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To ask Her Majesty's Government what grants were made to each of the (1) cross-Solent ferry operators, and (2) Isles of Scilly operators, during the temporary suspension of competition law due to the COVID-19 pandemic; what restrictions, if any, were placed on the grants; and whether they were non-returnable.
To ask Her Majesty's Government what grants were made to each of the (1) cross-Solent ferry operators, and (2) Isles of Scilly operators, during the temporary suspension of competition law due to the COVID-19 pandemic; what restrictions, if any, were placed on the grants; and whether they were non-returnable.
From April 2020 – April 2021 the Government made a series of grant payments to the Isle of Wight Council and Council of the Isles of Scilly to safeguard lifeline services. In total over £8 million of funding was provided to the Isle of Wight Council for the cross-Solent ferry operators and over £7.5 million to the Council of the Isles of Scilly for Isles of Scilly operators. These grants were paid to the local authorities for the provision of lifeline services, as set out within the conditions of the Memorandum of Understanding agreements made between the individual Councils and the Department for Transport. They were returnable under specific conditions being met.
Before grant payments were provided to the Councils, the Department, alongside external financial advisors, undertook rigorous financial checks to ensure the levels of funding were appropriate. This included analysis of the operator’s financial reports, which included data on the revenue and costs of operating the agreed routes to the minimum service level. Throughout the duration of the scheme, regular checks and monitoring took place to ensure the continued need for support.
To ask Her Majesty's Government what financial checks they made before awarding grants to each of the cross-Solent ferry operators during the temporary suspension of competition law due to the COVID-19 pandemic.
To ask Her Majesty's Government what financial checks they made before awarding grants to each of the cross-Solent ferry operators during the temporary suspension of competition law due to the COVID-19 pandemic.
From April 2020 – April 2021 the Government made a series of grant payments to the Isle of Wight Council and Council of the Isles of Scilly to safeguard lifeline services. In total over £8 million of funding was provided to the Isle of Wight Council for the cross-Solent ferry operators and over £7.5 million to the Council of the Isles of Scilly for Isles of Scilly operators. These grants were paid to the local authorities for the provision of lifeline services, as set out within the conditions of the Memorandum of Understanding agreements made between the individual Councils and the Department for Transport. They were returnable under specific conditions being met.
Before grant payments were provided to the Councils, the Department, alongside external financial advisors, undertook rigorous financial checks to ensure the levels of funding were appropriate. This included analysis of the operator’s financial reports, which included data on the revenue and costs of operating the agreed routes to the minimum service level. Throughout the duration of the scheme, regular checks and monitoring took place to ensure the continued need for support.
The Government are currently consulting on a range of reforms to competition and policy in order to more effectively and swiftly address anti-competitive behaviour. The consultation includes
many of the recommendations that my hon. Friend made in his excellent report. As part of it, we welcome suggestions from small businesses about how the system can be improved.
The Government are currently consulting on a range of reforms to competition and policy in order to more effectively and swiftly address anti-competitive behaviour. The consultation includes
many of the recommendations that my hon. Friend made in his excellent report. As part of it, we welcome suggestions from small businesses about how the system can be improved.
The Secretary of State understands that anti-competitive behaviour is just as likely among small firms as among big ones. The effects are terrible: fast-growing small firms that are future world beaters get throttled by slightly bigger incumbents, levelling up is slower and less likely because competition and productivity are much lower outside London, and residents are left with less choice and more vulnerability to rip-offs. Does he agree that the justice system plays a central role in tackling the problem and ensuring that small firms have some kind of redress? Will he therefore look closely at the proposal in my Government-commissioned report for a new tier of local county competition courts?
The Secretary of State understands that anti-competitive behaviour is just as likely among small firms as among big ones. The effects are terrible: fast-growing small firms that are future world beaters get throttled by slightly bigger incumbents, levelling up is slower and less likely because competition and productivity are much lower outside London, and residents are left with less choice and more vulnerability to rip-offs. Does he agree that the justice system plays a central role in tackling the problem and ensuring that small firms have some kind of redress? Will he therefore look closely at the proposal in my Government-commissioned report for a new tier of local county competition courts?
I will be as brief as I can, Mr Speaker. We have read my hon. Friend’s paper with great interest. With respect, I do not think that the way forward is to create a further tier of specialist courts. However, there is much that can be done with colleagues in the Department for Business, Energy and Industrial Strategy to make sure that the overall structure of the competition mechanism is reformed and improved. His point about access to justice is absolutely right: it should apply to small and medium-sized enterprises as much as to individuals.
I will be as brief as I can, Mr Speaker. We have read my hon. Friend’s paper with great interest. With respect, I do not think that the way forward is to create a further tier of specialist courts. However, there is much that can be done with colleagues in the Department for Business, Energy and Industrial Strategy to make sure that the overall structure of the competition mechanism is reformed and improved. His point about access to justice is absolutely right: it should apply to small and medium-sized enterprises as much as to individuals.
I will be as brief as I can, Mr Speaker. We have read my hon. Friend’s paper with great interest. With respect, I do not think that the way forward is to create a further tier of specialist courts. However, there is much that can be done with colleagues in the Department for Business, Energy and Industrial Strategy to make sure that the overall structure of the competition mechanism is reformed and improved. His point about access to justice is absolutely right: it should apply to small and medium-sized enterprises as much as to individuals.
The Secretary of State understands that anti-competitive behaviour is just as likely among small firms as among big ones. The effects are terrible: fast-growing small firms that are future world beaters get throttled by slightly bigger incumbents, levelling up is slower and less likely because competition and productivity are much lower outside London, and residents are left with less choice and more vulnerability to rip-offs. Does he agree that the justice system plays a central role in tackling the problem and ensuring that small firms have some kind of redress? Will he therefore look closely at the proposal in my Government-commissioned report for a new tier of local county competition courts?
This note describes how competition law works in the UK. It considers past and proposed reforms, the implications of Brexit and competition in digital markets.
This note describes how competition law works in the UK. It considers past and proposed reforms, the implications of Brexit and competition in digital markets.