Oral Answers to Questions

Greg Clark Excerpts

Tuesday 27th June 2017 Commons Chamber

[Jo Churchill (Bury St Edmunds) (Con)]

2. What steps he has taken to consult businesses on the process of the UK leaving the EU.

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

Since the referendum, I have held discussions with businesses, workers and local leaders across the UK, and investors all around the world. These will continue over the coming months, including my weekly meetings with the directors general of the five main business organisations. The Government are creating a new EU exit business advisory group to ensure that business is not only heard but is influential throughout the negotiations.

[Jo Churchill]

My particular interest is in the UK’s life science sector, which is worth some £30 billion to the economy and involves nearly half a million jobs, many of which are in my constituency of Bury St Edmunds. Will the Secretary of State tell me how he will ensure that there is continued support to this vital leading research and science sector as we leave the EU?

[Greg Clark]

I will indeed. My hon. Friend is a great champion of the sector. In our negotiations, we want to ensure that we can continue these successful collaborations, as well as making further investment in the future of research through our industrial strategy. The House may be interested to know that I can announce today that the Government’s commitment to underwrite the UK’s fair share for the Joint European Torus costs—the leading nuclear fusion facility in Oxfordshire, supporting 1,300 jobs—will be made. The facility is funded through a contract between the European Commission and the UK Atomic Energy Authority. In making this commitment, the Government hope to provide the certainty and reassurance needed for a mutually beneficial extension of the contract.

[Mr Ben Bradshaw (Exeter) (Lab)]

All the five business organisations to which the Secretary of State refers have come out against the Prime Minister’s extreme and damaging Brexit. What is he personally doing to ensure that the Prime Minister not only hears what they are saying, but listens to it?

[Greg Clark]

The right hon. Gentleman will know that the five business organisations have put forward a sensible set of principles to govern the transition and the shape of a final agreement. Those suggestions seem very sensible. Part of the point of engaging with business, as I do rigorously and frequently, is to ensure that that voice is heard.

[Robert Neill (Bromley and Chislehurst) (Con)]

One of the important principles that those business organisations have stressed is the essential nature of having contractual and legal certainty for those who are entering into legal obligations so that they know that that will continue to be enforceable once we leave the EU. Will the Secretary of State therefore ensure that particular regard is had to the need for transition periods to be based on the reality of business practice, rather than on arbitrary considerations?

[Greg Clark]

My hon. Friend makes an excellent point. If he has the continued privilege to chair the Select Committee on Justice, I am sure that it will provide some help in this.

[Rachel Reeves (Leeds West) (Lab)]

Many businesses are particularly concerned about additional checks on trade imports and exports if we leave the customs union. Can the Secretary of State give businesses any reassurance at all that there will not be additional checks if and when we leave the customs union?

[Greg Clark]

I have always been clear, as have the Government, that we want not only no tariffs, but no bureaucratic impediments of the type described by the hon. Lady. That is one of the objectives set out by the business organisations. As she knows, the negotiations have just started, but we are clear that that is our objective.

[Mr Jacob Rees-Mogg (North East Somerset) (Con)]

Will my right hon. Friend be asking businesses to list the most egregious and restrictive EU directives that may be removed once we leave in order to make British business more competitive and efficient?

[Greg Clark]

I am sure that my hon. Friend will be an assiduous contributor to the scrutiny of the repeal Bill. The approach is to transfer into UK law that which was part of EU law precisely so that this House can scrutinise and consider what should be continued.

[Bill Esterson (Sefton Central) (Lab)]

The Government said yesterday that EU citizens will be able to apply for what they called “settled status”, so that they can continue to live and work in the UK. Application processes can be time-consuming, not to mention complicated, expensive and off-putting, especially when this Government are involved. How can the Secretary of State guarantee that all EU nationals working in the UK will be allowed to stay not just in theory but in practice, to the benefit of the many businesses that rely on EU workers?

