Oral Answers to Questions

Greg Clark Excerpts

Tuesday 14th March 2017 Commons Chamber

[Justin Tomlinson (North Swindon) (Con)]

5. What steps he is taking to support growth in the UK space sector.

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

The UK’s space sector is world leading. A quarter of the world’s telecommunication satellites are either built here or are built with key UK components. Our recently announced draft Spaceflight Bill will enable UK businesses to enter a global market worth an expected £25 billion over the next 20 years. Our industrial strategy will ensure that we build on that and continue to be a global leader in this very important sector.

[Justin Tomlinson]

Many people think that my constituency, North Swindon, is out of this world, and they are not wrong, as we are home to the UK Space Agency. Will the Secretary of State therefore tell me how the upcoming Spaceflight Bill will enable the UK to build on its strengths in science, research and innovation?

[Greg Clark]

North Swindon has a stellar Member of Parliament, too. The space sector is one of our most important industries, and the Spaceflight Bill, in particular, will move us forwards and enable us to be in the business not only of manufacturing satellites but of launching them, which will give us further industrial opportunities from which not only Swindon but the whole UK can benefit.

[Ian C. Lucas (Wrexham) (Lab)]

The collaborative approach of the UK aerospace sector is one of the lessons that the Government need to remember in the difficult years ahead. Will the Secretary of State please come to one of the most important aerospace sectors in the country in north-east Wales to see its excellent work and the potential threats to one of the most successful industries in our country?

[Greg Clark]

The hon. Gentleman is absolutely right. One of the reasons why the space and satellite sector has been so successful is the collaboration between the firms, the Government and the research institutions, which is the way forward. The Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman), will visit north Wales and the facilities that the hon. Member for Wrexham (Ian C. Lucas) mentions, and I look forward to hearing all about it.

[Mr Steve Baker (Wycombe) (Con)]

18. As someone who has calculated inertia matrices and Hohmann transfers, I am pleased that the Government are focusing on this area. What assessment has the Secretary of State made of the capacity of the UK’s commercial space flight sector? What steps will he take to support it?

[Greg Clark]

I am glad that my hon. Friend is not questioning me on inertia ratios and matrices. The capacity is there, but it requires planning ahead. That is why the industrial strategy mentions the need to invest in science and research and development—it is important that we do that—and the need to look forward to make sure that we have the skills in the workforce to fulfil the order books. The purpose of having a long-term industrial strategy is so that we are prepared to reap those very opportunities.

[Carol Monaghan (Glasgow North West) (SNP)]

6. What support his Department is providing to small businesses as a result of the UK’s decision to leave the EU.

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

13. What assessment he has made of the potential effect of the Government’s industrial strategy on the west midlands.

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

Last week, we published the midlands engine strategy. It is further demonstration that this Government are committed to investing in the midlands, a region that has seen over 180,000 more people in employment since 2010.

[Lucy Allan]

I thank the Minister for his reply. Telford is seeing increasing inward investment from businesses in the automotive supply chain such as Polytec and Magna’s Cosma, bringing real jobs and growth to Telford. Does he agree that Telford, with its reputation for innovation and advanced manufacturing, is set to play a key role in the midlands engine strategy, and will he congratulate those businesses on helping to build a successful future for Telford?

[Greg Clark]

I will indeed. My hon. Friend’s constituency, which includes Coalbrookdale, has a good claim to be the cradle of the first industrial revolution—[Interruption.] It is perhaps a disputed claim, but I think Abraham Darby, in 1709, was fairly early. However, now, Telford is at the heart of the fourth industrial revolution, as my hon. Friend says. The T54 site is proving to be a very important location for automotive sector supply chain.

[James Morris]

Does the Secretary of State agree that one pivotal thing that needs to be in an industrial strategy for the west midlands is closing the skills gap that has held back the west midlands for too long, so that areas such as the black country can continue to work to become leading specialists in things such as aerospace, automotive and advanced manufacturing, which are critical to the agenda of the Conservative candidate for west midlands Mayor, Andy Street?

[Greg Clark]

I agree with my hon. Friend—he is absolutely right. The reputation of the black country is very strong. There is the phrase

“Made in the Black Country, Sold around the World”,

but to fulfil that we need good skills. Andy Street, being a person of great business experience, is the best person available to bring that business acumen to bringing more businesses to the whole of the west midlands.

[Mr Speaker]

Order. This is supposed to be about an industrial strategy, rather than an electoral strategy, but there you go.

