Stephen Metcalfe (South Basildon and East Thurrock) (Con)
3. What steps he is taking to increase the number of engineers.
The Minister for Skills and Equalities (Nick Boles)
We are investing in engineering skills at every level in higher education through apprenticeships and in further education, but perhaps the most important initiative is the university technical college initiative. We have opened 30 university technical colleges and a further 27 are in the pre-opening phase.
Stephen Metcalfe
As we know, we are going to have increasing demand for engineers nationally over the next few decades, and this will be no more acute than in Basildon and Thurrock. Will my hon. Friend therefore work with me to explore the possibility of establishing a university technical college in Basildon to meet our local needs and to encourage and enthuse young people to look at engineering as a valued career?
Nick Boles
I would be delighted to do that. I know my hon. Friend has been leading the process of trying to set up a UTC in his constituency. I urge him to make contact with the excellent Baker Dearing Educational Trust, which developed the concept of the UTC and will provide invaluable advice on how to make sure that my hon. Friend submits a successful bid.
Mr David Heath (Somerton and Frome) (LD)
The Minister will know that the largest manufacturing industry in the country is food and drink, and that it has one of the biggest export potentials. Will he recognise that engineering disciplines that are ancillary to that industry also have enormous potential, whether it be agricultural engineering, food processing, food storage requirements or food transport? Will he look at technical education from the point of view of where the export potential is, particularly in the developing world?
Nick Boles
Mr Speaker, thank you! You have slightly thrown me off my course.
I welcome what my hon. Friend has said, and I hope that he welcomes the announcement made by my right hon. Friend the Chancellor when launching our long-term economic plan for the south-west, in which he encouraged a proposal to come forward for a university technical college specifically focused on agriculture and related industries. I hope that my hon. Friend will be involved in promoting that.
Mr Speaker
I apologise to the Minister, the full munificence of whose name I was simply seeking to capture for the edification of the House.
Tim Loughton (East Worthing and Shoreham) (Con)
This year, China will produce something like 2 million graduates in engineering and engineering-related subjects. Engineering firms in my constituency tell me how difficult it is to recruit engineers, particularly female ones, and that when they train them up, they often lose them to larger firms. What can the Minister do to make sure we have a better join-up between business requirements and education so that engineers stay in this country and produce for our economy?
Nick Boles
My hon. Friend is absolutely right about the desperate need for more engineers, but we have been making good progress. Since 2010, the number of people starting an engineering-related apprenticeship has gone up by 52%, and since 2013 the number of people starting an engineering degree has risen by 6.5 %. If we can get a better supply coming through the pipe, companies will be less inclined to poach from each other and will actually invest in developing the talent themselves through an apprenticeship.
Michael Connarty (Linlithgow and East Falkirk) (Lab)
4. What steps he plans to take to safeguard the universal service obligation for the delivery of mail.
The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson)
The universal service obligation is not an optional extra—it is a fundamental duty enshrined in law and only Parliament could change that. In addition, it is the responsibility of the postal regulator, Ofcom, to ensure services are available throughout the UK at an affordable and uniform price, six days a week.
Michael Connarty
I thank the Minister for that reply, but is it not time that we looked at how Ofcom carries out its remit, possibly through a judicial review of that remit? Ofcom has been dragged reluctantly to review the actions of the cherry-pickers such as Whistl, which wants to pick mail up in the 8% of the UK’s geographical area that covers 42% of the mail thereby undermining the ability of Royal Mail to deliver, yet Ofcom attacked the standard of wages and conditions of the Royal Mail workers rather than deal with the problem of cherry-picking of the universal service obligation, which could be irrecoverably damaged.
Jo Swinson
There is agreement on both sides about the importance of the universal service obligation, and I do not think there is any evidence that the regulator is failing to fulfil its duty. It looked in detail at the case the Royal Mail put forward last summer and concluded that the market is operating as it should at the moment. It is committed to a further review later this year, and is also looking at the issue of access pricing. These issues are continually under consideration because the USO is so important.
Ian Murray (Edinburgh South) (Lab)
I am disappointed that you did not tell the House the middle names of this Minister, Mr Speaker, but perhaps we can look forward to that later.