[Greg Clark]

I welcome the hon. Gentleman back to his place. In fact, I think that Labour’s whole Front-Bench team has been reappointed. It is nice to see loyalty rewarded. The hon. Gentleman is absolutely right, and I thought that he would welcome the Prime Minister’s very positive statement. It is important that the process is implemented with no bureaucracy so that people can apply with confidence.

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

3. What his policy is on the non-release or late release of cash retentions in the construction industry.

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[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

14. What steps his Department is taking to foster a positive environment for business growth.

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

The industrial strategy Green Paper was launched on 23 January and has been warmly received across the country. We have received over 1,900 responses to the consultation, with respondents from every part of the United Kingdom. I look forward to taking our modern industrial strategy forward, with the involvement of all Members of this House, in the months ahead.

[Gavin Newlands]

In a damaging blow to business confidence and the wider economy in Renfrewshire, Chivas Brothers announced that it was moving operations from Paisley in 2019. The workforce have voted to strike over a pay offer that Chivas Brothers itself admits does not meet commitments it made to the workforce. Will the Secretary of State join me in urging Chivas to offer a deal that prevents industrial action and recognises the contribution the Paisley workforce have given to Chivas over many, many years?

[Greg Clark]

Of course we want to avoid industrial action. I am not aware of the particular circumstances, but I am very happy to meet the hon. Gentleman so he can inform me of them in more detail.

[Liam Byrne]

Does the Secretary of State agree with the Secretary of State for Defence, who spoke this morning about the need to provide extra investment in those areas that are left behind—even if the bill comes to something like £1.5 billion? When is he going to open talks with other hon. Members about the needs of their areas, so we can ensure that those left-behind regions are not left behind and left out?

[Greg Clark]

I am very surprised to hear that question from the right hon. Gentleman. Of all the people in this House, he was a great proponent of a city deal and a devolution deal for Birmingham and the west midlands, the value of which is over £1 billion. Looking around the Chamber, there are many Opposition Members who have made precisely such a case that we should invest in areas of the country, outside of national programmes. It seems to me to be reasonable to continue that programme.

[Mark Pawsey (Rugby) (Con)]

I took soundings from small businesses in Rugby at a small business expo run by the Federation of Small Businesses on Friday. Their single biggest concern related to the recruitment of staff, in that the skills they are looking for often are not available among local jobseekers. Given those instances, will the Secretary of State reassure us about the training of young people and the ability to recruit staff from the EU moving forward?

[Greg Clark]

I will indeed. One of the big findings, which has been reinforced by the consultation on the industrial strategy, is that we need to ramp up the level of skills and technical education and training in this country. We will respond to the consultation in the weeks ahead, but my hon. Friend can rest assured that that will be one of its key pillars.

[Amanda Milling (Cannock Chase) (Con)]

The Kingswood Lakeside business park in Cannock is home to many leading businesses, and the new developments there will create hundreds of new jobs. Does my right hon. Friend agree that those developments are evidence of business confidence, and show that Cannock Chase is well and truly open for business and is a great place to do business?

[Greg Clark]

I do indeed. Having visited Cannock Chase with my hon. Friend, I know that she is a great champion of the businesses there. It is fair to reflect that the confidence of manufacturers and employers in other sectors is high. As the CBI attested this week, it is high across the country, including in Cannock Chase.

[Layla Moran (Oxford West and Abingdon) (LD)]

8. What discussions he has had with Cabinet colleagues and other key stakeholders on the potential effect of the UK leaving the Euratom treaty on energy suppliers and on the availability of radioisotopes for the NHS.

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[Chris Ruane (Vale of Clwyd) (Lab)]

22. What plans he has to implement an energy price cap.

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

Our manifesto said that

“we will introduce a safeguard tariff cap that will extend the price protection currently in place for some vulnerable customers to more customers on the poorest value tariffs.”

I stand by that commitment.

