Oral Answers to Questions

Greg Clark Excerpts

Tuesday 8th November 2016 Commons Chamber

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

11. What steps his Department has taken to develop a long-term strategy for business growth since the UK’s decision to leave the EU.

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

We are creating a business environment that supports growth and investment by cutting corporation tax, by investing in infrastructure, by expanding our world-beating science, research and innovation activities, by increasing the number of apprenticeships, and by devolving power all across Britain. Our industrial strategy will build on these strengths, and we will work with industry, local leaders, investors, workers and consumers to build the conditions for future success.

[Carol Monaghan]

In Scotland, skills shortages in key areas have proved challenging when businesses are seeking to grow. The post-study work visa remains an important lever for promoting innovation and growth. Does the Secretary of State agree that it is now time to extend the post-study work visa pilot to include Scottish higher education institutes?

[Greg Clark]

It is important that we attract the world’s brightest and best students to our fantastic universities, and all of us in the Government have a commitment to that. We have visa arrangements in place so that people can work in graduate jobs after that, and it is important that they should be able to do so.

[Stuart C. McDonald]

Up to 100,000 jobs across the UK will be at risk if Brexit causes London to lose euro-denominated clearing business. The loss of that clearing business will also mean the loss of much of the financial markets’ infrastructure. What urgent action are the Government taking to stave off these dangers?

[Greg Clark]

I am glad to hear that question from the hon. Gentleman, because it is true that the success of the financial services is not just about the City of London, but extends across the whole United Kingdom and, of course, Scotland. That is why it is important, in our negotiations, that we achieve the best possible deal to allow financial institutions, wherever they are in this country, to continue to trade freely across the EU.

[Sir Desmond Swayne (New Forest West) (Con)]

Can I put in a plug for free markets and laissez-faire as the best long-term strategy?

[Greg Clark]

My right hon. Friend does not need to make a plug for that. It is free markets and the knowledge that this is a competitive place to do business that accounts for our world-beating status in the G7 at the moment.

[Callum McCaig (Aberdeen South) (SNP)]

The Government regularly, and in my view rightly, promote the aviation and automotive sectors as future areas of growth in the UK economy. The world-class oil and gas industry, and particularly the exceptional supply chain, which, while centred in Aberdeen, stretches the length and breadth of the UK, is another area ripe for international development and diversification. When developing his industrial strategy, will the Secretary of State make sure that oil and gas is right at the heart of it?

[Greg Clark]

I will indeed. I have visited Aberdeen already, as the hon. Gentleman knows, and I had a very fruitful conversation with not only the oil and gas industry there, but the Aberdeen chamber of commerce. It is important that this area of great strength for the UK is built on and that we extend those strengths, so that the industry can be competitive in the future.

[Callum McCaig]

I thank the Secretary of State for that answer, and I look forward to progress on that issue. However, whether it is oil and gas, food and drink, or the financial services sector, the attraction and retention of talent, much of which comes from elsewhere in the European Union, is absolutely central to that future. Businesses, I am sure, are saying the same things to me as they are to him. Will he ensure that we protect the status of EU nationals in discussions about leaving the EU?

[Greg Clark]

Yes. The Prime Minister and my colleagues have been very clear about that. Of course we want people from the European Union who are here to continue to stay, but it is important that this is part of the discussions that we have to make sure that the rights of UK residents overseas are also recognised.

[Peter Aldous (Waveney) (Con)]

My right hon. Friend is quite right to address the importance of the oil and gas industry to Scotland, and it is also important to East Anglia. In the North sea, there are significant tax issues, which are making it harder to transfer some assets to new investors due to their near-term exposure to decommissioning. Will he liaise with his colleagues in the Treasury to come forward with proposals in the autumn statement to remove this constraint to much- needed investment?

[Greg Clark]

My hon. Friend will recognise that, over recent years, there has been considerable progress and agreement between the sector and the Treasury to ensure that we have the best possible tax regime for the UK continental shelf. That will continue, and we will make sure that the regime remains competitive.

