Oral Answers to Questions

Greg Clark Excerpts

Tuesday 30th April 2019 Commons Chamber

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

3. What assessment he has made of the effect of uncertainty of the UK’s trading relationship with the EU on the delivery of the industrial strategy.

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

As the hon. Gentleman will know, there are huge opportunities for advanced manufacturers, especially in his region, and the sector benefits from a minimum of frictions in trade, so it is very important that we conclude a deal with the European Union.

[Mr Bailey]

I thank the Secretary of State for that reply and commend him for his approach. Boosting productivity is the declared objective of the industrial strategy, but it is plummeting at the moment due to Brexit uncertainty. Does he agree that it is absolutely essential that we get an early Brexit deal that delivers both a customs union and frictionless market access to the EU, because otherwise it is doomed to failure?

[Greg Clark]

I am a bit more optimistic than the hon. Gentleman in that respect, not least because of the announcement just yesterday from the Advanced Propulsion Centre, which he knows very well, about the opportunity of nearly £5 billion for manufacturers, including in the west midlands, to participate in the growing market for electric vehicle batteries. It is therefore crucial that we drive productivity forward. He will also know of the work that Jürgen Maier is leading, as part of the Made Smarter Review, to capitalise on the opportunities. However, as I have always been clear with the House, we can best advantage those manufacturers if they are able to continue to trade freely and without frictions with the European Union.

[Andrew Bridgen (North West Leicestershire) (Con)]

Can the Secretary of State confirm that the Government have held discussions with a range of businesses, including those with complex customs requirements and those that export and trade mainly with the European Union, in formulating all their plans?

[Greg Clark]

I and my colleagues meet very regularly—every day—with businesses in all sectors and in all parts of the country. I think that there is a strong feeling in the business community that we need to bring to a resolution the question of our future relationship with the European Union. The longer this situation goes on, the more attractive investment decisions are put on hold, and they could be creating jobs now.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

The most recent quarterly economic survey from the North East England chamber of commerce shows a reported mark-down in sales and exports from the north-east. It states:

“We frequently hear from members that uncertainty over Brexit is delaying investment and hiring decisions for their businesses and their customers.”

What specific north-east-focused steps are the Government taking to ensure that the north-east business community and local jobs will not be affected by that, given that the Government’s own analysis shows that any Brexit outcome will affect the north-east the hardest?

[Greg Clark]

One specific north-east-focused step is to invite the hon. Lady to vote for the deal that has been put before the House.

[Tom Pursglove (Corby) (Con)]

The steel industry is, rightly, a key part of the industrial strategy. In that context, what early discussions has the Secretary of State had on the steel charter and the key asks contained within it?

[Greg Clark]

The discussions that we have had are intended to ensure that the steel sector, which is of fundamental importance to this country, can benefit from some of the manufacturing opportunities that we have talked about. As we expand our production of vehicles, as I hope we will do, there will be a strong requirement for steel, and through the proposed strategy we will ensure that that is British steel.

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

The Secretary of State’s industrial strategy states that manufacturing is crucial to the economy and promises to support businesses to access international markets and drive up exports. However, according to Make UK, stockpiling in the UK is now the highest of any G7 nation ever, as manufacturers try to protect themselves from Brexit uncertainty. Chambers of commerce across the country report falls in cash flow because money tied up in stock is not available to drive exports or pay wages. Cash flow is the lifeblood of manufacturing and the cause of up to 90% of business failures. Whatever the eventual outcome of the Government’s Brexit shambles, British manufacturers must be in business to meet its challenges, so will he now commit to providing financial support?

[Greg Clark]

The hon. Lady quotes Make UK. The chief executive of Make UK, with whom I meet almost every week, has said:

“Make UK has consistently supported the Government’s withdrawal agreement as it removes the risk of no deal and delivers a sensible transition period which is vital for the needs of manufacturers.”

I think the hon. Lady and I have a joint view on the importance of manufacturing, not least in the north-east. I hope that she will have the flexibility and pragmatism to come together—I am talking to her colleague the shadow Secretary of State—and agree a way forward in line with what Make UK recommends.

