Oral Answers to Questions

Greg Clark Excerpts

Tuesday 13th December 2016 Commons Chamber

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

6. What his priorities are for the development of the Government’s industrial strategy.

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

Our industrial strategy will help to build an economy that works for everyone. To do that, we will look to drive productivity and growth in all parts of the country. We have already set out steps to deliver this, including, as my hon. Friend the Minister for Universities, Science, Research and Innovation just said, significant funding announcements for science, research and development and infrastructure in the autumn statement.

[Neil Gray]

I thank the Secretary of State for that answer, and I note that he said that the industrial strategy should work for everybody. The Office for Budget Responsibility projects that there will be an additional 500,000 new jobs by 2020, but even if all those jobs were taken up by disabled people, the disability employment gap would still not be halved. Can the Secretary of State explain how the industrial strategy will support achieving the Government’s commitment to halve the disability employment gap by 2020?

[Greg Clark]

The hon. Gentleman makes a good point. It is important that we close that gap, and the Government have made a firm commitment to doing so. He will see when we make our proposals—I hope that he will contribute to them—that part of our purpose is to ensure that people who may have been excluded from the labour market have the skills to enable them to prosper in the future.

[Dr Whitford]

Ayrshire is a beautiful coastal county with areas of both rural and urban deprivation, but with huge potential in the aerospace and pharmaceutical industries. The Scottish Government are supportive of a growth deal to invest in infrastructure and key sectors. Will the Minister meet me to hear the proposal to unlock Ayrshire’s industrial potential?

[Greg Clark]

I would be delighted to meet the hon. Lady. I am proud of the city deals and the growth deals that we have negotiated, including in Glasgow, which is not far away from Ayrshire in the west of Scotland. Ayrshire has a huge amount to offer, and Prestwick is an important asset. I welcome the initiative of the councils in Ayrshire.

[Rishi Sunak (Richmond (Yorks)) (Con)]

May I urge my right hon. Friend to consider creating free ports across the nation? Such free trade zones around our great port cities can simultaneously boost manufacturing, promote regional growth and grow exports—surely, all key ingredients in a successful industrial strategy.

[Greg Clark]

I am grateful to my hon. Friend for his industry. He has published an excellent report for the Centre for Policy Studies, which makes for very good reading. He knows that I am considering it with my colleagues, and I commend him for writing it and putting it forward.

[Richard Fuller (Bedford) (Con)]

As my right hon. Friend develops his industrial strategy, may I give him some friendly advice? Drop the word “industrial” and drop the word “strategy”, and replace them with the words, “competition, innovation and skills policy”.

[Greg Clark]

I am grateful to my hon. Friend for his question. He will see that one of the differences between our approach to industrial strategy and policy—it is important to note that industry, for this purpose, means the services sector as well as manufacturing—and previous approaches is that our approach will not be about simply addressing the needs of incumbents; we want to make Britain the best, the most competitive and the most contestable place for business to locate. I would be grateful if my hon. Friend contributed to it. I think that he will find that it is music to his ears.

[Dame Rosie Winterton (Doncaster Central) (Lab)]

Surely, one of the Secretary of State’s priorities should be the steel industry. Is he aware that Noel Village foundry in Doncaster is being badly affected by reductions in the steel industry supply chain? Will he ask his Department to give urgent advice to the company to see whether anything can be done to prevent it from going into administration, even at this late stage?

[Greg Clark]

I am happy to meet the right hon. Lady about this, but I can give her some news on steel that I think she will welcome. I can announce today that the Government are going to publish their demand for steel, through public sector bodies, to 2020; that will be 3 million tonnes. We are updating the procurement guidelines for steel to include the health service and local authorities and to drop the previous threshold of £10 million for which those guidelines apply. That will be good for the steel industry generally and for all firms within it.

[Mr Philip Hollobone (Kettering) (Con)]

Small-scale manufacturing in firms that often have fewer than half a dozen people is key to the local economy in Kettering and is responsible for a lot of the employment opportunities. Will the Secretary of State make sure that small-scale manufacturers are a key priority in his industrial strategy?

[Greg Clark]

I will indeed. I would commend two things to my hon. Friend. First, we want to make sure that small manufacturers can access the extra funding for research and innovation that my hon. Friend the Minister for Universities, Science, Research and Innovation has described. Secondly, we want to address the ability of small and growing firms to obtain the finance to allow them to grow to the next stage, which is very important in having a vigorous competitive market, as my hon. Friend suggests.

