Net Zero Emissions Target

Debate between Drew Hendry and Greg Clark

Wednesday 12th June 2019 Commons Chamber

[Greg Clark]

My hon. Friend makes an excellent point. One of our requirements, which has been recognised by the Committee on Climate Change, is our need to invest in the energy-intensive industries in particular, to improve their energy efficiency so that they can compete effectively and also to enable us to capture, store and, in some cases, use the carbon they generate. The commitment to carbon capture, use and storage is one of the steps we must take to meet those ambitions.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I thank the Secretary of State for advance sight of his statement. I also welcome the Minister for Energy and Clean Growth, the right hon. Member for Devizes (Claire Perry), back to the Chamber—although she is no longer present—and echo others in thanking the Committee on Climate Change for its work.

We welcome the statement. It is important that we all work together to address this challenge. We especially welcome the intention to follow the Scottish Government by including aviation and shipping in the targets, but why not have the ambition to match the Scottish Government’s emissions plan? In Scotland, the target date for zero net emissions is 2045 rather than 2050, and the carbon-neutral target date is 2040. So let us see if we can step up that ambition.

Even before the actions contained in Scotland’s climate change plan, actual emissions were down 3.3% between 2016 and 2017 and down to nearly half of the emissions levels of 1990. The Secretary of State’s Government must be more ambitious. The Committee on Climate Change said that this is “feasible and deliverable”, as was mentioned in the Secretary of State’s statement. Will he also accept the committee’s recommendation which agrees with the CBI on the National Infrastructure Commission’s call that in the 2020s we really need to push ahead with renewables to meet the 2050 target?

The Secretary of State said that he is taking these actions to

“tackle one of the greatest threats to humanity”,

yet the Committee on Climate Change, the National Infrastructure Commission and the CBI all say that investment in onshore wind and solar has stalled for political reasons. The CBI has said we should take the politics off the table for onshore wind, so will the Secretary of State drop the Tory ideological opposition to onshore wind?

Finally, there is another choice other than nuclear: carbon capture and storage utilisation. St Fergus near Aberdeen could be operational quickly, by 2023 with the right investment and commitment. At minimum it could capture 5.7 gigatons, equivalent to 150 years-worth of all of Scotland’s 2016 gas emissions, so will the Secretary of State reverse the betrayal over Peterhead and that carbon capture programme being withdrawn and commit to investing in St Fergus, to deliver these benefits, not only for Scotland but for the UK and the rest of the planet?

[Greg Clark]

I am grateful to the hon. Gentleman. He seemed to be welcoming the committee’s report but criticising the Government for not agreeing with its recommendation to set a date of 2045 for Scotland and 2050 for the United Kingdom. That was its clear advice and we are following it. There were particular reasons, such as the greater potential for afforestation in Scotland, why it regarded a 2045 target as appropriate. I hope the hon. Gentleman will not take it amiss when I agree with the first part of what he said—that we should follow the committee’s advice—rather than the second part, which is that we should then disagree with it.

On the points about carbon capture and storage, part of the opportunity and requirement for net zero is that it is possible to take carbon out of the atmosphere, especially from industrial processes, and of course Scotland and its industrial clusters will have an important part to play in that.

The hon. Gentleman mentions the National Infrastructure Commission, and again I welcome his respect for its expert analysis. We support what it says about increasing renewables. I hope that in the same spirit he will support its recommendation that we should have more new nuclear power—something he opposed. I do not want to be excessively partisan on an issue that I know from my discussions with the Scottish Government is a common commitment that we make to maintain and increase our ambition and at the same time create jobs in every part of the UK including Scotland.

Oral Answers to Questions

Debate between Drew Hendry and Greg Clark

Tuesday 12th February 2019 Commons Chamber

[Greg Clark]

I am delighted to say that we work closely with the Scottish Government and universities and businesses across Scotland. One example is the sector deals that we have struck, including the life sciences sector deal, in which Scotland is strong, which means investment going into Scottish institutions and creating good jobs now and in the future.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

A recent survey by Ernst & Young found that 92% of Scottish firms do not feel fully ready for Brexit. They are being left adrift by this Government. Given the calamitous collapse of the phantom deal for the ferry company with no ships—the Seaborne Freight fiasco—does the Secretary of State stick by his comment that the contract was “prudent and responsible”?

