Oral Answers to Questions

Debate between Ian Lavery and Matt Hancock

Thursday 19th March 2015 Commons Chamber

[Ian Lavery (Wansbeck) (Lab)]

T7. Hundreds of jobs are still waiting on a state aid application from UK Coal. The Minister promised an announcement would be made before the Dissolution of Parliament. Will he confirm when it will take place and whether it will be before the Dissolution?

[Matthew Hancock]

This is an important issue for the two coal mines owned by UK Coal—two of the three remaining deep coal mines. I pay tribute to the hon. Gentleman, who has been steadfast and hard working in delivering on this issue. There will absolutely be a decision before the Dissolution of Parliament.

Open-cast Coal Sites (Restoration)

Debate between Ian Lavery and Matt Hancock

Thursday 29th January 2015 Commons Chamber

[The Minister for Business and Enterprise (Matthew Hancock)]

I join others in congratulating the hon. Member for Bridgend (Mrs Moon) on bringing this debate to the Floor of the House and opening it so clearly and strongly. I agree with the shadow Front-Bench spokesman, the hon. Member for Hartlepool (Mr Wright,) that there is broad consensus across the House on the scale of the challenge, which I acknowledge and which was described by the hon. Members for Bridgend and for Ayr, Carrick and Cumnock (Sandra Osborne), and by the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) in strong and lyrical terms. I acknowledge the scale of the difficulties and I look forward to working with Members on all sides to try to resolve them.

There is also consensus that the operation of open-cast mining involves a resource that can be brought out from under the ground, and therefore that the burden of restoration should fall not on the taxpayer but rather on those who benefited from the excavation and sale of the resource. In the time available I hope to address as many of the questions that were raised as possible.

Several hon. Members, including the hon. Member for Bridgend, commented on the time taken for a planning application to be approved, the different and complicated mechanisms needed, and the number of authorities involved. I acknowledge that and the further complication that the devolution settlement leaves responsibilities both for the UK Government, which are mostly executed through the Coal Authority, and for devolved Administrations. It is therefore important that the devolved Administrations are part of the solution. The hon. Member for Carmarthen East and Dinefwr described clearly the responsibilities of the Welsh Government. I spoke to Fergus Ewing, the Minister for Energy, Enterprise and Tourism in the Scottish Government, about the matter yesterday in advance of the debate today. Although it is disappointing to see that no SNP Members are in the Chamber, I made the Scottish Government aware of their responsibilities in relation to the difficulties that are most apparent in the south of Scotland.

The Chair of the Backbench Business Committee, the hon. Member for North East Derbyshire (Natascha Engel), asked what we can do to ensure that those who do not fulfil their obligations in a reasonable way can be debarred from future operations. I thought that was a good suggestion and I will explore the possibility of the Coal Authority having a role in vetting open-cast licence applications to examine past conduct. I cannot give the hon. Lady the full commitment on policy today, not least because this is the first time the possibility has been raised with me directly, but it is a sensible proposition which I will take away, and I will get back to her on that.

In a debate largely driven by consensus, it was good to have the hon. Member for Wansbeck (Ian Lavery), the representative of king coal, in full flow. He demanded that I reach this Dispatch Box and immediately change the tax regime of the United Kingdom to end the carbon price floor. I am sorry to have to disappoint him by saying that that is a matter for the Chancellor in a Budget, so far be it from me to announce it today. The hon. Gentleman will know that from next year we have frozen the carbon price floor and we have taken action to ensure that although we commit to our international obligations on tackling carbon emissions, we also support energy-intensive industries. As he said, carbon capture and storage represents a long-term future for coal consumption in energy production and potentially for UK production of coal.

The hon. Member for Hartlepool asked about the case for state aid for UK Coal. This debate is about open-cast mining, but of course we have a long and strong tradition of deep mining. We have received an application from UK Coal for state aid from Government. We are currently considering that application, and I do not want to prejudge any decision.

[Ian Lavery]

That is good news. When will the Government be in a position to reply to that request?

[Matthew Hancock]

I saw it for the first time this week, and it is under active consideration. I would expect to be able to respond in a matter of weeks, certainly before the Dissolution of Parliament.

As the right hon. Member for Berwick-upon-Tweed (Sir Alan Beith) said, restoration bonds are not only about open-cast coal mining; they are also about deep mining, as well as things like the fire in his constituency that raged for months and that he and I have discussed before. It is vital to get restoration liabilities and restoration cash tied together better.