It is nearly 18 months since the botched privatisation of Royal Mail. There are reports almost weekly of its being under pressure from the impact of Amazon’s increased use of its own delivery network, and from rivals which are cherry-picking the most profitable services. As the Minister has just said, Ofcom recently concluded that other firms did not have to match Royal Mail’s costly standards in the delivery of the universal service obligation. Given that Labour warned time and again that privatisation would ultimately threaten the USO, and given that the National Federation of SubPostmasters called it a “reckless gamble”, will the Minister look again at the USO, and give a cast-iron guarantee that it will be secure under this Government?
Jo Swinson
This Government have already given that cast-iron guarantee by legislating for it in the Postal Services Act 2011. Parliament has set it very firmly in stone. Unless the hon. Gentleman thinks that any future Labour Government would be minded to change the position, I hope that Members on both sides of the House can feel confident that the universal service obligation is secure.
As I said earlier, Ofcom, the regulator, has significant powers to obtain information from other operators in the market. It monitors operators’ plans regularly, and looks at the information every month. Operators must also inform the regulator of their future plans. That will remain under review, and a formal review will take place later this year. I think that what I have said should reassure the House that the universal service obligation is here to stay.
Mr Andrew Turner (Isle of Wight) (Con)
Will the Minister help me by explaining why postal collections that used to take place at 4 pm now take place at 9 am?
Jo Swinson
That is obviously a slightly different issue from the USO, but I can tell the hon. Gentleman that Royal Mail has reviewed the time of collections from post boxes in which fewer than 50 items of mail were being deposited each day, as part of an overall review of its service. In a positive move which I think Members should welcome, it has maintained all those collection points rather than decommissioning some of them, although collections will be less frequent. It has also ensured that there will be an alternative posting point within half a mile of post boxes from which there are fewer collections or an earlier final collection, from which mail will be collected later.
Grahame M. Morris (Easington) (Lab)
5. If he will take steps to increase apprenticeship places and support small businesses through greater use of Government procurement.
Paul Blomfield (Sheffield Central) (Lab)
6. What assessment he has made of the sustainability of the student loan system.
The Minister for Universities, Science and Cities (Greg Clark)
More students entered university this year than ever before in our history, with the biggest rise coming from the poorest areas. Universities will see their teaching resources grow from around £8 billion in 2011 to around £10 billion next year. Graduates are earning 40% more than non-graduates. The taxpayer gets £300,000 extra in tax receipts alone over the average graduate’s career. All this is why the OECD said last month:
“England has got it right on paying for higher education. Among all available approaches, the UK offers still the most…sustainable approach to university finance.”
Paul Blomfield
In a recent parliamentary debate, the Minister’s predecessor, the right hon. Member for Havant (Mr Willetts), who I am delighted to see in his place, said that the system needed some tweaking. The public need to know what tweaking the Government have in mind. If the Conservatives are in power after the election—[Interruption.] I know it is unlikely but if that is the case will the Minister guarantee that there will be no increase in the fee cap, no decrease in the loan repayment threshold and no change in the interest rate on loans?
Greg Clark
Our universities need to benefit from the confidence and stability that our reforms have introduced. I am perfectly happy with all the arrangements that we have. The uncertainty comes from the Labour party’s proposals, about which the university vice-chancellors are deeply concerned. They said that they would mean
“cuts to universities that would damage the economy, affect the quality of students’ education, and set back work on widening access to higher education”.
At a time when confidence is needed, the Labour party is proposing chaos.
Mr Liam Byrne (Birmingham, Hodge Hill) (Lab)
Actually, the UCAS figures published recently show that there are 7,000 fewer British applicants to our universities than there were in 2011. Figures from the Library show that we are wasting and writing off £1 in every £2 that we invest in the higher education system, and our students will not pay back their debts until they are in their 50s. We are educating fewer of our young people and we are wasting more of our money.
The Chancellor forecast that there would be 60,000 extra students this year, yet the UCAS data show that there are only 12,000 extra applicants for this September. Does the Minister want to explain to the House why, if his system is so good, he has just missed his growth target by an incredible 80%?
Greg Clark
That is total nonsense. We have more students than ever before in this country. We have been able to take the cap off the number of students able to go to university, a historic decision that implements the recommendation of the Robins report of over 50 years ago. In terms of putting people off going to university, the big concern of the vice-chancellors is that the Labour party’s proposals would specifically damage the prospects of poorer students and risk the quality of education for all. It is time that the right hon. Gentleman, who has failed to come up with a policy for all this time, said, weeks before the election, what Labour’s policy on higher education is.
