Oral Answers to Questions

Richard Graham Excerpts

Thursday 23rd January 2014 Commons Chamber

[Jenny Willott]

The hon. Lady is right and the Government are also concerned about the level of non-compliance. Since 1 July, HMRC has been prioritising complaints from apprentices about non-payment of the national minimum wage, and we are ensuring that every single case is investigated. We also started an awareness campaign in November that targets schools, colleges, jobcentres and so on, so that those starting apprenticeships are aware of what they are entitled to. From 1 October the skills Minister has been writing to all apprentices starting a Government-funded scheme to ensure that they know what they are entitled to and that businesses know what they must pay, so that we reduce non-compliance.

[Richard Graham (Gloucester) (Con)]

18. What assessment he has made of the potential for reshoring and import substitution in the UK economy.

[The Minister for Universities and Science (Mr David Willetts)]

There is great potential for business reshoring to Britain. We surveyed manufacturing small and medium-sized enterprises and found that 11% have reshored some production to the UK in the past 12 months. The Automotive Council has identified £3 billion of additional sourcing opportunities. Businesses are bringing activities back to Britain as we become a more flexible and competitive economy.

[Richard Graham]

I believe there is more we can do to help reshoring, for example by making cash contributions to regional growth funds, cutting business rates locally for manufacturers bringing back jobs and adding reshoring to the UK Trade & Investment job description. Does the Minister agree that on import substitution there is a real opportunity to encourage supply chains to get local suppliers to compete for business? For example, Gloucestershire-based ADEY Professional Heating Solutions recently gave a £1.5 million contract to Future Advanced Manufacture, business that was previously being done in China.

[Mr Willetts]

My hon. Friend is absolutely right. We are, of course, an open economy and we export and welcome companies from abroad that invest here, but we can do more to support our supply chains so that more prime manufacturers in Britain also purchase from SMEs across the country. Indeed, I remember visiting the company to which he refers. It is an excellent example of what we are talking about.

School Governors and School Improvement

Richard Graham Excerpts

Tuesday 8th October 2013 Westminster Hall

[Neil Carmichael]

I thank the hon. Lady for her helpful intervention. That was one of my points. She is absolutely right, and I thank her for her support.

I want to touch on sub-regional structures, academy chains and other such structures that one might expect to find when schools collaborate. Collaboration certainly does make a difference. I suggest that some formal federal structure might be the answer in many situations. Mutual help, by which I mean learning best practice from others, getting support when there is a problem and being able to reach out for expert help, is really important. I accept the point that has just been made. I would even go further and say that the Government might want to consider making sub-regional structures more formal where that is appropriate. A horizontal or vertical structure, or a combination of both, is a good way of ensuring that the best leadership is available to schools. That applies to rural areas where there is a variety of smaller schools, or to a secondary school with a number of feeder schools.

Another point relates to the question of skills versus stakeholders. The Select Committee talked about that in some detail. It was right to do so, not least because I encouraged it to take on the issue. It has always concerned me that if schools are boxed in with certain stakeholders on their governing bodies, they might not be able to reach out for the appropriate skills. I have never been completely satisfied that all stakeholders are accountable to the body that appointed them or that they represent, so calling them stakeholders is, in some cases, an exaggeration. The Government need to focus on getting the right skills, and all barriers to that should be removed, which means that there should be considerably less focus on stakeholders and more focus on skills. I call on the Government to consider that point.

[Richard Graham (Gloucester) (Con)]

My hon. Friend is making some powerful points. I expected as much, given his strong personal experience of both a further education college and a secondary school in Stroud. On the point he was making, does he agree that governors in constituencies such as Stroud and Gloucester are by definition volunteers and community-minded, and that given the right experience, training and help they can play an invaluable role in the success of a school? What more does he think the Government can do to help on the training side?

[Neil Carmichael]

My hon. Friend, whose constituency neighbours mine, is absolutely right. Of course we need to encourage people to become governors. We do not want to frighten them off, and good training is critical. The Education Committee has made some powerful recommendations on training, which the Government have largely accepted. The National Governors Association has constantly talked about the importance of training. I want also to highlight the work of the all-party group on education governance and leadership, which has produced 20 questions that feature in a number of reports, including those of the Wellcome Trust and our Select Committee. Those 20 questions include a reminder that we should focus on the training of governors. We must ensure that those training packages are up to scratch and relevant to the challenges of governance now, and not to what we think it was. The Government are right to talk about setting up memorandums describing what academies turn into and how governors should respond.

UK Trade & Investment

Richard Graham Excerpts

Thursday 12th September 2013 Westminster Hall

[Richard Graham (Gloucester) (Con)]

I congratulate that towering presence among export-supporting MPs, my hon. Friend the Member for Shrewsbury and Atcham (Daniel Kawczynski), on securing the debate. He is absolutely right to act as a champion for business, both in his constituency and around the country. There are a number of us here who like to be part of the ranks of export salesmen in the country, although sadly there are not so many in the Labour party as in the Conservative party.

[Daniel Kawczynski]

My hon. Friend refers to the lack of interest in this debate from the Labour Benches. I must say that we have double the number of Labour MPs for this debate that we had for my previous debate, because at least there is one.

[Daniel Kawczynski]

Well, there is only one apart from the shadow Minister. Last time, there were zero.

[Richard Graham]

I thank my hon. Friend for his mathematical assessment of the situation. He makes an absolutely valid point—everyone in the House should champion business and exports for UK plc.

At the heart of my hon. Friend’s argument was whether it is effective for UK Trade & Investment to straddle two Departments. That is an interesting conundrum for the Minister—the Under-Secretary of State for Skills—who, of course, straddles two Departments himself, although they are not the same two Departments that UKTI straddles. Personally, I am all in favour of activities that straddle different Departments. Cross-departmental activity is a good thing, because silos do not exist in the real world. The key to it all is having autonomy for UKTI rather than independence, which I think is what my hon. Friend the Member for Wealden (Charles Hendry), who is the Prime Minister’s trade envoy to “the -stans”, was effectively advocating and supporting earlier. However, I will leave the Minister to comment on that.

What my hon. Friend the Member for Shrewsbury and Atcham was really advocating was the crucial importance of small and medium-sized enterprises, and the importance of exports to the future growth of SMEs. He knows as I do—as we all do—how vital that is to the growth of jobs, in Shrewsbury or in my constituency of Gloucester, where we have a long tradition of manufacturing and exporting. However, as I have said before in the main Chamber, in Gloucester we lost 6,000 jobs in business during the 13 years of my two Labour predecessors as Gloucester MP, although we have created 1,600 new jobs in business since 2010.

There is a great deal more to be done, which is precisely where SMEs come in, including the 500 members of the Gloucester branch of the Federation of Small Businesses and the members of many other branches all around the country. So how do we help SMEs to export? That question has been around for a long time. In fact, I wrote a paper on it as British trade commissioner for China, which, alarmingly, was 23 years ago. What has changed since then is the speed of communication and access to information through technology. We also have the new sectors and centres of UK expertise and, above all and most interestingly, the much higher standing of the brand “made in Britain”.

To bring alive that fact most immediately, at breakfast this morning I was with the CEO of the west Kowloon cultural district authority, which covers 40 acres of reclaimed land from Hong Kong’s harbour that will be transmogrified into a fantastic centrepiece for architectural design and creative arts from around the world, under a masterplan made by Foster and Partners. It will feature a huge number of UK stars from different sectors. The CEO of the cultural authority went yesterday to see some of the things achieved by Britain in time for the Olympics. He was staggered by the fact that the BBC sports hub was created in 21 weeks.

