Oral Answers to Questions

David Rutley Excerpts

Tuesday 14th March 2017 Commons Chamber

[Greg Clark]

The aim of Government policy must be to have such vigorous competition in markets that that takes care of itself. Unfortunately, I do not think we are in that position, so I am determined to make sure that customers are treated fairly.

[David Rutley (Macclesfield) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

As well as continuing the consultation on our industrial strategy Green Paper, we are acting on its diagnosis. Last week’s Budget set out our plan to transform technical education—increasing the hours students are taught by 50%, increasing funding for technical education by £500 million a year and establishing new institutes of technology. We announced in the Budget the first £270 million of projects under the industrial strategy challenge fund, including a world-leading investment in the development, design and manufacture of batteries to power the next generation of electric vehicles, and we announced a £100 million fellowship fund to attract the world’s brightest minds to come and work in the United Kingdom.

[David Rutley]

I am pleased that my right hon. Friend is planning to visit AstraZeneca’s Macclesfield site, the largest pharmaceutical site in the United Kingdom, in the near future. Will he tell the House what plans the Government have to support the life sciences further as part of its northern powerhouse strategy?

[Greg Clark]

My hon. Friend, who is a great champion of the life sciences as well as of the Cheshire economy, knows that the opportunity to negotiate a sector deal for life sciences, which is being led by Sir John Bell, will be good for the whole country, but will have particular relevance to Cheshire and Macclesfield. I am looking forward to visiting his constituency to see the facilities for myself.

Opel/Vauxhall: Sale to PSA Group

David Rutley Excerpts

Monday 6th March 2017 Commons Chamber

[Greg Clark]

I will indeed. I will work with any hon. Member who has an interest in securing the future of this company and others in our economy. The hon. Gentleman is absolutely right. The fact that plants will be judged, as they tend to be in the automotive sector for new models, on the basis of competitive efficiency is a strength for us in this country, because our automotive plants are the strongest in the world. I would rather we competed on efficiency. I will work, through the Automotive Council and our industrial strategy, to ensure that all the competitive elements that have been so successful to date will continue and increase.

[David Rutley (Macclesfield) (Con)]

Like my right hon. Friend and other Cheshire Members, I want to ensure that the renaissance we have seen in the automotive sector in recent years continues for decades to come. Will my right hon. Friend tell the House what steps he will take to improve technical skills and apprenticeships to ensure that automotive manufacturers in Cheshire and elsewhere in the north-west get the support they need in the years ahead?

[Greg Clark]

My hon. Friend is absolutely right. I pay tribute again to the workforce in both plants and in Vauxhall’s other operations in this country. They are efficient and highly committed, and they have been very flexible. As technology changes, we need to keep their skills up to date. The automotive sector is aware of that and is working with the Government on institutions to train not just apprentices, but other people in the industry. That will have my full-hearted commitment.

Vauxhall/Opel: Proposed Takeover

David Rutley Excerpts

Monday 20th February 2017 Commons Chamber

[Greg Clark]

Indeed. I am not sure that the hon. Lady, in speaking from her Front Bench, is in the best position to talk about that. She made some important points, however. She mentioned the fact that the French Government own a significant stake in PSA. That is why I felt it was important immediately to have a meeting with my French counterpart. That meeting was very constructive, and he recognised the importance of ensuring that the whole of Europe should be treated fairly in these discussions. We agreed to stay in close touch on that, and I was grateful to him for seeing me.

On the treatment of plants across Europe, one of the points that the PSA executives made to me is that, since the new management of PSA has been in place, they have taken pride in the fact that part of their strategy is not to close plants. The discussions are clearly continuing and no deal has been done, but I share the view of the hon. Lady, the hon. Member for Ellesmere Port and Neston (Justin Madders) and Members on both sides of the House: it is very important that our successful enterprises with successful workforces should be able to continue that success in the future.