[Emma Hardy]

The lived experience of many people in Hull West and Hessle is that the Conservative party has done nothing to fix the energy market for the past seven years. Although I welcome the Government’s move and transformation from calling an energy price cap Marxist and extremely dangerous to copying it, is the Minister facing calls to water down that policy either from the big six or from his own Back Benchers?

[Greg Clark]

I welcome the hon. Lady to the House; she follows a distinguished predecessor. I would perhaps invite her to reflect on her own party’s history in this matter—the former Leader of the Opposition was the Energy Secretary and failed to do anything whatever about it. I have been clear about the commitment that we have made, and we will see it through.

[Chris Ruane]

Imitation is the sincerest form of flattery. To misquote Caroline Aherne’s question to Debbie McGee, what first attracted the Secretary of State to Labour’s financially astute, socially just and politically responsible energy price cap?

[Greg Clark]

I welcome the hon. Gentleman back. What he describes as an energy price cap was launched as an energy price freeze. The problem with that was that as energy prices fell, consumers would be paying more than they needed to. That would have been disastrous for them, which is why the proposal that we have made, in response to the Competition and Markets Authority analysis, is a much more sensible approach than we got from Labour.

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

As we have heard, various media outlets have reported recently that senior Cabinet members were lobbying for the Conservative price cap manifesto commitment to be dropped. Indeed, the Secretary of State’s recent letter to Ofgem was silent on the price cap element and, when questioned last week, the Prime Minister refused to confirm unambiguously that the price cap would be upheld. Will the Secretary of State confirm for the avoidance of doubt that he will implement the promised price cap, and not just stand by it, to deliver to 17 million customers the £100 saving that his Prime Minister promised?

[Greg Clark]

I welcome the hon. Lady back. It is very good to see her back in her place. I did not hear her name chanted at Glastonbury and it is probably unparliamentary to do it here, but I warmly welcome her back. I have been very clear and the Queen’s Speech is very clear. It said, in terms:

“My government will ensure fairer markets for consumers, this will include bringing forward measures to help tackle unfair practices in the energy market to…reduce energy bills.”

[Rebecca Long Bailey]

I am afraid it is not clear. The Secretary of State’s recent letter to Ofgem simply asks it to advise him of the action it intends to take to safeguard customers on the poorest value tariffs. It was not a direction to implement a price cap. Can the Secretary of State confirm that should Ofgem not take directions to implement a price cap, or if it directs a price cap that is narrower than the Conservative manifesto commitment, he will legislate to uphold his party’s manifesto commitment and, if so, when?

[Greg Clark]

The powers that I have are to ask Ofgem to move in this way, not to order it; Ofgem is independent. As there is a strong body of opinion on both sides of the House that the detriment that consumers have been suffering should be put to an end, I would have thought that the hon. Lady welcomed it being put to an end as soon as possible, rather than waiting for legislation to pass through the House. Ofgem has those powers and I believe it should use them.

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

12. What steps his Department is taking to ensure that all regions benefit from the Government’s industrial strategy.

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

The importance of our regions is a core pillar of our industrial strategy. We will build on successful clusters, of which the Humber Energy Estuary is a perfect example, as the hon. Lady knows. The Humber’s leading position in marine engineering has been further strengthened by the opening of factories around the offshore wind industry, including at Siemens, where 1,000 new skilled jobs have been created. This is the industrial strategy in action.

[Diana Johnson]

Ministers recently blocked Hull’s privately financed initiative to deliver rail electrification all the way to Hull, an important part of our infrastructure that is needed in east Yorkshire. Are people in Hull right to now believe that the £1 billion that was found for the Northern Ireland powerhouse comes at the expense of the northern powerhouse?

[Greg Clark]

The hon. Lady knows as well as anyone in this House the commitment that this Government, and I in particular, have made to devolving funds to Hull and the Humber. They have benefited considerably, first from a city deal and then from a growth deal. That has contributed to the increased prosperity in her city, which I would have thought she would welcome.

