Oral Answers to Questions Debate
Full Debate: Read Full DebateGreg Clark
Main Page: Greg Clark (Conservative - Tunbridge Wells)Department Debates - View all Greg Clark's debates with the Department for Business, Energy and Industrial Strategy
(8 years, 3 months ago)
Commons ChamberSince I was appointed on 14 July, my colleagues and I have during the summer met businesses, investors, workers and local leaders in all four home nations, as well as travelling to India and Japan. Furthermore, and for the first time, each local enterprise partnership area and each of the devolved Administrations will have a specific Minister in my Department assigned to them. Personal relationships matter in business, and that should start with the Business Department.
I thank the Secretary of State for his answer, and I welcome the whole team to the new Department. The aerospace industry is absolutely vital to the west of England economy not just for jobs, but for growth. Will the Secretary of State work with me to ensure that the entire aerospace industry receives the support it requires and deserves?
I certainly will do that. One of the biggest privileges of this job is to be reunited with aerospace; I got to know the sector when I was Science Minister. In fact, my first ministerial meeting was to have breakfast with the aerospace growth partnership at the Farnborough airshow, where I ran into my hon. Friend the Member for Aldershot (Sir Gerald Howarth). The west of England was very well represented there. For example, Katherine Bennett of Airbus, whom I am sure my hon. Friend the Member for Bath (Ben Howlett) knows well, one of the founder board members of the West of England LEP, was there. This is a very important sector for the economy, and it will have my wholehearted support.
I, too, welcome the new ministerial team. I have a number of correspondents in a few local—predominantly small—businesses in Rochester and Strood who have been trading with European partners over a long period, but whose supply chain costs have recently risen. Will my right hon. Friend outline his commitment to supporting our small businesses in our new relationship with Europe, to ensure that local and regional economies continue to grow?
I will, indeed. I know many of the small businesses in my hon. Friend’s constituency. Of course, through the British Business Bank, we have made over £3 billion available to smaller businesses. She will know that, from next April, small business rate relief will double permanently, which will benefit 60,000 small businesses. This is part of our continuing commitment to small business, which is the motor of the bigger businesses that, together with small businesses, generate so many jobs in our economy.
My home constituency of Eastbourne and Willingdon is a long-established, beautiful seaside destination, with big future ambitions, including for a new hot air balloon festival in 2017. Tourism is the lifeblood of my town, and I am delighted to be welcoming the Eastbourne Hospitality Association to Parliament today. Will the Secretary of State tell me whether he has had discussions with the tourism industry about reducing the level of VAT on tourism services, to bring us into line with competitor destinations in the EU, and to give our industry a competitive platform from which it can stimulate investment, create jobs, deliver growth and take full advantage of the opportunities in life after Brexit?
My hon. Friend is a big campaigner for the tourism industry. I welcome her visitors today, as I am sure the whole House does. We have the highest VAT threshold in the European Union, so many small businesses do not need to charge VAT. But I will continue discussions with her—the hot air balloon festival sounds a very tempting excursion, perhaps for many Members. I look forward to continuing these discussions with her and her colleagues.
Does the Secretary of State agree with his right hon. Friend the Member for North Somerset (Dr Fox) that British business people are fat, overweight and spend too much time on the golf course? [Interruption.] And lazy.
I have yet to meet a lazy business person, starting with my own father, who was up before dawn every morning running his own business. But my right hon. Friend is right to remind us that, across the whole country, every business needs to work hard, as they do, every day of the week. That is the secret of our competitive success, and it is how we will continue to prosper as a nation.
In light of comments made last week by the Japanese ambassador, the Secretary of State will be aware that Nissan, which is based in my constituency, contributes £2.1 billion to the UK balance of trade, and exports 80% of all cars made at its plant in Sunderland. What opportunities does he see for automotive companies such as Nissan in a post-Brexit industrial strategy, and will he commit to meeting Nissan as soon as possible?
