Oral Answers to Questions

Gordon Birtwistle Excerpts

Thursday 14th October 2010 Commons Chamber

[Mr Prisk]

We have inherited a situation in which the funds have run out, as the Labour party has said. That is why we are focusing on the things that really matter—tackling the public deficit to keep interest rates lower for longer, making sure that small businesses see their corporation tax go down and tackling red tape. The Labour party failed to deal with all that, but we will.

[Gordon Birtwistle (Burnley) (LD)]

5. How many apprenticeship places his Department plans to fund in 2010-11.

[Andrew Stephenson (Pendle) (Con)]

6. How many apprenticeship places his Department plans to fund in 2010-11.

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[Mr Hayes]

I am always grateful for your benevolence and advice on these matters, Mr Speaker.

Days after taking office we announced an additional 50,000 apprenticeships over the financial year, taking the total to be delivered this year to well over 300,000 places—a record for the apprenticeship programme. The National Apprenticeship Service has assured me that we are on track to deliver on this commitment.

[Gordon Birtwistle]

I am particularly pleased to hear of the efforts being made to fund more apprenticeships and I thank the Minister for his involvement in securing this scheme. However, I am concerned that many businesses in my constituency who want to take on more apprentices are struggling with access, support and advice. Has the Minister, or the agency responsible for the scheme, made any advertising plans to broaden participation in this excellent scheme?

[Mr Hayes]

Yes; we appreciate the hon. Gentleman’s point. I have asked my officials to look closely at these matters. We appreciate that some of the supply-side barriers to small businesses, in particular, getting involved in apprenticeships need to be lifted. We know that to rebuild the apprenticeship programme after the sorry state it was left in by the previous regime—I do not want to be unnecessarily unkind, but I emphasise the word “unnecessarily”—we will have to do a lot of work to involve more businesses to satisfy our demands and learner wishes.

Academies Bill [Lords]

Gordon Birtwistle Excerpts

Thursday 22nd July 2010 Commons Chamber

These regulations are called “Reducing the burden on schools”, but they should be called “Putting kids in substandard buildings”. I am glad that my hon. Friend the Member for Halton is still here, because he and I have always taken a keen interest in these matters. At the end of the regulations, we find out that they deal with not only building school premises regulations and design requirements, but “playing field regulations”. I cannot remember a time when Members on both sides of the House have not become incandescent about the selling off of school playing fields—[Interruption.] If the hon. Member for Burnley (Gordon Birtwistle) wants to intervene, that is fine.

[Gordon Birtwistle (Burnley) (LD)]

The Labour party was famous for selling off school playing fields. To return to Building Schools for the Future, the majority of those building programmes were carried out under private finance initiative schemes. They were never put on the Government’s balance sheets. They are all off the capital account, and are being paid for out of the revenue of the next 25 years. So how can the hon. Gentleman say that he had the money for those programmes, when he did not know whether he would have that money over the next 25 years to pay the rent on the schools that he built?

[Vernon Coaker]

I have already answered the point about money for schools. I suggest that the hon. Gentleman goes round to the schools being built through PFI schemes and tells them, “We don’t want you in here building a school through PFI.” The programmes delivered through PFI, through local authority funding or through Building Schools for the Future have transformed the quality of school buildings, and over the next decade they would have transformed the whole of the secondary school estate, either through rebuilding or refurbishment. This is a choice that we have to make: the hon. Gentleman can oppose the programme, and that is absolutely fine. He can stand up and oppose it—

[Gordon Birtwistle]

rose—

[Vernon Coaker]

Not now! This is one of the good things about being in Committee—we can get excited and nobody really minds.

The hon. Gentleman can oppose the Building Schools for the Future programme and say that what the Government have done over the past few years has been a waste of time, but I would say to him that we have a tremendous record and that Building Schools for the Future would have delivered that transformation.

Returning to the point about playing fields, it was our Government who introduced regulations to ensure that there was agreement, including from sporting bodies, on any such land that was sold, and that the money was reinvested in the school. In one or two instances, I supported the sale of playing fields in my area when schools were being rebuilt with gyms and all-weather courts as a consequence of the money that was realised from the sale. Often, land that was labelled as playing fields was nothing more than waste ground. Numerous Members from across the country asked whether it would be possible to sell off such land as long as the money was reinvested in sports facilities in the local area. I would have thought that the hon. Member for Burnley would have supported the amendment because it would introduce consultation with local people, the local authority, parents and children on any activities where capital expenditure is moved to fund the free schools.

