Government Departments: Communication with Industry and Commerce

Debate between Lord Bilimoria and Lord Callanan

Monday 14th November 2022 Lords Chamber

[Lord Callanan (Con)]

I assure my noble friend that communication is very much on track. The first meeting that the new Business Secretary had following his appointment was with the “big five” business representative organisations, which collectively represent around 750,000 businesses.

[Lord Bilimoria (CB)]

My Lords, in my two years as president of the CBI, I saw the power of government, business and the CBI working together, whether it was the furlough scheme or lateral flow tests. Can the Minister reassure us that the Government are listening to the CBI regarding supply-side reforms, which are desperately needed for the 17 November Budget?

Also, the noble Lord, Lord Naseby, talked about business and government. Does the Minister agree on the power of business, government and universities working together, as with Oxford University on the vaccine and Birmingham University on the world’s first retrofitted hydrogen-powered train?

[Lord Callanan (Con)]

I am happy to agree with the noble Lord. The CBI was one of the organisations that my right honourable friend the Business Secretary met only last week.

Small Modular Nuclear Reactors

Debate between Lord Bilimoria and Lord Callanan

Tuesday 28th June 2022 Lords Chamber

[Lord Callanan (Con)]

We are providing immediate support to Rolls-Royce to develop the SMR; we provided it with £210 million to do exactly that. However, it is important that we go through all the relevant design approvals to make sure that SMRs are safe and easy to deploy. That is an important step to go through and which is legislated for in this country, and we should make sure that we follow it.

[Lord Bilimoria (CB)]

My Lords, building a large nuclear reactor takes well over a decade but, once built, it can power 7% of this country’s electricity. However, I am reliably informed that these small modular nuclear reactors can be put up within four to five years. Why are the Government waiting? These reactors can power a city the size of Sheffield. Why not do it now in order to have cleaner energy and to be more energy self-reliant?

[Lord Callanan (Con)]

The noble Lord might want to ask the people of Sheffield whether they want an SMR beforehand. As a serious point, this is very important; indeed, it is a matter of legislation that reactors are proved to be safe. I agree that it is a shrunken design of existing reactors; these are on a much smaller scale and designed in a modular way. It is important that we go through all the relevant approval processes. The design is not yet complete, and they have not even been submitted yet for GDA.

Climate Change

Debate between Lord Bilimoria and Lord Callanan

Tuesday 7th September 2021 Lords Chamber

[Lord Callanan (Con)]

As I said in response to a previous question, I admire the ambition of the noble Lord and his noble friend, but we have already achieved more than the vast majority of countries in the world. We have one of the most ambitious policies and one of the most ambitious reduction targets. We have made some of the fastest progress among all the G7 countries. Of course, it is right for the Opposition to keep pushing us to go further and faster, but we have done a lot.

[Lord Bilimoria (CB)]

My Lords, if anybody still has any doubts about the scale of the climate crisis, this report must surely put those to bed. As president of the CBI, I am very proud that one-third of the largest businesses in the UK with a market cap totalling £650 billion have already committed to net zero by 2050, but does the Minister agree that, although the UK’s 10-point plan is ambitious, we need to see more detail and clear timeframes for delivery?

[Lord Callanan (Con)]

Indeed. I can agree with the noble Lord on the first part of his question. It has been encouraging to see the number of major businesses that have joined us in the race to net zero. I pay tribute to the work of the CBI in helping us to do that. But we have already set a number of quite ambitious targets. We have legislated in this House for the carbon budgets, and we will produce the net zero strategy before COP, which will see further progress.

Covid-19: Vaccine Production

Debate between Lord Bilimoria and Lord Callanan

Thursday 17th June 2021 Lords Chamber

[Lord Callanan (Con)]

My noble friend is correct and speaks with great authority on this subject, but the best way forward is voluntary licensing and technology transfer partnerships. They are making a real and positive impact on vaccine delivery, and the UK Government will of course do all we can to facilitate this process.

