Oral Answers to Questions

Greg Clark Excerpts

Tuesday 12th June 2018 Commons Chamber

[Scott Mann (North Cornwall) (Con)]

3. What recent assessment he has made of trends in the level of business investment in the food and drink sector in the south-west.

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

Food and drink grown and made in Cornwall is exported and enjoyed around the world. My hon. Friend, both as chairman of the all-party group on dairy and as North Cornwall’s MP, will welcome the £75 million investment by Dairy Crest in its Davidstow creamery, announced two weeks ago, to expand its cheese production by nearly 50%. We are working closely with the industry to ensure that companies continue to invest and grow, right across the UK.

[Scott Mann]

I am grateful to the Secretary of State for that answer, and I do welcome Dairy Crest’s recent announcement. The food and drink sector is flourishing right across the south-west, particularly in North Cornwall. We have some fantastic brands, including Tarquin’s Gin, Kernow Chocolate, Sharp’s brewery and Buttermilk fudge, to name but a few. Many of these small and medium-sized firms are looking to export for the first time. What discussions is his Department having with the Department for International Trade to expand some of these opportunities for those firms?

[Greg Clark]

We know that there is huge demand for these products. For example, one reason behind the expansion of the creamery is the increasing appetite in China for cheese produced in Cornwall. My hon. Friend mentioned Sharp’s brewery, and the investment in the facility at Rock now means that 340,000 pints of Doom Bar a day can be produced there. I hope some of those will leave these shores and be enjoyed around the world.

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

Controversially, Britain’s earliest pasty recipe comes from Plymouth rather than Cornwall. It dates from 1510 and was found in Plymouth borough’s accounts. Pasties are a key part of both Plymouth and Cornwall’s identity. What discussions has the Minister had to ensure that the name “Cornish pasties” is protected after we leave the EU, preventing anyone else around the world from forging pasties, whether Cornish or from Plymouth?

[Greg Clark]

Anyone who has enjoyed pasties in Cornwall or—dare I say?—Plymouth will attest to their unique qualities. We have products across the United Kingdom that are associated with the places where they are manufactured. It is an association of quality, and we will ensure that they continue to be protected as part of our negotiations.

[Colleen Fletcher (Coventry North East) (Lab)]

4. What steps he is taking to support the automotive industry.

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

The automotive sector is one of our great success stories, and our recently published automotive sector deal, as part of the industrial strategy, sets out how we will continue to support it in future. The partnership continues to deliver results. In April, Vauxhall announced an investment of over £100 million in its Luton plant to build the next generation of Vivaro vans. Last month, the Society of Motor Manufacturers and Traders, the sector body, reported that UK van production had increased by almost a fifth compared with last year.

[Colleen Fletcher]

Jaguar Land Rover is one of Coventry’s biggest employers. Recently, JLR revealed its intention to make Coventry the heart of its large-scale battery and electric vehicle production plans. This is welcome news for my city. With that in mind, what support can the Minister offer to Jaguar Land Rover to ensure that Coventry becomes the centre for large-scale battery and electric vehicle production?

[Greg Clark]

I am grateful for the hon. Lady’s question and I completely agree with her praise and support for that very important employer. JLR’s expansion plans and its plans to make electric vehicles in Coventry are reinforced by the Faraday challenge, which is part of the industrial strategy, and the national battery manufacturing development facility is based at Warwick University’s campus there to support that company and many others besides.

[Andrew Selous (South West Bedfordshire) (Con)]

Does the Secretary of State agree that it would be a cruel irony if Volkswagen, the author of the emissions cheating scandal, were to make large pay-outs in Germany and the United States, which would help those countries to boost their electric vehicle capacity, but made no similar pay-out to help the United Kingdom move ahead in this area?

[Greg Clark]

My hon. Friend is right that the consequences have to be borne by the companies that cheated the system. We need to make the transition to ultra low emission vehicles to make sure that we lead the world in this area. Just a few weeks ago, Toyota announced a big investment in the future of mobility here in the UK, based on the commitments that we are making as part of our industrial strategy.

[Matt Western (Warwick and Leamington) (Lab)]

21. Scrappage schemes have been used in the past to assist businesses and industries in a transition. Has the Minister costed a support package to scrap old diesel vehicles and assist in a managed transition to renewable/alternative energy vehicles?

