on this and bearing in mind that thd
:08:00. > :08:03.Chancellor has been forced to announce that his surplus t`rget has
:08:04. > :08:08.been dispensed with and we will no longer be able to balance the books
:08:09. > :08:13.by 2020, and that growth has been downgraded, we must ask the
:08:14. > :08:18.Secretary of State, with wh`t certainty she is asking us to
:08:19. > :08:22.consider the estimates for her department this evening. Her Cabinet
:08:23. > :08:27.colleagues have been very clear To meet the deficit, you can ehther
:08:28. > :08:33.raise taxes or you can cut departmental spending, or you can
:08:34. > :08:37.borrow. Which is it going to be For goodness sake, the Government is in
:08:38. > :08:40.the midst of a financial crhsis The Chancellor refuses to tell ts how he
:08:41. > :08:45.will get out of it. He says it will be up to a future Chancellor to
:08:46. > :08:50.decide, because he knows th`t in a few short weeks he will not be the
:08:51. > :08:54.occupant of number 11. It is a decision he will not have to make.
:08:55. > :08:57.Here we have the Secretary of State asking us to approve estimates which
:08:58. > :09:04.have about as much chance of remaining solid as an ice ctbe in a
:09:05. > :09:07.Jamie Oliver stir-fry. This estimates motion today is not
:09:08. > :09:11.responsible financial managdment, it is Government by magic wand. Think
:09:12. > :09:17.of a number, close your eyes and make a wish. I ask the Secrdtary of
:09:18. > :09:21.State to give a clear answer to the level of confidence that shd has
:09:22. > :09:26.that these estimates will rdflect and be reflected in the outcomes at
:09:27. > :09:29.year end. When ministers ard insisting that Britain is open for
:09:30. > :09:35.business, energy companies have halted major investments in the UK.
:09:36. > :09:37.The Secretary of State for Business, Innovation and Skills that she is
:09:38. > :09:45.certain that business will continue to blow, yet there has been puzzling
:09:46. > :09:50.in business in Hull, and a future British Hinckley point C nuclear
:09:51. > :10:09.project is extremely unlikely. This is the Government's own advisor
:10:10. > :10:13.telling it as it is. Bloombdrg new energy Finance have warned since the
:10:14. > :10:19.referendum that the uncertahnty caused by the result and ovdr the
:10:20. > :10:23.upcoming negotiations are lhkely to cause investors to hesitate about
:10:24. > :10:32.committing new capital and could cause a drop in renewable energy
:10:33. > :10:40.asset values. A group representing over 30 trillion of assets says the
:10:41. > :10:44.aftermath of the vote brings considerable uncertainty and market
:10:45. > :10:49.turmoil. These are deeply worrying times but the Government do not seem
:10:50. > :10:53.to recognise the urgency of quashing this uncertainty and instabhlity, so
:10:54. > :10:58.I would ask the Secretary of State to clarify - will how Department
:10:59. > :11:03.push for access to the internal energy market as a priority and how
:11:04. > :11:14.the Government will gain support from EU states to support this? What
:11:15. > :11:20.calculations are estimates have been made that will be demanded by
:11:21. > :11:25.investors to cover the costs of political uncertainty? How luch will
:11:26. > :11:29.this add to the costs of buhlding new electricity generating capacity?
:11:30. > :11:35.It is imperative the UK provides a clear direction of travel on
:11:36. > :11:40.domestic policy. Why did thd honourable lady failed to uphold her
:11:41. > :11:45.obligation under the climatd change act and not take steps to ensure the
:11:46. > :11:51.order was set by the 30th of June? I would point out that the European
:11:52. > :11:56.investment bank is the biggdst clean energy lender having investdd 3 .3
:11:57. > :11:59.billion euros over the past five years. Will this funding sthll be
:12:00. > :12:08.available for projects in progress or agreed? What funding sources have
:12:09. > :12:14.been identified to replace the opportunities we will lose to power
:12:15. > :12:18.the future? Have the Governlent discuss the future of Hinckley with
:12:19. > :12:25.EDF and board the French government as a result of the vote? Thd
:12:26. > :12:31.Government estimated in 2014 that by 2020 the annual net savings for the
:12:32. > :12:37.European energy standards eco-design would be in excess of 850 mhllion.
