Oral Answers to Questions

Andrew Stephenson Excerpts

Tuesday 16th July 2019 Commons Chamber

[Priti Patel (Witham) (Con)]

9. If he will hold discussions with the Secretary of State for Transport to discuss the potential benefits to (a) businesses and (b) the implementation of the industrial strategy of funding strategic transport infrastructure projects in Essex.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)]

Our national productivity investment fund of £37 billion will increase investment in areas important for economic growth, such as transport. The Government are also committed to deliver the Lower Thames crossing with an estimated cost of £5.3 billion. I will happily discuss infrastructure projects in Essex with the Secretary of State for Transport, when I next see him.

[Priti Patel]

Last week, I chaired key investment meetings with businesses in Essex for the Great Eastern Mainline Taskforce and on the dualling of the A120. Those two projects alone would contribute £5 billion to the regional and national economy. Will the Minister and the Secretary of State encourage the entire Department to work with us to get behind this and get to the Treasury in particular to get the investment that is needed to get those schemes moving?

[Andrew Stephenson]

I welcome my right hon. Friend’s tireless championing of the case for improved road and rail in Essex, and I am happy to lend my support to her campaign. The county has a vibrant, enterprising economy, but greater investment in connectivity would deliver more jobs, housing and opportunities right across the region.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

12. What steps he plans to take to support the UK automotive sector in the event that the UK leaves the EU without a deal.

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[Nicky Morgan (Loughborough) (Con)]

13. What steps the Government are taking to help improve the viability of fuel cell manufacturing in the UK.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)]

We provide support through Innovate UK for early-stage fuel cell technologies, and through the Advanced Propulsion Centre and the energy entrepreneurs fund as those technologies mature towards the market. Our £23 million hydrogen for transport programme is expanding refuelling infrastructure, and fuel cell vehicles are eligible for consumer incentives, which helps to increase demand. Two weeks ago, I was at No. 10 with Intelligent Energy, a company in my right hon. Friend’s constituency, considering further opportunities for fuel cell deployment.

[Nicky Morgan]

I thank the Minister very much indeed for that answer; it sounds almost as if he knew I was going to raise Intelligent Energy, which is based in my constituency and, as he obviously knows, manufactures hydrogen fuel cells, having developed the technology. Will he confirm that the Government are technology neutral when it comes to identifying future technologies? To follow on from the previous question, do the Minister and the Department appreciate the opportunities for factories where diesel engines are no longer going to be manufactured to get into the manufacture of the next generation of engines, which should be fuelled by hydrogen fuel cells?

[Andrew Stephenson]

I agree strongly with my right hon. Friend: there is huge potential for the auto sector. The Government are committed to policies that are technology neutral as we achieve the ambitions that we set out in the Road to Zero strategy around a year ago. The Government support the development of hydrogen as a transport fuel and we are in step with international progress. However, we acknowledge that we need to go further and faster in all different types of technologies.

[Jim Shannon (Strangford) (DUP)]

We have certainly had some impressive improvements since the Automated and Electric Vehicles Bill in 2017, but will the Minister outline what recent steps have been taken to secure this manufacturing facility, which was so central to the Bill and its goal?

[Andrew Stephenson]

I missed the manufacturing facility that the hon. Gentleman referred to, but I am more than happy to work with him and others. I have been working closely with colleagues in Northern Ireland on a range of issues, and I am keen to meet the hon. Gentleman who is a tireless champion on behalf of industry in his part of the United Kingdom.

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

14. What discussions he has had with the Secretary of State for Defence on extending the provisions of the Energy Act 2004 to include recycling nuclear submarines.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)]

Officials in my Department have had several discussions with their counterparts in the Ministry of Defence on how the expertise and resources of the Nuclear Decommissioning Authority can best assist the submarine dismantling programme. However, we do not believe that extending the provisions of the Energy Act 2004 would provide an appropriate addition to that support.