As for questions about the European Union, many of GM’s operations in Europe are in Germany, which is not about to leave the European Union, so this is not a Brexit-related transaction. I have said very clearly that our commitment, evidenced in black and white in our industrial strategy, is to build on our strengths in advanced manufacturing, including in the automotive sector. That is available to all players in the sector through the Automotive Council, and in our industrial strategy we mention electric vehicles, battery storage and training, which are important to all members of the sector and, as I began by saying, have attracted enthusiastic support from firms all over the world.

[David Rutley (Macclesfield) (Con)]

I welcome my right hon. Friend’s characteristically speedy response to this new situation. Can he confirm that the UK automotive sector is not only integral and important to our industrial strategy but will play a vital role in shaping our future trade relationship with EU member states post-Brexit?

[Greg Clark]

I agree with my hon. Friend. One of the strengths of our automotive sector is that it is particularly international. It benefits from and is strengthened by trade to and from not only the rest of Europe but the whole world. Vauxhall’s being owned by GM for such a long time is a reflection of the fact that the motor industry has long been international beyond Europe. The industry will be very prominent in our discussions.

Industrial Strategy Consultation

David Rutley Excerpts

Monday 23rd January 2017 Commons Chamber

[Greg Clark]

I do not recognise the issue that the hon. Gentleman mentions, but if he speaks to me later, I will be able to find out more about it. I am grateful for his welcome to our approach. I argue strongly that it builds on some of the successes we have enjoyed in recent years, not least by devolving powers and funds to local areas and looking to create institutions that can conduct research and development that now has a worldwide reputation. However, we cannot be complacent; we need to continue that and build on it in the future.

[David Rutley (Macclesfield) (Con)]

I congratulate my right hon. Friend on his impressive industrial strategy, which works hand in glove with the Government’s Brexit plans to strengthen business confidence further. The new strategy also underpins the Government’s commitment to the life sciences. With that in mind, will my right hon. Friend accept an invitation to come to Macclesfield to see AstraZeneca’s site—the largest pharmaceutical site in the UK—to find out more about its exciting growth plans for the future?

[Greg Clark]

I will, indeed. Talking about the life sciences in the north-west touches on one of the themes of the Green Paper, which is the interaction between sectors and places, and how we can build institutions that can encourage smaller businesses to benefit from the presence of a range of other businesses in that sector. We have further work to do, and my hon. Friend will be expert adviser on it.

Exiting the EU: Science and Research

David Rutley Excerpts

Monday 19th December 2016 Commons Chamber

[Joseph Johnson]

The hon. Gentleman makes an important point. That is why the Government have, in various announcements, given assurances to UK institutions and institutions across the European Union that we remain full members of the European Union and that we are eligible to lead European bids and to compete successfully in bids for funding streams. We continue to do so and we want institutions such as that which the hon. Gentleman represents in Edinburgh to continue to be as successful as they have been in the past.

This Government recognise that our world-leading science and research must be at the very heart of our industrial strategy, and we are matching rhetoric with resources. At the autumn statement, the Chancellor announced an additional £2 billion a year for R and D by 2021. That is the single biggest uplift in research and innovation spending in decades and it is an opportunity for us to make Britain, in the Prime Minister’s words, the

“global go-to place for scientists, innovators and tech investors”.

[David Rutley (Macclesfield) (Con)]

My hon. Friend is making an important point. Does he agree that that investment and commitment also builds business confidence? This week, AstraZeneca opened a £120 million investment site, which demonstrates its commitment to the UK economy because of the support that he rightly highlights.

[Joseph Johnson]

My hon. Friend is exactly right. It certainly boosts not only the confidence of our research communities, but that of the business community, which sees that we are putting innovation at the very heart of our industrial strategy. For every pound of public investment in research, we get back more than £7 of net economic benefit, both at local and national level. When we invest in research, we invest in our wider prosperity.