It is worth remembering that the west Kowloon cultural district authority has been in place for 16 years and has only just put a spade in the ground. The assumption that many of us had—I spent a large chunk of my life in that part of the world—that everything is done at great speed in Hong Kong and that nothing happens very fast in Britain has been turned around over the last few years by some of the achievements in this country. They help to reinforce the concept of “made in Britain” or “created in Britain” being a powerful brand, and they give our SMEs the chance to export to markets they previously might not have even thought of.

[Jeremy Lefroy]

Does my hon. Friend agree—I lived in Tanzania for 11 years, and I declare an interest as chairman of the all-party group on Tanzania—that one thing that we need to turn around is complacency? In Tanzania, we saw “made in Britain” being a huge advantage as a brand, yet the advertising for some of our products, which in those days included Land Rover, was miserable compared with their competitors, such as Toyota. There have been many improvements since then, but we need to do far more on marketing in target countries.

[Richard Graham]

I agree on the advertising and marketing point, but in the case of Land Rover there have been more significant changes, not least in the speed, efficiency and quality of product that Jaguar Land Rover provides. It is a remarkable success story, as he would agree. I totally accept what he said about its presence in east Africa, which is a happy land in my experience.

To return to my point on the SME debate, in some ways it has not changed since I wrote that paper all those years ago. The debate focuses on what Government should do to best help SMEs export. For example, should they subsidise many trips abroad for SMEs so that they can get to know the countries to which they might export? Do the SMEs have the resources or the sales structure to be able to follow through, or are the trips an interesting but non-productive form of business tourism? Should we help only the larger companies, and through them indirectly boost SME exporters through the supply chains of those large companies?

Should we use Government offices for all export help, or can chambers of commerce be better partners for certain SME goals? In some cases, chambers of commerce can be more selective than Government can. If someone needs a lawyer in Jakarta and rings up the British embassy, the embassy will be obliged to provide a list of every lawyer in town. What that person is really looking for is just one reputable company that can do the business. Government cannot choose a lawyer for someone, but a chamber of commerce might say, “Other companies like yours have effectively used X, Y and Z.” There are situations in which a chamber of commerce can be a more effective partner for SMEs.

What about where the Government should focus? Do we think that the work on strategic goals, such as EU trade agreements made successfully with, for example, Korea will add most value, or do we need an unremitting focus through UKTI on high value added opportunities in selected sectors, such as energy and resources, on which my hon. Friend the Member for Wealden is focusing successfully in the “-stans”? I am focusing more on infrastructure and aerospace in Indonesia. Do we perhaps need something like an army—I apologise to the hon. Member for Islington North (Jeremy Corbyn) for using this metaphor—with a selection of weapons from which we choose the most appropriate for the opportunity and the market?

[Jeremy Corbyn]

The hon. Gentleman should use the word “tools” instead.

[Richard Graham]

The hon. Gentleman is absolutely right: “tools” is a better word. Do we need a selection of tools? We need a flexible approach that can draw on the most appropriate tool in the right marketplace for the right opportunity, with an organisation led, as UKTI now is, by people with direct experience of leading businesses in their own right. I pay tribute to UKTI for recruiting an old friend of mine, Crispin Simon. He is now leading on SMEs and has led at least one FTSE 350 company in the recent past.

I agree with the Minister, Lord Green, that there is much to be said for a greater role for the chambers of commerce. That is happening and is to be welcomed. We must accept that during the process the quality of service will not necessarily always be even across the world. It will vary from country to country and from chamber of commerce to chamber of commerce.

I will make a small handful of points. First, it is important that UKTI’s GREAT campaign is publicised as widely as possibly to all Members of Parliament. It is a major marketing campaign. It is visually attractive, powerful and resonates in different countries. I launched it in Indonesia. I hope that the Minister will confirm that the regional offices of UKTI have invited every MPs to the GREAT launch in their area. I am delighted to help the launch in Gloucestershire next Tuesday. All MPs can and should play a role in encouraging their SMEs to export by joining the GREAT campaign.

Secondly, UKTI is already doing very good work. My hon. Friend the Member for Wealden rightly paid tribute to that work, as did my hon. Friend the Member for Shrewsbury and Atcham, on the back of his powerful paper, which he spent much time and effort producing. I am grateful to him for doing that. They are both right, because some remarkable things are going on.

Returning to the west Kowloon example I gave earlier, it is most recent in my mind from breakfast this morning that two small companies that I had never heard of before—Keepthinking and North, which are both based in Clerkenwell, in the east of this city—have won significant contracts with that project. That is a good example of how companies that may not be known to me or other hon. Members here today are winning contracts abroad with the help of UKTI. That is important, because we already know about certain familiar exports, such as the wings, engines, landing gear and coatings and so on that make up 38% of every Airbus and are made in Britain. It is important to remember that those parts are made in Britain, because the export value is always credited to France, but it is equally important that we understand that unknown companies in new sectors have real opportunities overseas.

There is an opportunity, which I hope the Minister will agree to take up, for UKTI to hold a seminar, possibly in Parliament—we know that it is difficult to move MPs out of our comfort zone, and we are required by the Whips to attend debates and vote and so on—to update MPs on some of the opportunities in new sectors and some of the new companies across the country in sectors such as creative media, medical science, nano-science and education.

I have been promoting two things in Indonesia with a degree of success. I hope that there is more to come. The first is a fantastic computer software tabling programme for universities. There are more than 100 universities in Indonesia. The software was created by a Cambridge-based company, is high-quality and could be exported to other parts of the world. The second is a quality assurance agency, which is highly rated internationally. It is based in my constituency and is doing work in many countries across the world, but it could work in others as well. Let UKTI educate MPs, who then could not possibly complain to the Minister that they did not know what UKTI was doing or what new opportunities there were.

Thirdly, in countries in which we have both a UKTI and a Department for International Development presence, I believe we can do more to act as a united UK plc. The story of the first biodiesel plant in Indonesia, made by the wonderful Gloucestershire-based manufacturer Green Fuels—I am taking the Indonesian ambassador to Green Fuels next week—is a good example of a business contract by a private business that is totally in line with our DFID objectives for Indonesia. The contract should open further opportunities for the UK in a general sense, and I believe there are other such examples elsewhere in the world. A more united, working-together spirit by DFID and UKTI could lead to exciting results.

I finish on a note as positive as those of the Members who spoke earlier. The help given to me, as one of the Prime Minister’s trade envoys, by our embassy in Jakarta, which includes both UKTI and the British Council, has been powerful. We are all working together on strategic and tactical goals that will benefit both Indonesia and the UK, which is important. A win-win solution is much more attractive than simply trying to thrust a product at some hapless overseas country.

Prudential, for example, derives significant earnings from its Indonesian operations, and in return it provides insurance and pension solutions for many millions of Indonesians. Prudential employs no fewer than 190,000 people in that great archipelago. That is what UK companies can achieve for themselves, starting from nothing not very long ago. That is what companies can achieve for UK plc and for their host country, which shows the value of inward investment—exported investment from the UK. Such investment offers great opportunities for British SMEs to service, in this case, Prudential either in the UK or overseas, and from that base to expand and service other financial institutions. British service companies can be very successful.

Debates such as this are a great marketing opportunity for trade envoys, so it is appropriate for me to finish by saying that if Members here today, or those who read the debate later, have specialist companies in their constituencies that believe they have something to offer Indonesia, they are of course absolutely welcome to contact me. I will do my best, with UKTI, to try to help those SMEs export a little bit more.

