General Election Television Debates

Greg Clark Excerpts
Wednesday 11th March 2015

(9 years, 2 months ago)

Commons Chamber
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Greg Clark Portrait The Minister of State, Cabinet Office (Greg Clark)
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I thank the right hon. Member for Belfast North (Mr Dodds) for giving us an opportunity to debate this matter, and for making such a powerful speech. I also thank him for evoking the spirit of Lord Molyneaux, whose presence, given the respect that he enjoyed in this place, would no doubt have been very welcome during these rather turbulent discussions.

This may be a debate about debates, but it still matters. Millions of people watched the televised debates at the time of the last general election, and I think that it was a positive step for our democracy that the electorate were able to reflect on the choices that were put before them. However, as we heard from my hon. Friend the Member for Montgomeryshire (Glyn Davies), television debates are not the only feature of a general election campaign, and the intensity and concentration of their sequencing tends to generate a close interest which, as the Prime Minister put it, sucks some of the life and vitality out of the campaign itself. That was certainly the case last time. Three years ago, the Prime Minister proposed that we should agree on a set of debates that would, ideally, take place before rather than during the short campaign, so that campaigning in the constituencies would not be overshadowed by the very important aspects of the debate.

Ian Swales Portrait Ian Swales
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Does the Minister believe that such debates should take place before the publication of party manifestos?

Greg Clark Portrait Greg Clark
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As was made plain today during Prime Minister’s Question Time, there is plenty to talk about. I think that the choices between the parties are pretty clear, and I see absolutely no reason why we should not have a debate. The Prime Minister proposed that we should have one during the week beginning 23 March, and I hope that his proposal will be taken up.

The right hon. Member for Belfast North was ingenious in drafting the motion. This is not, of course, a matter in which the Government have any direct legislative say. I think it important for the press—and broadcasters specifically, as part of the press—to be recognised as being robustly independent, and I would not want to breach that in any way

The Government have no direct role in the conduct of the leaders debates, which, in my view, is entirely proper. Government policy extends only to the framework by which broadcasters are regulated in the United Kingdom. Under the Communications Act 2003, Ofcom, the United Kingdom’s independent communications regulator and competition authority, is required to set the standards for programmes on television and radio, which are embodied in the broadcasting code. The code applies to all broadcasters who are licensed by Ofcom. Crucially, it contains specific rules that apply during election periods and require licensed broadcasters to ensure that their coverage is duly impartial. That includes the requirement for due weight to be given to the parties.

In parallel the BBC, whose output is overseen by the BBC Trust, has editorial guidelines and election guidelines that set out the requirements for impartiality and accuracy generally, and specifically within an election period. The role of the press has been debated extensively during this Parliament and I know that all Members will support me in recognising the principle that independence and the requirements for accuracy and impartiality should be at the heart of broadcasting in this country.

Let me say a little about the particular contention in this debate. The aspect that the right hon. Member for Belfast North raised is who gets the power, in effect, to decide who gets a platform and who does not, and the way in which that has been conducted. He made a powerful case on behalf of his party and all parties in Northern Ireland. He expressed forcefully their concern about their exclusion from the arrangements proposed by the broadcasters. He referred to the fact that at the last election the Democratic Unionist party won more votes than one of the parties that is included in the seven-way debate, and more seats than four of them.

To try to cut through the logjam, the Prime Minister made an offer to participate in a seven-way debate before the start of the campaign. The leader of the Labour party said that he would debate the Prime Minister “any time, any place, anywhere”, as I understand it. The Prime Minister has proposed a time: he proposed that there should be a debate the week after next. The offer has been made; it is now up to the Leader of the Opposition to accept it.

As for the specific line-up of the parties, the Prime Minister has said, as the right hon. Member for Belfast North will be aware, that the leader of the DUP should be permitted to make his case for why he should be included, but that case should be made to the broadcasters rather than to the Government.

Graham Stringer Portrait Graham Stringer (Blackley and Broughton) (Lab)
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May I take the Minister back to the point about the timing of these debates? Of course the Prime Minister and the Leader of the Opposition can find plenty to talk about. No doubt they could fill an hour arguing every day of the week, but the point is that in elections the electorate has the opportunity to vote for a manifesto. Is it not absurd for the Prime Minister to propose a debate before the manifesto is published? That is a con on the electorate.

Greg Clark Portrait Greg Clark
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I do not agree with the hon. Gentleman. There is plenty to debate, as he is kind enough to acknowledge, week after week. There will be no shortage of points that can be made in the debate and it would be a good thing to get on with it. I hope the Leader of the Opposition will change his mind and agree to participate in the debate.

In every part of the United Kingdom, we are living through a time of rapid political change. Between one election and the next, we have seen major shifts in voter support, so it is vital that we do not see the result of previous elections fossilised in the format of the TV debates. It is for this reason that the Prime Minister objected to the exclusion of the Green party from the broadcasters’ original proposal. To people who ask, “Why should he care?”, let me give an answer that should appeal to all of us in the House. The more we are seen as turning our back on the legitimate expectation that people whose parties enjoy some support in the country should be able to make their case, the more we risk increasing the sense of alienation between this place and the country we represent. I also think it is a good thing to put the smaller parties on the spot. We know they can protest, and they often do so vociferously, but the question is whether they can propose workable solutions to the problems that they draw attention to. That is a different matter.

Speaking of workable solutions, it is clear, as the right hon. Gentleman affirmed in his remarks, that the broadcasters have failed to produce one in regard to the debates. Today’s debate demonstrates that the proposals made thus far have not achieved the breakthrough or the consensus that three years ago the Prime Minister said should have been engaged in ahead of the general election. Lord Grade’s letter, which many hon. Members have spoken about today, comes from a very distinguished and experienced broadcaster and regulator, who should obviously be listened to with respect. My party entered into negotiations with the broadcasters in good faith and repeatedly made the case for a more representative debate structure. Initially this was unilaterally disregarded, as the exclusion of the Green party made clear. The follow-up proposal was made without any consultation.

The motion before the House today proposes a new way forward—the creation of an independent body with responsibility for arranging the debates. The right hon. Gentleman would acknowledge that it is rather late in the Parliament to debate the proposal, but he proposes it to reflect his dismay at the arrangements that have been suggested. It gives us the opportunity to raise the key questions—most fundamentally, who would the independent body be independent of? How would it be established and how would it be funded? Which debates would it produce? Who would it invite and how would this stand up to challenge? How would it succeed in convening the parties at all? Would they be compelled to participate? How would it secure the distribution of the debates by the broadcasters?

Ian Swales Portrait Ian Swales
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The Minister mentions the possibility of parties being compelled to participate. As a great student of politics, he will know that rule 101 for incumbency is, “Don’t give your opponent a platform.” Does he accept that those in power will try not to have such debates, as we are seeing right now?

Greg Clark Portrait Greg Clark
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I can only speak for my party, but a platform for the Leader of the Opposition is something devoutly to be wished for by those of us on the Government Benches. I do not know whether that breaks rule 101, but I very much hope that the Leader of the Opposition will accept the invitation.

Stephen Twigg Portrait Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)
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On that point, the Leader of the Opposition has agreed to the broadcasters’ proposal for a head-to-head debate with the Prime Minister. Why is the Prime Minister refusing to have that debate?

Greg Clark Portrait Greg Clark
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The Prime Minister has made an offer. The Leader of the Opposition said that he would debate “any time, any place, anywhere”. The Prime Minister said that he would appear in the debate the week after next, and I look forward to the Leader of the Opposition appearing there.

The proposal for an independent body is not a new one. The House will be aware that the Select Committee on Communications in the House of Lords examined these questions and published its findings on 13 May 2014, in good time before the general election. Though recommendations were explicitly not made to the Government, reflecting the point that I made earlier, the Committee’s key conclusion questioned whether an independent body was required. It said that it had considered carefully the potential case for a body to be established independently of the broadcasters to oversee and produce broadcast election debates, but it has not been persuaded. It found no good arguments for the introduction of such a body.

Given the events of the past year, others, no doubt including the right hon. Member for Belfast North, will insist that the status quo is not working, and would perhaps invite that Committee to reflect on its proposals. In the immediate term, this is the purpose of the Prime Minister’s offer of a televised debate before the campaign proper, but time is running out. If the Leader of the Opposition does not make up his mind soon, it will be too late. Inevitably, he wants to distract us by insisting that the debate be restricted to the Prime Minister and himself alone. He does not want the scrutiny of the other party leaders—

Greg Clark Portrait Greg Clark
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The hon. Gentleman will have his chance.

The Leader of the Opposition does not want the scrutiny of other party leaders, including the leaders of other parties who are entitled to their say—the point that the right hon. Member for Belfast North made.

The Leader of the Opposition has already had his chance. My right hon. Friend the Prime Minister was debating with him again today. I have calculated that they have spent nearly 40 hours facing each other across this very Dispatch Box over the past four and a bit years. The latest instalment of this long-running televised head-to-head debate took place just a few minutes ago, and it will continue up to the moment that Parliament is dissolved. I can understand that the Leader of the Opposition might like one more chance to get it right—he tends not to come off the better in these head-to-head debates—but if it has not happened yet, I suspect it never will.

I read in the papers that the latest wheeze from the official Opposition is a law to make the TV debates mandatory. It is hard to know where to begin, or where the legal action from excluded parties would end. If participation in the debates is to be made compulsory, then, goodness me, are we to make watching them compulsory too, as part of the edification of voters? Indeed, it sometimes seems that the Opposition’s way of thinking is: why achieve anything through voluntary action when we can use the power of the state to enforce our will? It is very revealing of the instincts of the Labour party that, faced with a difficulty, it reaches for legislation and compulsion rather than agreeing a consensual way forward. In making this ludicrous proposal, the Labour leader has done more to reveal the likely chaos that would ensue from the election of a Labour Government than any number of debates could achieve.

Gregory Campbell Portrait Mr Gregory Campbell (East Londonderry) (DUP)
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On voluntary or compulsory participation, does the Minister agree that the ideal solution would be some form of independent commission for the next election five years hence, which every party is obligated to agree to, and with fairness as the essence of the decision about how the debate would be constructed? In that way, no one would have any excuse for running away from the debate.

Greg Clark Portrait Greg Clark
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I listened with respect to the proposal from the right hon. Member for Belfast North and his party. I understand the frustration they feel and why they are proposing this, but it is rather late in the day. I put on record my concern that compelling voluntary organisations to participate is not in the spirit of the way we have conducted these things. I accept the spirit in which the proposal has been made, however, and I do not think the intention is to put this on the statute book, but rather to explore the issues.

Lord McCrea of Magherafelt and Cookstown Portrait Dr William McCrea (South Antrim) (DUP)
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To assist in this matter, could a Speaker’s conference be brought into existence immediately after the election to ensure we have a way forward for the following election?

Greg Clark Portrait Greg Clark
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This will be a matter for the next Parliament, and the Government have not taken a view to that extent—and, speaking for the Government, I think it is right for me to record that. No doubt, however, having raised the debate this side of the election, if the Members of the hon. Gentleman’s party are returned after the election, they may well come back to it. The right hon. Member for Belfast North said in his speech that if anyone should compel the party leaders to give an account of themselves, it should be in this House by Mr Speaker, not by an unelected quango. This is, thank goodness, a parliamentary democracy. We do not have a presidential system, although if it was the presidential system of the United States of America, it could be that the Leader of the Opposition will be spending more time in the USA with his brother before long. Before that, however, let us give him one last chance through his spokesman here: an opportunity to appear before the nation with the other party leaders to explain why he should be Prime Minister. Our offer of this televised debate before the campaign starts still stands. Is he up for the challenge, or is he frit?