[Greg Clark]

The hon. Gentleman is right that we need to see a managed change. Earlier, my right hon. Friend the Minister for Energy and Clean Growth pointed out that the next generation of diesel can play a big part in not only reducing greenhouse gas emissions, but improving air quality. We will shortly be setting out our proposals on how we make the important transition to zero emissions across our vehicle fleet.

[Lucy Allan (Telford) (Con)]

Hundreds of jobs in my constituency rely on the Jaguar Land Rover supply chain. Will the Secretary of State tell the House what he is doing to help car manufacturers to deal with the uncertainty of Brexit and the fall in demand for diesel vehicles?

[Greg Clark]

I will. My hon. Friend is right to comment on the supply chain. A big part of the automotive sector deal, which we concluded with the sector, is to boost the proportion of components that are sourced in the UK. This is a joint commitment that we make, as part of the industrial strategy, but she is also right to draw attention to the importance of our continued ability to trade with the rest of the European Union, free of tariffs and with low friction, so that we can maintain the just-in-time model, which is so crucial to our automotive sector.

[Sir Vince Cable (Twickenham) (LD)]

Following the loss of the Discovery model to Slovakia, which was a decision at least partly influenced by Brexit, what steps is the Minister taking to head off the risk to Jaguar Land Rover’s exports to China where the rules of origin will conflict with the interests of the company in the event that we lose the customs union and we no longer have sufficient UK content in the cars?

[Greg Clark]

The right hon. Gentleman is wrong about the decision that was made. In fact, it is a decision to prepare Solihull for the next generation of the Range Rover and the Range Rover Sport. JLR described that as a huge investment and a technology upgrade in Solihull, so I hope he will welcome that. He knows that the importance of making sure that we are able to continue to trade—this includes recognising rules of origin not just with the European Union, but around the world—is vital for this company.

[Mark Pawsey (Rugby) (Con)]

Many intending to purchase new cars are unsure what type of engine to opt for, partly as a consequence of Government taxation policies. That is having a serious effect on the British motor manufacturing industry. Will the Secretary of State confirm that there remains a future for clean diesel?

[Greg Clark]

I will indeed. We are not the only country that is seeing a fall in the sales of diesel. As I and my right hon. Friend the Minister of State have said, clean diesel and the new generations of diesel engines have a very important role to play in the transition to ultra low emission vehicles.

[Laura Pidcock (North West Durham) (Lab)]

Contrary to what the Secretary of State has said, over the past six months nearly 2,000 job losses have been announced in the UK’s automotive sector. This week in the media we have seen speculation about thousands of further redundancies caused by a combination of factors, including worries about possible consequences of a no-deal Brexit and the absence of the customs union. May I press the Secretary of State to set out how the Government will work with business, industry bodies and trade unions to ensure security of the automotive industry and those employed in it both in the immediate future and beyond UK’s exit from the EU?

[Greg Clark]

We work very closely with the industry with great success. Engine production in this country was up over 17% last year, reaching 1 million engines. That is a record. Never in the history of the British motor industry were more engines produced than last year. Over the past year, the net number of jobs that are being created—note the word “created”—in the automotive sector in this country is 9,000.We have a very good record of working closely with the industry to support an industry that is not only very successful today, but will continue to flourish in the future.

[Antoinette Sandbach (Eddisbury) (Con)]

5. What steps he is taking to support vulnerable consumers with their energy bills.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

20. What steps he is taking to tackle rising energy prices.

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

The Government are committed to helping energy consumers. We have brought forward the price cap Bill, and more than 2 million low-income households receive £140 a year through the warm home discount.

[Antoinette Sandbach]

Does the Secretary of State agree that a wide-reaching energy efficiency programme would help vulnerable customers in Eddisbury and elsewhere, as well as helping the UK meet its climate change targets?

[Greg Clark]

My hon. Friend is absolutely right. One of the missions that the Prime Minister announced as part of our grand challenges in the industrial strategy is to reduce by 50% the energy consumption of homes built in the future. That has an important impact not only on our greenhouse gas emissions, but on the bills that people face.

[John Lamont]

With recent rises in fuel costs, many motorists in the Scottish borders feel like they have been taken for a ride. What steps are the Government taking to try to reduce the impact of higher taxation on fuel, and what analysis has the Department carried out on the allegations of rocket and feather pricing on petrol and diesel sales at the pump?

