Economy: Productivity
Lord Foster of Bath Excerpts(7 years, 3 months ago)
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Lord Prior of Brampton
The right reverend Prelate makes an important point. Not only is mental ill health a disaster for people individually, it also affects the productivity of the whole workforce. It is hard to answer the question because companies vary so much. There are some great employers who do an excellent job of looking after the well-being of their employees, and there are some who, as we know, do a rotten job. I would like to take away the question the right reverend Prelate asked and write to him in more detail.
The Lord Privy Seal (Baroness Evans of Bowes Park) (Con)
My Lords, if we have two short questions, we can hear from the Liberal Democrat Benches and then the Labour Benches.
Lord Foster of Bath
My Lords, business investment in training is vital to improved productivity. We know that the apprenticeship levy was designed to help in that, yet the Government have missed the January deadline for setting up the online service and the IFS says that it is going to give poor value for money. How is business going to benefit when it is having to cope with this mismanagement of the apprenticeship levy by the Government?
Lord Prior of Brampton
My Lords, the apprenticeship levy is designed to produce another 3 million apprentices over the next four or five years, which will mark a transformation in the number of apprentices we have in this country. The noble Lord referred to the online service. I shall have to investigate that and write to him.
Important Public Services (Border Security) Regulations 2017
Lord Foster of Bath Excerpts(7 years, 3 months ago)
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Lord Foster of Bath (LD)
My Lords, neither the Minister nor I served on the committee that discussed the Trade Union Bill. However, he will be well aware, no doubt from reading Hansard, that my party made many of the proposals in what was then the Bill and is now the Act. We remain concerned about all those, including those aspects now being introduced through these regulations.
In the first set of regulations, the Government have identified within what they have defined as “important public services”—health, education, fire, transport and border security—the personnel that they believe should be covered, so refining, as the Government put it, the list of the important public services. Within education, for example, it is teachers and head teachers but not, one assumes, caretakers, although they are very important in the running of our schools. Although we are critical of the way that the Government have failed to listen to many aspects of the consultation that took place, we are at least pleased that in this one respect—in relation to ancillary workers—the Government have listened. We welcome that very much indeed.
These important public services are the ones that the Government have decided must meet not only the 50% turnout threshold criteria but also a requirement that at least 40% of those eligible to vote must have voted for strike action before it can proceed. That means, for example, that in a ballot where the turnout is just over 50%, taking industrial action would require some 80% of those voting to do so in favour. During the passage of the Bill, although we saw some merits in the setting of a threshold for turnout, we argued against the imposition of the 40% threshold. In the words of the noble Lord, Lord Kerslake, at Second Reading, it is,
“a very stiff test indeed”.—[Official Report, 11/1/16; col. 79.]
It is hardly, as the Minister sought to describe it, a proportionate approach to the problem as the Government see it.
We noted at that time, and continue to do so, that business support for these measures is lukewarm. The Chartered Institute of Personnel and Development has said that the plans are,
“an outdated response to the challenge of the modern workplace”.
Only yesterday, in the Evening Standard, we saw the results of an Ipsos MORI poll, which showed, for example, that nationwide only 37% of the public support limits on the rights of train drivers to strike, and only 35% support limits on teachers. Imposing a 40% threshold is a stringent limit. It is not a proportionate limit and it is one that is clearly not supported by the public.
As my noble friend Lord Stoneham argued during Second Reading, the 40% threshold brings with it other problems as well and would make resolving disputes more difficult. He said:
“Disputes have to be resolved through a bargaining relationship; if that is not understood, we will be led to unintended consequences. If you have thresholds, the unions will work to achieve those thresholds, so strikers could become more intransigent”.—[Official Report, 11/1/16; col. 118.]
On these Benches, we also argued that quite simply no evidence has been produced by the Government that the workers who did not vote in the strike ballot are any less willing to withdraw their labour than the ones who actually did. Of course, we noted, as many did during those deliberations, that in the 2015 general election the Conservative Party won by a majority of just 12 seats—the smallest majority since 1974. More importantly, it did so with less than 24% of registered voters. The noble Lord, Lord Kerslake, played a very active part in those deliberations, and I love quoting him. At Second Reading, he said,
“the current Government happily govern with fewer than one-quarter of the electorate supporting it, and fewer than 40% of those who voted”.
He went on to say:
“That tells me as much about why we need electoral reform in this country as it does about trade union democracy”.—[Official Report, 11/1/16; col. 79.]
I entirely agree with him.
