Government Chemist Review
Amanda Solloway Excerpts(4 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
The twenty-third annual review of the Government Chemist has been received. The review will be placed in the Libraries of both Houses plus those of the devolved Administrations in Wales and Northern Ireland. The review will also be laid before the Scottish Parliament.
The Government Chemist is the referee analyst named in Acts of Parliament. The Government Chemist’s team carry out analysis in high-profile or legally disputed cases. A diverse range of referee analysis work was carried out during 2019, such as mycotoxin contaminants, pesticides residues, food contact materials, choking hazards, food allergens and genetically modified organisms dispute cases. The Government Chemist function continues to make headway on evaluating and optimising digital PCR for food authenticity testing.
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Oral Answers to Questions
Amanda Solloway Excerpts(4 years, 5 months ago)
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Michael Fabricant (Lichfield) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
Around 90% of employees already have a statutory right to request homeworking as well as other forms of flexible working. We are now encouraging employers and employees to discuss how work can be done safely at home or in a covid-secure workplace.
Michael Fabricant
Well, a recent survey has shown that two thirds of people would prefer to work from home either full time or part time, rather than work all the time at the places they worked from pre-covid. With this change in attitudes, which means we will end up with less pollution and probably a better standard of living, what can the Government do, and what can she do, to encourage this type of working for those who want it?
Amanda Solloway
I am sure that my hon. Friend did not. We are aware of the wider benefits of flexible working. Nearly half of employees have worked from home during covid-19. Most employees already have the right to request flexible working, which employers can reject only for really sound business reasons. In our manifesto, we committed to take it further, and we will be looking at it in the light of covid.
Gavin Newlands (Paisley and Renfrewshire North) (SNP)
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
The Government are committed to making the UK a world-leading science superpower, and are increasing Government spending on R&D to £22 billion by 2024-25. We have announced seven successful projects from all four nations of the UK, which will receive £400 million of funding through our strength in places fund. Our ambitious R&D roadmap commits us to publishing a place strategy in the autumn that goes even further.
Mr Sheerman [V]
Thank you, Mr Speaker, for all the work you have done to keep people like me engaged in the parliamentary process.
The Minister has a business background, so does she not realise that if she could persuade the Chancellor of the Exchequer to follow Mrs Thatcher’s example and introduce a windfall profit tax on people who have made a lot of money—the gambling industry and companies such as Amazon—that could be ploughed into research and development? Universities will go through a tough time in the coming months and years, so let us put real resources into research and development as never before.
Amanda Solloway
I add my thanks to your team, Mr Speaker.
The hon. Gentleman will be aware that we have a taskforce that has been looking into how to support universities. It has enabled us to set up a stability fund, which will enable R&D to continue in our institutions. In addition, in the roadmap, which contains the place strategy, we are talking about lots of levelling up. We are making sure we have the opportunity to take this forward and become the science superpower that we all want to be.
Andy Slaughter (Hammersmith) (Lab)
Daniel Zeichner (Cambridge) (Lab)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
The Government are now implementing their ambitious R&D roadmap, published earlier this month, reaffirming our commitment to increasing public R&D spending to £22 billion by 2024-25 and ensuring the UK is the best place for scientists, researchers and entrepreneurs to live and work.
Daniel Zeichner
I appreciate the recent announcements, but can the Minister reassure us that all universities will be able to access those loans, with freedom to invest in line with local priorities? Will she take a look at the proposals from the new Whittle laboratory in Cambridge, which needs to match the already secure £23.5 million in private sector funding to develop the first long-haul zero-carbon passenger aircraft?
Amanda Solloway
I give my assurance that one of the things we are addressing in the roadmap is ensuring that we become a science superpower. Within that, we are levelling up across the whole of the country. I am committed to making the workplace diverse and ensuring that we have a culture that embraces that throughout the whole of country. We will ensure that UK scientists are appreciated and rewarded.
Rushanara Ali (Bethnal Green and Bow) (Lab)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
The Government have provided unprecedented support to businesses and individuals. We are doubling the number of jobcentre work coaches, spending £32 million to recruit National Careers Service careers advisers and creating hundreds of thousands of new subsidised jobs for young people throughout the UK.