However, my point is that tucked away inside “Reducing the burden on schools” is the fact that the capital review will cover not only school premises regulations and design requirements but also playing fields. Does the Minister therefore envisage some free schools being set up with no access to playing fields or other outdoor sports facilities? I have heard him quite rightly highlighting the essential role in the curriculum played by sport. How on earth is that to be delivered in the light of these regulations? I know that he will get up and say that they do not mean that at all, but I can tell him that that is exactly what they mean. This is exactly what the Secretary of State said when he was talking about capital moneys being made available for free schools. He wanted the schools to be able to be set up very quickly and cheaply, and that would involve changing the regulations that local authorities would normally have had to abide by. He wanted to reduce the central requirements so that a huge number of free schools could be set up as quickly as possible, funded by moving money from one departmental pot to another. Our amendment would ensure that that choice was made apparent to local people, and I know what their decision would be if they were asked those questions.

Oral Answers to Questions

Gordon Birtwistle Excerpts

Thursday 8th July 2010 Commons Chamber

[Vince Cable]

No, I cannot confirm that because the decision is still awaited, and it lies with the Department for Transport. Only last week, I attended a major series of events with the automotive industry, which impressed on me the importance of this decision in order to promote electric power. I fully understand the rationale behind it, but I cannot confirm the decision today.

[Gordon Birtwistle (Burnley) (LD)]

The university campus at Burnley college has developed what it believes to be the most advanced wind turbine in the world. The previous Government were asked to fund further research on it, which they refused, so will the Minister visit this project and look at the possibility of helping to develop it further?

[The Minister for Universities and Science (Mr David Willetts)]

I always enjoy visiting universities, especially when they have enterprising ideas that bring forward business opportunities, so I am happy to accept my hon. Friend’s invitation.

Education Funding

Gordon Birtwistle Excerpts

Monday 5th July 2010 Commons Chamber

[Michael Gove]

I do not believe that temporary accommodation is right for any student if we can do better. The problem that we have is that we inherited a financial situation and the money simply is not there. As the hon. Lady knows, her local authority was a participant in an earlier wave of BSF. There are some schools in Liverpool that have benefited from that earlier wave, but a later wave has not reached financial close and so, regrettably, the investment cannot go into those schools. That is a direct consequence of the economic mess that we inherited from the last Government—and she stood in their support in the election.

[Gordon Birtwistle (Burnley) (LD)]

Is my right hon. Friend considering using the staggeringly expensive PFI funding, on which present arrangements are based, when considering future capital spending on education?

[Michael Gove]

Like me, the hon. Gentleman is sceptical about the way in which PFI operates. One of the problems with the BSF projects is the way in which the PFI programme was managed.

Building a High-Skilled Economy

Gordon Birtwistle Excerpts

Thursday 17th June 2010 Commons Chamber

[Chris Williamson]

Labour Members harp on about the 1980s because of what happened then. The policies of the previous Conservative Government damaged the car industry and shipbuilding, and manufacturing right across the piece in our country. It is completely wrong to blame trade unions for the systematic destruction of manufacturing in this country.

[Gordon Birtwistle (Burnley) (LD)]

Will the hon. Gentleman comment on the actions of Red Robbo, who closed down the old Austin Rover plant in the 1970s?

[Chris Williamson]

Again, hon. Members on the Government side of the House are demonising trade union activists, but Derek Robinson, to whom the hon. Gentleman referred colloquially as Red Robbo, was simply arguing for more investment in the car industry. He was saying that if the car industry did not get the support that it needed, it would fail and be overtaken by our competitors in Japan and Germany. His predictions—dare I say?—actually came true, because the car industry in our country was completely destroyed as a result of Conservative policies.

The Conservatives are making the same mistakes not only in policy pronouncements, but in practical matters. Only this morning, the Transport Minister made it very clear that there will be no further orders for rail transport rolling stock. Many people in my constituency work for Bombardier, which is the last train manufacturer in the UK, and they were relying on the possibility of securing the Thameslink contract. However, it now seems, after what the Transport Minister said this morning, that there is no prospect whatever of Bombardier securing that contract this year. That will certainly lead to redundancies and make it much more difficult for young people in training colleges in my constituency—if they have been given that opportunity—to get the real jobs that are crucial to securing a high-skilled economy, as my hon. Friend the Member for Ealing North (Stephen Pound) said.

