16/03/2017 House of Commons


16/03/2017

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to be called only once, intervention should be questions that should be

:00:00.:00:00.

brief, the front bench may take part in questioning.

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I am grateful to the backbench business committee that providing

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time they need to present our tenth report entitled Lesson Still To Be

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Learned From The Chilcot Inquiry. The decision to invade Iraq has left

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an indelible scorer in British politics. It continues to be as

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controversial today as it was at the time, not least because it became

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apparent after the invasion that it was to become a protracted and

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bloody affair costing the lives of 179 UK servicemen and women as well

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as those of our allies and thousands of people in Iraq. The consequences

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of the decision to invade Iraq remain profound, not only for our

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domestic politics but also for our foreign and Security policy and the

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stability of the whole of the region. The Chilcot Inquiry was

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established in 2009 to provide some closure to the controversy. This was

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already far too late and I'm reminded that the House of Commons

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first voted on the question of whether to have an inquiry in 2002

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on a conservative opposition motion. However for many of the length of

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the inquiry that was established has itself become subject to extensive

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criticism. Most of the reporting discussion of the Chilcot Inquiry

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has been preoccupied with the substance of the decision to go to

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war and its legality of what happened in the aftermath of the

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invasion. Yet there are also less and still to be learned regarding

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the machinery of Government and how it operated and regarding the

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conduct of public enquiries and this is what they agreed to focus on. The

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report launched today examines the extent to which Government --

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Government and decision-making was sidelined by the run-up to the Iraq

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war. Significant decisions on Iraq pre-conflict were taken without

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sufficient consultation of Cabinet colleagues. Chilcott concludes there

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were 11 decision points prior to the invasion on which and I quote there

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should have been collective discussion by Cabinet committee or

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small group of ministers on the basis of interdepartmental advice

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agreed at a senior level between officials. A worrying finding of

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PACAC's report is a future Prime Minister can override the procedures

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of collective decision-making without obstacle. Beyond making

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representations to ministers, and the Prime Minister and to the Prime

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Minister, short of resignation, Cabinet Secretary does not have any

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formal recourse to object if the Prime Minister chooses to disregard

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the procedures and decision-making as set out in the Cabinet manual.

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PACAC is in no doubt that this absence of safeguards cannot persist

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and this leads to our most important conclusion in this report. We

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therefore recommend in line with the proposal from the better Government

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initiative, that the Cabinet Secretary and or senior officials,

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should be able to acquire a formal letter of direction if they are

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being instructed to carry out the wishes of the Prime Minister

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disregarding the normal procedures set out in the Cabinet mandate. This

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was both safeguarding the independence and clarify the

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responsibility. It would make clear to ministers the vital importance of

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following proper procedures. The second key finding of PACAC's report

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relates to the establishment role and conduct of the Chilcot Inquiry

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itself and builds on the work of PACAC's predecessor which carried

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out a number of enquiries into the conduct of the public enquiries. It

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recommends in future before and inquiry is established, Parliament

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should set up an ad hoc Select Committee to take conclusions and

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recommendations to the House. There should then be a full debate and

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vote in parliament on an amendable motion setting out the precise terms

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of reference and an estimated time frame and a proposed budget for that

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inquiry. This should ensure expectations are much clearer at the

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outset of an inquiry. To has not sought to reopen all the issues

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explored by Chilcott, nor has it explored whether Parliament was

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misled by the then Prime Minister, The Right Honourable Tony Blair. By

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highlighting what the Chilcot Inquiry revealed about the

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weaknesses in the Government's decision-making procedures and by

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exploring what lessons can be learned from the Chilcot Inquiry, I

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hope we can ensure the process of plays that may enable such

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controversies to be avoided in future. I commend the report of the

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House. On Iraq, the British Cabinet, the overwhelming majority of this

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house, much of the media, the three Select committees, the civil

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service, security services or came to the same false conclusion

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resulting in a disastrous military adventure and the death of hundreds

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of thousands of people. There has been the usual unpredictable

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procrastination, prevarication and Ops location which has failed to

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reveal the truth to the British people as to what happened. The

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Select Committee is clear the Chilcott report has failed to allow

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them of the committee, to ask questions as to whether Parliament

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was deliberately misled leaving a gaping chasm right in the heart of

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the credibility of the British establishment. What a damning

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judgment after all these years. I welcome the recommendations in

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today's report and the independence of the Cabinet Secretary the frankly

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I see those recommendations are timid. Does the chair and his Select

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Committee agree with me that it will require root and branch

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transformative change in the whole of our political structures and

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culture before we can answer say again to the British people that

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there will never be such a failure? I am grateful to the right on the

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wooden man for his question. I voted for the Iraq invasion and I still

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don't know whether I would have voted the same way had we known much

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more about it. I think the really salient part of that is the lack of

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preparation and I would not have voted had I thought that there had

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been so little preparation. I think the jury is still out on whether in

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the long-term the invasion of Iraq will have been of benefit the global

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peace and security. On the question of whether Parliament was

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deliberately misled, we just did not feel qualified to make that judgment

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and we do not have the procedures and their were with all to conduct a

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fair trial of the fax there would need to be a very different kind of

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committee with very different judicial procedures to do that. We

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do suggest that have to be prepared to do that if further facts and

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information emerges but on that point, Sir John Chilcott was clear

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he did not hold the former Prime Minister culpable of deliberately

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misleading the House. We have to accept that view. I would just add

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that are our recommendations timid? They are limited to what we felt

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able to make recommendations about. Whatever structures and however you

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organise your politics, I'm afraid they're always going to be occasions

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when things go wrong and I don't think any constitutional structure

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can protect us from that though I think we have made recommendations

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that would prevent certain things happen again. Being a member of this

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Select Committee myself, I also come at it from a similar position as my

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honourable friend who chairs the committee with such distinction. I

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think it is reflected in the calibre of this report. I had my doubts

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whether my vote would have been different had we had more facts but

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again we take our votes in this house on facts that are presented to

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us and then we move forward. We don't get our time over again to

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relive our votes. In the report, one of the concerns that we were able to

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cover of the length of time and the unacceptable delays associated with

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its report. The Cabinet Secretary indicated the Government would

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consider further the question of how the Iraq enquiry could have been

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carried out more quickly. We have urged that this assessment comes as

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a matter of urgency and I wondered if my honourable friend had any

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indication as to the timescale on this or are we going to be waiting

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for it over a longer period of time as we did for the inquiry itself? We

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have until 35 minutes past to keep the answers completed. I thank her

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for her participation and the contribution to this inquiry. The

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answer is we are making recommendations. I very much doubt

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the Government is going to like them because it would limit their control

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over the process. Most governments establish public enquiries to look

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at issue is not open them up. A report is as much addressing what

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the House must take control of in order to make sure the inquiry is

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conducted better in future. The jury has been delivered and the former

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Prime Minister has been indicted and rightfully so. I would have liked to

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have seen more per RA -- formal devices. I congratulate them on the

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device of letter of direction. This is similar to financial direction.

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Perhaps you could say more about that and why he thinks it will be

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effective in avoiding the total absolute breakdown of collective

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responsibility which was identified in the Chilcott report. The second

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is Parliamentary accountability where the committee hasn't been able

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to make as much progress. If someone like the previous Prime Minister

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says one thing to be American President and something else or

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doesn't say something to the House of Commons is misleading. You can

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set up a series of enquiries -- inquries or you can spin it out to

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get a big enough remit and people ask why we are we going over it?

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There is no effective Parliamentary accountability and what I would like

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to ask the committee chair is can he see that the nature of Parliamentary

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accountability and our responsibility can be effected in

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his committee report of a mechanism produced so we have the obligation

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to take forward what our constituents demand and that is to

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hold any Prime Minister who behaves in the way of the previous minister

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to account in a proper and Timmy us fashion? The letter of direction

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shouldn't be a controversial matter because we already have it in our

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procedures with regard to financial matters. One or two former Cabinet

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secretaries are in support of it. It doesn't interfere with this

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substance of policy. It is Millie making sure proper processes covered

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and what we recommend is not that the list of direction might be at a

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sensitive time a sensitive issue, it should be made automatically public

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but we should recommend it should be made privately available at the

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choice of the Cabinet Secretary or to members of the Privy Council to

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the Leader of the Opposition. It is another lever for a Cabinet

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Secretary TQ is to secure their independence and to secure the

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proper process that Prime have agreed to in principle set down in

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the Cabinet manual. On the question of Parliamentary accountability and

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the Prime Minister, it remains open to this house to set up a special

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Select Committee, privilege committee, to establish proper

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procedures, to provide fair representation that the prosecution

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and the defence but this will be a complete new procedure. Nothing like

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this has been done in the era when we expect natural justice to be

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carried out to higher standards. We cannot have MPs who have known views

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on these issues, acting as some kangaroo court to Varane a former

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Prime Minister. It wouldn't do this house any good. With regards to the

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inquries, the Secretary of State for culture, media and sport is we are

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considering whether to reconvene the Levenson enquiry which has set fire

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50 months at a cost of millions of pounds. I wonder what advice he

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would give to the Secretary of State. I would suggest, as perhaps

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should have been done with the child sex abuse inquiry, ask for a

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committee to be set up, let's have an inquiry into the inquiry before

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you get stuck on the tram lines of legality and appointing people. Look

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before you leap, is the answer. Access that Government should not be

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able to establish inquries to get them out of difficulties. The House

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should be here to assist the scrutiny and here to oversee an

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inquiry is conducted in a timely fashion.

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I am a member of the Select Committee and supported the

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publication report, but it was not in a spirit of enthusiasm. I have

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some unease in a few phrases in the report which were subsequently

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corrected. In particular would he agree that we have inserted the

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possibility of a further enquiry, but not by Select Committee, but

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possibly by others if the evidence comes to light? I personally believe

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we were misled by the then Prime Minister on weapons of mass

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destruction and the pretext of war. I was one of the 139 Labour MPs who

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voted against the war and I stand by that decision and some of the unease

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was expressed by my honourable friend on the front bench as well. I

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wonder if the chairman would accept that I expressed some unease at the

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time, in particular further enquiries in future might be

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worthwhile. I am grateful to the honourable gentleman and he has been

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a trooper on this committee for a very long number of years. I do

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accept this was a difficult enquiry to agree on, though because we were

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concentrating on process and procedures rather than the substance

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of the issues, we had to accept some of the turn of the anxiety that so

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many people feel about this issue in our draft. I hope he felt able and

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comfortable to support this enquiry because the recommendations he fully

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supports and I am grateful to him for that. Does my honourable friend

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agree that the overriding lesson that most people will think we can

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learn from the Chilcott enquiry is that these reports take too long and

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cost too much? It is an extraordinarily thorough piece of

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work, this enquiry. I think Chilcott should be commended for what he

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achieved and the detail he went into and the seriousness with which he

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approached it, but it was not what the public initially expected. When

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you think the enquiry into the Crimean War which in some respects

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was a far bigger disaster and was conducted in the space of a few

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months, I think that is what the public hope for. There were various

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top-level things. There is a tremendous sense of obligation to

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provide people with fairness in enquiries which perhaps did not

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exist after the Crimean War, but I do think we need to set down

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parameters for this kind of enquiry and that is what a Select Committee

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would do if it studied the enquiry before it was set up. I listened

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with interest to what the honourable gentleman had to say. It is only by

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accident that I found this discussion was taking place right

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now and I have not read your report, but I have heard your statement and

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I have listened with interest and I think nobody would disagree with due

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process. I sent out a Twitter message two hours ago which said our

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thoughts are with the victims and survivors of Saddam Hussain

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genocidal campaign 28 years ago to this day. That is one of the reasons

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I and many others and the majority in this house voted for the war. I

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am most grateful to the right honourable lady and her kind

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intervention. If I may say so, that is one of the reasons I think it is

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important for us to make these statements because you engage more

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members. I regard this as a very serious piece of work with some very

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serious recommendations. I regard it as a piece of work that can be

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embraced by right honourable members of all views on the original

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conflict as a better way of making decisions in this government and as

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a better way of conducting public enquiries. As a member of this

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committee I would like to point out that Chilcott was there to identify

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mistakes which led to the loss of life, military and civilian. Seven

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years to come to conclusion is unacceptable. Those mistakes could

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have been repeated during that timescale. However, the committee

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wants to point out the Iraq inquiry reported that the Blair government

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did not expose key policy decisions to regular review and cabinet was

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when asked to confirm the decision that the diplomatic process was at

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an end and the House of commons should have been asked. Given the

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gravity of this decision the cabinet should have been made aware of the

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legal uncertainties. It would appear to be that the evidence provided to

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the Cabinet was designed to produce the result that the then Prime

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Minister was looking for. I think that is an accurate comment and I am

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also grateful to the honourable gentleman for his contribution to

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the committee and this report. But it cuts both ways. The Cabinet went

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along with being sidelined and Chilcott was quite clear about that.

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There were plenty ministers in the Cabinet who were quite content to

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make and to let others make decisions when they could have been

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consulted. We address had the legal advice was taken and explored by the

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Cabinet as well and we make recommendations about that. Our

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proposals would make it clear what Cabinet ministers can expect and are

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entitled to expect. It is not a favour to ask of the Prime Minister,

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it is part of a proper procedure of Cabinet government. We have a

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constitutional Cabinet government and that is what will be reinforced

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by these proposals. I am also a member of the committee but I am not

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supporting this report because I believe it has been interpreted by

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the press as an act of absolution for the previous Prime Minister

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involved and the others who were culpable and being led by him,

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principally the three select committees of this house. This was

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the worst blunder this house committed since sending troops into

:22:25.:22:28.

the sewers war. We should be objective in dealing with our own

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blunders and this report, whilst it has many merits, it does not deal

:22:35.:22:38.

with the truth of the time, that we were led into an avoidable war by a

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man of vanity whose messianic rule misled this house in a very serious

:22:49.:22:52.

way. The honourable gentleman's report does contain the evidence and

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there I two interpretations of the evidence before Chilcott and won the

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report suggests that should be referred might lead us to a

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conclusion that we did go to a war in vain. Of course we must remember

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the principal need here and that is to avoid sending other soldiers into

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war in future because of the vanity of this house, of the inflexibility

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of this house in making fair judgments. We have that

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responsibility. If we do not condemn the errors of the past, we are

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responsible for them. I am grateful to the honourable gentleman for his

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work to the committee and I respect we differed on this report and I

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appreciate the emphasis he want to make by declining to support this

:23:47.:23:51.

report. But it is open to this house at any time to reflect any matter to

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the committee privileges and there is a procedure for doing that and if

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he thinks there is a case for doing that, he should try and implement

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that procedure. But I think the difficulty is, as the Chilcott

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enquiry is self-centred, that there are two interpretations about this

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and there is nothing definitive in terms of evidence to suggest there

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was culpability in that the former Prime Minister deliberately sought

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to mislead the House. I think there are a lot of lessons to be learned,

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not least if I may say as an aside, that when it comes to a decision

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like this for the House to make an informed decision, it relies

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entirely on what government tells it. We are in a new era where the

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House is consulted about these things when it never used to be. We

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used to have rather more retrospective accountability for

:24:47.:24:51.

these matters rather than forward accountability and I question

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whether that works. I do not think is of commons is competent to make

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strategic judgments on the spur of the moment in the heat of a crisis

:24:59.:25:02.

in the same way that a government should be. As a new member in 2015 I

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was struck by the Chilcott experience and the unacceptable

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delay. But as taking decisions in this place is the honourable

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gentleman just said, we want to take educated decisions based on

:25:19.:25:23.

evidence. But more so for the families of the soldiers who died it

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was unacceptable. Can I ask him about the recommendations he made

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about a more strict re-met and timing for such enquiries? How can

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we take that forward in this house? Do we need to have a vote on it or

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is it the gift of the government to do so or not do so? Ultimately it is

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in the hands of this has, subject to whipping and all the pressures put

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on this house, but in the end it is in the hands of this has to decide

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how and enquiry is conducted. If they do not like it, we can stop it

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because we are a sovereign house. But I agree, the length of time this

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took was unacceptable. Not only did it undermine the credibility of the

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enquiry itself, it actually undermined the very confidence in

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public institutions that the inquiry was intended to restore. It did not

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serve the purpose that this house might have wanted it to serve

:26:27.:26:30.

because it took so long and it was a grievous torture for those who lost

:26:31.:26:35.

life and limb and the families of the bereaved. We come to the second

:26:36.:26:46.

committee statement which will follow the same procedure as the

:26:47.:26:52.

previous one. Sarah Wollaston. The scale of the bottom or loss of life

:26:53.:26:57.

from suicide is unacceptable. 4820 people in England took their own

:26:58.:27:08.

lives in 2015 and across the UK 6122 in 2014. But these official figures

:27:09.:27:14.

underestimate the true scale of the devastating loss from suicide. It

:27:15.:27:19.

remains the leading cause of death in young people between the ages of

:27:20.:27:24.

15 and 24, and it is the leading cause of death in men under 50. It

:27:25.:27:29.

is strongly linked to deprivation and a major contributor to health

:27:30.:27:36.

inequality. But the key message we heard throughout our inquiry is that

:27:37.:27:40.

suicide is preventable and there is far more that we can and should be

:27:41.:27:44.

doing to make sure that we reduce that. That was the key focus for our

:27:45.:27:51.

enquiry from the Health Select Committee into preventing suicide. I

:27:52.:27:56.

would like to thank all of those who contributed to the inquiry,

:27:57.:28:00.

particularly those who are from families bereaved by suicide and

:28:01.:28:05.

those who themselves had experienced suicidal tendencies and who had used

:28:06.:28:12.

the mental health services. Their evidence was courageous and

:28:13.:28:14.

compelling. I would like to thank all those voluntary groups working

:28:15.:28:19.

out there, and the volunteers, to provide support for people in crisis

:28:20.:28:23.

and to all our front-line staff. I would like to thank my fellow

:28:24.:28:27.

committee members and our committee staff. Moving on to what we found in

:28:28.:28:39.

our inquiry, first of all, we welcome the government was back

:28:40.:28:43.

suicide prevention strategy, but part of any strategy, the key is

:28:44.:28:47.

implementation. We call on the government to go far further in

:28:48.:28:52.

implementing the strategy and to re-sourcing it and to give greater

:28:53.:28:55.

attention to the workforce in order to make the very important

:28:56.:29:01.

considerations come forward. We also make further recommendations in that

:29:02.:29:05.

we were disappointed in a number of areas in that the government has not

:29:06.:29:09.

gone further. We know there are things we can do to reduce suicide

:29:10.:29:13.

and there are a number of these we highlight in our report. Half of

:29:14.:29:17.

those who take their own lives have self harmed and we feel it is really

:29:18.:29:23.

disappointing that so many of those with experience of self harm, their

:29:24.:29:30.

experience when they go to casualty departments means sometimes they are

:29:31.:29:33.

made to feel they are wasting people's time. We know psychiatry

:29:34.:29:39.

makes an enormous difference, but there are issues with liaising and

:29:40.:29:47.

psychiatry. Patients should receive a visit within three days of leaving

:29:48.:29:51.

inpatient services, but there simply are not the resources for that to be

:29:52.:29:56.

put into place. We call on the government to go further in looking

:29:57.:29:59.

at the workforce and resizing for this to take place.