Rushanara Ali
I thank the Minister for her answer, but my question is about the job retention scheme and employment levels. Given that some employers will be paid to retain workers who are never going to be made redundant, some of the job retention bonus scheme will be a dead loss. Would it not be a more effective use of public money to use some of these funds to continue to pay the wages of workers hardest hit and to provide some support to some of the 3 million households that have been excluded throughout this crisis from any help from this Government?
Amanda Solloway
We are giving a whole range of support to everybody, as the hon. Member will know, through a lot of schemes. In fact, 9.4 million jobs have been supported through the coronavirus job retention scheme. As the scheme winds down, we will be making it more flexible so that people can return to work part time. We are also offering £1,000 to employers for each furloughed employee who is kept on until the end of January 2021.
Simon Fell (Barrow and Furness) (Con)
Unified Patent Court
Amanda Solloway Excerpts(4 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
I am tabling this statement for the benefit of right hon. and hon. Members to bring to their attention the UK’s withdrawal from the Unified Patent Court system.
Today, by means of a note verbale, the United Kingdom of Great Britain and Northern Ireland has withdrawn its ratification of the agreement on a Unified Patent Court and the protocol on privileges and immunities of the Unified Patent Court, dated 23 April 2018, in respect of the United Kingdom of Great Britain and Northern Ireland and the Isle of Man, and its consent to be bound by the protocol to the agreement on a Unified Patent Court on provisional application, dated on 6 July 2017, (collectively “the agreements”).
In view of the United Kingdom’s withdrawal from the European Union, the United Kingdom no longer wishes to be a party to the Unified Patent Court system. Participating in a court that applies EU law and is bound by the CJEU would be inconsistent with the Government’s aims of becoming an independent self-governing nation.
The agreements have not yet entered into force. However, in order to ensure clarity regarding the United Kingdom’s status in respect of the agreements and to facilitate their orderly entry into force for other states without the participation of the United Kingdom, the United Kingdom has chosen to withdraw its ratification of the agreements at this time. The United Kingdom considers that its withdrawals shall take effect immediately and that it will be for the remaining participating states to decide the future of the Unified Patent Court system.
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Intellectual Property
Amanda Solloway Excerpts(4 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
Our industrial strategy sets out the Government’s vision for making the UK the most innovative country in the world. The UK starts from a position of strength and is already ranked in the top five of the global innovation index and top 10 by the World Bank as the best place to start and grow a business. But the global landscape is changing and we must continue to invest in research and development. The industrial strategy has set an ambition to raise total research and development to 2.4% of GDP by 2027, helping businesses access the right funds and equip them to face the opportunities and challenges presented by new technologies and new ways of doing business.
Intellectual property (IP) plays a crucial role in innovation and touches everything that makes modern life more enjoyable, easier, safer and prosperous. It provides inventors, creators and entrepreneurs with the confidence to invest knowing that they will reap the benefits of their investments. UK investment in IP rights reached almost £64 billion in 2016 and studies have shown that industries that rely on IP have accounted for over a quarter of UK employment and almost half of GDP. Our IP system matters. It creates jobs and economic growth and is helping to propel Britain to the forefront of innovation.
The Intellectual Property Office (IPO) corporate plan 2020-21 explains how through its stewardship of the IP system, it will help the UK to be the most innovative and creative country in the world. It will do this through delivering excellent IP services, creating a world leading IP environment and attracting and retaining the best people by making the IPO a brilliant place to work.
The UK already has one of the best IP regimes in the world, consistently ranked as one of the top regimes in indices such as those from the US Chamber of Commerce International IP Index, and during 2020-21, the IPO will continue to contribute to building a business environment that makes the UK the best place in the world to start and run a business.
As an executive agency and trading fund of the Department for Business, Energy and Industrial Strategy, the IPO has set targets which are agreed by Ministers and laid before Parliament. I am glad that today I can inform the House that for 2020-21 the IPO’s targets are:
Deliver excellent customer service with our average overall customer satisfaction at least 85%.
Deliver our services efficiently through continuously improving our systems, processes and ways of working to make things better for our customers and our people, reduce costs and improve the value for money we provide. Our target is to achieve efficiencies worth at least 3.5% of our core operating costs.
We will have created equivalent UK rights from existing EU trade marks and designs to the UK register on 31 December 2020.