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[Gordon Birtwistle (Burnley) (LD)]

Like other hon. Members, I wish to congratulate the hon. Members for Romsey and Southampton North (Caroline Nokes), for Liverpool, Walton (Steve Rotheram), for Colne Valley (Jason McCartney), for Battersea (Jane Ellison) and for Milton Keynes South (Iain Stewart) on their maiden speeches. I made mine a few weeks ago. Like the hon. Member for Liverpool, Walton, I did an apprenticeship, and it is some 52 years since I turned up in my brand- new boiler suit and boots at a large engineering company in Accrington called Howard & Bullough, then the world leaders in machines for textile making. Regrettably, it is no longer with us, like so many other companies from that time.

I agree that it is critical to build a higher-skilled economy. We need to deliver the skills that will deliver the jobs of the future, in engineering, chemicals, medicines, nuclear technology—both commissioning and new build—and the internet. Such high-tech, high-value jobs will deliver the products and services that are needed round the world. Only 12 months ago, when I was leader of Burnley borough council, we heard that Rolls-Royce was developing a new engine for a new range of airliners. Hon. Members may not know it, but over the next 25 years the single-aisle aeroplanes such as the Boeing 737s and Airbus 320s will all be replaced. The cost of replacing these will be in the region of $3 trillion. The power packs and engines required for those aeroplanes will cost in the region of $600 billion. That is a hell of a lot of work for the people who produce the aeroplanes and the engines and power packs to go with them.

I approached the leader of Derby city council and we visited Rolls-Royce, where we asked the main board whether these engines would be developed in the UK. It said not and that it was hoping to develop them in Germany, Singapore and the far east. It also said that wherever it develops the engine it will most likely build it—$600 billion of work that could have been done in this country now might go abroad.

I asked the Rolls-Royce board whether there was a financial inducement to building the engine overseas, and it replied, “No, there is no financial inducement. In fact, it will cost us more money to develop this engine overseas.” The question went back, “Then why are you doing it?”, and the question was put back to us, “Can you deliver 3,000 to 5,000 qualified, highly skilled graduates to design, build and develop this engine?” The answer from all present was, “Unfortunately, no.” Rolls-Royce replied, “If you can’t deliver the skills we need, we have no alternative to going abroad to develop this engine.” Some $600 billion of work over 25 years! That is an appalling situation and an indictment of the last 30 years in the development of the skills of engineers and technicians that we need in this country. It has to stop, and I am delighted that we are at least starting to deliver what industry needs for the future jobs of this country.

The town I represent has just got a brand new college on its university campus—a campus that is dedicated to advanced manufacturing. The borough council invested more than £150,000 in a brand new, high-tech machine shop, which I would like the Minister to visit. I invited Rolls-Royce representatives to come and see this new machine shop. They came all the way from Barnoldswick, and while they were there, they had a conversation with the people from the university of Central Lancashire and decided that because the new advanced engines would nearly all be made from carbon fibre, particularly in the cold engine section—the hot engine section will obviously still be made from metal—they would like to work with the UCLan campus to develop it. The university has therefore purchased an autoclave to develop carbon fibre turbine blades for Rolls-Royce. That is the advancement that this country needs and that will stop some of the work going abroad. We need to support colleges in acquiring the equipment that companies around the country need and in developing new technologies, and I am delighted that this has happened.

UCLan campus academics have developed what they believe to be the most efficient wind turbine in the world. It is only small—about 1 metre across—but they have found that it has the most advanced centre bearing in the world. We approached a local company, and it agreed to put £1 million into the development of the wind turbine to make it big enough to use onshore. It has a 15-metre autoclave in its factory and can make carbon fibre blades for the wind turbine. Through the borough council, I asked the previous Government whether they would support the development of the wind turbine, a vast number of which will be needed over the next few years. As everybody knows, we do not make wind turbines in this country—we buy them from abroad—but unfortunately the previous Government did not want to support the scheme, so it has died and the wind turbine is sat in an office in Burnley, waiting for someone to support its development. It would cost about £4 million, but would create thousands of jobs and save having to import wind turbines from abroad. The local company was willing to take up some of the loss, but unfortunately the scheme was rejected. That is very sad in these days.

We need to invest in new developments and in the people to deliver them. We cannot stand by and look back; we have to move forward and provide the skilled people of the future, and I hope that what we are doing with the 15,000 apprentices and what we are proposing to do about advanced manufacturing will deliver the people of the future, doing the jobs of the future and providing the work of the future.

Industry (Government Support)

Gordon Birtwistle Excerpts

Wednesday 16th June 2010 Commons Chamber

[Mr McFadden]

I am pleased to hear from my hon. Friend and I wish him well in his new role as the new Chairman of that Committee.