Julie Hilling Portrait Julie Hilling (Bolton West) (Lab)
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I thank the Minister for giving way; I thought he had sat down and had not allowed me in. Will he answer this question clearly for the record, because he has not done so yet: has the Prime Minister ruled out a head to head, potential Prime Minister with potential Prime Minister? Has he ruled that out, and am I correct in thinking that the debate he is offering is just one with other leaders?

Greg Clark Portrait Greg Clark
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I am always happy to extend my remarks to include the hon. Lady. What we have seen—I think this has been attested to in the speeches so far—is complete chaos and confusion on the part of the broadcasters. The Prime Minister has made an offer—an offer he first made three years ago—to have a debate before the election campaign starts. The offer is there on the table; I very much hope the Leader of the Opposition takes it up.

Stephen Twigg Portrait Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)
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I join the Minister in congratulating the right hon. Member for Belfast North (Mr Dodds) on securing this timely debate on this important subject. As has been said, the general election is just eight weeks away. In the 21st century, it is surely right that the public have an opportunity, in the weeks before polling day, to see the party leaders and potential Prime Ministers debate the issues.

Voter turnout has fallen significantly in recent years. Trust in politics and politicians is at a low ebb. We must do more to confront these challenges, and television debates are an opportunity for the party leaders to reach out, to inspire, to answer concerns and to attempt to engage with people. In 2010, nearly 10 million people watched the first TV debate between the leaders, eclipsing even “Coronation street” and “EastEnders”. It is an extraordinary opportunity to reach out to people, many of whom have not remotely started thinking about the election yet, and to give them the opportunity to hear from the leaders of the political parties. To reject that opportunity would be to show a disregard for the British public, who have made it clear that they want these debates to happen.

On this side of the House, we want these debates to happen. We have said that the broadcasters should make proposals, and we have accepted their proposals for three debates during the campaign. As my hon. Friend the Member for Bolton West (Julie Hilling) just reminded us, the Leader of the Opposition wants to debate the issues head to head with the Prime Minister. Realistically, there are only two leaders who could be Prime Minister after this general election, and the country should have the opportunity to see them debate head to head, and the broadcasters are proposing that there should be such a debate, alongside two others. That is why the Leader of the Opposition has said, to use his much quoted term, he will debate with the Prime Minister any time, any place anywhere. Of course, regardless of who is in power, we might expect the Leader of the Opposition to be bullish.

Greg Clark Portrait Greg Clark
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Does that offer extend to appearing in the week commencing 23 March?

Stephen Twigg Portrait Stephen Twigg
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If that is the proposal that comes forward and is supported by other parties, but not as the only debate. What the right hon. Gentleman and the Prime Minister are proposing is an election debate before the campaign has even started. As the hon. Member for Redcar (Ian Swales) and my hon. Friend the Member for Blackley and Broughton (Graham Stringer) have said in this debate, party manifestos will not even have been published in that week. If the citizens of the country are going to have an opportunity to question, and listen to, party leaders, that should happen after manifestos have been published.

Greg Clark Portrait Greg Clark
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As the hon. Gentleman said, part of the Leader of the Opposition’s phrase was “any time”, but the hon. Gentleman is now saying that there is a certain time before the election that is not acceptable. How does he reconcile that with the commitment to debate any time, any place, anywhere? Why not the week commencing 23 March?

Stephen Twigg Portrait Stephen Twigg
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Because we do not believe these are decisions to be cooked up between the party leaders. They should not be being made by the party politicians. They should be taken away from them. The broadcasters have proposed three debates, two with seven parties and one a head-to-head debate, and we have accepted those proposals. Why can the Conservative party and the Prime Minister not accept those proposals? Does the Minister want me to give way to him so he can tell us why they are so reluctant to accept a head-to-head debate?

--- Later in debate ---
Stephen Twigg Portrait Stephen Twigg
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I listened carefully to the right hon. Member for Belfast North when he opened the debate today, and I entirely understand the concerns that he raised. We certainly do not see the case for treating Northern Ireland any differently from Scotland or Wales. However, we strongly believe that it is for the broadcasters, not the politicians, to determine the nature of the debates. Even at this late stage, we hope that agreement can be reached.

Before I took those interventions, I was quoting my right hon. Friend the Leader of the Opposition. It could of course be said that parties in opposition will be bullish about these matters. Five years ago, when the current Prime Minister was Leader of the Opposition, he said:

“I absolutely believe in these debates and think they are great”.

He agreed with us, saying:

“I think it is great we are having these debates and I hope they go some way to restoring the faith and trust into our politics because we badly need that once again in this country”.

I agree. In 2010, the then Leader of the Opposition was exasperated by any suggestion that the debates would not happen, saying:

“I’ve always wanted these debates to happen. I mean, they happen in every country. They even happen in Mongolia, for heaven’s sake, and it’s part of the modern age that we should be in.”

Even as recently as last year, when he was no longer Leader of the Opposition but Prime Minister, he said:

“I’ve just always believed that these need to happen. It’s good for democracy. It’s good to see”;

and only five weeks ago, he said:

“I want to go and debate”.

But when push comes to shove, the Prime Minister is running scared.

We heard from the Minister today that the Conservatives want an election debate before the election campaign and before there are any party manifestos for the party leaders to be interrogated on. The Minister also talked about Prime Minister’s questions being the forum for debate. The current Prime Minister used to argue that Prime Minister’s Question Time was not a substitute for proper television debates, but he is now attempting to use it as his way out. We know what happens at Prime Minister’s questions: the Leader of the Opposition and other MPs ask a lot of questions and the Prime Minister does not answer them. The idea that that is a debate that could be a substitute for a forum in which party manifestos could be held to account is unacceptable.

Has the Prime Minister lost his nerve, or has Lynton Crosby lost the Prime Minister’s nerve for him? This is perhaps typical of this Prime Minister. He used to hug a husky and clamour for the green vote. That has gone. He used to talk about compassionate conservatism, but that has gone. He used to talk about a new way of doing politics, including the importance of TV debates, but now he is even turning his back on that, too.

We cannot allow future Prime Ministers, of whatever party, to play games with these TV debates, and I welcome what the right hon. Member for Belfast North said about creating a set of rules. We have said that a Labour Government would put the requirement to stage a fair and impartial leaders debate on a statutory footing. The Minister has done his best to make that proposal sound incredibly Orwellian and statist, but it would simply introduce a system that would work along similar lines to the current party political broadcasts, with the Broadcasters’ Liaison Group having the power to come up with proposals for the debates.

In keeping with what the right hon. Gentleman said earlier, we believe that we shall have an opportunity in the next Parliament to get this right and to learn from what has happened during this Parliament in the lead-up to the election campaign. We suggest a deadline of 2017, midway through the next Parliament, for the proposed changes to be put in place. That would give everyone plenty of time to plan for the debates before the subsequent general election. This would be an important constitutional change, introducing a mechanism for the increased accountability of the Prime Minister and other party leaders. In our system, such reforms would be welcome.

Greg Clark Portrait Greg Clark
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I am fascinated by the hon. Gentleman’s proposal. Will he tell me whether it would appear in the first Queen’s Speech of a Labour Government? Would it be such a priority for the running of the country that it would appear in a Labour Government’s first legislative programme?

Stephen Twigg Portrait Stephen Twigg
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As the Minister well knows, neither he nor I can indicate what would be in either of our party’s Queen’s Speeches at any stage. We have fixed-term five-year Parliaments, so I am not going to comment on the timing. However, we welcome the opportunity to debate that important reform, and I hope that he will engage in a serious debate on it.

The Prime Minister’s politics tutor at university, Vernon Bogdanor, has welcomed our proposal, saying that

“the public are entitled to see how party leaders perform in debate, and also how the Prime Minister and alternative Prime Minister perform.”

A Prime Minister, of whatever party, should not be able to duck debates and thereby potentially cancel them for everyone. If a party representative refused to appear on BBC “Question Time” on a Thursday night, the show would go on. These debates are important for the credibility of this election. How can the Prime Minister, as leader of his party, look the British public in the eye, having been so overt in his support of debates, when he is now running away from them? Why should he have a veto on the opportunity for the public to hear from other party leaders?

Stephen Twigg Portrait Stephen Twigg
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My hon. Friend makes an important point. Our right hon. Friend the Leader of the Opposition has been quoted as saying that he will meet the Prime Minister “any time, any place, anywhere”, and we have accepted the broadcasters’ proposals for three separate debates—

Greg Clark Portrait Greg Clark
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What about 23 March?

Stephen Twigg Portrait Stephen Twigg
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As the Minister confirms from a sedentary position, the Prime Minister will debate only with the other leaders, and only in a week before the election campaign, before the manifestos have been published. This Prime Minister is not prepared to debate head to head with the Leader of the Opposition after the manifestos have been published. That says a great deal about this Prime Minister and about the Conservative party’s approach to this election.

We on this side of the House are keen to make this happen, and we believe that there is still time for the Prime Minister to join us in accepting the proposal from the broadcasters. For the sake of democratic engagement, I really hope that he and his advisers will reconsider their opposition to these debates. Before the last election, the leader of the Conservative party—now the Prime Minister—said:

“I think people have the right to look at the people putting themselves forward as the next Prime Minister”

in TV debates. That could not be clearer. We agree. The public agree. Let’s get on with it.

EU Competitiveness Council

Greg Clark Excerpts
Tuesday 10th March 2015

(9 years, 2 months ago)

Written Statements
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Greg Clark Portrait The Minister for Universities, Science and Cities (Greg Clark)
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My noble Friend the Parliamentary Under-Secretary of State for Business, Innovation and Skills, Minister for Intellectual Property, Baroness Neville-Rolfe, has today made the following statement.

The Competitiveness Council took place in Brussels on 2 and 3 March. I represented the UK during the internal market and industry discussion on day one, with Shan Morgan the Deputy Permanent Representative to the EU representing the UK for the research discussion on day two. I also attended a Council breakfast where Vice-President Ansip led a useful informal discussion on the digital single market.

The Council started by discussing and adopting the draft conclusions on single market policy. The text included calling on the Commission to adopt a sectoral approach to services, with the focus being on professional and business services, construction and retail. In the accompanying debate the Commission highlighted the single market as the most important pillar of its €300 billion investment package, pressed the need for single market rules to be adopted far more ambitiously and highlighted the cost of starting up a business as one the problems dampening investment and growth.

Several member states (MS) intervened to highlight the importance of an ambitious and sectoral approach to services liberalisation. MS also emphasised the importance of other sectors such as energy. I spoke about the importance of better enforcement and called for decisive action in the single market strategy. This could include legislation where necessary, but I reminded the Council that any new legislation should be drafted in accordance with better regulation principles. I highlighted the need for action on the regulation of professionals, the provision of indemnity insurance, and legal form and shareholding requirements in particular.

We then discussed the EU investment package which was also debated in relation to research on the following day. The presidency noted that discussions were under way in the ECOFIN Council. Some MS intervened to say that the EFSI (European fund for strategic investment) should address four key points—flexible management, rapid implementation, “additionally” of projects and the need for significant equity component. In response to this, the Commission said the EIB (European Investment Bank) was going to increase its support for SMEs and stressed that the investment package would not just remove funds from the Horizon 2020 package.

The next item related to the Frontrunners initiative by like-minded countries, including the UK, to share good practice in implementing the single market. I intervened to support the project and highlight the work of the UK in the projects on e-commerce and regulated professions.

We then discussed the implementation of transparency reporting requirements in the accounting directive. A number of MS emphasised the importance of a level playing field in extractives transparency reporting, and the important role the Commission has to play in ensuring the US authorities act quickly in bringing forward robust requirements. I intervened to highlight the importance of the EU continuing to show leadership in this area.