We want to ensure that the UK’s IP framework incentivises the development and adoption of AI technologies, supporting the Government’s ambition of putting the UK at the forefront of the AI and data revolution. We will do this by developing our understanding of how AI impacts the IP framework through launching a call for views and publishing our response so as to provide the clarity our customers need to confidently invest in AI.
It is important to note that our plan and our targets were developed prior to the outbreak of the coronavirus (covid-19) epidemic. At present our targets are unchanged but we will review this as the impact of the virus becomes clearer. We have the ability to adapt our finance and resource models according to emerging trends and we will do so. We will also work with BEIS and our other partner organisations to review our priorities regularly, ensuring we support wider Government responses to the economic impact of the virus and seek to focus our efforts and resources where they will have the most significant impact driving the UK innovation and creative economy.
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Oral Answers to Questions
Amanda Solloway Excerpts(4 years, 6 months ago)
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Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
The Government have powers under the Enterprise Act 2002 to intervene in certain transactions on national security grounds. We will bring forward legislation to strengthen our existing powers in this area, including enabling Government intervention in acquisitions of assets such as sensitive intellectual property.
Mr Sheerman [V]
First, may I associate myself with our memories of Jo Cox? She was my close friend, neighbour and great comrade and colleague.
Why cannot this Government and Prime Minister wake up to the threat from China, which wants to be the dominant world economic superpower? Does the Minister not realise that China cannot be trusted? It has been stealing our intellectual property from universities, businesses and Government for years. How could we possibly want it to be involved in our telecommunications industry through Huawei, and will we please put a stop to the partnership on developing nuclear power in our country?
Amanda Solloway
We welcome inward investment in the UK’s civil nuclear sector. All investment involving critical infrastructure is subject to thorough scrutiny. Foreign investment and an active competitive economy are key to the UK’s growth. The UK wants a modern and mature relationship with China based on mutual respect and trust.
Scott Mann (North Cornwall) (Con)
Stuart Anderson (Wolverhampton South West) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
We have provided a significant package of support to pubs—including a one-year business rates holiday and access to grants of up to £25,000 per qualifying property—through a number of schemes. That is alongside the business support available to all sectors, including access to the coronavirus job retention scheme and various Government-backed loan schemes.
Stuart Anderson
Pubs in Wolverhampton such as the Merry Hill, Oddfellows and the Mount Tavern will have been impacted by covid-19. I welcome the measures the Minister outlined, but what is the longer-term strategy to help pubs to return to a profitable state and to become the vital community hubs that they were before?
Amanda Solloway
I thank my hon. Friend for that question, because it is vital that we recognise how important such businesses are as community hubs. We recognise that trading conditions may be challenging for many businesses for some time to come. We will continue to work with the sector, both to prepare for reopening and afterwards. I understand that the Minister responsible for small business—the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Sutton and Cheam (Paul Scully)—plans to continue to meet representatives of the sector regularly.
Ian Lavery (Wansbeck) (Lab)
Oral Answers to Questions
Amanda Solloway Excerpts(4 years, 7 months ago)
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Craig Williams (Montgomeryshire) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
I thank my hon. Friend for his question. We are engaging with businesses, business representative organisations and unions to get a shared view on how workplaces are made as safe as possible for when people return to work. We will work with industry and other key Administrations to help develop an understanding of how business can adapt to a world where restrictions may last for some time.
Craig Williams [V]
I welcome my hon. Friend to her place. I want to ask particularly about tourism and hospitality, as Montgomeryshire is a rural, countryside constituency. It is built for socially distanced tourism, but the industry, including our pubs, our hotels and our countryside pursuits, will need some support in putting together the new normal and the new way of working. What work are the Government doing to get the sector deal on its feet?
Amanda Solloway
As the Prime Minister said, we want to get the economy moving as fast as we can, but we refuse to throw away all the effort and sacrifice of the British people and risk another major outbreak. We will be relying on science to inform us, as we have from the beginning. We will also be reaching out to build the biggest possible consensus across business, industry and all parts of the United Kingdom.
