Oral Answers to Questions

Greg Clark Excerpts

Tuesday 13th March 2018 Commons Chamber

[Albert Owen (Ynys Môn) (Lab)]

1. What discussions he has had with the Welsh Government on the place of marine energy in the industrial strategy; and if he will make a statement.

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

My ministerial colleagues and I have regular discussions with our counterparts in the Welsh Government on all aspects of the industrial strategy. Last week, my officials were in Cardiff to discuss with the Welsh Government the proposed Swansea bay tidal lagoon.

[Albert Owen]

At the heart of the industrial strategy is spreading prosperity across the whole of the United Kingdom, and working with devolved Administrations in our nations and regions will help to achieve that. The Welsh Government are working with practical developers—Minesto, an international company, and local company Morlais—to develop marine energy in my part of the world. The Secretary of State mentioned the Swansea bay tidal lagoon. Will he now make a decision and work with the Welsh Government and with developers so that we can roll that out, maximise our potential, and spread prosperity in this part of the United Kingdom?

[Greg Clark]

I share the hon. Gentleman’s enthusiasm for green energy, as he knows, and I am proud of our achievements. Since 2010, we have quadrupled the proportion of our electricity that comes from renewable sources. However, as the hon. Gentleman understands from being on the Select Committee, we also have a responsibility to minimise the impact on consumers’ bills. The Swansea proposal was very much more expensive—more than twice as expensive—as the Hinkley nuclear power station, for example. As I said, though, we are in discussions with our colleagues in the Welsh Government. I do not want to close the door on something if it is possible to find a way to justify it as being affordable to consumers.

[Jessica Morden (Newport East) (Lab)]

I, too, say to the Minister that making a decision on the Swansea bay tidal lagoon is important for Wales as a whole. There is huge potential for future lagoons around Newport following the Swansea pathfinder. It is really important that we do not pass up these opportunities.

[Greg Clark]

I take the hon. Lady’s point. I think that everyone recognises these issues. In fact, the First Minister wrote to me yesterday and acknowledged the

“genuine challenges in…considering a proposal involving untried technology with high capital costs and significant uncertainties.”

That is why the best way to do this is to explore all the possibilities and to recognise the constraints. That is what I have committed to with colleagues in the Welsh Government.

[Lee Rowley (North East Derbyshire) (Con)]

2. What assessment he has made of the level of consumer satisfaction with smart meters.

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[Mark Pawsey (Rugby) (Con)]

4. What recent steps he has taken to improve electric vehicle charge point infrastructure.

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

Britain is building one of the best charge point networks in the world, and our £400 million charging infrastructure investment fund, announced at the Budget, will see thousands more charge points installed across the UK.

[Mark Pawsey]

Yesterday, the Business, Energy and Industrial Strategy Committee visited the London Electric Vehicle Company in my constituency. The Secretary of State will remember opening it a year ago, and it is great that we are now seeing electric taxis on the streets of London. We also went to the Electric Vehicle Experience Centre in Milton Keynes, where we heard concerns about the fact that the lack of compatibility between chargers and connectors is in danger of putting people off buying an electric car. What will the Secretary of State do to encourage the industry to adopt a standard?

[Greg Clark]

I am delighted that the Committee went to see the electric taxi company. The opening, at which my hon. Friend accompanied me, was a fantastic event. Having such compatibility is a very important matter. The recently introduced Alternative Fuels Infrastructure Regulations 2017 set minimum standards for publicly accessible charge points. In addition, the Automated and Electric Vehicles Bill, which is currently before Parliament, will give the Government new powers to regulate these technical standards.

[Mark Tami (Alyn and Deeside) (Lab)]

Many supply companies are worried that if there is a high uptake, which I think we would all support, the infrastructure will not be there to support it. It is just not true that electric vehicles do not use a great deal of power, so there are concerns about strain on the system as a whole.