[Clive Lewis (Norwich South) (Lab)]

Our economy is desperately in need of more long-term strategic thinking, decision making and far less reliance on free markets and the laissez-faire approach that was mentioned earlier; I am grateful for the Secretary of State’s response to his colleague’s comments. Yet for many businesses the long term is currently a “maybe” rather than a certainty, as the uncertainty arising from Brexit places investment and survival in grave doubt. Will the Secretary of State give all companies the Nissan treatment and say how he will support all our businesses and industries through Brexit?

[Greg Clark]

I am disappointed with that question. Perhaps it was rewritten by Seumas Milne when the hon. Gentleman was not looking—that might account for it. He knows very well that I will be vigorous and active right across the economy in promoting Britain as a good and competitive place to do business. That is our responsibility in government, and no one will discharge it with more vigour than me.

[Mark Pawsey (Rugby) (Con)]

12. What steps his Department is taking to increase opportunities for the development of small businesses.

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[Kevin Hollinrake (Thirsk and Malton) (Con)]

14. What steps his Department is taking to support the growth of businesses in the north of England.

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

Our investments in the northern powerhouse continue to support the growth of businesses in the north and are helping to build an economy that works for all.

[Kevin Hollinrake]

Work on Yorkshire’s largest economic project—a potash mine on the North York Moors—and the drilling of the UK’s first shale gas well since 2011 are both planned to commence early in 2017, but much of the associated traffic will travel down a single lane of the A64. Will the Secretary of State agree to meet me and representatives from the Department for Transport and the Treasury to see how we can make sure we have the necessary infrastructure upgrades to support those key economic developments?

[Greg Clark]

It would be a pleasure to meet my hon. Friend. One of the reasons why we have created the local enterprise partnerships and the growth deals is to make sure that the investment in infrastructure can go alongside economic development, and that is a big step forward.

[Kate Green (Stretford and Urmston) (Lab)]

19. Businesses in the north-west of England have expressed to me their concern about Ofgem’s announcement that local generators will no longer receive embedded benefits, which reflect their local generation and transmission. There has been no consultation on these proposals. Will the Secretary of State undertake to consult local businesses before any changes are introduced?

[Greg Clark]

The hon. Lady knows that when it comes to energy, it is very important that we have regard to the costs that are incurred by consumers, whether they are private residential consumers or businesses. That is why these decisions have to be taken to contain the costs that would be on bills.

[Edward Argar (Charnwood) (Con)]

15. What steps his Department is taking to ensure the increased use of clean and reliable energy sources.

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[Stuart Andrew (Pudsey) (Con)]

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

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

In the first 100 days since the Department for Business, Energy and Industrial Strategy was created, we have made substantial progress across all our responsibilities. We have confirmed Hinkley Point C, the first new nuclear power station for a generation. We have seen British engineering praised following Nissan’s decision to produce the Qashqai and the X-Trail at its Sunderland plant. We have ratified the Paris agreement on climate change to keep the global temperature rise to below 2° C. With the national minimum wage increasing and the number of UK businesses at a record high, this Department is investing in our long-term industrial growth in an economy that works for everyone.

[Stuart Andrew]

This week, a delegation from the University of Leeds is focusing on encouraging research partnerships with businesses and academics in India, as part of the Prime Minister’s visit. Will my right hon. Friend join me in commending Leeds University and businesses in the city for helping to build a reputation for the city as an excellent centre for learning and innovation?

[Greg Clark]

I will indeed join my hon. Friend in congratulating the University of Leeds. In fact, I initiated this week’s tech summit in India during a visit to India two years ago, so I am delighted that it is taking place. I took a party of vice-chancellors with me on that occasion. He is absolutely right that Leeds plays a formidable part in the scientific excellence of the north.

[Clive Lewis (Norwich South) (Lab)]

I can assure you, Mr Speaker, that no walls or media devices have been harmed in the formulation of this question—nor have they ever been.