Andy McDonald (Middlesbrough) (Lab) [V]
Yesterday, the Government gave trade unions just 12 hours to respond to seven consultation papers on safe return to work. The entire country wants the Government to succeed, but that is not how to build confidence or trust. The proposals talk about what the Government expect employers to consider and say that social distancing and hand washing should happen where possible to help, but insufficient attention is paid to personal protective equipment. Taking the necessary steps to protect employees is not a matter of expectation or guidance; it is the law. Will the Minister therefore confirm that covid-19 risk assessments will be mandatory for most businesses; that they will be made public and registered with the HSE; and that, given the lack of capacity to carry out inspections, workplace health and safety reps will be involved in settling assessments and then in their implementation and enforcement, and that they will be able to assist in non-unionised supply-chain companies?
Amanda Solloway
We are engaging with businesses, business representative organisations and unions to come to a shared view on how to make our places as safe as possible for when people return to work. I can assure the hon. Gentleman that we are also involving Public Health England and the Health and Safety Executive.
Andrew Griffith (Arundel and South Downs) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
I thank my hon. Friend for his question. The UK Space Agency, working with NHS England and the European Space Agency, has made £2.6 million available for “close to market” ideas to manage pandemics. A new, fast contracting process will ensure swift development. The agency is also working with UK Research and Innovation to explore how drones can support health services.
Andrew Griffith [V]
May I join my hon. Friend the Minister in thanking the space industry for its help with the crisis? Does she agree that investment in the UK space sector has a vital role to play in growing the UK economy, and could she confirm that programmes such as the global navigation satellite system and Skynet 6 are moving ahead at pace?
Amanda Solloway
My hon. Friend is absolutely right. The growing UK space sector employs 42,000 people and contributes £300 billion to the wider UK economy by providing satellite services on which many industries rely. The UK Space Agency continues to investigate the requirements, design specifications and cost of a UK GNSS capability, and it is working closely with the Ministry of Defence to support activities under the Skynet contract. We are working hard to develop a UK space strategy to generate further economic growth across the country.
Sir Edward Leigh (Gainsborough) (Con)
Post Office Network
Amanda Solloway Excerpts(4 years, 9 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
It is a great pleasure to serve under your chairmanship, Mr Gray.
I congratulate the hon. Member for Motherwell and Wishaw (Marion Fellows) on securing this important debate on the Post Office. I was taking notes all the way through and sincerely hope that I manage to address many of the questions that have been asked. The Minister with responsibility for small business, my hon. Friend the Member for Sutton and Cheam (Paul Scully)—he is the fifth of the Ministers the hon. Lady referred to—would have been present but could not be here today. I assure the House that I will pass the messages on to him.
It is encouraging to see the shared passion we have for this vital asset—the post office network is, absolutely, a national treasure. I was delighted to hear the hon. Member for Brentford and Isleworth (Ruth Cadbury) talk about new premises, and to hear the wise words of all Members—including the hon. Member for Sheffield, Brightside and Hillsborough (Gill Furniss), who described the post office network as a “national gem”. I thank the hon. Member for Strangford (Jim Shannon) for his kind words. He is always incredibly kind to me, and what he said was lovely. It was great to hear his wise words. It was interesting to hear from the hon. Member for Gordon (Richard Thomson), who had positive things to say about the Post Office, and the hon. Member for Paisley and Renfrewshire North (Gavin Newlands), who talked about the flexibility we have.
I assure the House that the Government fully understand that the Post Office is an organisation like no other. Post offices up and down the country contribute enormously to the life and soul of the community, providing a convenient access to vital services and infrastructure that our constituents and businesses need to prosper. Since 2010, therefore, successive Governments have invested more than £2 billion to safeguard and modernise the post office network, to ensure that it is sustainable for the future.
I will address some of the specific questions asked by the hon. Member for Motherwell and Wishaw. Since 2010, the Post Office has turned a corner, but colleagues should not take my word for that. In 2016, it became profitable for the first time in recent history, culminating in a pre-subsidy profit of £60 million in 2018-19. Winning new business has contributed to the improvement of the Post Office’s official financial performance and, consequently, the Government funding required to sustain the uncommercial parts of the network has drastically decreased. The network transformation programme that took place from 2012 to 2018 enabled the modernisation of more than 7,000 branches, adding more than 200,000 opening hours per week and establishing the Post Office as the largest network trading on a Sunday.
A new chief executive officer was appointed in September 2019. He is committed to resetting the Post Office’s national relationship with postmasters. One of the questions that the hon. Lady asked was about that relationship, and we will continue to ensure that it thrives.