Manufacturing and SMEs

Richard Graham Excerpts

Wednesday 4th September 2013 Westminster Hall

[Richard Graham (Gloucester) (Con)]

It is a joy to join the debate rightly won by my hon. Friend the Member for Carlisle (John Stevenson). The discussion of manufacturing has gone on for some years and will go on, because it is so important to all of us. It is especially important in constituencies such as mine, Gloucester, where making things has been what the city is all about. We are in fact arguably the bellwether for what happens to British manufacturing, because the narrative, as many hon. Members have noted, is a story of decline and recovery, and now the challenge is how to take it to the next chapter of success. My constituency, as a bellwether, is one to which my hon. Friend the Minister will want to pay attention. We make things, whether for the aerospace sector, the oil and gas sectors, nuclear power, consumption, health, dentistry or container ports; and when we export tea to China and valves to offshore Australian pipelines, the Minister will want to sit up and take notice and, indeed, come to visit the great city of Gloucester as soon as possible to see what can be done in modern manufacturing.

The story of decline we will gloss over, except to note that by 2010 new apprentices were virtually extinct in Gloucester. The specialist Gloucester training group was down to 20 engineering apprentices in one year. Small engineering companies were almost dying on their feet. Science was disappearing from school exams, and 6,000 jobs in business had been lost during the 13 years of the previous Administration.

Today, the story is rather different. We have created 2,000 new jobs in business—not all of them in manufacturing, but many—and last year alone 1,240 new apprentices started in our city. Nationally, of course, manufacturing is now going through its fastest growth, in terms of order books, for more than two decades. The output index is the highest since 1994, and non-EU exports have risen by 10% according to the latest figures. The rebalancing is full steam ahead, but we must not run ahead of ourselves. There is still much more reinvestment to be done to see a sustainable increase in manufacturing. We need confidence to spread more widely across the country and in manufacturing businesses, and of course we need banks to provide support and schools to give more time for manufacturers to tell their story and inspire youngsters.

I believe that the Government have played a useful role. I am thinking of what they have done on corporation tax, on capital allowances, which my hon. Friend the Member for Warwick and Leamington (Chris White) mentioned, on R and D and on apprenticeships, and about the renewed focus on engineering and sciences. All those things, linked to steps taken by my right hon. Friend the Secretary of State for Education on careers advice, have helped. They have been a stimulus to our manufacturers, who now have greater confidence than they used to and can see that this is a Government, finally, who are backing manufacturing and urging them to help with the rebalancing of the economy, which was so badly needed, away from finance, public service and property.

There is still, though, as I mentioned, much more to be done. As individual MPs, we can do our little bit. We can, for example, take on our own apprentice. I am delighted to pay tribute to my apprentice, Laura Pearsall, who has now completed her two-year apprenticeship with me, got her NVQ level 3 in business administration and won a good job in business. Clearly, that is not manufacturing, but manufacturers can also take on apprentices in non-manufacturing subjects, such as business admin. I am delighted that, for example, EDF Energy, whose operational headquarters for its nuclear power stations is in my constituency, now has apprentices working in finance, human resources and a variety of other sectors that are not directly running nuclear power stations.

We can also help by working with the media and our further education colleges. I congratulate Gloucestershire Media and Gloucestershire college, which were the first to launch the 100 apprentices in 100 days challenge, which so many regional newspapers have taken up. They went on to get places for 100 apprentices from companies that had never had them before. They have given huge support to the rebalancing of our economy and supported manufacturers by giving them a platform of encouragement. We can also help to create or support apprenticeship fairs and jobs fairs to highlight the opportunities in manufacturing. I have helped support three apprenticeship fairs and created seven job fairs in the past three years, and there will be much more to do over the next two years.

We can create job sections on our websites, highlighting opportunities for youngsters in manufacturing and other sectors. We can encourage all our employers to take more young people into manufacturing through apprenticeships. We can create export clubs and organise events with UKTI. We can invite Ministers to proselytise and give further encouragement. The Minister’s predecessor did that successfully at Kingsholm, and I invite the current Minister, who is full of enthusiasm, to come and encourage our businesses, many of which are micro-business and manufacturing subcontractors, such as the 500 members of the Gloucester branch of the Federation of Small Businesses. I am delighted to say that its chairman, Mark Owen, is leading from the front by taking on his first apprentice. We can also visit manufacturers ourselves, and help them to expand by assisting with council problems of additional space, parking and other local issues. There is much that we can do.

I finish by congratulating my hon. Friend the Member for Carlisle on securing the debate. I welcome the measures the Government are taking. I salute the success of our manufacturers and urge them to use their capital balances to invest more in new plant and equipment. I urge large manufacturers to look at their supply chains, our schools to engage with manufacturers, and our Ministers to help manufacturers that went abroad to return to Britain with help from the regional growth fund and local councils through waiving business rates for a period, so that we may see the brands “Made in England” and “Made in Gloucester” thrive and expand.

[Dr William McCrea (in the Chair)]

Before I call the next speaker, may I thank all Members for the discipline shown, led by the excellent example of the hon. Member for Gosport (Caroline Dinenage), in allowing everyone who desired to do so to get in to the debate? I now have the pleasure of calling Iain Wright.

Oral Answers to Questions

Richard Graham Excerpts

Thursday 18th July 2013 Commons Chamber

[Richard Graham (Gloucester) (Con)]

6. What progress he has made on a sale of shares in Royal Mail.

[The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)]

On 10 July the Secretary of State laid a report in Parliament and made an oral statement setting out our decision to sell Royal Mail shares through an initial public offering in this financial year. Shares will be available to both institutional and retail investors, and 10% of the shares will be available free of charge to eligible employees so that they have a real stake in the business.

[Richard Graham]

As my right hon. Friend the Minister has already heard this morning—and there are postcard campaigns to confirm it—a large amount of misleading information is being given to my constituents in Gloucester and elsewhere in the country: claims that the Royal Mail and the Post Office are the same entity, and that the Queen’s head will go, the universal service disappear and prices rise. Does my right hon. Friend agree that those of us who want to see Royal Mail succeed deplore this campaign of misleading information and want the innovation from new capital investing in new equipment, such as to track parcels that will enable Royal Mail to succeed in the way all of us in this House want?

[Michael Fallon]

Given that Parliament has already decided that this is the right future for Royal Mail, I hope the Opposition will now join in dismissing some of the unnecessary scaremongering, and make clear what would happen if there was ever the horror of a future Labour Government: do they intend to renationalise the Royal Mail?

Education Act 1996 (Travelling Families)

Richard Graham Excerpts

Tuesday 18th June 2013 Commons Chamber

[Richard Graham (Gloucester) (Con)]

The subject of this debate may be obscure, but what is at stake is at the heart of this Government’s mission to build community cohesion, to inspire educational achievement and to encourage strong families. My goal this evening is for the Under-Secretary of State for Education, my hon. Friend the Member for South West Norfolk (Elizabeth Truss), who has been generous with her time in her Department and today in this Chamber, to ensure that the consequences of any proposed changes to legislation do not unintentionally damage the fabric of life of some 24,000 people; and that the Government’s drive to improve exam results is not at the cost of close-knit, resilient and independent families in communities where divorce and antisocial behaviour are conspicuously rare.

Let me explain my case in more detail. The origins of section 444(6) of the Education Act 1996 can be traced to section 39(3) of the Education Act 1944—the Butler Act—that remarkable creation of the second world war. Any proposed change to that section would therefore be a change to the Butler Act provision which has endured for 79 years. The reason for such a change may come from the consultation that the Government launched last November—“Improving educational outcomes for children of travelling families”—on whether to repeal the current legislation that protects travelling parents from being found guilty of school attendance offences in certain circumstances.

Those circumstances are where parents are

“engaged in a trade or business of such a nature as to require”—

them—

“to travel from place to place”

and where

“the child has attended…as a registered pupil as regularly as the nature of that trade or business permits”.