The hon. Member for Hartlepool quite reasonably asked about questions of the past and questions of the future. In getting the future right, it is vital that we have a regime, including depositing money in escrow accounts and restoration bonds, that is watertight. On privatisation in 1994, the calculation of the costs of restoration was part of the decision as to how much companies paid for the opportunities they bought when they bought rights to a site. That was taken into account at the time. It is therefore not reasonable to say that money was put into a fund, with the taxpayer paying for the restoration at the end of the process. The money paid to the taxpayer for the coal that was bought, which was then in the ground and was going to be extracted, had set against it the future costs of restoration. That was encapsulated in the cost at which the companies purchased.

--- Later in debate ---

[Matthew Hancock]

The expected cost of future restoration was taken into account in the amount that the companies paid at the time for the right to mine.

We will work with all parties on this. I look forward to working with Treasury civil servants and, I hope, Ministers, but also with Members in the House today, with the Coal Authority, which has an important role to play, and with devolved Administrations and local government. I confirm the offer of the meeting that we discussed earlier this month. I will ask the Coal Authority to make sure that it makes itself available to Members to discuss, in particular, the detailed issue of having the often highly specialist expertise needed within mineral planning authorities to tackle these problems.

I want to turn to the Hargreaves proposal, which was recently discussed in Westminster Hall. The suggestion is that if available resources at unrestored sites orphaned by failed companies could be mined and sold exempt of carbon price support payments, sufficient revenue could be generated to restore the sites to a good standard. The proposal is unusual because it suggests using a tax exemption to pay for a cash obligation. Employment creation and retention and the offsetting of tax generated are cited as additional benefits, above and beyond the core environmental question.

We are working with the Treasury on whether there can be exemptions from the carbon price floor. The Treasury has the lead on the carbon price floor because it is a tax, but that issue is worth considering. The CPF exists to enable us to meet our climate obligations, and it is an important part of our armament for tackling climate change. We have capped the carbon price floor—we have fixed it, so to speak—but I am happy to look at that and to continue to discuss it with my hon. Friends.

[Ian Lavery]

The Hargreaves proposal only relates to Scotland. Is the Minister happy to meet CoalPro, which represents open-cast operators in the UK, to discuss a UK-wide solution based on the Hargreaves proposal?

Oral Answers to Questions

Debate between Ian Lavery and Matt Hancock

Thursday 6th November 2014 Commons Chamber

[Matthew Hancock]

I would be absolutely delighted to visit Cleethorpes and the Humber estuary, which is increasingly a crucial cluster for our energy supplies and energy security. I pay tribute to my hon. Friend for all his activity, and for his promotion of Cleethorpes and the whole of Humberside, specifically with regard to the role that they play in our energy generation.

[Ian Lavery (Wansbeck) (Lab)]

What role does the Minister see for the British deep-mine coal industry in future energy supply and future energy security in the UK?

[Matthew Hancock]

I have been working hard with UK Coal to ensure that we can refinance it. The Government have put in a £4 million loan on a commercial basis, so we are working incredibly hard in that regard. The hon. Gentleman should also take up this matter with his own Front-Bench team who voted to accelerate the closure of coal-fired power stations, which would of course to help to undermine the coal mining industry.

Oral Answers to Questions

Debate between Ian Lavery and Matt Hancock

Thursday 23rd January 2014 Commons Chamber

[The Minister for Skills and Enterprise (Matthew Hancock)]

Yes, I am a great supporter of Lowestoft college, which it was a pleasure to visit last year with my hon. Friend. It has a centre for the promotion of engineering and training in the offshore industry, which is so important to the town, and I will do everything I can to support it.

[Ian Lavery (Wansbeck) (Lab)]

T4. Blacklisting is a scourge of any civilised society. Will the Secretary of State guarantee to the House that the confidential documents currently being withheld by the Government relating to the Shrewsbury 24 dispute in 1973 do not include extensive details relating to individuals who have been blacklisted and the companies operating this very sharp practice?

Skills (North-East)

Debate between Ian Lavery and Matt Hancock

Wednesday 27th November 2013 Westminster Hall

[The Minister for Skills and Enterprise (Matthew Hancock)]

It is a pleasure to serve under your chairmanship, Mr Betts. I will respond to as many of the points that my hon. Friend the Member for Hexham (Guy Opperman) made in his excellent speech as I can. He is a passionate supporter of not only Hexham, but the whole north-east. He made a strong case in an important debate. One particular reason why it is good news that we are debating the north-east approach to skills and apprenticeships is that the region is blazing the trail and is at the forefront of some of our policy thinking, which I shall come to later.