The afternoon session started with a discussion on the digital single market and EU industrial competitiveness. The Commission highlighted the importance of digital technologies within industry and set out five specific areas: spreading high-tech and digital technologies into all industrial sectors, not just the most advanced ones; ensuring internet platforms are “not instruments of control but instruments of opportunity”; developing interoperable standards for digital products; ensuring the regulatory framework was fit for digitalisation; and helping MS to address skills shortages so that there are more “digital executives”. MS were supportive of the areas identified by the Commission and there was broad support for the removal of barriers to e-commerce.

I emphasised the importance of industry leading in the development of smart products and of the removal of barriers to start up tech companies. I also highlighted the UK’s digital industrial strategy, and our focus on technology clusters, catapult centres, and improving the skills base including the teaching of coding in all primary schools.

The Commission gave a summary of the responses to the Single Business Act consultation. Most respondents agreed that the top priorities should be reducing administrative burdens and increasing access to finance. The Commission announced that a quarter of funding from the investment plan would be directed towards SMEs and that more information would be presented at the next Competitiveness Council in May. There were no interventions by MS.

The day ended with the Commission giving an outline of the energy union package which was published in February. The package consists of the energy and climate work programme; an “interconnections” communication on meeting the 10% electricity interconnection target; the Commission’s view of key elements of agreement in Paris; and its proposal for the EU’s contributions. The aims of the package are energy security and efficiency. There were no interventions from MS.

The Latvian presidency opened the research day of the Council with a discussion on the annual growth survey (AGS) and the Juncker package’s financial instrument (EFSI). They highlighted the importance of investment in excellent research for growth as recognised in the latest AGS published by the Commission, and the role of the Juncker package to achieve this. They also emphasised the importance of national initiatives and road maps to deliver the European research area.

The UK intervention, while welcoming the AGS’s emphasis on innovation, focused mainly on the investment package. The UK and others called for the investment selection committee to include expertise in the field of R and I investment and that the emphasis of Competitiveness Council discussion should be on ways we can encourage project uptake of the fund. The UK, on the back of significant concerns raised by university stakeholders, also asked the Commission to reassure academia that the “mainstreaming” of social sciences and humanities would continue to take place.

The second policy debate focused on unlocking Europe’s digital potential and alongside this Science 2.0 (AOB). This discussion mirrored one from the previous day on the digital single market but focused on the research aspects. The main discussion was around the need for research and innovation to have access to data and that the necessary systems should surround them, for example, data storage and management. The Commission stressed how rapidly data is growing and that to make the most of these opportunities, Europe needs the skills and a shared vision of the opportunities and gaps in the landscape. Two points were raised by the UK: copyright reform to address academic text and data mining and the need for data protection legislation to not hinder research, ensure the necessary protections and permit us to reap the benefits of big data. This received broad support. A joint UK-Netherlands non-paper on open access was also circulated and received a warm reception from several member states. The presidency concluded the debate by recalling that there would be Competitiveness Council (research) conclusions on this topic in May.

Despite not being on the agenda, the Commission introduced an AOB item on Partnership for Research and Innovation in the Mediterranean Area (PRIMA) initiative, to confirm the formal mechanism by which the initiative will be funded (through article 185 TFEU as a public-public partnership) and to announce that a proposal will be bought forward (this may take some preparation). Under an AOB item on the BONUS programme (which covers research in the Baltic sea), the Commission noted the positive evaluation of the programme and noted that BONUS members are looking at a possible BONUS2. There were no interventions by the UK on BONUS or PRIMA. The European research area (ERA) was only touched on briefly in the Council and over lunch, with the presidency outlining the process so far on the ERA road map and referenced the need to address ERA governance issues (such as the number and structure of expert groups) preparing the way for conclusions on this subject in May.

[HCWS363]

Competitiveness Council (Pre-Council Statement)

Greg Clark Excerpts
Monday 23rd February 2015

(9 years, 2 months ago)

Written Statements
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Greg Clark Portrait The Minister for Universities, Science and Cities (Greg Clark)
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My noble Friend the Under-Secretary of State for Business, Innovation and Skills, Minister with responsibility for intellectual property (Baroness Neville-Rolfe) will today make the following statement:

The European Competitiveness Council will take place on Monday 2 March and Tuesday 3 March. I will represent the UK on day one (industry and internal market) and representation on day two (research, innovation and space) is to be confirmed.

The internal market and industry substantive agenda items are the EU single market and EU industrial competitiveness. Under the EU single market item the Commission will present on single market aspects of the “Annual Growth Survey 2015”, there will be a policy debate on the investment plan for Europe and the presidency is planning to present single market conclusions for adoption.

Under the EU industrial competitiveness item there will be a presentation from the Commission on the industrial policy aspects of the annual growth survey and a policy debate on industrial policy within future digital single market strategy.

There is one legislative proposal on the agenda presented for public deliberation—the trade mark package. This is an update on the proposal for amendment of the Regulation on the Community Trade Mark and a proposal to recast the directive approximating the laws of member states relating to trade marks.

Our objectives for the internal market and industry day are to:

Agree conclusions on the single market that reflect UK priorities;

Set out the UK’s position regarding industrial policy and the digital single market; and

Highlight our continued priorities for the trade mark dossier.

The research, innovation and space day has two substantial policy discussions. There will be a presentation by the Commission on the research and innovation aspects of the annual growth survey 2015 followed by a policy debate on fostering innovation and unlocking Europe’s potential for growth in the European research area.

The second discussion is on unlocking Europe’s digital potential, based on a communication from the Commission on “Towards a thriving data-driven economy”.

Our objectives for the research, innovation and space day are to:

Intervene to emphasise the importance of co-ordination of policies and investments to promote innovation and growth.

To emphasise the importance of issues such as open data and a dynamic and flexible digital single market to an innovative EU data-driven economy.

[HCWS293]

Regional Growth Fund

Greg Clark Excerpts
Thursday 12th February 2015

(9 years, 3 months ago)

Written Statements
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Greg Clark Portrait The Minister for Universities, Science and Cities (Greg Clark)
- Hansard - -

We are today announcing that regional growth fund support in England has been expanded by nearly £300 million, bringing the total investment in local jobs and enterprise over the six rounds to £2.85 billion.

The additional support has been awarded to 63 bidders in round 6 of the regional growth fund alongside projects and programmes awarded exceptional regional growth fund support.

A list of the organisations supported in round 6 can be found below.

Total regional growth fund investment is now expected to create or safeguard 580,000 jobs and leverage £16 billion of private sector support across England by the middle of the next decade. Over 100,000 of these jobs have already been created or safeguarded and £3.35 billion of private sector investment leveraged.

The regional growth fund was launched in 2010; it provides grants to projects and programmes with significant potential for economic growth, leveraging private sector investment and creating or safeguarding jobs.

Organisations are invited to bid for support in rounds and this is the sixth such round to date.

Combined with the £7 billion allocated so far to the local enterprise partnerships through growth deals, the regional growth fund is delivering tangible benefits across England.

List of Projects and Programmes

East Midlands

The University of Nottingham

Eicher Motors Ltd

East of England

Hybrid Air Vehicles Ltd

Bosch Lawn and Garden Ltd

Nwes & Archant

CTruk Boats Ltd

Nationwide

FSE Social Impact Accelerator (Programme) Ltd

Cavendish Consortium

Sharing in Growth UK Ltd

Economic Solutions Ltd

Creative England

YTKO

North East

Siro (UK) Ltd

Bristol Laboratories Ltd

Procter and Gamble Technical Centres Ltd

Company name withheld

North West

St Helens Chamber Ltd

Economic Solutions Ltd

Cumbria Chamber of Commerce

East Lancashire Chamber of Commerce and Industry

Victrex plc

MSIF

M Sport Ltd

HPL Prototypes Ltd

Hanson Springs Ltd

S Cartwright & Sons (Coachbuilders) Ltd

Barnfield Investment Properties Ltd

The University of Manchester

BioCity Nottingham Ltd

Reform Energy plc

South East

Vector Aerospace International Ltd

Aeromet International plc

North Sails

South West

City College Plymouth

University of the West of England

Plymouth University/SWMAS Ltd

Avanti Communications Group plc

Plessey Semiconductors Ltd

University of Gloucestershire

Ashwoods Automotive Ltd

Anthony Best Dynamics Ltd

Cambridge Silicon Radio Ltd

Corin Ltd South West

Spirent Communications plc

Tulip Ltd

Goonhilly Earth Station Hymec Aerospace (UK) Ltd

West Midlands

NTM GB Ltd

Easat Antennas Ltd

Brose UK Ltd

Greater Birmingham Chambers of Commerce

The Lighting Industry Association Ltd

Arlington Wheels Ltd

Stobart Biomass Products Ltd

Conder Structures

University of Wolverhampton

Jaguar Land Rover Ltd

Rimstock plc

Company name withheld

Yorkshire and the Humber

BE Group

Cs Wind UK Ltd

Finance Yorkshire Ltd

Kemira Chemicals UK Ltd

[HCWS281]

British Hallmarking Council

Greg Clark Excerpts
Tuesday 10th February 2015

(9 years, 3 months ago)

Written Statements
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Greg Clark Portrait The Minister for Universities, Science and Cities (Greg Clark)
- Hansard - -

Commencement of the triennial review of the British Hallmarking Council (BHC) was announced in Parliament through a written ministerial statement on 9 October 2013 and I am now pleased to announce the completion of the review.

The British Hallmarking Council is a non-departmental public body set up by the Hallmarking Act 1973. With an independent chairman and secretary, its 19 members represent a broad range of interests covering the trade, consumer interest, and the four UK Assay Offices: London, Birmingham, Sheffield, and Edinburgh. The Assay Offices were set up either by statute or charter and are non-profit making organisations that recover their operating costs through hallmarking fees and assay-related services.

The review concludes that the functions performed by the British Hallmarking Council are still required and that it should be retained as an NDPB. The review also examined the governance arrangements for the British Hallmarking Council. The review concluded that the council operates in line with the principles of guidance on good corporate governance set out by the Cabinet Office, but identified opportunities to improve its functions, which were reflected in the stage 2 recommendations.

The full report of the review of the British Hallmarking Council can be found online at: http://www.gov.uk and copies have been placed in the Libraries of both Houses.

[HCWS268]

Growth Deals

Greg Clark Excerpts
Thursday 29th January 2015

(9 years, 3 months ago)

Commons Chamber
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Greg Clark Portrait The Minister for Universities, Science and Cities (Greg Clark)
- Hansard - -

With permission, Mr Speaker, I would like to make a statement about growth deals. During the past four and a half years, the Government’s long-term economic plan has put the British economy on the road to prosperity. Since 2010, the deficit has been cut by half as a proportion of national income; 1.75 million more people are in work; there are 750,000 more businesses; and growth is among the strongest in the G7.

For Britain to fulfil its maximum potential, every part of the country must be an engine of growth, powering the nation ahead. Every city, town and county in Britain is unique, and the people who know best what is needed to build on the particular strengths of each place are the men and women who live, work and do business there. It is in the local interest, but also in the national interest, that they should be given the power to exercise leadership.

This Government have negotiated a series of city deals with England’s principal cities outside London, and also with the city of Glasgow. Impelled by Lord Heseltine’s report, “No Stone Unturned”, £12 billion was taken from central Government Departments and made available for devolution to business and civic leaders in every area across England. In July, I announced growth deals with each of the 39 local enterprise partnerships. They were a great success—welcomed in all parts of the country by businesses, local leaders from all parties and indeed in all parts of the House. The strength of the projects put forward, levering in at least twice the value of Government funds devolved, allowed me to invite LEPs to bring forward further proposals, building on this momentum.

In the autumn statement, the Chancellor made another £1 billion available for this purpose, and I am announcing today that we have agreed expanded growth deals with all 39 LEPs. The expanded deals will help to train the people that industry needs in order to fulfil the orders on its books in the future, such as through the Institute for Advanced Manufacturing at Nottingham university, which will train more than 3,000 engineers. The deals will improve road connections that allow people to get to work on sites that can provide more jobs in future, such as at Fareham and Gosport. They will provide the infrastructure that will help growing places to prosper, such as the new high-level bridge across the Manchester ship canal at Warrington. They will improve rail services: for instance, there will be a major overhaul of Gatwick airport station, track improvements on the midland main line, and better facilities for the Night Riviera sleeper service to Cornwall, which provides one of the country’s most magical train journeys.

