Oral Answers to Questions

Greg Clark Excerpts

Tuesday 7th November 2017 Commons Chamber

[Andrew Lewer (Northampton South) (Con)]

6. What steps he is taking to support businesses that are developing connected and autonomous vehicles through the Midlands Engine.

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

Our industrial strategy capitalises on our strengths as we build the next generation of motor vehicles. In July, we committed £246 million to the Faraday Battery Challenge to make Britain a centre for the development of battery storage. I have also announced £51 million to fund automated vehicle testbeds across the country. I am delighted to say that in October Ford opened its new European Mobility headquarters in Britain.

[Matt Warman]

Whether lorries or tractors, it is in rural areas where autonomous vehicles have the potential to make a particularly profound impact. Will my right hon. Friend assure me that the research that he is funding will look in particular at rural areas rather than simply focusing on our very well connected cities?

[Greg Clark]

My hon. Friend makes an excellent point. He is right in saying that, if this is to apply right across the country, the opportunities in rural areas are very important not just for the vehicles he describes, but for public transport. He will know that at the University of Lincoln, not far from him, excellent work is being done through the Centre for Autonomous Systems on the future of mobility. I hope that it will be a participant in this great wave across the country of research and development in the technologies of the future.

[Andrew Lewer]

Silverstone Technology Cluster supports many thousands of jobs in and around Northamptonshire, including in companies such as Cosworth in my constituency of Northampton South. What steps are the Government taking to support the Silverstone cluster?

[Greg Clark]

My hon. Friend is absolutely right that the choice that some of the world’s best motor manufacturers make to locate in the cluster reinforces our reputation. Last year, we launched the Aylesbury Vale enterprise zone, which supports the Silverstone high-performance technology cluster. It provides an environment that is helping to deliver new jobs in this sector. The local growth fund for his area includes an innovation centre, which is geared to automotive technology in the enterprise zone.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

I urge the Secretary of State to say something to leading engineering businesses and the University of Huddersfield where we are doing a lot of research on autonomous vehicles, because they might have listened to “Today” on Radio 4 this morning and heard another Secretary of State using a mysterious kind of language. He was talking about “a new post-Brexit trade policy” and “a new trade remedies body”—what is a new trade remedies body?

[Mr Speaker]

I do not care what a new trade remedies body is. All I am concerned about is autonomous vehicles—electric or otherwise. Let us hear about the matter.

[Greg Clark]

The hon. Gentleman asks an important question. It is absolutely right that the researchers at the university will have huge opportunities in this area. The reputation for excellence that has been established in that university is well known not just across the country, but around the world. The Prime Minister and I had the privilege of attending a roundtable of the leading managers across the motor industry, including the supply chain. They are united in their excitement about what is the biggest change in mobility since the invention of the petrol and diesel engine. We are replete with these possibilities, and it is increasingly recognised that we are establishing a reputation for being the place in the world to come for them.

[Nick Thomas-Symonds (Torfaen) (Lab)]

Whether it is exporters of autonomous vehicles or other exporters within the automobile industry in my constituency, what they need going forward is a consistent regulatory framework. What kind of guarantees can the Secretary of State give to exporters such as those in my constituency as we leave the EU?

[Greg Clark]

The hon. Gentleman makes a good point. The predictability of the regulatory environment is extremely important for future investment. It is one reason why we have introduced the Automated and Electric Vehicles Bill, which will be ahead of the world in establishing the right regulatory environment for electric and autonomous vehicles. Again, this is something that has commanded the attention of the world, and it is exactly in line with what he says.

[Mims Davies (Eastleigh) (Con)]

As we take steps to grow the economy and decrease emissions, will the Secretary of State commit to working with all businesses involved on the noise that autonomous and electric vehicles make, as highlighted by my deaf and blind constituents, and to working with the disabilities agenda as this new technology moves forward?