In addition, rather than branches closing, the overall number of post offices grew by 91 in 2018-19, and 653 branches have opened as part of the new network locations programme, supporting our high streets and providing customers with a better and more accessible service while making the network more resilient. Furthermore, the Post Office’s agreement with high street banks enables personal and business banking in all branches, providing vital access to cash and banking services for consumers, businesses and local economies while bank branch closures continue apace.
Post Office Ltd has taken further steps to incentivise prospective postmasters to take on a post office. That includes an increase to postmaster remuneration of 10%, year on year, in 2020-21. That is one of the questions you were asking—
Amanda Solloway
Apologies—that is one of the questions she was asking.
The hon. Lady asked about BEIS and Government oversight of the Post Office. BEIS has challenged the Post Office and, in fact, the new CEO and the chair personally to strengthen their relationship with postmasters and to take on board the lessons learned from the recent litigation. They have provided assurances that they will do so. BEIS has established, and chairs, a quarterly group with the National Federation of SubPostmasters and the Post Office.
The hon. Lady asked about Post Office card accounts. The POCA contract is a commercial matter for the Department for Work and Pensions and Post Office Ltd. It is no secret that the contract for the Post Office card account will come to an end on 30 November 2021, but the DWP is in the process of developing a replacement. The predecessor Minister with responsibility for small business, my hon. Friend the Member for Rochester and Strood (Kelly Tolhurst), wrote to her ministerial colleagues in the DWP in full support of a full and open tender process to ensure the delivery of the best possible service to citizens and value for money.
I turn to franchising. There is a widespread misunderstanding that franchising is a closure programme, leading to redundancies and the deterioration of services for consumers, but that is not the case. I appreciate that the proposed changes to the delivery of post office services can cause concern in the communities affected, and that some constituents have a strong emotional attachment to directly managed branches and their staff. However, the franchising model has endured to this day, and the vast majority—more than 11,300 post offices—are successfully run on a franchise or agency basis with large and small retailers as part of a thriving business.
Since January 2020, the Post Office and Payzone network have become exclusive bill payment providers for British Gas, bringing more footfall for businesses and revenue for postmasters. Although it is important not to be complacent and to recognise the challenges ahead, I encourage Members to look closely and objectively at the facts, which show unequivocally that the network is more sustainable today than it was in 2010. All that has been achieved notwithstanding the challenging trading conditions in the Post Office’s core markets and the wider sector.
Delivering post office services as part of a wider retail offer is a proven model that brings benefits to the community, the local economy, postmasters, consumers and, ultimately, taxpayers. Let me reassure hon. Members that as part of its ongoing monitoring role, Citizens Advice will continue to track the impact of post office changes on consumers and customer satisfaction with franchised post offices. Citizens Advice also has a formal advisory role in reviewing changes to the Crown post offices across Great Britain that are relocated and franchised.
I note hon Members’ concerns about temporarily closed branches. Let me reassure the hon. Member for Motherwell and Wishaw that Post Office Ltd is committed to maintaining the branch network, and there is no programme of closures.
Ruth Cadbury
Could the Minister could explain, now or subsequently, how the Government wish to retain the network? Our experience is that it is not being maintained.
Amanda Solloway
If I do not answer the hon. Lady’s question subsequently, I will provide her with a written answer.
There are more than 6,100 post offices in rural areas, and almost 99% of the rural population live within three miles of one of those branches. Illustrating the importance of post offices in those areas is the fact that almost half of rural post offices have community status, which means that they are the last shop in their village. When the hon. Member for Motherwell and Wishaw referred to how she had been helped with a passport application, I was reminded that, many years ago, I was in exactly the same situation when I went to do my passport. The Post Office recognises the unique challenge of running a community branch, and it provides fixed as well as variable remuneration to reflect their special situation.
A question was asked about opening hours. The network transformation programme involved the announcement of more than 200,000 weekly opening hours and established the Post Office as the largest network trading on a Sunday. The Government fully understand the importance of access to cash, especially in the context of accelerated bank branch closures. That is why the industry-wide banking framework agreement between the Post Office and the high street banks is pivotal in ensuring convenient access to everyday banking services. The House will be glad to know that, as part of its review of postmaster remuneration, Post Office Ltd increased the fixed remuneration received by community status branches to ensure the long-term stability of the rural network.
