Industrial Strategy Debate

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Industrial Strategy

David Mowat Excerpts
Monday 10th September 2012

(12 years, 2 months ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

Each Urgent Question requires a Government Minister to give a response on the debate topic.

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Vince Cable Portrait Vince Cable
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I do not think there is any question of disloyalty; the public service has a set of different obligations in relation to procurement, one of which, of course, is to obtain value for money. Another is to observe the law, which we all have to follow. My colleague the previous Secretary of State for Transport worked closely with me in developing a more strategic approach to the procurement of trains, and we have begun to see that in the framing of the contracts that are now happening.

David Mowat Portrait David Mowat (Warrington South) (Con)
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The chief executive officer of Alcan UK has recently said that differentially high energy prices are a much bigger issue for his business than the eurozone crisis. Energy prices have not been discussed so far in this urgent question. Does the Secretary of State agree that it is hard to have an industrial strategy based on more manufacturing when our energy prices are potentially higher than those of our neighbours, such as France?

Vince Cable Portrait Vince Cable
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The hon. Gentleman is right that there is a real problem. That is why, in the last Budget, we agreed to proceed with a scheme that will effectively compensate energy-intensive producers, in the metals industry and elsewhere, for the relatively high cost of electricity that they face. We have been through a process of consultation, which has recently finished, on how that complex set of problems should be dealt with. We fully recognise the problem.