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Telephone Charges (Internet)
3. Mr. Andrew Mackinlay (Thurrock): If he will make it his policy to take powers to enable him to reduce telephone charges for schools, volunteer organisations and residential users of the internet; and if he will make a statement. [86493]
The Minister for Small Firms, Trade and Industry (Mr. Michael Wills): The Government's policy is to make fast and affordable internet access available as widely as possible, and competition is the best way to deliver that. It drives innovation, reduces prices and increases choice, and we are now seeing the beneficial results of that in the UK internet market.
We accept that we need to help ensure that the advantages of this liberating and empowering new technology are spread as widely as possible to those who might otherwise not be able to enjoy them. A number of initiatives have been taken. As my hon. Friend knows, Oftel is responsible for regulating the telecommunications industry. It has negotiated with the industry reduced tariff packages for schools. I understand from Oftel today that a number of operators have now agreed, in principle, to develop similar lower-priced service packages for public libraries, further education colleges, university for industry learning centres and citizens advice bureaux. Those new tariffs should be available from next year.
Mr. Mackinlay:
I am almost lost for words, which is frustrating. I thank the Minister for that, but I hope that he will not put too much trust in competition to keep prices down. The rigorous and vigorous watching of cable and telecommunication providers should continue because, as more and more people seek to exploit the internet for recreational and learning purposes, it could be a licence to print money for those people unless there is intervention by the various agencies referred to and by government.
Mr. Wills:
I thank my hon. Friend for such a useful question and such a useful contribution to the debate.
4. Mr. David Drew (Stroud):
What plans he has to increase the number of business advice services in rural areas. [86494]
The Minister for Small Firms, Trade and Industry (Mr. Michael Wills):
In March we announced the setting up of the Small Business Service, which will provide a
The Small Business Service will be for all businesses, including those in rural areas. We envisage enhanced support for start-ups and for the self-employed, which will have a beneficial impact in rural areas. We will shortly be issuing a consultative document and I would welcome views from anyone on the special needs not currently addressed under existing provision. I would particularly welcome views from my hon. Friend, who is an authority on rural issues.
Mr. Drew:
I welcome my hon. Friend's remarks and, like me, he will welcome the launch this afternoon of the rural audit conducted by the rural group of Labour Members of Parliament, which has been well-reviewed in today's press. Among the many issues that it highlights is the need for job creation in rural areas and, although we obviously congratulate the consortium of rural training and enterprise councils on the much good work that it has done, we emphasise the need for additional resources in rural areas and, in particular, more localised help and specific assistance with IT, planning and marketing. When the Minister visits my constituency tomorrow, would he perhaps make a statement on how that assistance could be brought to bear?
Mr. Wills:
I am looking forward to my visit to Stroud tomorrow, and I welcome the findings of the report that my hon. Friend and his colleagues have put together, which I am sure will make a valuable contribution. We are deeply aware of the needs of rural areas, and we have made a specific commitment to rural regeneration. For example, there is an identified rural regeneration element in the single regeneration budget, and I am sure that we will not let down my hon. Friend and all our rural colleagues.
Mr. Brian Cotter (Weston-super-Mare):
I, too, congratulate the hon. Member for Tiverton and Honiton (Mrs. Browning) on her new post on the Opposition Front Bench.
The Liberal Democrats are concerned not only about the rural delivery of business services, but about their delivery nationally. A lot of public money is already spent on the TECs, Business Links, regional development agencies and many other service delivery organisations. The Department of Trade and Industry could be about to add to the confusion with the Small Business Service. As part of the consultation about the SBS, will the Minister undertake to conduct a full review of all other business services?
Mr. Wills:
Of course we will do that; it is part of the process on which we have been embarked since March, when we announced the establishment of the SBS. The hon. Gentleman obviously has certain views on that and we look forward to hearing about them in more detail.
Mr. Jeffrey Donaldson (Lagan Valley):
It is our experience in Northern Ireland that the rural economy has suffered significantly, particularly because of the difficulties in agriculture. Will the Department give us a commitment that it will put pressure on planners throughout the United Kingdom to facilitate change-of-use applications for redundant farm buildings,
Mr. Wills:
The hon. Gentleman makes an important point. We know that planning can be a key issue, particularly for small businesses. We are setting up the SBS precisely because we want to make sure that the views of small businesses on that and other issues are heard clearly in Whitehall when policy is made. When the hon. Gentleman sees the consultation document he will realise how determined we are that those issues are discussed properly in Whitehall and that all policies think small first.
Mrs. Angela Browning (Tiverton and Honiton):
I thank both the Minister for Competition and Consumer Affairs and the hon. Member for Weston-super-Mare (Mr. Cotter) for their kind words. At least, I think they were kind words. I am disappointed that the Secretary of State is not present; I understand that he is in Japan, and I hope that he is securing some British business there.
