Department for Business, Innovation and Skills (Performance)

Gavin Williamson Excerpts

Wednesday 2nd February 2011 Commons Chamber

[Gavin Williamson (South Staffordshire) (Con)]

I share some of the incredulity of my hon. Friend the Member for Northampton South (Mr Binley) at Opposition Members’ apparent total denial of the fact that their party was greatly responsible for the catastrophic economic situation that it bequeathed the coalition Government.

I remember talking to a gentleman from a trade organisation who told me that the problem with the previous Government was that they were obsessed with presentation and constantly wanted to change the names of the Department, but did not consider the problems affecting business. I am shocked that a Department led by Lord Mandelson would be more interested in presentation, marketing and publicity than anything else.

[Mr Binley]

I am incredulous that my hon. Friend was surprised at that fact.

[Gavin Williamson]

I put it down to the naivety of youth. Hopefully age will make me wiser.

[Alison McGovern]

Will the hon. Gentleman therefore explain, for the benefit of the House, why one of the Government’s first acts was to change the name of the Department for Children, Schools and Families to the Department for Education?

--- Later in debate ---

[Gavin Williamson]

As hon. Members say, the name was changed to the Department for Education because that is what it is. I am very proud that the Department for Business, Innovation and Skills is not about to change its name again for about the fourth or fifth time in as many years.

While the Labour Government focused on name and branding, they ignored the importance of our manufacturing base, which is much talked about. As has been pointed out, 4.3 million people were employed in manufacturing in 1997, but only 2.5 million were employed in 2010. That is a catastrophic decline. Opposition Members might say that there was an increase in output, but the reality is shown in OECD figures. In the industrial sector, which covers manufacturing, mining and energy production, UK gross value added was 25% in 1997—the same as in Germany. However, the figures for 2008, which are the latest figures, show that gross value added was 26% in Germany, but only 18% in the UK. That is decline in anyone’s judgment, and it is the dreadful legacy of Lord Mandelson, the Labour party and their inaction.

[Tom Blenkinsop]

Is the hon. Gentleman aware that in 1987, 26,000 worked at British Steel and Redcar Teesside Cast Products, but by 1992, fewer than 5,000 worked there?

[Gavin Williamson]

I was unaware of that but I thank the hon. Gentleman for saying so. We need a revival of all manufacturing, right across the country.

Opposition Members might say that lower corporation tax will not encourage growth, but actually, lower taxes do encourage growth. They encourage people to invest in this country, and encourage people both in this country and abroad to bring jobs and investment here.

I welcome the Government’s move to introduce the enterprise allowance, which will encourage those who are unemployed to create new jobs and to seize the opportunity to create wealth.

[Neil Carmichael (Stroud) (Con)]

My hon. Friend makes some fascinating points. I am amazed that we are talking about the machinery of government. I would like to focus on something on which the Department is doing a fantastic job: improving our skills base. That is an area that really needs attention. If he is right about manufacturing, I am certainly right that we need to ensure that we have the right people to employ in a growing manufacturing sector, and it is important also—

[Gavin Williamson]

I thank my hon. Friend for such a—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Will the hon. Gentlemen resume their seats? There is a time limit on speeches, and also a time limit on interventions—it is called “short”.

[Gavin Williamson]

Thank you, Mr Deputy Speaker. I also thank my hon. Friend the Member for Stroud (Neil Carmichael) for making such lucid points.

My hon. Friend is right about training and giving business the freedom to succeed—freedom from regulation. That is why I pay tribute to Ministers in the Department. They have introduced a one-in, one-out policy on regulations —or I very much hope they will do so shortly. I would encourage them to be bolder, and certainly to be bolder than the Labour Government, and to make that a one-in, two-out policy. Let us be bold. Let us free industry from the shackles of government.

The hon. Member for Penistone and Stocksbridge (Angela Smith) made a valid point on intensive users of energy. We must be wary of environmental regulation. If we are not careful, we will ship business from this country to countries such as Ukraine, which do not have a care for environmental regulation. We will not just be shipping carbon abroad; we will also ship jobs. I ask my right hon. and hon. Friends on the Treasury Bench to bear that in mind.

The hon. Member for Middlesbrough South and East Cleveland (Tom Blenkinsop) made the valid point that we need to encourage jobs right across the manufacturing sector. We must be careful with all regulation, but especially with environmental regulation.

Opposition Members sometimes seem not to accept the fact that businesses do not always want to be involved in the intricacies of government. Businesses want the freedom to get on, but they need help with financing. There is a real squeeze for many small and medium-sized businesses in getting the finance that they need. The Black Country Reinvestment Society helps many SMEs in my constituency and much of the black country, including new businesses. It uses small amounts of capital to give those businesses the opportunity to grow and expand. I encourage Ministers to look at the model to see how it can be expanded across the country.

I also encourage Ministers to look at the German model. Many German banks do not simply lend to businesses and provide mortgages and banking facilities; they actually take an equity stake in the businesses. That stake means that they have a long-term vision for those businesses. More support, rather than more interference, is what is needed in this country.

Businessmen do not want a constant dialogue with civil servants and politicians. They want and need low taxes, low levels of regulation and most important of all, a stable economy. I encourage Ministers not to think that more government will lead to more business, but to think that less government will lead to more business.