The deals will regenerate parts of towns and cities that can be attractive destinations for employers, visitors and residents, such as Blackfriars and the quayside in Gloucester. They will enhance the collaboration between growing businesses and universities which has produced, for example, the incubation and innovation centre at the university of Huddersfield. They will expand successful programmes of grants to small businesses, including those in Sheffield and Liverpool. They will allow local economies—and the national economy—to benefit from cutting-edge technologies, such as those that will be provided by the national centre for healthcare photonics that will be established in Sedgefield. Once again, the £1 billion of central Government funding will be added to, by at least £2 billion of private and local funding. That will give a £3 billion boost to local economies all over Britain.

The cities, towns and counties of this country are on the rise. Between 2004 and 2010, two thirds of net job creation took place in London and the south-east; since 2010, those areas have continued to create jobs, but they are being created everywhere else as well. The balance has been reversed, and 60% of the rise in employment is now taking place outside London and the south-east. The expanded growth deals that I have announced today will fuel the resurgence of our local economies, and I commend them to the House.

--- Later in debate ---
Greg Clark Portrait Greg Clark
- Hansard - -

I am grateful to the hon. Lady; she has given us some entertainment this morning. I am also grateful for her warm words at the beginning of her comments; they are appreciated. I have never set out to be the most popular person with Whitehall officialdom, but I have enjoyed the full-hearted support of my official colleagues. They have been working extremely hard in recent months, and I want to pay tribute to them. It is a funny kind of reward if getting promoted to the Cabinet is seen as a punishment for success. I am very pleased to be taking these measures forward.

Let me respond to some of the hon. Lady’s points. She is mistaken to hark back to regional development agencies. When I go around the country talking to even Labour leaders of cities there is no nostalgia for the RDAs. Under the last Government £20 billion was spent on the RDAs and the regional disparities worsened during that time. What we have seen since 2010 is a different approach—a locally led approach recognising that places such as Liverpool and Manchester are proud cities with an identity of their own and should not be subsumed under an artificial Whitehall creation called “the north-west” run from Whitehall. They need to have their voice, and they are proudly expressing it.

As I have said, since 2010 most new jobs have been created outside London and the south-east. Under the last Government, during the boom the number of private sector jobs in the city of Birmingham actually contracted. We do not want to go back to RDAs.

Enthusiasm is widespread across the country, and that is making a difference. I am very happy to confirm to the hon. Lady that counties and districts are very much included. Every part of England is covered by a local enterprise partnership and will benefit from this, and we want to go further forward in the future.

The difficulty we have with this agenda is that the enthusiasm of all parties throughout the country is not reflected on the Labour Front Bench. I am afraid that we heard this in the hon. Lady’s tone when she concluded her remarks. The Labour mayor of Leicester has said:

“Today’s announcement is excellent news for businesses and communities in our city and county.”

The leader of Sandwell council has said:

“The additional investment…will boost the quality of life in the Black Country”.

The leader of Birmingham city council says:

“This is fantastic news for Birmingham and the wider region”,

and the leader of Barnsley council has described it as a milestone. Even Labour council leaders across the country are in despair at the half-hearted approach of those on the Labour Front Bench.

We will continue this programme. We have more to allocate in the years ahead. Lest any hon. Member on either side of the House should be gulled into thinking that there is any prospect of greater devolution under Labour, they should be aware of the fact that the shadow Chancellor has confirmed that Labour has no plans to make extra funding available to be devolved to local government. Indeed, the devolution report that Lord Adonis authored made it clear that any devolved funds would be offset by a reduction in grants to local government—robbing Peter to pay Paul. We are taking money away from Whitehall and London and putting it into the hands of local leaders. That is working; it is creating jobs and confidence right round the country.

Geoffrey Clifton-Brown Portrait Geoffrey Clifton-Brown (The Cotswolds) (Con)
- Hansard - - - Excerpts

I warmly welcome the funding that the growth fund will give to the new innovation centre at the Royal Agricultural university in Cirencester. However, the biggest problem in Gloucestershire is the “missing link”: the A419 between the M4 and the M5. It is part of the road scheme but it is going to be very expensive and the budget will need to be supplemented. Could that supplement be obtained from the growth fund?

Greg Clark Portrait Greg Clark
- Hansard - -

I welcome my hon. Friend’s remarks. He demonstrates the fact that these growth deals apply not only to our industrial cities but to counties, such as his own, with a substantial rural population. We know that the road schemes and improvements to connections in those counties are particularly important. The devolution of funds, now and in the future, to the Gloucestershire local enterprise partnership will allow it to put forward—as it has done—the schemes that will make the biggest difference in its area, and I encourage my hon. Friend to work with his LEP to achieve precisely that.

Kevan Jones Portrait Mr Kevan Jones (North Durham) (Lab)
- Hansard - - - Excerpts

Devolution of expenditure needs to be transparent and beyond reproach. In August, I raised with the Minister the role of the chair of the North East LEP, Paul Woolston, who had just been appointed to the chairmanship of Middleton Enterprises, a company owned by Jeremy Middleton, a Conservative party member and donor who is now also on the investment board of the LEP. The Minister promised me, outside the House, to look into that arrangement. Is he satisfied with it?

Greg Clark Portrait Greg Clark
- Hansard - -

I did indeed look into it. Paul Woolston is the chairman of the LEP, which has members from all the local authorities in the north-east. I think he is doing a very good job. I also raised this matter with my officials and I was assured that there were no questions at all to be addressed, but I will happily write to the hon. Gentleman about this.

Robin Walker Portrait Mr Robin Walker (Worcester) (Con)
- Hansard - - - Excerpts

The Worcestershire LEP has warmly welcomed the extra £7 million of investment that has been announced today, which will enable more than 600 apprenticeships to be created in our area. I am very grateful for that. All the south Worcestershire MPs recently joined Worcestershire county council in lobbying the Department for Transport for further investment in the southern link, and particularly in the dualling of Carrington bridge. We have had some positive commitments to work with the county on the southern link, but will my right hon. Friend meet us to discuss taking the matter further, and ensure that in future rounds of allocations from the local growth fund, which I am sure he will be championing at the Cabinet table, he will be as strong an advocate as he has been today?

Greg Clark Portrait Greg Clark
- Hansard - -

I will indeed. There is no stronger advocate for Worcester than my hon. Friend. He will know that the agreement we have with the LEP mentions the importance of improving the capacity of that road, and there is a commitment from the Government to work with local leaders to advance that.

Clive Betts Portrait Mr Clive Betts (Sheffield South East) (Lab)
- Hansard - - - Excerpts

May we have a reality check? The extra money for the Sheffield city region—£30 million over a number of years—needs to be put in the context of the £60 million of cuts to Sheffield city council in the next year alone. The Minister is recognised as one of the most committed devolutionists in the Government. We can accept and welcome extra money and extra powers going to our city regions and combined authorities—more money where the decision on how it will be spent is made at the local level not the national level. Will he explain, however, why we cannot have a package of devolution measures that transfers responsibility for raising taxation at a local level in England—this is done in Scotland—and therefore give more powers to local councils in that way? He probably believes that that is the right approach, so why can he not convince his Government colleagues of it?

Greg Clark Portrait Greg Clark
- Hansard - -

No, I do not. It is worth pointing out that the total size of the growth deal with Sheffield is £328 million, which is a huge investment; it is a transfer of funds from central Government to the leaders of Sheffield. I do not think that the answer to the problem of creating further opportunities for places outside London is to increase taxes; I think the answer is to take money away from central Government and put it in the hands of people who can make decisions better informed by their local knowledge.

Andrew Bingham Portrait Andrew Bingham (High Peak) (Con)
- Hansard - - - Excerpts

My constituency is covered by a thick blanket of snow this morning, but this announcement has caused great warmth in Buxton, because the D2N2 LEP bid in respect of the Buxton Crescent hotel and spa is the final piece of a very long jigsaw that has taken many years. It will create jobs, boost the local economy and increase the tourism offer of Buxton and the High Peak for people across the world. I thank the Minister on behalf of my constituents, and may I tell the hon. Member for City of Durham (Roberta Blackman-Woods) that Buxton is not a city?

Greg Clark Portrait Greg Clark
- Hansard - -

My hon. Friend is right. I am delighted that the thaw has started in Buxton, although I am sure it looks even nicer under a covering of snow. From a rival spa town of Tunbridge Wells, I commend the attractiveness of the great town of Buxton and I hope to be able to visit it to see the impact of this investment.

Barry Sheerman Portrait Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
- Hansard - - - Excerpts

The Minister will know that Huddersfield is not a city but that the Kirklees local authority is one of the largest in the land. Nobody from my constituency would not welcome new money to the university of Huddersfield or our area, but may I put this in context? The research published last week by the Centre for Cities gives a very different picture of the way in which over the past five years power and resources have flowed to the richest parts of our country, particularly to London and the south-east. Is he aware of how much of a cut people in Kirklees have suffered in recent years and face in the future? Services are being cut at every level.

Greg Clark Portrait Greg Clark
- Hansard - -

The university of Huddersfield is a strong institution. I know that the hon. Gentleman takes a particular interest in its connections with business, so I hope he will welcome locally the investment that has gone in there. The Centre for Cities is a good and valued think-tank. It carried out a 10-year review of the performance of cities over that period. It did not split what happened before 2010 from what happened subsequently, but when one does that, the story is striking: most of the net new jobs before 2010 were in London and the south-east, whereas most now are outside London and the south-east. Strikingly, since 2010 the list of areas that have had the biggest fall in unemployment, as measured by the claimant count, is topped by Liverpool, followed by the black country, Birmingham, Teesside, Manchester, Coventry and Warwickshire, the Humber, and Stoke and Staffordshire. That is a picture of the revival of our local economy, which is due to the efforts of local leaders but backed by this Government.

Lord Beith Portrait Sir Alan Beith (Berwick-upon-Tweed) (LD)
- Hansard - - - Excerpts

I welcome this coalition Government’s investment in the north-east of England—in skills, science and manufacturing—including in Northumberland college. May I, however, underline the fact that the college needs to extend its services into the north of Northumberland, where many students are 40 or 50 miles away from the college?

Greg Clark Portrait Greg Clark
- Hansard - -

I welcome my right hon. Friend’s endorsement. The investment in the north-east has been striking, and it is making a big impact. We have been talking about the local growth fund, but there is also the regional growth fund, of which the north-east has been a big beneficiary to the tune of more than £300 million. That is the right way to go—to take money from Departments in Whitehall and to put it into the hands of local leaders and business leaders in the community, because they know where to get the best bang for their buck.

Kerry McCarthy Portrait Kerry McCarthy (Bristol East) (Lab)
- Hansard - - - Excerpts

I understand that the Deputy Prime Minister is in Bristol West this morning to announce the new money that Bristol will be getting. I am sure the visit has nothing to do with the fact that the election prospects of the local Liberal Democrat MP are looking rather precarious. I welcome the new money for Bristol, but urge the Minister to consider one proposal that has not yet received funding, which is a centre of excellence for the food and drinks industry. It is an exciting proposal and Bristol would be the perfect city to host it.

Greg Clark Portrait Greg Clark
- Hansard - -

I will certainly look at that proposal, but the great advantage of these growth deals is that it is not me, but local leaders who make the decision to put such projects forward. I hope the hon. Lady will take up that matter with the West of England local enterprise partnership. The Deputy Prime Minister may be in Bristol today, but representatives from Bristol came to 10 Downing street on Tuesday, and I was pleased to have the chair of the LEP and the mayor of Bristol, George Ferguson, pitching to international investors some of the fantastic projects that are available in Bristol. The projects went down a storm, and the meeting was a huge hit, so, quite apart from the investment that comes from these local growth deals, the interest in international investment in Bristol is now rising very strongly.