:30:00.:30:05.

We know, as well, that there are serious issues in that around one

:30:06.:30:11.

third of people who take their own lives are not in contact with

:30:12.:30:16.

primary care or specialist services in the year of their death. Suicide

:30:17.:30:22.

is everyone's business, we all have a responsibility to reduce the

:30:23.:30:26.

stigma around mental health and make it easier for people to seek help. I

:30:27.:30:31.

pay tribute to all of those working in this field reaching out to those

:30:32.:30:37.

in non-health settings and making a real difference. Many of those

:30:38.:30:49.

voluntary groups are coming under great financial pressure. We know

:30:50.:30:51.

that it is welcome that the government has announced that there

:30:52.:30:53.

will be 5 million for suicide prevention but this doesn't come on

:30:54.:30:57.

until next year and we feel this is too little too late. Particularly in

:30:58.:31:02.

the context of cuts to public health grounds and the cuts that we know

:31:03.:31:06.

are happening in local authorities and with services that can reach out

:31:07.:31:11.

to those vulnerable to suicide. We die to see the government give a

:31:12.:31:14.

greater focus to adequately resourcing the measures they set out

:31:15.:31:19.

in their rooms so his side prevention strategy. Particularly,

:31:20.:31:23.

look at how those plans are implemented. It is welcome that 95%

:31:24.:31:29.

of local authorities have a suicide prevention plan in place or in

:31:30.:31:33.

development but there doesn't seem to be sufficient quality assurance

:31:34.:31:37.

about those plans so what we would all like to see is a national

:31:38.:31:42.

implementation board looking at how we can move these plans forward.

:31:43.:31:50.

However good the strategy, if it is not implemented cannot be effective.

:31:51.:31:57.

That was one of the key messages we heard from witnesses and I know that

:31:58.:32:00.

the Minister will have heard that from the National suicide prevention

:32:01.:32:07.

advisory board, very loud and clear. There are also things that we no

:32:08.:32:11.

need to happen when people are in contact with services. It is

:32:12.:32:16.

disappointing there hasn't been greater focus upon the consensus for

:32:17.:32:25.

information sharing. There are too many occasions on which the first

:32:26.:32:31.

people here that a loved one has taken their own life happening at

:32:32.:32:37.

that point. Subsequently, it is found out that their relatives had

:32:38.:32:44.

been in touch with services but no one had let them know. There are

:32:45.:32:50.

issues of consensual OT and consent but if you ask people in the right

:32:51.:32:55.

way they are much more likely to give that consent to information

:32:56.:32:59.

sharing and we would like to see the government putting greater focus on

:33:00.:33:04.

how we can increase awareness of how health professionals share

:33:05.:33:06.

information with people's loved ones. We believe that will save

:33:07.:33:12.

lives. Across the board, there measures that can be taken, both out

:33:13.:33:18.

in the community and in health care settings, and in specialist

:33:19.:33:20.

settings, but the minister will know that we also look at the role of the

:33:21.:33:27.

media because irresponsible reporting of suicide rates. We know

:33:28.:33:32.

this. There is far more that can be done within the broadcast media,

:33:33.:33:37.

mainstream media, social media and the Internet to make sure that we

:33:38.:33:43.

save lives. I was very pleased that the Secretary of State has agreed to

:33:44.:33:49.

meet. I hope the Minister will liaise with them to ensure that we

:33:50.:33:53.

can save lives in that way. Finally, the issue of data. There is an

:33:54.:34:03.

increasing use of narrative verdict is that our hard to code. The

:34:04.:34:08.

official data does under represent the true scale of the avoidable loss

:34:09.:34:14.

of life. The issue is that because we have huge variation around the

:34:15.:34:18.

country it makes it much more difficult to understand what works

:34:19.:34:22.

best in preventing suicide. We would like the Minister to revisit the

:34:23.:34:29.

recommendations on our report about how we provide better training to

:34:30.:34:36.

coroners and how we also review the evidential standard and move from

:34:37.:34:40.

beyond reasonable doubt to the balance of probability in recording

:34:41.:34:43.

suicide because only in that way can we make sure that we are doing

:34:44.:34:48.

absolutely everything possible to protect families and individuals in

:34:49.:34:52.

the future. So, I commend this report on suicide prevention to the

:34:53.:34:56.

house and call on the government to go further in implementation will

:34:57.:35:07.

stop thank you. Can I say first that labour welcomes the recommendations

:35:08.:35:17.

in this report. The committee visited the award-winning Salford

:35:18.:35:24.

liaison team, a team which has halved admission rates of people

:35:25.:35:30.

with mental health problems. The Royal College of psychiatrists

:35:31.:35:32.

reminds us that only half of services provide liaison services 20

:35:33.:35:38.

47 and they said it would be difficult to recruit enough staff to

:35:39.:35:43.

provide a liaison psychiatry service in every hospital. The honourable

:35:44.:35:47.

lady touched on that in her statement. Can she say what she

:35:48.:35:52.

thinks the government must do to insure there are enough trained

:35:53.:35:57.

staff to ensure there are sustained liaison psychiatry services in every

:35:58.:36:00.

Acute Hospital to help deliver the strategy. We need to start right

:36:01.:36:08.

back at medical school recruitment and what happens in medical school

:36:09.:36:12.

and beyond to encourage more health pressure -- professionals to

:36:13.:36:21.

consider psychiatry and mental health services as a career. One of

:36:22.:36:27.

the key issues is the lack of a workforce. The government is trying

:36:28.:36:31.

to improve and work with health education England to improve this

:36:32.:36:35.

but we would like to see them go further and looking at resource is

:36:36.:36:38.

really need to make sure that resources get to the front line. Can

:36:39.:36:45.

I congratulate the honourable lady on her chairmanship of the committee

:36:46.:36:51.

and the recent report. She will know that recent studies, particularly in

:36:52.:36:56.

Sweden, have indicated that people with- shunning autism spectrum have

:36:57.:37:02.

ninefold increase in suicide risk. Could she say something about what

:37:03.:37:08.

more could be done to help these individuals and their families and

:37:09.:37:12.

how we raise awareness with those who intervene with this group so

:37:13.:37:17.

they are aware with this group of the problems. I would congratulate

:37:18.:37:26.

the honourable lady for what she has done in her whole career in

:37:27.:37:31.

highlighting the problems of autism and the families involved. The key

:37:32.:37:37.

thing is to have an assessment in the first place, too often people

:37:38.:37:43.

with autism fall between the gaps in the health service. That would be my

:37:44.:37:47.

key message around making sure that they receive the services and

:37:48.:37:50.

support they need and it is delivered in the right way. I would

:37:51.:37:58.

congratulate the honourable member for Totnes in bringing this critical

:37:59.:38:04.

issue to the house and speak in full support of this paper. I declare an

:38:05.:38:11.

interest in the patron of Chris's House, the first 24-hour

:38:12.:38:18.

interventionist suicide support service in Scotland. We set up to

:38:19.:38:23.

offer a safe environment where people in crisis may have respite

:38:24.:38:28.

from their current and wellness by finding refuge in Chris's house and

:38:29.:38:34.

providing an individually tailored programme to offer support and

:38:35.:38:37.

respite throughout their journey to well-being. I would urge others

:38:38.:38:44.

across the UK to look at this more interventionist model and replicated

:38:45.:38:50.

to the benefit of all UK citizens. I would urge all to joiners on the

:38:51.:38:57.

26th of May in Glasgow as we walk from that list to light to raise

:38:58.:39:03.

awareness of suicide prevention. I thank the honourable gentleman and

:39:04.:39:09.

join him in pain should be to voluntary groups doing extraordinary

:39:10.:39:12.

work to reach out to people in crisis. One of the key issues is the

:39:13.:39:18.

level of variation in this kind of support and the financial challenge

:39:19.:39:21.

that people face around the UK in supporting them properly. Can I also

:39:22.:39:29.

thank my honourable friend very much indeed for the work that she and her

:39:30.:39:34.

committee have done on this issue. The suicide rate among men is three

:39:35.:39:40.

times that of that among women and that gap has increased since 1981.

:39:41.:39:46.

It is the leading cause of death for men under the age of 50. One

:39:47.:39:52.

particular problem is that of contagion where one suicide can lead

:39:53.:39:55.

to a state of others within the same area. Does my honourable friend and

:39:56.:40:03.

her committee Turing the enquiry identify how this particular aspect

:40:04.:40:08.

could be dealt with? -- during the enquiry. We did mention this

:40:09.:40:16.

specifically in the report. He will know that part of this is

:40:17.:40:19.

irresponsible reporting that leads to this, we also know that where

:40:20.:40:27.

local areas work closely together to identify suicides and identify

:40:28.:40:30.

particularly where there are early clusters, there are measures that

:40:31.:40:35.

can be taken to go into workplaces, schools, and colleges to provide

:40:36.:40:38.

support and stop this but it does require noticing early. So we urge

:40:39.:40:45.

coroners to work with local authorities and public health teams

:40:46.:40:49.

to ensure they are aware of the high risk of this spreading. Many thanks.

:40:50.:40:57.

I'd like to thank the committee and honourable lady for their report and

:40:58.:41:03.

welcomed the recommendations in particular that we should commit to

:41:04.:41:08.

rolling out crisis intervention teams and efforts to prevent suicide

:41:09.:41:14.

so that people can be followed up directly. Suicidal individuals are

:41:15.:41:19.

not always mentally ill and awaiting treatment and attendance at urgency

:41:20.:41:27.

are are not always relevant. I would like to ensure liaison between

:41:28.:41:33.

services because only when this occurs in a seamless way between

:41:34.:41:37.

health, community services and criminal justice will we prevent

:41:38.:41:41.

suicidal individuals from falling between the gaps. Thank you for

:41:42.:41:50.

highlighting that important point about communication within families

:41:51.:41:53.

and within services. One of the problems can be that you have what

:41:54.:41:57.

happens in local authorities and what happens in the health service

:41:58.:42:01.

and too often there is insufficient communication between the two. I

:42:02.:42:10.

congratulate the honourable lady on her work and that of the select

:42:11.:42:15.

committee. In the mid-to thousands there was a series of tragic

:42:16.:42:19.

suicides in the Bridgend area that forms part of my constituency. I

:42:20.:42:24.

wasn't a member of this house when they took place but it is a major

:42:25.:42:30.

part of people's memories in those communities. I want to focus on the

:42:31.:42:34.

media attention. There was a film made about the suicides that was not

:42:35.:42:39.

welcomed by the various communities and I'm glad that she is pursuing as

:42:40.:42:44.

part of the report tackling the glorification of suicide in the

:42:45.:42:49.

media. If you could put it like that. I wonder if she would consider

:42:50.:42:55.

sharing her select committee's report with the Welsh government

:42:56.:43:00.

health and social care committee because I passionately believe that

:43:01.:43:04.

where we can implement best practice from all sectors, whether in the

:43:05.:43:10.

evolved assemblies, we should be sharing that to tackle suicides

:43:11.:43:16.

across the UK. I would be delighted to meet with him and share that. I

:43:17.:43:21.

agree that we should be sharing best practice across the devolved nations

:43:22.:43:25.

and England. The point about the role of the media, there are really

:43:26.:43:32.

clear guidelines that have been produced by Samaritans and I hope

:43:33.:43:36.

all media organisations will look at that very closely and we should go

:43:37.:43:40.

beyond broadcast and print media and look at social media and the

:43:41.:43:48.

Internet as well. I would like to welcome the health select

:43:49.:43:52.

committee's report into suicide prevention and congratulate my

:43:53.:43:54.

honourable friend and her committee for their work on this very

:43:55.:44:00.

important issue. I would also like to join her in my thanks to those

:44:01.:44:06.

who bravely contributed to the work of the committee. Every death by

:44:07.:44:11.

suicide is a tragedy which has a devastating effect on communities

:44:12.:44:16.

and that is why the government is committed to reducing the rate of

:44:17.:44:23.

death by suicide by 10% by 2021. We were particularly grateful to the

:44:24.:44:26.

committee who published their interim report in December which

:44:27.:44:30.

allowed us to address many recommendations in our update of the

:44:31.:44:35.

National strategy and this did include driving local delivery,

:44:36.:44:39.

addressing stigma, improving bereavement services and increasing

:44:40.:44:43.

awareness of the consensus statement for information sharing for people

:44:44.:44:47.

at risk of suicide but we do accept that we need to go further on

:44:48.:44:54.

implementing the cross government suicide prevention strategy. That is

:44:55.:44:59.

why we published the strategy to strengthen key areas including

:45:00.:45:04.

implementation. It is why will continue to provide further updates.

:45:05.:45:11.

It continues with Jess is self harm as an issue in its own right which

:45:12.:45:14.

is one of the most significant issues of suicide risk. We are

:45:15.:45:21.

working with the advisory group and delivery partners across government

:45:22.:45:23.

and other agencies and stakeholders to develop and improved

:45:24.:45:28.

implementation framework. We are making good progress insuring all

:45:29.:45:32.

local areas have suicide plan in place by the end of the year. We

:45:33.:45:37.

have 95% of local areas with a suicide prevention plan in place or

:45:38.:45:42.

in development but we are also going to work with local areas to assess

:45:43.:45:45.

the quality of those plans building on guidance of good practice and we

:45:46.:45:50.

have run a series of suicide prevention masterclass is carried

:45:51.:45:53.

out by Public Health England to improve that quality. We have also

:45:54.:45:59.

published guidance in January on improving bereavement services as an

:46:00.:46:03.

important plank of the plan. Furthermore, we will publish a green

:46:04.:46:08.

paper on young people's mental health and develop a national

:46:09.:46:11.

Internet strategy which will explore the in fact -- impact on suicide

:46:12.:46:18.

prevention and mental health to address some of the issues she has

:46:19.:46:20.

raised around media and suicide. We have committed to all A having

:46:21.:46:32.

core services to deliver this ambition and we will be publishing

:46:33.:46:37.

our mental health workforce strategy which I am sure the committee will

:46:38.:46:42.

carefully scrutinised and we will carefully consider all the

:46:43.:46:48.

recommendations made in this report and respond. Does she agree that we

:46:49.:46:54.

cannot think about suicide without considering the broader question of

:46:55.:46:58.

mental health? Will she and the committee join me in welcoming the

:46:59.:47:02.

wide range of measures set out by the Prime Minister in January with a

:47:03.:47:09.

focus on earlier intervention and prevention in mental health

:47:10.:47:13.

services? These improvements will be essential if we are to make the

:47:14.:47:16.

progress of suicide prevention that all of us in this has want to see. I

:47:17.:47:24.

had my honourable friend and agree with absolutely about the importance

:47:25.:47:27.

of prevention and early intervention and I look forward to the strategies

:47:28.:47:31.

she has referred to and to working with her to do all we can to improve

:47:32.:47:36.

mental health and to reduce the terrible from suicide. We now come

:47:37.:47:44.

to the backbench motion on energy prices. John Penrose to move. I move

:47:45.:47:50.

the motion which stands in my name and my co-sponsors from Don Valley

:47:51.:47:56.

and North Ayr and carrot. I shall start by thanking the backbench

:47:57.:48:00.

business committee for finding the time to debate this important and

:48:01.:48:06.

topical motion today, as well as banking my two co-sponsors, plus the

:48:07.:48:10.