[Mr Marcus Jones (Nuneaton) (Con)]

On this review, does my hon. Friend agree that one of the fundamental issues is that the report produced by the Government does not make a proper distinction between Gypsies, other Travellers and showpeople? The issues that showpeople have, which I am sure he is coming on to deal with, are fundamentally different on this matter.

[Richard Graham]

My hon. Friend is absolutely right. He has highlighted precisely the point I was coming on to, which is that the consultation document makes specific reference only to Gypsy, Roma and Traveller children—indeed, they are defined more precisely as children of Irish Traveller heritage, and the acronym is GRT. The consultation noted that they were among the lowest achieving groups at every key stage of education.

My hon. Friend makes absolutely the right point by noticing that the showpeople—the travelling showmen—are a specific group that would be inadvertently affected by the repeal of the legislation, which, we believe, does not apply to them.

[Michael Ellis (Northampton North) (Con)]

Does my hon. Friend agree that this is a classic case of there being an exception to every rule? Is his argument that such an exception should apply in the instant case?

[Richard Graham]

My hon. Friend is absolutely right. One size does not always fit all, as he and I know from the different size of suits that we are wearing. Exactly the same is true for the showman community in the case of this section of the Education Act.

The specifics of the showmen are worth noting. They are not an ethnic group as the Romany Gypsies or, arguably, the Irish Travellers are, but a cultural one, united by the fairground industry. They are a community that put on in excess of 200 fairs weekly, many held in winter, too, both here and abroad. They can trace their ancestry back to charters and privileges granted as early as a fair held near the constituency of my hon. Friend the Minister in King’s Lynn in 1204. Adjacent to her constituency, the Norfolk fair, held every February since Tudor times, marks the opening of the travelling season. The community will mostly spend the next eight months on the road.

The showmen have one winter base and the whole family is typically on the road for the rest of the year. It is a travelling, traditional family business where the role of women is just as important as that of men. David Wallis, the president of the Showmen’s Guild of Great Britain, said earlier this year:

“Women…are the backbone of the industry, working in every area from accounting to driving, as well as fulfilling traditional roles as housekeepers and mothers.”

His point was that splitting the family unit up would be unthinkable. Educating the children on the road means that studies can be fitted around the demands of the businesses and wives can continue to work alongside their husbands.

The showmen are largely represented by the Showmen’s Guild of Great Britain, a trade body that has been in existence since 1889 and that is responsible for some 98% of the travelling showmen of Great Britain, representing about 22,000 individuals. There are also three other trade associations, the Amusement Catering Equipment Society, which represents 120 families, the Association of Independent Showmen, which represents 500 families, and the Society of Independent Roundabout Proprietors, which represents 140 families. They would all be equally affected by any change to section 444(6).

The Minister and you, Madam Deputy Speaker, would be disappointed if I failed to mention the Gloucester connection to the case I am making this evening. Showmen have been based on and around Alney island by the ancient Westgate crossing of the River Severn, an entrance to our city, for more than 100 years. For example, they participated in a great fair held for Edward VII on Alney island in conditions of a downpour almost as heavy as the one that heralded the great flood of 2007. They contribute to the diversity and unique heritage of a great British city and a constituency that has been represented in this House for more than 700 years. They contribute greatly to their nearest school, Kingsholm primary school, whose deputy head has written to me as follows:

“Over the years we have schooled many of the children from”

Alney island

“and other sites that house different traveller groups in the Gloucester area…we ask…that our families communicate with us about their travel plans so that we can prepare work packs for the children to take with them. We also ask that our families keep in touch during their travels…so we can facilitate a smooth integration back into school…Kingsholm C of E Primary School is enriched by the varied ethnicity and cultures of our families. Each and everyone is valued and celebrated…A significant majority of our”

showmen

“families hold their children’s education in high regard; both their academic and cultural education. In the main the children’s attendance when they are in Gloucester is exemplary and therefore we can maximise the impact of interventions in order to address any gaps the children may have due to their travelling.”

The Minister will be particularly interested to hear that last week, for the first time in its history, Kingsholm primary school was awarded “outstanding” status by Ofsted. This is significant because it is compelling evidence that the travelling showpeople are no hindrance to—indeed, contribute to—outstanding educational achievement.

[Mr Marcus Jones]

In addition to the excellent work that schools do with children of showground people, does my hon. Friend agree that with modern technology and the will of the showground people to get their children to learn and to achieve, there is a way in which, when they are away from their base school, showground people can make sure that their children are well educated?

[Richard Graham]

My hon. Friend is right. He understands his own showmen community in Nuneaton so well. What has changed is the way in which remote education can take place successfully. Currently, children with travelling parents are registered with one school in the UK and they keep their place when on the move. The school sets work, which is completed on the road and sent back via a laptop with a mobile internet connection, and the children rejoin the school on their return. This is considered effective and efficient by both the parents and the schools involved. Over recent years there has been a consistent rise in the number of pupils taking GCSEs within the showmen community. These are the children who have benefited most from vast improvements made to distance learning with the help of technology, as my hon. Friend pointed out.

[Jim Shannon (Strangford) (DUP)]

Is the hon. Gentleman saying that those children are meeting the high educational standards that children in Gloucester are meeting? Is that what he is trying to achieve for all the families involved?

[Richard Graham]

It is fair to say that the educational achievements of all communities vary from place to place. Showmen are a community spread across the whole of the United Kingdom in 10 different regions. I do not have precise statistics for their educational achievements. It is one of the issues that I will mention before finishing my speech, if the hon. Gentleman will allow me to, but he is right to raise the question.

Over the past few months I have created an online petition which has attracted almost 4,000 signatures, all opposing a repeal of section 444(6), and innumerable, often moving e-mails from around the country. I hope the Minister will not mind if I quote briefly from a handful of them. This is from James Breeze:

“Being a showman was a massive complement to my formal education. Can you think of a more stimulating environment for a child to live in? How things work? The value of service? The value of money? Social interactions? The list is endless.”

He goes on to talk about his nine GCSEs at A to C level, four A-levels, a 2:1 degree from Durham university and postgraduate diploma from Leeds Metropolitan university. He is now working in a significant role in a multinational company, managing a large team. He comments:

“This reinforces my view that a showman’s life combined with education as it is now gives the best life skills.”

In similar vein, Morgan Robinson comments in an e-mail:

“I come from a travelling showman background and as such have had to spend many weeks away from school in the summer months…I never fell behind, and in some circumstances, I was actually ahead by the time I got back to school!”

He lists his A-levels and GCSEs, and his chemistry degree course at the university of Warwick. He says:

“My hopes for after my degree is to get a job as an intellectual property lawyer”.

There are several such e-mails. I shall finish them with e-mails from two sisters based in Gloucester, Zoe and Olivia Sheldon. Zoe wrote:

“As a young showperson I have relied on this Act”—

section 444(6)—

“all of my school life. From the age of 4 my parents removed me from my base school…to travel with the fair for 6 months of the year.”

She continues:

“I was successful in gaining a place at Ribston Hall Grammar School for girls at the age of 11 and went on to achieve 11 GCSEs A* to C grades. My sister Olivia, also a student at Ribston, is now studying with the open university to achieve an English degree.”

Zoe finishes:

“The education of young showpeople is reliant on this Act and its abolition would result in the needless break-up of showmen families and cause a loss in the traditional showmen culture as it would force showmen children to be brought up outside of the showman way of life.”

Zoe’s older sister Olivia wrote:

“my sister and I are not isolated cases. I have several cousins and friends who completed/are undertaking University Degrees after having a similar educational background to mine. Among the Showman Community we are hearing more and more news of great educational achievements…Travelling Funfares can move vast distances to get to their next event and are sometimes only in a town for a couple of days, making the suggestion of registering at a different school at each location inconceivable and even detrimental to the education of Showpeople…such an education was imposed on some elder relatives of mine who found it ‘confusing’ as different schools were doing different subjects at different times. The end result was a poor education.”