--- Later in debate ---

[David Rutley (Macclesfield) (Con)]

It is an honour to speak in this debate and to follow the hon. Member for Richmond Park (Sarah Olney), who gave an exceptional maiden speech. Although she is no longer in her place, I wish her well in her future endeavours in this House and in serving her constituents. It took me back to my maiden speech; I spoke on the same day as my right hon. Friend the Member for Loughborough (Nicky Morgan). We both talked on science, and I congratulate her on the great work she has done since in helping to boost skills in that vital area.

I am delighted to speak on this subject. Science is a vital field, especially at this time of significant change and great uncertainty. Brexit is not something that we should fear. The fundamentals of our economy are good. Indeed, forecasts indicate that our growth will be stronger than that of Germany and France again next year. We should look forward with confidence as we navigate our way forward and realise the opportunities that lie ahead.

We must use Brexit as a spur and a call to action in addressing long-standing challenges that have been a drag on our economy for too long, including the skills gap and below-par productivity. Science and technology have a vital role to play here, as I am sure colleagues across the House will agree.

The advanced therapies manufacturing action plan from the Medicines Manufacturing Industry Partnership—both snappy titles—says that, as part of leaving the EU,

“it is vital that the UK makes all efforts to retain and continue to improve its fiscal offering in order to secure investments and anchor infrastructure in the UK and give confidence to investors.”

That is why I join the Select Committee on Science and Technology in welcoming the Government’s funding guarantee relating to the EU science projects that we have talked about at length in this debate.

I also pay tribute to the Chancellor of the Exchequer, because he gets this: he understands how important it is that we build investor confidence and back innovation-led productivity and infrastructure. I welcome the £2 billion a year he announced in the autumn statement; it will be vital to science and innovation. It is an important step and hugely welcomed.

But this is not just about funding. Colleagues have spoken about the importance of collaboration. It is critical that we maintain relationships with European and other international partners and build our commitment to collaborations, not least of which is a science project that is vital to our area, the square kilometre array project at the Jodrell Bank observatory. This project will result in the creation of the world’s largest radio telescope. We must continue to be ambitious in backing world-leading scientific initiatives; that must be a clear priority.

That is why I welcome the Prime Minister’s demand and ambition for a modern industrial strategy that puts a clear value on science. She was right to say, in a speech in Birmingham during her campaign for the leadership of the Conservative party:

“It is hard to think of an industry of greater strategic importance to Britain than its pharmaceutical industry, and AstraZeneca is one of the jewels in its crown.”

AstraZeneca has a hugely significant presence in Macclesfield. The Prime Minister also gets this. She has learned lessons from Germany and Australia, which are setting out clear industrial strategies. We now need to do the same. We must not seek to pick winners; we must seek to create the conditions that will enable winners to emerge without being picked. There is a fundamental difference. I think we are well placed to do that.

When we consider our industrial strategy, it is clear that science and the life sciences have a role to play, particularly given their huge impact not only on job creation—there are 62,000 jobs in the life sciences—but in productivity per employee, which is critical, with £330,000 of gross value added per employee. That is staggering, and we must get behind this industry and other scientific endeavours to ensure that we realise all the available productivity improvements. It is also critical, as we all know in this House, that we tackle the productivity gaps that have plagued us for too long.

Here are some of the asks that I want to put to Ministers. Will they please continue to take action on the infrastructure that will be vital in underpinning our economic performance, not just on HS2 but on trans-Pennine links to unlock the potential in the north? Will they take action on skills and drive up the quality of apprenticeships? I am pleased that the Department for Education’s post-16 skills plan has an emphasis on health and sciences, as this will be crucial. I also urge Ministers to speed up the adoption of new medical treatments by implementing the accelerated access review. I was delighted to read what the Health Secretary said about this in his recent article in The Daily Telegraph. It will be vital for life sciences and for improving patient outcomes.

