Oral Answers to Questions

Greg Clark Excerpts

Tuesday 12th December 2017 Commons Chamber

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

2. What recent steps his Department has taken to support the development of electric and autonomous vehicles.

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

Two weeks ago I announced the location for the new national Faraday battery scale-up facility, which will be built in Coventry. On the same day, Jaguar Land Rover announced its intention to produce battery electric vehicles in the west midlands, thus bringing the region to the forefront of modern mobility in the United Kingdom.

[Stephen Metcalfe]

When it comes to autonomous and electric vehicles, public trust in the exciting technology involved is key to making the most of the opportunities that it presents. What discussions has my right hon. Friend had with industry to combat the Luddites and dispel the mythical fears of that exciting technology that are currently being promoted?

[Greg Clark]

My hon. Friend has made an excellent point. Part of the programme involves test beds to demonstrate the new technologies. The demonstrations will be open to the public so that they can see for themselves, and they will begin in Milton Keynes, Greenwich, Bristol and Coventry. However, people are already experiencing these technologies through satnav, cruise control and automatic parking, and I hope that increasing exposure will reveal their benefits.

[Chris Elmore (Ogmore) (Lab)]

The Secretary of State mentioned Jaguar Land Rover. As he will know, Ford in Bridgend, which neighbours my constituency and employs hundreds of workers there, is pulling out of the contract early. Has the Secretary of State had any conversations with Ford about the possibility of converging its lines to produce electric batteries for electric cars?

[Greg Clark]

The hon. Gentleman will be pleased to know that I shall be meeting the head of Ford’s European operations immediately after this session to discuss the fact that Ford has based its new development of electric and autonomous vehicles in Britain.

[Alan Mak (Havant) (Con)]

Britain has the potential to be a world leader in developing the new regulatory standards that will govern electric and autonomous vehicles. Will the Secretary of State work with industry, and with other Departments, to ensure that Britain leads the world and that other countries adopt our standards?

[Greg Clark]

I will indeed. The industrial strategy makes it clear that being at the forefront of the regulatory standards for these new technologies gives us a big advantage. The Automated and Electric Vehicles Bill, which is currently before Parliament, is intended to establish—before most other countries—the right regulatory standards, so that we can make progress with those technologies.

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

The Secretary of State knows that no assessment of the impact of Brexit on the sector has been carried out by anyone, apart from the RAND Corporation, which told us this morning that this and every other sector will be deeply harmed by Brexit. What does he say in response to that important and thorough investigation?

[Greg Clark]

I think the hon. Gentleman knows that I have continuous discussions with all the sectors for which I am responsible, including the automotive sector. They lead me to make sure that, as part of our negotiating mandate, we get the best possible deal. The agreement achieved in Brussels last week, including the transitional phase, had been pressed for by the automotive sector in particular.

[Mike Amesbury (Weaver Vale) (Lab)]

3. What assessment he has made of the potential effect on productivity of the Government’s industrial strategy.

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

We know that the best way to improve our productivity is by investing in research and development, improving the level of skills in our workforce, upgrading our infrastructure, creating an attractive environment for new and growing businesses, and making sure that every place in the country can prosper. That is exactly what the industrial strategy does.

[Mike Amesbury]

Our productivity growth has been far worse than that of any other G7 country bar Italy. Does the Secretary of State admit that the Government public investment figures in the revised industrial strategy are far below those of leading OECD nations?

[Greg Clark]

No: if the hon. Gentleman reads the strategy he will see that there is a commitment to the biggest increase in research and development funding, both private and public sector, that we have ever had in this country. It has been the foundation of our success, and I hope the hon. Gentleman will join me in welcoming the progress we are making to be even better at it.

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

Productivity in the construction industry is a key requirement of building houses. How will the Secretary of State ensure quality in on and offsite builds for the £1.7 billion investment in construction in the industrial strategy?

[Greg Clark]

I am glad my hon. Friend mentions that, because the construction sector is one of the areas in which there are big opportunities. It has a sector deal that has been concluded as part of the industrial strategy, and representatives of the sector have said that this represents a major opportunity, especially in offsite manufacture.

