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THE PARLIAMENTARY DEBATES

OFFICIAL REPORT

IN THE SECOND SESSION OF THE FIFTY-SECOND PARLIAMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND [WHICH OPENED 7 MAY 1997]

FORTY-EIGHTH YEAR OF THE REIGN OF HER MAJESTY QUEEN ELIZABETH II

SIXTH SERIES

VOLUME 329

SEVENTH VOLUME OF SESSION 1998-99

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House of Commons

Tuesday 13 April 1999

The House met at half-past Two o'clock

PRAYERS

[Madam Speaker in the Chair]

Oral Answers to Questions

ENVIRONMENT, TRANSPORT AND THE REGIONS

The Secretary of State was asked--

Builders

1. Mr. John Healey (Wentworth): What plans he has to take action against incompetent and dishonest builders; and if he will make a statement. [78815]

The Minister for London and Construction (Mr. Nick Raynsford): The Government are determined to combat the scourge of cowboy builders, who cause immense misery and serious problems for thousands of consumers and damage the image of the whole construction industry. Our work has taken another major step forward in the last week with the cowboy working group's interim report, which sets out detailed proposals for a practical quality mark and approved-list scheme which was issued for consultation on Friday.

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Mr. Healey: I thank my hon. Friend for confirmation of the plans for the quality mark scheme, which was well received by reputable builders to whom I spoke in my constituency over the weekend, and which promises a way to deal with the cowboys who rip people off with overpriced, shoddy and sometimes unsafe work. Will my hon. Friend give a little more detail of how the scheme will encourage the best and root out the worst? If this voluntary scheme fails, will he undertake to legislate?

Mr. Raynsford: My hon. Friend makes an important point. The scheme has been widely welcomed by reputable builders who recognise the damage being done to their reputation by the unscrupulous. The quality mark scheme is based on simple principles: builders who subscribe to it must meet guaranteed standards of quality performance and be subject to proper procedures for complaint handling and to disciplinary procedures, and their work must be underpinned by performance and insurance-backed warranties. That assures customers that when they select a builder with the quality mark, they will get a reputable builder, with proper channels of redress if things go wrong and that they will not fall into the hands of unscrupulous cowboys.

Mr. Eric Pickles (Brentwood and Ongar): One of the companies in my constituency of which I am particularly proud is Exor Management Services, which has set up the Sinclair vetting directory, which is similar to what the Government are seeking to do. The firm points out that vetting is good only on the day of publication of the list. It suggests that one way to improve the Government scheme would be to introduce continuous vetting, so that someone does not get through the net by being good at just one particular point. Will the Minister agree to his officials meeting my constituent company, as its proposal might avoid duplication and might even save the Government some money?

Mr. Raynsford: The hon. Gentleman makes a perfectly fair point. There is a need for continuous monitoring of builders' performance to ensure the integrity of the quality

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mark scheme. He is right to say that the views of the industry should be taken into account, which is why the report has been published for consultation. We shall welcome the views of the hon. Gentleman's constituent firm and others during the consultation period, with the aim of getting the scheme as good as it possibly can be when we come to launch it, we hope in the autumn.

Mr. David Chaytor (Bury, North): May I bring to my hon. Friend the Minister's attention the activities of a company operating in my constituency? Formerly known as Midland Coating, it went into liquidation and subsequently reinvented itself as Raincheck. That company also went into liquidation and recently reinvented itself as Sealpoint. Will my hon. Friend assure the House that he will discuss the activities of this and similar phoenix companies with colleagues at the Department of Trade and Industry who are well aware of the problem, with a view to taking action so that companies cannot simply reinvent themselves with a different name and continue their unscrupulous activities?

Mr. Raynsford: We are in close contact with colleagues at the DTI on broader consumer protection issues, including effective measures to be taken against rogue traders. I certainly hope that they will be able to come up with proposals to make it easier to deal with the kind of problems created by the firms to which my hon. Friend refers. The important point about the quality mark scheme is that it will give customers knowledge of reputable firms which meet approved standards; and firms such as those to which my hon. Friend refers will not qualify for the quality mark, so any customers who use them will do so at their own risk.

Mr. Andrew Stunell (Hazel Grove): The Minister's announcement is certainly welcome, although some eyebrows have been raised over the membership of the cowboy working party. Does he accept that many of the problems are created by door-to-door building salesmen, especially those in the double glazing industry? Will he assure us that such people will be brought within the scope of the working party's examination? Does he accept that if he were to extend the Energy Saving Trust's scheme, which provides help for poor and low-income families to install energy-saving and energy-efficient equipment in their homes, that would cut off that part of the industry, thus providing good value for the Government and reducing CO 2 emissions?

Mr. Raynsford: I am sorry that the hon. Gentleman should have impugned the integrity of the members of the cowboy working party, which is led in a distinguished way by Tony Merricks and which has produced a report that has received widespread support and encouragement from the construction industry. The hon. Gentleman's proposals are slightly odd, given that we have increased the sums available for the home energy efficiency and home agency schemes the HEES and HIA schemes. However, that does not obviate the need for a proper scheme to ensure that any member of the public who is approached by a door-to-door salesman, or by any other builder or person masquerading as a builder, should be able to gauge whether that person is reputable. The quality mark scheme that we propose to introduce will provide exactly that guarantee.