Paul Maynard Portrait Paul Maynard (Blackpool North and Cleveleys) (Con)
- Hansard - - - Excerpts

I welcome the Government’s support for Lancashire in this latest package and also the application from the LEP to make Blackpool airport an enterprise zone, but will the Minister join me in accepting that the LEP’s track record on enterprise zones has been deeply disappointing to say the least? There are concerns across the House about the performance of the Lancashire LEP. Will he meet Lancashire MPs as soon as possible to try to put the LEP back on track again?

Greg Clark Portrait Greg Clark
- Hansard - -

I will indeed. As my hon. Friend knows, I have had a meeting with Lancashire MPs across the House. It is important that that enterprise zone achieves its potential, which means that it must be properly implemented. I am happy to convene the meeting that he suggests.

Steve McCabe Portrait Steve McCabe (Birmingham, Selly Oak) (Lab)
- Hansard - - - Excerpts

The Minister will be aware that the National Audit Office says that the original figure claimed for jobs likely to result from these initiatives was 54,000, which was later revised down by the Government to between 6,000 and 18,000. What steps is the Minister putting in place to ensure that there are comparable outcome measures so that these initiatives can be properly analysed and assessed and we have a true picture of what they are achieving?

Greg Clark Portrait Greg Clark
- Hansard - -

All the agreements are in the public domain. They are published and on the websites of all the local enterprise partnerships. There is a framework that tracks the implementation of each component of the deal. We have signing ceremonies that commit the local leaders as well as central Government to do what is laid out. But the difference between the growth deals and previous programmes is that the growth deals are in the hands of the local leaders. It is the local businesses that make estimates of the jobs that they are going to create, so it is an estimate not by the Government but by the local business leaders.

Philip Davies Portrait Philip Davies (Shipley) (Con)
- Hansard - - - Excerpts

The Minister has said that the West Yorkshire combined authority will use the new single appraisal framework to inform a formal review of transport funding priorities by 2015 to include the Shipley eastern bypass, which is something that I very much welcome. Does that mean that the Government have been persuaded by the persistent case I have made of the need for that bypass? Will he confirm that the funding is now available to progress the scheme, and whether the onus is now on Bradford council and the West Yorkshire combined authority to prioritise schemes that benefit the whole of west Yorkshire, and not just its Labour heartlands?

Greg Clark Portrait Greg Clark
- Hansard - -

I agree with my hon. Friend that he is a persistent advocate for Shipley, which is quite right as he is the local MP. The transport funds have been devolved to the West Yorkshire combined authority. In fact, £1 billion is available. Of course it is right that, in prioritising the transport schemes, the authority should cover the whole area. That is clearly understood and is set out in the agreement. I know that my hon. Friend will make his cause locally with the same vigour and passion that he does here in Westminster.

Jim Cunningham Portrait Mr Jim Cunningham (Coventry South) (Lab)
- Hansard - - - Excerpts

The Government have foisted massive cuts in local services on Coventry. Will the Minister tell me what has happened to the gateway project in Coventry? There have been delays, and there is now talk about an announcement next week. Will he also outline the reasons for that delay? He announced in his statement that there would be grants for LEPs. What grants are available for small businesses in Coventry?

Greg Clark Portrait Greg Clark
- Hansard - -

On the Coventry and Warwickshire local enterprise partnership, its expanded growth deal is now worth nearly £90 million and it includes a programme of grants and advice and support for growing businesses. As for the access improvements to Coventry city centre, they have been funded. Sites that are being brought into use require planning permission, but that is a matter for the local authority. If the hon. Gentleman wishes to meet me, I will take up the matter with the LEP and the local authority.

Damian Collins Portrait Damian Collins (Folkestone and Hythe) (Con)
- Hansard - - - Excerpts

I welcome the announcement of funding for the Folkestone seafront regeneration scheme. Does the Minister agree that the regeneration of Folkestone, which is led by Sir Roger de Haan, is a model for the regeneration of coastal towns, and that this extra funding through the local growth fund will help to kick-start the next important stage of the development?

Greg Clark Portrait Greg Clark
- Hansard - -

I do indeed agree. I pay tribute to Sir Roger who has worked very closely with my hon. Friend to develop and promote Folkestone as the attractive destination that it is. The area is going from strength to strength, and this further investment will enhance its attractiveness.

Jason McCartney Portrait Jason McCartney (Colne Valley) (Con)
- Hansard - - - Excerpts

I thank the Minister for the extra £2.9 million allocated to Huddersfield university through the local enterprise partnership. It will help fund a new incubator centre at the Globe Mills development project at Slaithwaite in my constituency. Does the Minister agree that that is a real sign that the northern powerhouse is making a difference in my beautiful part of Yorkshire?

Greg Clark Portrait Greg Clark
- Hansard - -

It certainly is, and Huddersfield is an excellent university. It is always good to reinforce success. Another aspect of this is that it shows the close working relationship between universities, businesses and local authorities. Universities are now, unambiguously, among the leaders of their local economies. It is very gratifying to see in so many of these deals that universities are playing a very strong and impressive role.

Philip Hollobone Portrait Mr Philip Hollobone (Kettering) (Con)
- Hansard - - - Excerpts

May I commend the Minister for today’s announcement of an expanded growth deal for Northamptonshire? I press him to try to find an urgent funding solution for the Weekley-Warkton bypass, which is mentioned in his statement. The Department for Transport has already provided £110 million for the widening of the A14 around Kettering. It has also promised £15 million to fund a new junction—junction 10A. The Weekley-Warkton bypass is the missing bit of the circle around Kettering that is required for the necessary traffic relief for all the new houses that are being built locally.

Greg Clark Portrait Greg Clark
- Hansard - -

My hon. Friend makes an important point. There has been substantial investment in the road capacity in and around Northamptonshire. This particular project has the support of the Government. It is mentioned in the deal with the local enterprise partnership as something that is a priority to be taken forward through further discussions.

Ben Gummer Portrait Ben Gummer (Ipswich) (Con)
- Hansard - - - Excerpts

I, too, wish to thank the Minister for his great support for the Ipswich innovation centre, run by University Campus Suffolk, and also for the feasibility funding for the Wet Dock crossing, both of which were welcomed by the Labour leader of Ipswich borough council as “excellent news”—clearly, he had not co-ordinated his message with those on the Labour Front-Bench. I hope that he will not listen to the voices of the Labour party on this, because the new Anglia LEP has delivered for towns such as Ipswich the kind of investment that was never present during the previous Government.

Greg Clark Portrait Greg Clark
- Hansard - -

My hon. Friend is absolutely right. We have been able to work very cordially with leaders of all parties across the country because we recognise that, where there is local knowledge that can bring forward compelling propositions, it is in the national as well as local interest to do so. Ipswich is a good example in that regard. In the city deal with Ipswich, I was pleased to see one of the first youth oriented jobcentres in the country, which is a tremendous success. The investment that comes from this deal, which was proposed locally, will have just such an impact, and my hon. Friend has been a great champion of such deals.

Andrew George Portrait Andrew George (St Ives) (LD)
- Hansard - - - Excerpts

I particularly welcome the £11.3 million announced today for Cornwall. The Minister mentioned the Night Riviera service—something on which I have campaigned and petitioned the House for many years. Investment in that, as well as the broadband investment are welcome. I do not want to sound a discordant note, but may I urge the Minister to ask his Cabinet colleagues to look again at whether Cornwall should achieve intermediate body status so that the LEP does not have to go to Whitehall to ask permission every time it wants to move a paper clip around the county? Surely we could be given the same status as many cities so that we can advance our European convergence programme.

Greg Clark Portrait Greg Clark
- Hansard - -

It is fantastic news that Cornwall has had such substantial success through the growth deal programme. Further improvement of the facilities on the sleeper service will be good for the visitor economy as well as the people who live and work in Cornwall. The hon. Gentleman knows that I am determined to continue the substantial progress that we have made towards getting power out of its centralised bunker in Whitehall and into the hands of people right across the country, and I will not let up in pursuing that.

Higher Education

Greg Clark Excerpts
Thursday 29th January 2015

(9 years, 3 months ago)

Written Statements
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Greg Clark Portrait The Minister for Universities, Science and Cities (Greg Clark)
- Hansard - -

The Government are taking a number of steps to secure improved standards among alternative providers of higher education.

Britain’s system of higher education is renowned worldwide for its high quality, a reputation that continues to strengthen as demonstrated by the results of the recent research excellence framework. It is essential that this reputation for quality continues to strengthen in all parts of the sector.

Among alternative providers of higher education some institutions contribute strongly to this reputation through exceptionally high levels of student satisfaction and the employability of graduates.

As the National Audit Office (NAO) has shown, some, however, have raised questions over the consistency of the delivery of quality provision to appropriately qualified candidates by some alternative providers.

The Government have already taken a number of steps to tighten standards among such providers, such as requiring, in 2014, all alternative providers to re-apply to be designated using a more robust designation process.

We will now take the following further steps to provider greater assurance of quality specifically:

Alternative providers will need to be re-designated every year, rather than remaining designated indefinitely. This will not apply to the seven providers with degree-awarding powers that have courses designated for student support.

As a condition of designation providers will undergo a strengthened quality assurance process, higher education review, which will apply to all higher education providers and be the common review framework of the Quality Assurance Agency for Higher Education in England.

From now on alternative providers will be required to have registered any student with the relevant qualification awarding body before a claim for tuition fee support for that student can be made.

A “fit and proper person” test will apply to all directors of alternative providers as a specific requirement of the annual designation process, in line with practice in the publicly funded sector. Changes of directors, or their circumstances, will need to be notified during the year, as well as at the annual designation point.

Alternative providers will be required to submit information on students’ previous qualifications, demographic characteristics and achievements. This information will be published through the Higher Education Statistics Agency.

Subject to consultation we intend to introduce a minimum English language requirement to ensure that students studying for qualifications at alternative providers have sufficient language skills to succeed at their course.

We will require alternative providers, subject to consultation, to provide students with good quality information on: student satisfaction ratings, graduate salaries and employment, tuition fees, financial support and the cost of accommodation—through the key information set, which already applies to HEFCE-funded providers.

We will remove the student number cap from the seven providers with degree-awarding powers that have courses designated for student support, and allow providers offering validated degrees the flexibility to increase the number of students they recruit by up to 20% in 2015-16. We will retain the cap on all other alternative providers. From 2016-17 we will allow providers with a strong performance to expand, while reducing student numbers for other providers.

A rapid response investigatory team has been established, headed by the Government Internal Audit Agency and including the Student Loans Company, HEFCE, the Quality Assurance Agency and BIS. The team will be able quickly to investigate allegations of abuse of the system.

Pearson, whose qualifications are delivered by some of the alternative providers about whom the NAO have expressed concerns, have strengthened their internal quality assurance process, introducing annual approval and student re-registration and increasing the level of proficiency in English required of student entering higher national courses.

Taken together these measures will improve the assurance that only quality alternative providers can be designated, that they recruit only students who are suited to their courses, and that student numbers in alternative providers are at appropriate levels in each provider.

The Government are determined to ensure that the strong reputation for quality in UK higher education continues and strengthens.

