The new Department for Business, Innovation and Skills (DBIS) was formed in June 2009 by the merger of the Department for Business, Enterprise and Regulatory Reform (BERR) and the Department for Innovation, Universities and Skills (DIUS). This report looks back on the last departmental report of the old Department for Business, Enterprise and Regulatory Reform and considers the progress made in moving forward the new Department. The Committee welcomes the creation of the new Department which brings under one roof the business and further and higher education sectors. The Committee believes this could deliver significant potential benefits. The report examines the merger process, the delivery agencies, public service agreements and departmental strategic objectives, and future departmental reports and resource accounts. The report also focuses on the Automotive Assistance Scheme, designed primarily to support investment in low carbon plant and research and development. It welcomes the lowering of the limit of the Scheme from £5 million to £1 million, in line with its recommendation made in July, but is deeply concerned that not a single loan or loan guarantee has been made under the programme. The Committee calls on the Government to expedite its negotiations, and prove to the Committee and the automotive industry that the Scheme can provide tangible benefits to companies in the sector.
First Joint Report of Session 2008-09; Second Report from the Business and Enterprise Committee of Session 2008-09, First Report from the Culture, Media and Sport Committee of Session 2008-09; Report, Together with Formal Minutes and Oral Evidence
First Joint Report of Session 2008-09; Second Report from the Business and Enterprise Committee of Session 2008-09, First Report from the Culture, Media and Sport Committee of Session 2008-09; Report, Together with Formal Minutes and Oral Evidence
The committees held a joint pre-appointment hearing with Dr Colette Bowe, the chairman-elect of Ofcom. This position is one of those key public positions identified by the Governance of Britain green paper as qualifying for pre-appointment hearings from Parliamentary committees. The report examines briefly the role the chairman and provides some biographical information about Dr Bowe, her cv, and a transcript of the oral hearing. The committees conclude, having questioned Dr Bowe, that she is a suitable candidate for the post.
Government response to HC 138 (ISBN 9780215544377) which was a follow-up to HC 26-I, session 2008-09 (ISBN 9780215530127) by this Committee's predecessor the Business and Enterprise Committee
Companies House has two main functions: the incorporation, dissolution and restoration of limited companies; and the maintenance of a register of company details, annual reports and accounts which it makes available for public inspection. It funds its work by charging fees and pays a small dividend to the Treasury each year. Companies House handles a vast amount of data. It is now doing much more of this electronically. This move has not been entirely smooth. In the Committee's view, the greatest difficulties facing Companies House, and those who use its services, arise from matters which are not directly controlled by Companies House itself - namely the way in which the internet has enabled faster and easier access to information. The Committee makes a number of recommendations about assessing particular risks and trying to reduce them. An underlying theme of this report is the need for Companies House to do more to explain the limitation of the information it holds. It is felt that much more could and should be done to make clear that the role of Companies House is to receive and publish data and that its power to verify information is extremely limited
maintaining UK excellence in motorsport and aerospace, sixth report of session 2009-10, report, together with formal minutes, oral and written evidence
maintaining UK excellence in motorsport and aerospace, sixth report of session 2009-10, report, together with formal minutes, oral and written evidence
Motorsport and aerospace are two industries in which the United Kingdom is a world leader and the Committee believes that the future success of the UK economy will be based on these types of industries. Concerns regarding the aerospace included the current US complaint in the World Trade organisation and the Government's right to support the industry through Repayable Launch Investment; and that the UK aerospace sector has access to export trade credit at less favourable rates and through a more complex system than other countries. In examining the motorsport industry the Committee felt that there was a lack of understanding and effective engagement by Government. They are not content with the Government's current plans to take forward its work with the sector through the UK Automotive Council. Instead they recommend that the Government establish a dedicated motorsport policy team within the Department for Business, Innovation and Skills. Small and medium-sized enterprises also play a very important role in supporting both sectors but they have been hit worst by the recession and the Government needs to do more to encourage high performance engineering firms to diversify. Both sectors require a highly skilled workforce and more needs to be done to align the education system with the skills needs of the industries. Finally is the problem of the 'non-green' image that both industries have.
Mergers, acquisitions and Takeovers : The takeover of Cadbury by Kraft, ninth report of session 2009-10, report, together with formal minutes, oral and written Evidence
Digital Britain is a vital part of public policy which will define the United Kingdom's telecommunications networks for years to come, and so there must be a full-time Minister dedicated to the issue. This report supports a swift roll-out of Next Generation Access (NGA) networks across the country.