[Greg Clark]

My hon. Friend is absolutely right that one of the advantages of the new technologies is that they give particular hope to people who find it difficult or impossible to use conventional vehicles. Part of the point of putting together the research in the automotive, renewable energy, healthcare and social care sectors is that we can join the benefits of all of them in a single programme.

[Mr Dennis Skinner (Bolsover) (Lab)]

If we are going to have these electric vehicles, these autonomous vehicles, and everything else is going to be wonderful, why bother with £100 billion on HS2?

[Greg Clark]

Because we need both. Our ambition is to make this country one of the best connected in the world so that it is possible to go from the capital to our midlands, northern cities and beyond quickly and efficiently, and have more capacity to move freight around the country. I would have thought, given the importance of the motor industry to Derbyshire, that the hon. Gentleman, as a Derbyshire MP, would welcome the investment and progress in the sector, including £250 million invested by Toyota in its excellent plant.

[Barry Gardiner (Brent North) (Lab)]

Germany has said 2030; Norway and Holland are aiming for 2025. The Chinese owners of Volvo say that all their new models will have an electric motor from 2019. As the climate conference in Bonn begins, does the Secretary of State consider that the UK Government’s plan to ban the sale of fossil fuel vehicles from only 2040 is somewhat lacking in ambition, failing to provide strong leadership, or downright pathetic and making the UK a laughing stock?

[Greg Clark]

If the hon. Gentleman reflects on our reputation in the world, he should know that, for international leadership on climate change, it is very strong. He would do well to commend rather than undermine that. In the past few weeks, we launched the clean growth strategy, which commits, across a range of areas, not just to meet our legal commitments and generate jobs in those important technologies, but to lead the world in exports. I would have thought that he would use his time at the Dispatch Box to commend the Government for a document that has been well received across the world.

[Wera Hobhouse (Bath) (LD)]

2. What assessment he has made of the effect of the UK leaving the EU on the civil nuclear industry.

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[Tom Brake (Carshalton and Wallington) (LD)]

8. What discussions he has had with the Secretary of State for Exiting the European Union on the effect of the UK leaving the EU on the automotive sector.

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

I have frequent discussions with the Secretary of State for Exiting the European Union. The UK continues to demonstrate that it is an attractive place for future investment. Companies such as Nissan, BMW and Toyota continue to invest, thanks to our highly skilled workforce, the strong partnership between the Government and industry and long-term investment in new technology and innovation.

[Tom Brake]

I am sure the Secretary of State is aware that some car manufacturers are questioning whether to make further investments in the UK because they are uncertain about the validity of type approvals after we have left the European Union. When will the Secretary of State be in a position to confirm that they will indeed be valid and that the trucks shipping components will not be stuck in long queues at either Dover or Calais?

[Greg Clark]

I have been very clear in my discussions with the industry, and, as I said earlier, last week we had a roundtable at No. 10 with the Prime Minister. It is essential for our trading relationship with the European Union not only to be tariff-free, but to allow the continuation of a means of production that involves multiple components going back and forth, often at very short notice. There are questions about, for instance, type approval and rules of origin, and we are working with the industry to ensure that those matters are part of the deal that we want to achieve. That is a course that I know Members in all parts of the House would commend.

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

Mitsubishi’s headquarters are in Cirencester, where it employs 250 people and supports 113 dealerships throughout the UK. I wholeheartedly endorse my right hon. Friend’s remarks about needing to secure a Brexit agreement that supports the automotive sector, so that we can protect those jobs.

[Greg Clark]

I am grateful to my hon. Friend. The industry is aware of the firmness of our intention. It makes no sense to disrupt what has been a very successful relationship between this country and some of the home countries of those manufacturers: that is very clear in all our minds.

[Rachel Reeves (Leeds West) (Lab)]

Our successful car manufacturing sector exports nearly 1 million cars a year to the rest of the European Union. However, the Society of Motor Manufacturers and Traders has said:

“Brexit is the greatest challenge of our times”.