50 or so MPs from across the political spectrum who all feel the

:48:11.:48:21.

way most energy customers are being treated is so I'm just so as to

:48:22.:48:25.

raise it here in Parliament. Customer loyalty is hugely

:48:26.:48:30.

important, an asset to be price, whether it is a supermarket's

:48:31.:48:34.

loyalty card, an airline's airline scheme or a copy card that gives you

:48:35.:48:39.

a free cup of coffee after they have stamped it ten times. Most

:48:40.:48:43.

businesses reward their most loyal customers with special treatment to

:48:44.:48:47.

keep them coming back. Except for energy. What other industry does not

:48:48.:48:53.

give their most loyal customers any disk as ordeals, but charges them

:48:54.:48:57.

higher prices than anyone else instead? Which company is believed

:48:58.:49:01.

loyalty should be exploited, not rewarded? Who treat their longest

:49:02.:49:08.

serving customers as chumps, to be switched on to expensive and unfair

:49:09.:49:13.

deals when they are not looking and then ripped off mercilessly for as

:49:14.:49:19.

long as possible. The big six energy firms, I'd Deputy Speaker, that is

:49:20.:49:24.

who. The rest of the industry is pretty good. There are 30 or more

:49:25.:49:29.

new firms snapping at the heels of the big six and they understand

:49:30.:49:36.

loyalty matters if you want to grow. I am grateful to my honourable

:49:37.:49:40.

friend for giving way. There has been a huge roll-out of smart meters

:49:41.:49:45.

which is one way of keeping an eye on energy bills. But unfortunately

:49:46.:49:54.

when people do switch providers they find that their smart meter often

:49:55.:49:59.

has to be replaced at the same time. Does my honourable friend agree this

:50:00.:50:03.

is why some people are unwilling to change providers? There are many

:50:04.:50:08.

reasons why switching has not caught on to anything like the degree we

:50:09.:50:12.

needed to if we are to transform this sector. One of the factors may

:50:13.:50:19.

very well be this problem with smart meters, but there are others as

:50:20.:50:23.

well. I will point at others as well later on in my speech. There are 30

:50:24.:50:31.

or more newish firms snapping at the heels of the big six who understand

:50:32.:50:35.

loyalty matters. Some are more impressive than others, but they all

:50:36.:50:40.

have one thing in common. They are hungry, they know they have got to

:50:41.:50:43.

impress and delight their clients because they cannot exploit a black

:50:44.:50:50.

book of long-running customers to stay fat and happy. Roughly two

:50:51.:50:56.

thirds of all customers, at least 20 million households, are on the

:50:57.:50:59.

expensive, rip-off deals, the standard variable tariff. While a

:51:00.:51:04.

minority of customers switched to a different energy supplier regularly,

:51:05.:51:10.

most of us do not. The amount of switching has been creeping upwards,

:51:11.:51:13.

but a lot of the change has been the same bargain hunters churning around

:51:14.:51:18.

an ever faster circles between different energy firms. The number

:51:19.:51:24.

of households who have never switched remains stubbornly high

:51:25.:51:29.

which suits the big six just fine. What is the answer? How do we put

:51:30.:51:32.

energy customers in the driving seat? Giving them the same powers to

:51:33.:51:38.

choose a new energy supplier as easily as we switch a new brand of

:51:39.:51:46.

toothpaste or coffee. Firstly, we have got to make switching a lot

:51:47.:51:51.

easier. Choosing that different brand of toothpaste is easy, you

:51:52.:51:56.

pick up a different tune of the shelf, but too many people find

:51:57.:51:59.

switching to a different energy firm scary and stressful and they are

:52:00.:52:04.

frightened off. Even the price comparison sites who have an

:52:05.:52:08.

interest in making the process is simply and as easy as possible lose

:52:09.:52:12.

huge numbers of customers who abandon their search the moment they

:52:13.:52:17.

are asked something simple like what is your current energy usage? Some

:52:18.:52:22.

people think switching will go wrong so they could end up cold and

:52:23.:52:25.

shivering in a house without power if the move does not happen

:52:26.:52:29.

smoothly. My honourable friend has already mentioned the fact that

:52:30.:52:36.

smart meters have an impact in some households at least. Some of us have

:52:37.:52:42.

not got time, leading busy lives juggling schools, child care, jobs

:52:43.:52:47.

and what else. Switching our energy supply is one of those things we all

:52:48.:52:51.

know we ought to do, but we never quite get round to doing. The

:52:52.:52:56.

difference is that those other products do not automatically switch

:52:57.:53:01.

you to a super expensive brand of toothpaste or copy unless you tell

:53:02.:53:05.

them not to. They do not expect you to be on your toes all the time to

:53:06.:53:09.

stop them changing use the terms of your deal and ripping you off. But

:53:10.:53:15.

toothpaste, copy and everything else, loyalty and inertia works in

:53:16.:53:20.

the customer's favour, but not with energy. If you relax, they will have

:53:21.:53:26.

you. There are simple things that will make switching easier, less

:53:27.:53:31.

stressful and not so scary. A main one is making your customer data

:53:32.:53:35.

easily available to a new energy firm. That way we do not have to

:53:36.:53:42.

fill in endless online pages with information we cannot remember we

:53:43.:53:47.

have not got. At the moment the information can take days to come

:53:48.:53:51.

through and the big six floating obstacles along the way. They have

:53:52.:53:54.

no interest in making the process simple. We should just be able to

:53:55.:54:01.

ask our new firm to get it from an existing supplier in a few seconds

:54:02.:54:07.

with the tick of a box or the press of a mouse. Simple, easy and safe.

:54:08.:54:12.

The number of people switching would go through the roof if we get this.

:54:13.:54:16.

There are end to end services provided... The honourable member is

:54:17.:54:23.

making a good point, but will he agree also it is more problematic

:54:24.:54:27.

for example for people who live in tower blocks where the energy supply

:54:28.:54:33.

is collectively made by the landlord who might not have any incentive to

:54:34.:54:39.

switch to another supplier? My them Deputy Speaker, the honourable

:54:40.:54:43.

gentleman is right. One of the things that might be improved by the

:54:44.:54:48.

roll-out of smart meters would be to break down some of those collected

:54:49.:54:52.

bills. The concern amongst many in the industry is that smart meters

:54:53.:55:01.

may be overinvested in too many hopes and they will not produce a

:55:02.:55:05.

lasting uplift in the levels of customer engagement in chess. They

:55:06.:55:09.

would start off as an interesting and new gadget, but after a few

:55:10.:55:14.

months that interest may die away. But he is right, there is an

:55:15.:55:21.

opportunity there. In the spirit of making switching easier, there are

:55:22.:55:25.

end to end services provided by terms like Flipper, which do the

:55:26.:55:32.

donkey work for us, handling everything from finding a better

:55:33.:55:35.

deal to organising the switch itself. They appeal to those of us

:55:36.:55:40.

who think even the most convenient price comparison sites take too much

:55:41.:55:47.

of our time as well. Would my honourable friend not agree part of

:55:48.:55:51.

the problem with the big six and other generators is they are not

:55:52.:55:55.

straightforward and honest with their customers and stakeholders?

:55:56.:55:59.

Until they are straightforward and honest they will be this disquiet at

:56:00.:56:05.

their conduct. That is I think one of the underlying concerns about

:56:06.:56:09.

this industry and the way it operates. Because they have not

:56:10.:56:14.

necessarily been asked at the moment when they are switched on to the

:56:15.:56:19.

default tariff, they feel when they notice it, if they notice it, they

:56:20.:56:23.

are being ripped off because those default tariffs are so much higher

:56:24.:56:28.

and that leads to distrust in the suppliers and that is corroding the

:56:29.:56:32.

underlying level of trust in the industry as a whole. It is

:56:33.:56:39.

incredibly dangerous. Some forward thinking people in the industry

:56:40.:56:43.

understand the brand damage being done not just to individual firms,

:56:44.:56:48.

but to the sector as a whole. It is slow to gain that trust. The

:56:49.:56:52.

honourable gentleman has a background in marketing and consumer

:56:53.:56:56.

business and he will understand what I mean. If we can look at the

:56:57.:57:03.

effects of these end to end services I was mentioning, introducing them

:57:04.:57:07.

and rolling them out should introduce another new group of

:57:08.:57:12.

customers who do not switch at all. But they will be persuaded to do so

:57:13.:57:16.

in future, extending the number of people in that is that when two

:57:17.:57:20.

thirds of the customer base who do not switch. These changes taken

:57:21.:57:29.

together are essential steps to solve the underlying, fundamental

:57:30.:57:32.

problems which make the energy market such a rip off. If the

:57:33.:57:38.

government, Ofgem and even enlightened energy firms themselves

:57:39.:57:42.

are willing to take them, the abuses will start to fall and customers

:57:43.:57:48.

will finally be in the driving seat like we already are and expect to be

:57:49.:57:50.

with everything else from toothpaste to copy to cornflakes and so on. But

:57:51.:58:00.

how quickly will the rip-offs stop? Will there be stubborn pockets of

:58:01.:58:05.

resistance left over? Given that two thirds of all these customers are on

:58:06.:58:13.

those rip-off tariffs, there is an awfully long way still to go. Even

:58:14.:58:20.

the most optimistic scenarios, an unacceptably large number of houses

:58:21.:58:23.

will still be ripped off for a few more years yet. We need a stop gap,

:58:24.:58:30.

a temporary solution whilst all those other ideas start to work and

:58:31.:58:35.

take effect. The answer is a relative price cap, a maximum

:58:36.:58:39.

mark-up between each energy firm's best deal and their default tariff.

:58:40.:58:45.

Once your existing deal comes to an end, if you forget to switch, you

:58:46.:58:51.

will not be ripped off too badly. But there will still be plenty of

:58:52.:58:55.

money you can save when you get round to switching again, so it will

:58:56.:58:58.

be worth your while to become engaged and take that additional

:58:59.:59:04.

action. Energy firms will still be able to compete on price, they could

:59:05.:59:10.

still decide if they want to be the Waitrose, the Marks Spencer or the

:59:11.:59:16.

Lidl of the industry. They could still have as many tariffs as they

:59:17.:59:20.

wanted so there could be plenty of customer choice. If you wanted a

:59:21.:59:29.

Green energy tariff, that would be fine. If you do not want an ink

:59:30.:59:35.

deal, no problem. I am delighted to confirm that this idea for a

:59:36.:59:38.

relative cap is supported by three of the largest challenger brands.

:59:39.:59:44.

They cover hundreds of thousands of customers between them and I hope to

:59:45.:59:47.

persuade others to join them in due course. Crucially, a relative cap is

:59:48.:59:56.

rather better, a lot better, than a normal price cap. The relative cap

:59:57.:00:02.

means each energy firm can still adjust their prices when the

:00:03.:00:06.

wholesale price goes up or down, but a normal one means Ofgem has to

:00:07.:00:11.

approve any changes which will be slower and create work for lawyers

:00:12.:00:16.

and lobbyists. A relative cap also means energy firms still have plenty

:00:17.:00:21.

of incentives to innovate, finding new ways to please groups of

:00:22.:00:25.

customers in whatever way they want without needing Ofgem's approval

:00:26.:00:26.

first. Putting customers in the drivers

:00:27.:00:40.

seat means fewer fat fees and lunches for the lobbyists. If

:00:41.:00:46.

customers can switch their supply as easy as changing their cornflakes,

:00:47.:00:53.

the customer and the regulators will matter a lot less than we did in

:00:54.:00:57.

this area. A relative cap means we can deregulate, striking out reams

:00:58.:01:04.

of other regulations, red tape and other issues that complicate the

:01:05.:01:10.

market stopping energy firms from thinking about their customers first

:01:11.:01:19.

and thinking about their lawyers and compliance directors instead. A

:01:20.:01:23.

relative cap reduces red tape rather than adding to it. The people who

:01:24.:01:28.

will hate the relative cap the most will be the big six. It will force

:01:29.:01:34.

them to treat consumers fairly and reward loyalty rather than exploit

:01:35.:01:39.

it. To find it hard to keep long-standing customers rather than

:01:40.:01:42.

to take it for granted. In other words, to be a normal business

:01:43.:02:00.

thinking about the customer first. The secretary of State and Prime

:02:01.:02:03.

Minister have been trenchant of their criticisms of how the sector

:02:04.:02:07.

is not delivering an economy that works for everyone. So I hope they

:02:08.:02:10.

will accept the thrust of this motion that the time for action has

:02:11.:02:16.

come. We simply cannot argue, as others have tried to do, that even

:02:17.:02:21.

though two thirds of the country are being ripped off, we aren't going to

:02:22.:02:25.

help protect those victims because it is their own silly fault if they

:02:26.:02:30.

are not savvy enough to switch. Yes, we need to make switching easier and

:02:31.:02:42.

safer so that most of us do it most of the time, that's clearly the

:02:43.:02:44.

right long-term answer. Until that glorious day, I hope this does will

:02:45.:02:47.

accept that we cannot sit back and allow consumers to be harmed on this

:02:48.:02:51.

scale for this long and nothing. We need to do more. The question is as

:02:52.:03:00.

on the order paper. Point of order, Alex Salmond. We raised the point

:03:01.:03:09.

about a prime ministerial statement on the Scottish contest you

:03:10.:03:14.

shouldn't that was -- on the Scottish constitution. That

:03:15.:03:23.

statement has been made as interpreted as being to bounce a

:03:24.:03:30.

vote next Tuesday. The Prime Minister seems to be dictating the

:03:31.:03:34.

timing of any referendum. These points were put to the pro Minister

:03:35.:03:37.

at Prime Minister's Question Time yesterday and she had full and fair

:03:38.:03:42.

opportunity to give her answer. You understand that the act of

:03:43.:03:48.

Parliamentary accountability is if that there is a change of policy,

:03:49.:03:53.

members of Parliament can prepare to ask questions about it. Questions

:03:54.:03:58.

like what if the Scottish parliament is not bounced and votes for a

:03:59.:04:07.

referendum next week. Fundamentally, the arrogance that says to the

:04:08.:04:10.

people in Scotland that they shall not have the right to have an act of

:04:11.:04:17.

self determination, or say to the parliament that we do not have a

:04:18.:04:22.

right of examination. Have you had a request from the Prime Minister to

:04:23.:04:28.

come to this dispatch box and, for Parliamentary accountability or does

:04:29.:04:32.

she feel that Scotland is some sort of county rather than the country

:04:33.:04:38.

that it is. I will thank the honourable gentleman for that

:04:39.:04:44.

contribution. I was not here when he made his previous point of order and

:04:45.:04:50.

the speaker made his response to the honourable gentleman. I have not

:04:51.:04:55.

seen or heard any statements from the Prime Minister but he has now

:04:56.:04:58.

put all of his questions and concerns on the record and we now

:04:59.:05:05.

move on to Ian Wright. Thank you very much. Can I congratulate the

:05:06.:05:13.

honourable gentleman, the member for Weston-Super-Mare. An honour to

:05:14.:05:17.

follow his speech. He is passionate and knowledgeable and very measured

:05:18.:05:20.

about some of the things with regard to the energy market, so I pay

:05:21.:05:29.

tribute that he and his colleagues have been able to secure this

:05:30.:05:35.

important debate. It affects all of our constituents, millions of people

:05:36.:05:41.

up and down the country. I thank the backbench business committee for

:05:42.:05:45.

agreeing it take place. It's very clear that the energy park it is not

:05:46.:05:50.

a market which is working in the best interests of customers. That is

:05:51.:05:56.

not to say that there is somehow some degree of collusion between the

:05:57.:06:03.

energy companies. Far from it. There are quite different price strategies

:06:04.:06:06.

between the major energy companies to the point that there is a

:06:07.:06:11.

difference of about ?140 for dual fuel customers between the major

:06:12.:06:15.

suppliers. As the honourable gentleman said, there have been

:06:16.:06:21.

welcome new entries into the energy market, disrupting in a positive way

:06:22.:06:26.

the energy oligopoly we have seen for far too long. Bringing in

:06:27.:06:30.

innovative companies offering better choice, services and value to the

:06:31.:06:35.

customer. Ten years ago, the big six customers dominated the entire

:06:36.:06:41.

market. 100% market share. Last year, that move to 85%. Good,

:06:42.:06:47.

positive news. New entrants are taking market share and offering

:06:48.:06:53.

competitive fixed term deals. I said earlier, there is no evidence of

:06:54.:06:57.

collusion between the energy companies but there are marked

:06:58.:07:00.

similarities between their business models and they do not act in the

:07:01.:07:05.

best interests of their customers. They actually punish customer

:07:06.:07:10.

loyalty. Their business models are predicated on a sizeable proportion,

:07:11.:07:13.

if not the majority of their customer base will be and will

:07:14.:07:18.

continue to be indefinitely on the standard variable tariffs. Of the

:07:19.:07:22.

big six companies, British Gas have 74% of its customers on its STB, the

:07:23.:07:36.

others have similar or greater proportions. -- SVT. These are in

:07:37.:07:46.

the main the most expensive of all the tariffs are available. Yet, half

:07:47.:07:53.

or more of all customers have been with the same supplier for five

:07:54.:07:58.

years or more. It's almost guaranteed that those households

:07:59.:08:03.

will be overpaying for their energy. The CMA estimated that the lack of

:08:04.:08:07.

competition in the market means that customers are overpaying for their

:08:08.:08:13.

energy to the collective Choon of about ?1.4 billion. Despite all of

:08:14.:08:16.

that, despite the very clear evidence that the market is not

:08:17.:08:25.

working in the marketplace, energy companies continue to penalised

:08:26.:08:29.

loyalty. The more you are with a company, the more you are likely to

:08:30.:08:33.

pay. Which of the market could possibly state that? Now, Ofgem

:08:34.:08:45.

stated categorically that they did not see a case for a significant

:08:46.:08:53.

rise. Wholesale costs have risen by about 15% in the past year, however,

:08:54.:08:58.

the overall cost of energy was marginally below what it was three

:08:59.:09:10.

years ago. The big six and Veolia behave in a culture of entitlement.

:09:11.:09:15.

We need to address that culture. These companies need to address that

:09:16.:09:21.

culture. I think the honourable gentleman is absolutely right. A

:09:22.:09:25.

market has to be dynamic and companies should be nervous of

:09:26.:09:28.

customers moving away. They are not doing that at the moment. Their

:09:29.:09:33.

business models are predicated on the fact that people for a variety

:09:34.:09:38.

of reasons stay on the expensive tariff, not moving, and because of

:09:39.:09:43.

that they can provide loss leading deals for new customers but, in

:09:44.:09:47.

terms of customer loyalty, they simply scoff at that. That is not a

:09:48.:09:53.

market that is working in anybody's interest. It's not dynamic,

:09:54.:09:58.

efficient, or effective and it is ultimately not benefiting our

:09:59.:10:06.

customers. It is the way these companies treat their regulators and

:10:07.:10:14.

this place and there will elect a representatives. -- and their

:10:15.:10:24.

elected representatives. It is about the teeth that we provide in

:10:25.:10:30.

regulation to provide a dynamic market. Wholesale costs of energy

:10:31.:10:35.

are big part of an energy bill that ultimately goes to the customer.

:10:36.:10:41.

But, as I said, the actual cost of energy is marginally below what it

:10:42.:10:45.

was three years ago. Companies hedge their risks when it comes to

:10:46.:10:49.

purchasing energy and that should flatten price spikes they experience

:10:50.:10:53.

when they are buying on the global market. That might mean that we tell

:10:54.:10:59.

prices to customers might not fall as quickly and sharply when

:11:00.:11:05.

wholesale fall but it should stop price hikes when wholesale prices

:11:06.:11:10.

rise. We have seen no evidence of that whatsoever. In announcing the

:11:11.:11:15.

big price rise, the biggest for many years, last month, Npower stated, I

:11:16.:11:21.

quote from their website "Over the past few years the cost of supplying

:11:22.:11:25.

energy to your home has increased, as has the amount we need to pay to

:11:26.:11:30.

government schemes." Allow me to defend the government here. Quite

:11:31.:11:38.

robustly. I think that phrase, from Npower and other companies, about

:11:39.:11:42.

the cost of government schemes, is simply wrong. The Committee on

:11:43.:11:48.