:12:38. > :12:42.Will those savings be compared, compromised by the process of
:12:43. > :12:46.leaving the EU? These are the questions the honourable lady must
:12:47. > :12:51.begin to answer. As the restlt was causing political and econolic
:12:52. > :12:56.chaos, the final results of the enquiry into why customers `re being
:12:57. > :13:01.overcharged by nearly 2 million ?2 billion a year for their endrgy were
:13:02. > :13:04.quietly released. The recommendations are nothing to shout
:13:05. > :13:09.about as they will not deliver the promise from four years ago to put
:13:10. > :13:13.all households on the cheapdr tariff, but how will be Dep`rtment
:13:14. > :13:17.introduce more transparency and provide support to make it dasier
:13:18. > :13:23.for customers to switch putting an end to the big six milking royal
:13:24. > :13:31.constables to maintain profhts? Hundreds of thousands of falilies
:13:32. > :13:39.cannot afford their energy bills. This contributed last winter to
:13:40. > :13:47.43,000 excess winter deaths in 0 14 - 2015 yet ministers are letting
:13:48. > :13:51.companies of the hook. Finally, will be Secretary of State ensurdd that
:13:52. > :14:01.the UK ratifies the Paris agreement before this Prime Minister leaves
:14:02. > :14:06.office? Can I start by welcome the member to his seat. I am gr`teful to
:14:07. > :14:11.date to all members for thehr contributions and to the ch`irman of
:14:12. > :14:16.the energy and climate change select committee and for his leadership in
:14:17. > :14:21.the select committee. The Government welcomes the committee's interest in
:14:22. > :14:25.gaining investor confidence, household energy efficiency and
:14:26. > :14:29.demand reduction as well as the future of carbon capture and
:14:30. > :14:33.storage. All of these remain high priorities for us and we have a
:14:34. > :14:38.strong track record in all three areas which I will set out. First of
:14:39. > :14:45.all, giving clear signals for investment in energy is essdntial.
:14:46. > :14:50.We gave that when we became the first country to set our pl`ns to
:14:51. > :14:56.close unabated coal power stations by 2025. We announced a package of
:14:57. > :15:00.reforms to the capacity market that was welcomed by stakeholders and the
:15:01. > :15:07.member for Southampton spokd with his knowledge on the capacity market
:15:08. > :15:10.and I would point out that the capacity market is technology
:15:11. > :15:16.neutral and is focused on sdcurity of supply while the LVF has a
:15:17. > :15:21.different focus which is on low carbon electricity and I will be
:15:22. > :15:27.setting out more on the futtre of the LCF in the Autumn Statelent The
:15:28. > :15:32.capacity market changes havd sent a clear signal to investors that will
:15:33. > :15:38.encourage the energy sources to com forward as part of our long,term
:15:39. > :15:42.plan to build a system of energy infrastructure needed for the
:15:43. > :15:46.21st-century. Will support new offshore wind projects with three
:15:47. > :15:50.auctions this parliament if costs come down. In March it was `nnounced
:15:51. > :15:54.the world's largest offshord wind farm will be built of the Yorkshire
:15:55. > :15:58.coast and this will bring jobs and growth to the local community was
:15:59. > :16:05.powering 1 million homes. Wd are boosting funding including ?250 for
:16:06. > :16:10.nuclear innovation and small modular reactors but the theme that came
:16:11. > :16:14.through again and again durhng this afternoon's debate was about the
:16:15. > :16:20.fifth carbon budget which I'm sure the chairman of the select committee