[Rob Marris (Wolverhampton South West) (Lab)]

In passing, may I say that it was the black country that was the birthplace of the industrial revolution, not Coalbrookdale? However, on transport spending, which is key to the industrial strategy for the west midlands, when does the Secretary of State expect to persuade his colleague the Secretary of State for Transport to spend as much per capita in the west midlands as in London?

[Greg Clark]

The hon. Gentleman, who is an assiduous reader of these things, will see that, in the industrial strategy, we propose a commitment to upgrade infrastructure right across the country. I hope he will respond to that so that when we have the Budget later in the year, we will be in a position to make further such announcements.

[Craig Tracey (North Warwickshire) (Con)]

24. What role does my right hon. Friend see the self-employed, particularly those in my constituency, playing as the industrial strategy develops?

[Greg Clark]

The self-employed have an important role to play. One trend that colleagues on both sides of the House will know of is that the development of supply chains is one of the key sources of innovation in many industries. Within that, start-up businesses, including those run by the self-employed, can make a big contribution to making us attractive for jobs and new businesses.

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

12. If he will make an assessment of the effectiveness of his sector-based approach in delivering the aims of the Government’s industrial strategy.

[Louise Haigh (Sheffield, Heeley) (Lab)]

16. What steps the Government is taking to ensure that all sectors of the economy benefit from its industrial strategy.

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

We have had great success over the years in developing key sectors, including aerospace and the automotive sector. To build on this, we have set out proposals for new business-led sector deals in the industrial strategy. The first set of deals is already under development. We are taking steps to drive growth in sectors across the economy, including with funding for science, infrastructure and technical education.

[Christian Matheson]

Does the Secretary of State share my concern that the implementation of an industrial strategy led by the big players will focus solely on the big players? What is he doing to ensure that the small and medium-sized enterprises in those sectors, which are often the engine rooms, get their fair say and their fair share?

[Greg Clark]

I assure the hon. Gentleman that that is not the case. I have regular discussions with the Federation of Small Businesses, the British Chambers of Commerce and smaller businesses right across the country. The supply chain, and making our country more attractive to supply chain businesses, are absolutely foundational to our industrial success, and that involves a particular regard for small businesses.

[Louise Haigh]

Cyber-security is one of the most important sectors for this country’s growth, but the UK has the highest skills gap in cyber-security in the world. Does the Secretary of State think that the Government’s current commitment to educate 1% of our students in cyber-security by 2021 is anywhere near good enough?

[Greg Clark]

The hon. Lady makes a very good point. If we are to take advantage of the opportunities that exist, we need to upgrade our technical education. That is why in last week’s Budget the Chancellor made such a clear commitment, prominent in the industrial strategy, to transform the level of technical education, including to increase by 50% the hours of tuition that are available. Cyber-security is one of the areas in which I would expect that to be applied.

[Lucy Frazer (South East Cambridgeshire) (Con)]

20. I welcome the £90 million that the Chancellor has given in the Budget for PhD places. Has the Secretary of State determined how they will be distributed and whether the academically excellent area of Cambridgeshire will benefit from this funding?

[Greg Clark]

Yes. I would expect all competitive areas to make a bid for these places. The University of Cambridge and Anglia Ruskin University in Cambridgeshire, and other institutions more broadly across the country, will be in a good position to benefit from that.

[Andrew Stephenson (Pendle) (Con)]

21. The aerospace sector is of vital importance to the economy in the north-west of England. In December, I was delighted to take part in a ground-breaking ceremony at Rolls-Royce in Barnoldswick ahead of its £50 million expansion of its Pendle site. How can the Government’s industrial strategy help to further the growth of our aerospace sector?

[Greg Clark]

My hon. Friend is absolutely right. This is an important sector, as has been evident from our discussions this morning. That reflects the track record of working together that will continue and be reinforced. I think that all Members across the House will have been as delighted as I was that Boeing made its commitment to its first ever UK plant in Sheffield, showing how attractive we are to advanced manufacturing businesses such as that.

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

The BEIS Committee’s recent report stated that the industrial strategy Green Paper

“provides little clarity on how…sectoral deals will work in practice”,

and that it appears to lack “political will”, falling short of

“providing a clear framework for decision making in the long term.”

Is it lack of clarity or lack of political will that has led to a bespoke Brexit deal for certain manufacturers while leaving others, and indeed other industries, in a state of uncertainty?

[Greg Clark]

May I welcome the hon. Lady to her first BEIS oral questions? I see her predecessor behind her. She is, I think, my third opposite number in the eight months that I have had this job. The first was appointed in the summer, the second in the autumn, and she was appointed in the winter. I noticed this week that the birds were singing and the sun was out, so I hope that is not bad news for the hon. Lady. On her points about the industrial strategy, the sector deals that we have proposed have been widely welcomed. We have set out a number of initial deals in, for example, life sciences and the creative industries. We are already talking to other sectors such as the steel sector, and a lot of colleagues in the House will want to see that taken forward.