[Callum McCaig (Aberdeen South) (SNP)]

From education to research and development, Scotland’s universities play a key role in boosting our economy across all regions and sectors. With that in mind, will the Secretary of State outline what the role of universities will be in his forthcoming industrial strategy? Will the recently announced new money for R and D be available to Scottish universities?

[Greg Clark]

Yes; universities are very important. We have had a number of very constructive sessions with university leaders and researchers. The hon. Gentleman is absolutely right that science does not recognise boundaries. Universities and researchers in Scotland have a fantastic record of success. In fact, with 8.5% of the UK population, Scotland attracts 10% of UK research funding, which shows that it can prosper and thrive with the new changes we are making on funding.

[Callum McCaig]

Science does not recognise boundaries. Universities Scotland estimates that 10% of research funding comes from the EU and that up to 16% to 20% of staff come from EU nations. With that in mind, will the Secretary of State ensure that, as we exit the EU, Scotland’s universities are not hit punitively by immigration sanctions and the withdrawal of EU funding?

[Greg Clark]

It follows from what I have just said—science does not respect boundaries—that the science community is very global and international. Of course, as the hon. Gentleman would expect, we will in the negotiations reflect the importance of that not just for Scotland, but for the whole United Kingdom.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

The Secretary of State talks about an industrial strategy and those words are in his title, but so far he has shared only bland generalities. Despite the high-profile examples cited, the Institute of Chartered Accountants predicts that business investment will fall by 2.4% in 2017. There are great opportunities for British businesses post-Brexit, but they need leadership, and this climate of uncertainty is toxic to investment. Will the Secretary of State stop playing Scrooge with his assurances, and give British business the Christmas present it wants—an industrial strategy?

[Greg Clark]

A bit of optimism on the part of the hon. Lady would not go amiss, especially in this Christmas season. In fact, there is huge enthusiasm in businesses right across the country and huge engagement with us in developing our long-term policies. Perhaps she has been distracted by some of the events in her party in recent months, so let me summarise the things we have done since July. We have given the go-ahead—she may have missed this—for some very important strategic infrastructure projects: Hinkley Point C, the third runway at Heathrow and the next phase of HS2. We have secured investment in Nissan, close to her constituency, as we announced a month ago. We have ratified the Paris agreement, and we have secured the extra investment that my hon. Friend the Minister for Universities, Science, Research and Innovation talked about. We have done more to put our industrial future on the right footing in five months than the previous Government did in 13 years.

[Bob Blackman (Harrow East) (Con)]

4. What assessment his Department has made of trends in the number of businesses in the UK.

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[Chris Elmore (Ogmore) (Lab/Co-op)]

13. When the joint Steel Council next plans to meet.

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

The Steel Council will next meet in the new year. I will also meet senior steel industry chief executives and the trade union steel committee next month.

[Chris Elmore]

I am sure the Secretary of State will join me in congratulating all those involved in the Save our Steel campaign—especially the Community, GMB and Unite trade unions—on their vital contribution to the recent announcement on Port Talbot and other steel sectors across the UK. I am sure that he agrees that it is trade unionism at its best. Thousands of steelworkers and their families can look forward to a more certain 2017, but one of their real concerns remains their pensions. What will he do to bring forward better plans to ensure that steelworkers’ pensions, as well as their jobs, are protected?

[Greg Clark]

I certainly join the hon. Gentleman in welcoming and congratulating the workforce, trade unions and the employers on their very constructive set of discussions. It is important that the membership is consulted, but this is a positive step forward and he is right that this will provide greater comfort to employees this winter. The hon. Gentleman will know that it is right and proper for the independent Pensions Regulator, rather than the Government, to approve and be content with pensions arrangements. It would be wrong for the Government to intervene in that.

[Chris Green (Bolton West) (Con)]

22. One of the best ways to support the British steel industry is for the Government to invest in infrastructure. Will my right hon. Friend join me in praising the work of Severfield Steel, based in Lostock in my constituency, which is building the world’s first “squashed tennis racket style” railway bridge as part of the Ordsall Chord in Manchester?

[Greg Clark]

I will indeed congratulate Severfield Steel, which is a very successful company, not only on the Ordsall Chord but on winning a global award in recent weeks. It was also responsible for construction of the Olympic stadium, the Shard, and Birmingham New Street station. Many of the buildings that we admire and have in our minds are constructed with British steel by British companies.