She goes on to comment about the importance of forming long-term friendships at one school—people who know showpeople’s children when they come back from their travelling.

I met one or two of their older relations on Alney island, who described to me what it was like moving from school to school, in one case being forced to sit in the corner with a book while everyone else was learning. I cannot believe that that is what the Minister would wish to see among our children today.

I am conscious that time is moving on and we all wish to hear from the Minister. I also had a moving letter from Charlotte Barltrop, who worked in a circus for 10 years before getting a degree in theatre and professional practice at the university of Coventry. She now runs her own business teaching circus skills. She wrote:

“All my achievements wouldn’t have been possible if…I was not educated as a child and…was not able to travel whilst gaining this early education. The skills I learned as a child, both in and out of the classroom, are what has enabled me to have such an amazing career”.

I believe that the Minister’s response to the consultation will be published before long, but not, I hope, before she and the Minister for Schools, who shares responsibility for the response, consider carefully the case for the following constructive suggestions. First, we should make arrangements to measure the education results of different showmen groups as a separate entity from the GRT community on which the consultation has been based. Secondly, I encourage the Minister for Schools to meet me and others, such as my hon. Friend the Member for Nuneaton (Mr Jones), interested in the case of the showmen, and to visit Kingsholm primary school in Gloucester to see how achievement and remote learning can be combined. Thirdly, and above all, we should exempt the travelling showmen and circus communities from any repeal of section 444(6). That would be a pragmatic, practical and appropriate way to ensure that the lives of some 24,000 travelling showpeople are not unintentionally and dramatically damaged by the Minister’s admirable focus on driving up educational results.

I am grateful to the guild, its representatives, the other associations, my own constituents, and many around the country who have committed their time to sending e-mails and messages of support and information.

[Mr David Ward (Bradford East) (LD)]

Will my hon. Friend give way?

[Richard Graham]

I am sorry, but I have very little time left.

Not least, I am grateful to Lisa Deakin Stevens, the family of Matthew Stevens and many others, supported by the Westgate councillors. They have all contributed to my speech this evening, and I look forward to a sympathetic response from my hon. Friend the Minister, in the knowledge that she cannot pre-empt her response to the consultation, but in the belief that this debate may influence her response, and that she will see that what I have raised is a good cause for a valued community.

Engineering Careers

Richard Graham Excerpts

Wednesday 13th February 2013 Westminster Hall

[Nadine Dorries]

I agree with the hon. Lady that design and technology is an important core subject in the overall context of engineering. As I have said, however, one problem is that, on leaving school, pupils lack the basic skills of numeracy and English that would enable them to achieve in design and technology and other subjects or give them the confidence they require to go into an engineering apprenticeship. They lack the basic core skills that would give them the confidence they need to move into that field. Although I recognise that design and technology is an important subject—one of my daughters did it—others take greater precedence because they are absolutely essential, core key subjects that every student needs to move on to whatever they want to do in life.

[Richard Graham (Gloucester) (Con)]

I thank my hon. Friend for securing this debate and for being so generous in taking interventions. She is absolutely right to highlight the importance of engineering, the shortage of female engineers and the essence of good qualifications early on. Does she agree that getting good sciences and maths is absolutely key? Does she recognise the good work being done by EDF Energy and Horizon in raising awareness of those needs, especially for the nuclear power engineering opportunities of the future with some 20,000 jobs at the three new nuclear power stations? Does she also agree that there are some great female role models? For example, the engineer behind the design of the world’s fastest vehicle, with which Squadron Leader Green broke the world record, was a woman. If we got women role models to go round schools, we would have more female engineers among the new ones coming forward.

[Nadine Dorries]

My hon. Friend makes his points very eloquently, as usual. I fully endorse the point that it would be fantastic if female role models went round schools to promote engineering as a career path for young women. He mentioned bigger companies such as EDF. One problem for Autotech in my constituency is that it does not have the budgets or the reach of so big an organisation as EDF. People in my constituency do not even know that Autotech is there; neither did I until recently. It does not have the advertising and marketing budget to reach out and sell itself to young people, whereas EDF is fortunate enough to be able to do the milk round and offer a global package. I want to focus on the problems faced by small companies that need to grow and are growing, and that are receiving orders that they cannot fulfil because they have not yet reached the dizzy heights of organisations such as EDF, with all the accompanying infrastructure and finance. Autotech is not quite there yet, although it has grown from 200 to 350 employees in a short space of time.

On top of the problems in education, students simply do not see engineering as attractive. They see media studies and many other courses as attractive. In preparation for the debate, I looked at the university courses for which the most people apply through UCAS, and engineering is way down the list.

Industrial Policy and Manufacturing

Richard Graham Excerpts

Thursday 22nd November 2012 Commons Chamber

[Richard Graham (Gloucester) (Con)]

It is a great privilege to contribute to the debate. I thank the three Members who secured it for bringing the matter to the House’s attention and congratulate them on doing so. I have time to touch on only a few details of this important and broad subject. I wish to start by highlighting the fact that, although manufacturing in this country halved over the 13 years of the previous Government, in my county of Gloucestershire we operate at almost double the country’s current economic output for manufacturing, at 20%, which is close to that of Germany. The important ingredient in that success is that we grow things in the part of the county that is rural, which is most of it, and make things in the part that is urban, which is predominantly the city of Gloucester and other leading towns, including Stroud—I know that my hon. Friend the Member for Stroud (Neil Carmichael) will follow me shortly.

The key to growing and making things is a belief that they are important productive activities that will generate jobs for our communities and wealth for the nation. Members are right that this debate should not be partisan, but it is unfortunately true to say that almost 6,000 jobs in the business sectors were lost in my constituency over the period of the previous Government, which is tragic. Many were lost in engineering, a sector in which Gloucester has for years led the country, most spectacularly, of course, with the introduction of the world’s first jet engine.

During that period, apprenticeships all but disappeared. There were champions on the other side of the House—the hon. Member for Hartlepool (Mr Wright) believed in apprenticeships, as he still does—but the fact of the matter is that the number of apprenticeships has increased significantly over the past two and a half years. That is typified in my constituency by Gloucestershire Engineering Training, a company that has quadrupled in size through the number of apprentices it trains in its new premises, which were opened earlier this year.

The first words I spoke in this House, before making my maiden speech, were about apprenticeships, and that was because they are absolutely critical to manufacturing industries. I am talking about manufacturing industries beyond purely engineering; this spreads across a wide variety of sectors. I made my maiden speech wearing a shirt that was made on the Cross in the centre of Gloucester, and every Wall’s ice cream Members eat was made in my constituency. Manufacturing is a broad activity. The fact that we have seen some 3,000 new apprentices start in Gloucester and more than 10,000 start in the county since May 2010 is a huge credit to the coalition Government, to my hon. Friend the Minister, who has responsibility for skills, and especially to his predecessor, my hon. Friend the Member for South Holland and The Deepings (Mr Hayes), who famously championed apprenticeships during his time in that role.

The question today is this: what is the role of Government? We have heard about the many ways the Government can contribute positively, perhaps above all in the commitment to rebalancing the economy away from finance, property and the public sector and towards making and growing things. The export drive that the Prime Minister has led has been rightly congratulated by a number of Members. I am pleased to play a small role as the Prime Minister’s trade envoy to Indonesia, a market of some 250 million people, and one where our trade figures can surely increase rapidly over the next couple of years, in line with targets agreed between the Prime Minister and the President of Indonesia, who was here only two weeks ago.