Mr David Hanson (Delyn) (Lab)
7. If he will review the use by banks of the enterprise finance guarantee scheme.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
9. What steps he is taking to promote investment in innovation in the manufacturing sector.
The Minister for Universities, Science and Cities (Greg Clark)
The regional growth fund provides support to key industries in England, creating and safeguarding jobs. I am pleased to announce today that regional growth fund support over the next two years will be expanded by nearly £300 million, including more than 60 new schemes. Some 90% of the funding announced today will go to projects and programmes in the manufacturing sector, helping companies to expand, develop new products and new markets and create long-term skilled jobs.
Mr Sheerman
You do not want to mention, Mr Speaker, that my second name is John, and when I was a young councillor with my first seat in Wales I went around with my full name of Barry John.
May I say to the Minister, “Not bad, but not good enough”? Why can we not have up front, “Manufacturing, manufacturing, manufacturing”? We need a commitment to that across the parties in this House. We have just launched a cross-party manufacturing commission. Will the Minister support it, will he do something about it, and will he come tonight to the Institution of Mechanical Engineers’ manufacturing conference and hear me speak?
Greg Clark
Tempting though that invitation is, I am not sure I will be hearing the hon. Gentleman speak, although I enjoy his contributions in this House. Manufacturing has been enjoying a stunning revival during the last few years, and it is supported by the investments made through the local growth fund and the regional growth fund. Some £1.1 billion of funding has been put into manufacturing. Is there further to go? Of course, but this Government’s strategy is clear: by reviving the sectors in which we have strengths that are famous around the world, we can build the prosperity that will provide the security for our country for many years to come.
Mr David Willetts (Havant) (Con)
Will the Minister confirm that when we talk about “tech” we mean not just the software, but the hardware as well, and that there are enormous prospects for British manufacturing, especially supported through the RGF, to be world leaders in the high-tech industries of the future?
Greg Clark
My right hon. Friend is absolutely right. He and I had the privilege to be at the Royal Society last night, where awards were presented for some of the key figures who are translating some of our most brilliant ideas into practice, especially in advanced manufacturing. Across all the sectors there is confidence that the prospects for this country are better than ever. That is a tribute in large part to the work that my right hon. Friend did in office.
Nic Dakin (Scunthorpe) (Lab)
The steel unions, supported by steel employers, launched a “Stand Up for Steel” campaign after the debate in this Chamber on the future of the steel industry. With there still being uncertainty about the future of Tata long products, what are the Government doing to stand up for steel, a crucial part of our manufacturing industry that is famous for its innovation and crucial to the future success of this country?
Greg Clark
Anyone who was born on Teesside cannot fail to be aware of the importance of the steel industry. It is an important part of our industrial base, and this Government have made significant strides in supporting it. For example, we have reduced the energy costs that would otherwise have been incurred. The hon. Gentleman will know that my right hon. and hon. Friends have regular discussions with representatives of the steel industry and will continue to support it.
Mr Iain Wright (Hartlepool) (Lab)
The hon. Member for Somerton and Frome (Mr Heath) rightly said that the food and drink manufacturing sector was the largest manufacturing sector in this country. It employs 400,000 people and invests £1 billion in innovation. There is also huge opportunity for further growth through innovation, but the Food and Drink Federation’s calls for a food and drink manufacturing council, with collaboration between the industry and the Government to foster innovation, have fallen on deaf ears. The phrase “food and drink manufacturing” is not even mentioned in the Government’s agri-tech strategy. Why have the Government chosen to ignore this innovative and high-potential manufacturing sector, and how will the Minister make amends?
Greg Clark
We have not ignored it. In fact, I had the privilege of attending the Agri-Tech Leadership Council, which involved many of our key players across the food and drink industry and my colleague, the Under-Secretary of State for Business, Innovation and Skills, my hon. Friend the Member for Mid Norfolk (George Freeman) and the Minister in the Department for Environment, Food and Rural Affairs, Lord de Mauley. We met representatives of the industry precisely to plan and implement the strategy that the sector wants to put forward.
Valerie Vaz (Walsall South) (Lab)
10. What recent assessment he has made of the availability of finance for small firms and the level of lending by banks to small businesses.