I not only make that commitment but can tell the hon. Lady that I have already done that, and have also met the Japanese ambassador. The automotive sector, and Nissan in particular, is a hugely important and valued part not only of her constituency but of the whole country. It has our full-hearted support. The ambassador and I have met twice. It is correct and encouraging that the Japanese ambassador, on behalf of the Japanese Government, shares with us their priorities for our negotiation. That is exactly the sort of relationship that I hope and expect to have with our partners around the world.
The Secretary of State will be aware of the great anger felt by Britain’s wealth creators at the comments of his right hon. Friend the International Trade Secretary, which were damaging not just to them but to our reputation abroad. What conversations has the Secretary of State had with his right hon. Friend and with the Prime Minister about limiting that damage?
My right hon. Friend has been vigorous during the summer in going around the world to promote the case for British business, as is his job. Opposition Members will have the support of everyone in this House if they join the efforts we are making to promote the great opportunities there already are in this country and the further opportunities to come.
Order. The hon. Gentleman should try not to use the word “you” in the Chamber. Debate goes through the Chair. I am not expressing any view on these matters, but I think I know what the hon. Gentleman had in mind.
Free trade courses through the veins of this country. It is one reason why we have been most successful. I was surprised to hear a commitment to free trade described as dogma last week. It is one of our strengths, and my hon. Friend has my absolute assurance that it will be very much to the fore of our reputation in the future as it was in the past.
I welcome the Secretary of State to his new post. He certainly has his work cut out. Australia says that it will take at least three years after Brexit before a trade deal can be in place with the UK, while the United States, Japan and China have all expressed their views about the prospects for foreign investment and trade with the UK. What is he doing to get behind UK businesses and deal with the concerns of our international partners following the Brexit vote? He could not do better than to start by telling his Cabinet colleagues to get behind business and stop insulting it.
I would be interested in the support of the Labour party for promoting British business around the world. The hon. Gentleman will know, from our previous work on local growth, that he will always have a willing ear and assistance from me in doing that. He was kind enough to welcome me; I welcome the Opposition Front Bench team. The hon. Member for Hemsworth (Jon Trickett) was my shadow in my role at the Department for Communities and Local Government. He has followed me here—perhaps he is not so much a shadow as a stalker, but I regard it as flattery. [Laughter.]
As I said in my initial answer, relationships are important. We can exchange letters and bits of paper, but it is important that we get to know well our partners around the world. I have done that and my colleagues have done that. As I said earlier, I visited our investors and manufacturers in Japan and India. I will continue to do so.
As my hon. Friend knows, I am a frequent and enthusiastic visitor to Cambridge. One of the important features of our industrial strategy is to have a clear recognition of the contribution and local leadership that different places bring. I have appointed the Minister for Universities, Science, Research and Innovation, my hon. Friend the Member for Orpington (Joseph Johnson), as the lead liaison for Cambridge, but I will of course be very happy to visit myself.
I, too, welcome the Secretary of State and his team to their positions. I agree that there are some challenges, one of which is the ballooning trade deficit that, in quarter 2 of this year, increased to £12.3 billion. This is a problem that is unlikely to be solved by withdrawal from the single market. Scotland voted to remain. Scottish business wants unhindered access to that single market. Will the Secretary of State support that, or is he in favour of the full English Brexit?
I welcome the shadow Minister to his place. I think many of us on the Government Benches were impressed by his contribution to the debates last week—a clear rising star. He will know that I will work very closely, and the Prime Minister has committed to working closely, with the devolved Administrations to make sure our negotiating mandate reflects the needs of all parts of the United Kingdom. It was a United Kingdom decision to come out of the European Union and we will make the most of it together.
I thank the Secretary of State for that answer. The Scottish Government analysis of UK withdrawal from the European Union is that it could cost the Scottish economy at best £1.7 billion a year and at worst £11.2 billion a year. I repeat: will he make the case from his Department for continued membership of the single European market?
I made clear in my earlier answer that free trade is what we want to see in this country. In furthering our discussions not only with the leaders of the devolved Administrations but with our business investors around the world, we will ensure that the negotiating mandate we have is ambitious and will secure the brightest possible future for the whole of the United Kingdom.