There are also important tax policies, of course, and I pay tribute to the Government for reducing corporation tax. Research and development credits are extremely important to manufacturers, too. The visible encouragement given by Government is important psychologically as well, and I pay tribute to the Prime Minister for visiting the country’s largest independent spectacles manufacturer, Norville, whose product I am wearing on my nose today. Other initiatives should also be mentioned, including the advanced manufacturing supply chain. The Queen Elizabeth engineering prize is an interesting example of how we can help champion innovation.

The Government have a significant opportunity to rebalance the economy by bringing UK manufacturing back home. Companies that went overseas for cheap labour or relaxed environmental laws have often found that their new location is not as cheap as they had imagined. I strongly echo the statement of the chairman of John Lewis, who said he saw an opportunity for a resurgence of products that are made in Britain. We want to see more of those products.

Oral Answers to Questions

Richard Graham Excerpts

Thursday 6th September 2012 Commons Chamber

The Secretary of State was asked—

[Richard Graham (Gloucester) (Con)]

1. What assessment he has made of the level of satisfaction of participants and businesses with the apprenticeship system.

[Damian Hinds (East Hampshire) (Con)]

6. What assessment he has made of the level of satisfaction of participants and businesses with the apprenticeship system.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

The Department recently completed the biggest ever survey of apprentices and their employers, which revealed the best ever satisfaction rates. Overall, almost 90% of apprentices were satisfied with their training. Employer satisfaction is also high: 88% are satisfied with the relevance of their training, and 80% remain committed to offering places.

[Richard Graham]

I welcome the evidence from the Holt review that we need to do more to make apprenticeships accessible to small and medium-sized enterprises. I know from my own apprentices’ business and administration non-vocational qualifications that they are not all user-friendly to the smallest businesses, which are the driver of future jobs. Does the Secretary of State agree that employers in, for example, the Federation of Small Businesses should have more say in the content of courses and in the setting of a reassuring series of national standards?

[Vince Cable]

I do agree, but let me preface my remarks by saying what a success story the apprenticeship programme is. Not only has there been a big increase in scale—more than 60% over the last two years—but there is a very high satisfaction rate. Let me also take this opportunity to pay tribute to the work of the former Minister for Further Education, Skills and Lifelong Learning, the hon. Member for South Holland and The Deepings (Mr Hayes)—who has now moved on to higher things—and to welcome his excellent replacement, who is, indeed, part of an excellent BIS team.

The Holt study, which the hon. Member for Gloucester (Richard Graham) mentioned, does acknowledge that there are barriers to SMEs’ access to the apprenticeship programme. We are trying to address them, most notably by channelling resources through employers rather than trainers: that will increasingly be the emphasis of the programme.

--- Later in debate ---

[Vince Cable]

The hon. Gentleman is being a little churlish in not even acknowledging that on Sunday, the Chancellor made it clear that we wished to proceed with a business bank. We are discussing the range of its activities and the resources that will be available. The hon. Gentleman knows well that growth prospects in all European countries are extremely depressed at the moment, not only in the UK.

[Richard Graham (Gloucester) (Con)]

T4. As secretary of the all-party group for post offices, I strongly support the Government’s commitment to ensuring that there are no further post office closures, as well as the ambition to develop post offices to carry out more front-office Government services. I am, however, slightly concerned about the pace of progress in making new services available through post offices, and sub-postmasters in Gloucester are concerned about the possibility of losing the DVLA contract. I appreciate that the Minister has only just arrived in her post, but will she give that issue priority in the future?

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson)]

I thank my hon. Friend for his comments; he is a strong campaigner for post offices which we all recognise lie at the heart of many of our communities. He asked me to comment on a live procurement contract, which I hope he will understand I cannot do. There are, however, some reasons to be cheerful. Over the past year, the Government’s services revenue for Post Office Ltd increased for the first time in 10 years, reversing the trend of decline that we saw under the previous Government.

School Funding

Richard Graham Excerpts

Tuesday 24th April 2012 Westminster Hall

[Richard Graham (Gloucester) (Con)]

It is a pleasure to serve under your chairmanship, Mr Gray. There is a very strong representation from the south-west here today, including the Chair, and we welcome that.

School funding is an issue that has bedevilled the country, particularly for those of us who represent underfunded areas. In many ways, the problem of school funding reminds me irresistibly of the late 19th-century question of Schleswig-Holstein, about which Lord Palmerston says:

“Only three people…have ever really understood the Schleswig-Holstein business—the Prince Consort, who is dead—a German professor, who has gone mad—and I, who have forgotten all about it.”

Although I would not suggest for a moment that the Minister responsible for schools and the Secretary of State for Education are the only two people who really know about school funding, it is fair to say that I certainly got lost early on in the quagmire of the local authority central spend equivalent grant—or LACSEG, which sounds very similar to some medicine that I once took for Barrett’s oesophagus.

None the less, the issue is clear to us all. There are many schools across the country, including all those in my constituency, whose pupils effectively lose out significantly in terms of the amount of money spent on them per year relative to pupils in the large metropolitan areas. In fact, there are some 2.5 million pupils in the F40 areas, which are the poorest-funded local authorities in England. Therefore, on average, £5,000 less per child is spent on children’s education in my county of Gloucestershire and other counties represented here today.

[Anne Marie Morris (Newton Abbot) (Con)]

Does my hon. Friend agree that the problem is exacerbated by the rural nature of constituencies in the south-west? Certainly, in Devon, that makes the problem of underfunding even more acute.

[Richard Graham]

My hon. Friend makes a very good point and speaks powerfully for children in rural areas. Of course, there can also be a problem for those in urban areas within a rural county. In my case, one of the reasons why some of us in Gloucester feel so passionately about the issue is that we are a relatively poor city and a relatively rich county. I am sure that other hon. Members have similar situations, and I am happy to take interventions from them on that point.

[Mr Robert Buckland (South Swindon) (Con)]

Will my hon. Friend give way?

--- Later in debate ---

[Richard Graham]

With great pleasure. I see a spokesman for Swindon emerging.

[Mr Buckland]

I cannot resist an invitation like that. Swindon has a similar demographic to that of Gloucester. We are in a relatively rich part of the world and have historically been underfunded. We are doing our best with the resources that we are given, but the option set out by the F40 campaign—an extra £99 million—would be a good interim way to deal with an historic problem that Governments of all parties have wrestled.

[Richard Graham]

My hon. Friend makes a powerful point that relates perhaps to a later stage of the argument that I will develop. I agree with him absolutely that although, as the saying goes, size—or, in this case, money—is not everything, it does go a long way towards improving the opportunities for children in our constituencies. As we all know, above all else, the Government are concerned with aspiration and providing equal opportunities for children across the country.

[David Simpson (Upper Bann) (DUP)]

Would it not be a travesty if areas of social deprivation lose out on the school funding formula when the Government’s ethos is to encourage young people into education and perhaps to go on from that to vocational studies?

[Richard Graham]

The hon. Gentleman is implying that my argument is to beggar my neighbour, to give pupils in Gloucester a better chance. He is right in saying that a charge to the lowest common denominator to achieve equality is not necessarily what we are looking for, and that is not what I intend to propose. However, perhaps we will come on to the specifics of that in a moment.

Broadly, we have already established a degree of consensus in the debate—and I suspect across the House—that the principle of equal funding for every child in the country is one that we would all happily sign up to. The Secretary of State for Education has made it clear that that is his principle as well. Of course, the Government have, in a sense, made deprivation much easier to deal with by introducing the pupil premium, which hugely helps those children who come from very deprived backgrounds and who therefore deserve additional money being spent on them to give them the same opportunities as those children from more stable family backgrounds. We all agree on the principle, but what can be done about it? Given the length of time that the issue has been with us—some 20 years or more—and, I regret to say, the previous Government’s complete failure to tackle the problem, it falls upon the coalition Government to deal with it.

