(5 years ago)
Commons ChamberRead Hansard Text Read Debate Ministerial Extracts
Sir Desmond Swayne (New Forest West) (Con)
Mr Gregory Campbell (East Londonderry) (DUP)
Anne Milton (Guildford) (Ind)
The Secretary of State for Business, Energy and Industrial Strategy (Andrea Leadsom)
I strongly believe that apprenticeships are a superb option for people to earn and learn. In my Department, we have 154 apprentices, 149 of whom are levy funded. I have taken on a new school leaver apprentice in my office every year since becoming an MP, which has been an excellent experience for them and for my team. Since the introduction of the apprenticeship levy, we have made changes to ensure that businesses can spend up to 25% of it in their supply chain, and I am delighted that the number of people starting higher-level apprenticeships has increased by over 40% since the 2016-17 academic year.
Sir Desmond Swayne
Is the 80:20 rule an overhead that is unwelcome to employers who have to provide cover for employees who are learning?
Andrea Leadsom
My right hon. Friend makes a really important point, but he will appreciate that off-the-job training is vital for apprentices to develop the knowledge, skills and behaviours they need to succeed at work. The 20% off-the-job training rule is based on standards used by apprenticeship programmes regarded as world class, such as those in Switzerland and Germany, which we have made it our ambition to at least match.
Mr Campbell
Employers complain about the inflexibility of the apprenticeship levy. What steps is the Minister taking to ensure that it becomes more flexible, leading to greater dynamism in our local economy?
Andrea Leadsom
The hon. Gentleman will be aware that the apprenticeship levy is collected from Northern Ireland businesses, with Northern Ireland subsequently receiving a Barnett consequential of spending on apprenticeships in England, which is funded by the levy. Ensuring that apprenticeship policy in Northern Ireland is delivering for Northern Ireland businesses is just one of a number for reasons why it is so essential that devolved government in Northern Ireland is restored.
Anne Milton
In Guildford, 97% of businesses are small businesses. What progress have the Government made on ensuring that they can use the 25% transfer from levy employers to build the skilled workforce that we desperately need in this country?
Andrea Leadsom
I pay tribute to my right hon. Friend for her superb work as Minister of State for Skills over the past few years. Under her watch, the importance of technical education has been raised substantially. She will be aware that sectors in all parts of the economy are now creating apprenticeship programmes, from cyber-security to offshore wind, and more than 61% of starts are now on high-quality industry design standards.
Sir Vince Cable (Twickenham) (LD)
How does the Secretary of State explain the fact that the Government’s own skill index, which measures the value added from apprenticeships and vocational training, is now 25% below 2012 levels?
Andrea Leadsom
The right hon. Gentleman will be aware that in the 2018-19 academic year, despite an overall fall, nearly 60,000 people started higher-level apprenticeships, up nearly 43% on the year before the levy was introduced. It is important that the Government continue to talk to business about how to make use of this, but we are very pleased with progress.
Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)
A recent report by the Centre for Social Justice showed that in the UK, of those who start entry- level work, only 15%—15%—will ever progress beyond it in their whole life. That is an indictment of the UK under different Governments. Beyond apprenticeships, what plans does my right hon. Friend have to find ways to encourage businesses to do on-the-job training, so that those people can move on and increase their salaries?
Andrea Leadsom
My right hon. Friend is right to raise the much bigger challenge of how to get young people not only into an apprenticeship but past it, enabling their skills to develop. We are doing that in a number of different ways. The Government continue to speak with businesses and monitor the impact of the apprenticeship levy on the performance of young people. We are doing a lot to promote start-up businesses for young people through the British Business Bank, but we continue to need to seek ways to ensure that no young person is left behind.
Jim McMahon (Oldham West and Royton) (Lab/Co-op)
People are living longer, which is a good thing, but they need care in old age. In Oldham, health and social care is a growing industry, but at the moment it attracts the lowest band of the apprenticeship levy. I saw this week that the Department of Health and Social Care was advertising jobs at just above the minimum wage. Will the Department for Business, Energy and Industrial Strategy work with the Department of Health and Social Care to raise the value of those jobs?
Andrea Leadsom
The hon. Gentleman raises a really important point. We want to see young people being attracted to apprenticeships right across the range, and he is right to raise the importance of getting good-quality people into the social care system. I would be delighted to speak with him and others who are interested in that area of future employment.
David Hanson (Delyn) (Lab)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)
Average FTSE 100 CEO pay more than quadrupled from £1 million in 1998 to £4.5 million in 2012. Since then, the median average has fallen by £1.04 million. We have recently implemented a number of reforms to make further improvements to executive pay transparency and accountability through vehicles such as the UK corporate governance code.
David Hanson
The Government’s Green Paper on corporate responsibility was published more than two years ago, and since that time we have seen corporate pay issues in Carillion and only last month in Thomas Cook. Last week, the Business, Energy and Industrial Strategy Committee questioned the chief executive of Thomas Cook about corporate responsibility issues on pay. What precisely have the Government done to act on corporate pay since that Green Paper two years ago?
Kelly Tolhurst
I thank the right hon. Gentleman for his question. As I mentioned, CEO pay has fallen. There were reforms at the beginning of the year, to ensure that shareholders’ voices are heard more in the boardroom. There is a binding vote every three years on remuneration policy, and there is now an advisory vote every year. If it is not successful, pay has to be put before the next AGM. As he will know, the Investment Association now keeps a record, at the Government’s request, to ensure that we are tracking pay where there is shareholder dissent.
Mr Steve Baker (Wycombe) (Con)
Does my hon. Friend agree that the right way to control executive pay is to increase democratic control of capital, not by increasing the powers of the state but by dramatically improving the rights of shareholders?
