Office for Students

Barry Sheerman Excerpts

Tuesday 27th February 2018 Commons Chamber

[Mr Gyimah]

The right hon. Gentleman is someone who likes to have perspective and a balanced view on things, and he will know that Toby Young also set up a free school mainly to give disadvantaged people in some of the poorest parts of our country the excellent education they deserve so that they can improve their prospects in life. Yes, there are issues here that are questionable, but we always need a sense of perspective when we consider such things. Some of the things that Toby Young did are admirable and laudable, and those are the reasons why he was considered to be a serious candidate for the job.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

I beg the Minister to stick to the point. We do not live in some Soviet or Putin-style kleptocracy; we are supposed to be living in a modern parliamentary democracy in which public appointments are done properly, with scrutiny and transparency. That certainly has not been the case with this appointment, and it certainly was not the case the other day when the proposed chair of the Charity Commission was unanimously rejected by the Select Committee on Digital, Culture, Media and Sport. Why cannot the Government get this right?

[Mr Gyimah]

It is precisely because we live in a well-functioning democracy that we are here and you—not you, Mr Speaker, but the hon. Gentleman—can ask those questions. For perspective, there were 15 appointments to the board. There are question marks, quite rightly, over the appointment of Toby Young and the process for the student representative, but 15 candidates were appointed to the board.

Oral Answers to Questions

Barry Sheerman Excerpts

Tuesday 30th January 2018 Commons Chamber

[Mr Gyimah]

My hon. Friend is absolutely right. We are committed to supporting businesses in Mansfield through the D2N2 Growth Hub. Since its launch, it has engaged more than 5,100 businesses. He mentions young people in his constituency. The message from this Government is that we will support those who think university is the best route towards building the future they want and that we will also support those for whom apprenticeships or a non-university route is the best route. We do not want to put a limit on aspiration, whatever that aspiration may be.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

I know that the Minister is new in his post, but he needs to wake up, for goodness’ sake. There is chaos and meltdown in the apprenticeship scheme, with a 62% drop in apprenticeship starts and further education colleges in bankruptcy. Small individual employers in the textile industry cannot get their apprenticeships through. Get a move on—do something about it, man!

[Mr Gyimah]

I welcome the characteristic passion with which the hon. Gentleman delivers his question, and I share his objective in that we both want the best future for young people. As he knows, the apprenticeship system is going through a change. It will now be employer-led with a focus on quality. We are in the first year of the levy operating and we did expect a bit of a dip, but this situation will recover to deliver the future for our young people.

Oral Answers to Questions

Barry Sheerman Excerpts

Tuesday 12th December 2017 Commons Chamber

[Greg Clark]

I will indeed. The industrial strategy makes it clear that being at the forefront of the regulatory standards for these new technologies gives us a big advantage. The Automated and Electric Vehicles Bill, which is currently before Parliament, is intended to establish—before most other countries—the right regulatory standards, so that we can make progress with those technologies.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

The Secretary of State knows that no assessment of the impact of Brexit on the sector has been carried out by anyone, apart from the RAND Corporation, which told us this morning that this and every other sector will be deeply harmed by Brexit. What does he say in response to that important and thorough investigation?

[Greg Clark]

I think the hon. Gentleman knows that I have continuous discussions with all the sectors for which I am responsible, including the automotive sector. They lead me to make sure that, as part of our negotiating mandate, we get the best possible deal. The agreement achieved in Brussels last week, including the transitional phase, had been pressed for by the automotive sector in particular.

Student Loans Company

Barry Sheerman Excerpts

Monday 20th November 2017 Commons Chamber

[Mr Speaker]

The Minister is not known as a considerable boffin for nothing.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

The Minister mentioned denigration, but no Opposition Member would denigrate the Student Loans Company. In fact, the SLC has offered a good service to many students and parents. If we compare it with our commercial banking sector, in which so many people should have gone to prison, the SLC has done very well indeed. Is there some secret agenda here? This Government are about to sell off £4 billion of student loans, and who is leading that consortium? It is British banks led by Barclays.