[Kerry McCarthy (Bristol East) (Lab)]

4. When his Department plans to publish its smart export guarantee proposals for new solar households.

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[Martyn Day (Linlithgow and East Falkirk) (SNP)]

15. What plans he has to hold discussions with trades union representatives on increasing workers’ rights.

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

Informed by my regular discussions with trade unions, we have extended worker rights, and both Houses agreed last month to close the Swedish derogation loophole to protect agency workers. On 1 April, we celebrated with union representatives the 20th anniversary of the national minimum wage. The day was marked by the rise in the national living wage, which has delivered the fastest pay rise for the lowest paid in at least 20 years, benefiting nearly 1.8 million workers.

[Martyn Day]

The Scottish Trades Union Congress general secretary, Grahame Smith, has said that the Scottish Government’s

“Fair Work Action Plan demonstrates a commitment to using the powers the Government has at its disposal to deliver Fair Work, which is good for workers and good for business.”

Will the Secretary of State do his bit by introducing a real living wage? If not, will he devolve the policy so that the Scottish Government can?

[Greg Clark]

What the hon. Gentleman did not mention is that this Government introduced the national living wage, and we have just increased it to its highest-ever level, benefiting millions of people around the country. I would have thought that he would welcome that.

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

There are many warm words from the Government on workers’ rights, but to say that the Conservatives are the party of workers is a joke, because their actions in government tell a different story. Strong economies are almost always underpinned by strong trade union rights. Germany, Sweden, Norway and Denmark all have extensive sectoral collective bargaining coverage, which has been used to reduce income inequality and drive up wages. The hostility towards trade unions and the dismissal of collective bargaining here is not just bad for workers but bad for the economy, creating a vicious cycle of lower wages, reducing tax revenues and lowering spending. The obsession with undermining union rights is self-defeating. What is the Secretary of State doing to break the cycle?

[Greg Clark]

If you want to be the party of workers, you need to be the party that creates work. There are 1.5 million more people employed in work as a result of this Government’s policies, and of course we want to make sure they are in good jobs. The effort of our industrial strategy is to drive up productivity, which is necessary if pay rates are to increase over time. The hon. Lady should acknowledge the reforms, brought in partly as a result of the Matthew Taylor report, that have closed the Swedish derogation, which her party failed to close over 13 years in office.

[Stephen Kinnock (Aberavon) (Lab)]

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

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

Nearly 30 years ago Margaret Thatcher made a speech at the UN General Assembly in which she described

“what may be early signs of man-induced climatic change.”

Ever since then, the UK has continued to lead the world on this issue. The UK, yet again, broke its coal-free power generation record, which now amounts to more than three and a half days without any electricity being generated from coal, over the weekend—the longest period since the industrial revolution in which coal has not been burned for power in this country.

Later this week we have another seminal moment in which the independent Committee on Climate Change will report back, at the Government’s request, on how we can set a date to achieve net zero emissions—once again, this country is leading the world on climate change.

[Stephen Kinnock]

I am sure the House will wish to join me in paying tribute to the management, the workforce and the emergency services who dealt so effectively with the explosion at the steelworks in my constituency on Friday. We wish the two men who received minor injuries all the best.

The predecessor of the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Pendle (Andrew Stephenson) promised the last meeting of the all-party parliamentary group on steel and metal-related industries that he would host a meeting of steel sector stakeholders, supply chains and steel MPs to discuss the failure to develop a steel sector deal. Will the Minister now commit to honouring that commitment and to meeting us as soon as possible?

[Greg Clark]

First, I join the hon. Gentleman in paying tribute to the workers at Port Talbot and to the emergency services, which responded with characteristic bravery and dispatch to deal with that very worrying incident. The Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Pendle (Andrew Stephenson), and I spoke to the company and the trade unions the next morning, and we are all relieved that the situation was not worse. Of course, we send our sympathies to the workers affected.

As the hon. Member for Aberavon (Stephen Kinnock) knows from an earlier answer, we are clear on the importance of the steel sector for the future of manufacturing generally, and I take a personal interest. These are early days for the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Pendle, but I know he shares my enthusiasm, and perhaps we can both come to that meeting.

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

T4. British businesses in all sectors currently benefit greatly from the ability of UK-based law firms to advise and act for them on contractual, regulatory and intellectual property matters when they conduct business within the European Union. What steps is my right hon. Friend taking with other Ministers to ensure that commercial advantage is not lost as we leave the EU?