The Government's draft Consumer Rights Bill has the potential to consolidate, simplify and modernise consumer law however issues and inconsistencies must be resolved. The current proposals would apply a statutory right that services under a contract must be provided with reasonable care and skill [a fault-based standard]. This does not provide sufficient consumer protection. The Draft Bill should require that services must achieve the stated result, or one which could be reasonably expected [an outcomes-based standard]. As the Bank of Ireland case demonstrated, the right to terminate a contract does not necessarily protect consumers from detriment. This report recommends an addition to the grey list - the indicative list of contract terms which may be regarded as unfair. The Government's proposals for enhanced consumer measures, which would require traders that have breached consumer law to compensate consumers, are welcome. However, private enforcers should also be able to use them. The collective proceedings regime has the potential to improve access to redress for victims of competition law breaches but the Government must clarify the certification requirements for such proceedings. The creation of rights and remedies for digital content is welcome, but the Government must do more to communicate how the proposals will work in practice. Under the draft Bill, the remedies available to consumers of digital content would depend on whether the content is intangible (such as a music download) or tangible (such as a CD). In appropriate circumstances, consumers should have the right to reject and obtain a refund irrespective of whether they purchase intangible or tangible digital content
There has been a significant improvement in economic relations between the UK and India since the 2006 report from the Trade and Industry Committee (HC 881-I, 3rd report session 2005-06, ISBN 9780215029355), which urged greater engagement with India. Both Government and private sector bodies have worked to achieve this. The sizeable investments and deals made both by Indian companies in the UK and British companies in India are encouraging signs of a deepening relationship which should benefit both countries. The establishment of the UK-India Business Council is perhaps the most tangible manifestation of this. This new report welcomes the improved climate, but identifies areas for further work. India's economy has recently enjoyed growth rates of around 9 per cent a year; it is possible this will slow slightly in 2008 and 2009. India faces significant challenges, such as real poverty, poor infrastructure and public sector bureaucracy. But the Indian market is liberalising and has much to offer. Not all the barriers to a deepened relationship are on the Indian side. The recommendations in this report on education links, on visas, on the future of JETCO, on the work of UKTI and on trade negotiations need to be seen against this wider backdrop.
A report from the 'Business and Enterprise Committee' that inquires into the effect of the 'Big 6' energy companies - which include Npower, Centrica, EDF Energy, Scottish Power, and Scottish and Southern Energy - all raising their prices between January and April 2008. It aims to feed into a separate inquiry being carried out by Ofgem.
UK strategic export controls annual report 2008, quarterly reports for 2009, licensing policy and review of export control legislation, first joint report of session 2009-10, seventh report from the Business, Innovation and Skills Committee of session 2009-10, ninth report from the Defence Committee of session 2009-10, fourth report from the Foreign Affairs Committee of session 2009-10, fifth report from the International Development Committee of session 2009-10, report, together with formal minutes, oral and written evidence
UK strategic export controls annual report 2008, quarterly reports for 2009, licensing policy and review of export control legislation, first joint report of session 2009-10, seventh report from the Business, Innovation and Skills Committee of session 2009-10, ninth report from the Defence Committee of session 2009-10, fourth report from the Foreign Affairs Committee of session 2009-10, fifth report from the International Development Committee of session 2009-10, report, together with formal minutes, oral and written evidence
The joint committee is known as the Committees on Arms Export Controls, formerly the Quadripartite Committee. The UK strategic export controls annual report 2008 was published as Cm. 7662 (ISBN 9780101766227)
The construction industry provides employment for more than 2.8 million people, contributed 8.7 per cent of the UK economy's gross value-added (GVA) in 2006. The built environment is estimated to account for some 70 per cent of UK manufactured wealth. The industry's ability to deliver projects successfully in terms of time, cost and design quality has a major impact on the economy's wider performance. Construction is vital for the provision of good quality public services, and plays a role in the delivery of just over half of the Government's 30 public service agreements. It is also key to the long-term objective of making the UK a low-carbon society: buildings account for around half of greenhouse gas emissions. The health of the construction industry is a matter of public concern. The industry is complex and fragmented; it operates on low profit margins. There are difficulties in ensuring that lessons from experience are shared; that the workforce is sufficiently trained; and that appropriate contractual relationships are in place between different parts of the supply chain. The industry has set new targets for itself, and, in conjunction with government, established a Strategy for Sustainable Construction. The Government, because of its roles as both client and regulator, can and must be at the forefront of the drive to embed best practice. The sector also needs strategic leadership, and the Committee recommends the creation of the post of Chief Construction Officer, which both government and the industry should accept as having overall responsibility for construction.