I said on 28 July that the Government would carefully consider all the component parts of the Hinkley Point C proposed project before reaching a decision on whether to agree to the proposed contract for difference. We have been doing just that, and as the Prime Minister told the House last Wednesday, a decision will be taken this month.
On my recent summer surgery tour of my constituency, a number of constituents raised concerns about the cost to the taxpayer of the Hinkley Point C development. Barclays estimates that even if EDF delivers four years late and 25% over budget, it would still make a profit on the deal, with the deficit being picked up by ordinary people over the next 35 years. Does the Minister think that such a gratuitous public subsidy provides value for the taxpayer?
As I said to the hon. Lady in my answer, we are looking at all components of the deal and will make our decision before the end of the month. However, I think it is a responsible act on the part of the Government to consider our energy supplies for the future in the long term. I know the Scottish Government have turned their face against new nuclear. We regard it as an important part of a diverse energy mix that gives resilience to UK consumers.
Given that the Brexit vote has thrown the energy sector into further uncertainty and given that we know that energy from renewable sources will be cheaper than nuclear by the time Hinkley is completed, is it not now time for the UK Government to follow Scotland’s example, end this unreasonable love affair with nuclear energy and embrace cheaper, safer and more plentiful alternatives?
Sir Winston Churchill said that in energy, “diversity and diversity alone” was the foundation for security. I think those were wise words, and I think we are wise to have a range of energy sources now and in the future—including, of course, renewables.
May I say how strongly I support the Prime Minister’s decision on this, given that China persists in trying to hack not only state agencies but our commercial companies and has put two fingers up to the arbitration court in The Hague, which ruled that the development for military purposes of uninhabited atolls in the South China sea was unlawful? These are people with whom we should sup with a long spoon. I commend to my right hon. Friend the paper written by the Intelligence and Security Committee under the chairmanship of Sir Malcolm Rifkind three years ago.
I am grateful to my hon. Friend for his comments. He will know that the commitment we have made is to look at all components of the proposed deal and to make our decision very shortly. I shall of course report back to the House. when we have done that and explain the reasons why we have taken whatever decision we have.
I am grateful to my hon. Friend. It is right when dealing with such an important decision to make sure that a new Government look at all the components with a view to the future for our energy supply. As I say, I believe it important to benefit from the full range of technologies, including some of those that my hon. Friend has mentioned.
I congratulate Express Reinforcements Ltd, based in my Neath constituency, on becoming the preferred supplier for 200,000 tonnes of reinforced steel provided by Celsa Cardiff from Bylor to Hinkley Point C. I am concerned that Hinkley Point C has been hit by multiple setbacks and is on hold. Will the Secretary of State please update us on the timetable? Do we need a plan B or even a plan C?
The hon. Lady is right that across all forms of energy generation we need to upgrade our capacity for it. Doing that—the Government are determined to do so—will secure important advantages for other companies, including steel suppliers, right across the United Kingdom. We will take the decision on Hinkley before the end of the month, as the Prime Minister has said.
Notwithstanding his earlier remarks, will my right hon. Friend confirm that, as well as the proposed nuclear power station at Hinkley Point C, the other part of the package, which is a new Chinese-designed station at Bradwell-on-Sea, remains very much on the table?
The decision with Hinkley Point C is on the particular contract for difference. That is what we are reviewing, and we will take the decision when that review has been completed.
I, too, welcome the Front-Bench Members to their new positions—along with my stalker friend. After putting 25,000 highly skilled jobs at risk and jeopardising 500 much needed STEM apprenticeships; after offending the Chinese Government and risking £18 billion of investment in the nuclear industry, which is a vital part of our energy mix; and after sending shockwaves through the investment community, which now thinks that the Prime Minister does not understand the meaning of fine investment decisions, does the Secretary of State agree with those in the industry who say that the Prime Minister’s cautious approach now looks more like dithering?