[Greg Clark]

My hon. Friend, who chairs the Select Committee on Justice, makes an excellent point on one of our principal sources of export earnings. More than that, the pre-eminence of law in the UK brings firms from jurisdictions around the world to do business here. We are determined that we should maintain our good relations across the continent and that we should keep up to date in our practices. He will know that, through the industrial strategy, we are investing in the regulators’ pioneer fund to make sure that legal services take their place at the cutting edge of innovation.

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

On 4 April, the Office for Product Safety and Standards published its investigation into Whirlpool and the ongoing issue of its product safety. The report was lambasted by consumer organisations, including Which?, as weak. Just days later it was revealed in the media that Whirlpool allegedly paid one consumer to stay silent after she was forced to flee with two young children as a blaze engulfed her home after her dryer had been modified. Can the Minister tell us whether the OPSS was aware of those allegations and, if not, whether it will now reopen its investigation in light of the accusations?

[Scott Mann (North Cornwall) (Con)]

T7. Many of my constituents still access some form of off-grid energy. While the Department looks to introduce a cleaner form of energy, will it also look at the cost impact of energy? Many of these people are also in fuel poverty and would like not only a clean form of energy, but a cheap one.

[Greg Clark]

I recognise the situation my hon. Friend describes; in his rural constituency, this is a big problem. In the spring statement, we announced that the future homes standard would ensure that all new buildings, including those in rural areas, are equipped with low-carbon sources of heat and power by 2025. We also recognise the importance of households that are off the gas grid and have them in mind as we deal with the energy companies in terms of their tariffs.

[Douglas Chapman (Dunfermline and West Fife) (SNP)]

T2. This Government are not even hiding their disdain for Scottish business, with one of them telling the BBC recently:“Once you’ve hit the”—Brexit—“iceberg, you’re all on it together”. When will the Minister accept that if he will not provide that level of security and that lifeboat, the Scottish people will, by voting for independence?

[Greg Clark]

It is a sad reflection that the job creation that has taken place in Scotland lags behind that in the rest of the UK. I fancy that one reason for that is that Scotland has acquired a reputation for being the highest- tax part of the UK. So I hope the hon. Gentleman would reflect on these causes and advise his colleagues in Holyrood to take a different course.

[Peter Aldous (Waveney) (Con)]

T9. England is currently the only home nation that provides no central Government investment to improve domestic energy efficiency. To address this deficit, will the Secretary of State take up the Committee on Fuel Poverty’s proposal for the introduction of a new clean growth fuel poverty challenge fund?

[Greg Clark]

I am aware of the advice from the committee, which we will consider carefully. My hon. Friend will know that the energy company obligation has been reformed to concentrate on fuel poverty, but we are grateful for the committee’s advice and we will respond shortly.

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

T3. I know that the Secretary of State will agree with more than 80 cross-party MPs who came together yesterday to say that to realise the northern powerhouse vision, we need the economic commitment to Northern Powerhouse Rail and HS2. Will he communicate that to aspirant Members from his party who want to see a race to the bottom in the next Tory leadership race? The north will not tolerate that.

[Greg Clark]

Across the country, it is crucial that we invest in infrastructure. If we want to compete with other nations across the world, we need to make sure that our businesses and our people can count on fast connections, and that includes between our great cities.

[Richard Harrington (Watford) (Con)]

Now that I am not bound by the ministerial code, or indeed collective responsibility, I feel that I can speak my mind about sector deals. I think they are absolutely brilliant, and I ask my right hon. Friend the Secretary of State to point out some of the achievements made on delivering the commitments made between the Government and industry.

[Mr Speaker]

I cannot say that I had noticed that the hon. Gentleman was previously all that closely bound.

[Greg Clark]

That was my experience, too, Mr Speaker. Goodness knows what my hon. Friend will be like now that he is on the Back Benches. May I pay tribute to the fantastic work he did in securing so many of the sector deals? He got to know very well the needs of particular industries and sectors. Let me pay tribute to the creative industries sector deal, for example, which this very weekend launched a new immersive technology version of “Peaky Blinders”. I do not know whether he is a fan of that series. If he is—

[Mr Speaker]

What is it?