[Joseph Johnson]

I thank the hon. Gentleman for acknowledging the good work that the SLC does—it is important that we all recognise that. The sale of the student loan book is a policy that the previous Labour Government made possible following the passage of the Sale of Student Loans Act 2008, so there is considerable cross-party recognition of the importance of ensuring the sustainability of our public finances. The sale of the student loan book, which was made possible by the previous Labour Government, is something that this Government are quite prepared to continue.

Oral Answers to Questions

Barry Sheerman Excerpts

Tuesday 7th November 2017 Commons Chamber

[Greg Clark]

My hon. Friend is absolutely right that the choice that some of the world’s best motor manufacturers make to locate in the cluster reinforces our reputation. Last year, we launched the Aylesbury Vale enterprise zone, which supports the Silverstone high-performance technology cluster. It provides an environment that is helping to deliver new jobs in this sector. The local growth fund for his area includes an innovation centre, which is geared to automotive technology in the enterprise zone.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

I urge the Secretary of State to say something to leading engineering businesses and the University of Huddersfield where we are doing a lot of research on autonomous vehicles, because they might have listened to “Today” on Radio 4 this morning and heard another Secretary of State using a mysterious kind of language. He was talking about “a new post-Brexit trade policy” and “a new trade remedies body”—what is a new trade remedies body?

[Mr Speaker]

I do not care what a new trade remedies body is. All I am concerned about is autonomous vehicles—electric or otherwise. Let us hear about the matter.

Draft Electricity Capacity (Amendment) Regulations 2017

Barry Sheerman Excerpts

Thursday 19th October 2017 General Committees

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

I beg to move,

That the Committee has considered the draft Electricity Capacity (Amendment) Regulations 2017.

It is a great pleasure to serve under your chairmanship, Mr Davies, and to see the shadow Minister, the hon. Member for Southampton, Test. The Opposition Whip and I were texting him, but I knew he would be here. I am sure I will face a reasoned and thought-out speech, which we Ministers do not like, but which will be a pleasure to hear in his case.

The draft regulations will amend two secondary legislation packages for the capacity market. The powers to make and implement the secondary legislation are found in the Energy Act 2013, which received Royal Assent in December 2013 with, I am pleased to say, cross-party support following scrutiny in the House and the other place. I will explain the changes in detail, but first, for hon. Members who are less familiar with the capacity market, I will explain it in terms as I understand them.

The capacity market is an insurance policy to ensure that the necessary supply is always available. The money is used to ensure that power is available as demand from the grid goes up and down, perhaps because a particularly interesting horse race or an episode of “EastEnders” is on the television, or more typically because of a good cold snap—or a bad cold snap, depending on how one looks at it. In many cases, suppliers are paid when supply is not needed, but the market has allowed us to have a consistent and readily available source of capacity for all contingencies. That main purpose received cross-party support. It is for Members on both sides and for the Government to secure that capacity, and they have done it pretty well.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

This stuff will be quite difficult to digest not just for the Committee but for our constituents, who have to pay a hell of a lot of money for their electricity. I hope the Minister will go into some detail about risk finance schemes and applicant credit cover, because I cannot go back to my constituents in Huddersfield, who are highly intelligent people, without an explanation.

[Richard Harrington]

I agree with the hon. Gentleman’s analysis of the good burghers of Huddersfield, because I come from Leeds—

[Mr Sheerman]

We tend to look down on Leeds.

[Richard Harrington]

I could not possibly comment, but we are all Yorkshiremen, including you, Mr Davies—not that that would affect your chairing of the Committee.

From memory, the actual cost of the capacity for our constituents is about £2 a year on their bill. I am not making light of it, but for what we get from it as a country and for what suppliers get for their customers, I think it is good value for money. There have been power cuts in other countries—even in quite developed places such as California and Australia—where they did not have such a sophisticated system, so there is a risk. When I said it was for hon. Members on both sides to ensure capacity, I did not mean just members of this Committee; the whole of Parliament in 2013 realised that this was a good thing to do.

I will go into more detail, and if the hon. Gentleman then feels that I have not answered his questions I will be able to do so—it will be nearer lunch time, and he may feel that I have covered most of it.