Climate Change have published its analysis on energy prices and

:11:49.:11:52.

household costs and it shows that 9% of the average dual fuel bill for

:11:53.:11:57.

domestic customers is made up of moving towards a low carbon

:11:58.:12:01.

electricity supply and support for energy efficiency home improvements.

:12:02.:12:06.

The notion that energy companies can justify price increases on

:12:07.:12:10.

government action and policies is simply disingenuous. My honourable

:12:11.:12:15.

friend is making an important port and it's worth reading that report

:12:16.:12:20.

from the Committee on Climate Change. Would he also accept that

:12:21.:12:26.

part of that 9% is to help people reduce their bills by the

:12:27.:12:29.

introduction of energy efficient measures to help some of the poorest

:12:30.:12:35.

in our communities to keep their bills down. So it is a worthwhile 9%

:12:36.:12:46.

investment. Absolutely. As well as tackling things like fuel poverty

:12:47.:12:49.

and the carbonisation targets it means that energy efficiency

:12:50.:12:57.

measures are a key plank of that. Everybody wins when energy

:12:58.:13:01.

efficiency is prioritised. Very grateful to my honourable friend who

:13:02.:13:06.

is making a very good case. Would he agree with me that energy efficiency

:13:07.:13:11.

measures when introduced, for example in tower blocks, or

:13:12.:13:15.

sometimes in low-rise properties, can become Piketty to use and if not

:13:16.:13:20.

used properly can be more expensive to the consumer? Would he agree that

:13:21.:13:27.

there is a powerful case, I had two examples in my constituency over the

:13:28.:13:31.

last few years, where people have ended up paying more for a lower

:13:32.:13:35.

standard of heating. Is there a case for the government to issue guidance

:13:36.:13:40.

to local authorities and registered social landlords about how to

:13:41.:13:45.

install these systems and how to inform tenants about how they are

:13:46.:13:50.

supposed to be used. My honourable friend has made a very powerful

:13:51.:13:55.

point. I was in the chamber when he made an earlier intervention about

:13:56.:13:59.

switching supplies and how people in tower blocks are often unable to do

:14:00.:14:02.

that. It is another vivid illustration that the market is not

:14:03.:14:09.

working in the interests of consumers. Often those could be

:14:10.:14:12.

low-wage, vulnerable households. It's a case that the government and

:14:13.:14:19.

the regulator need to put steps in place in order to make sure that

:14:20.:14:28.

this market works. Now, Ofgen told us that companies largely hadn't be

:14:29.:14:35.

successful in controlling costs. Efficient companies have been able

:14:36.:14:40.

to absorb the cost increases and have passed on those benefits to

:14:41.:14:46.

consumers in eliminating the risks of rising graces. Others have not

:14:47.:14:51.

done so. They feel that they don't have too consider customers because

:14:52.:14:54.

customers will not switch and will continue to stay on the most

:14:55.:14:58.

expensive tariffs. Customers are literally paying the price for the

:14:59.:15:03.

failure of energy companies to manage their businesses and control

:15:04.:15:04.

costs. I said it not just being about cost.

:15:05.:15:14.

This is about customer service and a lack of trust in energy companies.

:15:15.:15:21.

There are huge examples. Every honourable member has cases in their

:15:22.:15:26.

inbox with regards to this. Citizens Advice Bureau told us the companies

:15:27.:15:32.

are getting the basics wrong. Late bills, missing bills, inaccurate

:15:33.:15:36.

bills and failing to provide customers with redress when

:15:37.:15:39.

companies have got things wrong. This is a market that is not

:15:40.:15:45.

working. What is the solution? The current policy response seems to be

:15:46.:15:49.

a jewel approach, which is to encourage companies to engage with

:15:50.:15:53.

the customers in a more efficient way and to communicate widely the

:15:54.:15:58.

benefits that come from switching. Switching should be encouraged and

:15:59.:16:02.

customers could make savings of hundreds of pounds if they switch.

:16:03.:16:07.

On the back of recent price rises from energy companies are switched

:16:08.:16:14.

for our house and we saved ?249. There are big savings to be made and

:16:15.:16:19.

I would encourage customers to switch, switch and switch again. It

:16:20.:16:25.

has to be encouraged. As the honourable gentleman for

:16:26.:16:28.

Weston-Super-Mare did say, a small proportion do switch and base which

:16:29.:16:33.

often. These are savvy customers who know the market and want to get the

:16:34.:16:37.

best possible deal, but that is relatively rare. The vast majority

:16:38.:16:43.

do not switch and that is for a wide variety of reasons, whether it is

:16:44.:16:49.

thinking can I switch? Am I not still with the local electricity

:16:50.:16:59.

board? Will it be too complex? I am frightened of switching. People lead

:17:00.:17:06.

busy lives. In terms of a central utility like this people do not

:17:07.:17:11.

consider it. I do not think it is efficient to say the energy market

:17:12.:17:17.

will be fixed by encouraging more engagement. There needs to be a fair

:17:18.:17:21.

deal for all customers, those two thirds who do not switch, not just

:17:22.:17:25.

those who do. The government often talks a good game when it comes to

:17:26.:17:31.

tackling the energy crisis. When it was revealed in the autumn energy

:17:32.:17:36.

companies were making high profits, the Secretary of State hold them in

:17:37.:17:39.

for an explanation, but nothing materialised. When NPower raised

:17:40.:17:46.

their prices last month, a spokesman said we are concerned by these

:17:47.:17:49.

planned increases and are committed to get the best for ourselves.

:17:50.:17:54.

Suppliers have been protected in wholesale energy prices which I said

:17:55.:18:00.

two years in advance. We expect them to treat customers fairly. Where

:18:01.:18:04.

markets are not working, we are prepared to act. This week in answer

:18:05.:18:15.

to a question from me the secretary of state said time is up, but no

:18:16.:18:20.

action has been taken. Customers will have to endure in the next

:18:21.:18:25.

days, weeks and months high-priced rises with no action taken

:18:26.:18:29.

whatsoever. The regulator says the price rises are not justified.

:18:30.:18:35.

Number ten says they are concerned. The department has had energy

:18:36.:18:39.

companies hold in, but nothing has been done. This does not seem to

:18:40.:18:43.

reflect the urgency that should be given to this issue. The key point I

:18:44.:18:49.

would like to say is for the minister when he responds, how is

:18:50.:18:53.

the government going to act and act now to ensure customers get a better

:18:54.:18:59.

deal? The honourable gentleman for Weston-Super-Mare has an important

:19:00.:19:03.

policy response suggestion when it comes to a restricted price cap.

:19:04.:19:09.

This could be an important means of providing customers with some

:19:10.:19:13.

respite. He mentioned a number of energy companies that have put

:19:14.:19:17.

forward this idea. Some of the quotes from the people who run these

:19:18.:19:22.

energy companies are quite striking. Stephen Fitzpatrick, Chief Executive

:19:23.:19:29.

of Ovo said the energy market was failing because companies were,

:19:30.:19:33.

quote, free to charge whatever they think they can get away with at the

:19:34.:19:38.

expense of disengaged or confused customers. The time has come for the

:19:39.:19:43.

government to step in and take bold action to protect consumers'

:19:44.:19:49.

interests. Greg Jackson, chief executive of Octopus Energy. Energy

:19:50.:19:53.

customers are being robbed in broad daylight, he says. Robbed in broad

:19:54.:20:00.

daylight. It is time for decisive action to end the misery for

:20:01.:20:04.

millions. Will the government look favourably upon the general idea of

:20:05.:20:13.

a price cap. At that time of crippling price rises from companies

:20:14.:20:18.

seemingly indifferent to the plight of customers there needs to be a

:20:19.:20:21.

fundamental change to ensure that the market works for all. In his

:20:22.:20:27.

response the minister must set out the detailed steps he will take both

:20:28.:20:30.

immediately and in the longer term to act in the interests of customers

:20:31.:20:36.

and set out a timetable. The time for strong words, for green papers,

:20:37.:20:44.

for future legislation, is over. If the regulators say there is no

:20:45.:20:47.

justification for price increases and the Prime Minister is saying

:20:48.:20:53.

action needs to happen, why can't we have action now? Customers are

:20:54.:20:58.

facing price rises now. We do not have to wait for a green paper in

:20:59.:21:03.

the months to come, we need to act immediately. What is the government

:21:04.:21:10.

going to do now? I want to congratulate the member from

:21:11.:21:15.

Weston-Super-Mare for this debate today and the backbench business

:21:16.:21:18.

committee and Mike honourable friend from Don Valley. I also want to pick

:21:19.:21:25.

up where my honourable friend from Hartlepool left of and that is in

:21:26.:21:35.

regards to the government. The party opposite has changed their leader

:21:36.:21:38.

and in the process they seem to have changed some of their policies and

:21:39.:21:43.

thought we would not notice. To be honest it is not good enough. Many

:21:44.:21:48.

members had campaigned very hard on this issue of energy and the pricing

:21:49.:21:58.

of energy, however the former Prime Minister David Cameron said his

:21:59.:22:03.

government would legislate to ensure customers receive the lowest

:22:04.:22:07.

possible tariffs. That was the words of the Prime Minister. The current

:22:08.:22:12.

Prime Minister, Theresa May, has refused to honour that pledge. I do

:22:13.:22:18.

not understand why. Even after standing on the steps of number ten

:22:19.:22:22.

she promised to look after vulnerable people which must include

:22:23.:22:26.

those people who suffer from fuel poverty, older people, people with

:22:27.:22:32.

English as a second language, those who cannot switch easily, these are

:22:33.:22:34.

vulnerable people who are not being vulnerable people who are not being

:22:35.:22:38.

protected by this government. It is proving to be all talk from the

:22:39.:22:42.

government which is a real shame on this important issue. The government

:22:43.:22:48.

must stop and must act to stop the jump in energy prices or they could

:22:49.:22:53.

adopt one of Labour's policies, again they are used to adopting our

:22:54.:22:59.

policies, and renationalise the energy companies, or they could

:23:00.:23:04.

listen to the Mayor of London. He has innovative ideas in regards to

:23:05.:23:07.

providing energy to people in London. At the end of the day the

:23:08.:23:13.

price hike is a bitter blow to millions of families. It will add

:23:14.:23:19.

more than ?100 to the typical bill. When people are struggling to make

:23:20.:23:24.

ends meet this is not good enough. This is one of the largest ever

:23:25.:23:28.

increases we have seen and it is unacceptable. Fuel poverty awareness

:23:29.:23:34.

day, quite recently, brought home the reality of the situation of fuel

:23:35.:23:39.

poverty across the country. Families were faced with an agonising

:23:40.:23:44.

decision on whether to heat or eat. We have seen a rise in food banks as

:23:45.:23:52.

a result. Last year we had the first ever fuel bank based in my

:23:53.:23:57.

constituency. It was to help residents especially on prepayment

:23:58.:24:01.

meters get through the winter and get through difficult times. How the

:24:02.:24:08.

food banks came to this conclusion that it was necessary was they found

:24:09.:24:13.

people were approaching them and asking for only food intends, food

:24:14.:24:16.

that could be eaten cold because when they were given food that

:24:17.:24:21.

needed to be cooked they did not have the money on their meter to do

:24:22.:24:26.

that. Lots were surviving on baked beans for instance. You think more

:24:27.:24:33.

should and must be done. I have been campaigning on energy prices for

:24:34.:24:37.

many years now, my constituents have struggled with energy bills. More

:24:38.:24:43.

and more people came to my surgery problems and hardest-hit would those

:24:44.:24:52.

on prepayment meters. The House of commons library figures show they

:24:53.:24:56.

pay 15% more on their gas bill and direct debit customers. I launched a

:24:57.:25:03.

campaign which lots of members participated in across all sides of

:25:04.:25:08.

the House I must say. I called on the government to ensure that their

:25:09.:25:12.

tariffs were made for all and following this campaign the

:25:13.:25:16.

competition 's markets authority recommended a cap on prepayment

:25:17.:25:20.

meters must be implemented. This was a significant victory and I was

:25:21.:25:24.

really pleased because it will reduce the cost of prepayment

:25:25.:25:32.

customers, but not by enough, only about ?80. The price penalty on

:25:33.:25:38.

prepayment customers can be as much as ?320, so there is still a lot

:25:39.:25:43.

more that needs to be done. One in five families are being hit by the

:25:44.:25:48.

prepayment penalties and they are often do just about managing

:25:49.:25:52.

families. These are the people that the Prime Minister often talks

:25:53.:25:58.

about, that very same people that the party opposite's PR machine goes

:25:59.:26:06.

into overdrive, saying they are the party that represents these people.

:26:07.:26:09.

If they are, surely they would do something about this? This lack of

:26:10.:26:16.

being able to heat homes means that people live in damp homes and it is

:26:17.:26:21.

reckoned cold related ill-health costs the NHS around ?1.36 billion

:26:22.:26:30.

each year. If we want to help the National Health Service, if we want

:26:31.:26:33.

to help just about managing families, this is one step that can

:26:34.:26:38.

be done and can be done very quickly if there is a will on the opposite

:26:39.:26:44.

benches to do that. Fuel poverty is a massive problem. It affects over 4

:26:45.:26:51.

million UK households and in my constituency one in eight households

:26:52.:26:56.

are classified as fuel poor, higher than the national average of one in

:26:57.:27:02.

ten. The Labour Party will continue to work towards ending fuel poverty

:27:03.:27:06.

and when in government we will put energy efficiency back on the

:27:07.:27:09.

agenda. Struggling families need more than warm words from this

:27:10.:27:19.

government, they need warm homes. Thank you very much, Mr Deputy

:27:20.:27:23.

Speaker. It is a pleasure to follow my honourable friend from Brent

:27:24.:27:27.

Central. Can I congratulate her on the work she has done serving those

:27:28.:27:35.

families overreliant on meters? Also listening to her contribution,

:27:36.:27:40.

whilst I have a number of people living in the private rented sector

:27:41.:27:45.

in my constituency, I am sure it is far higher in her constituency and

:27:46.:27:49.

it is a big problem for tenants were landlords are not doing enough to

:27:50.:27:56.

make sure where their homes are rented out are not decent homes with

:27:57.:28:00.

proper energy-efficient measures in them. I know she will continue

:28:01.:28:06.

campaigning on that work. I would like to thank the responders to this

:28:07.:28:15.

debate. We helped to secure the support of some 50 other honourable

:28:16.:28:20.

and right honourable members to attend this important debate. My

:28:21.:28:26.

thanks to the backbench business committee, Parliament was my own

:28:27.:28:33.

Dragons Then. It was only 45 minutes before going in that I realised it

:28:34.:28:39.

was going to be broadcast. We were successful to secure this debate for

:28:40.:28:43.

today. It is well known to family and friends that I love the movies.

:28:44.:28:52.

Thank you. It is still on my bucket list to be an extra in one. I am

:28:53.:28:56.

putting back out there today. Thank you. One of my favourite comedy is

:28:57.:29:06.

Groundhog Day will stop the character has to play a single day

:29:07.:29:19.

all the time. We are replaying the energy issue again today. They are

:29:20.:29:24.

points I have been making for the past six years. The ministers keep

:29:25.:29:29.

changing but I am still here and I hope today the minister, like Bill

:29:30.:29:34.

Murray in the film, will break this spell. Not for the first time

:29:35.:29:41.

headlines have been filled as honourable members have mentioned

:29:42.:29:50.

already with price hikes, hikes that I believe are completely

:29:51.:29:54.

unjustified. But that is not the principal reason for this debate.

:29:55.:29:59.

The reason we sort this debate is to address the fact that energy market

:30:00.:30:04.

is not working. It is failing Britain's consumers in almost every

:30:05.:30:09.

respect. The energy market does not promote effective competition. The

:30:10.:30:13.

regional giants remained the dominant players in their home

:30:14.:30:15.

region is some 30 years later. We talk about the big six but for

:30:16.:30:28.

many regions it is the big one. The energy market does not promote

:30:29.:30:40.

transparency. In 1986, and 1989 there were a succession of mergers

:30:41.:30:45.

and takeovers. This led to the companies being both conservatives

:30:46.:30:52.

and generators of power. So we are left with pretty much the same

:30:53.:30:57.

corporate structures. One consequence is a lack of

:30:58.:31:00.

transparency over the price these companies sell energy to themselves

:31:01.:31:06.

before retailing to the problem. That is something that Labour's

:31:07.:31:11.

reforms advanced in 2015 would have resolved. The market does not

:31:12.:31:18.

promote consumer confidence. The issue is not whether superficially a

:31:19.:31:22.

company offers a fixed-price deal for ?150 less than another, the

:31:23.:31:29.

issue is why 88% of customers refuse to switch from one supplier to

:31:30.:31:37.

another. When a survey was done on 7000 consumers, 56% had never

:31:38.:31:46.

switched supplier or did not recall switching and 72% had never switched

:31:47.:31:53.

tariff with an existing supplier. This is a long-standing crisis of

:31:54.:31:56.

consumer confidence. The vast majority seem to want little or

:31:57.:32:02.

nothing to do with the energy companies. This is not a sign of

:32:03.:32:08.

millions of satisfied customers. Quite the opposite. The CMA have

:32:09.:32:12.

found that the amount of comp points rolled sixfold from 2008-14. The

:32:13.:32:24.

proportion of domestic complainant who were very dissatisfied with how

:32:25.:32:29.

their complaint was handled significantly increased over a

:32:30.:32:36.

two-year period. Npower 67% of very dissatisfied. ScottishPower 64%.

:32:37.:32:41.

Even the medium and small companies were not immune. We cannot let them

:32:42.:32:50.

off the hook. First utility firms worst, 63% dissatisfied. So, the

:32:51.:32:54.

government presides over a domestic energy market that is not

:32:55.:32:59.

competitive, lacks transparency and has a lot of dissatisfied consumers.

:33:00.:33:03.

Those factors alone should ring alarm bells in Whitehall and

:33:04.:33:08.

