Oral Answers to Questions

Adrian Bailey Excerpts

Thursday 8th January 2015 Commons Chamber

[Vince Cable]

That is a rather creative stretch to the low-carbon economy, but specifically on postgraduate education, the hon. Gentleman will be aware that we have just introduced a postgraduate loan scheme for the first time.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

6. What steps he is taking to increase the number of apprenticeship places through Government procurement.

[Mr John Spellar (Warley) (Lab)]

15. If he will make greater use of Government procurement to increase apprenticeship places.

[Mr Bailey]

In their response to a Business, Innovation and Skills Committee report on this issue, the Government said that they were

“working on guidance to encourage best practice amongst local authorities”.

This National Apprenticeship Service guidance was subsequently published in July. It was eight pages long, and the first six pages were devoted to problems in securing this policy and case studies of failed projects. Does the Minister agree that if we are to realise the policy’s full potential, we need a far more robust and proactive approach by the Government?

[Nick Boles]

I certainly agree that there is more to be done, which is why I have had several meetings with Lord Deighton, the Commercial Secretary to the Treasury, to work out exactly how we can make it an integral part of the procurement process for all major infrastructure projects that there is a clear commitment by all successful bidders to invest in skills training and in the creation of apprenticeships.

Oral Answers to Questions

Adrian Bailey Excerpts

Thursday 20th November 2014 Commons Chamber

[Nick Boles]

I met the Minister for Employment, my right hon. Friend the Member for Wirral West (Esther McVey), only yesterday to discuss a range of issues, and I should be happy to discuss that issue with her as well. There needs to be tight co-ordination between our two Departments, and we try to achieve it.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

8. What recent estimate he has made of the resource accounting and budgeting charge on student loans.

[The Minister for Universities, Science and Cities (Greg Clark)]

The most recent estimate of the resource accounting and budgeting charge is about 45%.

[Mr Bailey]

I thank the Minister for that admirably concise response.

On Monday, the Higher Education Commission published a report which effectively endorsed the statement in the report from the Business, Innovation and Skills Committee that the current finance system for higher education was unsustainable. The Government rejected the Select Committee’s report. In the light of the overwhelming evidence backing the report, will the Minister tell us what he is going to do about this?

[Greg Clark]

I do not agree with that report. Our system of student finance is in rude health. The OECD reviewed higher education systems throughout the world, and concluded that the

“UK is…one of the few”

countries

“that has figured out a sustainable approach to higher education finance”

and that

“that investment…pays off for individuals and tax payers.”

This year more students are going to university than ever before, and that would not have been possible without the reforms that we introduced.

Small Business, Enterprise and Employment Bill

Adrian Bailey Excerpts

Tuesday 18th November 2014 Commons Chamber

[Greg Mulholland]

My hon. Friend is absolutely right. Every pub is a story about a community, and a story about the people who are running it. There have indeed been many tragedies. I had one in my constituency; a pubco tenant died of a heart attack a week after closing his pub. There are awful stories of human misery here. It comes down to the simple problem I outlined at the beginning: the over-charging. These companies continue to take more than is fair. It can often be 70%, 80%, 90% or even 100% of the pub’s profit, meaning that licensees cannot make a living.

Most revealing of all, I have asked Punch Taverns—in writing, and to its representatives’ faces—four times why it is so afraid of the market rent only option, the simple option to give tenants the right, at certain trigger points, to be offered a fair commercial market rent, and it has failed to answer four times. That, Mr Deputy Speaker, tells you all you need to know. It tells you that this business model is precisely based on taking more than is fair and sustainable. The only solution is the market rent only option.

Let me deal finally with the Government’s suggestion of a compromise: “Perhaps we can include a reference to the market rent only option or the Business, Innovation and Skills Committee option being built into the Bill, but only after a review two years after the statutory code comes into force.” I understand why this is being said, because the will of this House is clearly in support of the market rent only option, with 90 coalition MPs signed up to the Fair Deal for Your Local campaign, which calls for that option. I understand why the Government Whips are getting so worried: they realise that they might lose this vote today.

Let me say clearly on behalf of the campaign and all the organisations that have expressed this view that the last thing we need is yet another review. We have had four exhaustive Select Committee reports. In 2011, when the Government were supposed to act, we had a Department for Business, Innovation and Skills review, and BIS decided not to act. What was supposed to be the last chance became a second-last chance for the pub companies. When people realised that nothing had changed, there was a further review. We have had four reports and two reviews. The simple reality is that we need action and need it now. I ask you, Mr Deputy Speaker, to grant a vote on new clause 2; I think that you will agree that it is the will of the House to vote on it, given the support for it.