Mr. John Bercow (Buckingham):
He is scared of the hon. Lady.
Mrs. Browning:
I must say that, when I was shadowing the Secretary of State as an Education and Employment spokesman, we had one or two sparring matches; but if I had to come back and haunt any member of the Government, there is no one whom I would wish to haunt more than the right hon. Gentleman. I look forward to seeing him on future occasions.
Rural businesses are very dependent on the farming community, and on its prosperity. The Secretary of State has had the Monopolies and Mergers Commission report on Milk Marque on his desk since 20 April. This does not just concern farmers; it concerns the many businesses and industries that rely on them, and desperately want to be able to process milk into viable products that we can sell in this country.
Will the Minister guarantee, on behalf of his right hon. Friend the Secretary of State, that an announcement will be made before the next milk selling round, which will begin in July? I know that it is on record that a statement, or an announcement, will be made before the House rises for the recess, but the timing is critical for farmers. If the announcement is not made before the beginning of the selling round, many small dairy farmers will see that day on their calendars as the day when they must decide whether to stay in farming or get out.
Will the Minister also confirm--because it is so important to rural businesses--that the announcement will be made on the Floor of the House, rather than outside?
Mr. Wills:
I welcome the hon. Lady to her new responsibilities. I am well aware of the issue that she has raised--I have received representations in my constituency from farmers who are clearly concerned about the outcome--and I can tell her that an announcement will be made shortly. As I am sure she will understand, I cannot go further at this stage, but I assure her that the Secretary of State considers the issue to be very important.
5. Mr. Ben Chapman (Wirral, South):
If he will make a statement on the significance that energy policy has in the Government's social exclusion agenda. [86495]
The Minister for Energy and Industry (Mr. John Battle):
Given that more than 5 million households in the United Kingdom are spending over 10 per cent. of their incomes on fuel bills, fuel poverty is a serious matter. It is a crucial aspect of the social exclusion agenda, and we are tackling it. I had a meeting with the industry on 18 May to press it to take action, and to develop and pool ideas for best practice. I also pressed the regulator to present a revised social action plan to deal with fuel poverty, so that all consumers--not just those who have access to good deals by means of direct debit--benefit from competition.
Mr. Chapman:
Is my hon. Friend aware that Scottish Power and MANWEB--the Merseyside and North-West electricity board--have introduced pilot schemes, along with the Energy Action Grants Agency, to help low-income consumers to spread their payments and weatherproof their bills? Those organisations have distributed more than 100,000 low-energy light bulbs through Age Concern. Surely that is a serious contribution to the social exclusion agenda.
Will my hon. Friend ensure that any legislation that is introduced places a burden on the regulator to ensure that the interests of low-income consumers are promoted and protected?
Mr. Battle:
I know of the scheme to which my hon. Friend refers. It includes not only specific packages for low-income families, but advice on benefits, budgetary advice and the supply of fuel on terms that give such families an extra deal: lower bills, along with fixed weekly payments at an agreed rate. That is a very good offer.
If those companies can do this, why cannot others? I know that Centrica and Help the Aged, along with the gas industry, have launched a two-year plan to combat fuel poverty, but we need to widen that best practice network. In our White Paper "A Fair Deal for Consumers", we announced that we would include in any Bill on energy regulation statutory guidance for the regulator on fuel poverty, social obligation and environmental responsibilities. We may produce such a Bill in early autumn; at this stage, I merely ask the companies to get together, to anticipate the legislation and to act now. If they do so, regulation may be lighter. Indeed, ultimately we may not need it. Companies should exercise common sense in tackling fuel poverty, rather than dismissing the poor.
Mr. Owen Paterson (North Shropshire):
One of the most dramatic ways in which to be excluded from society is to be made unemployed. Ninety-seven per cent. of goods in rural areas are transported by diesel-powered vans and lorries, and haulage businesses throughout the country are making workers redundant because of the Government's energy policies. When will they wake up to the real damage being done to real people on the ground?
Mr. Battle:
I know that the main question is on fuel poverty, but I do not mind widening the debate to a
Mr. David Chaytor (Bury, North):
I congratulate the Government on the work done so far on fuel poverty, but does the Minister agree that one of its key causes is the standing charge, because it is inevitable that low-income households pay disproportionately more for their gas and electricity than the rest of the population? Will he assure the House that he will continue to press the regulator to tackle the inequities of that system?
Mr. Battle:
I agree with my hon. Friend about standing charges. He may know that we have already asked the regulator to examine, for example, the wide regional variations in charges. Some companies do not have a standing charge, but low-volume customers can pay a high price.
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