On Horizon, which the hon. Member for Motherwell and Wishaw asked about, I echo what my colleague Paul Scully MP said to the House: although the Government are pleased that a resolution to the Horizon group litigation has been reached, we do not take for granted the strength of feeling about the negative impact that the Horizon court case has had on postmasters. The Government recognise that this has been a difficult period for postmasters, who are at the heart of communities across the UK. Although the financial settlement in December 2019 and the Post Office’s apology are significant steps in the right direction, there is still a lot that the Post Office needs to do to strengthen its relationship with postmasters and to regain public trust.
Let me reassure hon. Members that improvements at all levels of the organisation are well under way, reflecting the lessons learned from the past. Minister Scully has already spoken to the Post Office—
James Gray (in the Chair)
I think the Minister means to refers to the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Sutton and Cheam. The Minister should not mention the name of the Member of Parliament.
Amanda Solloway
I apologise. The Minister has already spoken to the Post Office’s newly appointed chief executive, and has been assured that a major overhaul of the Post Office’s engagement and relationships with postmasters is progressing.
The Government will continue to monitor and proactively challenge the Post Office leadership and will hold it to account on its progress. The Department for Business, Energy and Industrial Strategy is looking at what more needs to be done, and it will outline the next steps in due course.
Mention has been made of postmaster relationships and remuneration; in 2019, after a six-month review of postmaster pay, Post Office Ltd announced an additional pay increase of £37 million per annum. A question was asked about subsidy payments; beyond 2020, Government remain committed to ensuring the long-term sustainability of the network with Post Office Ltd.
To conclude, let me reassure Members that Government recognise the value and importance of postmasters and post offices to communities, people and businesses in rural and urban parts of the UK. We will continue to safeguard the post office network to ensure that post offices can thrive at the heart of communities across the country. I thank hon. Members again for their contributions to this excellent debate and for their hard work supporting access to post office services for our constituents.
Oral Answers to Questions
Amanda Solloway Excerpts(4 years, 9 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
Thank you, Mr Speaker.
The Government are committed to making the UK a world leader in clean growth, building on existing strengths in sectors such as nuclear and offshore wind. We are taking action to deliver that, including by investing £3 billion in low-carbon innovation to 2021 and £170 million from the industrial strategy challenge fund to support our industrial decarbonisation mission to create at least one low-carbon industrial cluster by 2030.
Simon Fell
Tidal energy could be a game changer for my constituency of Barrow and Furness, for Morecambe bay and for the wider United Kingdom, through clean energy production and the ability to lead the world in this technology. Does my hon. Friend agree that, when considering the viability of these schemes, we have to rewrite the Treasury’s Green Book to take into account not only the unit cost of energy produced, but the value to the UK of leading in this technology and the social impact of bringing the schemes to constituencies such as mine?
Amanda Solloway
I thank my hon. Friend for that question; I know how passionately he cares about the issue. I agree that the seas around the UK offer huge opportunities for cutting emissions and growing our economy. The offshore wind projects near his constituency offer an excellent example of UK leadership in renewable power. We are determined to drive growth in all parts of the UK and ensure that our assessment of projects takes full account not just of carbon savings, but of the growth and opportunities that they can provide for people across the country.
Matt Vickers
The Net Zero Teesside project aims to decarbonise the Teesside industrial cluster by as early as 2030, capturing up to 6 million tonnes of carbon dioxide annually. The project could support up to 5,500 direct jobs, and it could help to safeguard as many as 16,000 existing jobs in the Tees valley. The UK has a unique chance to lead global development of a new carbon capture, utilisation and storage industry. Will the Government prioritise this technology?
Amanda Solloway
My hon. Friend, who I know cares passionately about this issue, makes a really good point; CCUS will be vital to meeting our net zero target and revitalising the UK’s industrial areas. The Government have invested over £50 million in CCUS innovation, and recently we consulted on potential business models to help progress deployment. The CCUS action plan aims to enable the commissioning of the first facility in the UK in the mid-2020s. We committed in our manifesto to investing £800 million towards that, and £500 million to help energy-intensive industries move to low-carbon techniques.