Westminster. It is the outcome for consumers that ensures that the

:33:09.:33:14.

government must act. The outcome of all the secrecy, the dominance by a

:33:15.:33:19.

few uncompetitive companies and disillusioned, and trusting customer

:33:20.:33:23.

base, largely disengaged, all leads to one certain outcome. A consistent

:33:24.:33:27.

failure of the market to offer fair prices. It should be no surprise to

:33:28.:33:35.

any others regional monopolies, both secret and inefficient, low customer

:33:36.:33:39.

engagement and unresponsive pricing, that is why this debate is so

:33:40.:33:44.

important today. I said this market does not offer fair prices. Let me

:33:45.:33:53.

illustrate this central criticism. First, the big six energy giants

:33:54.:33:57.

account for 85% of the market and treat their long-standing customers

:33:58.:34:03.

worse, those customers without exception will be paying for energy

:34:04.:34:08.

on the most expensive default tariff. The only group treated worse

:34:09.:34:15.

are the customers with a prepayment meeting either because the landlord

:34:16.:34:19.

requires it or they have a poor credit history. This group has risen

:34:20.:34:24.

to 16% of all households. Even the CMA could not ignore that... As well

:34:25.:34:33.

as paying in advance for their energy. I am looking to provide a

:34:34.:34:43.

cap on the charge for these customers. That does not count those

:34:44.:34:48.

customers who are overcharged year after year. Even the CMA could not

:34:49.:34:56.

fully explain the overcharging. Their best estimate was that between

:34:57.:35:02.

2012-15 the average amount overcharged was something like ?1.5

:35:03.:35:07.

billion per year, reaching almost 2 billion by 2050.

:35:08.:35:21.

This is before any of the current price hikes came into effect. They

:35:22.:35:31.

concluded that in any one year, the detriment, the amount overcharged,

:35:32.:35:39.

was made up of about ?600 million, a year, in excess profits and the

:35:40.:35:45.

remainder, about ?850 million, was down to inefficiencies. Whatever

:35:46.:35:50.

they may be. What it points to is bad management by some very highly

:35:51.:35:59.

paid individuals. The honourable lady is making a very compelling

:36:00.:36:04.

case. She also did in the Dragons Den pitch for this debate with me.

:36:05.:36:10.

She's absolutely right about the CMA figures showing such horrendous

:36:11.:36:14.

levels of customer detriment. Not only is it that bad but the gap

:36:15.:36:19.

between what the standard variable tariff price charged and the

:36:20.:36:23.

wholesale price charged has been getting wider over the last four

:36:24.:36:28.

years at so it's a bad and getting worse as time goes by. Exactly. We

:36:29.:36:33.

have the historical evidence and month by month people are still

:36:34.:36:39.

paying far too much for their energy bills. It is astonishing that this

:36:40.:36:43.

is happening in what is meant to be a competitive market. It's clear

:36:44.:36:47.

that the excessive profit margin made from standard variable tariff

:36:48.:36:51.

customers provides no encouragement to move these customers to a better

:36:52.:36:55.

deal. I believe it's a bankrupt business model. Because if were all

:36:56.:37:01.

admitting and even the energy companies have to face up to this

:37:02.:37:05.

that they are paying over the odds, they have a model based on that. If,

:37:06.:37:11.

for example, all these customers miraculously moved to a lower tariff

:37:12.:37:15.

tomorrow, where would these companies the left? The inertia is

:37:16.:37:21.

compounded by a management approach that doesn't seem to want any form

:37:22.:37:28.

of effective change. The more government has publicly urged

:37:29.:37:33.

consumers to switch to save the mother companies are absolved of any

:37:34.:37:37.

responsibility to move customers to a better deal. A sticky, passive,

:37:38.:37:43.

unengaged customer base suits these firms down to the ground. When EDF

:37:44.:37:49.

automatically back in 2012 moved vulnerable elderly customers onto

:37:50.:37:53.

their cheapest tariff, sadly, other suppliers did not follow up with

:37:54.:37:59.

what I think was some evidence of ability to inform themselves of

:38:00.:38:03.

better practice. This CMA's final report concluded that to eliminate

:38:04.:38:08.

the overcharging, prices would have to fall across the board by an

:38:09.:38:13.

average of 3% per year between now and 2020. It hoped that measures to

:38:14.:38:19.

promote switching would create more competition in the market and have a

:38:20.:38:23.

downward effect on prices but they were reluctant to say how successful

:38:24.:38:27.

they expected that to be because the problem that the CMA faces is that

:38:28.:38:34.

the UK has an energy market with unhappy consumers, a dysfunctional

:38:35.:38:38.

pricing mechanism and companies that are largely immune to competitive

:38:39.:38:49.

pressures. Ofgem reported that the highest level of switching for six

:38:50.:38:54.

years has occurred but it is still less than 12% of households and I

:38:55.:38:59.

worry that we have a two tier energy market. On the one hand, an active,

:39:00.:39:06.

informed class of consumer energy conscious, Internet savvy, shopping

:39:07.:39:10.

around, managing their account online and a far bigger, less

:39:11.:39:15.

informed, less engaged, less Internet savvy discontented

:39:16.:39:22.

majority. She is second to none in her knowledge of energy policy. I'd

:39:23.:39:30.

be interested to get her thoughts in terms of policy fixes. Does she

:39:31.:39:34.

think the regulator has powers but not use them all as the regulator

:39:35.:39:40.

need more powers to help fix this broken market? I know that there are

:39:41.:39:46.

powers the regulator has in its back pocket. It can intervene if it

:39:47.:39:52.

thinks the market is uncompetitive, it can actually, if necessary, from

:39:53.:39:59.

what I understand, actually take, if you like, customers from a company

:40:00.:40:04.

that is failing and hold them up to get a better deal elsewhere. That is

:40:05.:40:09.

within their powers already but I think we need government to take

:40:10.:40:12.

responsibility and part of the debate today is to look at whether

:40:13.:40:18.

it is the relative price cap, or what I would suggest, as well,

:40:19.:40:23.

similar to it, a protective tariff for these people, if not permanent,

:40:24.:40:29.

temporary to fix this market. Let's be clear, more reform is needed in

:40:30.:40:33.

this market and the regulator while I wish it would use its powers and

:40:34.:40:37.

was very slow to do this, it's beaded up in recent years, there's

:40:38.:40:42.

more they could do but there's more government could provide them with

:40:43.:40:47.

to do a better job. We have heard that one of the CMA proposals is

:40:48.:40:52.

that data on customers should be shared so that other energy

:40:53.:40:56.

suppliers can send their offers to customers. The problem is, people

:40:57.:41:02.

would be bombarded with leaflets, e-mails, from operators in a sector

:41:03.:41:08.

where trust is so low, will they trust this marketing any more than

:41:09.:41:13.

they do already. It is the very people immune to direct mail,

:41:14.:41:18.

annoyed by calls from would-be suppliers, and mistrustful of the

:41:19.:41:21.

whole industry who are not being held by any of the measures put

:41:22.:41:27.

forward since the CMA report. By encouraging switching and a shared

:41:28.:41:31.

database for companies to market new tariffs to each other's customers,

:41:32.:41:35.

the CMA believed that price competition can be made to work but

:41:36.:41:39.

I'm afraid the shared database seems to be a new label for an old

:41:40.:41:43.

solution. We've had six years of trying to be of consumer benefit by

:41:44.:41:49.

switching, six years of abject failure. I have to say to the

:41:50.:41:53.

Minister, is it really realistic to assume that for 28 million

:41:54.:41:57.

households, they will be able to reduce their average bills by 3% a

:41:58.:42:03.

year, as the CMA have indicated, for every year between 7017 and 2020. --

:42:04.:42:15.

2017. Even if it eliminated the detriment it would not repaid 1p of

:42:16.:42:20.

the money already taken from consumers. I see no mechanism in the

:42:21.:42:26.

CMA's prescription that could achieve the objective they have set.

:42:27.:42:30.

Customers who have remained on a standard default tariff for other

:42:31.:42:36.

companies to prey on will not in itself make this market more

:42:37.:42:41.

competitive. In March, Ofgen publish that the cheapest available tariffs

:42:42.:42:52.

was 22% cheaper than the average, but it does not identify how long

:42:53.:42:58.

that tariff lasts. What if it wasn't widely available, what if everybody

:42:59.:43:02.

switched to the new best value tariff? What if 12% of customers get

:43:03.:43:11.

a saving of 20% on their bills. That might notionally cut average bills

:43:12.:43:18.

by 2%. But it would not reduce the detriment by 1p for the 88% of those

:43:19.:43:22.

who don't switch. The penalty incurred by the vast majority would

:43:23.:43:29.

remain. Also among the CMA's recommendations, price comparison

:43:30.:43:31.

websites will no longer have two display every deal available on the

:43:32.:43:37.

market. Those websites might only display those companies that give a

:43:38.:43:43.

commission. The majority will see no gain. The vast majority pay the

:43:44.:43:49.

default standard variable tariff and enjoy prices going up and down as

:43:50.:43:53.

the energy provider chooses, are left at the mercy of their supplier

:43:54.:43:59.

in the CMA has already identified as consistently overcharging. They

:44:00.:44:05.

cannot rely on wholesale charges to save them because there is no

:44:06.:44:16.

obligation to pass on wholesale price the creases to customers.

:44:17.:44:25.

Wholesale gas prices fell while prices rose. This could only happen

:44:26.:44:31.

in the dysfunctional market. Where can consumers get fairness? The only

:44:32.:44:36.

avenue the majority have is the government. The one agency with the

:44:37.:44:40.

powers to change the game at a stroke. How long will the public

:44:41.:44:48.

have to wait before the government acts as the public champion. In

:44:49.:44:55.

October 2011, the Prime Minister convened an energy summit they were

:44:56.:45:00.

going to write to millions of consumers about switching, it didn't

:45:01.:45:05.

work. In 2013, Mr Cameron tried a different approach, getting rid of

:45:06.:45:12.

all the green rubbish, as was reported. The big six like to

:45:13.:45:24.

disperse prices onto green levels even though it is exerting downward

:45:25.:45:31.

pressure on prices. It's ironic the amount of energy we consume as

:45:32.:45:34.

domestic users has gone down per kilowatt hour but we're paying more.

:45:35.:45:54.

When he said get rid of the green numbers, he did. Mr Cameron always

:45:55.:46:05.

ridiculed Labour's energy price freeze, a proposal to cap prices for

:46:06.:46:08.

20 months whilst the market was reformed. Instead in 2014 he

:46:09.:46:16.

announced a CMA investigation and its final report in June 20 entirely

:46:17.:46:22.

vindicated Labour's concern about unfair energy prices. We now have it

:46:23.:46:28.

on the record from one of the government's regulators. Britain's

:46:29.:46:32.

consumers were ripped off year after year for four years, that we know.

:46:33.:46:38.

It is an ?8 billion scandal and every month that financial

:46:39.:46:47.

punishment on customers grows. What do we want? My plea to the

:46:48.:46:52.

government is simple, recognise the scale of the problem. Recognise that

:46:53.:46:59.

what has now become like a gimmick, switching campaigns can only scratch

:47:00.:47:03.

the surface and will never get to the problem. Recognise that this

:47:04.:47:07.

industry needs reform and until it is reformed, the government needs to

:47:08.:47:11.

produce price protection for consumers. I first argued for this

:47:12.:47:19.

after the general election in 2015. Consumers need a regulated maximum

:47:20.:47:25.

charge that companies can levy and an acceptable level of profit. I do

:47:26.:47:30.

not believe it can be left to the companies to do this. Any voluntary

:47:31.:47:34.

measure is welcome, but it has been too piecemeal. We need the

:47:35.:47:40.

government to act. We know Ofgem is capable of a protective tariff

:47:41.:47:46.

calculation. They have just done it for the 5 million prepayment

:47:47.:47:52.

customers. We still have price regulation in Northern Ireland.

:47:53.:47:55.

Majority of countries in the European Union still have price

:47:56.:47:59.

controls of one sort or another. This is not thwarted by the EU, we

:48:00.:48:05.

cannot blame the EU Brexit for the government's failure to address this

:48:06.:48:10.

injustice. This problem lands at the doorstep of Number ten and the

:48:11.:48:13.

government department which the minister represents today. The

:48:14.:48:17.

government has the power and the means to end the fairness in our

:48:18.:48:22.

energy market, or at least to offer a temporary respite as they have for

:48:23.:48:28.

prepayment customers. In November the Secretary of State said,

:48:29.:48:31.

customers who are loyal to their energy suppliers should be treated

:48:32.:48:36.

well, not taken for a ride, and it is high time the big companies

:48:37.:48:41.

recognised this. I have made clear to the big firms this cannot go on

:48:42.:48:44.

and they must treat customers properly or be made to do so. I say

:48:45.:48:50.

to the Minister, now is the time. This problem will not go away and I

:48:51.:48:54.

urge the government to listen to voices on all sides of this house

:48:55.:48:58.

who believe the current energy market does not receive or serve the

:48:59.:49:04.

British people well. The time to act is overdue. It is a pleasure to

:49:05.:49:10.

follow my right honourable friend, the member for Don Valley, if I feel

:49:11.:49:15.

a little bit daunted to speak after that tour de force. She is second to

:49:16.:49:20.

none in her knowledge of this issue. I would like to congratulate the

:49:21.:49:27.

honourable member for Weston-Super-Mare. It is good to

:49:28.:49:37.

join a cross-party platform in urging the government to do

:49:38.:49:40.

something to stop these companies from ripping their customers off.

:49:41.:49:44.

They have been getting away with it for far too long. The right

:49:45.:49:49.

honourable member for Don Valley has been campaigning for fair energy

:49:50.:49:55.

prices for the past six years. If adopted determination was enough to

:49:56.:49:59.

secure victory, it would have paid off long before now. Despite talking

:50:00.:50:06.

big on energy reform, the government has failed to act. They quietly

:50:07.:50:14.

dropped in a promise in 2012 to force companies to switch customers

:50:15.:50:18.

to their lowest tariff and despite the rhetoric about cutting the green

:50:19.:50:23.

rubbish, failing to ensure reductions it made to environmental

:50:24.:50:28.

and other obligations resulting in lower energy bills. It is true they

:50:29.:50:35.

have cut prices on prepayment meters, but I agree we need action

:50:36.:50:39.

for all standard variable tariff customers. In recent weeks we have

:50:40.:50:47.

seen NPower and SSE raise their prices by 15% and another three of

:50:48.:50:54.

the large companies have increased their bills for jewel energy

:50:55.:51:02.

customers. Wholesale prices only increase from a low base. Many of

:51:03.:51:07.

these rises have been piled onto electricity to ensure that as people

:51:08.:51:11.

start turning their heating bills will remain high over the summer.

:51:12.:51:17.

This is grotesquely unfair that the current structure penalises the most

:51:18.:51:22.

loyal customers and those who are the most vulnerable. Almost ?200

:51:23.:51:26.

difference between a company's cheapest tariff and its standard

:51:27.:51:36.

variable rate, and 15% war for customers on gas only than on other

:51:37.:51:41.

tariffs. The Observer newspaper estimated this is the equivalent to

:51:42.:51:46.

a halfpenny rise on income tax. With 70% of big six customers on standard

:51:47.:51:54.

variable tariff is this means the companies are making record profits.

:51:55.:51:59.

Their profits increased tenfold between 2007 and 2013. Rises are

:52:00.:52:04.

hitting the poorest households particularly hard. Those households

:52:05.:52:10.

are far less likely to switch. Energy bills now account for 10% of

:52:11.:52:15.

spending in the poorest House of Commond compared with 5.5% in 2004.

:52:16.:52:23.

Citizens Advice estimates low income families are ?241 worse off every

:52:24.:52:31.

year. If I can speak about my own constituency and Bristol, we have

:52:32.:52:36.

some of the worst instances of fuel poverty in England. People always

:52:37.:52:40.

think of Bristol as an affluent place, but just because the cities

:52:41.:52:46.

and towns are thriving, it does not mean to say there are not other

:52:47.:52:51.

people who are not living in poverty. In Bristol we have over

:52:52.:52:56.

25,000 people living in fuel poverty, 30% of the city against the

:52:57.:53:01.

national average of 10%. Some neighbourhoods have nearly a

:53:02.:53:10.

quarter, more than 23% of households in fuel poverty, sitting within a

:53:11.:53:15.

mile of ones with only 5%. Food banks are helping people who

:53:16.:53:18.

rationed their energy use to save money. People too often have to

:53:19.:53:26.

choose between heating and eating. To those suffering long-term health

:53:27.:53:33.

conditions the effect of living in a non-heated home can cause suffering

:53:34.:53:38.

and even death. One third of the death last winter I simply estimated

:53:39.:53:44.

to have been caused by cold homes. I was contacted awhile ago by one

:53:45.:53:48.

woman whose husband was extremely ill. They're called home was making

:53:49.:53:53.

his condition words, but was denying them the most basic of conflicts.

:53:54.:53:59.

She said, all we would like is to be worn in our home. I do not think

:54:00.:54:03.

that is too much for anyone to ask in this day and age. Other MPs will

:54:04.:54:11.

have in their localities some of the new breed of municipal energy

:54:12.:54:14.

providers which provide a very different offer from the big six but

:54:15.:54:21.

with fair rates and cleaner energy. Bristol Energy was set up very

:54:22.:54:27.

recently by Bristol City Council. It is a national company, so anyone can

:54:28.:54:32.

switch to it, but there is a special tariff for people with a Bristol

:54:33.:54:37.

postcode. It was set up to help people pay less for their energy and

:54:38.:54:42.

provide a new way to raise funds for the city. All the profits would be

:54:43.:54:47.

reinvested back into the city. Its standard variable tariff is on

:54:48.:54:54.

average ?105 cheaper than the big six. It is currently trialling a

:54:55.:54:58.

warm homes plus tariff to bring households in Bristol out of fuel

:54:59.:55:03.

poverty which would be a nonprofit making fuel tariff, only available

:55:04.:55:07.

by referral. They are working with the Citizens Advice Bureau, the

:55:08.:55:13.