[HCWS239]

Businesses (North of England)

Greg Clark Excerpts
Wednesday 14th January 2015

(9 years, 4 months ago)

Westminster Hall
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Greg Clark Portrait The Minister for Universities, Science and Cities (Greg Clark)
- Hansard - -

It is a great pleasure to serve under your chairmanship, Mrs Main, in what has been an excellent debate. Some of the remarks made by the hon. Member for Hartlepool (Mr Wright) were excellent, but some were not. Let me pick up the point about RDAs. My hon. Friend the Member for Warrington South (David Mowat) was right. The RDAs were not abolished because they were not invented by us; they were abolished because they did not work. During their existence, the north’s share—I am talking about the north-east, the north-west and the administrative region of Yorkshire and the Humber—shrank as a percentage of the national economy. The hon. Member for Hartlepool will know, having grown up on Teesside, as I did, that there was an accurate perception during all the years of the 1970s and into the ’80s that the strength of the Tees valley was often under the shadow of Newcastle, to the north. One of the great successes in the north-east has been the revival of the identity of the Tees valley through its very successful LEP, which is making great progress.

I join colleagues in congratulating my hon. Friend the Member for Macclesfield (David Rutley) on giving us the opportunity to have the debate, on his excellent speech and on his very kind words to me at the beginning.

The Government are committed to the creation of a northern powerhouse, and we have had an expression of the northern powerhouse in the number of Members at this debate: 17 Conservative Members with constituencies or affiliations with the north. I speak as a proud northerner, born and bred in Middlesbrough. I sometimes carry around with me a medallion that was struck in 1881 to commemorate the unveiling of a statue in Middlesbrough, erected by public subscription, to the first mayor of Middlesbrough and first Member of Parliament for Middlesbrough. He was an industrialist, an ironmaster; Bolckow was his name.

The reason why I often refer, as the hon. Member for Hartlepool did, to those times is that, as he will agree, there was no distinction then between industrial leadership and local leadership. There was an expectation that the people who would drive forward the local economy through their businesses would give of themselves, their time and their investments in helping to make those places successful. I hope that we will get back to the time when mayors of Middlesbrough and other great towns and cities around the country had statues erected to them by public subscription to thank them for their achievements. Certainly, that is the direction in which we are going; we need to give more power to the north.

What are the elements of what we need to do? One element is raising the long-term growth rate of the constituencies and communities in the north. As the hon. Gentleman and many other hon. Members said, the north drove the British economy at various times in our history. There is no reason why its growth rate should be below the national average. Our ambition must be to have it pulling the national average up, rather than being below it.

We need to continue the progress on raising the employment rate. We need to continue to address the need for investment in long-term transport infrastructure. One thing that has excited colleagues and constituents and representatives of all parties across the north is the vision for transport improvements, whether through the HS2 or HS3 connections that are being made.

The north-west is already, as my hon. Friend the Member for Macclesfield said, a global centre for outstanding scientific innovation. My hon. Friend the Member for Congleton (Fiona Bruce) made that point as well. It is also, as many hon. Members mentioned, a good place to live in, to work in and to visit. We need to celebrate and build on the quality of life in the north.

We need to ensure that the voices of people in the north acquire greater power and influence. It seems to me that the influence and the ability that Teesside has, and Middlesbrough in particular, to shape its own destiny was rather greater when decisions were made on the banks of the River Tees than when they came to be made on the banks of the Thames. I think that we need to revive that tradition.

Let me deal with some of the points that hon. Members made. Both Cheshire Members referred to the Square Kilometre Array. We are very proud of this asset. The heritage of Jodrell Bank in being at the leading edge of science is very important to us. I am due to meet the review panel for the SKA next month, and I will signal our wholehearted commitment to the project and to promoting Jodrell Bank as the rightful location for the SKA’s headquarters. I will take up with my ministerial colleagues the points made by my hon. Friend the Member for Congleton.

In the few minutes that I have in which to speak, I want to pay tribute to the leadership that my hon. Friend the Member for Macclesfield has given on the Alderley Park taskforce, which has been a phenomenal success. He will, I know, share the credit with the many local leaders, both in industry and in the local authority, who have worked together in just the way that he has described to create a prospering park with a great future. I am informed that, to date, the BioHub has attracted more than 70 biopharmaceutical companies, employing 281 staff. It is home to businesses that have been supported by some of the initiatives that many hon. Members have mentioned today. I place on the record my thanks to my hon. Friend and to all the other members of the Alderley Park taskforce for their efforts in building on this opportunity.

The common denominator of the remarks that have been made by hon. Members from right across the area —the 17 Conservative colleagues and our two Labour colleagues, who made important contributions, is that—

Iain Wright Portrait Mr Iain Wright
- Hansard - - - Excerpts

What about the Lib Dems?

Greg Clark Portrait Greg Clark
- Hansard - -

Well, at least two parties were represented here. We need to recognise that the prosperity of the country requires every part of the country to be firing on all cylinders. That is the common denominator of all the points that were made.

Local rivalries were on display in some of the remarks. Some rivalries are more friendly than others. I dare say that Middlesbrough and Hartlepool have also had their moments over the years.

Iain Wright Portrait Mr Wright
- Hansard - - - Excerpts

And still do.

Greg Clark Portrait Greg Clark
- Hansard - -

Indeed. That just underlines the point that no two places are alike. They may be close geographically, but they have different histories, different traditions, often different industries and different politics. If we try to subsume them all into an approach that gets them to fit in with a central Government view of how the world should be, we will suppress the very individuality and difference that gives them their energy and creative spark, so one thing that we have tried to do—with success, I think—is to work through, first, the city deals and then the growth deals, and we have replaced the regional development agencies, in which great cities such as Manchester and Liverpool lost their identity, as did counties such as Cumbria and Lancashire. By taking the RDAs away and giving voice to representatives of real places rather than administratively concocted places, we have begun to empower those places and, in addition, the various deals that we have done have all been proposed and made in the areas that they represent, and they gather strength from that.

This is the beginning of a process that will continue. My hon. Friend the Member for Pendle (Andrew Stephenson) has displayed his tenacity in the number of Ministers he has lured to his constituency. I need to declare in the Register of Members’ Financial Interests that a pint of Pride of Pendle might be waiting for me when I make—

Greg Clark Portrait Greg Clark
- Hansard - -

Indeed. I look forward to visiting my hon. Friend. His tenacity and commitment to his constituency are shared by Members right across the Chamber. I have set out what we are trying to do. I think that it does enjoy some cross-party consensus, and that is all to the good. The relationships between authorities have crossed party lines, and we have enjoyed in this debate a fair degree of political consensus. I hope that we will continue to do so.

I end by congratulating my hon. Friend the Member for Macclesfield on bringing us together to affirm, in ringing tones, our commitment to continuing the revival of the north that is proceeding apace under this Government.

Higher Education Funding

Greg Clark Excerpts
Thursday 8th January 2015

(9 years, 4 months ago)

Commons Chamber
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Adrian Bailey Portrait Mr Bailey
- Hansard - - - Excerpts

I welcome the interventions of two former Ministers, which have shone an economic light on some of the most obscure elements of our education accounting.

To return to my point on the student loan book, the fact that the sale has now been abandoned underlines what my right hon. Friend said about the non-viability of this course of action in funding future financial higher education commitments.

In short, we have an education funding model that is producing an ever-increasing call on the nation’s finances, and actually further commitments are being added. The House of Commons Library paper projects that by the mid-2030s the addition to the national debt incurred as a result of this policy will be equivalent to 8%—about £350 billion to £360 billion at current prices. That is a huge sum of money that will have enormous implications for future Governments—and universities and students—in terms of financial planning.

Greg Clark Portrait The Minister for Universities, Science and Cities (Greg Clark)
- Hansard - -

I am sorry to pre-empt my response to the debate, but at the beginning of his contribution the hon. Gentleman mentioned the important benefit—he referred to it as unambiguous—to the Exchequer. Has he made an estimate of that benefit to set against the costs he is referring to?

Adrian Bailey Portrait Mr Bailey
- Hansard - - - Excerpts

I believe that these estimates are projected in the figures from the Institute for Fiscal Studies, and certainly there is the netting off if you like, of these figures. There will be benefits. I said in my opening comments that there would be benefits. However, to have this level of future debt without any policy recognition that it will have to be funded in the future accounts is complacent and, in my view, a dereliction of duty. I shall return to that in one moment.

It was because of the figures that the Committee recommended an urgent review of the sustainability of the system, and obviously the sort of figures the Minister mentioned would be incorporated in such a review. If the model does stack up, I do not see why the Government should have any problem undertaking that review to demonstrate it. In their reply to the Committee’s recommendation, the Government quoted, of course, Andreas Schleicher from the OECD—I believe this featured in exchanges earlier today:

“The Government has no current plans to initiate a formal review of the sustainability of the student loans system in England. Indeed the OECD’s Director for Education and Skills, Andreas Schleicher, considers that we are the first European country to have established a sustainable higher education system.”

However, the Government response did not mention, as the Minister’s earlier response did not, that Andreas Schleicher’s comments were about the pre-2012 funding model, not the current one.

Greg Clark Portrait Greg Clark
- Hansard - -

I was aware of this matter, and I was surprised to hear that with uncharacteristic discourtesy—it is not his normal demeanour—the shadow Business Secretary accused me of having misled the House in referring to this endorsement from the OECD. It is important to clarify to the House that I met the author of the report, Mr Schleicher, on the day he published it. I know that overseas visitors often do not get the chance to meet members of the Opposition Front-Bench team, but I had the great privilege of meeting him, and there was never the slightest doubt about what he meant. In fact, he wrote to me this week, on 6 January, having read the report from the shadow Business Secretary. He wrote: “I had made it very clear that the rise to £9,000 fees had not changed the overall assessment by the OECD.” In fact, it is in the opposite direction: “The UK higher education system is excellent for individuals and for the Government. England has got it right on paying for higher education. Among all available approaches, the UK offers still the most scalable and sustainable approach to university finance.” I hope that when he responds, the Minister, on behalf of the shadow Business Secretary, will apologise to me for his accusation.

Adrian Bailey Portrait Mr Bailey
- Hansard - - - Excerpts

Far be it from me to intervene in the exchanges between the Front-Bench teams on this point, but I stand by my earlier point: when this response was made, it was done on the basis of evidence submitted on the pre-2012 model.

--- Later in debate ---
Brian Binley Portrait Mr Brian Binley (Northampton South) (Con)
- Hansard - - - Excerpts

I pay tribute to my colleague the Chairman of the Business, Innovation and Skills Committee, the hon. Member for West Bromwich West (Mr Bailey), not just for the report, but in recognition of all the years during which we have worked together on the Committee, with me as his would-be vice-Chairman. I believe that I speak as the longest-serving member of the Committee: I have been a member for nine years, and the grey hairs can attest to that record. I also thank all the other Committee members with whom I have worked during those nine years. It has been a fascinating experience.

I hope that I may wander off the main topic of the debate just a little—and it will only be a little. It is about time we saw Select Committee membership as an alternative career choice in the House of Commons. I hope that the importance of Select Committees will be enhanced, because, if that does nothing else, it may end what I consider to be the dangers of patriotism and patronage that apply in this place. I hope that that remark has been recorded, and will be picked up somewhere.

Greg Clark Portrait Greg Clark
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rose

Brian Binley Portrait Mr Binley
- Hansard - - - Excerpts

I was talking about patronage on the Front Bench.

Greg Clark Portrait Greg Clark
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I know that my hon. Friend—and he has been a friend for many years—is a considerable patriot. I cannot imagine that he was deprecating patriotism.

Brian Binley Portrait Mr Binley
- Hansard - - - Excerpts

No, not patriotism; I meant patronage, and I am glad that my right hon. Friend has pointed that out. I will now continue to speak according to the terms of the motion, Mr Deputy Speaker, which I am sure will delight you.

My colleague—indeed, I shall use the term “hon. Friend”—the Chairman of the Committee said that he would concentrate on wider issues than that of the money itself. I want to concentrate on the issue of the resource accounting and budgeting charge, the money and the black hole that the charge is producing for future generations.