I prefer the Prime Minister’s cautious approach to the approach of the hon. Gentleman, which, as far as I can see, is completely inconsistent. He criticises the Government for, quite rightly, reviewing this important decision, but at the same time he says that we should take two to three months to review the decision seriously, so there is a contradiction in his position.
That does not surprise me, however, in view of the complete absence of an energy policy during the 13 years of Labour government when we knew that nuclear power stations were going to come to the end of their lives. Those power stations were not replaced. The present Government are making decisions in a proper, serious way, and making up for the lost time during the Labour years.
I am delighted that the Prime Minister has asked me to lead the historic task of preparing a proper industrial strategy for our country. We have a once-in-a-generation chance to embrace the opportunities of our new global role, and to upgrade our economy so that it works for everyone. We will work with the breadth of British industry, local leaders, innovators, employees and consumers to create the conditions for future success.
May I, too, take the opportunity to congratulate the Front-Bench teams on their appointments?
The words “industrial strategy” often conjure up images of manufacturing and heavy industry. Can the Secretary of State confirm that the service sector, which, after all, constitutes 80% of the British economy, will also be comprehensively covered by this industrial strategy?
I can indeed confirm that. In our projections of how we are to earn our living as a nation, we should look to our strengths. The service sector is undoubtedly one of our greatest strengths, and we must of course create the conditions that will enable it to continue to prosper in the future.
I, too, welcome the Secretary of State to what is a fantastic, ambitious, interesting and challenging brief. I wish him and his ministerial team all the best. Will he now explain precisely how the new industrial strategy marks a distinctive change in the Government’s approach to collaboration with business and intervention in the economy—or is it merely a change to the nameplate at 1 Victoria Street?
It is certainly not that. I would very much welcome the involvement of the new Select Committee which I expect to be formed in ensuring that we capture everything that we need to make a success of the strategy. I do not think that it is brand new, in the sense that, as I have said, we build on success. For instance, we talked to one of the hon. Gentleman’s colleagues about the automotive sector, which we know has been a significant source of strength. The environment that we have created with the firms in the sector, and with universities and scientific institutions, has been crucial to its success. We will build on those strong foundations, and will be very clear about our path for the future.
As the Government formulate their industrial strategy, may I urge my right hon. Friend to look at the American small business innovation research programme, which funds research at the critical stage between science and the commercialisation of technology, and which has spawned companies such as Qualcomm, Jawbone and Tesla? Will he consider a United Kingdom equivalent?
I am grateful to my hon. Friend, who is very well informed about the need to translate research success into small business success. I am sure that we can discuss it further.
They are not forgotten. The hon. Gentleman is very good at one-liners. The creative industries are an important source of strength, and that includes comedians.
Some of the most successful places in the world, especially cities, have developed in such a way that they have resilience as a result of having different industries. That even applies to cities in which there was formerly a single dominant industry. We want to work with local leaders to ensure that we strengthen the resilience of our own regional centres.
I welcome the new Front Bench team, particularly the visiting fellow of All Souls, who is appropriately the Minister for the Oxfordshire local enterprise partnership, and the Minister for consumer affairs, who is a brilliant re-tweeter, particularly of my interview in today’s Times.
As part of the industrial strategy, I hope my right hon. Friend the Secretary of State will recognise the importance of science and innovation; in my constituency in Harwell we are a microcosm of the future of Britain, linking science with high tech, and I hope it will feature strongly in his industrial strategy.
It certainly will, and the strength of science, not least in Oxfordshire, is one of our national strengths and it will be at the heart of our strategy.
How will the Secretary of State ensure the future industrial strategy is mindful of Northern Ireland’s particular reliance on EU support and access to the common market?
As I said earlier, we will make sure we work with our colleagues across the United Kingdom. I had a very productive meeting with Simon Hamilton in the summer, to make sure we co-ordinate our efforts with those of policy makers in Northern Ireland. It needs to be joined-up and it will be, and we will make sure our negotiating mandate reflects contributions from across the UK.