Brexit: Single Market and Workers’ Rights
Lord Foster of Bath Excerpts(7 years, 3 months ago)
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Lord Prior of Brampton
My Lords, it would be a huge misjudgment and mistake for any British Government to think that eroding the rights of UK workers and making them less engaged and productive would contribute in any way to us being more competitive. In the same way that we want to have low tax rates, we want to have a fully engaged and well-trained workforce.
Lord Foster of Bath (LD)
My Lords, as the Minister confirmed, the Prime Minister has agreed that all workers’ rights enshrined in EU law will be transferred into UK law—but then “where practical” was added. Which workers’ rights cannot be practically transferred into UK law?
Lord Prior of Brampton
Off the cuff, I cannot think of any rights that would fall into the area of “not practical”. The Prime Minister went further: she is committed, as is our whole industrial strategy, to bringing decent, well-paid, skilled jobs to Britain, including to many parts of the country where they have been sadly depleted over many years.
Brexit: Medical Research and Innovation
Lord Foster of Bath Excerpts(7 years, 5 months ago)
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Baroness Neville-Rolfe
I entirely agree with the noble Baroness about the importance of our unique life science industries. Regarding the clinical trials regulation, preparations are continuing to implement that regulation in 2018 because we remain in the EU while negotiations continue. Of course, a great repeal Bill will come before Parliament after the next Queen’s Speech. That will end the authority of EU law and return power to the UK, but we will transpose current EU law into domestic law while allowing for amendments to take account of the future negotiated UK-EU relationship in this and other areas.
Lord Foster of Bath (LD)
My Lords, does the Minister accept that if we are to succeed in medical science research and innovation we need more home-grown science and maths graduates? That requires more science and maths teachers in our schools. Is she aware that teacher training targets are being missed, that vacancies are rising, that retention rates are falling, and that now more than a quarter of maths and science teachers have no relevant post A-level qualifications? What action are the Government taking?
Baroness Neville-Rolfe
The situation on STEM teaching is incredibly important. Indeed, thinking about our skills and how they relate to our industrial base, and our research and innovation will be a key strand of our industrial strategy, on which we will issue a consultation paper this side of Christmas.
Nissan: Sunderland
Lord Foster of Bath Excerpts(7 years, 6 months ago)
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Lord Mendelsohn (Lab)
My Lords, I thank the Minister for repeating the Statement made in the Commons.
The announcement on 27 October by Nissan Motor Company that it will produce the next Qashqai and will add production of the next X-Trail model at its Sunderland UK plant is to be welcomed. This increase in its investment in Sunderland will not just secure and sustain the jobs of more than 7,000 workers at the plant but be welcome news to workers holding the 28,000 British automotive supply chain jobs and the tens of thousands of jobs in the local economy that are dependent on the thriving plant there. It is, of course, a great tribute to the extraordinary workforce there, and we are very pleased to associate ourselves with the comments about their great achievements.
It is also entirely appropriate to pay tribute to Nissan’s commitment to the UK and its fantastic record since the plant opened in 1986. It is, I believe, not just the UK’s largest car plant but the largest plant ever in the UK. To date, Nissan has invested more than £3.7 billion in Sunderland. It stands as a globally competitive powerhouse of manufacturing and is proof that the UK can and should excel in manufacturing.
In his statement, the Nissan chairman and CEO made two important points, which are the reason for the Minister’s Statement and the Secretary of State’s foray into the media and on to the news programmes over the weekend. He said that:
“The support and assurances of the UK Government enabled us to decide”;
and, secondly, that he welcomed the Prime Minister’s,
“commitment to the automotive industry in Britain and to the development of an overall industrial strategy”.
I ask the Minister to provide the House with more detail around a few important issues, such as the nature of the assurances, the Government’s openness with dealing with underpinning the economy in dealing with the consequences of Brexit and their approach to assurances for other areas of the economy.
We heard over the weekend—there were perhaps more details in the interview with Marr than in the Statement—a number of announcements in relation to the commitments given to Nissan. The first is that this deal is on offer to the whole car industry. Will the Minister confirm that all aspects of the support package will be available to the companies operating assembly plants in the UK? Does it also apply to the more than 650 automotive companies and even the 2,000-plus automotive suppliers in the UK? Have the UK Government made an estimate of the range of potential financial implications if this offer is accepted by Nissan and all the assembly plants and automotive companies?
On “The Andrew Marr Show”, the Secretary of State said that there were four things in the letter, and those were repeated in the Statement. One was that the Government will provide funding for training. The Statement suggests that this will be around £66 million a year. It would be very useful if the Minister could tell us how much Nissan currently receives from the money that has been apportioned over the past six years and whether there were any indications that more was requested or that more would be supplied.