Kelly Tolhurst
My hon. Friend is right, and that is what the Government’s reforms have done. As I outlined, shareholders have a vote every three years and an advisory vote every year. Through the reforms, we have also enabled employee directors, non-exec directors or employee councils to have representation on the board. Companies now have to explain their wider pay policy and how it affects the whole company.
Rachel Reeves (Leeds West) (Lab)
The chief executive of Thomas Cook was paid more than £8 million during his time as chief executive of a company that has now collapsed, costing 9,000 jobs in this country, with 150,000 customers having to be brought home at a cost to the taxpayer. When he gave evidence to our Select Committee last week, he said he would reflect on whether he will pay back any of his bonus. What will the Government do to ensure that bonuses can be and have to be clawed back after catastrophic failures of businesses like that?
Kelly Tolhurst
I thank the hon. Lady for the work she is doing on the Select Committee. Thomas Cook did have clawback and malus arrangements in place for the recovery of directors’ bonus payments in specific circumstances, as required by the UK corporate governance code. My right hon. Friend the Secretary of State has asked the Insolvency Service to fast-track an investigation, and it will report back. As the hon. Lady outlined, the CEO did advise the Committee on 15 October that he would consider voluntarily surrendering some of his 2017 cash bonus, but it must be pointed out that no bonus was paid to the ex-CEO in 2018.
Mr David Davis (Haltemprice and Howden) (Con)
The hon. Member for Leeds West (Rachel Reeves) highlighted the point that the biggest concern is not simply how much is paid to executives, but their being paid for failure, not for success. The current arrangements in British company law allow chief executives and other executives to be paid on the basis of share price and allow them to buy back shares, propping up the share price. This is a formula for payment for failure. Is the Department looking at that?
Kelly Tolhurst
I thank my right hon. Friend for raising this. Part of the reforms in January was to make organisations report back on the effect of share price growth on executive pay outcomes. We published some evidence before the summer from a review undertaken on share buy-backs, and there was no clear evidence to suggest that they did have a perverse outcome.
Lucy Powell (Manchester Central) (Lab/Co-op)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Nadhim Zahawi)
The independent Oakervee review will advise the Government on High Speed 2, including potential business benefits and how it should proceed. The hon. Lady will understand that I would not want to prejudice those findings.
Lucy Powell
I thank the Minister for that reply, but six regional heads of the CBI say that High Speed 2 should be built in full and the Northern Powerhouse Partnership recently published its excellent independent review saying the same, arguing that only HS2 can really rebalance our economy. Will the Secretary of State, as the business representative at the Cabinet table, advocate for business in the north?
Nadhim Zahawi
The hon. Lady mentions the CBI. Both the Mayor of Greater Manchester, Andy Burnham, and the Mayor of Birmingham, Andy Street, who sits on the panel conducting the review, have said it is important that we kick the tyres on value for money, but it is also important to make such representations to ensure that the committee gets a full view of the business benefits of HS2.
Philip Davies (Shipley) (Con)
May I urge the Minister to ignore the siren voice opposite? Most people in the north accept that HS2 is a catastrophic waste of money— a huge white elephant that is destroying the environment and the countryside and will chiefly benefit London, hence why it started out in London in the first place. May I therefore urge him to tell the Secretary of State for Transport to scrap HS2 and crack on with the thing that will really benefit the northern economy—Northern Powerhouse Rail or HS3—connecting the north, which is what we need to benefit the north’s economy.
Mr Speaker
I do wish the hon. Gentleman would overcome his natural shyness.
Nadhim Zahawi
I do not think there is any danger of that, Mr Speaker.
My hon. Friend raises an important point, which is why the Prime Minister has pledged to fund the Leeds to Manchester route and has accelerated those plans with a deal in the autumn of 2019, with billions of pounds going into Northern Powerhouse Rail, and has of course set up Transport for the North.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
The Minister may know that I am a fierce opponent of the £100 billion that is going to be wasted on HS2. Has he looked at research in France, where we see that high-speed trains actually suck more power and wealth into the metropolitan area of Paris, rather than the renewal of provincial towns? Will he have a look at the £100 billion, because that is how much it is going to cost, and will he spend it instead on investing in the workforce of this country?
Nadhim Zahawi
The hon. Gentleman makes a powerful point, although his colleague, the hon. Member for Manchester Central (Lucy Powell), was shaking her head, so there is clearly division on the benefits of HS2. That is why we have an independent review to tell us which way we should proceed.
Martin Vickers (Cleethorpes) (Con)
One of the businesses in northern Lincolnshire that will be a crucial part of the supply chain for HS2 is British Steel in Scunthorpe. I urge the Minister, when he is in discussion with the Department for Transport, to consider the effect on the supply chain and the impact on local economies.
Lee Rowley (North East Derbyshire) (Con)
The Minister for Business, Energy and Clean Growth (Kwasi Kwarteng)
I pay tribute to my hon. Friend’s campaign on this fracking issue. We are all concerned about the impact of recent seismic events in Lancashire. My hon Friend knows that the Government have been clear that they will support the exploration of our shale gas resources only in a safe and sustainable way. The Oil and Gas Authority is undertaking an analysis of the data from Cuadrilla’s operations and we will set out our future approach as soon as we have considered that report.
Lee Rowley
I thank my right hon. Friend for his comments. Will he confirm that he will consider not just the OGA review, but feedback from constituencies such as mine that do not believe that fracking is the way forward?
Kwasi Kwarteng
My hon. Friend is right: this is one of the top issues that come across my desk. I feel the local concern about it, and we will take that into consideration when we reach a final decision.