[Gordon Birtwistle (Burnley) (LD)]

May I welcome the former Minister’s conversion to a balanced economy? In that past 13 years, the previous Government virtually destroyed manufacturing industry and hung their coats on the financial industry, so this country went down. My constituency has lost hundreds of jobs in manufacturing industry because of the economic policies of the previous Government.

[Mr McFadden]

rose—

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[Jack Dromey]

I will come to the truth about Advantage West Midlands in a moment. The truth is the opposite of what has just been said.

What we are hearing is the politics of the alibi, camouflaging an ideological objection on the part of the Con-Dem alliance to what its members call big government. It fails to understand the critical role of Government in boosting manufacturing in Britain. Of course it is true that good companies are those that help themselves. I have been involved in negotiating ground-breaking deals in the nuclear industry, the food industry, dockyards and the defence sector—ground-breaking deals that have transformed what were failing companies, working with the employers by way of a change and investment agenda.

I know from my experience in the real world of work, not the world of the trading floors, that time and again, with good employers, we have had to go to central Government, local government and the regional development agencies. Only last year I was involved in an exercise together with Scottish Enterprise and the Scottish Government with a leading food manufacturer. Had it not been for partnership, we would not have got the investment, which in turn levered in further investment from the company, securing the future of 500 jobs in an area of high unemployment.

[Gordon Birtwistle]

Can the hon. Gentleman explain to me where the 400,000 jobs came from, as a result of the car scrappage scheme? He gave a list of machine tool manufacturers. How many are based in the UK and manufacture in the UK?

[Jack Dromey]

First, the reference was to 400,000 cars. Secondly, the companies are British-based world class manufacturers of machine tools who, when I was at their exhibition last Friday and met many of them, said with one voice, “For us to succeed, we look to support from and partnership with Government.” Those are precisely the companies that were rescued from the brink by the car scrappage scheme.

The lesson from experience in the real world of work is that industry best flourishes in partnership with Government, with a framework provided by good government, and sustained and strategic investment underpinned by a determined national will. One need only look at Germany’s enduring strengths in manufacturing, which exist precisely because there is that national will. I am proud of the fact that a Labour Government embraced industrial activism. Now is absolutely not the time to pull back from that, because it would be an error of historic proportions. The decisions we make now will decide whether we grow or decline in the future—whether we condemn another generation to no hope. It is therefore essential that we invest to grow and act to rebalance our economy, which had become too heavily dependent on the finance sector.

That is why, for manufacturing, capital allowances matter because they incentivise investment in machinery and plant. That is why, for manufacturing, the patent box matters, with its 10% reduction in corporation tax to encourage innovatory companies to locate intellectual property and manufacturing here in Britain. That is why, for manufacturing, it matters that there is support for research and development. I hope that in refocusing current support, it is not so severely circumscribed as to avoid support for world-beating companies such as Jaguar Land Rover. The Jaguar plant in my constituency is at the heart of a hub of 150,000 people in the midlands who depend on the motor industry for their livelihoods. I will look to the Government to work with me, as the Member for Erdington, in respect of the Jaguar plant, and the hon. Member for Solihull (Lorely Burt), in respect of the Land Rover plant, to secure the future of those two beacons of manufacturing excellence.

That is also why regional development agencies matter. What we have heard today is ill-informed prejudice that flies in the face of the history of, in particular, the successful RDA that is Advantage West Midlands. I have seen that at first hand. After the crisis at Rover in 2000, the supply chain became less dependent on Rover, thanks to the work of Advantage West Midlands. As a consequence, when Rover collapsed in 2005, the supply chain did not collapse, as might otherwise have been the case. The manufacturing technology centre and the manufacturing advisory service are prized by manufacturing employers in the midlands, and that is because of what Advantage West Midlands has done.

Let me issue a challenge to the Secretary of State: necessary as it is to move beyond myths, will the Government now publish the independent evaluation of regional development agencies ordered by the Labour Government before the election? Will he confirm that that demonstrates that Advantage West Midlands is one of the best two RDAs; that for every pound of public money invested, £8.14 of wealth is created in the regional economy; and that it has scored the maximum possible score and has been deemed to be performing strongly? In this new era of openness, will that report now be published?

Birmingham is historically the laboratory of manufacturing and of the genius and enterprise of the British people; too often, now, it is British genius but made in China. Our single biggest task is the renaissance of manufacturing in our country. That will not happen if Government once again abandon British manufacturing.