[Richard Harrington]

I agree, as I think most other people would, because generally the system works. To use the layman’s language I always use—being a Yorkshireman, I try to simplify things in a way so that I understand them; I cannot claim to have the technical expertise of the shadow Minister on this—the regulations propose a tweaking of something that works, rather than radical and complete change. I will make some progress, and if hon. Members would like to ask questions or intervene, they should obviously do so, subject to your largesse, Mr Davies.

The five changes in the draft instrument are essentially technical. They will improve fairness, ensure the competitiveness of auctions and provide important clarifications to scheme operations. The Department held a fairly lengthy public consultation on the changes and the majority of respondents agreed with them—more than 75%. I agree that it is important that people know how much the market costs, but if we did not have a capacity market and every individual had the choice of paying £2 or x pounds to make sure they do not have blackout periods, I am sure that most people would probably pay it anyway. It is not like that, but thinking about it in terms of what it means to customers and our constituents is right, as the hon. Member for Huddersfield mentioned. All the technical stuff we are here to discuss does not matter if in the end it boils down to continuity of supply at that price. He was absolutely right to mention that, as was my right hon. and learned Friend the Member for North East Hertfordshire.

We have the capacity market to ensure—as is the Government’s job—that we always have sufficient electricity capacity in Britain for the winter periods and for periods of exceptional demand. We need to give generators the confidence that they will receive the revenues they need to maintain, upgrade and refurbish their existing plants, and to finance and build new plants to come on stream as and when existing assets retire. They have to think ahead, and knowing that they are going to get these funds is part of their planning.

The capacity market also ensures that those who are able to shift demand for electricity away from periods of greater scarcity, without detriment to themselves and the wider economy, are incentivised to do so. It does so by offering capacity providers who are successful in these competitive auctions—there are two types; some bid for one year ahead and some for four years ahead—a steady, predictable revenue stream on which they can base their future investments. In return for those capacity payments, providers must meet their obligations to deliver electricity at times of system stress, or not deliver it if it is not needed, or face penalties.

[Mr Sheerman]

On the longer four-year period, we have a rapidly changing energy market, and many of us are delighted with the diversity of more sustainable energy providers coming on and providing a lot of our energy needs. Will the four-year period allow us to have that more flexible, diverse energy market?

[Richard Harrington]

That is a valid question, as I would expect from the hon. Gentleman. Having both four years and one year takes care of that. Four years is needed because of the investment cycle; suppliers have to plan and have some consistency. Things change a lot, and there is a lot of uncertainty when predicting four years ahead.

[Mr Sheerman]

There might be an election.

[Richard Harrington]

I believe that is extremely unlikely, but we all have our views on that subject; certainly, if this measure is voted down today, I am sure the Prime Minister will have no choice. In all seriousness, the hon. Gentleman makes a valid point, but if it were left only to the shorter, one-year cycle, I cannot see people taking the kind of investment decisions needed. Of course, it is arguable—some might say they want 10 years. When the rest of the electricity supply market—not the capacity market but the normal supply market—starts to build huge wind turbine farms and gets planning permission to build nuclear power stations and all those other things, those are all judged on 20 to 30-year cycles, so it is difficult.

The officials think that four years and one year are right, but it is always up for review, and if the market changed completely we would want the flexibility to be able to act. For the moment, it works. It sounds arrogant for Government to say it, but I think most people think the capacity market is working. Self-evidently, it is working.

Higher Education Funding

Barry Sheerman Excerpts

Wednesday 11th October 2017 Commons Chamber

[Joseph Johnson]

I can certainly assure my right hon. and learned Friend that we will continue to bear in mind carefully the taxpayer interest. It is critical to remember that the Labour party’s proposals, were they to be funded out of income taxation, would add about 2.5p to the basic rate of income tax, so it is vital that we bear taxpayers’ interests in mind and we will continue to do so. He mentioned the interest rate, which we of course keep under careful review. It is worth remembering that this is a heavily subsidised loan product overall. The Government write off about 30% to 40% of the student loan book. That is a deliberate investment in the skills base of this country, not a symptom of a broken student finance system. The interest rate cannot be looked at in isolation.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Surely the Minister needs to go back to the Dearing principles. Dearing believed that the expansion of higher education should be based on the student who benefits paying the community through the taxpayer, society and the employer. Can we go back to those principles? I am worried that the Minister and the Prime Minister have already made up their minds about the review they are suggesting. The fact of the matter is that we cannot have a higher education system that is created entirely on a pile of student debt. It is time, cross-party, to think about a radical alternative to what we have at the moment.

