Oral Answers to Questions

Diana Johnson Excerpts
Thursday 24th May 2012

(12 years, 6 months ago)

Commons Chamber
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Greg Clark Portrait Greg Clark
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If the allegations are correct, the companies will need assistance to cope. An investigation on that is about to conclude. I will take the matter forward with the hon. Gentleman and am happy to discuss it outside this place with his Front Benchers.

Diana Johnson Portrait Diana Johnson (Kingston upon Hull North) (Lab)
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10. If he will assess the commercial prospects of the caravan manufacturing industry in and around Hull.

Greg Clark Portrait The Minister of State, Department for Communities and Local Government (Greg Clark)
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The Government recognise the important contribution of caravan manufacturing to Hull and the importance of the caravan industry in other areas. I am aware of the concerns across the country about the effects of the proposed VAT changes. Although that is clearly a matter for the Treasury, as the hon. Lady understands, she will know that I, as Minister for cities, have a personal commitment to and interest in the future success of Hull. If she or other Members would find it helpful, I should be happy to visit Hull over the next few weeks to meet manufacturers.

Diana Johnson Portrait Diana Johnson
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If the coalition really is supportive of Hull and caravan manufacturing, can the Minister explain why the Treasury thinks that putting VAT at 20% on static caravans, which we know will result in a 30% drop in the market, less money going to the Treasury and 7,000 job losses across the country, will help manufacturing in my city?

Greg Clark Portrait Greg Clark
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As I think the hon. Lady knows—I also pay tribute to my hon. Friend the Member for Beverley and Holderness (Mr Stuart) and other Members across the House who have raised concerns about the impact of the proposal—the consultation has been extended. She and others have had meetings with Treasury Ministers and clearly made a forceful case, because the extension has been made. I know that Ministers are seriously considering this matter. I will be happy to meet her and manufacturers. I know the importance of the caravan industry; when I was growing up I spent my holidays in a static caravan on the north-east coast. I am keen to do what I can.