The simple message from all the Fair Deal for Your Local campaigns, thousands of tied publicans, and all who believe in pubs, publicans, communities and fairness is “No more delays, no more reviews, no more excuses.” Please let us solve this problem at last, properly, once and for all. Please let us all vote for new clause 2 today.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

I have a sense of déjà vu as I rise to speak about this subject yet again. I shall confine my remarks to new clause 2, because that very well-researched clause is consistent with nearly 10 years of successive recommendations from the Business, Innovation and Skills Committee, and because I feel that it will address an issue that all the other proposals have failed to address: the unfair relationship between the pubco and the tenant. That unfairness, and the need to redress it, were spelt out to me in a letter that I received from a tenant, who wrote:

“The pub company wins all the time, they get a share of the Games Machines, the pool table, the Rent and they also put £30-£50 on top of each barrel so we pay a lot more for our beer than buying it off a wholesaler or warehouse.”

I realise that the Minister and the Government have moved a long way in the last two years, from insisting that a voluntary code would be sufficient to deal with the problem to recognising, following a long consultation, that it was necessary to introduce a statutory approach. However, I feel that, in its current form, that approach is lacking.

Let me begin by responding to the Minister’s reference to a possible Lords amendment postponing the implementation of the Government’s proposals until after a review and a ministerial decision. I oppose that course of action for a number of reasons, some of which were mentioned by the hon. Member for Leeds North West (Greg Mulholland). The industry has already been consulted to death. As the Minister said, the Government’s last consultation received an enormous number of responses, and it took them a long time to reach their conclusions. I therefore see no grounds for any further consultation.

The issue here is the deeply entrenched position of the British Beer and Pub Association, which represents the pub companies and which, over the years, has consistently paid lip service to the BIS Committee recommendations for the introduction of a voluntary code while dragging its feet and procrastinating at every stage of the procedure. Indeed, our last report referred to “glacial” progress. There is no reason to believe that any further consultation over the next two years will make any difference whatsoever.

[Richard Graham]

Does not the history of pubs and beer in this country show that the unintended consequences of legislation over the years have frequently proved almost disastrous?

[Mr Bailey]

I understand that argument, and I have some sympathy for it. However, the hon. Gentleman referred to unintended disastrous consequences. I think that many people would describe the closing of 27 pubs a week, which is happening at this moment, as a pretty disastrous scenario. I do not pretend that all the closures are a direct result of the beer tie or that all the pubs are owned by pub companies, but those are undoubtedly major factors in a high proportion of the closures. Given the current rate of closures, if we delay for two years the industry will have been greatly slimmed down even within that time.

--- Later in debate ---

[Andrew Griffiths]

I absolutely agree with my hon. Friend. As he says, some people are desperate to get a pub. They have a dream of being a publican, and there have been instances of pubcos waiting for the next sucker to come along and take on a tenancy. There has also been an element of rinsing—of passing people through the system. I do not support that; it is wrong and we should stamp it out.

[Mr Bailey]

The hon. Gentleman is being incredibly indulgent to the queue of Members trying to intervene on him. May I take him back to his point about the brewing orders? They undoubtedly had unforeseen consequences, but the proposals in new clause 2 are nothing like the proposals in those orders. The new clause proposes a graduated, incremental approach that would give the industry a chance to adapt and to see how the new arrangements were working.

[Andrew Griffiths]

rose—

[Mr Bailey]

I haven’t finished yet. My other point is that the new clause—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order.

Oral Answers to Questions

Adrian Bailey Excerpts

Thursday 26th June 2014 Commons Chamber

[Mr Speaker]

The hon. Gentleman and the Minister appear to have a symbiotic relationship, and we are grateful for that, I am sure.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

Despite all the praiseworthy emphasis that the Government have placed on increasing the number of apprentices, the number of apprenticeship starts in the under-19 age group is dropping. The BIS Committee recommended that the Government should use public procurement to increase those numbers, as a lot of local authorities do. Why have the Government not done it?

[Mr Willetts]

The Government believe in promoting apprenticeships across the public sector. Figures published today show an increase in the number of apprenticeships in that crucial age group.

