Tuesday Volume 677 16 June 2020 No. 70 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Tuesday 16 June 2020 © Parliamentary Copyright House of Commons 2020 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 623 16 JUNE 2020 624 changes to the UK insolvency framework will result in House of Commons net benefits to business of over £1.9 billion in today’s prices, which is a much needed boost for businesses at Tuesday 16 June 2020 this uncertain time. Aaron Bell: I welcome the Secretary of State back to The House met at half-past Eleven o’clock the Dispatch Box after his recent illness. Businesses in Newcastle-under-Lyme and across the country face the PRAYERS risk of insolvency, especially those with business models that are dependent on socialising. In addition to what [MR SPEAKER in the Chair] he has set out, which I welcome, can he tell us what Virtual participation in proceedings commenced (Order, Companies House proposes to do to support businesses 4 June). at threat of insolvency? [NB: [V] denotes a Member participating virtually.] Alok Sharma: My hon. Friend raises an important Speaker’s Statement point, and this is part of the Bill. While Companies House has extended the period for filing accounts, we Mr Speaker: Today marks the fourth anniversary of will give businesses the maximum period available under the death of our friend and colleague Jo Cox, who was the powers in the Corporate Insolvency and Governance murdered on her way to meet constituents in her Batley Bill for filing their accounts, confirmation statements and Spen constituency. She was doing what so many of and event-driven updates. At a time when many companies us do as constituency MPs, which made her death all are focused on surviving, that will be very welcome the more shocking. May I express on behalf of the respite. whole House our sympathy with her family, friends and colleagues on this sad anniversary? We will never forget Drew Hendry (Inverness, Nairn, Badenoch and Jo or her legacy. We remember her wise words: we have Strathspey) (SNP): Mr Speaker,may I echo your sentiments far more in common than that which divides us. on the tragic loss of Jo Cox? Businesses facing insolvency will be under further pressure with the premature end to the furlough and Oral Answers to Questions self-employed schemes, and loan schemes are of little help, because they simply add to a pile of debt. Does the Secretary of State agree that the sectors hit hardest by BUSINESS, ENERGY AND INDUSTRIAL covid-19 need long-term support to survive and rebuild, STRATEGY which means extending the furlough scheme and support loans being written off or converted to equity? The Secretary of State was asked— Alok Sharma: The level of support we have provided Insolvency across the economy is incredibly favourable by any international comparison. The furlough scheme will be Chris Clarkson (Heywood and Middleton) (Con): in place for a full eight months. That is precisely the What steps his Department is taking to support businesses support that we have been very keen to give to businesses. facing insolvency. [903254] Aaron Bell (Newcastle-under-Lyme) (Con): What steps Drew Hendry: Tourism is worth £10.5 billion to the his Department is taking to support businesses facing Scottish economy, and before the pandemic it provided insolvency. [903281] 8% of jobs. While some businesses will soon be able to reopen outside areas, vital public health rules and consumer The Secretary of State for Business, Energy and Industrial sentiment will mean that most activity is subdued. Will Strategy (Alok Sharma): Mr Speaker, may I join you in the Secretary of State follow the Scottish Government your words about our former colleague, Jo Cox? by setting up a tourism taskforce and use his Government’s We have introduced the Corporate Insolvency and reserve powers to cut VAT for tourism and other sectors, Governance Bill to help companies maximise their chances to help firms that are at risk of insolvency? of survival. The Bill introduces new corporate restructuring tools and temporarily suspends part of insolvency law Alok Sharma: As I am sure the hon. Gentleman will to help businesses keep trading. know, my right hon. Friend the Secretary of State for Digital, Culture, Media and Sport is working with the Chris Clarkson: I thank my right hon. Friend for that tourism sector, and there is regular dialogue with it. I answer. I was proud to make my maiden speech on recognise the concerns that he has raised about this Second Reading of that very important Bill, which will sector, which is closed, but that is why we have provided provide vital safeguards during the coronavirus pandemic. particular support through a rates holiday for hospitality Can he tell me what benefits it will