[Martin Vickers (Cleethorpes) (Con)]

Notwithstanding what my right hon. Friend has just outlined, and despite the fact that business confidence in the region is high, as outlined by the most recent Hull and Humber chamber of commerce’s quarterly report, there are still further initiatives that could be taken to advance the northern powerhouse. What further plans does my right hon. Friend have?

[Greg Clark]

My hon. Friend is absolutely right. One of the aspects of the progress made around the Humber is the close working relationships that have been established by businesses and council leaders north and south of the Humber with the Government. I look forward to visiting the area again—I am a regular visitor—so that we can have further devolution of funds and powers there.

[Rachael Maskell (York Central) (Lab/Co-op)]

Over the last seven months nearly 2,500 job losses have been announced in York, including some at Nestlé, as well as the closure of two company head offices. There are clear challenges to York’s economy. Will the Secretary of State agree to meet me, along with his senior officials, so that we can address those serious challenges and ensure that the industrial strategy reaches York as well?

[Greg Clark]

I should be very happy to do that. Nestlé is, of course, a major employer, and there is a cluster of food and drink and agriculture businesses in and around York. It has been identified in the industrial strategy as an area of real potential, and I look forward to working with the hon. Lady to realise that potential.

[Kevin Foster (Torbay) (Con)]

As the Secretary of State will know, expanding Torbay’s manufacturing sector is a key part of diversifying our economy for the future, but a lack of skills may hold us back. Will he confirm that the Government are still seeking to deliver institutes of technology throughout the regions in England?

[Greg Clark]

I will indeed. As I said in an earlier answer, the importance of upgrading our skills education is vital in all parts of the country, including Torbay, and institutes of technology are a way of making sure that industries can benefit from the particular skills that they need.

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

Having abolished the regional development agencies, the Conservative party has refused to invest in growth for good jobs across the country. Ours is now the most unequal economy in western Europe. If every region produced at the same rate per head as London, we would all be one third richer, but instead working people have not had a pay rise for seven years. Will the Secretary of State commit himself to matching the specific proposals for investment for jobs that are laid out in Labour’s industrial strategy, or does his new-found largesse end at the shores of Ulster?

[Greg Clark]

Again, that was a disappointing response. The hon. Lady knows, and the leaders of her local councils know, how important initiatives such as the city deal and the growth deal have been in the north-east. If she looks around the country, she will see that, whereas in past years most jobs were created in London and the south-east, that situation has been transformed, and the north-east of England is one of the areas that have created jobs at a more rapid rate than anywhere else in the country. She should commend that development.

[Ruth George (High Peak) (Lab)]

13. What the reasons are for the time taken to publish the Government’s carbon reduction plan.

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[Rachel Reeves (Leeds West) (Lab)]

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

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

As outlined in the Queen’s Speech, our industrial strategy will drive prosperity across the country, and in the past month we reached an important stage in that process. While we analyse the nearly 2,000 responses, we continue to make decisions that help UK-wide industries. We have announced £1 billion over the next four years for our most innovative industries, such as artificial intelligence, medicine, and autonomous vehicles. We have boosted investment in UK bioscience, such as by providing the University of Edinburgh’s Roslin Institute with some £20 million, which will not only support its research on infectious diseases but create more highly skilled jobs and cement the UK as a world leader in science and innovation.

[Rachel Reeves]

Energy security is essential for national security and for family finances. The essential Moorside energy project in Cumbria is key to such security, but with Toshiba now predicted to lose £7 billion and the French firm backing the project pulling out will the Secretary of State tell us if and when the project will go ahead and provide the assurances that industry, workers and consumers desperately need?

[Greg Clark]

We have inaugurated a new era of nuclear power through the approval of Hinkley Point C. The NuGen consortium, the membership of which has changed from time to time, is confident that that investment will be able to proceed.