During the various debates that have already taken place in the House since the Government came to power, my right hon. Friend the Secretary of State for Education has perfectly summarised the issue. He has said:

“The current system is not only ludicrously bureaucratic, it is also unfair as schools in different parts of the country are not funded on a rational basis. Moreover, the sheer complexity of the system gives schools less incentive to respond to the needs of local parents by expanding or establishing new provision.”

With the exception of not alluding to the Schleswig-Holstein issue, he could not have put it better, and I do not suppose that any hon. Member here today would disagree with him. How do the Government therefore propose to create a fairer system that will enable those authorities in which our constituencies lie to be reassured that the Government can right the wrong that has been with us for more than 20 years?

Of course, I should say that the Government first launched a consultation. At the announcement of the consultation, Lord Hill determined that it would address the disparities and inequalities within our school system. The consultation was the first step towards ensuring fair funding. None the less, the Department for Education has been unable to find the additional money that would have provided the top-up to all those areas in the F40 group. That would have provided us with the simple one-stop solution of equal funding for all pupils across the land. In times of extremely constrained finance, it is not surprising—no one in our constituencies could conceivably blame the Government for this—that the additional significant amount of money needed to solve the problem in one go has not been found.

However, there has been good news in terms of a significant reduction in the factors that local authorities can consider when constructing school formula. The number of factors that need to be considered have dropped from 37 to 10, which will slightly reduce the complexity of the education funding formula, to which I alluded earlier, and make it easier for schools to understand the rationale behind their budgets. The consultation also arrived at a much greater delegation of funding to schools and will ensure that local authorities can no longer top-slice school budgets. Above all, given that 75% of the secondary schools in Gloucestershire are now academies, the consultation provided for academies to be funded using exactly the same formula as maintained schools, because there had been a year’s lag under the system inherited from the previous Government. That single change will make a significant difference to the academies in my constituency of Gloucester and elsewhere.

[Guy Opperman (Hexham) (Con)]

It is a bit like watching Martin Luther King in his prime. Is it not right that my hon. Friend has a dream, not only for all schools to be equal, but for the Schools Minister to give us the first step, the first indication and the first rung on the ladder to an equal and fair funding for all the schools we represent?

[Richard Graham]

Yes, apart from an alarming analogy with Martin Luther. [Hon. Members: “King.”] Martin Luther King—even more puzzling. Martin Luther was of course responsible for the great saying, “Who loves not wine, women and song remains a fool his whole life long,” but I do not think that that was the object of my hon. Friend’s attempt to introduce him into the debate. However, my hon. Friend’s fundamental point—that we are looking for an early gesture from the Government to reassure our constituents that they do not just have warm sounds, but an initial step towards resolving the funding problem—is absolutely right, and one that I think all hon. Members endorse.

There are budgetary challenges to finding a solution, but the F40 group has submitted various suggestions for interim funding proposals that would improve the situation considerably. It has put forward four options to make steps towards equality, not all of which are hugely expensive. It is not for me to ask for a specific amount of money or a specific formula for the Government to start the ball rolling, but I urge the Government to look closely at the F40 group’s proposals in the hope that one of them is attractive and affordable, and, above all, can be introduced for the academic year 2014-15—before the funding settlement of the next Government.

My main wish is for the Minister to take from the debate the thought that not only are the Government able to agree with the principle and the direction of travel, but they can make the first steps to implement financial change to show that this long, 20-year inequality will finally be tackled.

[Mark Garnier (Wyre Forest) (Con)]

My hon. Friend has mentioned timing on three occasions. Is that not one of the crucial points? Given that we have had that inequality for 20 years and that we have a very strained economic environment, it is vital that we resolve this problem as soon as possible and in the best way possible.

[Richard Graham]

My hon. Friend is absolutely right. Of course, the difficulty is in the words, “as soon as possible” and “the best way possible”. Neither he nor I have control of the finances, but I think we both agree strongly that this is our opportunity to lobby the Minister and for him to reflect the strength of our conviction to the Treasury in the hope that additional moneys can be found as soon as possible.

[Pauline Latham (Mid Derbyshire) (Con)]

This is happening because for more than 20 years civil servants have recognised that there will be winners and losers. As a group, we, and my hon. Friend in particular, must impress on the Minister that the most important thing is to get on with it now and have no further delay. There have always been winners and losers, and the F40 group are the losers every single time. We need to ensure that we level things out very quickly, because it has been 20-odd years.

[Richard Graham]

My hon. Friend makes a good point about winners and losers. Personally, I am not trying to advocate taking money away from deprived areas in large metropolitan cities. They have benefited from generous settlements in the past 20 years, which is absolutely right, but this is not necessarily the moment to rob Paul to pay Peter. I am looking for additional funding from the Treasury to the Department for Education in a formula that allows gradual progress over a period to resolve this inequality of funding.

The Secretary of State sent a letter to a number of us, in which he commented on the consultation:

“Support for reform was widespread but responses also suggested this model would need careful planning. Getting the components and implementation of a fair national funding formula right is critical and we need to manage transition carefully”.

I think that we all agree with him. We would like him to move on as quickly as possible, rather than delaying until the next Parliament—the issue on which I will close my speech. This situation is not of the Secretary of State’s making. This is a 20-year legacy problem that could and should have been tackled by the previous Government. God knows, they had long enough to consider it carefully. None the less, the issue of fairness echoes powerfully for all of those involved in education in our constituencies, which is why so many of us are here today to engage with the Minister, who has once again kindly picked up the cudgel. I am sure he will respond with his usual positive and encouraging noises, but we are looking for more than just noises. We encourage him to take the message back to the Treasury that the strength of feeling is strong.

[Mr James Gray (in the Chair)]

Before I call the next speaker, perhaps those who intend to speak will remain standing for a moment. There are six hon. Members, so there is no necessity to impose a formal time limit. Perhaps those who intend to speak can be aware that we have approximately an hour before the Front Benchers reply to the debate. I was going to the hon. Member for Congleton (Fiona Bruce).

--- Later in debate ---

[Guy Opperman (Hexham) (Con)]

It is a great pleasure and privilege to speak in this debate that was so ably secured by my hon. Friend the Member for Gloucester (Richard Graham). We know that this is a debate about schools because everybody has started quoting famous names. By my account, we have had Shakespeare, Mark Twain, Martin Luther, Martin Luther King, and Reagan snuck in at the end. I prefer to take the Minister back to the ancient Chinese proverb of Lao Tzu who—as our eminent Education Minister will know—was the founder of Taoism and said that the longest journey begins with a single step. Is not the essence of this debate that we are all seeking that first step? It is not a large step; it could be a short step.

[Richard Graham]

Since my hon. Friend introduced Lao Tzu, he will no doubt also be aware of the more recent Chinese philosopher and statesman Deng Xiaoping’s great remark, “Yi bu yi bu”—one step at a time. Does my hon. Friend think that that is appropriate for the way in which we might resolve the issue of fair funding for schools?

[Guy Opperman]

I do, and I will reply with words from Sun Tzu who, when he talked about the art of war, said, “Know your enemy.” That is interesting given that there is no enemy present today, but does not the absence of Opposition Members—save for the shadow Minister, the hon. Member for Westminster North (Ms Buck), who will no doubt act robustly in defending the 13 years during which we all endured a funding gap—speak volumes?

I will move on from the happy badinage in which I and my hon. Friend have been engaged to say that like other hon. Members, I represent schools in Northumberland that look enviously at counties and cities that have a greater degree of funding. To put it simply, no change is not an option. As has happened to my hon. Friend the Member for Warrington South (David Mowat), school governors and head teachers have drawn me to one side and whispered surreptitiously in my ear, “Do you really understand how badly off we are compared with X, Y or Z?” To be frank, they are correct in that analysis of the deficiencies in the present funding system, and significant issues need to be addressed.