I thoroughly enjoyed my visits to Newcastle college and Northumberland college earlier this year with my hon. Friend. We were photographed in an empty shell of a building and I very much look forward to seeing the college now the new building is up, running and, I understand, buzzing with learners. That is just as well, because the number of over-19s in further education in the north-east went up by 6% in the last year for which figures are available. There is clearly an increasing demand for education and skills at that level, among not only employers—we heard a lot of stories that corroborate the evidence I have on the demand from employers—but students as well.

My hon. Friend mentioned the need for university technical colleges in the area. We warmly welcome all applications for UTCs. We approve those proposed by the strongest groups in areas where new schools are needed most and those that have rigorous education and recruitment plans. I am sure he agrees that it is important to ensure that new provision is rigorous and responds to the needs of local employers, not least because UTCs provide the opportunity for employers and universities to work together, and therefore drive up the standard of technical education between 14 and 18. We are considering the south Durham UTC application, with others we have recently received, and we have interviewed the applicant group. Applicants will be notified of the outcome in the new year. Lord Nash and the Secretary of State will make the decision in due course.

My hon. Friend also talked about the need to improve standards and quality in the skills system. I strongly endorse that point. Last month’s report by the OECD, comparing skills levels across the whole developed world, was a stark reminder of how much more we need to do. We—England and Northern Ireland—were the only country in which the skill level in maths and English of our 15 to 25-year-olds was no higher than that of our 55 to 65-year-olds. In the long-running debate about whether more exam passes mean better education, that is extremely strong independent evidence that we have to stop that flatlining and start improving our standards, because every other country in the developed world is doing that. That is hugely motivating in the task of driving up standards, especially when youth unemployment is far too high, although thankfully it is now falling. At the same time, there are increasing skills shortages, some of which my hon. Friend mentioned.

We have introduced faster and more robust intervention processes for failing colleges and we driven up the quality of provision through a new and more rigorous Ofsted inspection framework. We are reforming qualifications so that we fund only those that employers sign off. I do not know whether my hon. Friend has managed to read Nigel Whitehead’s report, but its recommendations are sensible and are about driving rigour and responsiveness through the adult qualifications system.

That brings me to the proposal by the north-east LEP. My hon. Friend mentioned that it is one of three LEPs through which we are piloting a new mechanism to ensure that there is local influence over the use of the skills system. He said that he was thrilled that the north-east LEP was chosen for the pilot. I would go further: the north-east LEP invented the idea and brought it to us. We were impressed by it, and two other LEPs came on board to ensure that the mechanism was piloted in more than one area. The north-east LEP is not only a leader on piloting; it is a thought leader on how we can ensure that the skills system is responsive to local need.

My hon. Friend asked for details on how the proposal will work. The proposal is that 5% of funding for all adult provision outside apprenticeships will be allocated if, and only if, the provision is in line with LEP priorities. The LEP will have sign-off. Rather than giving 5% of the funding to the LEP, we have instead said that the LEP will have the final say over what is essentially a quality payment—the final 5% of all adult skills funding outside apprenticeships. That will ensure that the whole provision is targeted at LEPs’ needs. There is good collaboration in the north-east between the LEP and colleges, and the proposal will help to incentivise education providers to look to the strategic needs of business—not only directly but through the LEP—and ensure that the LEP focuses on that. Our job is to ensure that there is enough flexibility in the funding system to allow providers to switch provision according to the needs of local private or public sector employers. That will ensure that the system is filling skills shortages.

In the past, when there have been shortages of training in one area, people have come to the Minister and said, “There is a shortage in this area. Can you fix it?” There is one thing I know for sure, and that is that I do not and cannot know, through a central bureaucracy, the skills needs of every area. It is far better to try to make the system responsive to local need, instead of trying to direct solutions to skills shortages from Whitehall. The proposal is about making it easier for colleges to respond to the needs of employers.

The proposal is also about providing capital for skills provision. Capital funding will follow LEP priorities from 2015-16. Very recently, the Secretary of State for Business, Innovation and Skills announced that we would be financing a further £330 million of skills capital in 2016-17, which provides the long planning horizons that many crave. Those horizons have been too short term in the past.

I pay tribute to the work of all those involved in getting the pilot with the north-east LEP up and running as a policy. It will hit the ground running from September 2014. That policy is part of a broader attempt at making the skills system more responsive to employers. I mentioned that it does not cover apprenticeship funding, which is because we have a broader set of reforms on how apprenticeships are funded to ensure that funding is directly responsive to employers’ needs. We will be working through employers. The taxpayer rightly pays a subsidy towards apprenticeships, because if someone is in an apprenticeship, they are not only doing the job but learning. Apprenticeships benefit the employer, the apprentice and wider society. Recognising that, the taxpayer subsidises apprenticeships. We are changing how they are delivered so that the employer has more of a say over what training happens within an apprenticeship. That will ensure that the training fits the needs of the apprentices and the employer, which will drive up standards.