Mr Alan Reid (Argyll and Bute) (LD)
12. What recent discussions he has had with the Secretary of State for Transport on the location of the UK’s first space port.
The Minister for Universities, Science and Cities (Greg Clark)
I met Transport and Defence Ministers yesterday to discuss progress on delivering the UK’s first space port. They are both part of the cross-governmental team taking forward the national space flight agenda. The Government have undertaken a public consultation on the eight potential locations, including Machrihanish in the hon. Gentleman’s constituency, and the criteria that will be used to select the location of a UK space port. Our response to that consultation will be published shortly.
Mr Reid
I thank the Minister for that answer. A space port would be a great boost to the British economy. Machrihanish, with its 3 km runway and all the facilities of a Royal Air Force base, and being far from densely populated areas, is obviously the clear choice for the space port. I urge the Government to go on to the next phase of the decision-making process quickly and choose Machrihanish as soon as possible.
Greg Clark
I assure my hon. Friend that we will be taking the first part of his advice and proceeding quickly, but it would be wrong to pre-empt the outcome of that consultation and to nominate Machrihanish from the Dispatch Box today.
Mr Speaker
I call Jesse Norman. He is not here—[Interruption.] Indeed—the exhortation from the hon. Member for Broadland (Mr Simpson) was, “Take his name, sergeant major.”
Charlotte Leslie (Bristol North West) (Con)
T3. Many people say that LEPs have been a huge improvement on the regional development agencies, but some small businesses that I talk to in Bristol are concerned that their priorities are not always reflected in local growth funds. Will the Minister work with his colleagues to ensure that the priorities of small businesses are reflected in LEPs, and that LEPs are not unduly influenced by major business interests?
The Minister for Universities, Science and Cities (Greg Clark)
It is very important that businesses have a strong voice in the leadership of the local economy. That is what they are achieving through LEPs and it has been one reason why more than 2 million new private sector jobs have been created during this period. My hon. Friend has been an active campaigner for projects in her local area with some success, and I know that she will continue to influence the business and the local authority participants in her LEP.
Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)
T4. The Government have a target, signed off at the highest level, I believe, of achieving £1 trillion of exports by 2020, doubling the current figure in five years. When asked at the Business, Innovation and Skills Committee, a UK Trade & Investment representative described it as an “energising aspiration”. Is it an energising aspiration or is it a realistic, achievable target?
Mrs Cheryl Gillan (Chesham and Amersham) (Con)
T5. The Minister responsible for life sciences will be familiar with Daiichi Sankyo, an innovative drug company based in Chesham and Amersham. It is launching a novel oral anticoagulant to help prevent strokes more effectively in people who suffer with atrial fibrillation. The uptake of such drugs has been repeatedly blocked by the NHS despite guidance from the National Institute for Health and Care Excellence that calls for their use. What can the Minister do to clear that blockage so that the drugs can be used to benefit our patients?
The Parliamentary Under-Secretary of State for Business, Innovation and Skills (George Freeman)
I am indeed familiar with the great work of Daiichi Sankyo, and that of my right hon. Friend in supporting its investment in her constituency. I recently had the pleasure of going up to open a new facility. She raises an important point, and the appointment of a Minister responsible for life sciences at the Departments for Business, Innovation and Skills and of Health, where I have responsibility for NICE and the Medicines and Healthcare products Regulatory Agency, allows us to begin to ensure that our health system better supports our life sciences cluster. The review I recently launched of speedier access for innovative medicines will tackle the issue of uptake that my right hon. Friend has rightly raised.
Heidi Alexander (Lewisham East) (Lab)
T6. Ninety-three per cent. of those aged 25 or over who completed apprenticeships last year already worked for their employer. If this is not just a rebadging of existing training programmes as apprenticeships, what is it?
The Minister for Skills and Equalities (Nick Boles)
One of the most extraordinary steps the Opposition have taken is to tell us that if someone is employed by a business we do not care about the process of giving them new skills, and that it is inappropriate for the Government to invest in giving them those skills. It is entirely reasonable for businesses to employ someone for a time and then see that they have the aptitude and potential to complete an apprenticeship. Apprenticeships have to last at least 12 months and they involve a substantial investment by employers, so it is not for us to stand in the way if employers want to invest in upskilling the staff they already have.