[Alan Mak (Havant) (Con)]

T5. I welcome the Government’s commitment in the Queen’s Speech to the new industrial strategy. Will the Secretary of State update the House on his plans to support new, cutting-edge technologies that will help Britain to lead the fourth industrial revolution?

[Greg Clark]

My hon. Friend was a great champion of the strategy in the previous Parliament, and I hope that he will be here. One of its early fruits is the industrial strategy challenge fund, which is already making resources available for research in healthcare and medicine, artificial intelligence, clean energy, driverless cars, advanced materials, and satellites and space technology. That is exactly in line with what he and his group have been urging.

[Kate Hollern (Blackburn) (Lab)]

T2. The Conservative manifesto pledged to deliver a country“where wealth and opportunity are spread across every community in the United Kingdom”,and I see that Northern Ireland has just had its share. Will the Secretary of State tell me how the Government’s industrial strategy will bring wealth and opportunity to places such as Blackburn, where the national average wage is far less than it is in Maidenhead, for example? Blackburn has seen too many cuts from this Government and it is time that we had some investment, so how quickly can the strategy be delivered?

[Greg Clark]

I welcome the hon. Lady to her place. She will discover over time, I hope, that a key part of the industrial strategy is to drive growth in all parts of the country. My Department and I have looked to get funds out of Whitehall and into local places in every part of the country, including £320 million in Lancashire for the funding of the growth deal. She will also be aware that it is necessary to have an economy that is prospering, and one thing that would stand in the way of that is the record peacetime taxation with which the manifesto on which she stood was threatening the country.

[Several hon. Members rose—]

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[Luke Graham (Ochil and South Perthshire) (Con)]

What assessment has the Secretary of State made of the Government’s industrial strategy for Scotland?

[Greg Clark]

It has been warmly received in Scotland, and we have had a positive response from businesses there. I had an enjoyable roundtable in Aberdeen, which was described by one local business as a “breath of fresh air.” I look forward to continuing that engagement with everyone in Scotland, and I am sure my hon. Friend will play a big part.

[John Spellar (Warley) (Lab)]

T7. While other countries, including our EU partners, have over the years used public purchasing to support their own industries, Britain often has not. As Brexit approaches, what are the Government doing to ensure that Government Departments, local services, emergency services, councils and other public bodies back British industry and British jobs by buying British first?

[Greg Clark]

The right hon. Gentleman will know that we have already changed the procurement guidance so that local value can be taken into account. We have anticipated the issue he mentions and this is being done.

[Will Quince (Colchester) (Con)]

The Secretary of State is aware that I have long campaigned for parental bereavement leave, and I was delighted to see this policy in not only the Conservative manifesto, but the Labour manifesto. On that basis, will he kindly set out what steps the Government will take to introduce this important benefit?

[John Cryer (Leyton and Wanstead) (Lab)]

The Secretary of State has talked repeatedly today about the discussions he has had on Brexit. Which trade unions has he met, and when?

[Greg Clark]

I regularly meet trade unions: I met Frances O’Grady of the TUC last week; I spoke to Roy Rickhuss of the steel union yesterday; and I spoke to Len McCluskey a few weeks ago. My contacts cover both sides of the employer and trade union mix.

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[Mr Dennis Skinner (Bolsover) (Lab)]

I have listened to the questions and answers for the past hour, and I hear about the city deals and all the rest of it, but why does the Secretary of State not answer the specific questions about the trade unions? If he wants to give the impression that he is on the side of working-class people, why do not the Government drop the trade union Bill and all the rest of it?

[Greg Clark]

I could not have been clearer about the regular discussions I have with trade unionists. My concern, which I hope would be the hon. Gentleman’s concern, is to make sure that in all parts of the United Kingdom we generate the jobs and growth to ensure that all working people have a prosperous future to look forward to. That is the purpose of this Government, in contrast to the manifesto on which he stood.

[Mr Skinner]

Answer the question!