:16:21. > :16:26.intended to welcome. I was pleased to hear the enthusiasm from the
:16:27. > :16:30.member from Beverley saying what good news, positive news and what a
:16:31. > :16:34.clear and important investmdnt signal it is in terms of thd private
:16:35. > :16:39.sector knowing that the Govdrnment is committed to that and will be
:16:40. > :16:43.legally bound by it. I am grateful for the member's comments on the
:16:44. > :16:48.private sector and she spokd about the need for investment to help
:16:49. > :16:53.deliver on these targets, btt it is encouraging that when we made the
:16:54. > :16:57.announcement it was so widely welcomed by the investment community
:16:58. > :17:03.and we are consumed to look at other impacts. On home energy, endrgy
:17:04. > :17:08.efficiency is is rightly sedn by many as an excellent means to not
:17:09. > :17:12.one but several ends. It contributes to reducing bills but also to
:17:13. > :17:17.reducing carbon emissions and improving the security of otr energy
:17:18. > :17:21.supplies. Our manifesto set out how we will help a further 1 million
:17:22. > :17:28.homes as part of our commitlent to address fuel poverty. The mdmber for
:17:29. > :17:31.Birmingham gave us a canter through previous home energy efficidncy
:17:32. > :17:35.measures and I hope my commdnts will reassure him about our commhtment to
:17:36. > :17:40.deliver on those 1 million homes. I would like to thank the member for
:17:41. > :17:45.Glasgow North for his comments and hope his energy usage will be
:17:46. > :17:48.reduced by his new smart meter and we are delighted the Governlent
:17:49. > :17:57.programme is on target so that everybody will be offered the
:17:58. > :18:05.advantage he has by 2020. Jtst before the debate finishes, on a
:18:06. > :18:10.point of order it was said by the Shadow Secretary of State that
:18:11. > :18:16.investment in Hull by Siemens was on hold and it is not and he would like
:18:17. > :18:22.to make that clear because ht is very important in our local area. It
:18:23. > :18:29.is continuing. That is an intervention and a point of order. I
:18:30. > :18:32.am grateful for the opportunity to create any misunderstanding that the
:18:33. > :18:37.member may have put out there which is we have also been told clearly by
:18:38. > :18:44.Siemens that the investment in Hull and jobs that go with that hs
:18:45. > :18:52.secure. That is a reassuring... I give way. I do think it is
:18:53. > :18:57.incredibly important becausd the Chief Executive has said th`t future
:18:58. > :19:01.investment is on hold and it was about exports and that is an
:19:02. > :19:07.important point in terms of developing and growing thosd jobs.
:19:08. > :19:11.Let us just all agreed that for that area, there is no change to the
:19:12. > :19:16.exciting development taking place there and the jobs opportunhties. If
:19:17. > :19:25.I move on if I made to carbon capture and storage. CCS is a
:19:26. > :19:30.potentially important role hn the long-term decarbonisation of the
:19:31. > :19:36.UK's economy, however it is currently too expensive and costs
:19:37. > :19:40.must come down. We know well CCS projects are happening glob`lly
:19:41. > :19:45.more in addition is needed to reduce Coes. We are committed to bring
:19:46. > :19:50.forward ideas to reducing costs investing in research and
:19:51. > :19:53.development and why we are continuing to work with othdrs to
:19:54. > :20:05.progress the technology collaboratively. In parallel, we
:20:06. > :20:08.continue to provide support to the advisory group whose findings and
:20:09. > :20:16.recommendations will inform our thinking in the way forward for CCS.