[Greg Clark]

“Peaky Blinders” is an award-winning programme, which my hon. Friend will be able to experience in virtual reality as a result of the sector deal done with our creative industries, particularly the gaming industry.

[Laura Smith (Crewe and Nantwich) (Lab)]

T5. A recent report by the Society of Motor Manufacturers and Traders estimated that the UK could lead the world in connected and autonomous vehicles. What steps are the Government taking to ensure that UK car manufacturers can seize this opportunity?

[Greg Clark]

The hon. Lady will know that the investment that is being made through the industrial strategy in testbed facilities and data centres for connected and autonomous vehicles is geared towards making Britain the go-to place in the world for the development, deployment and manufacture of such vehicles. As the hon. Lady takes an interest in the sector, I would be delighted to invite her to see and meet some of the companies involved in what is a great set of possibilities for this country.

[Helen Whately (Faversham and Mid Kent) (Con)]

Shared parental leave is a good option for new parents, but the Secretary of State will know that take-up remains low. Will he consider introducing a stand-alone period of parental leave just for partners, to help families to balance work and childcare?

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

T8. I came to the House today hoping for some passion and leadership from the Secretary of State. There is a real opportunity for British business and universities to tackle climate change with innovation and enterprise. What do we get today? The dullest Question Time I have ever seen in this place.

[Greg Clark]

The hon. Gentleman should celebrate the fact that, when it comes to renewable energy, we are the leading nation in the world for the deployment of offshore wind. We are creating jobs right throughout the country, and many constituencies have people in good jobs because of the leadership in renewable energy that we have displayed. We will go further in the years ahead.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

Solar plus battery storage will soon be commercially viable without any subsidy. Is now the right time to plan for a huge deployment of solar on every public building, school, hospital and prison?

[Greg Clark]

My hon. Friend makes an excellent point. If there is the possibility of more renewable energy than was previously contemplated and we can store it, we will solve our energy needs for the future, thereby helping business and consumers. I shall take up my hon. Friend’s suggestion.

[Stephanie Peacock (Barnsley East) (Lab)]

My constituent was made redundant from Carillion last April after 11 years’ service as a cleaner. She has been passed from pillar to post, from PwC to the insolvency services. Will the Minister please look into this case as a matter of urgency?

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

Will the Minister confirm that the Secretary of State for Scotland put in writing his objection to onshore wind finding a route to market in Scotland? Why will the Government not release that correspondence in the interests of transparency?

[Greg Clark]

I am not aware of the inquiry that the hon. Gentleman mentioned. I will follow it up with the Scottish Secretary.

[Several hon. Members rose—]

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[Stephen Kerr (Stirling) (Con)]

The Business, Energy and Industrial Strategy Committee and the Competition and Markets Authority have both published reports calling for change in the UK audit industry. Will the Secretary of State undertake at the Dispatch Box that the power of the big four audit firms in the UK will not stop this agenda for change?

[Greg Clark]

I will give that commitment. I am very pleased that the Competition and Markets Authority has launched that report and made some interim recommendations. We will be looking at them during the weeks ahead. My hon. Friend is absolutely right to say that this is a sector that is fundamental to the confidence that we have in businesses right across the country.

[Chris Bryant (Rhondda) (Lab)]

Everybody wants to do their bit by recycling, but it is absolutely infuriating when we get to the supermarket and all the fruit and veg is wrapped in plastic. Then there is the exciting moment when we get home to the kitchen and see that there is a little sign, which looks like the packaging is recyclable, but then we read the words, “Not yet recyclable”. What on earth do they mean by that? Are we meant to keep it all until, suddenly, somebody announces that it is now recyclable? Are we meant to put it in the attic or store it in a cupboard? What are we meant to do? Surely, we should ban those words. The packaging is not recyclable and it should not be available.

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[Ruth George (High Peak) (Lab)]

The other week, I was shocked to meet a constituent who had worked in care for nine months solidly without being given a single day off, while on a zero-hours contract. Such workers, who are vulnerable, need protection for their rights at work. Will the Secretary of State look at bringing in group claims for industrial tribunals and representative cases so that workers do not have to stick their head above the parapet?

[Greg Clark]

I was pleased to meet the hon. Lady yesterday to discuss this matter. I share her concerns about the case that she mentioned and take her suggestion very seriously. As I have committed to her, we will take this forward together.