I join others in welcoming those on the Front Bench and the creation of a Department that is going to deal with industrial strategy. The country is badly unbalanced at the moment and we will support any realistic thorough-going industrial strategy that is developed.
We know how the strategy has gone over the summer—BHS has gone bust, with 11.000 jobs gone. Sports Direct is paying less than the minimum wage, world-leading company ARM, a home-grown British gem, has been sold overseas—and meanwhile one of the Secretary of State’s Cabinet colleagues has talked down British business, calling our companies fat and lazy, and there is still no clear and unambiguous progress on the steel industry. It has been over two years since the consultation on the steel industry pensions ended. When will the right hon. Gentleman make it clear that the pensions of tens of thousands of loyal and hard-working steel workers will be properly protected?
The steel industry is a very important industry in our country. As the hon. Gentleman knows, I grew up in Teesside where it was particularly prominent. I had some productive discussions in the summer, including visiting south Wales to make sure the Government can give the right support to a sustainable future for the steel industry, and I am happy to make the hon. Gentleman aware of these discussions.
The Department for Business, Energy and Industrial Strategy was formed on 14 July, and it is my great honour to serve as its first Secretary of State. Over the summer, rapid progress has been made in joining up responsibilities for business, energy, climate change, science, innovation and consumer affairs and in creating a new focus on industrial strategy. This is a powerful Department, which is up to the task of promoting a competitive, low-carbon economy that works for everyone. As part of an excellent team of Ministers and officials, I will continue to work both locally and globally on the challenges ahead.
The Swansea bay tidal lagoon, along with Cardiff bay, Newport bay and Bridgwater bay, has the potential to create huge energy, as those bays have the second highest rise and fall of tide in the world. How is the feasibility study going, and when will we get a result? We need long-term funding for a project that will provide 8% of our energy.
My understanding is that the feasibility study is being undertaken. I have not received its final conclusions yet. At that point, I will look at it with the same interest as my hon. Friend.
The European Commission says that Apple should cough up £13 billion in taxes for earnings generated across the EU, including in the UK. Most UK businesses pay their fair share of taxes and expect all other businesses, large or small, to do the same. Will the Secretary of State confirm that he is doing everything he can to ensure that the very biggest companies pay up and that we receive our share of the £13 billion Apple tax pie?
The hon. Gentleman makes a reasonable point. Responsibilities come with being in business in this country, and paying taxes to contribute to the public services that we enjoy is one of them. He has my assurance that we will ensure that we pursue the correct tax from all companies that locate here.
The passion with which my hon. Friend makes his point attests to the opportunities within our approach to industrial strategy to ensure that there is growth across the United Kingdom, including in Yorkshire. He will know that I have taken a great interest in that in my previous roles, and he can be absolutely assured that that interest will not diminish in the months ahead.
I am certainly attached to the work that is done in Sheffield and the highly valued colleagues we have there. The decision was made some time ago, and many changes have been made. As we sort out the responsibilities of different parts of the Department, I will look carefully at what Sheffield can provide.
What further steps can be taken to help make non-commercial community energy schemes viable?
We do need an upgrade across many different forms of infrastructure, and that will have very important benefits to the steel industry, including in Sheffield.
It is hugely encouraging that the Government are developing their comprehensive industrial strategy, which I believe will give a great boost to confidence in our steel industry. Will the Minister update the House on what early discussions he has had with the industry about its role in that?
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.
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?
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.
Many will commend the Secretary of State for putting science, and in particular life sciences, front and centre in his industrial strategy. I wonder whether, as he plans the future of that industry, he could work closely with the Secretary of State for Health, given that the attitude to innovation of the industry’s largest customer, the national health service, will be critical to the industry’s growth in the decades to come?
I certainly will. I was interested to read my hon. Friend’s article in the newspaper earlier this week, which made that point. It is important that the Government take a collective approach, and I have already had discussions with my right hon. Friend the Health Secretary about how we can make the most of the NHS in life science.
Will the Government look again at the unjust 50% Government clawback from the mineworkers’ pension scheme surplus?