--- Later in debate ---
Greg Clark Portrait The Minister for Universities, Science and Cities (Greg Clark)
- Hansard - -

We have heard many good words to inspire us in what has been, as many Members have said, an excellent debate. The fact that three of the Members who have spoken will be leaving the House at the election invites us to pay tribute to the contribution they have made over the years. It could be, of course, that more than three may find themselves leaving the House, but three, at any rate, are planning to leave.

I am grateful to the Backbench Business Committee for granting us the opportunity to have this debate, and to the Select Committee, several of whose members have spoken. They have done a valuable job and I echo the tribute paid by my predecessor, my right hon. Friend the Member for Havant (Mr Willetts). They have an important job to do in scrutinising the implementation of the reforms to student finance. As the Chair will know, the Government have rightly adopted many of its specific recommendations, for example on continuously improving the forecasting methodology and on targets for the Student Loans Company. In a different context, I told the Committee that my experience in this House has always been to listen very carefully to the advice of Select Committees. I will always do so.

As the new system is gradually exposed to the clear light of how it works in practice and not in prospect, it is becoming increasingly plain that it is a very considerable achievement and a source of confidence in our future excellence and prosperity. My right hon. Friend the Member for Havant has reason to be very proud of his achievement in carrying through the reforms.

Paul Farrelly Portrait Paul Farrelly
- Hansard - - - Excerpts

Will the Minister give way?

Greg Clark Portrait Greg Clark
- Hansard - -

I want to make some progress. I have the least time of all, which is appropriate in a Backbench Business debate. However, if I have some time later, I will of course take an intervention.

Since the Committee took its evidence, which the Chair will acknowledge was about a year ago, the evidence in favour of the positive effects of the reforms has been mounting. We have discussed whether to undertake a review. I encourage the successor Select Committee in the next Parliament to undertake a stocktake of the system in practice. I suspect that it will draw the same conclusion as I have.

In the words of the OECD, which is widely regarded as the leading authority in the world on comparing education systems, the UK is one of the few countries that has figured out a sustainable approach to higher education finance and the investments pay-off for individuals and taxpayers:

“among all available approaches”—

the OECD includes 34 countries—

“the UK offers still the most…sustainable approach to university finance.”

In responding to the debate, I want to summarise how the advantages are clear for students, the taxpayer and universities.

The system is good for students, because it has allowed more of them than ever before to fulfil their dream of a place at university. Many Members have acknowledged the importance of achieving what has previously been beyond the reach of many of our fellow citizens. This autumn, for the first time in the history of this country, half a million applicants were placed in higher education. The head of UCAS put it this way just last month. It is, she said,

“a stunning account of social change, with the most disadvantaged young people over 10 per cent more likely to enter higher education than last year and a third more likely than just five years ago – 40 per cent more likely for higher tariff institutions.”

Despite predictions to the contrary, students have seen that going to university is an exceptional investment. Graduates earn on average £9,000 more than non-graduates. In the past year, the graduate premium for young graduates—those under 30—has risen to £6,000. Graduates are half as likely to be unemployed as non-graduates and two-thirds are in highly skilled jobs, a proportion that has been rising substantially as we recover from recession. Students know that they will pay nothing up front and that they will pay back only if and when they can afford to do so. It is important to be clear to the House that for a graduate earning £30,000, a high salary compared with the population as a whole, for the benefit of a three year degree they will repay £2.22 a day. That is an eminently reasonable reflection of the value they obtain from that degree. It is no wonder that students are responding with such alacrity—more than ever before.

Let me say why the system is good for taxpayers, as the OECD director said. The reforms have made it possible—without them it would not have been possible—to abolish the cap on student numbers. That is overwhelmingly in our national interests, as I think most Members would acknowledge. The earning power of graduates means that it is not just the graduates themselves who gain—the Exchequer gains hundreds of thousands of pounds over a graduate’s lifetime of employment. That is many times more than even the most conservative estimate of the so-called RAB charge. Andreas Schleicher of the OECD said that what one loses through non-payments is small versus the tax revenue uplift from more students earning more in work and that this premium is expanding.

It is important to emphasise—it has not been clear in some of the contributions—that this subsidy is nothing like a commercial loan, in which any debt that is written off is somehow a mistaken lending decision. It is not like that. It is a reflection of a set of deliberate policy choices to write off, for example, outstanding debt after 30 years, and to repay at 9% above earnings of £21,000. It is highly progressive, according to the Institute for Fiscal Studies: the lowest earning 10% get a 93% subsidy and the highest earning 10% get a 1% subsidy. For the record, I am perfectly content with all the policy choices that produce the published RAB charge.

Liam Byrne Portrait Mr Byrne
- Hansard - - - Excerpts

Is the Minister therefore ruling out any further increase in the tuition fees ceiling if he is re-elected?

Greg Clark Portrait Greg Clark
- Hansard - -

I have been very clear on this. I am not persuaded that there is any reason to increase the ceiling. I think the ceiling at £9,000 is reflective of the costs of providing a good education to people.

Paul Farrelly Portrait Paul Farrelly
- Hansard - - - Excerpts

Will the Minister give way?

Greg Clark Portrait Greg Clark
- Hansard - -

Let me make a bit of progress, but I will come back to the hon. Gentleman.

As my right hon. Friend the Member for Havant said, the published RAB charge, as it is known, is notional and, in fact, ultra-conservative. I mentioned—to the mystification to the OECD, I might add—that it takes no account of the dependable tax revenue uplift that the Treasury takes. It also assumes, as my right hon. Friend said, that the Government’s cost of borrowing is 2.2% a year in real terms. In practice, it has been closer to 0% in real terms. The student loans system is therefore a good deal for students and a good deal for taxpayers.

Paul Farrelly Portrait Paul Farrelly
- Hansard - - - Excerpts

The Minister speaks of confidence in the system. Does he share the widespread concern across the country that other Government changes are making it more difficult for students to cast their verdicts on the fees and funding system they have inherited? The changes to electoral registration rules mean that universities cannot register their students en bloc. For example, at Keele university in Newcastle-under-Lyme just 144 students registered last month, and we have lost nearly 2,600. Is he concerned about the likely effect on student participation and their ability to give a verdict on the system in which he is so confident?

Greg Clark Portrait Greg Clark
- Hansard - -

Every Member takes great pains to encourage young people to register to vote. Through the online registration system, it is easier than ever, and I think that everyone in the House, over the next few months, will encourage people in schools and universities to register. The hon. Gentleman mentioned the university of Keele, but he has to accept that without the reforms that my right hon. Friend the Member for Havant introduced, there would be fewer students going to Keele university in the future than is now possible. That would be bad for the university, which I had the privilege to visit just before Christmas, and bad for the hon. Gentleman’s constituents, who benefit substantially from the presence of that fine university.

The system is excellent for universities too. It is an extraordinary achievement, at a time of financial stringency, that, according to the Institute for Fiscal Studies, the resources available to universities for teaching have on average increased significantly. It estimates an increase from £22,000 under the previous system to about £28,000 per student under the current system. The Institute for Public Policy Research, which tends towards the left in its assessments, said that the main strengths of the current system are that it has increased the resource flowing into higher education, which has enabled institutions to maintain or enhance their level of provision. This led the OECD to conclude that the UK is probably the only country in Europe, and one of the few in the world, to be able to support and sustain a big increase in participation and yet raise unit costs. No wonder that recruitment increased last year for all university types with higher tariff providers to record levels.

Our system of university finance offers extraordinary opportunities to students, universities and the taxpayer, which is why it is mystifying that the right hon. Member for Birmingham, Hodge Hill (Mr Byrne) called for a review. It was not clear to me in his response whether that was the Opposition’s new policy. They have had four and half years to come up with a policy, but now it seems to be a review. Just a few weeks ago, he was speculating vaguely, just as the success was being recognised, about turning turtle on it. It is completely unclear what his policy is. Is it a review or a change? He has previously said that fees would be reduced by £3,000, but that would blow a £3 billion black hole in the public finances and force universities to go cap in hand to the Treasury every year just to maintain their funding. It would decimate that stunning social progress I referred to earlier, since it would obliterate the funds from the access agreements, which will be worth £718 million next year—I was surprised that the right hon. Member for Southampton, Itchen (Mr Denham) did not think they were worth having—and impose pressure to cut student numbers. The IPPR said that the pressure to cut student numbers would crowd out students from disadvantaged backgrounds.

John Denham Portrait Mr Denham
- Hansard - - - Excerpts

For the record, I judge that of the roughly £700 million, £300 million is replicating the work that Aimhigher used to do and is of real value in encouraging social mobility, but £400 million is spent on fees, reductions and bursaries, which has almost no value in persuading somebody to go to university.

Greg Clark Portrait Greg Clark
- Hansard - -

Those funds are available through the access regulator to be invested in the best way. Social progress has been made and people from my background now have the chance to go to university in increasing numbers. To rob universities and our young people of that help and assistance is an extraordinary suggestion from the Labour party.

For what purpose? It would reduce the payments not for poorer graduates but for the very richest. Those who pay off the £9,000 loans in full would be the only beneficiaries. I am talking about the richest 20% of earners, who would pay off their loans on average 28 years after graduation, when they are in middle age, and when they are earning on average £78,000, according to a think-tank. Ironically, this debate has been largely focused on the concerns that too high a proportion of loans is notionally projected to be written off, yet the Opposition want to write off 100% of loans over £6,000 for all graduates, even the ones who can comfortably pay.

I am not instinctively a partisan politician, and I believe it is strongly in our interest that policy questions about our universities should be, wherever possible, rooted in consensus and stability. That was the intention behind the Browne review, which the hon. Member for Huddersfield (Mr Sheerman) referred to, and which the previous Government set up. My right hon. Friend the Member for Havant implemented that dispassionate and thorough report. I hope that the right hon. Member for Birmingham, Hodge Hill will reflect on the ever more obvious success of the system, get behind it and drop his temptation to engage in a stunt that would plunge the financing of higher education into chaos.

Brian Binley Portrait Mr Binley
- Hansard - - - Excerpts

Will my right hon. Friend give way?

Greg Clark Portrait Greg Clark
- Hansard - -

I am just about to conclude.

If the right hon. Member for Birmingham, Hodge Hill does get behind the system, in the same spirit, he will attract praise, not opprobrium, from those on the Government Benches—I am sure that my right hon. Friend would be generous in acknowledging that—and he will earn the respect of the sector, which values the stability and the sustainability that we now have in the financing of higher education in this country.

Brian Binley Portrait Mr Binley
- Hansard - - - Excerpts

I am sorry that my right hon. Friend did not give way. I hope that that is on the record.

Oral Answers to Questions

Greg Clark Excerpts
Tuesday 6th January 2015

(9 years, 4 months ago)

Commons Chamber
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Greg Clark Portrait The Minister of State, Cabinet Office (Greg Clark)
- Hansard - -

A happy new year to you Mr Speaker and to colleagues.

As the hon. Gentleman knows, I have led the negotiations for a city deal and a local growth deal with Birmingham. The city deal has already delivered almost 3,000 apprenticeships in the city and established the Institute of Translational Medicine, which opens in the summer. The growth deal invests a third of a billion pounds in road, rail and metro improvements, including links from the black country to the new HS2 station, as well as investing in skills and industrial facilities.

Jack Dromey Portrait Jack Dromey
- Hansard - - - Excerpts

England cannot succeed through London and the south-east alone. A new devolution settlement is essential. The Minister will know that Birmingham and the west midlands are ambitious to make progress, but does he understand the sense of disappointment that progress thus far has not been what was hoped for and, crucially, that, at the very moment we are talking about greater control over our finances, the Government are cutting in excess of half a billion pounds—the biggest cuts in local government history—from Birmingham city council?