[Greg Clark]

The Secretary of State for Transport gave a statement on that yesterday and was clear that no Government money had been put into that. When it comes to building confidence for businesses in Scotland, which I hope the hon. Gentleman and I want to do, he will know that the way to allay businesses’ concerns is to ensure that we conclude an agreement. There is one that has the support of businesses in Scotland and across the country, and I hope his party will back it.

[Drew Hendry]

That answer is simply not good enough. Even the former head of the civil service, Bob Kerslake, said that the fiasco will

“just confirm the view of many that this country is in a mess”.

If the UK Government cannot put in place their own services, will the Secretary of State support the SNP’s demand for the Chancellor to use the spring statement to provide firms with the fiscal support they need to put in place their own measures to get them through this Tory Brexit mess?

[Greg Clark]

I am surprised that the hon. Gentleman would raise fiscal matters, when some of the fiscal decisions taken in Scotland recently have further diminished investors’ confidence. For Scotland to be the highest-taxed part of the United Kingdom is a terrible signal to not only workers but businesses.

Nissan in Sunderland

Debate between Drew Hendry and Greg Clark

Monday 4th February 2019 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I thank the Secretary of State for advance sight of his statement. I echo the sentiment that our thoughts should be with the workers at Nissan and elsewhere who are unsettled by this news.

The Secretary of State has put a brave face on this bad news. We all know that the issue of diesel and the change to petrol is part of it, as is the global review, but the cancellation of X-Trail has his Government’s handling of Brexit at its heart. Brexit, in itself, is bad enough, but it is being bungled beyond belief by a Government who have failed to listen to business. He talks about business wanting to back a deal, but he omits to say that they all say that any deal is worse than what we already have with the EU. Professor David Bailey, from Aston University, is an expert in the car industry, and he has pointed out:

“The Japanese carmakers came to the UK to access the single market”.

He went on to say that Brexit is

“a big shock for the Japanese producers.”

Nissan’s European chairman has been clear:

“The continued uncertainty around the UK’s future relationship with the EU is not helping companies like ours to plan for the future”.

Nissan’s decision shows that international investors have no faith in this Government’s assurances about the economic impact of the Prime Minister’s rotten Brexit deal. If Brexit uncertainty is too great for one of the world’s best resourced manufacturers, what hope is there for small and medium-sized businesses, which are the backbone of the economy? This Government’s continued failure can be demonstrated by the failure to top up the Tay Cities deal to support Michelin workers, so will the Secretary of State urge the Chancellor to make the spring statement a fiscal event that increases funds to support businesses impacted by Brexit? Will the Secretary of State, once and for all, rule out participation in the foolish game of failing to rule out no deal?

[Greg Clark]

First, let me remind the hon. Gentleman that a greater amount of financial investment is going into Sunderland than was anticipated in 2016; this is a long-term commitment that has been made by the firm. He should welcome that and reflect that the future jobs of those employed in Sunderland have been secured by that investment in the Qashqai. That is a welcome factor.

The hon. Gentleman is right to point out that the company has expressed an urgent concern that we should resolve the question of Brexit, but he is wrong to say that the deal the Prime Minister has negotiated does not command the positive confidence of the industry. I have talked about Nissan, but let me mention the head of Ford in Europe, who said:

“It’s important that we get the agreement ratified that’s on the table at the moment”.

The chief executive of Aston Martin has said that it is “obvious” that the deal that we see

“meets the needs of all the requests we put forward as an industry and as Aston Martin.”

Toyota has said that it welcomes the announced deal, which

“would provide business with the certainty of a transition period and help avoid the significant production disruption a ‘No Deal’ outcome would have for ‘Just in Time’ supply chains in the automotive industry.”

I share the hon. Gentleman’s view that we should bring the uncertainty to an end, but the only way to do that is by backing a deal, and I commend to him the deal that has the support of every one of the employers in the automotive sector that I have quoted to him today.

Oral Answers to Questions

Debate between Drew Hendry and Greg Clark

Tuesday 8th January 2019 Commons Chamber

[Greg Clark]

I completely understand the requirements of business, including the manufacturers the hon. Lady mentions. It is essential that we be able to continue to trade, which is why I have always been clear—representing very strongly the views of small business and large business—that no deal should not be contemplated, but the way to avoid no deal is to do what the motor manufacturers, the Institute of Directors, the Federation of Small Businesses, the British Chambers of Commerce and all the business organisations say we should do, which is vote for the agreement that will come before the House next week.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Lang may yer lum reek, Mr Speaker.