:20:17. > :20:19.To both I would save the door is not closed and we recognise the
:20:20. > :20:25.importance of it will have `nd to the member for Warrington South I
:20:26. > :20:31.would urge him to look also for the signs of progress not perhaps almost
:20:32. > :20:34.two point out the negative side of other countries. He will welcome the
:20:35. > :20:39.French have announced they carbon price floor. There will be
:20:40. > :20:43.improvement from other countries. Several members have asked `bout the
:20:44. > :20:49.impact about leaving the European Union, what it will have on our
:20:50. > :20:54.energy policy and we heard particularly on this. Also from the
:20:55. > :20:57.member from Brent North who raised several points relating to Brexit
:20:58. > :21:03.and we must face up to the fact that this will make some of our targets
:21:04. > :21:06.more difficult. I do not have the answers to what our future
:21:07. > :21:11.relationship will be with the EU on vital elements like the DTS, energy
:21:12. > :21:16.union, these are going to m`ke some of the challenges we face more
:21:17. > :21:21.difficult, but I will say f`irly and squarely that we are in dialogue and
:21:22. > :21:26.conversation with all the txpical large investors and large ctstomers
:21:27. > :21:31.who supporting our investment in energy and they are working with us
:21:32. > :21:36.to ensure there is no major change in the area, specifically on Hinkley
:21:37. > :21:39.Point, I have spoken to EDF and we have had conversations with the
:21:40. > :21:47.French government and we ard told there is no change. I would like to
:21:48. > :21:51.reassure all members in this House that we remain committed to
:21:52. > :21:56.delivering the essential cldan, secure, affordable energy. Ht may be
:21:57. > :22:01.that this task has become a little bit more difficult but what remains
:22:02. > :22:12.unchanged is our determinathon to do that, always thinking of thd
:22:13. > :22:19.consumer first. I thought I wasn't going to get in a tall. What I would
:22:20. > :22:24.like to have heard from the Secretary of State would have been
:22:25. > :22:30.some timing on the CCS becatse there are many in the industry who come to
:22:31. > :22:34.me concerned that while the Secretary of State has warm words
:22:35. > :22:40.about the future of it, there are no timelines. She is sincere in what
:22:41. > :22:44.she says about making sure that she is committed but what that leans for
:22:45. > :22:51.the industry is something else entirely. Furthermore, I thhnk I
:22:52. > :22:55.would like to again saved to the Minister that perhaps when the
:22:56. > :23:04.capacity market comes up, she has a response. The debate has bedn useful
:23:05. > :23:09.to have this and I do take the point from my colleague that the dstimates
:23:10. > :23:12.is more than energy and perhaps justice, but to myself and ly
:23:13. > :23:23.distant cousin the chair of the Justice committee,
:23:24. > :23:30.I thank you for the opportunity of having this debate today and I look
:23:31. > :23:35.forward to some change is coming from it due to this, especi`lly
:23:36. > :23:40.given I have this minute quhte unexpectedly after we agreed earlier
:23:41. > :23:50.I would not. It is fantastic to have the opportunity to speak and I
:23:51. > :23:57.turned the House and perhaps we have reached the point where I should
:23:58. > :24:01.wind up my words and pass over to you, Madam Deputy Speaker. H can't
:24:02. > :24:07.imagine... I hear the booing. You want me to carry on. Thank xou and
:24:08. > :24:13.thank you for the opportunity for the debate. It is appreciatdd by me
:24:14. > :24:16.and the committee and those in the energy community who will bd paying
:24:17. > :24:21.great attention to the words are here in this chamber tonight.
:24:22. > :24:31.I thank him very much for continuing until ten o'clock. I am now required
:24:32. > :24:35.to put the questions necess`ry to dispose of proceedings on the
:24:36. > :24:38.estimate is set down for consideration this day. The question
:24:39. > :24:43.is the motion on the order paper of expenditure by the Minister of
:24:44. > :24:49.Justice, which has already been made. On the contrary say no, and
:24:50. > :25:55.ayes. Clear division. The question is the motion on the
:25:56. > :25:59.order paper related to the expenditure by the Minister of
:26:00. > :32:52.Justice. Of the opinions thdy ayes, on the contrary say no.
:32:53. > :37:10.Orator! -- order! The ayes to the right, 262, the noes to the left,
:37:11. > :37:16.127. The ayes to the right, 206 to two, the noes to be left, 127. The
:37:17. > :37:21.ayes Cavett, unlock. The qudstion is the motion paper on the orddr
:37:22. > :37:31.relating to energy and clim`te change. Of that opinion, sax aye.
:37:32. > :37:37.The ayes have aired. Third dstimates motion, minister to move formally.
:37:38. > :37:47.The question is on the order paper, as many of that opinion say aye The
:37:48. > :37:55.ayes have aired. Bill order to be brought in relating to estilates
:37:56. > :38:02.2017. You will be prepared to bring in the bill? The chairman of ways
:38:03. > :38:29.and Means, the Chancellor of the Exchequer, Damien hands and myself.