[Greg Clark]

I am grateful to my hon. Friend for the question. It is a very important market. Obviously, recent oil price rises have had an impact at the petrol pumps. It is important that prices are competitive and not, as he implies, subject to rising quickly and then taking a long time to decline. The Office of Fair Trading last looked at this in 2013, but I expect its successor, the Competition and Markets Authority, under Andrew Tyrie, a noted consumer champion, to keep this under close review.

[Rachel Reeves (Leeds West) (Lab)]

Up to 200,000 customers do not benefit from the warm homes discount because they get their energy from smaller energy suppliers. Is it not time to extend the warm homes discount, especially since energy bills are going up and we are trying to crack down on rip-off tariffs?

[Greg Clark]

The hon. Lady, Chair of the Business, Energy and Industrial Strategy Committee, makes a very important point. We are reviewing whether the threshold for exclusion is appropriate; I know that she will welcome that.

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

Some 169 households in my constituency have been affected by the mis-selling of insulation and solar panels by HELMS. This company was accredited by the Government under the old green deal scheme, so what will the Government do to compensate these people—often vulnerable pensioners—and how will they prevent such mis-selling from happening under the new green deal scheme?

[Greg Clark]

As with any other supplier, consumer protection rights are in place and available. I would be very happy to meet the hon. Lady to discuss this particular case and see whether we can help.

[Stephen Kerr (Stirling) (Con)]

Vulnerable customers can benefit from the use of smart meters. Will the Secretary of State update the House on how many SMETS 2 meters have now been installed and are connected to the Data Communications Company?

[Greg Clark]

I can tell my hon. Friend that 1,000 new SMETS 2 meters have already been installed. That is a significant milestone because it represents the beginning of the roll-out of the next generation of meters.

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

As businesses look to expand their market share in the wider evolving world market beyond the EU ahead of next year, what priority are the Government giving to maintaining and trying to reduce energy bills to create employment and prosperity right across the United Kingdom?

[Greg Clark]

The hon. Gentleman makes an extremely important point. We have commissioned Professor Dieter Helm to look at how we can reduce the costs of our energy system for businesses and consumers. One of the advantages of the strategy that we have pursued is that we have brought down the costs of offshore wind—a major contribution—by targeting and investing substantially in it at a rate, as my right hon. Friend the Minister for Energy and Clean Growth said earlier, which has resulted in a reduction beyond what anyone expected even a couple of years ago.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

6. What steps he is taking to encourage investment in environmentally sustainable electricity generation.

--- Later in debate ---

[Ms Marie Rimmer (St Helens South and Whiston) (Lab)]

15. What progress he has made on developing (a) sector deals and (b) local industrial strategies as part of the industrial strategy.

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

Our modern industrial strategy will boost productivity and earning power across the UK. We have announced four sector deals in areas including life sciences, the creative industries, the automotive sector and artificial intelligence. More will come in the weeks ahead. I am encouraged by the work of the mayoral combined authorities and local enterprise partnerships in developing local industrial strategies.

[Ms Rimmer]

I and my Front Bench colleagues have been informed that dozens of sectors have put forward proposals for a sector deal, including the steel industry, but have had little or no engagement from the Government. Will the Secretary of State confirm how many proposals for sector deals he has received and to how many he has formally responded?

[Greg Clark]

I am delighted to report that we have had a huge interest from sectors right across the country, including the steel sector. The Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Watford (Richard Harrington) and I have had substantial discussions with the steel industry and we look forward to developing that deal in the weeks and months ahead.

[Martin Vickers (Cleethorpes) (Con)]

What progress is being made on the Greater Grimsby town deal?

[Greg Clark]

I know this deal is close to my hon. Friend’s heart and that of his constituency neighbour. I have made a commitment to come to Cleethorpes and, I dare say, Grimsby to help with that negotiation. I look forward to doing so soon.

