(5 years, 9 months ago)
Commons ChamberI will give way, but I do not wish to emulate others in making long speeches.
The hon. Lady mentioned businesses that are not prepared to go on the record. I quote:
“This is not a Brexit-related issue for us”,
and this decision is “being made” on the basis of “global…changes”—those are the words of Ian Howells, Honda’s senior vice-president for Europe. It is clearly disingenuous to suggest that Honda’s decision was based on Brexit. Does she accept that, because Ian Howells says so?
I do not know whether the hon. Gentleman was in his place when I started speaking, but I acknowledge that Honda’s decision is not entirely based on Brexit. However, as we have been discussing, the uncertainty in the business environment caused by Brexit has an impact on investment. The Minister stated that investment was not down, but investment in the automotive industry has gone down by almost 50% in the last year. At the same time, components worth £35 million are delivered from the European Union every day. That partly reflects the way in which our supply chains are integrated.
Government Members, many of whom pride themselves on their business experience, seem to fail to understand that supply chains—as a chartered engineer, I have been involved in many supply chains—such as the automotive supply chain are highly integrated and highly just-in-time. We have automotive supply chains that cross the channel backwards and forwards multiple times—for example, a crankshaft can be made in France, go to the west midlands to be drilled and milled and then sent to Munich to be put in an engine, which then comes back to Oxford—and the channel would be a tariff border. Such integration requires not only frictionless borders, but agreed standards to define everything from the acceptable frequency of electromagnetic radiation to the atomic composition of a given chemical. In leaving the European Union, what the Government apparently want is not less regulation, but simply more duplication, setting up new regulatory bodies to recreate existing European agencies and regulations. Far from Brussels imposing regulation on the European Union, it was often acting as an outsourcer for regulation that we would need in any case.
The automotive industry delivers not gig economy or minimum wage jobs, but good, well-paid jobs, and we in the north-east, particularly as the only region in the country that still exports more than it imports—we are very proud to have the most productive Nissan plant in the world in our region—refuse to envisage the future that the Government seem to desire, whereby our manufacturing is undermined by taking us out of the biggest free trade area in the world, one which is absolutely essential to us.
(5 years, 9 months ago)
Commons ChamberThe hon. Lady is making a very good speech, but does she agree that as a result of the taxation policies of this Government, the richest are paying more tax than ever before, and that by changing the tax rates we have lifted the lowest paid in our society out of paying tax entirely?
I thank the hon. Gentleman for his intervention, but it does show a lack of understanding of the economic realities in our country. The richest are not paying their fair share; the poorest are paying more in tax, particularly through that most unequal and unprogressive of taxes, value added tax, which the coalition Government immediately raised when they came into power. So the poorest in our country are being taxed more and the richest are not bearing their share of the burden.
The hon. Lady mentioned VAT. Is it her party’s policy to lower VAT, should it ever come into power?
(11 years, 2 months ago)
Commons ChamberThe resources should be focused on our region. The partnership between the LEP and the combined authority should take control, as much as is possible under current structures, of our region’s future.
As we have heard, the fact that the Government have taken so much out of the region—£100 million has been taken out of Newcastle city council’s budget alone—does not make the task any easier; rather, it makes it much harder. What would help is control over the valuable European funds that are directed to the north-east, to ensure that they go to where they are needed. One area where the report falls down is in ignoring the importance of culture, inclusion and community. The people of the north-east are the north-east. They are an asset beyond a mere skills base. That is why the European social fund, currently administered by the Department for Work and Pensions, which focuses on extending employment opportunities and developing skills should be devolved. I understand that the DWP will match the fund only if it can control it. If that is the Minister’s idea of localism, it is certainly not mine.
There are too many people in the region who are too far from the jobs market to take advantage of the high-skilled economy that we want to build. Councils and industry in the north-east are showing the kind of leadership that we need, by working together—at long last, one might say—to form a new authority that will work with the LEP, universities, businesses and people.
I agree with the hon. Lady about the need to increase skills and training in the north-east. Will she therefore join me in congratulating the Government on increasing the number of apprenticeships available to young people in the north-east by 70% in the last three years?
My hon. Friend is exactly right, and at a time when we have a global economy and the internet provides access to employment, contracts and business, it is simply unacceptable for people to be denied that facility. I know that the Minister is passionate about the subject, but we desperately need to see some movement forward.
In opening the debate, my hon. Friend the Member for Penrith and The Border talked about the trade-off between the auction price and the cost to UK plc as a trading organisation. If we asked people in my constituency about that trade-off, I think they would say, “Give us faster broadband now”. I hope that the Minister is receiving that message loud and clear.
We talk about rural broadband, but in my constituency there are villages such as Anslow and Tatenhill that are only 1 mile or 1½ miles outside the central Burton area but whose internet access is incredibly sporadic or in many cases non-existent.
The hon. Gentleman has spoken eloquently about the impact of slow broadband on his constituents. If he asked them, would they say they wanted universal broadband coverage by 2012 as the Labour Government proposed?
The hon. Lady asks an interesting question. I think they would say, “We want faster broadband, and we want it now”. We all understand that feeling.
It is incumbent on BT in particular to focus on what it can do to extend coverage to people who are at the end of the line. Villages such as those that I mentioned, which are tantalisingly close to the exchange, should get better broadband provision.
Has the Minister considered whether the legislation on the unbundling of the local loop needs revisiting? Should we not say that if BT cannot provide a service from exchange to cabinet and cabinet to home, we should open it up to competition and allow other providers to do it? I do not think my constituents care who provides the line; they just want access. Is there a case for considering whether other providers could do that faster and more effectively? That is not to criticise BT, because I know it is doing its level best, but the current situation is hampering the UK economy and having an impact on people’s quality of life.
Once again, I congratulate the Backbench Business Committee and my hon. Friend the Member for Penrith and The Border on bringing forward such an important debate.