Secondly, the Government have said that they will bring the supply chain back to the UK . The Society of Motor Manufacturers and Traders estimates that 80% of components in a car can be made in the UK. Currently, the average UK content in British-built cars is 41%. The government commitment is therefore to make up this 39%—effectively doubling it—by a new, energetic campaign. This could be one of the most significant industrial undertakings of current times. However, it concerns me that the Statement indicates that this is no more than is done currently in a programme which has made a very small shift but which is running out of steam and where the year-on-year changes are reducing. I would be grateful if the Minister will provide us with any details on anything that would indicate whether this is a new, sustained effort or more of the same programme that is running out of steam.
Thirdly, the Government have given an undertaking to be at the leading edge of research and development for electric cars. Can the Minister confirm the Government’s full commitment in relation to that? Did it relate to grants, tax incentives, employment assistance or R&D spend? Was anything mentioned? The principal argument seems to be that the merging of the departments was enough. Did that really satisfy the Nissan executive or were more details provided? Were any of the details that were provided, whether by letter or verbally, the basis for any conclusions to be drawn by Nissan?
Fourthly, the Government say they will try to achieve tariff-free trade in the Brexit negotiations. Did the Minister—verbally, in a letter or in any other way, such as through officials or in any other form of communication—explain or give any steer on what would happen if the Government failed to achieve an agreement for tariff-free trade? Were any details provided? It is hard to believe that a company such as Nissan was convinced by good intentions alone or that what the Secretary of State has already said meets the test of “support and assurances” that the Nissan chairman and CEO could report to the Nissan executive. There is nothing wrong, and everything good, with providing reassurances and support, but in current circumstances, the Government need to be more open. Ensuring the UK’s economic well-being after Article 50 is lodged may well be the responsibility of the Government, but it will not be achieved only by the Government. There are many others ready and willing to help.
The Government should publish not just the letter between the Secretary of State and Nissan but also any supporting information and data they collect that are relevant to the development of the assurances and their delivery. Can the Minister undertake to do that? Can the Minister also confirm that the Government are united on their approach to negotiations with Europe? Has the Secretary of State cleared his commitment to tariff-free single market access with the Secretary of State for Exiting the European Union and with the Secretary of State for International Trade?
The chairman and CEO of Nissan was explicit that the commitment to an industrial strategy was an important consideration. Could the Minister provide the details of what was provided, if anything, in addition to the statements that the Government have already made public? Does this mean that the Government are willing to provide such assurances to other parts of the economy? Car manufacturers make a valuable contribution to our economy in terms of jobs, productivity and exports, but so do many other sectors, including strategically important ones such as steel, aerospace and pharmaceuticals. Then of course there is the service sector, which accounts for most of our economy. What are the Government going to do support the rest of our economy through Brexit? Could the Minister outline any elements of the strategic architecture or even some of the measurements which will be used to devise a proper plan rather than a factory-by-factory approach?
The UK is currently a beneficiary of EU R&D funding. Will the Government guarantee to match this funding after Britain leaves the EU—including the funding that UK institutions get to lead and manage programmes across the EU, which act to cover the core costs of important UK research institutions? Will the Minister please confirm the current Government’s thinking on what and how affordable it would be to provide some sort of “support and assurances” to the banking sector if it is unable to secure passporting? The Government continue to block action against steel dumping at the EU level. Will the Secretary of State commit to giving equal treatment to other vital sectors by taking action to support our steel industry? Can the Minister give any idea whether the Government will take a different view after Brexit?
We are where we are, and we have to act to ensure the UK thrives. The Government need to provide more detail, and not less, if we are looking to launch Article 50 in five months. Surely the Minister needs to understand the reasonable expectations of having a better timetable and explanation of the government plan. Being more open about the terms agreed with Nissan would be a useful start.
Lord Foster of Bath
My Lords, I too thank the Minister for repeating the Statement. On these Benches, we are of course pleased that 35,000—some people argue 42,000—direct and indirect jobs have been saved because of the Nissan decision. We too join the tributes that have been made to the workforce and to Nissan for its commitment to the United Kingdom. But we remain unclear about cost, unclear about whether or not the deal extends beyond the Nissan Motor Company, unclear about the implications for sectors other than automotive and, frankly, completely in the dark about where the Government are seeking to take us. Like the noble Lord, Lord Mendelsohn, we wonder whether we have heard all there is to be told about the Nissan deal.