One way the Government are looking to maintain cross-border supply chains is by Government tender to shipping companies, but is the Secretary of State happy about the precedent set for UK businesses? His colleague the Secretary of State for Transport has awarded a £14 million contract to a company with negative assets of nearly £400,000, no ships and terms and conditions copied from a takeaway, while the contract itself seems to have been awarded on questionable legal grounds. Is this the standard he expects for all UK businesses tendering for UK Government contracts?

[Greg Clark]

It is evident that avoiding no deal is an essential task for all of us in the House, and I hope that in the days ahead the hon. Gentleman and other hon. Members will take the opportunity to obviate the need for those contingencies. The Secretary of State for Transport has an opportunity to come to the House later today, but it seems to me prudent and responsible for every Department to prepare, on a contingency basis, for no deal, while also being firmly resolved to avoid it.

[Drew Hendry]

The Secretary of State has not answered the question. Will all UK businesses see such largesse from the Government in respect of procurement contracts? One of Seaborne’s directors ran a business that went into liquidation owing HMRC nearly £600,000, using employee benefit trust tax avoidance schemes. According to the director, the Government did not even consider the money owed to Her Majesty’s Revenue and Customs to be relevant. Is that a sign of a Government who are out of control over Brexit?

[Greg Clark]

I hope the hon. Gentleman will agree that, as I have said, every Department should make preparations against the avoidable contingency of no deal. The Secretary of State will describe the procurement processes for which the Department for Transport opted, but it is fair to observe that not a penny of Government money has been paid to the company, and I understand that it will be paid only on receipt of services provided.

Good Work Plan

Debate between Drew Hendry and Greg Clark

Monday 17th December 2018 Commons Chamber

[Greg Clark]

My right hon. Friend, who is Chair of the Women and Equalities Committee, will be pleased to note that the package announced today is not the first or the only set of powers that will strengthen workers’ protections. The Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Rochester and Strood (Kelly Tolhurst), will respond shortly and enthusiastically to the recommendations made by my right hon. Friend the Member for Basingstoke (Mrs Miller), and I hope that she will welcome the further extension of protections for pregnant women.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I thank the Secretary of State for advance sight of the statement, which contained a couple of things to welcome. First, the Scottish National party has long called on the Government to repeal the Swedish derogation loophole and ensure that agency workers are protected and treated fairly. It is therefore welcome news that the Government are closing a loophole that has allowed unscrupulous employers to circumvent equal pay entitlements for far too long. Secondly, we are pleased to see an increase in fines for employers who breach workers’ rights, which has been long in the waiting.

However, there are measures that miss the mark or are missing completely from the statement. There is nothing to tackle zero-hours contracts, but perhaps the most disappointing of all is the absence of any meaningful action. It is extraordinary that this Government say that they have a good work plan and yet they utterly fail to tackle zero-hours contracts. The measures also do not address the damage done to workers’ rights by the regressive Trade Union Act 2016, which was designed to strike at the heart of trade unions’ abilities to organise and support workers. The SNP believes that a modern and progressive approach to industrial relations and trade unionism is at the heart of being able to achieve fair work.

The measures also do nothing to ensure that people are paid a real living wage. In addition to expecting people to work for less than a real living wage, this Government are presiding over a period of wage growth decline. Contrast that with the Scottish Government, who have got behind the real living wage accreditation scheme, which has led to over 1,000 employers now paying the real living wage, covering nearly 82% of workers in Scotland. The Secretary of State also failed to take any action to end the discrimination of young people in the labour market, which my hon. Friend the Member for Glasgow Central (Alison Thewliss) has long called for.

The statement does nothing to tackle unpaid work trial shifts. The Government call this a good work plan, but they still refuse to end the practice of unpaid trials, and the Unpaid Trial Work Periods (Prohibition) Bill of my hon. Friend the Member for Glasgow South (Stewart Malcolm McDonald) needs support. The measures also offer no protections for gig economy workers, but the Secretary of State could do that by supporting the progress of the Workers (Definition and Rights) Bill of my hon. Friend the Member for Glasgow South West (Chris Stephens), which would define the status of workers in the law. This Government should be doing much more work on workers’ rights, and they need to bring it forward.