Oral Answers to Questions

Adrian Bailey Excerpts

Thursday 10th April 2014 Commons Chamber

[Michael Fallon]

My hon. Friend will be aware, because I know he takes a strong interest in this area, of the reforms to UKTI, which is now working closely with British businesses. This week, I attended the world’s leading trade and industrial technology fair in Hanover and saw UKTI working with the Birmingham chamber of commerce to provide support for 40 UK companies. It is estimated that from that fair alone some £5 million-worth of orders are in the pipeline.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

In February, UK exports actually fell. Given the fact that last year only a fifth of the total amount of money available for financing exports was actually used, what more can the Minister do to increase the uptake of UK export finance in order to boost our exports?

[Michael Fallon]

The hon. Gentleman makes an important point. There are schemes to assist companies with their export finance, but only large companies have taken advantage of them in the past. We need to do more to market those schemes. I do not think it is fair to take one month’s particular trade figures. We are increasing our trade, particularly with the emerging economies of Brazil, Russia, India and China.

Oral Answers to Questions

Adrian Bailey Excerpts

Thursday 23rd January 2014 Commons Chamber

[Matthew Hancock]

I would love to congratulate my hon. Friend, who has teamed up with other MPs across Cornwall, including my hon. Friends the Members for Camborne and Redruth (George Eustice), for Truro and Falmouth (Sarah Newton) and for St Ives (Andrew George) and many others. Many Members of this House have been part of the 100 in 100 campaigns to get 100 apprentices in 100 days, and Cornwall is taking it just that bit further.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

The number of apprentices in the 16-to-18 age group is dropping at the moment, with serious implication for our long-term skills base. Will the Minister look again at the proposals of the Business, Innovation and Skills Committee to use public procurement contracts to ensure a certain level of recruitment for that age group in the way in which the previous Government did and local authorities are doing?

[Matthew Hancock]

Of course, Crossrail, which is the biggest public construction project in Europe, has in it exactly what the hon. Gentleman describes. He will have seen last week that we announced 2,000 new apprentices as part of High Speed 2. I entirely agree about the need to drive up the number of apprentices. We introduced a rule that every apprenticeship had to be a minimum of a year, and the number of apprenticeships for those aged between 16 to 19 lasting a year or more has gone up sharply. We must be careful to consider the reason for the numbers. Apprenticeships of under a year, in many cases without a job attached, are not really apprenticeships at all.

Oral Answers to Questions

Adrian Bailey Excerpts

Monday 6th January 2014 Commons Chamber

[David T. C. Davies (Monmouth) (Con)]

10. What assessment he has made of the findings of the recent PISA report as they relate to England; and if he will make a statement.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

15. What assessment he has made of the findings of the recent PISA report.

[The Parliamentary Under-Secretary of State for Education (Elizabeth Truss)]

The PISA results for 2012 showed that England’s performance has stagnated in the league tables, with no improvement over the entire period of the previous Government’s time in office. In contrast, Germany and Poland reformed their education systems and saw a significant improvement in their results, and east Asia also moved ahead. That is why this Government are learning from the success of those other countries by increasing school freedom and accountability and focusing on core academic subjects.

[Elizabeth Truss]

My hon. Friend is absolutely right and the Welsh Minister was right to apologise for letting children in Wales down. The reality is that the Welsh Government caved in to the unions and abolished national tests and league tables, and their results in maths have plummeted to lower than 40th in the PISA tables. That shows how vital it is that we increase accountability in this country and keep up the pace of our reforms to make sure that we push ahead like countries such as Germany and Poland, rather than fall behind like Wales.

[Mr Bailey]

The PISA report emphasised the potential benefits of raising standards through collaboration between schools. The 2010 teaching White Paper committed £35 million to school collaboration. Why has that commitment not been fulfilled?

[Elizabeth Truss]

We absolutely encourage collaboration, which is one of the reasons why we sent 50 teachers over to Shanghai to see how they do things there and to put that in place in our classrooms. We have already seen the results in some of our schools in England, including improved practice in the classroom and improved teaching results.

Oral Answers to Questions

Adrian Bailey Excerpts

Thursday 5th December 2013 Commons Chamber

[Vince Cable]

The hon. Gentleman is right that the building societies have a crucial role, primarily of course in mortgage lending, which is their traditional business, but some of them are moving into small business lending and that is very welcome. One of the reasons why the Chancellor and I did not support the recommendations of the parliamentary commission on leverage ratios was to protect building societies and enable them to expand.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

Given the failure of successive well-intentioned but ineffective Government schemes to boost lending for small businesses, including £78 million of unallocated resources for the funding for lending scheme, will the Secretary of State outline what extra measures he will take to ensure that the business bank succeeds where other schemes have failed?