What is the Secretary of State doing to ensure that there are no costly tariffs or time-consuming customs checks in the sector after we leave the EU?

[Greg Clark]

We met the SMMT and all members of the sector to discuss every aspect of the challenges and opportunities ahead. The hon. Lady is of course right that Brexit is very much on the minds of every motor manufacturer, which is why the discussions we have had reinforced our commitment not only to secure a good deal at high level, but to make sure all the particular aspects for that industry are addressed. The industry was also enthusiastic about our clear commitment, with mounting enthusiasm being shown on the part of our partners, big and small, to invest in the future and to make sure that what makes Britain attractive as a place to locate continues to be so in the future.

[Jack Dromey (Birmingham, Erdington) (Lab)]

Ten years in low-paid work and then four years a Jaguar apprentice, I will never forget Warren waxing lyrical about the job that he loves, and moving into, in his words, the house of his dreams with the woman of his dreams. Does the Secretary of State begin to understand that, as a consequence of this Government’s disastrous mishandling of Brexit, investment has fallen by over 50%? Does he begin to recognise the damage the Government are doing to workers like Warren and the jewel in the crown of British manufacturing?

[Greg Clark]

If the hon. Gentleman talks to people in the motor industry, as in other industries, he will know that no one is more vigorous and active than I am in meeting prospective investors to explain our strategy and the attractiveness of the UK. As a result of the industry’s work, supported by the Government, we have had a commitment from BMW to build the electric Mini in the UK, Toyota is investing a quarter of a billion pounds in Derbyshire, Nissan has confirmed that it will build two new models in Sunderland, and other discussions are continuing. That work, in the context of the need for continued good access to the European market, is giving confidence to the industry. I would have hoped that it was a matter of consensus across the House that we should maintain that confidence, rather than seek to undermine it.

[Nigel Huddleston (Mid Worcestershire) (Con)]

9. What assessment he has made of the effect on consumers’ awareness of energy consumption of installing a smart meter.

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[Alex Burghart (Brentwood and Ongar) (Con)]

14. What steps his Department is taking to support the UK car industry after the UK leaves the EU.

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

The UK’s automotive industry is a great British success story, and as I said earlier, the Prime Minister and I met senior executives last week and reiterated our determination to secure a Brexit deal that guarantees the sector’s competitiveness. I will continue to work closely with all companies in the sector.

[Alex Burghart]

I am grateful to the Secretary of State for mentioning Ford in an earlier answer, because Ford is a major employer in my constituency. What is his Department doing to ensure that this country is the epicentre for innovation in the car industry as we move out of the European Union?

[Greg Clark]

Through our industrial strategy, we have a clear focus on being the go-to place in the world for the future of mobility in all its different forms. Dunton in my hon. Friend’s constituency is home to Ford’s technical centre, which is obviously one of the major global forces in that future. It is particularly gratifying that Ford has chosen the UK to be the centre of its European operations for the future of mobility.

[Nick Smith (Blaenau Gwent) (Lab)]

15. What discussions he has had with Cabinet colleagues on providing funding to ensure minimum wage back-payment in the social care sector.

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[Dr Paul Williams (Stockton South) (Lab)]

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

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

Since we last met, my ministerial colleagues and I have brought three major pieces of legislation to the House: a draft Bill to cap consumer energy prices; new laws to ensure that every home and small business will be offered a smart meter; and the new Nuclear Safeguards Bill to maintain our nuclear safeguards as we leave the EU. We continue to develop new policy that will benefit businesses and wider society, and today we are publishing a call for evidence on Professor Dieter Helm’s independent review of energy. We have reaffirmed our position as a world leader in tackling climate change through the launch of the clean growth strategy, and I take this opportunity to invite all Members on both sides of the House to join us in celebrating Small Business Saturday, which is coming up on 2 December.

[Dr Williams]

Is the Secretary of State concerned that, although October’s figures show continued welcome manufacturing growth, almost half of the net jobs created in the UK since 2010 are in London and the south-east, where only a quarter of the population live?