:38:30. > :38:41.Supplied appropriation main estimates bill. Second readhng what
:38:42. > :38:45.day? Tomorrow. We now come to motion number three relating to thd
:38:46. > :38:52.Environmental Audit committde Bill. The question is, as many of the
:38:53. > :39:01.opinion say aye, on the contrary note. The ayes have it. This House
:39:02. > :39:16.do now adjourned. Madam Deputy Speaker, I thank you
:39:17. > :39:22.for allowing me to speak in this adjournment debate. This ye`r marks
:39:23. > :39:30.the Tercentenary of the forlation of my regiment, the Royal Regilent of
:39:31. > :39:37.Artillery. Also the 90th birthday of our captain Jan will Her Majesty The
:39:38. > :39:43.Queen. It is also the centenary of a formation of the Corps of Royal
:39:44. > :39:48.Engineers, a call of whom gtnners have had a long held sibling
:39:49. > :39:53.rivalry. We share much with the Royal Engineers, our motto hs, our
:39:54. > :40:00.patron saint, even the red `nd blue of our rugby kits and ties `nd this
:40:01. > :40:08.evening I am pleased to say that a gunner and a supper will also share
:40:09. > :40:12.this debate. As my honourable friend is no doubt more knowledgeable than
:40:13. > :40:19.I am on the history of his call I hope you will forgive me if I focus
:40:20. > :40:23.mainly on my own regiment and allow him the opportunity to fill in any
:40:24. > :40:30.details about the history of the Royal Engineers that I might miss.
:40:31. > :40:39.The use of Artillery predatds Roman times when the slings, catapults,
:40:40. > :40:44.sisters, etc were used to project missiles at times of war. Rdcords
:40:45. > :40:52.indicate that Edward the thhrd may have used a Canon against the Scots
:40:53. > :41:00.in 1327 but there is no doubt that he used five permitted guns against
:41:01. > :41:06.the French at the Battle of Chrissy in 1346. Taking potshots at the
:41:07. > :41:14.Scots and French, what a wax to start a career! At those tiles the
:41:15. > :41:27.guns were fired from a forthfied gun pit dug by Sappers and gunndrs. I
:41:28. > :41:34.bet they stated each other back then just as literacy as their modern
:41:35. > :41:42.counterparts do today -- vigorously. It was on the 26th of May 1716 that
:41:43. > :41:49.the first two permanent cos of Royal Artillery were formed by Roxal
:41:50. > :41:56.warrant in the reign of George the first. Those two companies numbered
:41:57. > :42:02.100 men each and were headqtartered in quarter place. The King's Troop,
:42:03. > :42:08.the Royal Horse Artillery are still quartered in Woolwich, maintaining a
:42:09. > :42:15.300 year unbroken connection with that part of south-east London. The
:42:16. > :42:21.Royal Artillery 's numbers rose to four companies in 1722 when it
:42:22. > :42:28.merged with two independent Artillery companies based in Minorca
:42:29. > :42:32.and Gibraltar, once again establishing a very long history
:42:33. > :42:40.with those islands. The new unit formed in 1722 was renamed the Royal
:42:41. > :42:47.Regiment of Artillery. A military academy was established at Woolwich
:42:48. > :42:53.in 1720, providing training for Artillery and engineer officers
:42:54. > :43:03.Initially it was a gathering of gentlemen cadets, learning `nd I
:43:04. > :43:08.quote, gunnery, fortification, mathematics and a little Frdnch It
:43:09. > :43:17.produced and I quote, good offices of Artillery and perfect engineers.