[Vince Cable]

The bank is already succeeding. As I said to the right hon. Member for East Ham (Stephen Timms), there has been a very big increase in the lending being made available under the existing schemes and a big growth in equity-related activity. I think he will find that, as the business bank moves forward, we will use the £1.25 billion of new capital from the Treasury to do exactly what it was designed to achieve. I am very positive about the bank’s future.

PISA Results

Adrian Bailey Excerpts

Tuesday 3rd December 2013 Commons Chamber

[Michael Gove]

My hon. Friend is absolutely right. The investment in the pupil premium, the investment in additional pre-school education for the most disadvantaged two-year-olds and a concentration on helping students who are falling behind in year 6 at the end of primary school to catch up—all policies championed by the Deputy Prime Minister and the Minister for Schools—are integral to advancing social mobility.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

One of the most serious issues is the disparity between the achievement of boys and girls in maths and science, which is the result of deep-seated cultural and educational bias within the system. One of the ways of addressing that is to engage businesses, particularly manufacturing, in schools and to have schools assessed on their ability to get students into vocational as well as academic occupations. Unfortunately, the Government have not been prepared to take up the Department for Business, Innovation and Skills recommendation on that. Will the Secretary of State look at it again?

[Michael Gove]

I absolutely agree with the hon. Gentleman that it is vital that we build on and improve the links between business and schools. The university technical colleges programme is designed to do just that, but there is much more we can do. I have been talking recently to Sir Charlie Mayfield, of the UK Commission for Employment and Skills, to see how we can go even further. Of course, it is vital that we all embed the reforms set out in Alison Wolf’s report, which are designed to improve technical education and ensure that all education is more relevant to the work of business.

Small Businesses

Adrian Bailey Excerpts

Thursday 28th November 2013 Commons Chamber

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

Does the Minister agree that one great virtue of small businesses is that they are embedded in their local communities and are often loyal to them, unlike npower in my constituency, which has just offshored 400 jobs? Will he use the power of his Department to work with local authorities, the LEP and the chamber of commerce to do its best to mitigate that loss?

[Matthew Hancock]

The Department is of course doing what it can to mitigate the impact of that decision. The hon. Gentleman is quite right, as is my hon. Friend the Member for Carlisle (John Stevenson), who spoke passionately about the impact of small businesses, which are embedded in their local communities through jobs and their contributions to local and national life, as well as the role of local authorities in planning, property and procurement.

There have been some fantastic contributions to the debate. My hon. Friend the Member for Brentford and Isleworth (Mary Macleod), as well as recounting the various questions that she has asked at Prime Minister’s questions in the recent past, spoke about drilling enterprise through our education system, which I strongly support. My hon. Friend the Member for North Swindon (Justin Tomlinson) also made that argument. Every time I speak to him, he seems to have another idea about how we can get more content about enterprise into the education system.

Many Members raised the issue of red tape, not least my hon. Friend the Member for Reading West (Alok Sharma), who spoke about the impact of EU red tape. Members across this House must recognise that problem. It is wrongly dismissed by some, but it is an important issue that we need to address. We are doing so through the Prime Minister’s challenge to the EU. The taskforce of six business leaders who are looking at reforming EU regulations is putting the voice of business at the heart of the debate. It has made 30 recommendations on how to remove or improve the most burdensome EU rules. We are working with business to encourage the EU to take up those recommendations over the next year.

My hon. Friends the Members for Rugby (Mark Pawsey) and for Daventry (Chris Heaton-Harris) raised the issue of regulations on employers, especially with regard to micro-businesses. We have made progress by ensuring that employees cannot go to a tribunal until they have been employed for two years and by introducing fees for tribunals. We need to keep this area under constant review because, fundamentally, what we must do is make it easier to employ people and create jobs. That is what growing small businesses is all about.

It is a great pleasure to see you take the Chair, Madam Deputy Speaker. This is the first time that I have been in a debate that you have chaired.

My hon. Friend the Member for Norwich North (Chloe Smith) was here earlier, but apologised that she had an engagement with some small businesses. I pay tribute to the work that she did to open up procurement to small businesses. However, as my hon. Friend the Member for Daventry said, what we are doing in that area is not complete. There is much more to do to improve the formal rules and to ensure that they are seen, exercised and stuck to not only across central Government, but throughout the public sector, including in local authorities. The Department for Business, Innovation and Skills has just reached the target of sending 25% of its invoices to small businesses. That target applies to the whole of central Government and all other Departments are working towards it.

Many hon. Members raised the issues of access to finance and late payment, not least the hon. Member for Oldham East and Saddleworth (Debbie Abrahams). The Government pay more than 85% of undisputed invoices within five days. That is a big change and an impressive feat.