[Rebecca Long Bailey]

Oh, the Secretary of State is cheeky! He might want to refer to the report, because it also states that the White Paper on exiting the EU failed to meaningfully refer to an industrial strategy

“and reinforces a lack of coordination between the Government’s major challenge and its principal plank of business policy.”

Given that last week’s Budget failed to mention Brexit or the industrial strategy, does the Secretary of State agree with the recent Foreign Affairs Committee report that the Government have provided “no evidence” of industrial contingency planning in the event of no deal? If that is so, what is his no deal plan?

[Greg Clark]

I say gently to the hon. Lady that she will have to do a bit better than that. I have the Budget here. She says that it does not mention the industrial strategy. I can tell her that it is mentioned in the first paragraph on the first page, and throughout. Given her interest in this, she ought to read the Budget.

[Mary Robinson (Cheadle) (Con)]

15. I am keen that the north-west should play its part in the Government’s industrial strategy to drive up competitiveness in our area. How can small businesses play their part in my area?

[Greg Clark]

In my hon. Friend’s area, as in every area of the country, the opportunities for the supply chain to be attracted to and to locate in this country—to supply the major manufacturers and service providers, but also to export around the world—is one of the key themes emerging from the sector deals that are being negotiated.

[Pat Glass (North West Durham) (Lab)]

19. What recent steps his Department has taken to promote renewable energy.

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

23. If he will make it his policy to increase competition within the energy supply market; and if he will make a statement.

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

I will respond shortly to the Competition and Markets Authority report, and I will take steps to increase competition and help consumers.

[Sir Desmond Swayne]

If the Secretary of State is successful in engendering much greater competition, will we need a regulator at all?

[Greg Clark]

The aim of Government policy must be to have such vigorous competition in markets that that takes care of itself. Unfortunately, I do not think we are in that position, so I am determined to make sure that customers are treated fairly.

[David Rutley (Macclesfield) (Con)]

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

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

As well as continuing the consultation on our industrial strategy Green Paper, we are acting on its diagnosis. Last week’s Budget set out our plan to transform technical education—increasing the hours students are taught by 50%, increasing funding for technical education by £500 million a year and establishing new institutes of technology. We announced in the Budget the first £270 million of projects under the industrial strategy challenge fund, including a world-leading investment in the development, design and manufacture of batteries to power the next generation of electric vehicles, and we announced a £100 million fellowship fund to attract the world’s brightest minds to come and work in the United Kingdom.

[David Rutley]

I am pleased that my right hon. Friend is planning to visit AstraZeneca’s Macclesfield site, the largest pharmaceutical site in the United Kingdom, in the near future. Will he tell the House what plans the Government have to support the life sciences further as part of its northern powerhouse strategy?

[Greg Clark]

My hon. Friend, who is a great champion of the life sciences as well as of the Cheshire economy, knows that the opportunity to negotiate a sector deal for life sciences, which is being led by Sir John Bell, will be good for the whole country, but will have particular relevance to Cheshire and Macclesfield. I am looking forward to visiting his constituency to see the facilities for myself.

[Ian Austin (Dudley North) (Lab)]

T2. Will the Secretary of State join me in congratulating the greatest evening newspaper in the country, the Express & Star, and the brilliant work of Wolverhampton University, which have launched the green shoots scheme? The scheme has now successfully distributed £4 million of regional growth fund money, supporting 65 businesses, creating or protecting 600 jobs and, extraordinarily, generating over 11 million in private sector investment to support businesses in places such as Dudley. Contrary to what he said earlier, everybody knows that Dudley was the real birthplace of the industrial revolution.

[Greg Clark]

Having dipped my toes into controversy by talking about places with claims to be the cradle of the industrial revolution, I am certainly not going to nominate the best local newspaper in the country—suffice it to say that I gather the Foreign Secretary began his illustrious career on the Express & Star, although I do not know whether that shows its prescience, or whether it has recovered from that particular judgment. Local newspapers make a vital contribution to the success of local business, and I am delighted to hear about the initiative that the Express & Star is promoting.

[Kelly Tolhurst (Rochester and Strood) (Con)]

T4. Since 2010, my constituency has seen 8,800 apprenticeships started across many sectors, and very soon I will be hosting my first apprenticeship fair, bringing together local students and businesses. Will the Minister outline what steps he is taking to encourage more small businesses to engage with apprenticeships and take on more apprentices in places such as my constituency?