:43:18. > :43:26.Perfect engineers? They might think they are perfect. I am as ydt to be
:43:27. > :43:29.convinced. My honourable frhend does indicate he is the perfect dxample
:43:30. > :43:38.of a perfect engineer. The Royal Horse Artillery were formed in 793
:43:39. > :43:41.and officers of other branches of Artillery have had to keep `n eye
:43:42. > :43:49.out for their sisters and girlfriends ever since. Arthllery
:43:50. > :43:56.technology advanced throughout the 18th and 19th centuries improving
:43:57. > :44:03.accuracy, range, mobility, reliability and lethality. This
:44:04. > :44:08.tradition of of innovation hs still alive and well today with the
:44:09. > :44:11.gunners at the cutting edge of surveillance, drone technology,
:44:12. > :44:18.communication technology and precision munitions. Madam Deputy
:44:19. > :44:23.Speaker, it was during the Napoleonic wars that British gunnery
:44:24. > :44:29.really came into its own and many of the gunner officers of the dra are
:44:30. > :44:37.still famous in the Regiment today. And such names are well-known, names
:44:38. > :44:47.such as Ramsay, Lawson, master and of course Napoleon himself. Napoleon
:44:48. > :44:51.had the great advantage in life of being a gunner. But the gre`t
:44:52. > :45:06.disadvantage of ultimately losing the Napoleonic wars. And behng
:45:07. > :45:13.French. Yet it is an incident during the often forgotten conflict between
:45:14. > :45:20.Great Britain and America in 18 4, a few years before our first
:45:21. > :45:25.centenary, that leads millions of Americans to seeing about mx
:45:26. > :45:31.regiment everyday. It is interesting that on the 4th of July, Amdrican
:45:32. > :45:37.Independence Day, that we are reminded of that event. It hs in
:45:38. > :45:42.fact, Madam Deputy Speaker, in the first verse of the American national
:45:43. > :45:46.anthem, the Star Spangled B`nner, where they're rather the following
:45:47. > :45:57.lines and if you will forgive me, I think it is only fair that H give my
:45:58. > :46:02.best rendition of these. And the Rockets red glare, the bombs
:46:03. > :46:09.bursting in air, gave proof through the night that our flag was still
:46:10. > :46:14.there. I have been told that in order to seeing in the chamber, one
:46:15. > :46:19.requires a music and entert`inment licence but as that was neither
:46:20. > :46:28.music or entertaining, I thhnk I got away with it, but those red glare
:46:29. > :46:33.is, red rocket that provided a red glare, immortalised in the @merican
:46:34. > :46:40.national anthem word the concrete Rockets fired by the rocket troupe,
:46:41. > :46:50.the Royal Horse Artillery. H think that is pretty cool. In 1854 the
:46:51. > :46:56.Royal Artillery, until 18 54, the Royal Artillery was commanddd by a
:46:57. > :47:00.board of ordinance which me`nt that gunners had a completely separate
:47:01. > :47:07.chain of command from the gtm line itself right up to Her Majesty all
:47:08. > :47:12.right up to the monarch the time. This separate train of comm`nd led
:47:13. > :47:19.to gunners getting a reputation for being rather independent minded and
:47:20. > :47:24.that independent mindedness led to a quote, attributed to Wellington
:47:25. > :47:30.which stated as follows, I despair of my army, I truly do. The infantry
:47:31. > :47:35.do not understand my orders. The cavalry do not prove my orddrs. And
:47:36. > :47:43.the artillery make up their own borders. Unfortunately, the boy
:47:44. > :47:46.centenary of the gunners and the corps was not celebrated properly
:47:47. > :47:52.because it fell in the middle of the First World War. That conflhct saw a
:47:53. > :48:01.huge increased in Royal Arthllery numbers. It is estimated th`t
:48:02. > :48:05.800,000 men served as gunners and 40,000 gave their lives in the
:48:06. > :48:15.conflict. The Great War was often known as the gunners war. I am more
:48:16. > :48:25.than happy to give way. As having served on the Royal Artillery, this
:48:26. > :48:29.decade of centenary is, in particular we remember the Battle of
:48:30. > :48:34.the Somme and the First World War and the bravery of those men who
:48:35. > :48:40.died and gave lives, it is `lso good that this debate enables us to
:48:41. > :48:49.recognise the array of roles carried out by the Armed Forces. I thanked
:48:50. > :48:53.the honourable gentleman for his intervention and he is right and it
:48:54. > :48:59.would have been remiss had H not also mentioned that the I whsh
:49:00. > :49:05.Artillery had a significant part to play and even after the act of union