Alan Brown (Kilmarnock and Loudoun) (SNP)
The National Audit Office report confirms that the UK Government have not analysed the costs and benefits of fracking and do not know how much money they have actually spent supporting fracking. Governance and regulation risks remain, as well as decommissioning liabilities that need to be resolved. Is it not time that the UK Government followed the lead of the Scottish Government and decided not to support the development of unconventional oil and gas?
Kwasi Kwarteng
As I said to my hon. Friend the Member for North East Derbyshire (Lee Rowley), we will consider the Oil and Gas Authority’s report and we will look at the evidence before we reach a final decision on the issue.
Jeremy Lefroy (Stafford) (Con)
Does my right hon. Friend think that it might be a good idea to leave those carbon-based fuels in the ground as a reserve for future generations in case of emergency?
Kwasi Kwarteng
My hon. Friend knows that we are committed to a net zero carbon target. We are doing very well on renewables, and our success in that is the best way to reach the target.
Danielle Rowley (Midlothian) (Lab)
Definitely not, Mr Speaker. No offence to the hon. Gentleman.
The decisions that we take over the next year will be critical in preventing climate change from becoming irreversible. The Committee on Climate Change has said that fracking on a significant scale is not compatible with UK climate targets. It increases local air pollution, generates huge volumes of chemical waste water, causes earthquakes and is just not necessary for the UK’s energy security. Yet the Secretary of State recently reiterated her support for fracking. Given the climate emergency, will the Government reconsider and commit now to banning fracking?
Kwasi Kwarteng
As I have said on three occasions now, we will consider the OGA report, and we will look at the evidence. We are very mindful of what local communities are saying and we will set out our future direction shortly.
Faisal Rashid (Warrington South) (Lab)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)
All workers in the UK have the right to join a union and to participate in union activities. That right is protected under trade union law, and 23% of UK employees are union members. That is higher than some European countries, including France and Germany, and it demonstrates that union rights to recruit and organise through individual members and officials are sufficient.
Faisal Rashid
This week shocking reports have emerged about dire workplace conditions at Amazon. Those exploited workers desperately need a union, but workers at Amazon have had their shift patterns interrupted just to prevent them from talking to union officials on the way to work. When will the Government put an end to those draconian anti-union practices, and will the Secretary of State launch an investigation into reports of workers’ rights being violated at Amazon?
Kelly Tolhurst
I thank the hon. Gentleman for his question. It is the right of unions and employers to come to an agreement about representation in the workplace. The Central Arbitration Committee is available if that is refused. With regard to workers’ rights, the good work plan represents the biggest reform of workers’ rights in 20 years. We are determined to continue on that path, because workers’ rights are important to this Government.
Joanna Cherry (Edinburgh South West) (SNP)
Kelly Tolhurst
It will come as no surprise that I completely disagree with the hon. and learned Lady. The Prime Minister has been clear: not only will we maintain workers’ rights, but we will enhance them. Even in my role as a Minister over the past 12 years, everything has been focused on ensuring we are ahead of the European Union. We are committed. We have never, ever, not once ever put forward a position where we have shown we will row back on workers’ rights.
Laura Pidcock (North West Durham) (Lab)
Wow! What an answer. This is the situation for workers at Amazon: their bones are being broken; they are being knocked unconscious; and they are being taken away in ambulances. Where is the urgency to step in and stop what is happening to these workers? Are the Government going to demand an urgent inquiry, or do they wash their hands of these workers? At the heart of the issue at Amazon is a hostile environment for trade unions, which are often the only force that can resist exploitative practices. A Labour Government would legislate to enforce access rights for trade unions and a robust enforcement regime. Why are the Government sitting on their hands while the richest man in the world treats his workers so disgustingly on their watch?
Kelly Tolhurst
The hon. Lady makes allegations about a particular organisation. She is welcome to write to me further about those allegations, but I remind her that sufficient workplace laws are in place. We have the Health and Safety Executive, for example. If she has evidence of certain employers breaking the law, I would expect it to be passed on to the relevant agencies. As I outlined, our Prime Minister is committed to ensuring that we keep step with the European Union and go further. I believe the actions the Government have taken over recent months prove that.
Gareth Johnson (Dartford) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Nadhim Zahawi)
I am pleased to say that Dartford has been shortlisted for the future high streets fund to renew its town centre. This will build on £4.3 million support already allocated from the South East local enterprise partnership growth fund.
Gareth Johnson
A number of businesses in my constituency face an uncertain future due to a nationally significant infrastructure project earmarked for the Swanscombe peninsula, where those businesses are located. Will the Minister commit to working with the Ministry of Housing, Communities and Local Government to do all he can to support the businesses that find themselves in that situation?
Nadhim Zahawi
I fully appreciate the concerns of local businesses with regard to the uncertainty over Swanscombe peninsula. My Department works very closely with the Ministry of Housing, Communities and Local Government. I will gladly raise this with my right hon. Friend the Minister for the Northern Powerhouse and Local Growth, when I see him tomorrow.
Karen Lee (Lincoln) (Lab)
The Minister for Business, Energy and Clean Growth (Kwasi Kwarteng)
The hon. Lady will understand that the UK was forced to make these changes to comply with EU legislation. Since the new rates only came into effect on 1 October this year, it is too early to see what effect they have had. Once we have left the EU, we will have opportunities to amend the VAT treatment of low- carbon technologies to ensure that we can set the rates that we consider most appropriate.