[Lord Bilimoria (CB) [V]]

My Lords, as president of the CBI, I chaired the B7, which fed into the G7. The B7 was attended by Dr Ngozi, the new director-general of the WTO. There was unanimous agreement on the free flow of trade for the manufacture and distribution of vaccines. Do the Government agree that there needs to be unhindered trade for vaccine manufacture and distribution? The Pfizer/BioNTech vaccine, for example, contains 280 different components, manufactured in 86 different sites across 19 countries. Does the Minister also agree that, although it is good that the UK and US have agreed to supply 600 million surplus doses of vaccines around the world, what is actually needed is for the wealthiest countries in the world to urgently finance and help enable the manufacture and distribution of 11 billion doses, including at the Serum Institute of India, which the Minister just mentioned?

[Lord Callanan (Con)]

There was a lot in those questions. The best way to facilitate this is through the COVAX initiative. The UK is proud to be one of its largest funders. We have helped to raise almost $1 billion for that initiative, which is helping to supply vaccines to 92 developing countries across the world.

Post Brexit: Small Service Businesses

Debate between Lord Bilimoria and Lord Callanan

Monday 24th May 2021 Lords Chamber

[Lord Callanan (Con)]

The proposals from the EU were complicated and would not have resolved many of these issues, so the noble Baroness should be wary of believing some of the propaganda she reads. We tried to reach a comprehensive agreement, but our proposals were rejected by the EU. I know that she will find this hard to believe but that is what happened in practice.

[Lord Bilimoria (CB) [V]]

My Lords, the nuances of the TCA mean country-by-country understandings for business travel. The CBI, of which I am president, welcomes the recently published guidance from the Government. However, do the Government agree that, as travel restrictions ease, government support should be provided to help businesses, particularly SMEs, navigate these complex new requirements? Do the Government also agree that the UK and the EU should work together to make these processes as efficient as possible?

[Lord Callanan (Con)]

I agree with the noble Lord, and we are doing exactly that to support SMEs. The Government have announced a £20 million SME Brexit support fund. We have also established a network of 38 growth hubs to support businesses, one in each local enterprise partnership area in England, and will continue to offer whatever support we can to business.

Audit and Corporate Governance

Debate between Lord Bilimoria and Lord Callanan

Tuesday 23rd March 2021 Lords Chamber

[Lord Bilimoria (CB) [V]]

Professor Karthik Ramanna of the Blavatnik School of Government at Oxford said in the FT last week that corporate auditing is in crisis and that the UK Government have announced a bold set of proposals aimed at restoring public trust in audits and markets. The UK’s reputation as a world leader in corporate governance is highly prized and a vital part of what makes the UK an attractive place to invest and do business. What assessment have the Government made of the impact of these reforms on UK businesses, and how will the Government ensure that they will not affect the country’s ability to attract foreign investment nor stifle entrepreneurial spirit?

[Lord Callanan (Con)]

I do not agree that the audit market is in crisis. Some worthwhile improvements can be made, which is what we are proposing. The noble Lord will see that a full impact assessment is attached to the proposals.

Hospitality Sector Minister

Debate between Lord Bilimoria and Lord Callanan

Wednesday 3rd February 2021 Lords Chamber

[Lord Callanan (Con) [V]]

As I said in my previous Answer, the responsibility for creating new ministerial positions rests with the Prime Minister. I think he has responded in writing to some of these questions from the Liaison Committee on that matter.

[Lord Bilimoria (CB) [V]]

My Lords, the hospitality industry has suffered more than just about any other sector over the last ten and a half months, being closed for more than half that period. Does the Minister agree that the Government should provide a road map, as the CBI—of which I am president—has recommended? This would guide businesses on the opening up of the economy, including whether a tier system is going to return and the use of rapid mass tests. Does he also agree that business support needs to be extended for the hospitality industry in particular, including extending the furlough scheme until the end of June and the business rates holiday, so that there is no March cliff edge?