This report examines the matter of accountability to the House of Commons of Lord Mandelson of Foy and Hartlepool, the Secretary of State for Business, Enterprise and Regulatory Reform. As a member of the House of Lords he is unable to answer questions in the House of Commons. The report compares the current situation with previous examples of Cabinet ministers being in the House of Lords. The Committee notes that the current situation differs from the past in that a significant proportion of the ministerial support team is based in the Lords or shared with other departments. It is unfortunate that the department for business is so thinly represented in the Commons. One solution would be to amend Standing Orders to allow Lord Mandelson to appear at the Despatch Box to answer questions in the Commons. There are precedents for this approach. Such a change might, though, encourage governments to appoint more members of the House of Lords as department heads, and the Committee feels that would be an unwelcome and significant constitutional change. The Procedure Committee should investigate a mechanism for parliamentary questions to the Secretary of State for Business, Enterprise and Regulatory Reform.
The NDA is funded by a combination of commercial income and grant-in-aid. For 2007/08 its budget is set at £2,790 million; of this, £1,420 million was intended to be ring-fenced grant-in-aid and £1,370 million commercial income, chiefly from reprocessing but also including income from waste substitution. The National Audit Office report (HC238, session 2007-08, ISBN 9780102951974) identified uncertainty as to whether the waste substitution income budgeted for would actually be forthcoming. There has been a shortfall in the NDA's budget and the large request for additional funding that resulted came at a very late stage in the financial year. The Committee believes the NDA's funding model is unsustainable, particularly in light of the volatile and declining nature of the NDA's commercial income. Public funding will almost certainly have to increase significantly, over and above the current plans. This has major implications for the Department for Business, Enterprise and Regulatory Reform (DBERR) which already spends 40 per cent of its departmental expenditure limit on the NDA. A new system of funding is needed, as the Permanent Secretary of DBERR acknowledged, and work on this needs to begin urgently.
The Government's draft Consumer Rights Bill has the potential to consolidate, simplify and modernise consumer law however issues and inconsistencies must be resolved. The current proposals would apply a statutory right that services under a contract must be provided with reasonable care and skill [a fault-based standard]. This does not provide sufficient consumer protection. The Draft Bill should require that services must achieve the stated result, or one which could be reasonably expected [an outcomes-based standard]. As the Bank of Ireland case demonstrated, the right to terminate a contract does not necessarily protect consumers from detriment. This report recommends an addition to the grey list - the indicative list of contract terms which may be regarded as unfair. The Government's proposals for enhanced consumer measures, which would require traders that have breached consumer law to compensate consumers, are welcome. However, private enforcers should also be able to use them. The collective proceedings regime has the potential to improve access to redress for victims of competition law breaches but the Government must clarify the certification requirements for such proceedings. The creation of rights and remedies for digital content is welcome, but the Government must do more to communicate how the proposals will work in practice. Under the draft Bill, the remedies available to consumers of digital content would depend on whether the content is intangible (such as a music download) or tangible (such as a CD). In appropriate circumstances, consumers should have the right to reject and obtain a refund irrespective of whether they purchase intangible or tangible digital content
This report examines how the Post Office closure programme is being implemented and areas where it could be improved. The Network Change Programme began in July 2007 and the final consultation is scheduled to end in October 2008. This challenging timetable has meant that consultation has been curtailed, and the whole process has been rushed. The Committee does not accept that a reduction to 7,500 offices is acceptable, and a minimum of 11,500 fixed outlets is recommended. Post Office Ltd should be clearer in its approach to public consultation about closures. The Committee is also concerned that access criteria - proximity of population to offices, local transport and geographical constraints - have not been fully taken into account, nor the principle of services being fully accessible to all. The process has been improving with more experience, but there is still room for further improvement and clarity.