[Rachel Reeves (Leeds West) (Lab)]

The Secretary of State has just touched on the sector deals the Government are agreeing with different sectors of the economy. Some of the sectors with the lowest productivity, such as retail, hospitality and social care, do not have a sector deal, yet if we close the productivity gap in those sectors, we will help boost productivity overall compared with our main competitors. What are the Government doing to secure sector deals in those sectors?

[Greg Clark]

I am delighted to hear the hon. Lady’s endorsement of that, and she is absolutely right that there is an opportunity for sector deals for many sectors, including those she mentioned. We are already in discussions with many of those sectors, including the food and drink sector and the hospitality sector; we expect to see early sector deals concluded in them. I am delighted that the hon. Lady supports that.

[George Freeman (Mid Norfolk) (Con)]

I congratulate the Secretary of State on launching the industrial strategy—in particular the life sciences sector deal, which has already triggered £1 billion of new investment. Does he agree that the key now is to negotiate a Brexit deal that avoids a cliff edge but gives us the regulatory freedom to continue to lead in the all-important genomics and data of tomorrow’s medicine?

[Greg Clark]

I do agree with that, and I commend my hon. Friend as the former life sciences Minister who saw before many people the opportunities of the strategic approach. I think he has been honoured this very week by the learned societies for his contribution to promoting science in Parliament, and I congratulate him on that. He is absolutely right that we need to build on these successes. The life sciences sector deal is a demonstration that a long-term strategy can have immediate benefits; we have had more than £1 billion of investment on the basis of the confidence that the sector has in the strategy we have set out.

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

With a few notable exceptions, I am sure we would all agree that technology has improved the productivity of this House, but the same is not true for our country: productivity has stagnated since 2010, and we produce 25% less in an hour than the Germans and French, crippling business and making us all poorer. Last week the Chancellor tried to blame disabled workers, but his own Budget fails to invest in science and productivity until 2021. Will the Secretary of State admit that the Chancellor’s ideological austerity, meaning we fail to invest in our engines of economic growth, is the real handicap here?

[Greg Clark]

I do not agree with the hon. Lady, and if she reads the industrial strategy she will see that the biggest increase in science and innovation investment for 40 years has been triggered by this. It is the right way to go, and it has been welcomed by all parties across the country. It would be helpful if the hon. Lady recognised that many other countries have benefited from a strong national commitment to improving investment in productivity, such as through science and innovation, and that gives confidence to overseas investors.

[Brendan O’Hara (Argyll and Bute) (SNP)]

4. What steps he is taking to support the development of renewable energy sources in Scotland.

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[Justin Tomlinson (North Swindon) (Con)]

8. What steps he is taking to support the UK automotive sector.

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

The UK’s automotive industry is a great British success story and, building on the success of institutes such as the Advanced Propulsion Centre, we have agreed an automotive sector deal to ensure that we continue to reap the benefits from the transition to ultra-low and zero-emission vehicles. Our ambition is to build innovative and competitive supply chains to increase the value of UK content from about a third in 2011 to more than half by 2022.

[Justin Tomlinson]

What more is the Department doing to encourage further investment in UK car plants, particularly in my constituency with Honda and BMW?

[Greg Clark]

Both Honda and BMW have been part of the sectoral council that has helped to create institutions that have trained people, and developed research and development; they are a very valued part of the sector deal, which has been so warmly welcomed by the industry.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

My constituency contains many small businesses involved in the supply chains for the motor industry. These chains stretch right across Europe and are largely regulated by European Union law. Will the Secretary of State make a commitment that these will not be disrupted by Britain’s exit from the EU?

[Greg Clark]

Given what he said, I hope the hon. Gentleman will welcome the supply chain initiative, which is at the heart of the sector deal to increase the level of UK content. But one way or another the motor industry, like so many others, is based on its good relations, not just across Europe, but around the world, and it is essential that the deal we do allows that to continue and indeed to prosper in the future.

[Amanda Milling (Cannock Chase) (Con)]

The west midlands has a proud heritage in the automotive sector, and I welcome the Government’s recent announcements, which will see the region be a global leader in the sector. Does my right hon. Friend agree that supporting innovation and new technologies is key to addressing productivity and creating higher-skilled, well-paid jobs?