The Business Secretary says his negotiating demeanour—to use his word—will be to try to ensure continued access to the markets in Europe without tariffs and without bureaucratic impediments. What is the fallback position if he fails? WTO rules do not allow compensation to be paid to Nissan for imposed tariffs, so what will happen then? Alternatively, are the Government seeking partial membership—for some sectors and not others—of the single market and customs union? After all, the Prime Minister has said that membership of the customs union is not a binary affair. Does the Minister agree with the Prime Minister? Is she aware that experts simply cannot see a system where there is, for example, free movement for cars but not for bicycles? Does the Prime Minister know something that the rest of us do not?
If the Business Secretary succeeds in a tariff and bureaucracy-free solution for cars, who will then have responsibility for the manufacturing regulations? Will the UK have a say on them? That will be so important, not least for the specialist car sector and for our work, as the Minister said, on electric and driverless cars. What guarantee can the Government give Nissan in the long term if we do not have a voice in any regulatory framework? What of those other sectors, including aerospace, pharmaceuticals, the service sector and many others including the millions of small businesses? The Business Secretary has made clear that the Nissan deal is not a general deal. So is it the case simply that those who shout loudest get the best deal from the Government? If the Government cannot have a sector-specific customs union, will they stay in the customs union entirely? If so, why do we have a Secretary of State for International Trade trotting around the world proposing deals which would of course be illegal?
The Nissan saga shows all too clearly that the Government do not have a clear plan and that their idea of not having a running commentary on Brexit is, frankly, laughable. When Cabinet discussions are leaked, and when some companies and not others are given specific assurances, it causes confusion and rumour that impact on the economy and the confidence of millions of business owners, savers and investors across the country. Does the Minister agree that it would be better if the Government came to Parliament with a clear statement of their intentions for negotiations and then let Parliament have a vote on that negotiating strategy? We would like to hear the answer.
Baroness Neville-Rolfe
My Lords, I start by thanking the noble Lords, Lord Mendelsohn and Lord Foster of Bath, for their support for this important investment by Nissan. We are right to welcome it so widely. It seems to me a very long-term decision—a new plant and a new supply chain—and I congratulate everyone involved. It is in everyone’s interest and shows the strength of our economy. It builds on three decades of success, supported by all parties, in Sunderland and for Nissan.
What is the best way to start on the nature of the assurances? I emphasise that this is not a compensation package. That is important in relation to all the points that have been made. This was about convincing Nissan of the UK’s continuing competitiveness. Governments regularly invest in UK competitiveness by supporting businesses making major investment decisions. This investment has been secured thanks to the highly skilled workforce, the strong partnership between government and industry that we now have, and long-term investment in new technology and innovation. Those same strengths are what matters to the other sectors and other companies that noble Lords have touched on. There is real progress with the announcement that these two important, new, potentially world-leading models will be made in the UK.
I set out in my Statement the importance of electric cars. I do not apologise for the fact that putting the two departments together helps with the electrification of vehicles and encourages those sectors of industry in the UK to tool up to be world-competitive. That is also helped by the departments coming together in BEIS, the curiously pronounced new department.
On Brexit, as the Prime Minister has said, the Government want British companies to have maximum freedom to trade with and operate in the single market and to let European businesses do the same here. People do not emphasise often enough the huge mutuality of interest. That has to be taken into account in the Brexit negotiations that are being developed.
I do not want to stray into a running commentary, which would go beyond my brief, but we have been showing Nissan and others that we are committed to getting the best possible deal from the future relationship that we will be negotiating with the European Union. We wish to ensure and assure the competitiveness of the British economy, which is what they have been so pleased about. We understand the concerns of industry, and it will be a priority of our negotiation to support UK car manufacturers.
We are working across government in a joined-up way, coming to the correct, mature decisions, and we have an ambition to do the very best for our industries. That includes the other industries mentioned. We have been working across the divide as part of the Brexit process. We have 50 streams of work looking at the different sectors, including aerospace, pharma and steel, where there has been some good progress since we last debated it in the Chamber, with the reopening of the plate mills in Scotland and progress in Scunthorpe and, I would say, Port Talbot.
Finally, I should mention the industrial strategy. We are determined to ensure that the UK is a competitive place to manufacture and to have financial services and all the other things that have been mentioned. As we develop the industrial strategy, we want to work with companies such as Nissan across the economy to ensure that we get the very best results for Britain.
I shall close at that point. I have tried to answer the questions. I will need to come back to the noble Lord on the training numbers.