In the light of the enthusiasm for workers’ rights expressed in yesterday’s debate by the Secretary of State, will he join me in offering his support to delivery riders? These workers are seeking union recognition as part of their fight against bogus self-employment and to secure employment rights, such as sick pay and holiday pay. Will he commit his Government to helping in whatever way they can?

[Greg Clark]

The hon. Gentleman might have noticed that we have commissioned a review of these new employment practices, which Labour did not do when it was in government. There is perhaps a problem for him in that the review is being led by Matthew Taylor. I do not know whether the former head of the policy unit under Tony Blair counts as a person he trusts with the review; nevertheless, he is engaged with the review and will report to the Government and to the House.

[Mark Pawsey (Rugby) (Con)]

T2. Returning to the Swansea Bay tidal lagoon project, does the Minister agree that a decision to proceed, making use of expertise in power generation provided by GE Energy in Rugby, would provide an opportunity for the UK to become a leader in this sector?

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

T3. I have always got on very well with the Secretary of State, but may I ask him not to be complacent? I have just been to a meeting of the leaders of Russell Group universities, who are saying that the sector is in meltdown post-Brexit in terms of staff, students, and research and innovation. What is the plan? I am known for asking, “What’s the plan, Stan?” What is his plan to put this right?

[Greg Clark]

Our universities and scientific institutions continue to be the best in the world. We are opening the Francis Crick Institute this very week, which is an emblem of our leadership in this sector. As the hon. Gentleman will see as we discuss our industrial strategy in the weeks and months ahead, I am determined that reinforcing the position of scientific excellence and innovation will be central to our economy and to how we project the strategy forward.

[Edward Argar (Charnwood) (Con)]

T6. A key factor in the success of any industrial strategy is the ability of business and industry to access the communications and technical infrastructure they need to succeed. What steps is the Secretary of State taking to ensure such access?

[Greg Clark]

My hon. Friend is absolutely right. If we are to maintain and build on our position of excellence, we cannot be complacent about supporting infrastructure, including digital infrastructure. In my view, it needs an upgrade.

[Stephen Timms (East Ham) (Lab)]

T5. The digital economy makes a big contribution in the UK, including in east London, with 43% of its exports going to other EU states. How do the Government plan to protect those exports after we have left the EU?

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[Angela Smith (Penistone and Stocksbridge) (Lab)]

T8. Ministers spoke earlier about securing the best possible trade deal for the UK in the context of Brexit, but what evidence does the Secretary of State have that a new UK-EU trade agreement can be completed within two years? Do the Government accept that if such an agreement is not possible, an interim transitional arrangement will be required?

[Greg Clark]

We first have to make sure, through consultation with business, industry and other groups across the country, that we get our negotiating mandate informed and right. Then we need to begin the negotiations, and then we can make those judgments.

[Chris White (Warwick and Leamington) (Con)]

Will my right hon. Friend confirm that he will publish discussion papers on the industrial strategy as soon as possible and that they will reflect contributions made by Members who took part in the recent debate in the House?

[Greg Clark]

I will indeed. I thank my hon. Friend and other hon. Members, including members of the Business, Energy and Industrial Strategy Committee, which is doing an inquiry into this. If an industrial strategy is to endure in the long term, it needs to be rooted in as great a consensus as can be achieved around it, and of course that will include contributions from Members of this House, and organisations and individuals outside it. I will engage them in those discussions over the months ahead.

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

T9. Thousands of Marks & Spencer staff will be worried this morning by the announcement of the threat of closure facing 60 branches that have not been identified. In the light of the disgraceful treatment of BHS staff, what more can the Minister do to encourage Marks & Spencer to consult and engage fully with staff trade unions at the earliest opportunity?

[Dr Daniel Poulter (Central Suffolk and North Ipswich) (Con)]

Many people in Suffolk welcome plans for a Sizewell C power station, but would the Minister not agree that it is vital that with those plans come the requisite improvements in rail and road infrastructure? Importantly, that includes looking at the pinch points on the road around the four villages of Stratford St Andrew, Farnham, Little Glemham and Marlesford.