Karen Lee
By raising the VAT threshold for solar installations, the Government are disincentivising the transition to green energy, and this is just one example of the Government’s failure to act with the urgency that the climate crisis demands. Will the Minister undertake today to consider adopting Labour’s plans to fit solar panels to 1.75 million low-income homes, which would combat climate change while creating jobs and reducing energy bills for people in Lincoln and across the UK?
Kwasi Kwarteng
I did suggest that the VAT increase was part of EU legislation, and that is something we can amend, if we wish to do so, after we have left the EU. Solar is a UK success story. I will not take any lessons from the Labour party about the success of solar: 99% of our solar-generating capacity and over 1 million installations have been deployed since 2010, since the Government took office. This is something that we are proud of, and it will obviously be part of our energy mix as we seek to hit the target of zero carbon emissions in 2050.
Kevin Hollinrake (Thirsk and Malton) (Con)
Even given the VAT situation, solar and wind, together with battery storage on commercial buildings, are pretty much viable without public subsidy. Is not now the right time for a widespread deployment on every public building, including every school, hospital and prison?
Kwasi Kwarteng
My hon. Friend makes an excellent observation. We are supporting innovation in this area. We have the Modern Energy Partners programme, which cuts energy costs and carbon emissions across the public sector.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
Any VAT increase would be yet another hammer blow to solar. The Minister’s predecessors took solar power to the brink, blocked onshore wind, cut support for offshore wind and failed to capitalise on Scotland’s lead in marine and tidal power. Has he compared the detail in the Scottish Government’s new green deal with the lack of detail in the Queen’s Speech? When will his Government wake up to the climate emergency?
Kwasi Kwarteng
As I have said a number of times, the VAT increase was a consequence of EU membership, so on that basis I recommend that the hon. Gentleman support the European Union (Withdrawal Agreement) Bill this evening.
Drew Hendry
Last month’s energy auction revealed that offshore wind is a third cheaper than gas and half the price of the energy from Hinkley C nuclear plant, yet Tory dogma is holding climate change mitigation back. Does the Minister agree that VAT on solar is yet another barrier to much needed change, and will he ask the Chancellor to rule that out in the Budget?
Kwasi Kwarteng
I very much appreciate the hon. Gentleman’s prepared remarks, but he does not seem to be living in the real world. We have delivered on offshore wind, which he mentioned. The price has fallen by two thirds—that is a Government success and we are going to pursue that sort of success to meet the net zero carbon target.
Giles Watling (Clacton) (Con)
The Secretary of State for Business, Energy and Industrial Strategy (Andrea Leadsom)
We want to make the UK the best place to work and grow a business. We have set the target of an additional 600,000 female entrepreneurs by 2030, and the British Business Bank has delivered over £198 million to women in start-up loans. With my hon. Friend the Exchequer Secretary to the Treasury, we are implementing the initiatives of Alison Rose’s review, including focusing on female entrepreneurs’ access to finance, better enterprise education and launching the investing in women code.
Giles Watling
I thank my right hon. Friend for her answer. In my Clacton constituency, I am fortunate to have a group of very powerful businesswomen, with whom I had a very pleasant business lunch recently. In 2018, the BBC reported that women were half as likely to set up a business as men. I am pleased that the Government are doing all that my right hon. Friend said, but that must be in part due to a bias in education, so what more can be done to address this great loss of potential?
Andrea Leadsom
My hon. Friend is quite right. We need to go further in addressing education, and that is why one initiative in the Rose review specifically addressed the roll-out of enterprise education in schools and colleges to help in particular with the skills women need for business success at an earlier age. BEIS has also launched the Longitude Explorer prize, which is aimed specifically at 11 to 16-year-olds, to encourage innovative problem solving in our young entrepreneurs.
Ruth George (High Peak) (Lab)
Many of the women in business in my constituency are EU nationals, and they were extremely concerned at yesterday’s tabling of the draft Freedom of Establishment and Free Movement of Services (EU Exit) Regulations 2019, which would allow Ministers to remove their rights to own and manage companies or provide services. While we welcome the fact that the Committee was cancelled yesterday, what are the Government’s plans in this regard, because many EU nationals in business are very concerned?
Andrea Leadsom
I am sorry that the hon. Lady seeks to lean into the scaremongering. The statutory instrument has a very limited direct policy impact and will not impose additional restrictions on EU nationals or EU-based businesses or on the nationals and businesses of countries with associated agreements after we have left the EU. It is very important that we all take great care not to scaremonger and try to make people think that things are the case that are simply not the case.
Mrs Anne Main (St Albans) (Con)
Establishing a business is very difficult, particularly when business rates are so high and online businesses often do not pay their way. Is it not time, particularly for those establishing businesses, that we had a root-and-branch review of the business rates model, which affects so many businesses in St Albans?
Andrea Leadsom
I am very sympathetic to my hon. Friend’s point; I know she is a big champion of businesses in St Albans. In my Department, we are helping the British Business Bank to provide greater support to start-up businesses, providing huge support to the UK’s 1.2 million female-led SMEs, and doing everything we can to ensure that there are more incentives and opportunities for women to start businesses than ever before.
Jim Shannon (Strangford) (DUP)
If we are to encourage more women into business, it is essential that we tackle the gender pay gap at executive level. What has been done to address that issue?
Andrea Leadsom
The hon. Gentleman will know that the gender pay gap is now the smallest it has ever been and that the Government have required reporting of the gender pay gap. Such transparency can partially solve the problem, but we are not resting there: we are doing as much as possible to get more women to become entrepreneurs and to help women to acquire the skills they need to lead some of our fantastic UK businesses.