Covid-19: Impact of No-deal Brexit on Vaccine Supplies

Debate between Lord Bilimoria and Lord Callanan

Wednesday 16th December 2020 Lords Chamber

[Lord Bilimoria (CB) [V]]

My Lords, we have the Pfizer/BioNTech vaccine available, with more than 137,000 people inoculated in the first week, and we hope to have the Oxford-AstraZeneca vaccine available soon, approved by the MHRA. In due course, when there is widespread availability of the vaccines, will the Minister look at getting businesses to work with the Government and the NHS to have vaccinations take place at large workplaces, including factories, under proper supervision, thus preventing disruption at work and speeding up the rollout of the vaccinations and saving lives?

[Lord Callanan (Con)]

This is a matter, of course, for the Department of Health and Social Care, but we will indeed want to work with businesses, as we have done on the supply of vaccines. We pay tribute to the work of the Vaccine Taskforce, which has done a tremendous job. We have 357 million doses of vaccines from seven leading candidates, some of which are manufactured in the UK and some abroad. We have worked very closely with business and we want to continue to do so in the future.

Covid-19: Vaccine Taskforce

Debate between Lord Bilimoria and Lord Callanan

Tuesday 10th November 2020 Lords Chamber

[Lord Callanan (Con)]

The noble Lord is making baseless accusations there. The first thing to point out is that Dominic Cummings had no role whatever in any of these procurement processes or appointments. The specialist communications support was contracted by the Vaccine Taskforce. Details of all arrangements and all firms and contract labour used by the task force will be published in due course with the usual transparency arrangements.

[Lord Bilimoria (CB) [V]]

My Lords, the whole world is delighted with the news of the Pfizer BioNTech vaccine announced yesterday. Does the Minister agree that credit needs to go to Kate Bingham and the Vaccine Taskforce for operating at such speed to procure, at scale, a range of vaccines in development around the world, including the Pfizer BioNTech vaccine? Does he also agree that business should have a prominent and critical role in rolling out and distributing the vaccines across the UK in the months to come?

[Lord Callanan (Con)]

I agree with the noble Lord; I think the Vaccine Taskforce has done a great job, and I think the announcement this morning is testament to that. Let me reiterate that she has taken on this role of chair in an unpaid capacity in the true spirit of public service. It has invested in something like six vaccines— 350 million doses have been secured—to try to pick one of the vaccines that will be effective. The task force is doing a great job, and we will see that in due course.

UK Internal Market: White Paper

Debate between Lord Bilimoria and Lord Callanan

Wednesday 29th July 2020 Lords Chamber

[Lord Callanan]

My noble friend makes an excellent point, as he so often does. These proposals are designed to ensure that devolution can continue to work for everyone while ensuring that seamless trade in the United Kingdom can continue. From 2021, the devolved Administrations will have power over many more issues than they have ever had before as policy areas formerly managed by the EU flow back to them for the first time. Our proposals would do nothing to stop those Administrations introducing rules and regulations for their own businesses operating within their region, as long as those proposals were not applied discriminatorily.

[Lord Bilimoria (CB) [V]]

My Lords, businesses up and down the UK have worked with devolution for over 20 years. Will the Minister confirm that the proposed UK internal market Bill must continue to respect the devolution settlement while providing certainty to firms as powers are returned from the EU to the UK? Will the internal market work to ensure that costs or barriers to doing business between different parts of the UK are not increased, and, learning from the lessons of Covid, when collaboration has worked so well, will there be even greater collaboration between Westminster and the devolved Administrations? To build on what the noble Baroness, Lady Kramer, said, will we ensure a proportionate and independent approach to adjudication that is respected by all Administrations? Preserving the integrity of the internal single market is the economic glue binding our four nations together.

[Lord Callanan]

I agree with the noble Lord that the internal single market is indeed the economic glue that binds the four nations together. I can confirm that we will continue to respect the devolution settlement and indeed, as I said in response to earlier questions, the devolved Administrations are gaining many new powers as we leave the European Union. There is no power grab involved here—in fact, the opposite is the case—and we will continue to want to work as quickly as possible with the devolved nations and legislatures as much as we can.