[Joseph Johnson]

The Labour party helped to introduce the system we have today and this Government have been building on it since 2010. It is extraordinarily successful at enabling more people from disadvantaged backgrounds to get a chance to benefit from higher education. I am startled that the Labour party wants to roll back all that progress. Why would they want to reverse the changes that have enabled more than 50% more students from disadvantaged backgrounds to get into higher education? That is what the hon. Gentleman’s proposals would end up achieving.

Oral Answers to Questions

Barry Sheerman Excerpts

Tuesday 12th September 2017 Commons Chamber

[Joseph Johnson]

My hon. Friend has great expertise in this area, through his association with the parliamentary space committee. I can reassure him, as I did a moment ago, that we are committed to continuing to collaborate closely with European countries to develop our space sector to the benefit of all those in employment in this sector in this country.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

The Minister probably knows that precision engineering companies in Huddersfield are very much involved in the Mars probes and the space programme, but does he know that they are increasingly worried, as is the University of Huddersfield, about the future of partnerships across Europe and the funding from Europe that makes that exploration and the existence of those cutting-edge companies possible?

[Joseph Johnson]

At the ESA ministerial council in December, the UK committed a record sum of €1.4 billion to ESA. We are committed to continuing to participate in ESA, which, as the hon. Gentleman knows, is not part of the EU but a separate organisation entirely. We see great value in continuing to participate in the programmes it administers.

Energy Price Cap

Barry Sheerman Excerpts

Monday 3rd July 2017 Commons Chamber

[Greg Clark]

My right hon. Friend makes an excellent point. We need to ensure that we meet our important climate change commitments at a competitive cost—for consumers and for businesses—and that we obtain the industrial benefits from having a supply chain in this country. That is exactly why we devote a chapter of the industrial strategy Green Paper to future plans to make the most of the clean energy transition in all respects.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Having seen the recent report, surely it is safe to say that wind and solar will be the future for low-cost energy, but there was a Duke Ellington song called “How long has this been going on?” The fact is that this has been going on too long—this exploitation of people who cannot avoid paying above the price. Is it not about time that we moved away from botched privatisation and inadequate regulation to an answer that puts money back in people’s pockets, rather than taking it out?

[Greg Clark]

In response to the first part of the hon. Gentleman’s question, I welcome, as he does, the huge progress that has been made not just in the deployment of renewables, but in the cost reductions that we have seen. That process has created jobs across the UK, especially in coastal towns. I had the pleasure of opening the Siemens wind blade factory in Hull, which created 1,000 good jobs. However, he is right that the detriment has been going on too long, which was why the Government asked the CMA to investigate the industry root and branch. It has identified £1.4 billion of detriment, and I have made it absolutely clear that that detriment needs to be returned to the pockets of consumers.

Oral Answers to Questions

Barry Sheerman Excerpts

Tuesday 27th June 2017 Commons Chamber

[Mr Speaker]

It all sounds very exciting, I must say.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Does the Minister ever worry that the country looks like investing £100 billion in High Speed 2, which will open at the earliest in 2033, but that, by that time, we will be able to use our phone to call to our home a driverless Uber-type vehicle powered by electricity that can take us anywhere in the country? Is that £100 billion not wasted money?

[Claire Perry]

I would define seeing you in an electric vehicle, Mr Speaker, as a success in my new role. We can have a conversation afterwards.

The hon. Gentleman will know that I think that upgrading our rail and road networks is one way to reduce congestion on the roads and to open up business opportunities and create potential new capacity for things such as electric rail freight, which has been severely neglected by successive Governments over many years. That is why we want to position ourselves not only as a leading manufacturer of electric vehicles—one in five electric vehicles sold in the EU are made in Britain—but as a hub for innovation. We are putting millions of pounds into innovation studies and research, to see how those new technologies can work together to ultimately achieve the aim of zero emissions by 2050.