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

T3. The Government’s industrial strategy Green Paper talks of the need to close the skills gap and invest in infrastructure, so can the Secretary of State explain to the House why childcare is not mentioned once?

[Greg Clark]

Making ourselves attractive as a country to the workforce and making sure that we are the best place to operate a business and to work is an important theme of the strategy. I look forward to the hon. Lady’s contribution to the consultation, and if that issue does not have the emphasis that she thinks it needs, we will have the opportunity to address that.

[Jeremy Lefroy (Stafford) (Con)]

T6. I thank the Secretary of State for his support for the midlands engine. In Stafford, we build them. Last week I had the honour of opening the technical training centre at Perkins’ large engine plant in Stafford. Does he agree that that shows just how important it is for businesses to be proactive in putting together the facilities needed for apprentices and taking on more of them, as Perkins is?

[Ms Angela Eagle (Wallasey) (Lab)]

T5. Given that the Brexit negotiations are about to start, does the Secretary of State agree with his right hon. Friend the Prime Minister that no deal is better than a bad deal?

[Greg Clark]

Yes, Mr Speaker.

[Tom Tugendhat (Tonbridge and Malling) (Con)]

T9. Will my right hon. Friend set out how he intends to shape the regulatory environment as we leave the European Union, including through such things as visa allocation, to ensure that the United Kingdom remains at the forefront of the technological revolution?

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[Tom Pursglove (Corby) (Con)]

When I visited the Corby steelworks on Friday, there was real enthusiasm for a sector deal for the steel industry and a real commitment to ongoing partnership working. Is my right hon. Friend the Secretary of State willing to visit the Corby works to discuss those opportunities?

[Greg Clark]

I would be delighted to visit Corby with my hon. Friend. He is absolutely right—my discussions with the steel industry show a real appetite for a long-term sector deal to secure the future of the steel industry.

[Richard Arkless (Dumfries and Galloway) (SNP)]

T8. Given the decimation of Scotland’s renewables sector and the fact that Scotland has very different energy capabilities from the rest of the UK, why do the Government continue to think that a one-size-fits-all energy policy is in any way appropriate for Scotland?

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[Greg Clark]

As my hon. Friend knows, in the growth deals that are part of the midlands engine there is support, through local enterprise partnerships, for small businesses—both start-ups and growing businesses.

[Mr Iain Wright (Hartlepool) (Lab)]

Following npower’s 15% price hike last month, the Government pledged that

“where markets are not working we are prepared to act.”

E.ON raised its prices by 14% last week and SSE by 8% yesterday. How many more companies need to raise their prices before the Government actually act to stop energy customers getting fleeced?

[Greg Clark]

The hon. Gentleman is absolutely right that that behaviour is unacceptable. It has been reported by Ofgem that there is no reason to increase prices. We have committed to a Green Paper on consumer markets, which will be published very shortly. The time is up for these companies.

[Robert Courts (Witney) (Con)]

As the recently elected chair of the all-party group for small and micro business, I know that access to finance in the early years is a real challenge for small businesses. What advice could the Minister give to those in my constituency who are looking for access to finance in the early years?

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[Andrew Stephenson (Pendle) (Con)]

On Friday, I visited Graham Engineering, in Nelson. It is an excellent company in the nuclear supply chain that currently has 30 new vacancies, which will be on offer at my seventh annual Pendle jobs fair on 24 March. What more can we do to support the nuclear supply chain?

[Greg Clark]

One of the things that we have done to support the nuclear supply chain is to have a continuing commitment to nuclear power in this country, and that will benefit my hon. Friend’s constituents. Through our network of training colleges, we will make sure that we grow the nuclear skills that we need for this industry.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

I thought the Minister was a touch complacent in his earlier answer on smart meters given that this will cost the taxpayer £11 billion by the end of the Parliament. What is he going to do about the fact that they do not work when a customer switches supplier?

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[Melanie Onn (Great Grimsby) (Lab)]

The digital strategy is a key component of the Government’s industrial strategy. Can the Secretary of State do better than the Department for Culture, Media and Sport and tell me which companies have committed to work in Great Grimsby as part of the digital skills partnership?

[Greg Clark]

The whole of the industrial strategy is an invitation to businesses in every sector to come forward and propose to the Government what is required to grow jobs and skills. That is the invitation to all digital companies.

[Greg Mulholland (Leeds North West) (LD)]

The Pubs Code Adjudicator Paul Newby failed to declare a much more fundamental direct conflict of interest than Charlotte Hogg, yet Ministers are ignoring it. Tomorrow, tenants will protest outside his office. How long will Ministers keep failing to do their duty and not face up to this situation?