[Greg Clark]

The hon. Gentleman will know that the Scottish Affairs Committee’s inquiry into the future of working practices in Scotland was warm in its endorsement of the Taylor report’s key recommendations that we are implementing today. I therefore hope that he will continue to support it.

The hon. Gentleman mentions zero-hours contracts, which were the subject of one of Matthew Taylor’s central pieces of analysis. On the basis of rigorous and extensive research across all parts of the United Kingdom, he concluded:

“To ban zero hours contracts in their totality would negatively impact many more people than it helped.”

If we commission an independent report that has authority and depth of research and it makes such a clear recommendation, we ought to act on it. That is what we are doing in our response. The hon. Gentleman also mentioned the national living wage, but he did not refer to the fact that 117,000 people in Scotland have gained over £2,750 since its introduction. However, I note of course that the Scottish Government’s decision to increase taxes on working people has meant that over a million Scots are actually receiving less in take-home pay than they otherwise might. If we are looking at the welfare of workers in Scotland, we need to look at what they pay in tax as well.

It gives me no pleasure to point out to the hon. Gentleman that Scotland under the SNP has had the slowest rate of job growth of all the nations and regions of the United Kingdom. Indeed, if Scotland had matched the UK’s rate of job growth, nearly 200,000 more Scots would have a job. It is right to build on Matthew Taylor’s analysis of how to build on the success while extending protections. I look forward to working with Derek Mackay and the Scottish Government, because many aspects of the report, such as education policy, are relevant to people’s ability to earn more. Through our industrial strategy, we will work together, but a little more humility from the hon. Gentleman in his criticisms might be appropriate.

Nuclear Power: Toshiba

Debate between Drew Hendry and Greg Clark

Monday 12th November 2018 Commons Chamber

[Greg Clark]

I pay tribute to my right hon. Friend for his important work in re-establishing the civil nuclear industry in this country. He is absolutely right: it is not just investment gaps that cause problems; we lose the ability to train workers in that industry, and we are having to restart training nuclear engineers. In previous statements to this House, I have said that we have accepted the recommendations of the Public Accounts Committee about looking at new models for financing new nuclear. It is right that we should do so, and in so doing we will proceed with deploying new nuclear power in this country.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

The Secretary of State should indeed have come to the House with a statement on this matter, because it demonstrates clearly that nuclear plants are not economically viable. Will this failure finally lead the UK Government to realise that they must scrap plans to set up new plants for the declining, dangerous nuclear sector? Will the Secretary of State now commit to ruling out increased subsidies to other nuclear developments?

With the inevitable impact on the UK’s ability to meet its carbon reduction targets, does the Secretary of State regret his Government’s decision three years ago to cut investment in green technologies vastly, for ideological reasons, including the infamous betrayal of the £1 billion Peterhead carbon capture and storage project? The latest failure of nuclear is yet more evidence that renewables, growing cheaper and more reliable, are the future of low-carbon energy. Will the Secretary of State now finally properly commit to investing in renewables, including carbon capture and storage, to avoid falling even further behind the rest of the world?

[Greg Clark]

There is no one more committed than I am to the role of renewables in decarbonising our electricity supply. In fact, I am proud that the UK has delivered the fastest rate of decarbonisation in the G20 in the last years. We have created more than 400,000 jobs —many of them in Scotland—in low-carbon businesses and the supply chain. Renewable capacity in this country has quadrupled since 2010, and 30% of our electricity comes from renewables. Our record on renewables stands comparison with that of anyone else in the world.

However, my belief is that we should have a mix of low-carbon energy sources, and it is important that we should have low-carbon power from nuclear as part of that mix. I am surprised that the hon. Gentleman does not recognise and pay tribute to Scotland’s proud nuclear tradition. Many people are employed now, and have been employed in the past, in nuclear—at Chapelcross, Dounreay, Hunterston and Torness. The former leader of the hon. Gentleman’s party actually wrote to EDF to request and support the extension of the life of Hunterston and Torness well into the 2020s, so that they could continue to provide those jobs and that power. The hon. Gentleman talks a different game from his party’s correspondence.

Oral Answers to Questions

Debate between Drew Hendry and Greg Clark

Tuesday 16th October 2018 Commons Chamber

[Greg Clark]

It would be disastrous. The value of exports from Scotland to the rest of the UK is £45.8 billion, compared with around £12.5 billion to the rest of the EU, so anyone who, like me, is interested in being able to trade without frictions should apply their own analysis to their own policy of pulling out of the UK.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Scotland’s financial sector has described the prospect of a no deal Brexit as “horrific”. Does the Secretary of State agree that to protect businesses and to stay in the single market and the customs union the resignations of the Secretary of State for Scotland and Ruth Davidson are a price well worth paying?