[Greg Clark]

I would have thought that the hon. Gentleman would welcome the fact that jobs are being created in all parts of the United Kingdom and that we have the highest level of employment since records began. That is a signal of the success of the UK economy, but he is absolutely right that we want to make sure that every part of the United Kingdom reaches the height of prosperity it is capable of reaching, and through the industrial strategy we will have more to say about how we can propel that forward.

[Wendy Morton (Aldridge-Brownhills) (Con)]

T2. Businesses in my constituency and across the west midlands need the investment and the skills to continue to thrive and flourish. Will the Minister update me on the work the Government are doing in that regard?

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[Rebecca Long Bailey (Salford and Eccles) (Lab)]

Last week, the Secretary of State repeatedly refused to confirm, when pressed by the Select Committee, that the energy price cap would be in place by next winter. Media reports have also suggested that the Government have already told energy investors that the draft legislation will be ditched if they feel the big six power firms are doing enough to tackle high bills. I therefore ask the Secretary of State, in the hope he will today provide a clear answer, whether the energy price cap will be in place by the winter of 2018 and, if not, whether the media reports are true that there is actually no intention of introducing price cap legislation?

[Greg Clark]

I can assure the hon. Lady that there is every intention of introducing a price cap, and there is consensus in the House around that. We have published a Bill and it is being scrutinised by the Select Committee. As soon as it has finished that scrutiny, we will look for an opportunity to introduce it to the House.

[Rebecca Long Bailey]

I am afraid that answer simply created even more ambiguity, so let us try a different topic. The Government scheme to deal with the social care back-payment announced on 1 November has been cited as “inadequate” by many care businesses and organisations, as it does not address the fact that many providers simply cannot afford to pay due to funding cuts, and some workers will not be paid what they are duly owed until 31 March 2019. Mencap has stated that many providers will be reluctant to take part in the scheme as they feel they will be

“writing their own suicide note”.

Therefore, I ask the Secretary of State: will the Government commit the necessary funding in the Budget to avert a crisis in the care sector, which could see many businesses struggle to survive, impacting on already fragile care services, and leave thousands of care staff without the wages they are owed?

[Greg Clark]

As the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Stourbridge (Margot James), has made clear, and as I believe the hon. Lady knows, this is a difficult and complex issue. We completely accept the need for confidence among the providers of care to some of the most vulnerable people in society, while recognising the legitimate claim, which has been upheld by the courts, of those who have worked in that sector. Bringing those two things together requires precision and care, so that this is robust and does not create further uncertainty if it were found not to be legally possible to advance it. That is why the interim proposal has been made, but I am happy to keep the hon. Lady informed.

[Anna Soubry (Broxtowe) (Con)]

Yesterday afternoon, we had an excellent debate in this Chamber about the benefits of European economic area and European Free Trade Association membership, with people on both sides of the Chamber supporting our continuing membership. I do not expect my right hon. Friend to pass comment on his own views on this matter, but I do know he will always champion the best interests of British business. To that end, will he undertake, in all the negotiations he is involved with at the highest level, to make sure that all options are kept open as to how we get a Brexit deal—that includes the EEA and EFTA?

[Greg Clark]

I represent strongly the views of the business community because they are absolutely vital for our continuing prosperity as a country. The whole of the business community wants to get the best possible deal for the UK, and the vast majority of Members were elected on a platform and a manifesto of obtaining that. I will be tireless in pressing the case for it.

[John Mc Nally (Falkirk) (SNP)]

T3. After years of the Scottish National party lobbying, the Department for Business, Energy and Industrial Strategy launched a review into limited partnerships, and we in the SNP welcome that. In the light of the Paradise papers, thousands of firms registered in Scotland will be forced to reveal their owners’ identities. When will the Government publish the full findings of the review?