UK strategic export controls annual report 2009, quarterly reports for 2010, licensing policy and review of export control legislation, first joint report of session 2010-11, fourth report from the Business, Innovation and Skills Committee of session 2010-11, second report from the Defence Committee of session 2010-11, fifth report from the Foreign Affairs Committee of session 2010-11, sixth report from the International Development Committee of session 2010-11, report, together with formal minutes, oral and written evidence
UK strategic export controls annual report 2009, quarterly reports for 2010, licensing policy and review of export control legislation, first joint report of session 2010-11, fourth report from the Business, Innovation and Skills Committee of session 2010-11, second report from the Defence Committee of session 2010-11, fifth report from the Foreign Affairs Committee of session 2010-11, sixth report from the International Development Committee of session 2010-11, report, together with formal minutes, oral and written evidence
This is the first joint report on arms export controls since the present Government took office in May 2010. As in previous years, the report reviews the Government's policy on arms exports, its administration and enforcement, and the adequacy or otherwise of current legislation. This year the Committees have paid particular attention to the Government's policy of intensifying the promotion of arms exports. The policy has come under scrutiny following the uprisings and demonstrations in recent weeks in North Africa and the wider Middle East and the armed response made to them. Since January 2011 the Government has been vigorously backpedalling on a number of arms export licence approvals to authoritarian regimes across the region. The MPs conclude that both the present Government and its predecessor misjudged the risk that arms approved for export to certain authoritarian countries in North Africa and the Middle East might be used for internal repression. The Committees welcome the revocation of a number of arms export licences to Bahrain, Egypt, Libya and Tunisia, and recommend that the Government extends immediately its review of UK arms export licences for countries in North Africa and the wider Middle East to authoritarian regimes worldwide. The Government should also set out how it intends to reconcile the potential conflict of interest between increased emphasis on promoting arms exports with the staunch upholding of human rights.
This report from the Business and Enterprise Committee (HCP 577, session 2007-08, ISBN 9780215520739) follows on from an earlier report from the same Committee on post office closures under the network change programme (HCP 292-I, session 2007-08, ISBN 9780215513663), with responses to that report contained in the appendix. This particular report considers the responses received to the earlier report and looks at the future of the network. The Committee has set out a number of conclusions and recommendations, including: the need for timeliness in the Government's and Post Office Ltd's replies to the present situation in respect of post office closures; that there is no guarantee that there will not be further closures although the Government does not desire the post office network to shrink below 11,500 outlets and is investing £1.7 billion to safeguard the network; the Committee regrets that the transfer of responsibility between Postwatch and the National Consumer Council is occuring at this critical time of change and that both Postwatch and the Post Office Ltd need to develop the new code of practice in respect of the onging network changes to the post office system and that this new code should be presented to Parliament before the Summer recess; the Committee believes there should be a presumption against the closure of post offices where possible and a recognition of their social value to customers, since there seems to be little co-ordination between regulators, the Government and government departments, especially in regard of the withdrawal of payment services from the post office network; the Committee is unclear where the £57 million of savings will come from and that the status of the Post Office Ltd, as a publicly owned monopoly supported by the taxpayer, and the Royal Mail Group as a whole, requires that there is greater financial clarity and transparency of both their financial systems and status
In "Modernise or decline: policies to maintain the universal postal service in the United Kingdom" (Cm. 7529, ISBN 9780101752923) the Hooper review confirmed that Royal Mail Group was the only company capable of delivering the service and proposed a package to deal with the Group's problems. The state should take responsibility for the historic pension deficit; there should be a new regulatory regime, in which mail services would be regulated as part of wider communications services, and, most controversially, there should be a private sector equity partner in Royal Mail. The Government accepted these proposals (Cm. 7560, ISBN 9780101756020) and introduced the Postal Services Bill (HL Bill 24, ISBN 9780108454530). The Committee supports the proposals on the pension fund and the new regulatory regime. But it does not consider that the case has been made that these two reforms can only be made as part of a package which includes the third reform - the involvement of a private sector equity partner in Royal Mail. The provisions contained in the Bill allowing such a partnership are not necessary or desirable as the Government already has powers to sell shares to enable Royal Mail to participate in a joint-venture. There is a lack of clarity over how much investment is needed or where that investment will come from, while the Government appears to have no business plan and has not indicated the use to which any private sector capital would be put. Given this uncertainty the case must rest on its non-financial benefits, and the Committee poses several questions about the proposed partnership which must be addressed.
The post office network has been reduced to 12,000 post offices and outreach services, though the Government has set access criteria for the network to ensure that it covers the whole country. This report examines what services could be provided by the network to ensure its future viability and what people want from their post office network. There is no shortage of demand for more services. The network can and should provide: mail services; financial services (especially enhanced banking services); local authority services; central government services; and broader community services. Many of the problems facing the network are a consequence of the Government moving services online, and so reducing Post Office Ltd's income. The Committee believes the Government has seriously underestimated the potential of the network to serve as a link between government and its citizens. The Digital Britain report (Cm. 7650, ISBN 9780101765022) sees the internet as the primary means of access to public services. The Committee support e-delivery of public services but however much the Government may want to encourage digital inclusion, it also needs to prevent social exclusion. 40 per cent of households do not have internet access. Although some departments are seizing the opportunity a truly national network offers to allow easy access to their services, many government departments are woefully unimaginative about the needs of their customers, and show too little respect for members of the public's right to choose how to deal with the Government.