[Luke Pollard]

I thank the Minister for his reply, but it is disappointing that that is the first time a Minister has said no to the cross-party request to extend the civil clean-up of nuclear sites to include old nuclear submarines, of which there are 13 in Devonport and six in Rosyth. Will the Minister lend the same support as his predecessor did and agree to meet the cross-party campaign? We have to find a way to safely recycle the submarines.

[Andrew Stephenson]

The disposal of nuclear submarines is a complex and challenging undertaking that I last discussed with the Minister for defence procurement, the Under-Secretary of State for Defence, my hon. Friend the Member for Pudsey (Stuart Andrew), yesterday. As the hon. Gentleman will know from the meeting he had earlier this year, the Government have an established programme of work in place and are committed to the safe, secure and cost-effective defuelling and dismantling of all decommissioned nuclear submarines as soon as practically possible. I am more than happy to meet the hon. Gentleman to discuss the matter further.

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

15. What recent discussions he has had with the Chancellor of the Exchequer on trends in the level of manufacturing output.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)]

We have regular discussions with Treasury Ministers on a range of subjects, including the importance of the manufacturing sector to the UK economy—it is the fourth largest in the EU and supports 2.7 million jobs. We are taking several measures to support manufacturing growth, including £141 million for the Made Smarter industrial digitalisation programme and £600 million for the high-value manufacturing catapult.

[Mr Bailey]

Notwithstanding the welcome news from Jaguar Land Rover, overall manufacturing production is contracting, export and domestic orders are down, investment is paralysed and employment is dropping. This has huge implications for the public finances. What discussions is the Minister having with the Treasury on the implications of all that for the delivery of the Tory leadership contenders’ tax and spending plans?

[Andrew Stephenson]

The latest Office for National Statistics index of production figures show that, despite strong fluctuations in recent months, the level of manufacturing output in May 2019 was the same as it was in May the previous year, and the level of the three months to May 2019 was actually higher than it was in the same period in 2018. That stands in stark contrast to the situation under the Labour Government, when we saw more than 35,000 manufacturing businesses cease to exist and 1.7 million manufacturing jobs lost.

[Mrs Kemi Badenoch (Saffron Walden) (Con)]

MetalMin is a manufacturing business in my constituency and part of the British Steel supply chain. Will the Secretary of State meet the directors of the company to discuss what specific support the Department is providing to British Steel suppliers to ensure that they can stay in business?

[Andrew Stephenson]

I thank my hon. Friend for her question. She will know that the Secretary of State and I are actively involved in the British Steel support group, which meets weekly. We will raise the concerns of her local business at that support group and I will come back to her.

[Barry Gardiner (Brent North) (Lab)]

The Minister will know that last month’s statistics on foreign direct investment show that new projects are down by 14%, new jobs are down by 24% and existing jobs safeguarded by new investment are down by 54%. That is an 80% drop in FDI over the past five years. What discussions has he had with the Chancellor about the effect of that on manufacturing output?

[Andrew Stephenson]

I am proud that we remain one of the most attractive destinations in the world for foreign direct investment. UK unemployment has now fallen below 3.8% for the first time since 1974, average wages are growing twice as fast as inflation and by the fastest rate in over a decade, and all while we borrow half as much as Labour did in the five years before the crash.

[Martin Vickers (Cleethorpes) (Con)]

Can the Minister give an update on negotiations in reference to Scunthorpe steelworks?

[Andrew Stephenson]

I thank my hon. Friend for that question. As he will know, that is in the hands of the official receiver. I am seeking to keep him and other local Members of Parliament updated regularly with what is going on, but I know that my right hon. Friend the Secretary of State has left no stone unturned and is meeting with various bidders and other people to secure the long-term future of steelmaking in his region.