[Greg Clark]

My hon. Friend is absolutely right on that, and the commitment we have made to being the world centre for research in new battery technology, through the Faraday challenge, is already commanding attention right around the world. The investment in skills that accompanies this strategy will make sure that her constituents and others in the region will benefit from the jobs that result.

[Richard Burden (Birmingham, Northfield) (Lab)]

Every day, around £35 million-worth of components are imported to the UK from the EU for “just in time” delivery to plants. Many of those components help to build more than 6,500 cars and nearly 10,000 engines to be re-exported back into the EU. As we saw from the Operation Stack debacle a couple of years ago, it does not take much for disruption at the channel ports to completely clog up the south-east, losing millions and millions of pounds. What guarantee can the Secretary of State give the automotive sector that Brexit will not result in any extra customs checks that will clog up the industry?

[Greg Clark]

The hon. Gentleman is right to highlight the importance of ensuring that the agreement we reach will be free not only of tariffs but of the types of frictions he describes. It is important for our successful industry, and not just the automotive sector, that that is the deal we conclude. I hope he will welcome the progress that was made towards that deal last week.

[Jack Brereton (Stoke-on-Trent South) (Con)]

9. What steps he is taking to develop sector deals as part of the Government’s industrial strategy.

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

The industrial strategy White Paper highlighted the emphatic support for sector deals, encouraging any sector to come forward with proposals on how, working in partnership with the Government, that sector can grow and increase its investment, productivity and earning power. A number of sectors have signalled their interest in developing a sector deal, including, as my hon. Friend knows, the ceramics sector.

[Jack Brereton]

I thank the Secretary of State for that response. Will he please update the House on the progress that has been made in developing a sector deal for ceramics?

[Greg Clark]

Very good progress is being made with the leaders of the ceramics sector, of which there is a significant cluster in north Staffordshire and Stoke-on-Trent, where Dr Laura Cohen leads the sector. In the months ahead, we hope and expect to be able to conclude a deal with the sector that will capitalise on the enormous opportunity, especially given the new uses of ceramics in, for example, the medical sector.

[John Spellar (Warley) (Lab)]

The Government are not just a funder and a regulator; they are also a customer. Would it help if national and local government acted like they do in every other country and bought vehicles built in this country by British workers, thereby supporting the companies and British workers?

[Greg Clark]

The most important thing is that we have excellent products here, and I am proud to say that we do in the automotive sector. The right hon. Gentleman will be aware that the Government changed the procurement guidelines to allow the importance of local impact to be taken into account. I hope he welcomes that.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

Thanks to the actions of this Government, it is widely recognised that the UK now has the most fiscally attractive regime in the world for investment in oil and gas. Does my right hon. Friend agree that a good sector deal would build on that and would mean that the north-east of Scotland could look forward to a future in which it is not only Europe’s energy capital, but the world’s?

[Greg Clark]

I completely agree with my hon. Friend. I had the privilege of leading a trade delegation to India that included many companies from Aberdeen and the north-east of Scotland that are selling their wares and expertise right around the world. That is one of the big opportunities in the deal that is being negotiated.

[Peter Kyle (Hove) (Lab)]

The steel industry met the criteria for a sectoral deal, it wanted one and applied for one, but it did not get one. Will the Secretary of State please explain why?

[Greg Clark]

The discussions with the steel sector are continuing and I fully expect to conclude an important and ambitious deal for this foundational industry.

[Joan Ryan (Enfield North) (Lab)]

10. What recent assessment he has made of the UK’s progress towards meeting its carbon reduction targets.

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[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

14. What assessment he has made of the potential effect on Wales of the Government’s Industrial Strategy.

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

Our industrial strategy is for the whole United Kingdom. I was pleased to hear from, and work with, people, businesses and institutions in Wales and colleagues in the Welsh Government as we developed the strategy. I have held important discussions with Welsh businesses from a range of sectors, including life sciences, steel and nuclear. Welsh innovators are well placed to benefit from the second wave of the industrial strategy challenge fund.

