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BHS
25 April 2016
Lead MP
Anna Soubry
Debate Type
General Debate
Tags
EconomyTaxationEmploymentBusiness & TradeBenefits & WelfareStandards & Ethics
Other Contributors: 28
At a Glance
Anna Soubry raised concerns about bhs in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
Discussed the impact of BHS entering administration on employees and creditors. Noted that approximately 8,500 to 11,000 people work for BHS across the UK. Highlighted BHS's long-standing presence in British retail and its importance in the sector. Addressed concerns about consumer trends shifting towards online shopping. Mentioned plans by administrators to sell BHS as a going concern and the Government’s readiness to offer assistance if necessary, including support through Jobcentre Plus. Noted investigations into allegations concerning the pension scheme. Acknowledged the UK retail economy's significance, noting its contribution of £340 billion in value excluding fuel sales and 3 million jobs.
Angela Eagle
Lab
Wallasey
Expressed sympathy for BHS staff and their families. Highlighted the challenges facing high street retailers due to increased competition from online retailing, questioning the conduct of Sir Philip Green during his ownership of BHS. Criticised the former owner’s alleged extraction of significant value from the business while causing a pension deficit of £571 million. Raised concerns about the liability for pension deficits left by irresponsible owners and questioned whether current law ensures accountability.
Mark Field
Con
Sheffield Hallam
Agreed with the Minister that the situation regarding BHS should not be used as a political football. Suggested an urgent inquiry into the conduct of BHS’s erstwhile and current owners to ensure the Pension Protection Fund is not being abused.
Hannah Bardell
SNP
Livingston
Expressed solidarity with BHS workers and families, particularly in Scotland. Criticised the government for failing to stimulate economic recovery. Highlighted media claims about the financial affairs of BHS and asked for a serious investigation into these matters. Requested a commitment from the UK Government to leave no avenue unexplored in securing the future of BHS and its workers.
John Baron
Con
Tens of thousands of BHS pensioners will suffer from this news. Questions are raised about how a £5 million fund became a £571 million deficit and if there was any wrongdoing.
Iain Wright
Lab
Thanked the Minister for visiting Tata Steel in Hartlepool, then raised concerns over BHS. Allegations that Sir Philip Green loaded company with debt, did not invest and paid his wife £400 million in dividends are serious. Asked if the Government will consider changing company legislation to prevent former owners from walking away from fallout.
Peter Bottomley
Con
Visited BHS shop in Worthing, told staff they have support and urged them to keep jobs safe and secure best possible pensions.
Joan Ryan
Lab
Reiterated concerns over pension fund deficit turning into a £571 million deficit while company paid hundreds of millions to Sir Philip Green. Asked the Minister to encourage BHS to work with trade unions.
Kevin Foster
Con
Concerned about staff at Torquay store, asked if Government will offer support to councils for finding new tenants for anchor stores on high streets.
Alison Thewliss
SNP
Glasgow Central
Representing Glasgow city centre with two BHS stores. Asked about job security for subcontractors and supply chain jobs beyond directly employed workers by BHS, seeking Minister's work with Scottish Government.
Richard Fuller
Con
North Bedfordshire
Suggested previous owner may have laughed all the way to bank when selling business. Asked if Government will write to Sir Philip Green and look at PPF legislation to ensure it is strong enough.
Melanie Onn
Lab
Great Grimsby
Expressed concern about BHS closure affecting local community in Great Grimsby, which has seen multiple store closures. Asked if Government will investigate claims of £100 million negative goodwill funds being diverted offshore.
Asked whether the pension trustees of BHS signed off on the sale and if there is a loophole that needs fixing.
Anna Soubry
Con
Undertook to make inquiries about the pension trustees' involvement in the deal, promised to write to hon. Members with findings, confirmed robust investigation by pensions regulator and expressed confidence in it.
Angela Rayner
Lab
Ashton-under-Lyne
Associated herself with comments on Philip Green's conduct, welcomed minister’s comments about the pension regulator’s investigation, asked for assurance that the pensions regulator has enough resources to respond timely and prevent such incidents in future.
Oliver Colvile
Con
Asked whether Government's reforms on business rates would help BHS property in his constituency.
Greg Mulholland
Lib Dem
Urged the Minister to reconsider the freeze on further education budgets so that those in retail can be upskilled, highlighted the need for modernisation given internet challenges.
Philip Hollobone
Con
Pointed out Britain is spending more on shops than ever before and has become the biggest recipient of foreign direct investment in retail, asked if Government plans to cut corporation tax would help successful retailers.
Cat Smith
Lab
Lancaster and Wyre
Asked Minister to meet USDAW, a shopworkers' union, to see what work the Government can do to support high streets.
Steven Baker
Con
Suggested looking at incentives related to excess debt and changing institutions around corporations so that such situations don't repeat themselves.
Roger Mullin
Lab
Asked the Minister to understand why many employees would feel pension regulator should seek entire actuarial deficit from Sir Philip Green.
Mark Spencer
Con
Encouraged the administrator to look forward, not back and ensured that administrator understood protecting pensions and jobs means finding a credible buyer for BHS group.
Gavin Shuker
Lab
Asked Minister about rebalancing gender efforts in her Department's industrial strategies to ensure retail sector is not lost from high streets.
John Howell
Con
Believed BHS looking for a buyer and failing could indicate fundamental structural difficulties in the retail sector which needs addressing separately.
Jo Stevens
Lab
Cardiff East
Expressed concern about BHS workers' jobs in her constituency and questioned the Insolvency Service's capability given the proposed cuts by the Chancellor.
Welcomed the Minister's comments on trade unions but asked for assurance that administrators will ensure the company complies with the law to protect employees' interests.
Asked whether the Bill Grimsey report supersedes Mary Portas’s recommendations and expressed scepticism over its findings, particularly regarding high street retail dependency.
Diana R. Johnson
Lab
Kingston upon Hull North and Cottingham
Criticised the Government for not publishing a report on Comet's administration and suggested lessons could be drawn from that case to inform BHS' situation.
Asked about transparency in regulator investigations concerning pension reductions faced by employees and commented on the changing nature of retailing.
Government Response
EconomyTaxationEmploymentBusiness & TradeBenefits & WelfareStandards & Ethics
Government Response
Emphasised concern for BHS employees and creditors, rejecting accusations of political point-scoring. Agreed to investigate claims about misconduct by directors and confirmed the seriousness with which regulatory bodies take allegations of impropriety. Welcomed comments from other speakers and assured that the team of Ministers will keep a keen eye on developments. Allegations of impropriety by directors are taken very seriously and investigated thoroughly. Pensions regulator is already looking into these matters. Made inquiries about pension trustees involvement, confirmed robust investigation by pensions regulator, expressed confidence in it, pointed out Britain’s success in retail investment and job creation despite challenges. Emphasised that business rates reforms are likely to benefit small businesses more. Responded to concerns raised by expressing confidence in the Insolvency Service, administrators' compliance with legal requirements, and the value of the Bill Grimsey report. She also assured transparency in regulator investigations.
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Assessment & feedback
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