Council, on those proposals and they are looking for a thousand people to

:55:14.:55:19.

start with to put onto this tariff. The profits will be invested back

:55:20.:55:23.

into the city and in the long term we want to be ambitious, tying up

:55:24.:55:29.

with the waste sector. On one visit I had to waste plant on the

:55:30.:55:33.

outskirts of the city they reckoned Bristol's waste alone could generate

:55:34.:55:39.

enough energy to heat 250,000 homes and that has got to be the way

:55:40.:55:45.

forward, a local solution to a local problem. However welcome new

:55:46.:55:48.

entrants are to the energy market, they seem to have had little impact

:55:49.:55:53.

so far in putting pressure on the big six to reduce prices. Despite

:55:54.:55:58.

better practices from some companies wishing people to switch or telling

:55:59.:56:00.

them they have that option is clearly not enough. An independent

:56:01.:56:07.

energy experts said, although I believe in competition and when it

:56:08.:56:12.

works it can result in fairer prices, we have to face the fact

:56:13.:56:16.

that not everyone can and will engage in the market. A spokesperson

:56:17.:56:21.

for the Department for business, energy and industrial strategy set

:56:22.:56:28.

they are ready to react when the market is failing, but it is clear

:56:29.:56:32.

the market is failing for a majority of people, so I am not sure when the

:56:33.:56:36.

department will decide it is time to react. If the case had not been made

:56:37.:56:42.

before today's debate, it is being made very powerfully today that the

:56:43.:56:52.

market is failing. 66% are customers who have never switched supplier,

:56:53.:57:00.

the so-called sticky 66. We need an approach that keeps a full switch in

:57:01.:57:05.

open but ensure the sticky customer does not become disadvantaged by

:57:06.:57:09.

remaining on the standard variable tariff. Much greater transparency as

:57:10.:57:20.

a first step to include a breakdown of costs behind each of the tariffs

:57:21.:57:25.

to include the wholesale energy costs, transition costs and green

:57:26.:57:28.

energy with an improved annual renewal notice along the lines of

:57:29.:57:33.

motor insurance would encourage more switching. I believe we need to go

:57:34.:57:39.

further. We need some kind of price control for those on standard

:57:40.:57:44.

variable tariffs. I would urge the government to pick up on proposals

:57:45.:57:47.

put forward by the right honourable member for Don Valley. If we wait

:57:48.:57:52.

for the green paper on when government should intervene in the

:57:53.:57:57.

markets this spring, then it will be too late to effect energy prices

:57:58.:58:02.

next winter and we will again see people suffering because of having

:58:03.:58:07.

to pay above the odds extortionate energy bills. As the Observer

:58:08.:58:12.

newspaper said, the government must reinstate price regulation until

:58:13.:58:16.

there is convincing evidence of market forces will provide value for

:58:17.:58:21.

consumers, rather than unfairly enriching corporate profits.

:58:22.:58:24.

Consumers have been exploited for too long and it is time now for the

:58:25.:58:31.

government to act. I am delighted to be involved in this debate and I am

:58:32.:58:37.

grateful to the honourable gentleman for Weston-Super-Mare and the right

:58:38.:58:44.

honourable lady for Don Valley. One of the disadvantages of speaking so

:58:45.:58:51.

far down the list, this debate is long overdue and it is a debate

:58:52.:58:56.

about how we can empower consumers as they face the injustice of energy

:58:57.:59:01.

prices. The average annual domestic gas and electricity bills in

:59:02.:59:07.

Scotland have increased by 114% and 15% respectively between 2004 and

:59:08.:59:15.

2015. What consumers pay varies depending on the method of payment,

:59:16.:59:19.

over which the consumer does not always have control. On average

:59:20.:59:25.

electricity and gas consumers in Scotland using standard, credit and

:59:26.:59:30.

prepayment meters face 10% higher bills and those able to use direct

:59:31.:59:35.

debit. The cost of a unit of gas is similar across Scotland and the rest

:59:36.:59:40.

of the British energy market for domestic consumers, however the unit

:59:41.:59:44.

price of electricity differs considerably within Scotland.

:59:45.:59:49.

Consumers in the North pay between eight and 9% more depending on

:59:50.:59:53.

payment type than the average in the rest of Britain. The big six energy

:59:54.:00:00.

companies supply gas and electricity to over 50 million homes with a

:00:01.:00:04.

market share of 85% of UK domestic customers.

:00:05.:00:12.

The hope is that costs can be driven down by increasing competition

:00:13.:00:20.

between suppliers and helping more customers switch to better deals. As

:00:21.:00:26.

we've heard, there is a problem with this, the problem is that the

:00:27.:00:29.

Competition and Markets Authority found that the Basque majority of

:00:30.:00:35.

people don't switch providers and 70% of all big six customers are on

:00:36.:00:41.

the default standard variable tariff which means that 16 million homes

:00:42.:00:44.

are paying more for the energy than they should be. Loyalty is treated

:00:45.:00:52.

as something to be exploited not something to be rewarded. The

:00:53.:00:58.

premium that standard variable tariff consumers pay over those who

:00:59.:01:03.

switch has tended to increase over time. In 2008, less than ?100 each

:01:04.:01:13.

year but by 2015, ?330 and currently at ?230. In all that time, rates of

:01:14.:01:20.

switching are no higher so clearly, as the motion sets out, the way to

:01:21.:01:26.

protect consumers cannot be done simply by encouraging them to switch

:01:27.:01:32.

suppliers. Much more is required. Those most likely to be on standard

:01:33.:01:36.

variable tariffs are more likely to be older, more likely to be

:01:37.:01:42.

disabled, more likely to be on low incomes, more likely to be living in

:01:43.:01:45.

rented accommodation and they are more likely to be consumers without

:01:46.:01:51.

Internet access. Those on standard variable tariffs did not see their

:01:52.:01:56.

bills for by much at all when the cost of providing energy dropped in

:01:57.:02:02.

2014-15. Such savings available were only passed on to the consumers who

:02:03.:02:07.

were active switchers. Not all consumers can engage in the

:02:08.:02:11.

switching process so suppliers need to do more to ensure these customers

:02:12.:02:16.

are not trapped in a deals. The existing market does provide scope

:02:17.:02:23.

for households to save money on energy bills by switching but a low

:02:24.:02:27.

level of consumer engagement in the market still persists. Indeed, the

:02:28.:02:31.

Competition and Markets Authority found that one of the main issues is

:02:32.:02:37.

the lack of engagement in the market on the part of many customers which

:02:38.:02:41.

suppliers are able to explore by charging high prices. 34% of

:02:42.:02:50.

domestic energy customers had never considered switching supplier while

:02:51.:02:52.

many said they didn't know if it were possible or have done so in the

:02:53.:03:01.

past. Switching can currently take up to 21 days and that is a

:03:02.:03:08.

significant period of time during which a consumer who may be thinking

:03:09.:03:13.

about switching may be concerned that something could go wrong during

:03:14.:03:18.

that extended period, for which I don't believe there is sufficient

:03:19.:03:25.

justification. One result is that energy is increasingly unaffordable

:03:26.:03:31.

for customers and between 2004-14 average domestic gas prices rose by

:03:32.:03:38.

around 125% in real terms. Significantly, those consumers who

:03:39.:03:43.

are engaged in the market are typically higher income earners,

:03:44.:03:48.

have access to a mains gas supply and Internet access so that they can

:03:49.:03:54.

much more easily carry out comparison shopping and, of course,

:03:55.:03:58.

they have the ability to pay by direct debit and this is yet more

:03:59.:04:01.

evidence that the way to protect consumers simply cannot be done by

:04:02.:04:06.

encouraging them to switch suppliers. As we heard today, energy

:04:07.:04:14.

efficient measures are of course important and the Scottish

:04:15.:04:17.

Government has done a lot of work on this, driving down fuel poverty,

:04:18.:04:21.

although it remained stubbornly high but ultimately and fundamentally we

:04:22.:04:26.

need effective regulation of the retail energy market and to work

:04:27.:04:31.

collaboratively with energy suppliers to explore ways of

:04:32.:04:39.

lowering energy bills. We need a market that works equally for all

:04:40.:04:44.

consumers regardless of where they are on the income scale.

:04:45.:04:55.

It is currently undergoing a review of the regulation framework but

:04:56.:05:01.

there must be a case for a safeguard tariff, limit on the amount

:05:02.:05:06.

prepayment customers are charged, for that to be expanded to include

:05:07.:05:11.

those consumers on a standard variable tariff eligible for the

:05:12.:05:16.

warm home discount on credit meter. It is important that the government

:05:17.:05:21.

sets targets to significantly reduce the number of consumers on standard

:05:22.:05:26.

variable tariffs by 2020 and if suppliers cannot or do not meet

:05:27.:05:30.

these targets, then consideration has to be given to broaden the

:05:31.:05:38.

safeguard tariff to protect others standard dairy bull tariff

:05:39.:05:41.

customers. Just because consumers very often, vulnerable consumers,

:05:42.:05:53.

are unable to switch doesn't mean that they should be left at the

:05:54.:05:56.

mercy of the market that punishes them for not been able to do that.

:05:57.:06:03.

Much must be done to protect consumers who are currently

:06:04.:06:08.

overcharged, doing nothing is not an option. I hope the minister will

:06:09.:06:14.

address the concerns that we have raised today and reassure this house

:06:15.:06:19.

that protecting consumers and putting energy companies on notice

:06:20.:06:24.

that things cannot and must not continue as they have been doing.

:06:25.:06:31.

It's a pleasure to speak after the honourable member for North Ayrshire

:06:32.:06:35.

and Arran. Bradford is a city facing its share of challenges, many enjoy

:06:36.:06:43.

the poverty despite being in paid work, indeed, in work poverty is

:06:44.:06:48.

rife. Despite long working hours, week in week out, pay packets don't

:06:49.:06:55.

meet basic necessities. One such necessity is how to pay gas and

:06:56.:06:59.

electricity bills when they drop on the doormat. To my mind, that is

:07:00.:07:06.

what today's debate is all about. As energy prices soar and wages

:07:07.:07:10.

stagnate, hard-pressed families and those on low incomes are faced with

:07:11.:07:15.

desperate choices. What should they pay first? Rent or electricity rest

:07:16.:07:20.

are what is more important, weekly food shop or gas bill? What is

:07:21.:07:25.

better for their family, one home food on their table? Without doubt,

:07:26.:07:31.

soaring energy prices touch every single person in this country but

:07:32.:07:35.

the poorest suffer disproportionately. What is clear is

:07:36.:07:39.

that the wider energy market is in chaos. How many hours of coal

:07:40.:07:51.

powered energy has been provided this year? Is it not the case that

:07:52.:07:58.

coal stations produce more emissions on lower loads. How is the current

:07:59.:08:07.

capacity market mechanism going to guarantee fair pricing mechanisms?

:08:08.:08:15.

What is also clear is that the energy sector is no longer operating

:08:16.:08:22.

in the Insta -- interest of our constituents. All of the major

:08:23.:08:31.

suppliers except British Gas have recently announced price hikes. The

:08:32.:08:38.

big six enjoy a near monopoly position, 85% market share, when

:08:39.:08:41.

prices are hiked within days of each other, strong evidence that the

:08:42.:08:47.

market is broken. This government cannot continue to argue that

:08:48.:08:50.

competition in the energy sector is the key to lower bills. The big six

:08:51.:08:56.

are failing to get ordinary families and hard-pressed individuals onto

:08:57.:09:00.

their cheapest tariff. For 20 million households to be stranded on

:09:01.:09:07.

default tariffs is a scandal. The mantra about helping customers onto

:09:08.:09:11.

the cheapest tariffs is little more than spin. These customers could be

:09:12.:09:18.

paying up to ?230 extra per year, a huge sum when family budgets are

:09:19.:09:23.

under pressure. In Bradford, I'm fortunate that my local council is

:09:24.:09:28.

working to tackle fuel poverty but as a council they cannot control the

:09:29.:09:32.

big six energy companies. That is solely within the gift of this

:09:33.:09:37.

government. In 2015, Bradford Council adopted a fuel poverty

:09:38.:09:42.

framework for action, this devised in partnership with the respective

:09:43.:09:47.

national energy action undertook a detailed analysis of the scale of

:09:48.:09:52.

fuel poverty in Bradford. It discovered that homes in Bradford

:09:53.:09:56.

have benefited from 50,000 energy efficiency measures, but one in

:09:57.:10:04.

eight households continue to suffer from fuel poverty. This remains the

:10:05.:10:13.

case today. Because of its historical and industrial past, a

:10:14.:10:17.

substantial proportion of Bradford's housing is very old. Much of it

:10:18.:10:26.

built before 1919, above the national average of 25%, a further

:10:27.:10:36.

20% was built 1919- 44. These homes are classified as hard to treat

:10:37.:10:40.

because they are stone built and feature a regular construction. In

:10:41.:10:44.

many other towns and cities throughout the country, a family

:10:45.:10:48.

faced with soaring energy bills might consider improving the energy

:10:49.:10:52.

efficiency of their home, if they can afford it. In Bradford, the

:10:53.:10:57.

prevalence of hard to treat homes mean energy efficiency schemes are

:10:58.:11:04.

my -- neither quick nor affordable. The consequence is that meeting the

:11:05.:11:14.

cost of this scheme is ever more unlikely. The plight is especially

:11:15.:11:19.

desperate in the private rented sector. As families are priced out

:11:20.:11:25.

of the housing market, many find themselves in rented accommodation

:11:26.:11:28.

which has seen little investment for many years. The number of households

:11:29.:11:34.

in the private rented sector in Bradford has rocketed from 17,000

:11:35.:11:41.

502,001 to nearly 40,020 15. Now accounting for over 18% of the total

:11:42.:11:50.

housing stock. I recognise that the government has taken steps to tackle

:11:51.:11:55.

poverty in the private rented sector but regrettably Diego measures

:11:56.:11:57.

announced black ambition. The legal minimum requirement in the private

:11:58.:12:08.

rented sector has been set at E. An ambitious government would have set

:12:09.:12:13.

the legal minimum much higher. If this government had done so, an

:12:14.:12:17.

average family in private rented accommodation could have looked

:12:18.:12:22.

forward to a warmer home and saved hundreds of pounds per year. The

:12:23.:12:29.

damage is not limited to finances, a cold home damages the health and

:12:30.:12:34.

well-being of constituents. Evidence proves that living in a cold home

:12:35.:12:41.

aggravates health problems, including circulatory problems,

:12:42.:12:47.

cardiovascular and mental health. Living in a cold home leads to

:12:48.:12:50.

premature death in the winter months. The rate of premature death

:12:51.:12:58.

in Bradford for 2010-13 was over 22%. 5% higher than for the whole of

:12:59.:13:04.

the Yorkshire and Humber region and for England as a whole. People are

:13:05.:13:10.

literally paying for fuel poverty with their lives. This situation

:13:11.:13:15.

must not go on. This government must take action to tackle fuel poverty.

:13:16.:13:22.

Soaring energy costs and cuts to energy efficiency schemes is pushing

:13:23.:13:25.

hard-pressed families in Bradford close to the edge. For many, the

:13:26.:13:30.

desperate choices between a warm home and food on the table. This is

:13:31.:13:39.

an acceptable in this day and age. I'd like to thank every single

:13:40.:13:45.

honourable member for their contribution today, particularly the

:13:46.:13:51.

member for Weston-Super-Mare for bringing the issue of energy prices

:13:52.:13:54.

and the treatment of consumers before the committee. The big six

:13:55.:13:59.

have a lot to answer for rewarding long-term customers who have been

:14:00.:14:04.

loyal with the highest tariffs is simply appalling. Many of these

:14:05.:14:09.

individuals are elderly, vulnerable, disabled, have learning disability

:14:10.:14:13.

or mental health problems and can least afford it. My own grandmother

:14:14.:14:17.

at the time of her transfer to hospital in her 90s, when we

:14:18.:14:21.

examined the tariff she was playing was around two times more than what

:14:22.:14:28.

we were. Pensioners have a tight budget and maybe frail and very

:14:29.:14:34.

elderly relying on heating to prevent pneumonia. How can these

:14:35.:14:38.

companies sleep at night? There has been a lot of talk about switching

:14:39.:14:43.

and why we don't do it more. I hope I'm not the only person who has been

:14:44.:14:49.

bamboozled by energy tariffs. I find it absolutely income

:14:50.:14:58.

incomprehensible and incomparable. Comparing day rates, nitrates and

:14:59.:15:03.

standard daily charges, without a Ph.D. In mathematics it is all but

:15:04.:15:07.

impossible. On two occasions I switched rates to change money and

:15:08.:15:11.

found my bill had increased. I cannot help but think this is made,

:15:12.:15:23.

the gated on purpose. A relative energy cup has been proposed to

:15:24.:15:27.

prevent those being mercilessly ripped off and this is supported by

:15:28.:15:31.

a number of competitor brands so I would urge the Minister to review

:15:32.:15:36.

this proposal. It may be an interim solution as described but it will

:15:37.:15:42.

save customers, consumers, constituents money. Our focus should

:15:43.:15:44.

be and must be on them. The honourable member for Hartlepool

:15:45.:15:54.

has raised the exorbitant differential in price if consumers

:15:55.:15:57.

make the wrong decision. He highlights the big six off do knock

:15:58.:16:08.

back in the interests of customers. Over the years we have had many

:16:09.:16:13.

debates over the big six. Would you not agree that we need an enquiry

:16:14.:16:17.

into how the big six operate because it seems to me they are a cartel

:16:18.:16:23.

that price fix and at the end of the day customers suffer because of

:16:24.:16:28.

that. I packed the honourable gentleman for his extremely

:16:29.:16:34.

important point and today it has been highlighted by many members

:16:35.:16:38.

that they feel it is a monopoly and consumers must be put at the heart

:16:39.:16:45.

of energy pricing. The honourable member from Hartlepool described

:16:46.:16:48.

quite appropriately the difficulties people experienced in shifting

:16:49.:16:52.

supplier and that energy prices have reduced, but prices have been hiked.

:16:53.:16:56.