My hon. Friend quoted the views of a local site manager and talked about spreading the word on the benefits of apprenticeships. As the Minister responsible, I could not agree more. It is just as competitive to secure an apprenticeship at a top employer, such as Rolls-Royce or BT, as it is to get into Oxford or Harvard.

[Ian Lavery]

Does the Minister, like me, welcome the announcement by Northumberland county council earlier this week that it has an ambition to double the number of apprentices linked to the council? It is looking to employ 360 apprentices directly with the council. Some 23 apprenticeships will be immediately created, adding to the total of 134 already on the council’s books already.

[Matthew Hancock]

I had not heard that, but at face value that sounds absolutely terrific. We have a goal of making it a norm in this country that every young person who leaves school goes to university or into an apprenticeship. Rather than trying to push them one way or the other, we want to ensure that there are good choices available on either side. Increasingly, employers, whether private or public sector—including Northumberland county council—are introducing an apprenticeship stream in addition to a graduate scheme. The civil service has just brought in an apprenticeship fast stream to match its graduate fast stream. This week, MI5 and MI6 announced that they are introducing an apprenticeship scheme in addition to their more traditional graduate recruitment. That is happening across different businesses and different parts of government. Someone can now become an apprentice spy, which is interesting, although MI5 and MI6 have not yet told me all the details that someone would learn.

We have an ambition, but we will only be able to persuade people that it is the right ambition so long as we continue to drive up the quality of apprenticeships. The very best apprenticeships are world class, but we have to ensure that quality goes up across the board. We have brought in some tough measures to increase quality by ensuring that all apprenticeships last a minimum of a year, that the English and maths requirements are stronger and that there is actually a job. In the past, some apprenticeships happened without a job attached. Those measures have meant that we have had to remove some low-quality provision. In the medium to long term, that is undoubtedly worth it and will ensure that the apprenticeship brand remains strong.

I agree strongly with the point that several hon. Members have made, including my hon. Friend the Member for Stockton South (James Wharton), that apprenticeships need to reflect the whole economy. The old industries in which apprenticeships were strong, such as engineering and manufacturing, are important, but it is also important that apprenticeships cover the whole economy as it is today. They should include professional services and computing, for instance, in a way that they did not in the past.

The north-east LEP is one of our thought leaders, and we listen carefully to its suggestions. I am watching the pilot’s progress closely to see whether it should be spread more broadly. There is no stronger advocate for the passion with which the north-east is coming together to deliver on skills training and ensure that everyone reaches their potential than my hon. Friend the Member for Hexham, although my hon. Friend the Member for Stockton South and all the other hon. Members who have spoken in this debate are strong advocates, too.

Enterprise and Regulatory Reform Bill

Debate between Ian Lavery and Matt Hancock

Tuesday 16th October 2012 Commons Chamber

[Matthew Hancock]

The benefits are set out clearly in Löfstedt. Most importantly, because it is necessarily difficult to ascertain the amount of over-compliance, Britain’s health and safety system will benefit from being able to compete and focus its resources on avoiding substantive breaches of health and safety law rather than on technicalities and over-compliance. All parties should focus on problems such as death in the workplace due to negligence. The hon. Member for Paisley and North Renewfreshire—[Laughter.] North Renewfershire—

[Ian Lavery]

If the proposals are passed by Parliament, does the Minister envisage a great reduction in the number of fatalities in the workplace next year?

Horse Racing Levy

Debate between Ian Lavery and Matt Hancock

Thursday 20th January 2011 Commons Chamber

[Matthew Hancock]

My hon. Friend is a very wise man.

Racing is no different from other intellectual property. We need a new, fair structure that keeps British racing the best in the world and ensures that those who profit from racing help to pay for racing, so I support a racing right.

[Ian Lavery (Wansbeck) (Lab)]

I congratulate the hon. Gentleman on bringing this topic to the Floor of the House. The motion requests that proposals are made on the funding of racing, including the levy and commercialisation. Does he agree that, if we have a wholesale review of the funding of racing, greyhound racing should be included, so that a statutory levy could be introduced to fund that sport?

[Matthew Hancock]

The hon. Gentleman makes an important point, and the relationship with greyhound racing—in which racing has again lost out in recent years—is an important consideration.