[John Penrose (Weston-super-Mare) (Con)]

Dieter Helm’s recently published “Cost of Energy Review” says that

“the prices of oil, gas and coal have fallen…contrary to the modelling and forecasting of both the Department of Energy & Climate Change…and the Committee on Climate Change”.

He means that however hard they try and however worthy their intentions, mandarins and regulators are rubbish at discovering or predicting energy prices. Does my right hon. Friend agree that the provisions for the draft Bill’s absolute energy price cap, which would require mandarins and regulators to meet twice a year to pick a number, would repeat the same mistakes so should be replaced by something more closely linked to the few competitive energy prices that already exist?

[Greg Clark]

I know what a great campaigner my hon. Friend has been on this issue. We have published the draft Bill, which includes our intentions, and I hope that he will give evidence while the Bill is being scrutinised. We are eager to hear his views, and we are eager to hear whether the Select Committee agrees with his analysis.

[Christian Matheson (City of Chester) (Lab)]

T5. Does the Secretary of State accept that the true test of his industrial strategy will be how actively he and the Government intervene to protect manufacturing skills and jobs when companies such as BAE Systems, Bombardier or Vauxhall face crisis?

[Greg Clark]

I agree with the hon. Gentleman that the Government, my ministerial team and I should be active in securing investment opportunities and continued employment by UK companies and international companies that invest in the UK, and we are. I do that tirelessly. In the case of Ellesmere Port, we have had discussions with Peugeot and it is interested, as we are, in investment in the new generation of vehicles, with which I know the hon. Gentleman is familiar.

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

I am working closely on investment in utilities with the Greater Lincolnshire local enterprise partnership, which will shortly publish a report detailing areas of Lincolnshire in which infrastructure requires investment. One problem is that Western Power is prevented from making speculative investment by Ofgem. Can my hon. Friend the Minister tell me why there is apparently this regulatory barrier to investment and what she can do to help?

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

T6. Net present value is the economic measurement generally held to provide the most robust assessment of all the costs and benefits of any proposed major infrastructure project. Would the Government ever support a major infrastructure project that, at its inception, was calculated to have a negative net economic benefit?

[Greg Clark]

One of the things that the House has correctly required of the Government is that we should take account of the impact on local economies—for example, on small businesses. That is something that has changed in the impact guidance, and it is right that it has.

[Mike Wood (Dudley South) (Con)]

On the 100th anniversary of the communist revolution’s introduction of a system that impoverished and imprisoned tens of millions, what is the Department doing to promote the benefits of free markets for workers, consumers and society as a whole?

[Greg Clark]

I am grateful to my hon. Friend for that question, because the history and reputation of this country during the past 100 years, and especially during the past decade, has been based on having in this country a system of vigorous competition in which businesses compete not because they are guaranteed a position by the state but because they face pressure from competitors. That has introduced extraordinary prosperity that would be thrown away were we to adopt a different system, such as that proposed 100 years ago.

[Grahame Morris (Easington) (Lab)]

T7. Will the Secretary of State assure the House of his Department’s commitment to enforce the national minimum wage in the maritime sector? Why have officials from his Department been unable to attend meetings of the cross-departmental legal working group on seafarers?

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[Steve Double (St Austell and Newquay) (Con)]

The Secretary of State will be aware that Newquay’s bid to be the location of the spaceport is backed by organisations right across Cornwall, including the LEP, the chamber of commerce, the wider business community and the local authority. Will he update the House on what progress has been made in this important development for the UK space sector?

[Greg Clark]

I will indeed. My hon. Friend is a great champion of Newquay’s bid. The shortlisting has taken place and announcements will be made very soon.

[Diana Johnson (Kingston upon Hull North) (Lab)]

T9. The Minister knows that the Red Arrows fly Hawks built at Brough, and they are great ambassadors for British aeronautical engineering and attracting export orders. But with the production line at Brough under threat, including those skilled jobs, is it not time for the Government to renew the contract for Hawks for the Red Arrows and, most importantly, to keep sovereign capability in this country?