This in itself is an absolute disgrace. Mention today has been

:16:57.:17:03.

made of smart meters. Smart meters, although they help individuals

:17:04.:17:07.

monitor energy usage, it places responsibility on the consumer as

:17:08.:17:11.

though they were using too much when the fact is they are paying too

:17:12.:17:17.

much. Smart meters are not the sole answer and cos I feel must step up

:17:18.:17:21.

and take responsibility. Right honourable friend has asked me to

:17:22.:17:28.

raise that fuel property rates in the Western isles are the highest of

:17:29.:17:33.

any in any local authority area in Scotland. The announcement by SSE

:17:34.:17:38.

that they are to increase energy prices by 14.9% is a huge blow to

:17:39.:17:43.

these constituents. What measurements will the government

:17:44.:17:48.

take to address the issues faced exponentially by those on Ireland

:17:49.:17:52.

and rural communities. The honourable lady from Brent Central

:17:53.:17:56.

highlighted that just about managing families are being most affected in

:17:57.:18:00.

the UK Government is not standing up for their rights. She also

:18:01.:18:04.

highlighted the impact of fuel poverty, quite rightly. The

:18:05.:18:09.

honourable lady from Don Valley gave an excellent contribution and

:18:10.:18:12.

discussed the satisfaction levels with customers right across the UK

:18:13.:18:16.

which she says should ring alarm bells to this government. She

:18:17.:18:20.

highlighted the fact that those who struggled to pay are paying the

:18:21.:18:26.

most. Meanwhile, company profits are increasing. The honourable lady

:18:27.:18:30.

contributed from Bristol East and highlighted the Bristol energy

:18:31.:18:36.

contribution to fairer pricing locally and the level of local fuel

:18:37.:18:41.

poverty there. She is right to highlight her constituency concerns.

:18:42.:18:46.

My honourable friend from North Ayrshire and Arran described the

:18:47.:18:50.

situation in Scotland, particularly in rural and northern areas, and she

:18:51.:18:56.

described it can take 21 days to switch supplier which puts people

:18:57.:19:02.

off. The process is conflated. She described the need for the safeguard

:19:03.:19:06.

tariff to be extended and consideration to reductions needed

:19:07.:19:10.

on the standard tariff by a set time frame by this government. There are

:19:11.:19:16.

rural areas in my constituency which are still off the grid and much more

:19:17.:19:21.

needs to be done to support rural communities with little chance of

:19:22.:19:27.

energy costs in changes and tight. I ask the Minister to address these

:19:28.:19:31.

issues because these people are some of the people who are most badly

:19:32.:19:37.

affected by changes in pricing. The honourable member for Bradford South

:19:38.:19:43.

spoke of soaring energy prices and how the poor suffered

:19:44.:19:47.

disproportionately in this regard. In terms of Scottish government

:19:48.:19:51.

policy draft Scottish energy strategy is now open and I would

:19:52.:19:56.

urge individuals who are interested to consult and give their opinions

:19:57.:20:00.

on this. Our Scottish government remains committed to putting

:20:01.:20:04.

consumers at the heart of policy and to its target on renewables. Today I

:20:05.:20:09.

would urge the Minister to act because we do not need a postcode

:20:10.:20:14.

lottery. The energy sector from all we have heard today needs urgent

:20:15.:20:23.

reform, it needs it now and this reform must be made to serve

:20:24.:20:25.

customers rather than to serve itself. Thank you, Mr Deputy

:20:26.:20:32.

Speaker. We have had an excellent and powerful debate this afternoon

:20:33.:20:41.

which I thank the honourable member for Weston-Super-Mare, and indeed

:20:42.:20:45.

the right honourable member for Don Valley and the honourable member for

:20:46.:20:49.

North Ayrshire and Arran for securing it for us this afternoon. I

:20:50.:20:55.

know there were a number of issues relating to the televising of the

:20:56.:21:00.

pitch, but clearly it was a very successful pitch as it turned out.

:21:01.:21:04.

Indeed the wisdom of the backbench business committee in deciding that

:21:05.:21:10.

this should be debated this afternoon has been borne out by the

:21:11.:21:16.

powerful nurse of the contributions by members from Bristol West, Brent

:21:17.:21:21.

Central, North Ayrshire and Arran and Bradford South. Although I want

:21:22.:21:27.

to draw attention to some of the things those honourable members have

:21:28.:21:33.

said this afternoon in particular, what I think we can agree is that

:21:34.:21:40.

everybody this afternoon highlighted and emphasised just how broken the

:21:41.:21:48.

present energy market is in terms of doing the best thing for customers,

:21:49.:21:53.

which after all are at the heart of what we do in energy generation and

:21:54.:22:01.

supply in the first place. I think in emphasising how broken the market

:22:02.:22:09.

is we have got ourselves into, certainly as far as energy is

:22:10.:22:14.

concerned, into a rather odd place. What we have been talking about this

:22:15.:22:19.

afternoon is not, as we frequently do in this chamber, the plight of a

:22:20.:22:25.

persecuted minority and what we might do about it, we are here this

:22:26.:22:31.

afternoon talking about the plight of a persecuted majority and what we

:22:32.:22:35.

might do about it. If we want to understand between ourselves that

:22:36.:22:39.

the market is pretty broken to have got to this position in talking

:22:40.:22:44.

about this issue, if that does not emphasise the point honourable

:22:45.:22:47.

members were making this afternoon about how broken the market is, then

:22:48.:22:56.

I think that does. In that market we have had very recently some eye

:22:57.:23:04.

watering increases in prices. 10% on jewel fuel for a number of

:23:05.:23:08.

countries, double-figure increases on electricity bills from other

:23:09.:23:16.

companies and those price rises are justified by those companies as a

:23:17.:23:25.

combination of wholesale prices, the government's environmental measures,

:23:26.:23:32.

and even we have heard recently the impact of smart meters upon customer

:23:33.:23:40.

prices. The problem is, of course, we have no easy way, as I will come

:23:41.:23:46.

to in a minute, in actually assessing the extent to which those

:23:47.:23:49.

claims are justified or not. One thing I think we can say is that the

:23:50.:23:58.

idea, as my honourable friend the member for Don Valley has emphasised

:23:59.:24:03.

this afternoon, we need to set one thing at rest, and that is that

:24:04.:24:09.

those price rises are as a result of a low carbon levies. They are not.

:24:10.:24:14.

Indeed, my honourable friend the member for Hartlepool set out the

:24:15.:24:26.

recent report from the committee on climate change which indicated

:24:27.:24:36.

overall only 9% of bills come from government energy measures. Indeed,

:24:37.:24:41.

not only are those energy measures not a huge part of the overall bill,

:24:42.:24:46.

those measures themselves go towards decreasing bills in the future in

:24:47.:24:52.

terms of decreasing demand, increasing energy efficiency, and as

:24:53.:24:55.

far as renewable energy is concerned, changing the merit order

:24:56.:25:02.

of energy supply so that actually eventually the wholesale price of

:25:03.:25:05.

energy can be driven down over a period. I am very grateful. I wonder

:25:06.:25:11.

what my honourable friend things about this. E.ON last week justified

:25:12.:25:19.

their jewel fuel price increase by setting it is due mainly, mainly, to

:25:20.:25:24.

the rise of non-energy powers of the bill such as social and

:25:25.:25:29.

environmental schemes which help customers use less energy. But today

:25:30.:25:33.

they have announced big rises in profits primarily in conjunction

:25:34.:25:40.

with government mandated energy efficient measures. They want their

:25:41.:25:46.

cake and to eat it, don't they? Yes, Mr Deputy Speaker, my honourable

:25:47.:25:50.

friend makes a powerful point. They do what their cake and to eat it,

:25:51.:25:54.

but they are not sure where the cake is and we are not sure how which

:25:55.:25:58.

bits of the cake come from which soars because the whole energy

:25:59.:26:02.

market is non-transparent as it stands. That is a central feature of

:26:03.:26:09.

being able to judge whether those price rises are justified or not.

:26:10.:26:16.

What goes on in terms of the transactions that those energy

:26:17.:26:20.

companies undertake in order to trade in order to haste their

:26:21.:26:24.

trading, in order to bring the costs of wholesale into the retail market

:26:25.:26:29.

are almost completely opaque and continue to be so. In addition to

:26:30.:26:34.

that, as we have heard this afternoon, that persecuted minority

:26:35.:26:41.

we are talking about gets hit always. They get hit by the price

:26:42.:26:44.

rises and they get hit by paying the most expensive tariffs within the

:26:45.:26:51.

company roster of tariffs. Not only do they pay the most expensive

:26:52.:26:56.

tariffs, in some cases up to 90% of the customers of those companies are

:26:57.:27:00.

actually paying those most expensive tariffs. Not only should we not

:27:01.:27:07.

speak about these customers as if they were an endangered minority,

:27:08.:27:11.

they are not, they are an endangered majority. And they are also a

:27:12.:27:18.

majority which we have to stop talking about as if it is somehow

:27:19.:27:22.

their fault that they have not switched. As if they are responsible

:27:23.:27:27.

for not switching. We can see from the history again which my

:27:28.:27:31.

honourable friend, the member for Don Valley, pointed out, the

:27:32.:27:39.

correlation between those areas from which energy companies originally

:27:40.:27:49.

came and how that sticky customer base relates to particular areas in

:27:50.:27:52.

the country from which those companies originated. In fact in a

:27:53.:27:58.

number of instances we can say a large proportion of those sticky

:27:59.:28:02.

customers are those that the company inherited when they became

:28:03.:28:05.

privatised and they have stayed with those companies ever since.

:28:06.:28:09.

Admirable loyalty to those companies one might think an absolutely the

:28:10.:28:19.

wrong thing to do to treat those companies like they are treating

:28:20.:28:21.

them as we have heard this afternoon. It is a huge base of

:28:22.:28:29.

customers and not to put too fine a point on it, as we have heard from

:28:30.:28:34.

the honourable member for Weston-Super-Mare, because those

:28:35.:28:41.

customers will pay more for less year after year, they will not

:28:42.:28:47.

desert the company for a result and indeed they can be relied on to

:28:48.:29:00.

bring not to the benefit of the company's finances. What I think is

:29:01.:29:10.

the solution to that particular issue, what the CMA have been

:29:11.:29:16.

pursuing, is to sort of playing those sticky customers for the

:29:17.:29:20.

plight they find themselves in and say, if only you switched,

:29:21.:29:25.

everything would be OK. Indeed that idea runs through the heart of the

:29:26.:29:29.

recent CMA report on the energy market. Why don't all these sticky

:29:30.:29:35.

customers switch? If they do not, how can we poke and prod them until

:29:36.:29:40.

they do? If we keep prodding and poking and they do not switch, we

:29:41.:29:44.

can get other companies into poke and prod them more and then they

:29:45.:29:49.

might switch. That does not seem to me to be the sort of final remedy

:29:50.:29:54.

that is that all satisfactory given the scale and the nature of the

:29:55.:29:58.

market we see in front of us. We should not be surprised to read in

:29:59.:30:04.

the principles attached to the provisional remedies that the CMA

:30:05.:30:10.

put forward, the principles they operated the whole enquiry in just

:30:11.:30:14.

recently that they say, it is through customers shopping around

:30:15.:30:17.

and making choices between the offerings of rival suppliers that

:30:18.:30:21.

the benefits of competition emerge. That is what they thought they were

:30:22.:30:26.

doing with the enquiry. Whilst it is very welcome that they have come up

:30:27.:30:36.

with the idea of putting a cap on tariffs for those customers on

:30:37.:30:42.

prepaid meters, and by the way I pay tribute to my honourable friend for

:30:43.:30:49.

Brent Central who has been quite seriously instrumental in getting

:30:50.:30:51.

that particular arrangement forward in terms of her campaigning on the

:30:52.:31:01.

status of those people on prepaid meters and the excesses they were

:31:02.:31:06.

paying. So, that is welcome, but it does not do very much for the

:31:07.:31:13.

overall issue of the fact that we know that those sticky customers are

:31:14.:31:18.

not going to switch in a hurry. We know the energy companies know that.

:31:19.:31:23.

We know there is no evidence that the energy companies are trembling

:31:24.:31:27.

at the thought of their customers switching and are trimming their

:31:28.:31:33.

rises accordingly. The evidence is that switching is a substantial

:31:34.:31:36.

occupation for some and not most and switching totals concern and conceal

:31:37.:31:46.

a town of switching between multiple companies for some people and we

:31:47.:31:48.

have almost a perfect storm. Ofgen didn't see a need for...

:31:49.:32:10.

Customers paying out on disadvantageous tariffs. We need to

:32:11.:32:16.

get a grip on that problem. We've also heard this afternoon that a

:32:17.:32:20.

grip has been promised on a number of occasions. We've heard that the

:32:21.:32:31.

Prime Minister suggested that companies are in the last chance

:32:32.:32:35.

saloon and something has to happen. Very little has actually taken

:32:36.:32:41.

place. All that despite the fact that as honourable members have

:32:42.:32:45.

mentioned it is quite plain that customers have been overcharged for

:32:46.:33:00.

a long period by energy companies. Yes, a price cap, regulated price

:33:01.:33:05.

cap, within which competition could take place I think is a very good

:33:06.:33:14.

idea. I recognise, however, that that price cap has to be taken

:33:15.:33:21.

within the context of the fact that there will be real pressures on

:33:22.:33:27.

costs. It is true that wholesale markets do on occasion go up and it

:33:28.:33:30.

is true that energy companies will have to absorb that in terms of

:33:31.:33:36.

price increases. So a cap that allows that arrangement to take

:33:37.:33:40.

place but within which work can be done to ensure the competition

:33:41.:33:48.

remains is, I think, a good starting idea, as, indeed, is the idea that

:33:49.:33:58.

sticky customers, perhaps, should be after a certain period of time taken

:33:59.:34:04.

into either protected tariffs, as my right honourable friend, the member

:34:05.:34:10.

for Don Valley, suggested, or onto the lowest tariff the company offers

:34:11.:34:15.

over a period of time as a method of starting to take action as far as

:34:16.:34:20.

sticky customers are concerned. I think there is rather more goes into

:34:21.:34:24.

the present dysfunction of the energy market than just sticky

:34:25.:34:30.

customers. Indeed, reflecting on what Ofgem said recently not seeing

:34:31.:34:40.

a case for significant price rises for energy costs that could have

:34:41.:34:45.

seen well in advance. It's not clear whether Ofgem mean companies buying

:34:46.:34:52.

wisely in advance, well in advance, or suppliers buying a long time in

:34:53.:35:03.

advance. It means price rises shouldn't spike in the way that they

:35:04.:35:07.

often are but we don't know what companies are two when they are

:35:08.:35:11.

buying. For example, we don't know what is happening as far as energy

:35:12.:35:20.

company trades are concerned. It is not actually visible what many of

:35:21.:35:26.

those consist of. Where they are vertically integrated we don't know

:35:27.:35:29.

what happens when they trade with themselves. We don't know whether

:35:30.:35:33.

this reflects a fair trade market in forward trading. We need to open up

:35:34.:35:40.

the market to full transparency, not just a day ahead but right along the

:35:41.:35:46.

curve so we can act to abuse prevent abuses of trading positions which

:35:47.:35:50.

take place to the disadvantage of customs. While transparency is a

:35:51.:36:02.

sensible and worthwhile thing to aim for, from a consumer's point of

:36:03.:36:06.

view, it doesn't matter terribly much at all because consumers don't

:36:07.:36:10.

care whether or not their supplier is doing a good or bad hedging

:36:11.:36:16.

strategy. That is up to the supplier to manage. Some will get it right

:36:17.:36:22.

and some wrong but it should hit their managers, bonuses and

:36:23.:36:25.

shareholders returns and not the consumer price to be paid.

:36:26.:36:29.

Therefore, we want to understand this but we shouldn't seek to use it

:36:30.:36:34.

as a justification for high prices low, ultimately, we should be

:36:35.:36:37.

tougher than that on these suppliers. Indeed. An important

:36:38.:36:44.

point about the relationship with the customer for those transactions.

:36:45.:36:55.

Particularly with vertical integration, the way that those

:36:56.:36:58.

transactions are made cause money that should go to the customer to be

:36:59.:37:03.

siphoned off in respect of opaque trades. It is important to the

:37:04.:37:07.

customer in the long term which is why we do need full transparency in

:37:08.:37:13.

all those market trade arrangements. He makes a good point about vertical

:37:14.:37:21.

integration. Isn't it the case that in this dark, dark world of

:37:22.:37:27.

electricity generating supply, amongst the big six, they both

:37:28.:37:31.

generate electricity, sell it to themselves and then sell it on to

:37:32.:37:37.

ours. That impact on prices, fair or not, it excludes others, both

:37:38.:37:42.

independent generators and retailers coming into the market and putting

:37:43.:37:50.

downward pressure on price. My right honourable friend makes a point

:37:51.:37:56.

which I would say is spot on. Not only is it spot on but I think it

:37:57.:38:02.

demonstrates that we do need to understand a lot more about how

:38:03.:38:09.

those trades actually work and who is doing what to whom and sometimes

:38:10.:38:16.

who is doing what to themselves and within what is a conjugated picture

:38:17.:38:23.

of trading, right up to closure, trading in times of scarcity, the

:38:24.:38:29.

suggestion that on occasions generators can pull back on

:38:30.:38:33.

generating in order to trade when the generation becomes more trade

:38:34.:38:36.

and get a lot more money for that, all sorts of things such as that,

:38:37.:38:43.

all of which, are badly served in terms of accountability of those

:38:44.:38:45.

companies for what money goes where and who is benefiting from that

:38:46.:38:49.

money and what happens to a customer in the end. Via the opacity of the

:38:50.:38:59.

whole system. I believe that we not only need to open up the market to

:39:00.:39:03.

full transparency but we need to open a pool system of trading so

:39:04.:39:09.

that all trade into the pool and all trade out is conducted transparently

:39:10.:39:18.

and on a level playing field for all suppliers. This happens in

:39:19.:39:22.

Scandinavia so why can it not work here? That doesn't mean that

:39:23.:39:27.

companies can't make money, as Ofgem says, if they have good purchasing

:39:28.:39:32.

and hedging strategies, they can. What they won't be able to do is

:39:33.:39:35.

pass benefits on to themselves that should go to the customer. I think

:39:36.:39:42.

we need action on all this urgently. It is perhaps ironic that as the

:39:43.:39:48.

honourable member for Don Valley will recall well, we have between 's

:39:49.:39:57.

been through a number of reforms as far as energy is concerned and bills

:39:58.:40:04.

through the house under the heading of energy market reform. We have

:40:05.:40:09.

seen a great deal of reform but one thing we haven't seen is the reform

:40:10.:40:12.

of the energy market in all that time. It's actually time we got

:40:13.:40:17.

serious about the reform of the energy market in the way it works,

:40:18.:40:22.

in the way it is opaque, in the way it doesn't serve those sticky

:40:23.:40:27.

customers properly and indeed victimises and demonises those

:40:28.:40:31.

sticky customers in terms of how the energy companies are treating that

:40:32.:40:34.

majority of those customers. We need action of all this. Otherwise, we

:40:35.:40:40.

are going to be condemned to the same old cycle of price rise,

:40:41.:40:46.

muttering, remedies tossed around, remedies gathering dust on ourselves

:40:47.:40:52.

and another round of price rises. I commend this motion but I think it

:40:53.:40:57.

should herald the start of a serious look at how the whole market looks

:40:58.:41:02.

and how the customer can finally be brought to the centre of it. It's a

:41:03.:41:06.

fine start what we need to follow it through to the end. Thank you for

:41:07.:41:17.

the second debate I've had the pleasure of speaking in this week.