James Cartlidge (South Suffolk) (Con)
Greg Hands (Chelsea and Fulham) (Con)
The Minister for Business, Energy and Clean Growth (Kwasi Kwarteng)
As a result of the Government’s support, the UK is a world leader in offshore wind and a leader in tackling climate change. The third contracts for difference auction in 2019 delivered 5.5 GW of new offshore wind capacity, and the price was £39 per megawatt-hour, which was two thirds less than just four years ago. Our sector deal also paves the way to increase exports fivefold to £2.6 billion a year by 2030.
James Cartlidge
In East Anglia, we want to be champions of clean growth and are very proud that off our coast we are generating 52% of this country’s offshore wind output, but we want to go much further. Can my right hon. Friend assure me that the national grid will be able to keep pace and that we will support technology such as battery storage that will enable us to make the most of our natural asset?
Kwasi Kwarteng
My hon. Friend can rest assured that the Government continue to upgrade and invest in the electricity system to ensure that it can deliver additional generation. Of course, battery storage technology and other forms of storage are at the centre of any strategy to reach the net zero carbon target.
Greg Hands
The offshore wind sector has been one of the Government’s biggest success stories, with the delivery of the world’s largest capacity. When I was at the Department for International Trade, we also made it a priority to be able to export that capability. Could the Minister tell us a bit about the work that BEIS is doing with the DIT to continue that work so that we also deliver real economic benefits for our country’s exporters?
Kwasi Kwarteng
I pay tribute to my right hon. Friend, who spent two years in the Department for International Trade and was an excellent Minister. He has driven a great deal of progress in this area. As he will know, increasing competitiveness and the capability of our supply chain are key to increasing our exporting power, and, through the offshore wind sector deal, the sector will invest up to £250 million for that purpose. I continue to work with my right hon. Friend’s former Department to identify opportunities, and I regularly meet my hon. Friend the Under-Secretary of State for International Trade, in his capacity as Minister for investment.
Melanie Onn (Great Grimsby) (Lab)
Ørsted recently opened an east coast hub in my constituency. It is committed to providing local employment opportunities as part of its business, but sadly the extension of the non-EEA visa waiver to the offshore wind workers means that some companies can exploit underpaid and overworked foreign labour rather than developing local opportunities. Will the Government commit themselves to ending the waiver next year?
Kwasi Kwarteng
The Government will absolutely commit themselves to supporting new jobs in the sector. Because of allocation round 3, the contracts for difference auction, we are envisaging 400,000 new jobs in the immediate future, in the next few years. This is something at which the Government are actually succeeding and on which we are working.
Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
It was welcome that the Hebridean renewable project won 240 MW in the contracts for difference allocation round, but we need 370 MW to 400 MW for an interconnector. I know that the Scottish island group has enough CfDs to build an interconnector for clean green energy. Is it only the UK that could design a system under which we secure CfDs but Ofgem then says that that is not enough to build an interconnector? Will the Minister ensure that, in these days of climate change, the clean green energy of the Saudi Arabia of renewables—the Hebrides, Shetland and Orkney—is taken advantage of?
Kwasi Kwarteng
I welcome the hon. Gentleman’s enthusiasm and passion for this technology, but it is wrong to suggest that the CfD auction was a failure, or that it somehow constituted a defeat. In fact, it was extremely successful. As I have said, the price was £39 per megawatt-hour, two thirds lower than the 2015 price of £115. Obviously we are looking at interconnectors, which will be part of the solution to the issue of net zero carbon.
Mr Speaker
Anyone would think that the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil) was conducting a symphony orchestra rather than chairing an august Select Committee of the House, but the eccentricity of the hon. Gentleman merely adds to his lovability.
Sarah Newton (Truro and Falmouth) (Con)
There is huge potential for low-cost, low-carbon electricity generation from floating wind in the Celtic sea. Will my right hon. Friend accept an invitation to pay a visit on 19 November and find out about this exciting opportunity?
Kwasi Kwarteng
My desire and propensity to visit all these installations know no bounds, and I should be very happy—diary permitting, obviously—to take up my hon. Friend’s offer.
Wera Hobhouse (Bath) (LD)
Does the Minister agree that hydrogen should be made from renewables via electrolysis in the medium and long term?
Kwasi Kwarteng
The hon. Lady is right to point to the advantages of hydrogen, but, as she will understand, the issue with electrolysis is that it is currently very expensive, so the green hydrogen to which she has referred is something that we are continuing to develop.
Mr William Wragg (Hazel Grove) (Con)
The Minister for Business, Energy and Clean Growth (Kwasi Kwarteng)
A number of hydro projects are currently in receipt of support through the feed-in tariff and renewables obligation schemes. As my hon. Friend will know, from 2020 small-scale hydroelectric projects will also be eligible for the smart export guarantee, which allows people to resell excess capacity to the grid.
Mr Wragg
My right hon. Friend will be aware of the failure of Solarplicity during the summer. Many renewable energy companies, including Stockport Hydro in my constituency, are significantly out of pocket. Will my right hon. Friend meet me to discuss the problem, and will he urge Ofgem to step in and cover the debts that are owed to Solarplicity?
Kwasi Kwarteng
I should be delighted to meet my hon. Friend to discuss the issue. Obviously, I cannot commit Ofgem to bailing out companies or paying debts—that is not its function, as my hon. Friend should know—but I should be happy to meet him at any time that is convenient.
Albert Owen (Ynys Môn) (Lab)
I welcome the support given to hydroelectricity generation at this time. Exciting new projects in marine energy need the same support. We would not have a successful offshore wind industry had not support been given to that for decades. Will the Minister follow the work of his predecessor on this and work with the Welsh Government to ensure that this happens around the UK coastline?