[Several hon. Members rose—]

--- Later in debate ---

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

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 departmental questions, we have taken further steps to implement our industrial strategy. In early May, we launched UK Research and Innovation, with a budget of £6 billion a year, to drive forward our growing investment in research and development. The Prime Minister announced four missions that our grand challenges will achieve, including to save 20,000 lives a year through artificial intelligence-assisted cancer diagnosis. We have launched sector deals in AI, convened the first ever Retail Sector Council and launched a major programme to drive productivity in smaller companies. On the 150th anniversary of the creation of the TUC, from the party that established the royal commission that decriminalised trade unions, that brought in widows pensions and holiday entitlements, that created the national living wage—in other words, Mr Speaker, the true workers’ party—we wish the TUC a very happy birthday.

[Diana Johnson]

Of course, I say to the Secretary of State that the Labour party was founded by the trade unions.

My question is about retail. In Hull, retail employs 12,000 people. Hull’s House of Fraser store is going to close, with the loss of 207 jobs. Hull has three Poundworld stores that are under threat and there are also concerns about Hull’s Marks and Spencer store, which may be one of the 60 unidentified branches closing by 2022. After the Comet collapse, which cost taxpayers some £45 million, what is the Minister going to do to assist shop workers and protect taxpayers?

[Greg Clark]

The hon. Lady will concede that the efforts and engagement through the city of culture year between the Government and Hull were very substantial and very effective. I am familiar with the House of Fraser store in Hull. I know what an important part it plays in the life of the town centre. I understand that the council is confident that such a prime site, which I know well, will be taken up. I will work closely with the council to make sure, through the sector council, it has all the help it needs.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

T4. Will my right hon. Friend update the House on what he is doing to support vulnerable people in Mid Dorset and North Poole with their energy bills?

--- Later in debate ---

[Lucy Powell (Manchester Central) (Lab/Co-op)]

T6. With Government support for the third runway at Heathrow coming on top of Crossrail 2, is this not yet another example of infrastructure spending going to the south-east of England? Will the Secretary of State now up the ante and make sure that we get the infrastructure spend to realise the northern powerhouse?

[Greg Clark]

We are getting on with major infrastructure investments that would be good for the whole United Kingdom and that the previous Government did not take.

[Richard Graham (Gloucester) (Con)]

T9. Like all good films, I hope that a Government response to the Hendry review is “Coming Soon”, but meanwhile, will the Minister share with us whether she agrees that the opportunities for marine energy, whether tidal stream, tidal lagoon or waves, are enormous? Does she agree that they deserve more support and encouragement to develop this fantastically innovative source of additional low-carbon, domestically produced energy?

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

Factory output has decreased, according to the papers today. Will the Minister outline what he can do to assist factory manufacturing and initiate a clear industrial strategy?

[Greg Clark]

As the hon. Gentleman knows, through the industrial strategy, which has been developed in close collaboration with the Engineering Employers Federation, and through investment in research and development and skills, we are doing everything we can to take the opportunities arising.

[James Cartlidge (South Suffolk) (Con)]

Given the success of auto-enrolment, will the Minister outline what steps the Department is taking to ensure that as the country saves more, we invest more in British industry?

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

The decision by JLR to invest in electric vehicles is very welcome, but equally the decision to produce the Discovery model in Slovakia is profoundly worrying. Does the Secretary of State agree that it underlines the need for tariff-free access for both cars and components in the EU?

[Greg Clark]

I agree with what the hon. Gentleman said at the end—of course we need tariff-free access with a minimum of frictions to these important markets—but I disagree that this is not a sign of significant confidence. JLR is investing in the next generation of vehicles. I hope he will welcome that.

[Melanie Onn (Great Grimsby) (Lab)]

What is the Secretary of State’s No. 1 initiative to ensure that the Greater Grimsby town deal moves from theory to reality?

[Greg Clark]

As I said to my hon. Friend the Member for Cleethorpes (Martin Vickers), I will come and sit down with Grimsby and Cleethorpes leaders to negotiate it myself.

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

There is clearly a crisis on our high street, so will the Minister ensure that business rates are fully addressed in this year’s Budget?

--- Later in debate ---

[Greg Clark]

I work night and day to make sure that British and international businesses continue to invest in this country, and they have shown a willingness to do so. We want to be the best location not only for trade with Europe but for trade around the world, and that will form part of our negotiations.

[Stewart Malcolm McDonald (Glasgow South) (SNP)]

What support can my constituents, who are among the 5,000 set to lose their jobs at Poundworld, expect from the Government?