[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

While we have recently had some really good news for the steel industry, giving steel workers and their families the stability they need for now, the fact that steel was not mentioned in the autumn statement gives cause for concern. Furthermore, the UK Government’s leading of a group of countries that are blocking the EU reform of anti-dumping trade defence instruments is another serious issue for the industry. Will the Secretary of State commit to including the steel industry in the future industrial strategy, and detail the steps that the Government will take to support this vital foundation industry?

[Greg Clark]

Of course steel is incredibly important, and it is important that it should have a bright future—we all want to see that. One thing I have been doing with the Minister for Climate Change and Industry, working closely with the steel industry on both the employer and trade union side, is to fund and bring together a strategic review, and the whole industry is coming together to work on it. That is expressly designed to inform our industrial strategy, so that we can look forward with confidence to a very successful steel industry.

[James Morris (Halesowen and Rowley Regis) (Con)]

14. What recent assessment he has made of the effectiveness of local enterprise partnerships.

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[Neil Carmichael (Stroud) (Con)]

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

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

Over the last month we have made substantial progress across the Department’s responsibilities. Our recently published review of corporate governance will make sure Britain is not only an excellent place to do business, but also is where business is done best. We continue to tackle climate change, ratifying the Paris agreement. My hon. Friend the Minister for Climate Change and Industry played an important part in the climate discussions in Marrakech, and he and I had the great pleasure of opening the Siemens wind turbine factory in Hull, creating 1,000 new jobs in that great city. By providing an additional £2 billion a year for research and innovation by 2020 and giving British homes and businesses certainty that their electricity demands will be met for the next five years, we are investing in our country’s economic future.

[Neil Carmichael]

That was a fabulous introduction to my question about the Hendry review. I know the Government have received the review, and I am confident that it makes some clear and useful recommendations, so I would like to know whether the Government intend to make it public soon, and what are their thoughts about some of Charles Hendry’s comments and recommendations?

[Greg Clark]

I am grateful to my hon. Friend for his question, and would like to put on record my gratitude to Charles Hendry for writing his report. It is important that it is published soon. Charles Hendry is travelling at the moment, but as soon as he is back I will agree with him a date to publish it and he can answer questions on it. It is a substantial document and my hon. Friend will understand that we will want to consider it and make our response in due course.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

T5. New research from Edinburgh university finds that electricity generation from wind farms cuts even more greenhouse gas emissions than previously thought: almost 36 million tonnes over six years, the same as taking 2.3 million cars off the road. Meanwhile the Government’s own figures predict their renewables cuts will see 63 million tonnes more CO₂ being released into the atmosphere. Will the Minister clarify how the Government plan to continue cutting emissions, as the Leader of the House confirmed to me last week regarding ongoing commitments to climate change targets, while bringing in policies that will bump them up?

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[Jason McCartney (Colne Valley) (Con)]

T4. With engineering and textiles doing particularly well in Huddersfield and Colne Valley, will the Department continue to commit to an industrial strategy that builds on our regional economic strengths?

[Greg Clark]

We certainly will. It is important that the industrial strategy and business policy recognise the strengths of particular places. Yorkshire is a particularly fine example.

[Mr Iain Wright (Hartlepool) (Lab)]

Two weeks ago, GB Energy ceased trading, affecting 160,000 customers. Credit must go to Ofgem for ensuring that those customers were promptly transferred to another supplier, but does the Secretary of State believe that the regulator’s approach to risk management needs to change? Instead of carrying out little or no assessment of the viability of new entrants and then picking up the pieces if they fall, more rigorous financial health checks need to be undertaken to minimise the risk of failure, disruption to customers and a loss of confidence in switching to new energy providers.

[Mr Speaker]

The hon. Gentleman can now breathe.

[Greg Clark]

I am grateful to the hon. Gentleman. Like him, I commend Ofgem for the arrangements that it put in place. He raises a reasonable point, and as Chairman of the Business, Energy and Industrial Strategy Committee he will want to work with me to ensure that the right arrangements are in place.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

T6. Will my hon. Friend ensure that those who benefit from self-employment are aware of the different kinds of national insurance contributions? Will she also ensure that they pay the correct NI class, so that they are able to access the full range of support available to other types of jobseeker in the event that they re-enter the jobs market?