[Greg Clark]

I hope that the hon. Gentleman supports the Government’s determination to ensure that the integrity of the whole United Kingdom is guaranteed by the negotiation. He suggests that the consequences of no deal would be negative; of course they would. That is why we are doing everything we can, with increasing confidence, to secure a positive deal with the rest of the European Union. I hope he will support that.

Oral Answers to Questions

Debate between Drew Hendry and Greg Clark

Tuesday 17th July 2018 Commons Chamber

[Greg Clark]

The hon. Gentleman makes an excellent point. There is the opportunity, through the auctions that have been so successful, for expansions to come forward and be proposed, but he should also be aware that, given the leadership that we have in this area, we are also leading in replacing blades and turbines when they come to the ends of their life. That is a very important source of jobs that will be available to the exports markets around the world as well.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Offshore wind has an excellent strike price of £57.50 per megawatt-hour, yet this Government’s dogma will see consumers locked into paying £20 to £40 more per megawatt-hour for new nuclear. If that was not enough of a hit on family budgets, it has been reported that the Government will use the public purse to let Hitachi off the hook for the cost of any safety breaches at its Wylfa nuclear plant. Is it not time that this Tory Government ended their obsession with outdated, expensive and risky nuclear and put the public and consumers first?

[Greg Clark]

It is always necessary to have a diverse source of energy supplies, and nuclear has made and does make a big contribution to that: about 20% of our current electricity comes from nuclear. That is very important for households and businesses, including in Scotland. Every new project has to be assessed as value for money for the taxpayer and consumers and that will continue to be a criterion that will be rigorously imposed.

Energy Policy

Debate between Drew Hendry and Greg Clark

Monday 25th June 2018 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I thank the Secretary of State for advance sight of his statement.

Eighteen months ago, an independent review commissioned by the UK Government said that moving ahead with the Swansea Bay tidal lagoon would be a “no regrets policy”. Well, plenty of people are regretting this decision today. The Welsh Government were willing to put £200 million into the scheme if it went ahead. It was described as a world-leading opportunity to establish Wales as a centre for expertise and manufacturing, and a long-term source of low-carbon energy. This statement is, yet again, pulling the plug on a Tory promise.

In Scotland, we know how Wales feels. We witnessed the promised £1 billion for carbon capture and storage in Peterhead being pulled for no good reason, stunning both the public and the companies that had bought into the promise, surrendering the technological lead, and costing the taxpayer £100 million. Now it is back—it is flavour of the month—but, of course, grossly underfunded. Here we go again.

The Secretary of State hides behind the scale when making the comparison. He says that he cares about consumers, but this Government are happy to see bill payers paying through the nose for the calamitously bad deal that is Hinkley C. The Government’s disastrous deal with EDF on the strike price will see them pay at least £30 billion over 35 years. At a time when offshore wind strike prices are dropping dramatically, they seem to waste more and more on failing nuclear.

Will the Secretary of State confirm that this and other renewable support is being withdrawn in order to subsidise the likes of Hitachi’s Wylfa nuclear plant? That company has requested loans and guarantees of £12 billion, as per the secret negotiations. Will he admit that this is yet another mistake, and will he have the backbone to categorically rule out any other public bail-outs for failing, costly and desperate nuclear providers?

[Greg Clark]

The hon. Gentleman represents a country that has prospered from the development of the offshore wind industry. The truth is that if a decision had been taken to subsidise this proposal, that money would have come out of the budget for offshore wind, which would have led to job losses in Scotland and elsewhere around the United Kingdom. He mentions a proposed subsidy. The truth is that if a project that is not viable is subsidised by the taxpayer, it is simply a taxpayer-subsidised unviable project. That is no basis on which a project can be approved.

The hon. Gentleman refers to the nuclear power programme. If he regards the price agreed for the power from Hinkley Point C as too high, that is all the more reason for him to oppose this proposal, because it is so much costlier. He must accept that there is a responsibility for the use of consumers’ and taxpayers’ money that comes with being in office. When a proposal is so out of kilter with what can offer value for money, the necessary decision must be made, and he should respect that.