Martin Vickers (Cleethorpes) (Con)
The economy in northern Lincolnshire has had much good news in recent weeks, but a bit of a damper was put on that this morning by the announcement from Lindsey oil refinery that there will be 180 redundancies. That follows 90 redundancies announced last week by Cristal Global. Will the Minister assure me that everything possible will be done by his Department and Government agencies to support the workers at this difficult time?
Mr Alan Reid (Argyll and Bute) (LD)
I welcome the introduction of big fines for supermarkets that breach the groceries supply code of practice, but I urge the Government to bring forward the review. We need to extend the code to indirect suppliers such as dairy farmers, who are suffering greatly at the moment. They cannot wait another year. May we have the review much sooner, please?
The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson)
I thank my hon. Friend for that question. I know that my hon. Friend the Member for Somerton and Frome (Mr Heath) has also been raising this issue assiduously. It is one that Members across the House are, understandably, very concerned about. The Groceries Code Adjudicator is already proving to be a great success in her work with supermarket companies, by encouraging them to change their behaviour. We have ensured that she has, and will have, the power to fine as well as to launch investigations—the first, of course, was launched recently. The question whether the remit should be extended needs to be looked at, and I commit the Government to doing that.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
Government procurement can be used to drive innovation and to support our small business sector. How can small businesses in my constituency find out what opportunities exist to help them?
Mr David Willetts (Havant) (Con)
Will the Minister confirm that one of the best ways of getting funding into innovative life sciences companies is for them to get contracts from the NHS earlier? He just referred to his very important early access review. What are the ambitions for that, and the timetable?
George Freeman
My right hon. Friend and predecessor makes an important point. Since we launched the life science strategy at the start of this Parliament, as set out and led by my right hon. Friend, this country has attracted over £3.5 billion of inward investment into the sector and created more than 11,000 jobs, so something is going very right. He makes a key point: the next step is to ensure that our NHS is driving quicker access. We shall shortly be announcing the chair of the review, and we have already started to gather evidence. My right hon. Friend will have noticed on his recent trip to America the support and the interest that it is gaining overseas for driving our sector forward.
Philip Davies (Shipley) (Con)
When the Secretary of State’s Department was called the Department of Trade and Industry, he called for it to be abolished, saying:
“The DTI should be wound up because it doesn’t perform a function. It has no real role anymore”.
Interestingly, his solution was not to reform the Department and rename it BIS; his solution was to split the duties of the Department between existing Government Departments —he cited the Department for Work and Pensions and the Department for Education and Skills. Which of his duties does he think should be handled by other Government Departments, or what has changed his mind? Was it a ministerial salary, perhaps?
Mr David Heath (Somerton and Frome) (LD)
A business in my constituency received a communication from Royal Mail the week before Christmas, saying that with effect from four business weeks later, the business reply and freepost service that it had used for 10 years was to be discontinued and it would have to re-register. The business was told that if the old address was used, there would be a 20p penalty per item and the item may not be delivered. It will cost the business £10 per customer and £10,000 in lost stationery. Is that reasonable? Should not the Royal Mail respond to my letter? Will the Minister intervene?
Jo Swinson
Royal Mail should certainly respond to the letter that my hon. Friend sent it, and I will happily take that up on his behalf. The issue that he raises goes wider. The change had been notified earlier to some customers but that may not have happened properly in this circumstance, and I shall be happy to look into it.
Mr Philip Hollobone (Kettering) (Con)
There were a wonderful 850 apprenticeship starts in Kettering last year, led ably by Tresham college in my constituency. Is the Skills Minister satisfied that LEPs are working as well as they might with local further education establishments in pushing the apprenticeship agenda?
Nick Boles
My hon. Friend is right to suggest that LEPs should take this seriously. Some are doing better than others on this, but our message is clear: they have a key responsibility, working with local businesses and colleges such as the one my hon. Friend referred to, to ensure that as many businesses as possible take up the opportunity of an apprenticeship. because that is the way to build the skills that his constituency and others need for the future.
Tim Loughton (East Worthing and Shoreham) (Con)
The Minister gave a progress report on the Government’s dealing with late payment, but, according to a recent small business seminar in my constituency, it remains a bugbear. One international telecommunications company was cited which not only charges a fee to be a supplier, but has 180-day payment terms. What more can we do to name and shame and make transparent these obscene practices, which clobber small businesses?