Environmental Projects

Debate between Lord Bilimoria and Lord Callanan

Thursday 2nd July 2020 Lords Chamber

[Lord Callanan]

That is an important issue. We keep things such as the building regulations under constant review, but we need to proceed at a pace that the building industry can cope with and that consumers will accept.

[Lord Bilimoria (CB) [V]]

My Lords, we welcome the Prime Minister’s emphasis on promoting a green recovery in his “Build, build, build” speech. Will the Minister inform us whether the formation of the Green Investment Bank, launched in 2012 with £3 billion, was key to backing the offshore wind industry? It was sold to Macquarie in 2017. Will the Government form a new green investment bank? What about collaborating with countries such as India, which has set a target of 100 gigawatts of solar power by 2022 to lead the world in solar power? Should we partner with countries such as India?

[Lord Callanan]

The role of green finance is particularly important; it is one we are working closely on. The former Governor of the Bank of England is leading our efforts on that. Of course, we must partner with many other countries around the world. This is a global challenge and has to be addressed on a global level. India will play a crucial role, as will many other countries.

Covid-19: Business

Debate between Lord Bilimoria and Lord Callanan

Wednesday 13th May 2020 Lords Chamber

[Lord Bilimoria (CB)]

My Lords, we are grateful to the Government and the Chancellor for all the help for business, including the extension of the job retention scheme until October. However, the Statement on workplace guidance makes no mention of testing at all, and today it is almost two months since the director-general of the WHO said, “Test, test, test”, and the Prime Minister has said that there is now a target of reaching 200,000 tests a day by the end of this month. Will the Minister tell us whether companies and businesses have access to testing for their workforces so that employees can be tested when they go to work? They can then have the confidence if they have a negative test that they can work knowing that they are healthy, and their colleagues and consumers can also have that confidence. Is testing available widely to employers and businesses now?

[Lord Callanan]

The noble Lord makes a very valid point. Our priority remains that testing patients to inform their clinical diagnosis is extremely important. We are also offering tests to all essential workers, including NHS and social care workers with symptoms, anyone over 65 with symptoms, anyone with symptoms whose work cannot be done from home and anyone who has symptoms of coronavirus and lives with any of those identified above. Yes, testing is extremely important. The Prime Minister has addressed that we have a strategy that we are working towards.

Covid-19: British Business Bank

Debate between Lord Bilimoria and Lord Callanan

Thursday 30th April 2020 Lords Chamber

[Lord Callanan]

I thank the noble Lord for his question; he makes a good point. We have received lots of helpful feedback from stakeholders on how the schemes have been working. He will be aware that, on Monday, the Chancellor announced further steps to ensure that lenders have the confidence they need to process these applications. We have removed the forward-looking viability test and the per-lender portfolio cap, to give lenders the full 80% guarantee across all CBILS lending. We keep the scheme under constant monitoring and are available for any future changes.

[Lord Bilimoria (CB)]

My Lords, although business is very grateful for the help that the Government are giving, including the new bounce-back loans, which are 100% guaranteed up to £50,000, the Minister said that just £4 billion has been given to 25,000 companies in the six weeks since the scheme launched. Will the Government consider guaranteeing up to £500,000 for 100% of the banks, as the Swiss and the Germans have? This will ensure that the money gets through to the companies that need the money now to survive this crisis and then the revival and restart. Will he also confirm that the portfolio guarantee limit of 60% per bank has been removed, and that it is 80% or 100% back to back?

[Lord Callanan]

The new bounce-back loan scheme that the noble Lord referred to will ensure that the smallest businesses can access loans from £2,000 to up to £50,000 in a matter of just days, capped at 25% of the firm’s turnover. On his second point, we have also removed the portfolio cap for loans under the CBIL scheme, meaning that lenders can access the full 80% guarantee for each loan.