Leaving the EU: Airbus Risk Assessment

Debate between Drew Hendry and Greg Clark

Monday 25th June 2018 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Airbus’s risk assessment is sobering news for those drunk on the fantasies of Brexit. Airbus has forecast “severe disruption” and “interruption of production” in the UK, forcing it to switch investment planning away from the UK. Airbus says that this is not “Project Fear” but a dawning reality. The fact is that business after business is shouting, “Brace, brace.” At the heart of this is the lack of any plan or any sense over the customs union from this Government. This, coupled with no sign of any agreement over the EU-US open skies arrangement, means that Airbus is taking flight while the planes it already has in service could be stuck on the ground here.

The UK Government’s disastrous plan to leave the EU customs union and single market risks 80,000 jobs by 2030 in Scotland. Will the Secretary of State provide details about how the Government will protect 8,000 jobs and £541 million of activity in Scotland indirectly supported by Airbus? What technical discussions has he had with Airbus and sectoral organisations on the impact Brexit will have on the industry? In the light of this, what policy changes, if any, will he take forward?

[Greg Clark]

The hon. Gentleman talks about the impact of Brexit. It may have escaped his attention that we are negotiating the terms of our future economic partnership with the rest of the EU. The representations that have been made by Airbus—as I say, directed at the UK but also at other member states and the Commission —are about what that future economic partnership should look like. I hope there will be a broad consensus in the House that it should be a regime that allows fantastic sectors and companies within them to not only continue to export in a just-in-time system in which any delay at the border undermines the business model, but also to expand production in a rapidly expanding market, not just in Europe but around the world. That is what we are negotiating, and that is the context in which Airbus has given advice to us and the other side of the negotiations.

GKN

Debate between Drew Hendry and Greg Clark

Tuesday 24th April 2018 Commons Chamber

[Greg Clark]

Sanctions with regard to undertakings to the Takeover Panel are those for contempt of court, which include everything up to imprisonment.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I thank the Secretary of State for advance sight of his statement.

The Secretary of State mentioned holding Melrose to the spirit and letter of its commitments, but traders have been short selling £725 million, or 17%, of Melrose stock, effectively betting against it making a success of GKN. What action will he take if there is any breach of the spirit or letter of the commitments?

The Secretary of State did not cover jobs in his statement. I asked him following a previous statement to what extent he would require assurances to prevent assets from being stripped and jobs lost, and not just those in the MOD or national security. What assurances has he had on the financial restructuring involved in the takeover, which will mean more debt and less investment at the core of GKN? How will that situation progress the Government’s industrial strategy, and can he explain how allowing the takeover will protect the skilled jobs that we require and tackle productivity issues?

[Greg Clark]

I am grateful to the hon. Gentleman for his questions. He will know that one undertaking that has been given is a commitment to at least five years of research and development investment, including participation in the joint industry bodies, which have been a successful part of our arrangements in the aerospace and automotive sectors and are an important part of our industrial strategy. That is a valuable commitment that I would have thought the hon. Member for Salford and Eccles (Rebecca Long Bailey) and he would welcome.

The previous GKN management criticised the commitment to retain the aerospace business, saying that it should not have been entered into given that the sell-off of GKN’s automotive business had already been agreed to. It constitutes a longer-term commitment than was made during the latter period of the previous ownership.

The hon. Gentleman will understand that in obtaining commitments from a bidder, I have to bear in mind commitments that the incumbent management have or have not made. No commitments had been made on the total number of jobs, and indeed the sale programme involved a majority of the business. One of the features of today’s results announcement was that the debt of the previous business was higher than anticipated, and the plans that the new management have set out include paying it down.

Industrial Strategy

Debate between Drew Hendry and Greg Clark

Wednesday 18th April 2018 Commons Chamber

[Greg Clark]

The hon. Gentleman knows that I have a quasi-judicial role to exercise in response to certain takeovers, so I cannot comment on that particular case. I would say, however, that in technologies such as automotive and aerospace, there is a high degree of interest and, indeed, optimism about the future capabilities of companies right across those sectors and their supply chains. I mentioned marine engineering; aerospace and automotive are also examples of areas of British strength. The industrial strategy commits to build on that. My intention in implementing the industrial strategy is that our current strengths will be extended.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Earlier, the Secretary of State used the term, “this nation”. Does he accept that he has responsibility for growth in the economies of all the nations of the UK?