[Greg Clark]

I am grateful to the hon. Gentleman for those comments. Our access to the network is one of the best in the world, especially for fast chargers. He is absolutely right that electric vehicles can contribute to the electricity grid’s resilience, because their batteries can store electricity generated by renewables for a time when it is needed, which is very much part of the smart systems plan.

[Michael Fabricant (Lichfield) (Con)]

Batteries, of course, are one of the constraints that people consider before buying electric cars, because of their limited range. Does my right hon. Friend therefore welcome the initiative of the Mayor of the West Midlands, along with the Government, for introducing a battery research centre in the west midlands?

[Greg Clark]

Not a Question Time goes by without me welcoming an initiative from the Mayor of the West Midlands. We have worked very closely with the Mayor, and with the automotive industry, to ensure that we are investing at the cutting edge of research into battery technology, precisely so that we can build the cars of the future.

[Thangam Debbonaire (Bristol West) (Lab)]

What comfort can the Secretary of State give the people of Bristol, who wish to see the number of electric charging points massively increased?

[Greg Clark]

I am delighted that there is such enthusiasm in Bristol. The hon. Lady will be aware that the funding for charging infrastructure is available especially for city-centre authorities that can put it into public car parks.

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

5. What progress has been made on a sector deal for the oil and gas industry.

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[Mr Ranil Jayawardena (North East Hampshire) (Con)]

6. What steps he is taking to support the development of electric and autonomous vehicles.

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

The automotive sector deal will ensure that the UK continues to reap the benefits from leading the transition to zero-emission and autonomous vehicles. Last month that drew in £33 million of investment into the UK-based connected and autonomous vehicle programmes, with participation from across the industry.

[Mr Jayawardena]

Jaguar Land Rover recently developed the I-Pace, its first all-electric performance SUV, and, as my hon. Friend the Member for Rugby (Mark Pawsey) mentioned, the London Electric Vehicle Company has developed the world’s first purpose-built electric taxi. Will my right hon. Friend join me in congratulating those great British manufacturers on the world-leading role they are playing in the sector?

[Greg Clark]

I certainly will. The Jaguar and the London taxi are iconic images, and to see them leading the way into the future is a matter of great delight. I congratulate both companies on choosing to manufacture those vehicles in the UK.

[Mr Jim Cunningham (Coventry South) (Lab)]

What is the Secretary of State doing to help development in the transition from diesel to electric vehicles? In particular, how is he helping with infrastructure?

[Greg Clark]

We are working very closely with the industry to ensure that as it develops the new technologies of the future, it is able to plan a smooth transition to a world in which all vehicles will be compatible with our climate objectives.

[Steve Double (St Austell and Newquay) (Con)]

All the new electric vehicles will need batteries, of which lithium is an essential element. Recent discoveries of large deposits of lithium in Cornwall open up the possibility of the UK securing a domestic supply for this vital element. What support can the Secretary of State give to this exciting new emerging sector?

[Greg Clark]

Through our industrial strategy, we have highlighted the potential for new developments in battery storage. If Cornwall can supply the lithium to power that new industry then I am delighted to hear it. I will discuss the possibilities further with my hon. Friend.

[Peter Kyle (Hove) (Lab)]

At yesterday’s Select Committee visit, mentioned by the hon. Member for Rugby (Mark Pawsey), it became very apparent that the market for electric vehicles is maturing at a much faster rate than many people realise. Is it possible that the ambition of the sector itself is outstripping the ambition of the Government, and should the 2040 target not be brought forward, perhaps even by a decade?

[Greg Clark]

When it comes to the new generation of automotive technology, the ambition of this Government is not outstripped by anyone. We are working very closely—hand in glove—with the industry, through the Automotive Council, to make sure that we are the best placed in the world not only to research the new technologies, but to manufacture them in this country.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

9. What financial support his Department makes available for manufacturers in the automotive sector.

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

The Government’s long-term partnership with the automotive industry is an exemplar of our industrial strategy. Only a fortnight ago, I went to Derbyshire to welcome Toyota’s decision to build the new Auris in Burnaston, helping to secure 3,000 jobs between Burnaston and Deeside in north Wales.