Kwasi Kwarteng
Absolutely. The hon. Gentleman raises an important point: the success with offshore wind did not come out of a clear blue sky. It evolved and depended on huge amounts of investment and development over many decades. So I am very happy to engage with the hon. Gentleman and the Welsh Government on this.
Eddie Hughes (Walsall North) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)
The Government are wholly committed to women’s participation in the workforce, including by supporting new mothers to return to, and thrive in, work. That is why we recently consulted on a broad range of proposals to help families to balance their work and home commitments. We have also announced our intention to extend redundancy protection to new mothers returning to work.
Eddie Hughes
I thank the Minister for that answer. What support are the Government giving to new mothers who, sadly, have experienced stillbirth?
Kelly Tolhurst
First, I pay tribute to my hon. Friend and Members across the House who participated in Baby Loss Awareness Week and the emotional debate in the House. The Government have committed to introducing parental bereavement leave and pay, which will apply to parents who lose a child under the age of 18, including parents with stillbirth. We plan to lay the regulations to implement the policy in January, ready to come into force on 6 April. That will support new mothers facing these tragic and difficult circumstances.
Gareth Thomas (Harrow West) (Lab/Co-op)
Discrimination against new mothers and pregnant women is still widespread in our country. When are the Government going to take it seriously?
Kelly Tolhurst
I point out that discrimination in the workplace is illegal; it is unlawful. I have just outlined that we have announced our intention to extend redundancy protection for those mothers who return to work.
Mark Pawsey (Rugby) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Nadhim Zahawi)
We have just announced up to £l billion of new funding to advance the next generation of cutting-edge automotive technologies. I am sure the House would want to know how that funding is being used. Part of it is being used by the supply chain for large-scale production of electric vehicles so that we scale up the production in the UK, and of course part of it will be used for vehicle research and development.
Mark Pawsey
I do not know whether you have had the opportunity to make a journey in one of the new electric London taxis, Mr Speaker, which are manufactured in my Rugby constituency by the London Electric Vehicle Company and which often provide people with their first experience of an electric vehicle. The company has just recorded its best ever sales month, with 352 taxis sold, and the fleet is improving the carbon footprint in our cities by preventing 6,800 tonnes of CO2 from entering the atmosphere. What further can we do to improve the switch to electric?
Nadhim Zahawi
I am very pleased to hear that the London Electric Vehicle Company had record sales in September. I spoke to the CEO recently and was very impressed with their capability. I understand their sales have grown month on month since April. They have capacity to produce 20,000 vehicles a year and his message to this House when I spoke to him was, “Let’s get Brexit done.”
Conor McGinn (St Helens North) (Lab)
Some London boroughs have hundreds of electric vehicle charging points while whole towns in the north have none, but given the lack of public transport options in places such as St Helens, would it not be economically and environmentally better to invest in places such as mine to get people out of their cars?
Nadhim Zahawi
The hon. Gentleman is right to raise this issue. Our grant scheme and the £400 million charging infrastructure investment fund will see thousands more electric vehicle charging points installed across the whole UK.
Damian Hinds (East Hampshire) (Con)
To accelerate take-up, first, we need to have more people having an electric vehicle in their consideration set, so alongside communications to consumers can the Minister look at the pivotal role played by dealers in getting more people to take a test drive?
Nadhim Zahawi
My right hon. Friend raises an important point. Different touch points with consumers are important. For example, when people go for a replacement tax on their car, they should be immediately alerted to the fact that, instead of paying that tax, they could pay for a new electric vehicle.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
Electric vehicles represent a fantastic opportunity to combat climate change and boost manufacturing jobs. That is why Labour is committed to investing £2.3 billion in three new battery gigafactories, £3 billion in support for manufacturing new car models, and £3.6 billion in our electricity grid and charging infrastructure, and we will also provide targeted interest-free loans for new electric cars for up to 500,000 people a year. We will do all that while retaining membership of the world’s largest customs union. Apart from a few ad hoc pots of money, the Government are proposing green licence plates. When it comes to climate change and manufacturing, is it not true that the Government are all hot air and no action?
Nadhim Zahawi
The hon. Lady just reeled off a list, so I will reel off my own list of good news, starting with the fact that Government announced £1 billion to increase the capacity for electric car development. On 10 October, Nissan launched the new Juke model after investing £100 million in Sunderland. On 26 September, Jaguar Land Rover announced its latest investment in the Gaydon facility, close to my constituency. On 18 September, INEOS Automotive announced that its headquarters and assembly plant for its SUV will be based in Bridgend. BMW’s new MINI Electric launched in July. JLR has made a massive investment in electric engines at Castle Bromwich. On 20 March, Toyota announced a collaboration with Suzuki to make an electric version of its Corolla model. That is all real investment, not “hot air”. The Labour party would crash the economy, raise taxes and have nothing—nowt—to spend on the green economy.
Julian Sturdy (York Outer) (Con)
The Secretary of State for Business, Energy and Industrial Strategy (Andrea Leadsom)
After two years as a sole trader at this Dispatch Box as Leader of the House, it is a huge pleasure to be here today with such a superb ministerial team. In addition to my Department’s vital work to help businesses to prepare for Brexit, we have set out three key priority areas for BEIS. First, we aim to lead the world in tackling climate change. From the Prime Minister chairing a new Cabinet Committee to our hosting of COP26 in Glasgow next year, our pathway to net zero is well under way. Secondly, we will seek to solve the grand challenges facing our society, from new support for our life sciences sector to developing fusion power to setting out how amazing UK innovations can solve the challenges of low productivity. Thirdly, we aim quite simply to make the UK the best place in the world to work and to grow a business.