[Liz Saville Roberts]

In the past 10 years of successive Westminster Governments, productivity in my county of Gwynedd has fallen by 10%, while productivity in central London has risen by more than 5%. Such regional inequality is evidence that Westminster is not working for Wales. Does the Minister agree that we should be seeking the tools to build our own future?

[Greg Clark]

The hon. Lady is right in identifying that there are big regional disparities in productivity, and the long-term purpose of the industrial strategy is to work together with our leaders right across the country, with industries, and with universities and colleges to make sure that the drivers of improved productivity are in place. I know that the Government in Wales have participated in and endorsed the approach that we are taking, and I take her endorsement of our direction as further encouragement.

[Peter Aldous (Waveney) (Con)]

15. What steps he is taking to support the offshore wind industry.

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[Mrs Kemi Badenoch (Saffron Walden) (Con)]

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

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

Since we last met, my ministerial colleagues and I have launched the industrial strategy White Paper, and we can already see it in action. Last week we launched the first sector deal with the life sciences sector, which has attracted significant investment in the UK from companies including MSD and GlaxoSmithKline. We are determined to do even more, and to make the UK the best place to start and grow a business.

Many colleagues from both sides of the House joined us in celebrating Small Business Saturday on 2 December. I congratulate the organisers of that great event, which saw more than three quarters of a billion pounds spent with small businesses.

I attended the global forum on steel excess capacity in Berlin, which agreed actions by all G20 nations to tackle unfair subsidies. Today, colleagues will have noticed that the Minister for Climate Change and Industry is accompanying the Prime Minister to President Macron’s One Planet summit in Paris.

[Mrs Badenoch]

We all know that rapid advances are being made in self-driving cars. Does the Secretary of State agree that now is the time to adapt our regulatory framework to ensure that it is fit for the future?

[Greg Clark]

My hon. Friend is absolutely right. That is why we have the Automated and Electric Vehicles Bill before Parliament. We are taking a lead in ensuring not only that we invest in research and development, but that we are ahead of the world in having the right regulatory system to support the adoption of this technology.

[Dr Roberta Blackman-Woods (City of Durham) (Lab)]

T4. Recent Government figures show that UK funding from Horizon 2020 dropped significantly last year. Will the Secretary of State tell us what he is going to do to address that alarming fall in funding, and will he commit to participating in Horizon 2020 beyond March 2019 should the UK leave the EU then?

[Wendy Morton (Aldridge-Brownhills) (Con)]

T2. Given the importance of the automotive industry to the UK, and particularly to the west midlands, does the Secretary of State agree that it is essential to invest in test environments for self-driving cars to ensure that the UK can compete with other countries that want to become the world’s test bed for new vehicle technologies?

[Greg Clark]

I agree with my hon. Friend. That is one reason why we have established a series of test beds between London and the west midlands, including the motorsport cluster. They are already attracting huge interest from around the world, reinforcing our reputation in the field.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

T5. Onshore wind has been Scotland’s success story, with the Scottish Government still on track to meet 100% of electricity generation coming from renewables. The UK Government are the possible blocker. As we approach the point of zero-subsidy onshore developments, will the Government find a way to allow Scottish onshore developments to bid in the next CfD auction?

[Greg Clark]

The renewables strategy that we have set out has been remarkably successful in bringing down the price of onshore wind and creating jobs, including in Scotland. As the hon. Gentleman knows, I have discussions with the Scottish Government, which have resulted in the remote islands policy that we have adopted. I will continue to have those discussions with his colleagues.

[Mr Marcus Fysh (Yeovil) (Con)]

T3. Does the Minister agree that retaining full sovereign control of our regulation is essential to getting the most out of our economy, 88% of which does not relate to the EU?

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[Matt Warman (Boston and Skegness) (Con)]

T6. A recent report from Intel identified £2 trillion of global opportunities in artificial intelligence and driverless cars. Will the Minister outline what steps the Government are taking to invest in the skills that Britain will need to capitalise on that huge opportunity?