[Justin Madders]

I am sure that, while welcoming that investment, the Secretary of State will have been alarmed by the comments made by the chief executive of the PSA Group, which owns Vauxhall in my constituency, about the lack of certainty, with Brexit affecting investment decisions. Will the Secretary of State meet the PSA Group and me to give us confidence in terms of investment in the future of that plant?

[Greg Clark]

I regularly meet with chief executives of car companies, including Mr Tavares. It is very clear that we are determined, as the Prime Minister set out in her Mansion House speech, to make sure that this very important integrated supply chain is able to continue to operate. It is worth bearing in mind that since my team have been in the Department every single major new model decision has gone our way. I am determined to keep up that advocacy.

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

The automotive sector is crucial to UK industry. It employs 814,000 people and we are all proud of British car manufacturers, including the iconic Rolls-Royce and Jaguar. In recent weeks, however, President Trump has revealed an appetite for a trade war that began with the announcement of steel tariffs and now includes threats to put tariffs on EU cars, which could hit our industry hard. Will the Secretary of State tell this House what he is doing to avoid a trade war with the US? Should such tariffs come into play, what will he do to protect our steel and automotive sector?

[Greg Clark]

I am sure the hon. Lady was in her place yesterday when the Trade Secretary gave a very comprehensive statement. There was some welcome for the cross-party approach that went into defending the international system of free trade. It does no one any good if we have tariffs in place that impede trade. Her endorsement of the approach being taken by the Trade Secretary would be welcome.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

10. Whether he is taking steps to safeguard the employment of people who were working under private sector Carillion contracts at the time of that company’s liquidation.

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[Mark Menzies (Fylde) (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 our last questions, Toyota has announced, as I said a few moments ago, that it would build its new model in Derbyshire, with most of the engines coming from the Deeside factory in north Wales. We also published our response to the Taylor review on modern employment practices. A million more vulnerable consumers will be protected by the extension of the Ofgem safeguard tariff cap and, as Members know, the Domestic Gas and Electricity (Tariff Cap) Bill has been introduced into Parliament. Yesterday, as part of our industrial strategy, we announced a major £300 million research programme into technologies to serve the ageing population and to ensure that we can benefit from this encouraging global trend.

[Mark Menzies]

What engagement is the Secretary of State having with a Canadian company called Brookfield, the likely buyer of Springfields nuclear fuels in my constituency, which manufactures nuclear fuel for the UK and provides over 1,200 well-paid jobs?

[Greg Clark]

My hon. Friend is a champion of this sector. The Under-Secretary, my hon. Friend the Member for Watford (Richard Harrington), has met the vice- president of Brookfield and expressed our continuing support for Springfields to have a future in providing fuel for plants in this country and overseas.

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

GKN was forged in our country’s first industrial revolution. It built the tanks used in the D-day landings, and its innovative battery technology will power our future economy. The Government’s industrial strategy identifies batteries as a key technology and manufacturing as a priority sector, yet the Secretary of State has nothing to say about the hostile takeover of that great firm. Why is it that all too often, as with Arm and Unilever, his industrial strategy seems to leave great British success stories less great or less British?

[Greg Clark]

I would have thought that the hon. Lady would have informed herself as to the responsibility of Ministers under the Enterprise Act 2002. That Act, which was passed under the previous Labour Government, states that Ministers can intervene only in mergers that raise public interest concerns on the grounds of national security, financial stability or media plurality. She should know that the Government’s corporate governance reforms have ensured that GKN had longer to prepare its defence, preventing the kind of smash and grab raid that Cadbury’s was subjected to under the previous Government, and that provision has been made for legally binding undertakings to be given in takeover bids. Those are intended to be used, and I would be surprised and disappointed if any bidder did not make their intentions clear, extensive and legally binding.

[Mrs Sheryll Murray (South East Cornwall) (Con)]

T2. Can my hon. Friend assure me that protected status for Cornish produce such as the Cornish pasty will not be compromised post-Brexit?