Julian Sturdy
Will the Secretary of State reassure me that her Department is fully assessing the potential of UK peatlands and peatland restoration in regions such as North Yorkshire, where my constituency lies, in getting us to net zero? Peatlands are a carbon sink that absorb more emissions than the world’s oceans each year.
Andrea Leadsom
My hon. Friend is right that peatlands have a vital role to play in delivering net zero. In addition to £10 million to help to restore more than 6,000 hectares of peatland over a three-year period, we are working with Natural England on a number of pilot projects, including one in North Yorkshire, to test our approach for moving all peatlands in England on to a path of recovery and restoration.
Rebecca Long Bailey (Salford and Eccles) (Lab)
I welcome the Secretary of State to her place for our first BEIS orals together. I know that we will have many a productive exchange.
Nine thousand UK jobs lost and 150,000 holidaymakers repatriated at an estimated cost to the taxpayer £100 million, yet the former chairman of Thomas Cook confirmed that Government financial support would have allowed him to save the company. A report from Unite the Union and Syndex also showed that £188 million in bridging loans would have prevented Thomas Cook’s collapse. With reports that banks and investors were still willing, even on the day of the collapse, to support a deal provided that the Government stepped in, will the Business Secretary explain why she failed to meet with the company in the final days and clarify her rationale for not offering support?
Andrea Leadsom
First, I would like to reciprocate by saying that I am delighted to be working with the hon. Lady. I look forward to many exchanges across the Dispatch Box.
The hon. Lady will appreciate that my Department and I were very closely involved in the run-up to Thomas Cook’s insolvency. It is a Department for Transport lead and, as all hon. Members will appreciate, too many cooks can spoil the broth, so I liaised closely with the Secretary of State for Transport who took the lead on this, but BEIS officials were very closely involved.
At the weekend I wrote to the insolvency practitioner about clawback and malus, to ATOL about looking after the insurance for those who booked holidays, and to the banking associations about ensuring that proper restraint is shown to those who sadly lost their jobs in that run-up.
Why did we not bail out Thomas Cook? Simply because it was clear that the £200 million it was asking for was just a drop in the ocean. There was no way the company could realistically be restored, despite the Government seriously considering the prospects for doing so and for making it an ongoing concern.
Rebecca Long Bailey
It is interesting that the German Government saw fit to intervene. Not only did our Government refuse, they also failed to take the basic action needed to ensure good corporate behaviour. Today, reports demonstrate a clear conflict of interest for auditing firms that, while signing off on Thomas Cook’s finances, separately advised directors on securing bumper bonuses.
BHS, Carillion and the banks all had similar auditing conflicts. Sir John Kingman officially advised the Government nearly a year ago to create a more robust statutory regulator, but to no avail. Will the Secretary of State confirm if and when she will bring forward reforms to the Financial Reporting Council and the wider auditing sector, as proposed by the Kingman review, Professor Prem Sikka and the Competition and Markets Authority?
Andrea Leadsom
First, may I gently say to the hon. Lady that the situation in Germany was extremely different? It was a separate business in Germany. If there had been an opportunity to save Thomas Cook, we would have done so. We looked very carefully at the prospects—[Interruption.] The hon. Lady is just demonstrating a lack of understanding of how UK business works, and I am very sorry to hear that. She really needs to look at the facts here, and not just at trying to make a point. This was a very serious issue, and it was something the Government took very seriously.
We have done everything possible to protect those who sadly lost their jobs. I am delighted, but the hon. Lady did not even mention, that Hays Travel has taken over many Thomas Cook shops, which is fantastic news for many of those employees. She has also not paid any regard to the fact that the Government were able to establish a repatriation on the biggest scale ever in peacetime to bring more than 140,000 people back to the United Kingdom.
Vicky Ford (Chelmsford) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)
Good-quality flexible working is important to all employees and is central to good work. Workers’ rights matter. Over 97% of employers offer some form of flexible working, and our recent consultation looked at how further to increase the prevalence of flexible working by advertising jobs as flexible and by requiring large employers to publish their policy.
Kerry McCarthy (Bristol East) (Lab)
The Minister for Business, Energy and Clean Growth (Kwasi Kwarteng)
This subject has come up, and we need to look at how companies and exporters tackle serious carbon emissions. What they are doing in the Amazon is not acceptable. We need to engage with that and have a dialogue.
Douglas Ross (Moray) (Con)
The Minister for Universities, Science, Research and Innovation (Chris Skidmore)
The Government support growing our national space capabilities, especially by establishing the new national space council, which will be chaired by the Prime Minister. We are supporting Orbex to develop an exciting new launch vehicle technology with a grant of £5.5 million as part of our industrial strategy. We are keen to work with it as part of the wider national space framework we are establishing.[Official Report, 31 October 2019, Vol. 667, c. 3MC.]
Liz Twist (Blaydon) (Lab)
Kelly Tolhurst
I thank the hon. Lady for her question and I am more than happy to meet her to discuss her constituency in further detail if she would require. There is no programme of closures and the Post Office is working extremely hard, where post offices do shut for any, sometimes unpredictable, reason, to find replacements. We do have outreach services that are available when there is a lack of service, but I am happy to speak with her further about that.
Greg Clark (Tunbridge Wells) (Ind)
I welcome the Secretary of State to the Dispatch Box and hope that she will have distinguished tenure at this important time. She will know that the recommendations of the independent review of the Financial Reporting Council, conducted by Sir John Kingman, were widely endorsed and are urgently required. I was concerned that the statutory implementation of those recommendations was not included in the Queen’s Speech. Can she assure me that she is not going to miss a golden opportunity to make these reforms and give a big boost to our standing in the world?