GKN: Proposed Takeover by Melrose

Debate between Drew Hendry and Greg Clark

Tuesday 27th March 2018 Commons Chamber

[Greg Clark]

It is important that we recognise the benefits and valued presence of GKN in many parts of the country. It is a pivotal UK engineering firm, with a long heritage. The commitment that I obtained from Melrose was for that to continue, and that is what it has set out, but it is for shareholders to judge the decisions that the future management may make.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I thank the Secretary of State for advance sight of his statement. He is right to seek undertakings at this stage, because the concerns are many and varied, including: taxpayers’ money being used in GKN’s programmes; defence contract concerns; and the location of GKN’s headquarters. Another concern is security of employment, as Melrose is not known for its hesitation in stripping out what it sees as unimportant to its aims. There are concerns about training, research and development, and the long-term security of sensitive intellectual property, and there are written concerns from the Pensions Regulator that the pensions of employees could be seriously weakened by the proposed takeover.

I understand from the Secretary of State’s statement that he will place Melrose’s response in the Library, but will he give the answers to my questions in the House today? Is he confident that the Melrose line of, “Buy, improve, sell” is not in actual fact likely to be, “Buy, strip and sell what is left”? What detail will he require to be satisfied of this, or is it, in Melrose’s words, to be done “in good faith”? If the Secretary of State for Defence is to receive assurance for his “serious concerns”, will he come to the House to confirm that he is happy with the answers given? Will the Secretary of State outline the mechanism by which Melrose will guarantee that jobs will not be shipped abroad, and that the pensions of GKN workers will be fully funded? Finally, will he assure the House that he will intervene if any of the questions asked about the many concerns that are left remain unanswered?

[Greg Clark]

I have set out in terms in my letter to Melrose and in my statement that, in many respects, the model of short-term ownership—especially for assets connected with defence purposes, in which long-term relationships are important—is in tension with the model of these industries. That is why I set that out, outside the statutory determination that I have to make. I suggested that the commitments that Melrose makes are legally binding. The takeover panel provides one mechanism for that, which I commend, but there are other ways in which the undertakings could be made legally binding.

The hon. Gentleman asked about the assessment of the Ministry of Defence. At the close of the bid—when all of the facts are known, including what has been said this morning—the Ministry of Defence and other agencies will make an assessment and advise me on whether there are grounds for an intervention in the interests of national security. I have made a commitment to this House that I will take that expert advice seriously and meticulously, and will make a decision when I have it before me.

On pensions, Melrose and GKN have been in discussion with the pension trustees and with the Pensions Regulator. It is for the Pensions Regulator to determine whether the arrangements are satisfactory for the interests of not just current, but future pensions.

Industrial Strategy

Debate between Drew Hendry and Greg Clark

Monday 27th November 2017 Commons Chamber

[Greg Clark]

My hon. Friend is absolutely right, and I am grateful for his question. One of the challenges is that we have is to make sure, right across the economy, that we are taking the opportunities to raise the productivity and performance of sectors in which many people are employed. The tourism and hospitality sectors are very important in that. They feature in the industrial strategy as two areas where it is particularly important to work together with firms big and small, as we are doing, to establish training institutions and spread technology so that we can raise their performance to compare with the strongest performance elsewhere in the economy.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I thank the Secretary of State for advance sight of the statement.

We welcome, finally, this overdue industrial strategy. We welcome also the recognition of the grand challenges of artificial intelligence, clean growth, future mobility, and the ageing society—all of which are very important to Scotland. It therefore says everything that there has been no consultation with the Scottish Government nor any attempt to match the Scottish Government’s economic plan, particularly given that the Scottish Government lead in life sciences. How will that working with the Scottish Government be taken forward?

This is not an outcomes-based approach such as we have seen working successfully in Scotland. A plan without knowing its destination is just a plan, and it does not guarantee success. If it did, it would answer the big question on skills. The Secretary of State said that there was no point in having short-term strategy, but it has been pointed out, in terms of the Budget, that the training and learning budget fell by 13.6% per person in real terms between 2007 and 2015. With the uncertainty over Brexit already affecting EU nationals, perhaps he could tell industries where the skills that will be required in the short to medium term will come from.

While we welcome the £7 billion, which is a very big number, for productivity, why, according to the Red Book, does it apparently not come into effect until 2022? Do we not need to address productivity now?

