Tag: Chuka Umunna

The below Parliamentary question was asked by Chuka Umunna on 2014-07-15.

To ask the Secretary of State for Business, Innovation and Skills, pursuant to the Answer of 9 April 2014, Official Report, column 292W, on Royal Mail, how many staff of the Shareholder Executive worked on the privatisation of Royal Mail.

Matthew Hancock

The 17 core staff referred to in the Answer of 9 April 2014, Official Report, column 292W, were all from the Shareholder Executive working on the Royal Mail Initial Public Offering.

The below Parliamentary question was asked by Chuka Umunna on 2015-01-15.

To ask the Secretary of State for Business, Innovation and Skills, pursuant to the Answer of 1 October 2014 to Question 206270, what (a) inquiries have been made and (b) investigations have been carried out by (i) Ministers in his Department, (ii) officials in his Department and (iii) Business Bank staff into allegations of misselling relating to the Enterprise Finance Guarantee Scheme since 2012.

Matthew Hancock

The Department for Business, Innovation and Skills (BIS) has been pro-active in its engagement with Enterprise Finance Guarantee (EFG) lenders, with regular audits of the use of the scheme since its launch. In February 2014 BIS wrote to all lenders participating in the EFG scheme reiterating their operational responsibilities, including the way in which it is presented to their front line staff and customers. Following evidence of concerns of lending by the Royal Bank of Scotland (RBS) in August 2014, BIS officials asked RBS to instigate an internal review into this issue.

My Rt Hon Friend the Secretary of State for Business, Innovation and Skills has met with RBS to discuss these findings, and I have asked the British Business Bank – which now administers the programme on behalf of the Department – to continue to closely monitor the action being taken by RBS to address these issues. I have been given assurance from RBS that they will put right any cases where they are at fault to ensure that no detriment is suffered by either the borrower or the taxpayer.

The Enterprise Finance Guarantee remains a valuable programme which helps viable businesses gain access to finance where they have insufficient security or an inadequate track record to access finance.

The below Parliamentary question was asked by Chuka Umunna on 2014-07-15.

To ask the Secretary of State for Business, Innovation and Skills, what discussions took place between (a) Ministers in his Department, (b) officials, (c) the Financial Adviser to HM Government and (d) the banking syndicate working on the privatisation of Royal Mail with priority investors on the length of time shares in the privatised business would continue to be held.

Matthew Hancock

We did not seek assurances from priority investors on the length of time that they would hold the Royal Mail shares that they bought.

Our intention was to ensure that RM started out with a core of long-term, stable investors who understood the business, along with some hedge fund participation to ensure liquidity in the aftermarket. We achieved that.

We did not expect the shareholder register to remain static. Some investors have sold their shares, presumably because the share price reached their target price. Others have bought shares. There is still a wide range of views on the value of this company.

The below Parliamentary question was asked by Chuka Umunna on 2015-01-15.

To ask the Secretary of State for Business, Innovation and Skills, pursuant to the Answer of 1 October 2014 to Question 206270, what discussions and meetings (a) Ministers in his Department, (b) officials in his Department and (c) Business Bank staff have had with (i) participating lenders and (ii) business organisations where allegations of misselling relating to the Enterprise Finance Guarantee Scheme were discussed since 2012.

Matthew Hancock

The British Business Bank maintains regular contact with all of the main lenders participating in the Enterprise Finance Guarantee scheme. Quarterly meetings are held at a senior level and the allegations of mis-selling have been on the agenda of those meetings since early in 2014. In addition, operational meetings take place on a regular basis. From August 2014 onwards more frequent senior level meetings have taken place with the Royal Bank of Scotland (RBS). At a meeting in August 2014 RBS agreed to our request that they should undertake to conduct an internal review. The findings of that review and a proposed course of action were presented at a meeting with the British Business Bank in December 2014, and senior executives from RBS met the Secretary of State on 14 January 2015. The British Business Bank has also discussed the ‘mis-selling’ allegations with the British Bankers’ Association and the Lending Standards Board, each on one occasion.

The below Parliamentary question was asked by Chuka Umunna on 2014-07-15.

To ask the Secretary of State for Environment, Food and Rural Affairs, with reference to the Answer of 3 March 2014, Official Report, column 624W, on Floods: Business, how many Repair and Renewal Grant applications have been (a) received and (b) processed.

Dan Rogerson

The ‘Repair and Renew’ grant was launched on 1 April 2014. Applications for the grant are being received and processed by local authorities, who may then invoice Defra every quarter. Defra began receiving invoices from local authorities in July.

The below Parliamentary question was asked by Chuka Umunna on 2015-01-15.

To ask the Secretary of State for Business, Innovation and Skills, pursuant to the Answer of 1 October 2014 to Question 206270, what (a) safeguards and (b) monitoring processes and producers are operated by his Department or the Business Bank in relation to the Enterprise Finance Guarantee Scheme; what scrutiny of lenders takes place routinely; and what data his Department collects on the operation of the Enterprise Finance Guarantee Scheme by lenders.