Andrea Leadsom
First, let me pay tribute to my right hon. Friend, my predecessor, who did a fantastic job in this Department. I am delighted to stand by the position that he took as Secretary of State: it is the Government’s plan to legislate for a new regulator with stronger powers, replacing the FRC, as soon as parliamentary time allows. We are planning to progress this work in the first quarter of next year, once we have received Sir Donald Brydon’s review of the quality and effectiveness of audit.
Karen Lee (Lincoln) (Lab)
Kelly Tolhurst
I am not sure whether the hon. Lady is aware that we undertook one of the biggest recalls that has happened this year: the recall of Whirlpool tumble dryers. She will know that I have updated the House on the progress we have made on that. Since 12 June, when I announced the recall, we have had more than 90,000 contacts, with people getting in touch about recall. So we are continuing to improve and work on recall.
Michael Tomlinson (Mid Dorset and North Poole) (Con)
Heatric is a business in my constituency that is leading in clean energy, for example, carbon capture and storage, but it can do more. What more can the Department do to support businesses such as Heatric?
Chris Skidmore
Carbon capture, usage and storage is essential to meet our mission for net zero by 2050. We have committed £25 million so far to supporting new companies to progress CCUS, with an additional £100 million as part of the £505 million energy innovation programme. I know that my hon. Friend has taken Heatric to the Department, and officials are keen to ensure that they can continue to work with the company.
Christian Matheson (City of Chester) (Lab)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Nadhim Zahawi)
I think the hon. Gentleman would know that we already have agreements in place so that planes can continue flying. If he votes for the deal today, we will be in a much better place to leave in an orderly way.
Paul Masterton (East Renfrewshire) (Con)
More than half a dozen post offices in East Renfrewshire have closed over the past couple of years and not one has been able to be replaced, because it was not a viable business proposition for retailers. Does the Minister think that increased fees under the banking framework agreement will be enough to build the sustainability of the post office network?
Kelly Tolhurst
I thank my hon. Friend for that question. I am happy to discuss particular issues in his constituency. I believe that the new banking framework and the increase in remuneration that postmasters will be receiving as part of that framework will make a significant impact for postmasters. But he is right to say that we must not stop there. I am working hard, with the Post Office and the National Federation of SubPostmasters, to make sure that we have a post office network that is fit, relevant and viable.
Tommy Sheppard (Edinburgh East) (SNP)
Kwasi Kwarteng
The hon. Gentleman is right: carbon capture, usage and storage is going to be crucial to our meeting our net zero carbon target. We are committed to supporting its deployment in the 2020s. The Government are already funding programmes in this policy area worth more than £500 million, and we will have a useful dialogue with colleagues in the Treasury to encourage the development of the technology.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
Many businesses in my constituency depend on a constant flow of engineers entering the work- force. Will my right hon. Friend the Secretary of State tell the House how her Department is ensuring that enough young people take up engineering? What is she doing with other Departments to embed it in the curriculum?
Chris Skidmore
May I start by thanking my hon. Friend for his work as the Government’s engineering envoy and for the work he has taken forward as part of our Engineering: Take a Closer Look legacy campaign? We have so far invested £406 million in maths, digital and technical education to help to focus on the shortage of science, technology, engineering and maths skills, but we must ensure that the “E” in STEM is equally vital, so we will be taking forward work to put engineering at the centre of our STEM strategy.
Jessica Morden (Newport East) (Lab)
Nadhim Zahawi
The hon. Lady and I are set to meet on 29 October, and I am meeting the all-party group on steel the day before. I will do everything I can to work with Tata to see whether we can find a future for the steelworks.
David Morris (Morecambe and Lunesdale) (Con)
I draw the House’s attention to my entry in the Register of Members’ Financial Interests. In my constituency, we have two EDF nuclear power stations. Part of the EDF group is RTE, which is currently working with the British company Aquind to deliver cross-EU-border energy infrastructure. The EU Commission has just removed UK companies from its list of projects of common interests, which affects their regulation. Will my right hon. Friend urge Ofgem to step up and protect British companies by granting regulation as soon as possible in accordance with British law?
Kwasi Kwarteng
Absolutely. We had an official present in the room at that PCI meeting on 4 October. This issue has been raised with me and is a matter of concern.
Emma Dent Coad (Kensington) (Lab)
Kelly Tolhurst
I thank the hon. Lady for her question, but I have to disappoint her because my answer to it is no.
Kirstene Hair (Angus) (Con)
I was delighted to hear that Seagreen wind farm off the coast of Angus was successful in its bid in the UK Government contract for difference auction. It will be the most powerful wind farm throughout the United Kingdom and will have the ability to power up to 40% of Scottish homes. Would the Minister like to come to Angus and see the impact it is already having on our local economy? The local port has already secured the contract for the operations and maintenance base.
Phil Wilson (Sedgefield) (Lab)
Sedgefield is home to the largest business park in the north-east of England, with 500 companies and 10,000 to 12,000 jobs. More than 50% of the jobs and businesses there rely in some way on trade with the EU. If the Secretary of State has her way and there is no more frictionless trade with the EU, no more customs union and no access to the single market as there is now, does she not have a responsibility to publish an economic assessment on the effects that will have on my constituents’ jobs?
Andrea Leadsom
I am delighted that Hitachi in the hon. Gentleman’s constituency is doing so well and that the high value manufacturing catapult that has an operation in his constituency is also doing well—both supported by the Government. We are seeking to get the withdrawal agreement Bill through this House, so that we can move forward with a good free trade deal that works for the United Kingdom, the EU and the many people in his constituency who are employed in manufacturing, which is something in which the UK excels.