I will certainly take that point away, and I am happy to meet the hon. Lady if she would like to inform me about that outside the Chamber.
Does the Department intend to develop a single industrial strategy for the whole country or different industrial strategies for different parts of the country?
My hon. Friend makes a good point. It seems essential to me that we should have a strategy for the whole country, but place is incredibly important, and the challenges of places such as Greater Manchester are different from those of Cornwall. We should reflect more clearly the different strengths and opportunities of different places in how we do business as a Government.
Does the Minister accept that the changes to subsidy for the biomass combined heat and power plants have been brought in too quickly, and that a longer grace period should have been granted before implementation? BSW Timber in my constituency, which is doing what the Government want by investing in renewable technology, stands to lose up to £3 million in support. Will the Minister meet me to discuss these changes and talk about what—
My hon. Friend is right that one of the historic strengths of the United Kingdom is in areas such as marine engineering and power engineering, which are at the heart of the opportunities that exist around the world as many countries look to develop their capacity in renewable energy. That provides a big opportunity, especially for his constituents.
Can the Secretary of State guarantee that all employment protections currently enjoyed by British workers will be maintained after Brexit, and will he back my Bill to do just that?
I welcome the Secretary of State to his place, as I do my hon. Friend the Member for Aberdeen South (Callum McCaig), who I know will be a doughty champion for his new brief.
A new report from Professor Alex Kemp of Aberdeen University suggests that the re-engineering of the UK continental shelf fiscal regime may be necessary before we can reach the North sea’s full potential. What further support will the Government offer the oil and gas sector in the autumn statement?
I had a productive set of discussions with representatives of the oil and gas sector in Aberdeen in the summer. The industry, which is centred in Aberdeen but involves other places in the country, is very important. We have made big changes to the fiscal regime, as the hon. Lady knows, which have been beneficial, but we will continue to have discussions about that.
The Secretary of State described himself earlier as being engaged in an historic task of writing industrial strategy, but surely if he studies history, he will know that industrial strategy is written predominantly by civil servants, and that Ministers tend to fail. What steps will he take to engage businesses in Lancashire to make sure that we have a successful strategy?
I certainly will take such steps, and I am grateful for my hon. Friend’s point. Obviously an industrial strategy for the country should not consist of instructions from Ministers or civil servants to businesses and the rest of the country. We are engaging with businesses across the country and in every sector to ensure that they have the support they need.
Does the Secretary of State believe that it is conceivable that this country could negotiate full membership of the single market without accepting freedom of movement?
The hon. Gentleman entices me into making early decisions on what our negotiating mandate should be. I think the sensible step is to be careful and to put together our negotiating brief, in consultation with businesses in every part of the country.
I welcome the Government’s continuing commitment to the northern powerhouse. Will the Secretary of State meet me and council leaders to discuss how we can maximise the contribution that northern Lincolnshire can make to the project and reap the maximum benefit?
I am always keen to meet my hon. Friend. Despite the fact that I have moved from one Department to another, I hope the invitation to fish and chips in Cleethorpes still stands.
I understand that the Secretary of State has met many businesses over the past few months. Will he list which of those businesses support leaving the single market?
We are putting together the priorities for our negotiation in consultation with businesses in all parts of the country. The hon. Lady will have the chance to contribute to that through the Scottish Government, and we will publish it when we have finished.
We have 50 Airbnb properties in Newark, and Uber has cut the cost of a night out in Nottingham by almost 50%. Will the Secretary of State follow the lead of his predecessor by supporting innovative, disruptive technologies rather than letting us bury our heads in the sand?
Following the recommendation of the Select Committee to remove Paul Newby as pubs adjudicator, new evidence has emerged that shows that he failed to properly declare his interests and also misled the Select Committee. So far, he has refused to resign. Will the Secretary of State now restore confidence in that post by sacking him?
My understanding is that the appointment followed a proper process. That is what I understand to have taken place, but I will look at the suggestions that the hon. Gentleman has just raised.