Matthew Hancock

Participating lenders under the Enterprise Finance Guarantee (EFG) scheme are subject to a continuous cycle of risk based and thematic independent audits to monitor their compliance with the scheme. Regular communications and meetings take place with lenders to discuss the results of the audits, additional correspondence and EFG related complaints. Oversight is enhanced through analysis by the British Business Bank of the transactional data recorded by the lenders.

The below Parliamentary question was asked by Chuka Umunna on 2014-07-15.

To ask the Secretary of State for Business, Innovation and Skills, pursuant to the Answer to the hon. Member for Edinburgh South of 24 June 2014, Official Report, column 167W, on Royal Mail, what correspondence his Department has had with the syndicate of banks involved in the initial public offering on (a) the payment of the discretionary fee and (b) the length of the stabilisation period set out in the engagement letter.

Matthew Hancock

The Department has not had any correspondence with the syndicate of banks about the payment of the discretionary fee and the length of the stabilisation period.

The below Parliamentary question was asked by Chuka Umunna on 2015-01-15.

To ask the Secretary of State for Business, Innovation and Skills, pursuant to the Answer of 1 October 2014 to Question 206270, what the operational responsibilities of lenders under the Enterprise Finance Guarantee Scheme are; and what steps his Department has taken to ensure these are upheld.

Matthew Hancock

We require all lenders participating in the Enterprise Finance Guarantee (EFG) scheme to give clear and accurate information to borrowers and to ensure that their customer-facing staff understand the way in which the scheme operates. Lenders are provided with a comprehensive EFG scheme manual and are subject to a continuous cycle of independent external audit to monitor their compliance with the scheme terms. Following evidence of concerns of lending by the Royal Bank of Scotland (RBS) in August 2014, my officials asked RBS to instigate an internal review into this issue, and the Secretary of State has subsequently met with RBS to discuss these findings.

EFG lenders follow their normal procedures according to internal policies throughout the administrative lifecycle of an EFG-backed loan. Lenders confirm eligibility of applicants and provide a transactional record to the British Business Bank – which now administers the programme on behalf of the Department – through an on-line tool. Regular dialogue is maintained between the British Business Bank and the lenders.

The below Parliamentary question was asked by Chuka Umunna on 2014-07-15.

To ask the Secretary of State for Business, Innovation and Skills, with reference to the Answer of 5 June 2013, Official Report, column 1152W, on buildings, how many members of staff are employed at each of his Department’s office premises.

Jo Swinson

The following table shows how many members of staff are currently employed at each of the Department’s office premises (these include core BIS and UKTI staff only).

BIS Office	Location	Region	No of staff
1 Victoria Street	London	London	2613
St Pauls Place	Sheffield	South Yorkshire	232
Alexandra House	Leeds	West Yorkshire	16
Apex Court	Nottingham	East Midlands	29
Arndale Tower	Manchester	North West	20
The Axis—Birmingham	Birmingham	West Midlands	5
Bridge House	Guildford	South East	10
Cannon House	Birmingham	West Midlands	0
Castle View House	Runcorn	North West	9
Companies House	Cardiff	Wales	49
Europa House	Glasgow	Scotland	26
Exchange House	London	London	21
IOS Manchester	Manchester	North West	17
Larkhill	Wiltshire	South West	16
Moongate House	Gateshead	North East	18
Mowden Hall	Darlington	North East	9
NTI Building	Birmingham	West Midlands	0
Queensway House	Billingham	North East	1
Stanley Barracks	Dorset	South West	12
Stella House	Newcastle	North East	4
Temple Quays	Bristol	South West	15
Warrington	Warrington	North West	6
Victoria House	London	London	34
Westfield House	London	London	0

The below Parliamentary question was asked by Chuka Umunna on 2015-01-15.

To ask the Secretary of State for Business, Innovation and Skills, if he will carry out an investigation into allegations of misselling to businesses by lenders relating to loans made under the Enterprise Finance Guarantee Scheme.

Matthew Hancock

The Department for Business, Innovation and Skills (BIS) has been pro-active in its engagement with Enterprise Finance Guarantee (EFG) lenders, with regular audits of the use of the scheme since its launch. In February 2014 BIS wrote to all lenders participating in the EFG scheme reiterating their operational responsibilities, including the way in which it is presented to their front line staff and customers. Following evidence of concerns of lending by the Royal Bank of Scotland (RBS) in August 2014, BIS officials asked RBS to instigate an internal review into this issue.

My Rt Hon Friend the Secretary of State for Business, Innovation and Skills has met with RBS to discuss these findings, and I have asked the British Business Bank – which now administers the programme on behalf of the Department – to continue to closely monitor the action being taken by RBS to address these issues. I have been given assurance from RBS that they will put right any cases where they are at fault to ensure that no detriment is suffered by either the borrower or the taxpayer.

The Enterprise Finance Guarantee remains a valuable programme which helps viable businesses gain access to finance where they have insufficient security or an inadequate track record to access finance.