have for businesses, businesses. not just in my constituency of Heywood and Middleton and across the north-west but in the wider country? Hydrogen Technology Alok Sharma: My hon. Friend is proving to be a real champion for businesses in his constituency, and he Ian Paisley (North Antrim) (DUP): What steps he is raises an incredibly important point. The impact assessment taking to develop hydrogen technology in the UK. of the Bill’s measures suggests that the three permanent [903255] 625 Oral Answers 16 JUNE 2020 Oral Answers 626 The Minister for Business, Energy and Clean Growth success. Building momentum for that summit and (Kwasi Kwarteng): We are investing up to £121 million establishing our credibility as its host is dependent on between 2015 and 2021 in hydrogen innovation, supporting demonstrable leadership at home. In that regard, does the application of new low-carbon hydrogen technologies the Minister agree that there is a strong case for publishing across the value chain. I have had valuable discussions our nationally determined contribution before the end with businesses on the importance of scaling up hydrogen of 2020, and an arguable case for basing that NDC on a supply,including with Wrightbus, in the hon. Gentleman’s significantly enhanced 2030 target that puts us on the constituency. path to achieving net zero? Ian Paisley: I echo the sentiments expressed about Kwasi Kwarteng: My right hon. Friend the Secretary our late colleague, Jo Cox. of State is, of course, president of the COP26. He is The Minister will be aware that Germany announced committed to publishing very rigorous and ambitious in the last number of weeks that it is investing £5 billion targets for ourselves. As I responded to my hon. Friend in hydrogen technology. It joins the long list of countries the Member for Ynys Môn (Virginia Crosbie), we are investing billions of pounds, which includes Norway, second to none in our commitment—our legislation—in the Netherlands, Portugal, Japan, South Korea, New terms of dealing with climate change. We have legislation Zealand and Australia, as well as the EU. The £121 million that is very clear and sets the path. to which he referred is very welcome, but it will never make us the leader of the pack in this industry. Let us Post Office Network move on from trials, Minister. Let us move on to real investment in this technology and become the world Marion Fellows (Motherwell and Wishaw) (SNP): leader that Britain and the United Kingdom can be in What steps he is taking to support the sustainability of this wonderful technology, which will create jobs and the post office network. [903257] provide more employment across the whole UK. The Parliamentary Under-Secretary of State for Business, Kwasi Kwarteng: I am grateful for the hon. Gentleman’s Energy and Industrial Strategy (Paul Scully): The enthusiasm for that technology. The countries that he Government recognise the critical role that post offices describes have announced commitments to spending play in communities across the UK. This is why the the money; they have not spent the money yet. We will Government have committed to safeguard the post office be following and pursuing that technology very rigorously, network by investing over £2 billion between 2010 and with full Government backing, in due course. 2018, and a further £370 million from April 2018 to Climate Change March 2021. I regularly meet with the Post Office to find innovative steps to secure network sustainability and the continuity of services across the UK. Virginia Crosbie (Ynys Môn) (Con): What steps his Department is taking to tackle climate change. [903256] Marion Fellows [V]: I thank the Minister for his answer, but during the covid-19 pandemic, when sub- The Minister for Business, Energy and Clean Growth postmasters have proved just how essential they are to (Kwasi Kwarteng): Since 1990 we have grown the economy our communities, many are handing in their keys as by 75% while cutting emissions by 43%, and in June they struggle to make a living, leaving communities 2019, we became the first major economy to legislate for without vital services. Pre-covid Post Office figures show a net zero carbon emissions target. that Scotland is still being hardest-hit by the postmaster We are hosting the COP26 climate negotiations next crisis, with the highest number of closed branches in the year. Along with our G7 presidency, we are determined UK, increasing by 17% since last year. Notwithstanding to use our international leadership to drive global climate what the Minister has just said, in the 2020 spending ambition. review, will Ministers agree to maintain or increase the Government subsidy to post offices, to ensure that Virginia Crosbie: What assessment has my right hon.