Greg Clark Portrait Greg Clark
- Hansard - -

The leader of Birmingham city council warmly welcomed the growth deal and said that it was a great step forward for Birmingham. The city deals have been welcomed by leaders across the political spectrum and across the country as far more ambitious than anything that has been done for decades. Of course every council across the country needs to make savings. I understand from what the Opposition were saying yesterday that they would go further than that. The hon. Gentleman should be clear that Birmingham is on the rise. The economic prospects and the performance of Birmingham have turned around. In the previous Parliament, the number of net private sector jobs contracted; it is now increasing in Birmingham. That is good news.

None Portrait Several hon. Members
- Hansard -

rose—

James Gray Portrait Mr James Gray (North Wiltshire) (Con)
- Hansard - - - Excerpts

Does my right hon. Friend agree that one of the political and constitutional reforms that would most benefit the people of Birmingham, as well as the people in North Wiltshire and elsewhere in England, would be the early introduction of English votes on English matters?

Greg Clark Portrait Greg Clark
- Hansard - -

I do agree with my hon. Friend. It is right that we correct an anomaly. That should happen as well as the devolution of power within England, which this Government have been pioneering.

Chris Ruane Portrait Chris Ruane (Vale of Clwyd) (Lab)
- Hansard - - - Excerpts

The Political and Constitutional Committee has just issued a report on voter registration. Some 56% of young people in Birmingham are not on the electoral register, and only 44% actually vote. What more can the Deputy Prime Minister do to get those young people on the register in Birmingham and voting?

Greg Clark Portrait Greg Clark
- Hansard - -

The hon. Gentleman knows this area; we have debated it before. It is incumbent on all of us to encourage people to vote. Now that we have individual electoral registration, it is easier than ever before for young people to register; they just need to go to the website. Over the next few months, we need to encourage all citizens, especially young people, to exercise that right.

Andrew Bridgen Portrait Andrew Bridgen (North West Leicestershire) (Con)
- Hansard - - - Excerpts

We are talking about devolving power to local people, but money is power. When my constituents find out that the central Government block grant for Birmingham is £640 per person when a combined grant for Leicestershire is £240 per person, the reform they will call for is fairer funding for rural areas.

Greg Clark Portrait Greg Clark
- Hansard - -

Right across the country, we take the view that local people can be the best judges of how they spend the money. It should not be decided in Whitehall. Whether the money is spent in rural areas or in cities, we are pioneering a programme of getting money out of Whitehall and into the hands of local people.

Stephen Twigg Portrait Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)
- Hansard - - - Excerpts

The best way to make constitutional change is for it to be led by the people and not by politicians. There is now wide support for a people-led constitutional convention. I know that the Deputy Prime Minister agrees with that. When will the Conservatives join the growing consent for such a convention?

Greg Clark Portrait Greg Clark
- Hansard - -

The difference between this Government and the previous one is that we have got on with devolution whereas they just talked about it. The Labour leader of Greater Manchester said that this Government have achieved more in their four years in office than the previous Government did in 13 years, so this should not be kicked into the long grass; we should continue with the programme on which we have embarked.

Andrew Stephenson Portrait Andrew Stephenson (Pendle) (Con)
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3. What discussions he has had with Lancashire local enterprise partnership on the second phase of local growth deals.

Greg Clark Portrait The Minister of State, Cabinet Office (Greg Clark)
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The Lancashire growth deal agreed in July transferred £230 million from central Government to investments in Lancashire. I have met the chairman of the Lancashire local enterprise partnership to underline the importance of encouraging growth in every part of Lancashire in the next round of growth deals, which are being negotiated at the moment.

Andrew Stephenson Portrait Andrew Stephenson
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The second phase of local growth deals proposed by Lancashire local enterprise partnership includes a scheme to regenerate the largest redundant mill complex in the county, Brierfield Mill. That scheme is in my constituency and I have raised and discussed it in detail with the Minister. Although I appreciate that he will be receiving many invitations from colleagues across the House to visit their constituencies, may I encourage him to visit Brierfield Mill at the earliest opportunity to see the exciting plans we have?

Greg Clark Portrait Greg Clark
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My hon. Friend is right that he has raised this with me before and I am keen to see the scheme that he paints in such glowing terms, so if he is free to see me a week on Friday I will come up to his constituency and view the mill. I am confident that it will be as attractive as the picture he paints of it.

Neil Carmichael Portrait Neil Carmichael (Stroud) (Con)
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4. What assessment he has made of the effect on economic growth on the regional growth fund.

Greg Clark Portrait The Minister of State, Cabinet Office (Greg Clark)
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The regional growth fund has already helped create or safeguard more than 100,000 jobs across the country and more still in the supply chain and it is contributing to the 1.75 million more people in work since 2010. I will shortly announce the outcome of round 6 of the regional growth fund, with £200 million available for investment in further job creation.

Neil Carmichael Portrait Neil Carmichael
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Does my right hon. Friend agree that to underpin that work, things such as GREEN at Berkeley—the Gloucestershire renewable energy, engineering and nuclear project—in which the Government have invested to improve training in engineering, energy and renewable energy, are exactly the way to ensure that we have jobs that are lasting, sustainable and productive?

Greg Clark Portrait Greg Clark
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My hon. Friend is absolutely right. If we want high-quality jobs to be sustained in the future, we need to invest in skills. That is why the Gloucestershire growth deal will see substantial investment in training in such skills at the former Berkeley power station. I know that he has been a big champion of that.

Barry Sheerman Portrait Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
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May I wish you a happy new year, Mr Speaker, and the Deputy Prime Minister a happyish new year—[Interruption.] A little humour, Mr Speaker. May I push the Minister on regional growth funds? The fact is that none of us will turn down help from the regional growth funds and my own constituency has some, but, at the same time, we have a totally demoralised democratic local government in this country that is desperately short of funds and desperately unable to meet the needs of local people. Is it not about time we had democratic, well-resourced local government in this country?

Greg Clark Portrait Greg Clark
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The news from the shadow Chancellor will not be welcome in the hon. Gentleman’s patch, as the shadow Chancellor has said that there will be more cuts for local government. He might want him to explain that. The leaders of the councils in Leeds warmly welcomed the growth deal concluded in July, which establishes a £1 billion transport fund for west Yorkshire that will benefit the hon. Gentleman’s constituents as well as others across west Yorkshire. That was warmly welcomed by leaders across the region, so I think that he should talk to them.

Angus Brendan MacNeil Portrait Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
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Surely the best way to achieve regional growth and to help areas such as the north of England is for good neighbours in Scotland to have full fiscal autonomy to counterbalance what the Minister’s colleague from Twickenham, the Secretary of State for Business, Innovation and Skills, called the great suction machine pulling life from the economy of other parts of these islands. Why is it Government policy to maintain a system that protects London at the expense of other areas?

Greg Clark Portrait Greg Clark
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That is complete nonsense. The record of job creation over the course of this Parliament shows that the vast majority of jobs have been created outside London. One thing we negotiated was a city deal with the city of Glasgow that was well received in that great city.

Richard Graham Portrait Richard Graham (Gloucester) (Con)
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5. What progress he has made on implementing local growth deals.

Greg Clark Portrait The Minister of State, Cabinet Office (Greg Clark)
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Funding for the local growth deals begins in April this year, but strong progress is being made in implementing the deals even in advance of this. In Gloucestershire the growth hub, which gives advice and support to small businesses, opened at the university of Gloucestershire in October and is already being well used by local businesses.

Richard Graham Portrait Richard Graham
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My right hon. Friend is absolutely right that the university of Gloucestershire’s growth hub in the city of Gloucester is making real progress already. May I invite my right hon. Friend to visit it and, while he is there, to take the opportunity to see our exciting plans for the regeneration of Blackfriars in the city centre, which are a key feature of our LEP’s next bid?

Greg Clark Portrait Greg Clark
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My hon. Friend the Member for Pendle (Andrew Stephenson) was right to predict a spate of invitations. Of course I will come and visit the new growth hub in Gloucester in the company of my hon. Friend the Member for Gloucester (Richard Graham).

Rehman Chishti Portrait Rehman Chishti (Gillingham and Rainham) (Con)
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14. I thank the Minister for the Medway growth deal, which is providing over £30 million to the local area. At the heart of the growth is the development of skilled people. Will he join me in welcoming South East LEP’s new skills capital fund, which is using £22 million for the further education sector to help provide the skills our businesses need to grow?

Greg Clark Portrait Greg Clark
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I will indeed. The Medway towns have benefited substantially from the growth deal, which is investing in the skills that are required if the jobs of the future are to be well paid and offer the satisfying careers that people want locally.

Duncan Hames Portrait Duncan Hames (Chippenham) (LD)
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I welcomed the Deputy Prime Minister to Wiltshire last month for the formal signing of the Wiltshire and Swindon local growth deal. Funding in that deal for the redevelopment of Chippenham railway station could also be of great benefit to Corsham if it enabled the reopening of a platform for local train services. Does the Minister recognise that the benefit would be much wider than to Chippenham alone?

Greg Clark Portrait Greg Clark
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The benefits of growth deals go beyond their particular location and help improve the economic prospects of the whole area. The hon. Gentleman is fortunate in Wiltshire in having the rail Minister, my hon. Friend the Member for Devizes (Claire Perry), as an important advocate for such schemes. The important point is that they are bottom-up and they are proposed by local people.

Oliver Colvile Portrait Oliver Colvile (Plymouth, Sutton and Devonport) (Con)
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6. What steps he is taking to devolve power to cities and metropolitan areas.

Greg Clark Portrait The Minister of State, Cabinet Office (Greg Clark)
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Cities and their surrounding counties and districts prosper together, which is why I am delighted that the Plymouth city deal, signed last year, also includes businesses and councils in Devon and Cornwall. By opening up South Yard in Devonport to create a commercial marine engineering centre, high-quality jobs will be created not only in Plymouth, but across the south-west.

Oliver Colvile Portrait Oliver Colvile
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I thank my right hon. Friend for coming down to Plymouth to sign our city deal this time last year. Plans for a maritime industrial campus are at a good stage, and we would very much welcome his coming down to have a look at them. To give an extra boost to that city deal proposal, I urge him also to speak with the Treasury about ensuring that we have an enterprise zone in that part of the dockyard.

Greg Clark Portrait Greg Clark
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I am keen to see South Yard be a success—I am certain that it will be. Many of the advantages of an enterprise zone are already available to councils, through simplified planning rules and discounts on business rates, but I will of course study my hon. Friend’s proposal in detail.

David Wright Portrait David Wright (Telford) (Lab)
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It is quite obvious how to devolve more powers to large metropolitan areas, but how do we deal with towns, such as Telford, that sit outside large metropolitan areas? Would it not be better to throw the issues about broader devolution right across England into a constitutional convention?

Greg Clark Portrait Greg Clark
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It would not, because that would delay the progress we have made. With regard to the hon. Gentleman’s part of the world, if we go to local people and ask them to work together with their neighbours, right across the country we are seeing that they are able and willing to do precisely that. All the deals that have been struck have been proposed locally and are having a big impact on local economies, including in Telford.

David Nuttall Portrait Mr David Nuttall (Bury North) (Con)
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Given that the voters of Bury, when asked in a referendum, made it quite clear that they were against the idea of having an elected mayor, and given that across Greater Manchester’s 10 local authorities there are already 645 elected councillors, if 645 elected councillors cannot solve the problems of Greater Manchester, what makes my right hon. Friend think that 646 elected officials will make any difference?

Greg Clark Portrait Greg Clark
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The proposal was agreed unanimously by all the councils in Greater Manchester. It is important to be clear that the mayor is taking powers that were previously exercised from Whitehall, so this is not about taking powers away from any of those authorities; it is about transferring to a successful city—that is what Greater Manchester indubitably is—the ability to advance its prospects even further.

Graeme Morrice Portrait Graeme Morrice (Livingston) (Lab)
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7. What assessment he has made of the completeness of the electoral roll.