We all accept the fair point raised earlier about the fact that there is a financial deficit and restrictions apply, meaning that progress is slow. However, when I go to areas of social deprivation in my constituency—of which there are a significant number—I see schools that survive only because of head teachers and governors who go so far beyond the extra mile that I shake my head in wonder.

I remember going to Prudhoe Castle first school where the head explained how she bought things out of her own pocket because the budget would not cover many of the basics, including essentials such as pencils. I was taken round that school by the head girl who said, “We really would like the lighting to be improved, because at times we cannot see the blackboard.” On a day when I welcome St Joseph’s school to the House of Commons, it is significant that everybody—quite rightly—has made the strong and eloquent point that we are gravely indebted, particularly in schools where there is less funding, to the unbelievable work and unstinting commitment of our head teachers, governors, teachers and staff who work in those schools. I pay tribute to the many members of staff whom I have had the opportunity to meet, but with more than 40 schools in my constituency I have not been able to meet every one of them thus far.

I will conclude my remarks because it is important that we hear from the shadow Minister and the Minister. However, I echo everything that has been said and believe that we should be spending the money more equally. I endorse the great support for the pupil premium, and eagerly await the Minister indicating how far the first step will be.

--- Later in debate ---

[Ms Buck]

There are several answers to that. As a Member of Parliament for Westminster, I was anxious that we should not be drawn too far into our own local experiences. I just point out that the last time I looked, which was a year ago, my local authority had the ninth-highest entitlement to free school dinners—the imperfect but accepted measure of deprivation for funding purposes—in the entire country. The school deprivation is significantly greater than the deprivation of the local authority area as a whole. One of the other difficulties that we must face is that school populations are not necessarily the same as resident populations. That is another area of tension that must be dealt with. I am completely at one with those who say that not all the discrepancies can be explained, but some are more easily explicable than others.

[Richard Graham]

rose—

[Sheryll Murray]

rose—

[Ms Buck]

I will give way first to the introducer of the debate.

[Richard Graham]

Can the shadow Minister confirm that she, like every other hon. Member who has spoken in the debate, supports the principle that every pupil in the country should receive the same basic funding?

[Ms Buck]

The issue is more difficult than that. The core of the debate, which I want to come on to, is this. There need to be—the dedicated schools grant was taking us in this direction—some basic building blocks of education funding. The issue then is that although we do not have unlimited money—we did not have unlimited money even in the more generously funded years—we must also recognise that we need to address not just the deprivation element, but things such as special educational needs funding, which is a very difficult issue as well. It is very difficult to achieve what the hon. Gentleman wants to achieve without significant additional funding and without some of the consequences that none of the hon. Members who have so far spoken has been willing to deal with.

--- Later in debate ---

[The Minister of State, Department for Education (Mr Nick Gibb)]

It is a pleasure to serve under your chairmanship, Mr Gray. Let me begin by congratulating my hon. Friend the Member for Gloucester (Richard Graham) on securing a debate on a topic of great importance to us all; indeed, I met him and other colleagues on 12 March to discuss it.

I understand my hon. Friend’s concerns. Gloucestershire is ranked 136th out of 151 authorities for funding allocations per pupil. In 2011-12, funding per pupil was £4,661, compared with the national average of £5,082. My hon. Friend’s opening remarks and the whole debate reflect concerns across the sector about the school funding system.

My hon. Friend is the Martin Luther of school funding reform; indeed, I found a letter from the F40 chair, Councillor Ivan Ould, nailed to the door of the Department for Education. It listed four options or grievances, and we will respond to it in due course. I should, however, point out that option 3 would cost £99 million, which is not an insubstantial sum, given the current financial climate.

I pay tribute to my hon. Friend for the passion, commitment and perseverance he has shown in campaigning for a fairer funding system and formula. He has raised these issues on countless occasions, including when I visited Tredworth junior school, Finlay community school and Gloucester academy in his constituency last July. I also pay tribute to the work of my hon. Friend the Member for Worcester (Mr Walker), who has provided the leadership and steering for the F40 campaign in Parliament.

I wholeheartedly agree with hon. Members that the current system for funding schools is in desperate need of reform. It is based on an assessment of need that dates back to at least 2005-06, if not further, so it has not kept pace with changing demographics and the needs of pupils across the country. It is also too complex and opaque, so head teachers and governing bodies are often unable to understand how their budgets have been calculated.

It is not right that schools with very similar circumstances can receive vastly different funding for no clearly identifiable reason. We have found that funding between similar secondary schools can vary by £1,800 per pupil. As my hon. Friend the Member for South West Bedfordshire (Andrew Selous) said, the neighbouring areas of Luton, which is poorer than central Bedfordshire, and Buckinghamshire, which is richer, receive more funding per pupil than central Bedfordshire. My hon. Friend the Member for Loughborough (Nicky Morgan) made a similar point, when she said that Leicestershire, which received the lowest amount in the country, received £900 less per pupil than the city of Leicester. That seems unfair.

As my hon. Friend the Member for Warrington South (David Mowat) said, there is a 50% discrepancy in funding between Warrington and Westminster local authorities. My hon. Friend the Member for Redditch (Karen Lumley) said that Redditch receives £1,000 per pupil less than Birmingham. My hon. Friend the Member for Kingswood (Chris Skidmore) noted that one side of the Sandwell road in his constituency receives £4,487 per pupil, while the other receives £5,469 per pupil. I have never been compared to Mr Gorbachev, but I accept the challenge to tear down these walls and end these absurd inequities.

The Government remain committed to reforming the funding system so that it is fair, transparent and reflects the needs of pupils across the country. On 26 March, the Secretary of State for Education announced our intention to introduce a new national funding formula during the next spending period. I am sympathetic to my hon. Friends’ wish to see us move faster and address the system’s inequities much sooner. However, in reforming a system that is so entrenched, we need to proceed with caution, and it is important that we introduce full-scale reform at a pace that schools can manage. At a time of economic uncertainty, stability is crucial.

Our priority must be to ensure that schools are able to focus on delivering high educational standards and are not side-tracked by destabilising shifts to their funding. Attempting to introduce any dramatic change to the funding system at a time when we are, by necessity, addressing the budget deficit could cause problems in those schools where there might otherwise be significant changes in their funding.

We will move towards introducing a new funding system, but at a pace that gives us sufficient time to agree the construct of a new formula and that allows schools enough time to adjust to changes in their funding arrangements. Since last spring, we have consulted widely on how to create a funding system that is fair and logical and that distributes extra funding towards the pupils who need it most. The Department for Education has had a number of conversations with key groups, including schools, local authorities, unions and academies, to consider how we can move towards a fairer funding system.

The announcement made by the Secretary of State for Education on 26 March not only reaffirmed our commitment to introducing a new national funding formula during the next spending round, but set out detailed funding arrangements from next year. The funding arrangements from 2013-14 will make the local funding system simpler and more transparent for schools, early years provision and high-need pupils. Under the new arrangements, education provision will be funded on a much clearer, more comparable basis than under the current system. Head teachers, parents and governors will be able to see precisely how their budgets have been calculated, and why.

The first step—we have heard a lot today about first steps, in various languages—to simplifying local funding will be to work on the basis that as many services and as much funding as possible will be devolved to schools. I firmly believe that schools are best placed to decide how to meet the needs of their pupils and to target funding effectively.

[Richard Graham]

Just to clarify, I think that we all welcome the announcements made by the Education Secretary on 26 March, which will, as the Minister says, simplify things considerably; but does the Minister see that as a first step, which can be improved during this Parliament?