We need to see more being done in the north. We talk a lot about the golden triangle of Oxford, Cambridge and London, but important clusters are being developed in the north as well, not least in the life sciences corridor in Cheshire that links into the university city of Manchester. That will be key for the northern powerhouse. We will need to expand the network of catapult centres, and I am delighted that such a centre is being launched in the form of the medicines technology catapult at Alderley Park. We also need to have the anti-microbial resistance centre located there. As we do these things, we will build confidence in business. I have already mentioned AstraZeneca’s investment in Macclesfield, which has been most welcome.

[Dr Mathias]

Does my hon. Friend agree that some of the EU regulations on phase 1 clinical trials have not been helpful, and that there will be opportunities in that regard in the future?

[David Rutley]

Absolutely. We need to seize those opportunities and get behind science and the life sciences.

Looking at local examples, we have seen 600 jobs being created in just a couple of years at Alderley Park following AstraZeneca’s decision to relocate to Cambridge. Those jobs are highly important for the north. But this is not just about the life sciences. I have already talked about Jodrell Bank, and I very much hope that Ministers will support my drive to have it nominated as a world heritage site. That will be key in celebrating the science heritage of that site, which will be important for the north and for the visitor economy.

I also welcome the fact that the Government are re-examining their excellent work on research and development tax credits and allowances. This has helped to underline the importance of science and to show that the UK economy is open for business. I am pleased that the Chancellor has indicated that there will be a review of the tax environment to ensure that we can build on the introduction of above-the-line tax credits to make us even more competitive.

I cannot match the Christmas closing lines of the Chair of the Select Committee, my hon. Friend the Member for South Basildon and East Thurrock (Stephen Metcalfe), but I will echo the words of one of my constituents in one of the great Christmas jingles: it is time for us now to look to the future; it’s only just begun.

Corporate Governance

David Rutley Excerpts

1st reading: House of Commons
Tuesday 29th November 2016 Commons Chamber

[Greg Clark]

The hon. Gentleman makes an important point. Outside of family and education, work offers some of the principal opportunities for progress and making use of people’s talents. The best businesses recognise that spotting and promoting talent is a sure way to corporate success. That is not part of the consultation, but he makes a reasonable point and will have the opportunity to respond to the section that asks whether other areas should be considered.

[David Rutley (Macclesfield) (Con)]

I welcome today’s statement. At a time of uncertainty, it is vital that we have greater confidence not only in free enterprise as a principle, but in the listed businesses and privately held companies that operate in our free market. What support has my right hon. Friend received from the business community in favour of the Green Paper, in particular the concept of greater shareholder scrutiny of a company’s activities?

[Greg Clark]

Business wants to enhance its reputation and it is much in its interest collectively to do so. This morning, the Institute of Directors, the CBI and the Investment Association, which represents those who invest the funds that the pension funds of ordinary working people put into British business, all welcomed not only the content, but the approach that is being taken. I am pleased and grateful for that support.

Oral Answers to Questions

David Rutley Excerpts

Tuesday 8th November 2016 Commons Chamber

[Mr Hurd]

The hon. Lady makes an extremely important point about the funding for science research and innovation in this country. I think that she recognises that the science research budget has been protected in real terms, which is an extremely important commitment. We understand fully the concerns of the science community, which have been expressed to us clearly. Again, it is our responsibility to engage with those concerns and represent them. I can assure her that it is clear to us that science research and innovation is at the heart of our industrial strategy.

[David Rutley (Macclesfield) (Con)]

The Cheshire science corridor, which includes Alderley Park, the AstraZeneca site in Macclesfield and Daresbury, is strongly supported by the Cheshire and Warrington local enterprise partnership. Can my hon. Friend confirm that the Government support that key initiative and that life sciences will be a vital part of the northern powerhouse?

[Mr Hurd]

I congratulate my hon. Friend on the leadership he has shown in championing that agenda. He will know from his conversations with the former Life Sciences Minister and the current Secretary of State, who is committed to the agenda, that that remains very important to the Government.