[Stephen Kinnock (Aberavon) (Lab)]

The energy-intensive industries compensation scheme is due to end in April 2017. The Government have promised to bring forward legislation to exempt energy-intensive industries from renewable obligations and feed-in tariffs, but we are still waiting for that to happen. As things stand, the steel industry is therefore looking down the barrel of having to go back to the crippling energy costs it faced until the compensation package was introduced. Will the Secretary of State assure us that measures will be put in place before April 2017 to ensure that we do not go back to that situation?

[Greg Clark]

The discussions we have had with the steel sector emphasise the importance of energy costs, and our commitment is to work with the sector to bring them down.

[Philip Davies (Shipley) (Con)]

T8. Skills have been removed from the Department’s portfolio, yet for many businesses in the Bradford district access to talent remains a key challenge. So how will the Secretary of State ensure that education policy dovetails with his Department’s priorities to ensure that businesses have access to the skills they need?

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[Bob Blackman (Harrow East) (Con)]

T9. Now that the future of Hinkley Point is secure, what further plans does my right hon. Friend have for nuclear energy to form a key part of our energy supply industry?

[Greg Clark]

It is important that nuclear energy should form a key part of that. One of the pieces of neglect of the previous Labour Government is that they presided over the forecast closure of our nuclear fleet without making any plans to replace it. When I made the statement about Hinkley Point C, I also said that this would be the beginning of a new era of civil nuclear power in this country, and that is absolutely right.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

In the week when we saw a great deal between Tata Steel and the Community trade union, largely down to Roy Rickhuss and the return of Ratan Tata, we also saw the merger of Baosteel and Wuhan Iron and Steel. What risk assessment has the Department made of market economy status for China and its effects on the British steel industry?

[Greg Clark]

I join the hon. Gentleman in paying tribute to both Ratan Tata and Roy Rickhuss, as both the company and the unions have worked constructively together, and the progress is welcome. I have, with the Minister for Climate Change and Industry, a very regular dialogue with both employers and trade unions. As the hon. Gentleman knows, we have been active in making sure that we have the right trade defences against practices where countries dump steel unfairly in the UK market.

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[Graham Evans (Weaver Vale) (Con)]

INEOS, Tata Chemicals and Banner Chemicals in my constituency provide high-quality, high-wage, high-skilled jobs. What consideration has been given to energy price competiveness in respect of our European neighbours, as a more competitive energy price would disproportionately benefit the northern powerhouse?

[Greg Clark]

As I said to a number of hon. Members, the energy prices that are paid by businesses generally, and by energy-intensive industries in particular, are a crucial part of competitiveness, and we want to work with these industries to reduce the costs.

[Peter Kyle (Hove) (Lab)]

Nissan has benefited from a pre-Brexit deal. What reassurance can the Secretary of State offer Brighton-based businesses such as American Express and EDF that, after Brexit, they will still be able to have an open and free relationship with the EU?

[Greg Clark]

American Express is a very important employer in Brighton, and it is very welcome here. It has located itself in this country because Britain is a fantastic place from which to do business. That is the message that I receive wherever I travel to in the world. There is great appetite to invest in Britain, and the hon. Gentleman will know of our recent success stories. I hope that American Express will continue to invest more and employ more in his constituency.

[Martin Vickers (Cleethorpes) (Con)]

Following the collapse of the Greater Lincolnshire devolution deal, the LEPs in Humber and Greater Lincolnshire take on a greater significance, but there is concern that some central Government funding may be lost as a result of the collapse of the deal. Will my right hon. Friend assure me that the LEPs will be used to channel the funds from his Department when suitable projects are identified?

[Greg Clark]

As my hon. Friends on the Front Bench have said, we regard local growth as a very important component of our industrial strategy, and my hon. Friend knows that I have been a big champion of local growth, so I want to see more of that. Obviously, certain offers were part of the proposed deal, but these deals are never compulsory, and if the councils and the businesses do not want to proceed then it is a matter for them.

[David Simpson (Upper Bann) (DUP)]

Does the Secretary of State agree that, as part of the industrial strategy, the future development of enterprise zones will be of great economic benefit, especially to the manufacturing sector?

[Greg Clark]

I agree that enterprise zones have been successful. They have provided some tax advantages and, in many cases, a simplified regulatory environment, which is very attractive to businesses. Their experience commends them.