[Greg Clark]

I am grateful to the hon. Gentleman for his questions. Working together with the Scottish Government is very important. On some devolved matters, it makes sense for them to be joined up. Last week, I had the privilege of meeting Keith Brown, the Scottish Government Minister responsible for this area. When the hon. Gentleman gets a chance to read the paper, he will see that there is substantial reference to our close working with the Scottish Government. It is very important that we do that.

On skills, the hon. Gentleman is absolutely right. It is foundational that we should equip our people with the skills that they need to take on the jobs that are being created. He might have missed the fact that we have increased very substantially the number of hours that people are being taught in further education colleges, so as to raise them in line with the best in the world. That is a very important contribution to this.

On the extra investment that the Chancellor announced, the national productivity investment fund is to be further extended to 2022. That is why the figure that he announced was for that particular year.

International Investment

Debate between Drew Hendry and Greg Clark

Tuesday 17th October 2017 Commons Chamber

[Greg Clark]

I agree: it is a proud boast that we are the No. 3 nation in the world. We are by no means the biggest nation in the world, but to be No. 3 behind the US and China in terms of foreign direct investment is a real vote of confidence in this economy, and that is something I and my team and my colleagues across Government will always work hard to extend.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I am grateful to the right hon. Gentleman for an advance copy of his statement.

The Scottish National party supports measures that best protect our citizens and measures that relate to national security. However, it is not clear why these proposals have been brought forward now, so can the right hon. Gentleman tell us why now, and what the UK Government’s long-term strategy is?

We also believe it is vital that Parliament is fully involved in this process. Will the right hon. Gentleman confirm that that is the case?

Finally, on military technology, the UK Government must look to their own track record. Will the right hon. Gentleman confirm that the same degree of stringent oversight and scrutiny is to be applied to arms sales abroad?

[Greg Clark]

I am grateful to the hon. Gentleman for his questions, although I am surprised that he did not want to welcome the investment decision in Bombardier. In response to his—perfectly reasonable—question, “Why now?”, it is right to upgrade our systems for scrutiny periodically. A national security risk assessment was carried out recently, which correctly pointed out that smaller companies have the potential to pose a threat to national security, and these measures respond to that. We are publishing a Green Paper; Parliament is being invited to scrutinise it, as the essence of a Green Paper is that it is published for Parliament, as well as people in the outside world, to examine. On military technology and the scrutiny of arms sales, I think the hon. Gentleman should know that that is already subject to a licensing procedure.

Nuclear Safeguards Bill

Debate between Drew Hendry and Greg Clark

2nd reading: House of Commons
Monday 16th October 2017 Commons Chamber

[Drew Hendry]

No, I am going to make some progress.

As I have said, the UK does not currently have any reactors capable of producing such isotopes.

[Greg Clark]

Perhaps I can help the hon. Gentleman. Euratom places no restrictions whatsoever on the export of medical isotopes, and so there are no further protections needed. It is irrelevant.

[Drew Hendry]

I do not think that the Minister is reflecting the view of the experts in the industry who are affected, and I will come on to underline that with some quotes.

Euratom supports the secure and safe supply and use of medical radioisotopes. If and when the UK withdraws, it will no longer—this is the critical point—have access to Euratom’s support, ending the certainty of a seamless and continuing supply. The Royal College of Radiologists points out that the supply of radioisotopes would be disrupted by leaving the single market, because transport delays will reduce the amount of useful radioisotopes that can be successfully transported to their destination.

Oral Answers to Questions

Debate between Drew Hendry and Greg Clark

Tuesday 13th September 2016 Commons Chamber

[Greg Clark]

I have had extensive discussions with the steel industry over the summer, as my hon. Friend will understand. It is very important that we should have a sustainable future for what has been, and is, a very important sector in our economy.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

T9. The huge Hanjin Shipping line has gone into receivership, leaving between £12 billion and £16 billion-worth of goods at sea. The inability to dock is projected to have an impact on UK retail, particularly during Christmas trading. More importantly, UK seafarers—

[Drew Hendry]

Seafarers such as Scots cadets are stuck at sea. What action is the Minister taking to assist retailers, and will he speak to his Foreign and Commonwealth Office counterpart to get help for our seafarers?

[Greg Clark]

I will take that point away. On the immediate impact, I know that the local enterprise partnership is engaged in ensuring that the delays will be overcome.