The Local Democracy, Economic Development and Construction Bill proposes substantial changes to the way that economic development policies are delivered. The four main proposals relating to economic development are: merging the existing regional economic and spatial strategies into a single integrated regional strategy, with local authorities and regional development agencies (RDAs) being jointly responsible for its drafting and agreement; giving local authorities the duty to undertake an economic assessment of their areas; devolving funding to local authorities to enable them, rather than RDAs, to deliver economic development policies; and encouraging collaboration between local authorities in delivering these policies. The Committee notes the strong support for a level of governance between central government and local authorities for the delivery of economic development policies and business support. The Committee would have liked more evidence about the effectiveness of RDAs and it is surprised the Government has proceeded with plans to restructure the way regional policy is made before the review of RDAs the Government has commissioned from PricewaterhouseCoopers is available. The Committee expresses concern over some proposals contained in the Bill: most importantly, there needs to be a proper balance between RDAs' business focus and the role of councillors in representing the views of their constituents. The proposals in the Bill about the relationship between RDAs and local authorities place too much weight on the views of RDAs and business interests, particularly during the drafting and agreement of the single integrated regional strategy. The role of local authorities - and of the communities they represent - must be strengthened. Many of the provisions of the Bill need clarifying.
This is the Committee's third report on the Post Office: the first (3rd report session 2007-08, HC 292-I, ISBN 9780215513663) looked at the progress of the programme in which the post office network will be reduced to some 11,500 branches; the second (6th report, HC 577, ISBN 9780215520739) commented on the responses to the first Report, and raised particular concerns about the financial transparency of Post Office Ltd and Royal Mail Group, its parent company, about the adequacy of funding for outreach services, and about the relationship between Post Office Ltd and mail services. The Committee made the unusual decision to take oral evidence from Post Office Ltd and Postwatch between publishing its sixth report and receiving the Government response. This evidence has confirmed two of the Committee's concerns: the costs to Post Office Ltd of delivering Royal Mail Group services; and the financial support to sub-postmasters for providing outreach services. Royal Mail Group and Post Office Ltd should provide clear information on: what services Royal Mail Group expects Post Office Ltd to deliver for it; how Royal Mail Group determines the price it pays for these services; and how much it actually currently costs Post Office Ltd to deliver them. The Committee remains concerned that the funding provided for outreach services may be inadequate, and recommend that the National Audit Office investigate the financial arrangements for outreach services.
In July 2008 the Committee completed an inquiry into energy prices and fuel poverty but since then there have been a number of developments within the energy sector. Amongst these developments were the publication of Ofgem's energy supply probe, the Government's launch of a one billion pound package to tackle fuel poverty and the creation of the new Department of Energy and Climate Change. These events have taken place against the back-drop of a global financial and economic crisis. This report looks at the implications of these developments for the future of the UK's energy policy. This is the Committee's last report on energy-related matters, as from January 2009 responsibility for the scrutiny of energy policy will pass to the new Energy and Climate Change Committee.
The 12th report from the Business and Enterprise Committee (HCP 1052, session 2007-08) examines the Post Office Card Account (POCA) and successor arrangements. Benefit and state pensions from May 1999 were delivered by the direct payments system, with the aim that between April and March 2005 the majority of benefits and state pensions would migrate to a bank-based system, so replacing order books and girocheques. Part of this change involved the introduction of the Post Office Card Account. This account was for customers to obtain benefits who could not, or would not use a bank account (in HCP 1717, session 2005-06 (ISBN 9780215031426), the Treasury Committee's report, stated some 4.3 million people were using POCA to receive benefits, 2.3 million being pensioners). POCA therefore caters for people who do not want, or cannot use a conventional bank account, and that they are disproportionately likely to be poor or elderly and live in rural or deprived urban areas. The first contract for the Post Office Card Account expires in 2010. In May, 2007, the Government issued a tender in the Official Journal of the European Community (C2007, 5634 final). For the Committee, awarding the contract to an organisation other than the Post Office Limited will have grave effects on the Post Office network, and indirectly the taxpayer, who may need to pay an increased subsidy to maintain a national network of post offices, while supporting the commercial providers of the DWP card account. The contract has been advertised on the basis of the most economically advantageous tender, which does allow the Government to take a wide range of criteria into consideration. The Committee states, that the Government must ensure that easy and reliable access to cash and benefits remains possible for those who use POCA. Delays in the successor to POCA are destabilising Post Office Ltd, and leaving communities in rural and deprived urban areas uncertain about the future of their local post office. The Post Office network provides services of general economic importance and plays a vital social role. With the current contract expiring in April 2010, existing POCA customers will need to be transferred to a successor account.
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