[Greg Clark]

I am delighted that my hon. Friend draws attention to this area, and he is a great expert in it. He will know that, in the industrial strategy, we established as one of the four grand challenges leadership in the world in artificial intelligence and the analysis of big data. A crucial part of that is making sure that our young people and people retraining have the skills to take up those jobs.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

T8. Rumours abound that the Westminster Government are seeking to change the policy on nuclear decommissioning. Will the Minister indicate whether he has any plans to introduce a policy of continuous decommissioning for the UK’s ageing nuclear estate, and whether such a policy would apply to Trawsfynydd?

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[Mr William Wragg (Hazel Grove) (Con)]

T9. What recent discussions has my right hon. Friend had with the Secretary of State for Transport about increased investment in road and rail projects to improve productivity, particularly in the north of England?

[Greg Clark]

I have regular and fruitful conversations with the Transport Secretary. My hon. Friend will know that, in Greater Manchester, as part of the industrial strategy, there was an investment of a quarter of a billion pounds in improving connections in and around the city. That is on top of the investment in connections across the north of England.

[Preet Kaur Gill (Birmingham, Edgbaston) (Lab/Co-op)]

Given the time that has passed since the promise of an energy price cap, will the Secretary of State confirm that he remains committed to implementing the cap for 17 million households, and will he outline the process by which the Conservative party is expected to introduce it?

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[Gavin Robinson (Belfast East) (DUP)]

The Secretary of State may know that Unite the union officials from the Belfast Bombardier plant are in Washington and Montreal pressing the case against the egregious US tariff situation. Is the Secretary of State continuing to engage in this process and working towards a sensible resolution?

[Greg Clark]

I certainly am. As the hon. Gentleman knows, throughout this process we have been absolutely determined to send a clear message to Boeing and to the US Administration that this action is unfair. Its effects on Belfast are intolerable. I will have further conversations later this week to continue to press the case with all the parties concerned.

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

I recently visited the Cambridge biomedical campus, which brings together academia, business and healthcare. Does the Minister agree that this is important collaboration, which will help boost productivity, improve our economy and create jobs for the future?

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[Sir Edward Davey (Kingston and Surbiton) (LD)]

It is good news that the Prime Minister is attending President Macron’s summit on climate change in Paris today, but may I warn the Secretary of State that President Macron is positioning Paris as the world’s leader in green finance? To tackle that threat and to protect London, Ministers must back the Bank of England’s taskforce on climate-related financial disclosures and bring in new mandatory corporate requirements on fossil fuel assets.

[Greg Clark]

Britain leads the world in climate finance, and one of the major contributions the Prime Minister and the Minister for Climate Change and Industry are making is in promoting the availability of green finance in the UK—that includes Edinburgh as well as London. That is getting a very good reception.

[Mark Pawsey (Rugby) (Con)]

The Secretary of State has already spoken about the great news for the west midlands on electric vehicles. He will remember the all-new electric taxi being manufactured at Antsy Park in my constituency, and the taxi was certified for use in London this week. Does he agree that the opportunity for a platform for a delivery vehicle is also very important?

[Greg Clark]

I do agree with my hon. Friend. I congratulate the London Taxi Company on having the first electric taxi, manufactured in the west midlands, on the streets of London this very week—again, a big vote of confidence in our world-beating motor industry.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

Access to finance is critical for small businesses, but the protection in place when things go wrong is non-existent. Do the Government agree, and will they look at extending the role and remit of the Financial Conduct Authority in that regard?

[Craig Tracey (North Warwickshire) (Con)]

Does the Secretary of State agree that the key to a successful industrial strategy is that it focuses on all areas of the UK, obviously including North Warwickshire and Bedworth?

[Greg Clark]

I do indeed. One of the features of our industrial strategy, which takes an approach that previous business policies have not taken sufficient account of over many decades, is the importance of the skills and clusters of industries in local places. As my hon. Friend knows, that is very much at the heart of the industrial strategy that we have published.

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

On 8 March, the Chancellor announced a full review of business rates. On 14 March, the Minister responsible for small business said:

“The review will report in due course and in the not-too-distant future.”—[Official Report, 14 March 2017; Vol. 623, c. 178.]

Yet the industrial strategy barely mentions business rates, which are having a massive impact on businesses in York. When will this review start?