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Rail Transport

2. Mr. Piara S. Khabra (Ealing, Southall): What is his most recent estimate of the amount of goods transported by rail in 1998-99; and if he will make a statement. [78816]

The Secretary of State for the Environment, Transport and the Regions (Mr. John Prescott): The Department's figures for the financial year 1997-98--the last full year for which we have figures--show a 12 per cent. growth in freight carried by rail. That growth continues. In the first half of the financial year 1998-99--April 1998 to September 1998--8.9 billion tonne km of freight went by rail compared with 8.3 billion tonne km over the same period in the financial year 1997-98. That shows an extraordinary increase in the growth of rail freight.

Mr. Khabra: I welcome the Minister's reply, but what steps is the Department taking to encourage, where possible, companies to use rail instead of road to transport goods? Does he agree that a reduction in the use of roads will help to improve air quality as well as the environment generally?

Mr. Prescott: It is our intention, as we pointed out in the White Paper on integrated transport, to achieve a sustainable freight system for air, sea, ship, rail and road. We have outlined some of the policies for that. One of the first things that we did was almost to double the amount of freight grants that were available. We have increased that amount again, and it is being fully used. We have also made grants available to freight integration centres and are improving port facilities. All that has led to the increase, and we look to a further one.

Mr. Graham Brady (Altrincham and Sale, West): Does the right hon. Gentleman agree that the welcome increases in rail freight can continue only if there is continuing public support for such increases? In constituencies such as mine, densely populated residential areas are being badly affected by vibration and noise from particular flows of freight. That is undermining public support for greater use of rail freight, which is very bad. In October, I raised this subject with the Under-Secretary of State for the Environment, Transport and the Regions, the hon. Member for Mansfield (Mr. Meale). Will he undertake to have another look at rail freight going to the Brunner Mond plant in Cheshire?

Mr. Prescott: I always talk to my colleagues about these matters. Any transport matter has environmental consequences, whether it be noise or exhaust emissions. Those are a matter of concern in our comprehensive approach. I am pleased at the growth in rail traffic, which has also occurred through the channel tunnel--much of it due to the changes that we have made in policy. [Hon. Members: "It is due to privatisation."] As for those who shout about privatisation, it was an absolute scandal to give away rail companies and pay £250 million, not for those companies but for their bonus of free travel through the channel tunnel.

Mrs. Gwyneth Dunwoody (Crewe and Nantwich): Is my right hon. Friend aware that the Government's

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excellent work to encourage the transport of freight by rail will be undermined if Railtrack is not prepared to put money into the pinch-points in the railway system that are holding up the movement of goods? Will he take it on himself to have a short, straightforward, Anglo Saxon conversation with the chief executive of Railtrack about the difference between wish-lists, supported by even more Government money, and investment programmes that could be funded by Railtrack's very large profits?

Mr. Prescott: Investment is indeed the key. There is not sufficient rail capacity to meet the increasing demands of freight. That is why we have ordered a look at the new rail route to take international carriages, and why we have renegotiated arrangements, which collapsed under the previous Administration, for the channel tunnel rail link. I very much agree with my hon. Friend about wish-lists for investment. As she knows, I have appointed a pretty tough Strategic Rail Authority chairman and a new regulator, who I believe will begin to make a difference in Railtrack's approach to delivering its promises.

Mr. Bernard Jenkin (North Essex): Does the Secretary of State agree that we should be doing everything possible to help Railtrack deliver its £27 billion investment programme, which would be the biggest ever investment programme in the railways and the biggest ever investment by a United Kingdom private company? To that end, would not it be sensible to drop the proposal to divert the subsidy from the train operating companies to Railtrack, which exists only to give the Deputy Prime Minister political leverage that he does not require? Precisely who supports his proposal for changing the subsidy arrangements? Does his new rail supremo, Sir Alastair Morton, whose appointment we very much welcome, support the proposal or, like the rest of the industry, does he think that it is absolutely crazy and will endanger the investment that Railtrack is offering?

Mr. Prescott: It is very difficult to keep up with the Opposition. I read a statement attributed to the hon. Gentleman that he was claiming the idea himself. I was the one who asked the regulator to review the subsidies being given to the franchise operators and to consider whether those subsidies should be given to Railtrack because of the failure to invest in the infrastructure, which my hon. Friend the Member for Crewe and Nantwich (Mrs. Dunwoody) mentioned. I made the reference to the regulator and I believe that his report will be out in the next few days.

Mr. Jenkin: Who supports it?

Mr. Prescott: I believe that there is considerable support. If the hon. Gentleman reads the Booz Allen report, commissioned by the regulator, which has been published, he will see that we are the ones who are making common sense about the railway system.


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