:41:18.:41:22.

You're getting to be a habit with me and I thoroughly welcome that. Let

:41:23.:41:33.

that be noted in the record. My great friend the member for super

:41:34.:41:37.

Mare should be congratulated on fighting his way through the Dragons

:41:38.:41:40.

of Dragon 's Den and securing the beauty of this debate which I

:41:41.:41:46.

greatly welcome. Whatever it effects, it has sent a powerful

:41:47.:41:50.

signal of the feelings, not just of the members who have spoken so well

:41:51.:41:55.

yet and down the country in this house as to be issues that we are

:41:56.:42:01.

describing. If I may, I'm going to talk about those issues, policy and

:42:02.:42:08.

I will try to weave responses to the interventions to the speech made in

:42:09.:42:13.

my comments. As you will know, the government is fully focused on

:42:14.:42:17.

getting the best deal for energy consumers and ensuring the market

:42:18.:42:24.

works for everyone and we absolutely expect energy companies to treat all

:42:25.:42:27.

their customers fairly and, therefore, we continue, as others

:42:28.:42:33.

are, to be concerned by price rises that hid billions of people in

:42:34.:42:37.

already paying more than they need to. It is not acceptable that five

:42:38.:42:43.

of the larger suppliers are increasing their standard variable

:42:44.:42:47.

prices. This will it customers hard in the pocket where they are already

:42:48.:42:52.

paying more than they need to. Wholesale prices that account for

:42:53.:42:55.

more than half of an average bill, are still it must be noted lower

:42:56.:43:01.

than they were in 2014. This is not a moment for crisis but this is a

:43:02.:43:07.

moment for sober reflection. One other thing, prices are not the same

:43:08.:43:12.

thing as bills. I would just refer colleagues to the recent report by

:43:13.:43:16.

the select committee in the House of Lords which reminds us that

:43:17.:43:20.

electricity bills have risen very little in the last 25 years. The

:43:21.:43:26.

reason for that is because measures of insulation, measures to improve

:43:27.:43:29.

appliances and other things. That isn't to say however that prices are

:43:30.:43:34.

not important and price rise is a matter of concern. I'm very pleased

:43:35.:43:43.

to take the intervention. It is important that we have a candid and

:43:44.:43:46.

open and honest discussion and he makes a very good point around the

:43:47.:43:51.

issue of prices versus hills. The amount of energy is we have used has

:43:52.:43:57.

gone down significantly in ten years but isn't he concerned as I am that

:43:58.:44:01.

maybe the big six are using that situation to keep their tariffs on

:44:02.:44:08.

welcome rehired because they are having to compensate for the fact

:44:09.:44:13.

that we are using less energy. It's a very interesting suggestion that

:44:14.:44:17.

the changes may have had the effect of cushioning the effect of price

:44:18.:44:21.

rising in the way she has described. I thank her for that board. I'd like

:44:22.:44:27.

to give that some reflection myself. Happy to take another intervention.

:44:28.:44:33.

To follow up on my right honourable co-sponsor's intervention there. The

:44:34.:44:39.

point about prices versus bills is very important. With the Minister

:44:40.:44:43.

agree that if prices stay on fairly or unnecessarily high, one of the

:44:44.:44:46.

government's main goals of improving overall productivity right the way

:44:47.:44:52.

through the economy and particularly for vitally important and central

:44:53.:44:57.

parts of the cost base for most businesses, which is energy bills,

:44:58.:45:01.

cannot be achieved or is much harder to achieve, if energy bills are

:45:02.:45:05.

higher than they need to be. We can do more with less if we are more

:45:06.:45:07.

efficient in our energy sector. This is a debate on retail and the

:45:08.:45:18.

problems are less marked in many areas of the business market but it

:45:19.:45:22.

is undoubtedly true that business bills must be kept as low as

:45:23.:45:27.

possible and the government has undertaken several steps precisely

:45:28.:45:32.

with the purpose of achieving that. May I go on to say that with

:45:33.:45:38.

suppliers as has been noted by colleagues across the host by being

:45:39.:45:44.

there take up to two years in advance they should be protected

:45:45.:45:48.

from recent fluctuations in the place of wholesale energy. We have

:45:49.:45:51.

seen some suppliers who have chosen to act differently to freeze their

:45:52.:45:54.

standard variable prices through winter and beyond and this alone

:45:55.:46:00.

shows the prose rises are not inevitable. It is a fact the

:46:01.:46:07.

majority of customers, around 66%, are in standard variable tariffs and

:46:08.:46:11.

continue to pay considerably more than those on fixed term deals. The

:46:12.:46:16.

CMA highly dubious customers are losing out by wilted estimated, the

:46:17.:46:24.

number has been disputed, but an estimated ?1.4 billion in the last

:46:25.:46:33.

few years. There have been persistently high differentials

:46:34.:46:37.

between the cheapest fixed deals and standard variable tariffs. The

:46:38.:46:41.

latest from Ofgem has shown that differential to be around ?200. It

:46:42.:46:46.

is those, and we have had a very good focus today on fuel poverty, as

:46:47.:46:51.

we did the other night, it is those who can least afford it who are most

:46:52.:46:56.

likely to be losing out, households with low incomes, B Ball with low

:46:57.:47:00.

qualifications, those in the rented sector, those over 65 are more

:47:01.:47:05.

likely to lose out than others. These recent price rises the to

:47:06.:47:09.

underline the fact that the majority of consumers are paying more than

:47:10.:47:14.

they need to. What can be done about it? Let me talk about competition.

:47:15.:47:22.

Effective competition in many markets has the effect of driving

:47:23.:47:28.

down prices, promoting innovation and assisting improvement in

:47:29.:47:31.

customer services. The government has worked very hard with Ofgem to

:47:32.:47:42.

try to improve competition. The lady mentioned Groundhog Day. Casting

:47:43.:47:47.

herself in the role of Andy McDowell. That is how I would see

:47:48.:47:53.

her. There has been some progress. It is not fair to say we are in

:47:54.:47:58.

Groundhog Day. Members rightly point to the fact that there are now over

:47:59.:48:03.

50 energy suppliers in the domestic market up from 13 in 2010 and there

:48:04.:48:08.

are the potential new entrants including local authorities waiting

:48:09.:48:15.

in the wings. We welcome them to the market. Independent suppliers have

:48:16.:48:19.

over 18% of the dual fuel market up from less than 1% seven years ago. I

:48:20.:48:26.

am pleased to hear about Bristol East, the lady from Bristol East to

:48:27.:48:31.

mention Bristol energy and the social conscience they bring to

:48:32.:48:36.

energy supply. That is typical of 80 of new and wider ranging suppliers

:48:37.:48:40.

we have seen including not-for-profit suppliers and housing

:48:41.:48:46.

providers. Smaller suppliers, those are the who are leading the way in

:48:47.:48:53.

smart PPA and other uses of technology to support customers in

:48:54.:48:55.

finding the best deal using their mobile phones. We had a very good

:48:56.:49:01.

debate in discussing switching as well. That has been rightly noted

:49:02.:49:05.

that an increasing number of households are switching their

:49:06.:49:09.

energy supplier with 7.8 million energy accounts, an increase of 28%

:49:10.:49:14.

on the previous year. This is putting in place competitive

:49:15.:49:24.

pressure. There is some competitive pressure on the big six. It is still

:49:25.:49:29.

only 15.8% of gas and electricity customers so it is a long way before

:49:30.:49:36.

anyone should feel that a large number of people are actively

:49:37.:49:39.

availing themselves of the opportunity to switch. That one

:49:40.:49:46.

might expect. One might expect in a more competitive market. For too

:49:47.:49:48.

long to many customers have been left on poor value deals. At the end

:49:49.:49:55.

of the last year we announced to the government new measures to increase

:49:56.:49:57.

transparency for consumers. I welcome the point made about

:49:58.:50:05.

transparency. He is right. It has been found in several studies the

:50:06.:50:08.

markets are less transparent here in many ways than one might like. And

:50:09.:50:15.

effort was made to start to begin to get increased transparency of

:50:16.:50:18.

consumers including the publication of an energy supplier league table

:50:19.:50:23.

by Ofgem designed to shine a light on the most expensive standard

:50:24.:50:27.

variable tariffs. We know some consumers worried that switching

:50:28.:50:30.

supplier may be difficult and time-consuming. It is not just an

:50:31.:50:34.

economic matter. It is a cultural matter. You must recognise that are

:50:35.:50:39.

not simply allow purely economic analysis of the cove. We are also

:50:40.:50:44.

taking forward proposals the mandate my data in the energy sector and

:50:45.:50:49.

that should also have an effect. My data will allow consumers to get

:50:50.:50:54.

hold of they are due date electronically anti-user to find the

:50:55.:50:58.

best deal. It will make the switching process quicker and easier

:50:59.:51:02.

and more accurate and with luck will allow people to switch using

:51:03.:51:06.

smartphone applications more easily. We are very keen that the benefits

:51:07.:51:12.

of this are not restricted in any sense to the tech savvy but to

:51:13.:51:15.

anybody who owns a mobile phone at the very least. We will be working

:51:16.:51:20.

with industry, switching companies and consumer groups to ensure all

:51:21.:51:26.

consumers can switch. The member for North Ayrshire and Arran raised the

:51:27.:51:30.

issue of the time it takes to switch supplier, rightly raising that. It

:51:31.:51:37.

used to be five weeks. Working with Ofgem to get down to 21 days. Having

:51:38.:51:43.

done that to push it down towards where it should be which is 24

:51:44.:51:48.

hours. That would be a major improvement to our system. We have

:51:49.:51:52.

also had discussion with customer service. There has been some

:51:53.:51:56.

improvement. The latest Ofgem data should suppliers received over 3

:51:57.:52:01.

million fewer customer complaints compared to 2014 but with 3.5

:52:02.:52:06.

million complaints in any case that was not saying much, they still have

:52:07.:52:11.

a long way to go. We are working with Ofgem and the ombudsman to

:52:12.:52:14.

identify and fix systemic issues which have the effect of damaging

:52:15.:52:20.

customer service. And Ofgem review last year has resulted in greater

:52:21.:52:24.

levels of communication between Ofgem, the ombudsman and citizens

:52:25.:52:28.

advice. Citizens advise an organisation I greatly esteem are

:52:29.:52:38.

working on area tings system. Turning to the CMA report, the CMA

:52:39.:52:46.

had some positive things to report after concluding its two-year energy

:52:47.:52:50.

market investigation. They found that wholesale energy markets and

:52:51.:52:55.

the retail market for larger businesses are working well but for

:52:56.:52:59.

domestic energy suppliers the CMA report as a wake-up call. It is

:53:00.:53:05.

important to note that the report was not absolutely unequivocal in

:53:06.:53:08.

every sense and it has been contested. A letter from some very

:53:09.:53:12.

senior energy regulators who raised the question whether and not it is

:53:13.:53:17.

true and it is important to acknowledge that. The CMA's position

:53:18.:53:22.

was clear which was that consumers should be able to trust energy

:53:23.:53:25.

companies are now they are getting a good deal. They find that a lack of

:53:26.:53:30.

competition meant that something like 70% of big six customers

:53:31.:53:34.

remained on the most expensive tariff despite savings they could

:53:35.:53:41.

make by moving to another tariff. We have encouraged and Ofgem are

:53:42.:53:46.

introducing a prepayment meter cap which will protect 4 million

:53:47.:53:50.

households across Britain from the beginning of next month. We are

:53:51.:53:58.

determined to go further and we have a consumer green paper in prospect

:53:59.:54:03.

which will examine specific sectors but we will also respond to the CMA

:54:04.:54:10.

energy market report separately and sooner rather than later. Our green

:54:11.:54:15.

paper will examine markets that are not working fairly for consumers. In

:54:16.:54:19.

general consumers in this country enjoys strong protection in an

:54:20.:54:24.

effective regime that helps them get the best deal but where those

:54:25.:54:27.

markets are not doing their job, where competition is not effective,

:54:28.:54:35.

government will look to intervene to improve competition and to

:54:36.:54:37.

strengthen outcomes. The Green paper will complement and fit within the

:54:38.:54:41.

government's industrial strategy to build on work delivering an economy

:54:42.:54:45.

that works for everyone. We have already announced proposals to end

:54:46.:54:51.

subscription traps than shortening small print and new powers to impose

:54:52.:54:55.

fines on companies who mistreat customers. The Green paper will

:54:56.:54:57.

provide more detail on these proposals. A couple of reflections

:54:58.:55:03.

on some of the very helpful comments that are being made. I was intrigued

:55:04.:55:10.

to know that the lady from Brent Central that it is Labour policy to

:55:11.:55:15.

renationalise the big six companies. I welcome further clarification on

:55:16.:55:19.

that together with an explanation of how much it would cost and how it

:55:20.:55:24.

would be funded. An interesting contribution. I can graduate and

:55:25.:55:30.

thank my shadow for rectal and dicing the complexity of the problem

:55:31.:55:35.

we face -- recognising the complexity. He is right to focus on

:55:36.:55:43.

transparency. To my friend from Weston-Super-Mare, these things will

:55:44.:55:48.

be taken as contributions and reflected on by government. It is

:55:49.:55:51.

worth saying that the government's record in energy markets is not

:55:52.:55:57.

absolutely unblemished. There have been several occasions on which

:55:58.:56:02.

changes have been made and had to be unwind because they were contrary to

:56:03.:56:06.

competitive pricing or innovation and that is worth recognising. I

:56:07.:56:12.

have listened very positively to what he has said about the

:56:13.:56:15.

government being prepared to intervene when a market is not

:56:16.:56:19.

working. Can I remind him of comments from the CBI on the energy

:56:20.:56:25.

market which refers it -- to it as a managed market because energy is an

:56:26.:56:29.

essential to life product which sets itself apart from some of the

:56:30.:56:34.

discussions we had earlier about toothpaste and other products? IR

:56:35.:56:37.

agenda stand up for what government should do which is set the framework

:56:38.:56:43.

in which markets operate. The point is well taken and you do not have to

:56:44.:56:49.

look far into the Wealth of Nations to know that markets are reflective

:56:50.:56:53.

when they are as deep as possible. The division of labour and therefore

:56:54.:56:59.

value generation can be realised. Also when they are supported by a

:57:00.:57:02.

strong state and a strong system of justice and enforcement. That is

:57:03.:57:08.

absolutely the tone of approach to the markets in this case. May I find

:57:09.:57:17.

members for a very thoughtful and interesting debate which has covered

:57:18.:57:21.

a great deal of ground in a limited time? We are acting to make

:57:22.:57:29.

switching easier and quicker. We are rolling out smart meters and

:57:30.:57:32.

continuing to help low-income houses with energy bills. We recognise the

:57:33.:57:36.

CMA did important work in highlighting how much consumers are

:57:37.:57:41.

currently losing out. We recognise recent price rises underlined the

:57:42.:57:45.

fact the majority of consumers are paying more than they need to. We

:57:46.:57:50.

believe the current practice as it stands is not acceptable and we will

:57:51.:57:54.

set out proposals to address these issues shortly. I wanted to repeat

:57:55.:58:02.

my thanks not only to my co-sponsors but to everybody else who has taken

:58:03.:58:08.

part in this debate. It has been full of passion and determination.

:58:09.:58:11.

This is an issue which has been around for far too long and is an

:58:12.:58:18.

issue which, in spite of the best efforts of successive governments,

:58:19.:58:21.

has not got better sufficiently quickly, and therefore there is

:58:22.:58:27.

clearly further to travel. I was very reassured by the direction of

:58:28.:58:30.

travel which the minister has just laid out and I would like to welcome

:58:31.:58:35.

some of his comments about rolling out my data which is something which

:58:36.:58:38.

should solve many of the problems on data access which are obstacles to

:58:39.:58:44.

switching. It has been around for six years and we are waiting, we

:58:45.:58:50.

anticipate and hope that it will arrive very shortly. It is good to

:58:51.:58:56.

hear there is fresh impetus behind that move and equally the point

:58:57.:59:00.

about 24 hour switching again being something that will help to drive up

:59:01.:59:04.

the levels of competition which writer away across the political

:59:05.:59:07.

spectrum and throughout this debate that has been a recognition that

:59:08.:59:12.

progress towards a properly competitive market where the big six

:59:13.:59:15.

suppliers feel under pressure to look after their customers has been

:59:16.:59:20.

too slow and needs to move faster. I am reassured to hear him making that

:59:21.:59:23.

point and that commitment from the government benches. He has also said

:59:24.:59:30.

it is not moving fast enough. Clear implication of all of the speeches

:59:31.:59:34.

we have heard so far today is that politically the way is clear. If

:59:35.:59:40.

there is something where proposals from people like myself, and I would

:59:41.:59:44.

count myself as one of the most born in born drive free marketeers you

:59:45.:59:52.

would find, looking at a relative price cap or other measures, the

:59:53.:59:56.

chairman of the select committee, the front bench speaker for SNP, and

:59:57.:00:01.

acceptance from the Labour Party front bench this is worth looking

:00:02.:00:06.

at, we can say categorically this is an idea whose time has come, a

:00:07.:00:12.

thirst for action, movement, and therefore from the government point

:00:13.:00:15.

of view they should be bold and willing to move soon.

:00:16.:00:21.

As many as are of the opinion, say "aye". To the contrary, "no". . The

:00:22.:00:28.

ayes have it. I beg to move this house now do adjourn. As many as are

:00:29.:00:32.

of the opinion, say "aye". To the contrary, "no". . The ayes have it.

:00:33.:00:34.

Order, order.

:00:35.:00:42.

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