[Greg Clark]

My hon. Friend is absolutely right. One of the changes that we have made, through the growth deals and local enterprise partnerships, has been to bring major investment in line with major infrastructure improvements.

[Caroline Lucas (Brighton, Pavilion) (Green)]

T10. Government delays mean that almost two years have passed since the last contract for difference auction in support of offshore wind. That situation is under- mining investor confidence. Will the Minister confirm that the next offshore wind auction will take place no later than January next year?

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[Robert Flello (Stoke-on-Trent South) (Lab)]

Our wonderful resurgent ceramics industry, which produces high-tech cutting-edge ceramics for the future generations, is carefully watching the Government’s Brexit plans. What discussions is the right hon. Gentleman and his Department having with the Secretary of State for Exiting the EU about trade barriers, protectionist dumping by the Chinese and the wider needs of the ceramic industry?

[Greg Clark]

The hon. Gentleman is absolutely right that ceramics is a major source of competitive advantage for this country. Whenever I am in Stoke-on-Trent and the potteries, I am always impressed by the innovation that is going on there. Of course, the ceramics industry will be very well represented around the table as the Cabinet Committee considers Brexit.

[Michael Fabricant (Lichfield) (Con)]

There are so many advantages to Brexit that I do not know where to begin, but one of them is that we will be able to provide state aid, which we are forbidden from doing at the moment. Has my right hon. Friend considered that particular area of support?

[Greg Clark]

I want our economy to be as competitive in the future as it is now, without the need for state aid to keep it so. It is on the basis of our strengths in innovation, the talent of our workforce and the industries in which we are competitive that I want us to compete with the best in the world.

[Peter Kyle (Hove) (Lab)]

During the Select Committee visit to the Shirebrook facility of Sports Direct yesterday, the positive seeds of change that we witnessed on the frontline regarding workers’ rights in the facility were contradicted by control-freakery and the surveillance of the MPs on that trip, which completely ruined all the positive things that have been happening there. We saw the surveillance of a private meeting of MPs. Does the Secretary of State agree that there is no place for this kind of behaviour in the senior parts of big business in this country, which should be outward looking and engaging with the community, not surveilling it?

[Greg Clark]

I agree with the hon. Gentleman. I find what has been reported this morning to be extraordinary, especially for a company that has made declarations that it wants to improve its reputation and image. I merely point out that I do not think that this practice is representative. The practices in that company that the Select Committee has uncovered should not be taken as representative of the very high standards of behaviour that almost every company in Britain adheres to.

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[Mr David Hanson (Delyn) (Lab)]

Will the Secretary of State look urgently at today’s announcement by the Royal Bank of Scotland on its funding of repayments to small businesses? Will he produce a report on the Government’s response and place it in the Library, so that we can see the Government’s view of this approach by RBS?

[Greg Clark]

I have not seen the report. I will have to consider it and I will then, of course, write to the right hon. Gentleman with my reaction to it.

[James Heappey (Wells) (Con)]

I commend to the Secretary of State and his team the final report of the Energy and Climate Change Committee, and particularly our recommendations on energy storage and demand-side management. I encourage my right hon. Friend to enact some of those recommendations, so that we can upgrade our energy system.

[Greg Clark]

My hon. Friend provides me with an opportunity to thank all members of that Select Committee for their forensic work during its time in this House. It made very valuable contributions to public policy, and I know that its successor Committee will continue the high standard that it set. I will indeed pay close attention to the recommendations of the final report.

[Chris Bryant (Rhondda) (Lab)]

The restoration and renewal of this building will be a multi-billion pound infrastructure project, but all the evidence suggests that at the moment this country does not have the skills to be able to deliver it. I urge the Secretary of State to set up a specific industrial strategy to get more colleges up and down the country engaged in training people for major infrastructure and construction businesses, so that we can make sure that every single one of our constituents has an opportunity to work here?

[Greg Clark]

The hon. Gentleman is absolutely right. As we acquire what I hope will be growing order books for UK companies and businesses, we will be able to fulfil them by having a workforce that is trained and skilled to the right level. The hon. Gentleman illustrates that very well.