Bill Esterson (Sefton Central) (Lab)
If the Government want to help clean growth, they can invest in the Mersey tidal power project. It is clean, entirely predictable, and could power 1 million homes. It offers high-quality jobs and has massive domestic and export potential. Steve Rotheram and the Liverpool City Region Combined Authority have just committed a further £3.5 million to the project, so will the Government back the people of the north-west by supporting investment in this exciting new project? It is a chance to demonstrate that they are interested in and serious about tackling the climate crisis.
Amanda Solloway
Yes, absolutely. We need to do that for research and development in all technologies, and I will welcome the opportunity to meet the hon. Gentleman in the future.
Alan Brown (Kilmarnock and Loudoun) (SNP)
The Minister says the UK is a world leader in offshore wind, but the reality is that too many manufacturing and supply chain jobs go abroad following the award of contracts for difference. Will she look seriously at including a quality assessment mechanism in the bid process to incentivise companies to use UK firms such as CSWind and BiFab?
Amanda Solloway
We are making sure that we get to 60% UK employment in manufacturing by investing in R&D. We are committed to doing that.
Alan Mak (Havant) (Con)
Nuclear fusion and cleantech are key drivers of the fourth industrial revolution that will help to create hundreds of thousands of jobs across the whole country this decade. Will my hon. Friend ensure that the COP26 summit is used to showcase our country’s green entrepreneurs?
Jessica Morden (Newport East) (Lab)
As the Government rejected the opportunity to create new clean jobs when they scrapped the Swansea bay tidal lagoon, which had huge potential for communities along the Severn to kick-start further lagoons, may I, along with other hon. Members, urge them to look again at the huge potential of tidal power?
Amanda Solloway
I can confirm that we have a commitment to net zero, and we are doing everything we can to look at carbon neutral.
Jonathan Gullis (Stoke-on-Trent North) (Con)
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
Local crofters in Melness support the proposal to establish a vertical space launch facility in Sutherland, and they have written to the Prime Minister to tell him that. Does the Secretary of State agree that that would be good for the local economy and that the UK has a huge opportunity in terms of launching satellites for other countries that do not have launch facilities?
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
I thank the hon. Member for that question. We have united Departments across Government to develop a UK space strategy, which will help the UK lead the way in this fast-growing area and create thousands of jobs across the country. Our space strategy will support cutting-edge space science and technologies and foster world-leading British innovation.
Neil O'Brien (Harborough) (Con)
Nearly half the core research and development budget is spent in just three cities—Oxford, Cambridge and London—and yet for every pound of private investment that such spending leverages in London, we get £3 in the east midlands and £5 in the west midlands. Does the Minister agree that, if we are going to level up, we need a fairer division of spending on R&D?
The Government’s Productivity Plan
Amanda Solloway Excerpts(7 years, 9 months ago)
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Amanda Solloway (Derby North) (Con)
It is a great honour to follow the hon. Member for Kirkcaldy and Cowdenbeath (Roger Mullin); I always listen to him with great enthusiasm. It is also great to be here with fellow members of the Business, Energy and Industrial Strategy Committee. To add to the comments of my hon. Friend the Member for Bedford (Richard Fuller), it is a great privilege to serve under the chairmanship of the hon. Member for Hartlepool (Mr Wright).
Productivity is an essential driving force for the country’s economy, with direct implications on our long-term growth, living standards and wages. Its importance was highlighted by my right hon. Friend the Chancellor of the Exchequer in his autumn statement back in November, when he spoke about how the UK is trailing behind several countries in terms of productivity, including the US and Germany. In seeking to tackle that problem, he announced £23 billion of investments, designed to improve output, with particular emphasis on infrastructure and housing. Along with the productivity plan and industrial strategy, that illustrates the Government’s commitment and determination to making the UK the best place in the world—
George Kerevan (East Lothian) (SNP)
I hope the hon. Lady will forgive me for interrupting her in her stride—she is making an interesting argument—but the largest proportion of the Chancellor’s £23 billion productivity innovation plan is for house construction. How does that add to productivity?
Amanda Solloway
I will come to that later in my speech. I apologise, but I am having difficulty seeing today, so Members should shout loudly if they want to intervene.
I was saying that the Government’s commitment to making the UK the best place in the world to do business should be warmly welcomed by the House.