:49:06. > :49:13.when the Irish Artillery and the Royal Artillery became one, Irish
:49:14. > :49:25.soldiers had a huge role to play in our success. Following on from the
:49:26. > :49:28.member's reference to the B`ttle of the Somme, it is worth remelbering
:49:29. > :49:35.in the famous week-long barrage preceding the Battle of the Somme,
:49:36. > :49:41.gunners fired in excess of 0.7 million shells. The Second World War
:49:42. > :49:46.saw another great expansion of the Royal Artillery with over 1.2
:49:47. > :49:51.million serving as gunners hn the Second World War. More people served
:49:52. > :49:57.in the Royal Artillery than in the entire Royal Navy. Since its
:49:58. > :50:01.formation in May 1716, over 2.5 million men and women have served as
:50:02. > :50:14.gunners. Some are famous for being great military leaders. But many
:50:15. > :50:26.more are famous for other rdasons. Those great post-war comedi`ns Spike
:50:27. > :50:34.Milligan were all gunners. Five chancellors of the Exchequer have
:50:35. > :50:38.been, offices - Anthony Barber, Roy Jenkins and Selwyn Lloyd. Mx
:50:39. > :50:44.regiment also produced that great proto- Thatcherite Keith Joseph and
:50:45. > :50:50.Prime Minister Edward Heath. The gunners currently give this House
:50:51. > :50:57.five honourable members - the honourable member for Plymotth,
:50:58. > :51:02.Wiltshire, Strangford and of course myself. The gunners have also
:51:03. > :51:09.produced eight Olympic gold medallists including captain Heather
:51:10. > :51:15.standing to one rowing gold at the 2012 games. To celebrate our
:51:16. > :51:23.centenary, the captain sent gunners the long Way round. This ye`r long
:51:24. > :51:32.relay where gunners have fotght and died. It is in the shape of a
:51:33. > :51:36.Napoleonic gun battle made of titanium is representing tr`dition
:51:37. > :51:43.and modernity. The trip, rated with a parade, a march past and ` firing
:51:44. > :51:50.before our captain general. I was delighted that my honourabld friend
:51:51. > :51:56.the honourable member for Mhlton Keynes North attended that parade,
:51:57. > :52:03.completing the historic circle and representing centuries of gtnners
:52:04. > :52:08.and Sappers working side-by,side. In conclusion, I would make thd point
:52:09. > :52:14.that the gunners do not havd flags like the infantry or the cavalry.
:52:15. > :52:18.The guns of the Royal Artillery are the Regiment's collars. Thex are the
:52:19. > :52:23.tools of our trade, the batch we wear and the rallying point of
:52:24. > :52:27.battle. Whilst they are important to us, alternately, just like the Royal
:52:28. > :52:35.Engineers, our most valuabld asset is our people. Gunners have a bond.
:52:36. > :52:38.We may be the size of a call but we maintain the intimacy and
:52:39. > :52:43.camaraderie of a regiment. H am honoured to have served with such
:52:44. > :52:52.wonderful people in such a glorious regiment and I wish it well for the
:52:53. > :52:58.next 300 years. I start by congratulating my honourabld friend
:52:59. > :53:03.for securing this debate whhch has allowed this House to show hts
:53:04. > :53:06.gratitude for the significant contribution that the Royal Regiment
:53:07. > :53:12.of Artillery have made to the defence of this country over the
:53:13. > :53:15.last 300 years. I welcome this opportunity to express the
:53:16. > :53:20.Government's appreciation for their service and it is appropriate for me
:53:21. > :53:27.to respond as we both continue to serve in the reserves, he indeed
:53:28. > :53:36.gunner and I a Sappers. My father was a gunner. We have heard of the
:53:37. > :53:45.exploits of the gunners and Sappers and I would like to recap on our
:53:46. > :53:53.history. On the 26th of May, 20 6, we celebrated our 300 birthdays A
:53:54. > :53:59.Royal warrant celebrated thd Artillery and the engineers. From
:54:00. > :54:03.that point the Royal Artilldry and Corps of engineers came into being
:54:04. > :54:08.but in recognition of our common heritage, who shared the sale motto
:54:09. > :54:13.which means everywhere. It lay mean slightly different things for both
:54:14. > :54:18.regiments, but nonetheless we do share the same motto and let me
:54:19. > :54:22.address each in turn. Many things define the Royal Artillery's
:54:23. > :54:26.achievements. In original thought they were the first regiment to
:54:27. > :54:33.educate their offices and to undertake formal military exercises.
:54:34. > :54:41.Subtitles will resume at 11pm with Monday In Parliament.