Opportunities for the Next Generation

Baroness Primarolo Excerpts

Tuesday 13th September 2011 Commons Chamber

[Robert Halfon]

It is interesting to hear that, because youth unemployment rose steadily over the past 10 years.

For those who call for a stimulus at all costs, such as the hon. Member for Swansea West (Geraint Davies), that decade is a warning. Even during a boom, we cannot spend our way to full employment. Other factors must be taken into account. From 2001, we asked teachers to spread themselves too thinly, with too many competing priorities. Maths and English suffered, and in the past 10 years, 500,000 children left primary school unable to read or write, which is shameful.

Our business culture is flawed. In Austria and Germany, for example, one in four businesses offer apprenticeships to young people, but in England it is just one in 10. Twice as many Germans qualify to become apprentices, or gain technical skills, compared with British people. What has gone wrong in the UK for our skills levels to be so low? I accept that the previous Government, as many Opposition Members have said, were concerned about youth unemployment, but far too often the schemes that were introduced in the past 10 years worked like a hamster’s wheel: people were shifted around and around, but they did not get anywhere.

The future jobs fund, which was celebrated by the right hon. Member for Southampton, Itchen (Mr Denham), cost a huge amount—£6,500 per placement. As I said in an intervention, about 50% of people who took part in the scheme went on the dole. I accept that there is genuine concern in all parts of the House about young people, but some of the policies introduced by the previous Government failed to get to grips with the problem, which should have been acknowledged in the Opposition motion.

What is to be done? We must improve our schools, build up vocational education, and encourage the right climate for employers to create jobs. We are already seeing a massive expansion in academies, and free schools and simpler budget lines for colleges have been introduced. All state schools will be assessed on maths and English, and that new focus is yielding results. We must build up vocational education. As has been said, the Government are funding 100,000 sponsored work experience placements for jobless 18 to 21-year olds. All vocational training will be free at the point of access, with costs repayable only when someone earns a decent salary. As has also been said, record numbers of people are signing up for apprenticeships—real apprenticeships—and getting into work.

The flagship, I believe, will be the 24 university technical colleges, which are being driven by Lord Baker and Lord Adonis. Their vision is for new 14-to-19 apprentice schools, which will be led by employers and will be centres of excellence in manufacturing, building and engineering. That will be a conveyor belt to university and high-skilled jobs. The first round of UTCs will be announced this autumn, and Harlow college in my constituency has made a strong bid to be one of the first, specialising in building systems and the new internet media that are helping to grow our economy at the London TechHub. It is shame that the shadow Secretary of State did not mention UTCs and the advantages that they will bring.

As has been said, we must encourage the right climate for employers to create jobs. Like other hon. Members, I have employed an apprentice, and I am recruiting another one at the moment. However, one problem experienced by my apprentice is that universities did not give his NVQ the UCAS points that it deserved. Apprenticeships are much harder in many ways than A-levels, and we should recognise that in the UCAS system. Elsewhere in the Government there are initiatives to create a job-friendly climate, including the Work programme, lower taxes for lower earners, welfare reform, and cuts in small business tax and corporation tax. In the past few months, I have worked with the National Union of Students and major UK firms to launch a new apprentice card, which has received strong support from my hon. Friend the Minister for Further Education, Skills and Lifelong Learning. It will give apprentices the same financial benefits as those for A-level and university students.

I congratulate the hon. Member for Newcastle upon Tyne North (Catherine McKinnell) on her push for apprenticeships in public sector contracts. I urge the Government to implement that proposal, not just nationally but in local councils. I have called for that repeatedly, and I have discussed it with members of Essex council, which is taking a serious look at it.

The number of jobs available has been discussed, and I want to read something from a recent letter sent to me by Monster, the jobs company:

“In order to meet…challenges, we have identified that the problem lies, not with the availability of jobs, but the failure to match jobseekers to job vacancies.”

That is crucial: it is about information and changing the culture so that people know what jobs are available. We must make sure that the National Apprenticeship Service and other schemes work as they should. In the next few weeks, I will launch a parliamentary academy—some hon. Members will have received a letter from me about this—with Martin Bright and his charity New Deal of the Mind.

Youth unemployment is devastating, and if we can improve school and vocational training—

[Madam Deputy Speaker (Dawn Primarolo)]

Order.

[Several hon. Members]

rose—

[Madam Deputy Speaker]

Order. May I ask the remaining six Members who wish to speak—there were only five on my list—to resume their seats while I am speaking? We have to begin the winding-up speeches at 6.40 pm. Six Members stood up to speak, which means about four minutes each. That is the good news. The bad news is that if everyone takes longer than four minutes someone will fall off the end of the speakers list, and I am afraid that I cannot do anything about that.

--- Later in debate ---

[Robert Halfon (Harlow) (Con)]

On a point of order, Madam Deputy Speaker. I thought that this debate was about opportunities for the next generation, not Bombardier railways.

[Madam Deputy Speaker (Dawn Primarolo)]

Mr Halfon, I think that you will find that that is a matter for me, not you. The hon. Member for Derby North (Chris Williamson) will return to the debate.

[Chris Williamson]

I am trying to make the point that denying Bombardier the opportunity to fulfil this contract denies future generations the opportunity to enjoy long-term employment in the rail industry. This is a serious situation, because we face the prospect of losing the ability to build a train ever again in this country—the country that gave the world the railways. We will never again be able to build a train because of a decision that this Government have taken. The specifications of the invitation to tender were very clear that the successful bidder must have a proven solution. Siemens does not have a proven solution. It does not have a lightweight bogie. The tender goes on to state that it should be deliverable—

[Madam Deputy Speaker]

Order. Mr Williamson, I am sure that you are illustrating a point, as you said, and mean to address the topic of the debate in your short contribution, but it would be good if you talked about that topic, rather than the tender.

[Chris Williamson]

I am, Madam Deputy Speaker. I am merely pointing out that the Government have not fulfilled their obligations and are thereby denying opportunities for apprenticeships for building the lightweight bogies, the carriages that will run on the Thameslink line.

There are opportunities to terminate that contract. I will not go into the detail in case you call me to order, Madam Deputy Speaker, and because I want to finish my contribution shortly. However, I must refer to what the Prime Minister said when he brought his Cabinet to Derby in March. He said:

“The point of the Cabinet today is to ask one fundamental question: what is it that we can do in government to help the economy to rebalance, to grow and for businesses to start up, to invest and employ people?”

I say to the Prime Minister and to the Government that they should honour the commitment he gave to the people of Derby and of this country when he brought his Cabinet there. They should give young people in my city hope for a future in the rail industry, and give our country hope that we can continue to have a rail industry long into the future. If they do not do that, I fear that people in Derby, and across the country, will be denied for ever the opportunity to work building trains in the rail industry.