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

T9. Does the Minister agree that there is overwhelming evidence that migrant workers, including EU nationals, make a hugely positive contribution to business, the economy and our public finances, and that they do not undermine wages?

[Greg Clark]

I think that we all recognise the extremely positive contribution made by workers from the EU, whether in business or in our public services, and I endorse that.

[Damien Moore (Southport) (Con)]

T4. According to the tidal energy industry leader Tidal Lagoon Power, Southport is considered to be one of the best locations in the United Kingdom for a tidal lagoon. Will my right hon. Friend therefore meet me to discuss the possibility of bringing tidal energy to Southport?

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

The 220 people who work at GKN Aerospace in my constituency produce windshields for military and commercial aircraft, so is that not another indication that the hostile takeover bid raises national security implications? The Secretary of State has the power to intervene under the Enterprise Act 2002.

[Greg Clark]

As we have met to discuss this matter, the hon. Gentleman knows that I must ensure that I do not prejudice any assessment. I set out to the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) the constraints under which I have to operate.

[Paul Masterton (East Renfrewshire) (Con)]

T8. Last October’s “Made Smarter” review set out how manufacturing businesses in East Renfrewshire and across the UK can be transformed through the adoption of industrial digital technology. How will the Government support “Made Smarter” now that it has been announced as a deal in development in the industrial strategy?

[Mr Gregory Campbell (East Londonderry) (DUP)]

The number of electric vehicles on our roads is likely to increase significantly over the next few years. What work is being done to ensure that charging points are more frequently powered by renewable sources over that period?

[Greg Clark]

The hon. Gentleman makes an excellent point. Part of our industrial strategy is about bringing together the energy and automotive sectors, so that one reinforces the other. That is the Faraday challenge, which is attracting so much attention in both industries.

[Mr Philip Dunne (Ludlow) (Con)]

T10. Given our close defence and trading relationship with the United States, will the Minister reassure the House that he is making efforts to secure an exemption for UK-produced steel and aluminium products from next week’s imposition of tariffs?

[Rachel Reeves (Leeds West) (Lab)]

The Business, Energy and Industrial Strategy Committee has heard powerful evidence on why the Government should call in the Melrose bid for GKN on national security grounds, and the Secretary of State for Defence has written to the Business Secretary about the matter. Will the Business Secretary use his powers, before it is too late, to protect this great British engineering giant?

[Greg Clark]

I will look very carefully at the report of the Committee and that will be one of the pieces of evidence that I will seriously consider.

[Richard Graham (Gloucester) (Con)]

The Secretary of State has said that his door is still open to discussions about the benefits of green energy, so will he commit today to seeing Charles Hendry—the author of the Hendry review, which is still awaiting a response from the Government 14 months on—me, as chair of the all-party group on marine energy and tidal lagoons, and representatives of Tidal Lagoon Power and TidalStream?

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[Greg Clark]

The right hon. Gentleman makes an excellent point. It is true that the charging network needs to extend right across the country if people are to have the confidence that they will be able to recharge their vehicle, and we have the rural aspect very much in mind.

[Anna Soubry (Broxtowe) (Con)]

According to the press, the Secretary of State gave a presentation to a Sub-Committee of the Cabinet about the automotive sector and how important it is that we do not have a hard Brexit. That seems to have persuaded members of the Cabinet who had thought that a hard Brexit might be a good idea that it would, in fact, be a very bad idea for British business, notably the automotive sector. On that basis, will the Secretary of State make that presentation available to all right hon. and hon. Members?

[Greg Clark]

It would be wrong of me to disclose conversations that took place in Cabinet—my right hon. Friend understands the requirements of collective responsibility—but it is no secret to anyone in this House that I regard the fact that the success of the automotive sector depends on integrated supply chains as good evidence of what type of trade agreement is needed. That was highlighted in the excellent speech made by my right hon. Friend the Prime Minister at the Mansion House.