I have spent most of my life in retail and manufacturing, so I am acutely aware of the challenges faced by the sector, which are clearly not unique to the industry and can be seen throughout the business community. With the right foundations, business and industry can and will flourish; we just need to provide the right conditions, which the productivity plan rightly addresses. In doing so, it is essential for us to focus on improving the quality of our primary and secondary education to provide an adequate starting point for young people heading into further education, apprenticeships and employment. I welcome the Government’s recognition that improvements to basic skills such as numeracy and literacy play a vital role, and the fact that they are putting those skills at the heart of their reforms. It is skill provision in general that I shall touch on today.
The UK’s competitiveness in the open market is now more important than ever. Following the result of last year’s referendum, as we seek to find new avenues for investment and trade, the potential opportunities for and contribution to our nation’s productivity should not be underestimated. New capital, more competition, and new technologies will all be vital as we look to compete with the rest of the world.
From a Derby North perspective, the success of the midlands engine is incredibly important to me. The midlands engine strategy can be a vehicle to deliver policy that will not only increase productivity but support the vision for a successful United Kingdom. We have a strong offering in the midlands that can deliver growth that is not only balanced by sector, geography and trade, but sustainable, in that it creates skilled, highly productive roles backed by private sector investment. The midlands engine must focus on elements that give us competitive advantage, central to which is our expertise in key sectors, especially advanced manufacturing.
In my constituency alone we have a high density of original equipment manufacturers—such as Toyota, Rolls-Royce and Bombardier—and a well-established supply chain that serves them all. It is essential that we have the training and skills that match local employers’ needs, which is something the productivity plan looks to address.
Andrew Stephenson (Pendle) (Con)
Today I met Katie Goodwill, who won the gold medal in computer numerical control turning at the 2016 WorldSkills show in November, and Ryan Worthington, another award winner; both work for Rolls-Royce in Barnoldswick in my constituency. Does my hon. Friend agree that apprenticeships play a vital part in developing the skills we need to improve productivity, and join me in congratulating Katie and Ryan on their success?
Amanda Solloway
Of course I do, and I congratulate them both on their great success. I was about to mention the apprenticeship levy, which is essential because it encourages large businesses to invest in their workforce and in the future, and will ensure that the UK has the skilled workforce it needs in the years to come.
During my time as an MP, I have regularly heard that more needs to be done to tailor skills to play to local strengths and boost productivity. Brilliant work is being done in Derby to try to tackle that problem. For example, in response to the needs of businesses such as Rolls-Royce and Bombardier, the university in the city recently opened a new science, technology, engineering and maths building. Apprenticeship providers such as 3aaa are building initiatives to link employers, schools and apprenticeship providers to tailor skills. A great example is the recently opened construction academy in Derby North, which looks to encourage and train young people in the much-needed skill of bricklaying. More needs to be done to support such hard work, and giving the required resources to the productivity plan will do just that. Initiatives such as those I have mentioned can make a real difference locally, and will not only set the foundations for growth but keep the east midlands and the UK on the map as a place where a technically skilled workforce is in place to meet demand.
It is reported that there is an annual engineering skills gap of 82,000 staff, which is clearly cause for concern. However, it is widely recognised in Derby that the local worker supply chain is struggling to keep up with the demand for skills that employers need. There are, though, positive signs that with smart investment and the long-term vision that comes from the productivity plan, those problems can be overcome. The Government have shown that they are committed to tackling our productivity problem, whether it is through new funding and capital, or through education, infrastructure and research and development. It is imperative that we support the plans outlined as we look to implement a long-term vision for our economy. I certainly feel that for Derby and the east midlands there are some great proposals in the plan that will go a long way towards addressing our specific concerns, while also addressing the issue of productivity and output throughout the UK.
Oral Answers to Questions
Amanda Solloway Excerpts(7 years, 10 months ago)
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Greg Clark
Yes. The hon. Gentleman raises an important point. The Competition and Markets Authority report identified a huge detriment that consumers were facing. There has been some limited response from the energy companies. For example, they have deleted some of their more abusive tariffs, but there is further to go, and we will be making a response to the CMA report in the days ahead.
Amanda Solloway (Derby North) (Con)
It has been recently announced that the strategy for the midlands engine for growth will be announced soon. The midlands engine is vital for business in Derby and the midlands, so may I urge the Secretary of State to consider it sooner rather than later?
Greg Clark
The midlands engine is a very important part of the strengthening of the economy, and there is real momentum there. My hon. Friend can look forward to some very important announcements that will be made imminently.