[Jeremy Lefroy (Stafford) (Con)]

17. What recent steps he has taken to support the automotive industry in the UK.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)]

Yesterday, the Prime Minister chaired a roundtable with automotive companies to discuss how the Government can best continue to support the industry through this period of unprecedented change. The Prime Minister announced a £500 million loan guarantee to support Jaguar Land Rover’s design, manufacture and export of the next generation of electric vehicles, with similar support also available to others in the sector. Through our industrial strategy and landmark automotive sector deal, we remain committed to keeping the UK at the forefront of new technological development.

[Kirstene Hair]

I thank the Minister for that answer and declare that I am vice-chair of the all-party group for fair fuel.

The automotive industry is moving apace to ensure that it can help reach the Government’s ambitious targets for electric vehicles, but of course we need to have the infrastructure in place to supplement that as well. Will the Minister outline what his Department has done to help rural communities such as Angus with that?

[Andrew Stephenson]

Our UK-wide grant scheme and the £400 million public-private charging infrastructure investment fund will see thousands more public charge points installed across the UK, including in rural areas. Yesterday, the Prime Minister committed that all new rapid and higher-powered charge points will provide pay-as-you-go debit or credit card payment options by spring 2020 to enable access for all in the community. We will continue to monitor whether any significant gaps in infrastructure provision emerge in the medium term and will consider whether further support is required.

[Jeremy Lefroy]

I very much welcome the announcements by JLR and BMW. The Minister will know that in the event of a no-deal, which I very much hope will not happen, we will face not only tariffs, but the implication of rules of origin. This was seen by BMW moving the manufacture of engines for South Africa out of Hams Hall in the west midlands to Germany. What discussions has he had with his colleagues in Government over the implications of rules of origin for future trade arrangements?

[Andrew Stephenson]

I thank my hon. Friend for his question. He is right to say that the decisions by JLR and BMW about the electric Mini are votes of confidence in the workforce in the west midlands. However, we must prepare for all scenarios, and we are fully preparing for no deal and working with the industry to understand the potential impacts, including, as he says, the impact of rules of origin. We are determined to ensure that the UK continues to be a competitive location for automotive under any scenario. Alongside industry, we are investing almost £1.5 billion to ensure that we are at the forefront of new automotive technologies.

[Jack Brereton (Stoke-on-Trent South) (Con)]

21. What recent steps he has taken to support growth in the midlands.

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[Trudy Harrison (Copeland) (Con)]

T10. Does the Secretary of State agree that nuclear energy must be part of the decarbonisation of this country? Could he update the House on progress made with the regulated asset base financial model and the energy White Paper?

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)]

I agree with my hon. Friend that nuclear power has a key role to play in delivering the net zero target and acknowledge the unrivalled nuclear expertise in Copeland, which I was delighted to see on my recent visit to her constituency. We intend to publish our assessment of the feasibility of the RAB model for funding new nuclear shortly.

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

T8. The St Rollox railway works in my constituency will close next Friday, with a loss of 200 jobs and ending 163 years of operation. While the Scottish Government have refused to renationalise the facility, Scottish Enterprise is actively seeking a new buyer for the site. Will the Secretary of State ensure that his Department is fully deployed to aid in that effort at all levels of Government?

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[Andrea Jenkyns (Morley and Outwood) (Con)]

I recently visited Coca-Cola in my constituency. It will be investing £50 million in its Wakefield plant this year, providing jobs and apprenticeships to my constituents. Companies are investing in Britain, demonstrating that the future will be bright after Brexit. What is the Department doing to attract further foreign investment?

[Andrew Stephenson]

I thank my hon. Friend for her question. We work closely with the Department for International Trade to secure more inward investment into the UK, and we ensure through our industrial strategy that we have one of the most competitive environments for investment globally.

[Thangam Debbonaire (Bristol West) (Lab)]

What discussions is the Secretary of State having with his relevant counterparts in other departmental teams about the ability of people in the creative industries to travel around the European Union if there is a Brexit of any sort? Secretary of State, please.