Industrial Strategy

Debate between Greg Clark and Christian Matheson

Monday 27th November 2017 Commons Chamber

[Christian Matheson (City of Chester) (Lab)]

I find myself in the unusual position of agreeing with Lord Heseltine, who suggested that the best strategy for industry in the United Kingdom might be not to leave the European Union. However, we are where we are.

The aerospace sector has experienced some difficult times recently. A great many orders have gone abroad, particularly to the United States, with no reciprocation. What will the Secretary of State do to stand up for a sector in which we have a world-leading position, given that we do not have the relationship that we should have with some of our major partners?

[Greg Clark]

We do stand up for the aerospace sector. It is one of the most successful sectors in terms of joint working, both with the firms in the sector and with the Government. We have a good record of working together. As for ensuring that we obtain orders in this country, there is a big role for us all to play in spelling out the benefits to other countries of products and services that are made in and provided from this country, and I hope the hon. Gentleman will join me in doing that.

Oral Answers to Questions

Debate between Greg Clark and Christian Matheson

Tuesday 7th November 2017 Commons Chamber

[Greg Clark]

I know what a great campaigner my hon. Friend has been on this issue. We have published the draft Bill, which includes our intentions, and I hope that he will give evidence while the Bill is being scrutinised. We are eager to hear his views, and we are eager to hear whether the Select Committee agrees with his analysis.

[Christian Matheson (City of Chester) (Lab)]

T5. Does the Secretary of State accept that the true test of his industrial strategy will be how actively he and the Government intervene to protect manufacturing skills and jobs when companies such as BAE Systems, Bombardier or Vauxhall face crisis?

[Greg Clark]

I agree with the hon. Gentleman that the Government, my ministerial team and I should be active in securing investment opportunities and continued employment by UK companies and international companies that invest in the UK, and we are. I do that tirelessly. In the case of Ellesmere Port, we have had discussions with Peugeot and it is interested, as we are, in investment in the new generation of vehicles, with which I know the hon. Gentleman is familiar.

Bombardier

Debate between Greg Clark and Christian Matheson

Tuesday 10th October 2017 Commons Chamber

[Greg Clark]

I can give that complete assurance to the hon. Gentleman. I think this does unite everyone in the House and across all parts of Northern Ireland, and indeed the island of Ireland. My right hon. Friend the Secretary of State for Northern Ireland has again been assiduous in ensuring that no stone is unturned in making the case, as have the leader of the hon. Gentleman’s party and others in Northern Ireland.

A point on which I did not answer the hon. Member for North Down (Lady Hermon)—I apologise—was about our contacts with other people in the US system: congressmen, senators and governors. That has been carried out, again in complete co-ordination with the Canadian Government, and it has been significantly helped by the cordial relations that exist between the United States and many people in Ireland.

[Christian Matheson (City of Chester) (Lab)]

These events put me in mind of those in the 1970s, when the American aerospace industry ran an aggressive campaign against sales of Concorde, spiking any sales of that plane at the time. Does the Secretary of State agree that the motivation for Boeing is not about a trade dispute, but about wiping out a competitor? This situation on its own would be serious enough as it is, but does he also agree that, taken with the statement earlier about the problems at BAE Systems, this is a defining moment for the British aerospace sector as a whole and that we need strong Government support across the sector?

[Greg Clark]

I think these are separate issues. This is a trade dispute—an unjustified complaint that Boeing has brought against Bombardier. It is important that it should be thrown out and the case dismissed. As for the motivation for it, that is for Boeing to describe. It has alleged that this is unfair competition. All I would observe is that it is difficult to point to competition when the product does not compete with an existing Boeing product, so Boeing’s longer-term motivations will need to be justified to the International Trade Commission.

Oral Answers to Questions

Debate between Greg Clark and Christian Matheson

Tuesday 14th March 2017 Commons Chamber

[Greg Clark]

The self-employed have an important role to play. One trend that colleagues on both sides of the House will know of is that the development of supply chains is one of the key sources of innovation in many industries. Within that, start-up businesses, including those run by the self-employed, can make a big contribution to making us attractive for jobs and new businesses.

[Christian Matheson (City of Chester) (Lab)]

12. If he will make an assessment of the effectiveness of his sector-based approach in delivering the aims of the Government’s industrial strategy.

[Louise Haigh (Sheffield, Heeley) (Lab)]

16. What steps the Government is taking to ensure that all sectors of the economy benefit from its industrial strategy.

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

We have had great success over the years in developing key sectors, including aerospace and the automotive sector. To build on this, we have set out proposals for new business-led sector deals in the industrial strategy. The first set of deals is already under development. We are taking steps to drive growth in sectors across the economy, including with funding for science, infrastructure and technical education.

[Christian Matheson]

Does the Secretary of State share my concern that the implementation of an industrial strategy led by the big players will focus solely on the big players? What is he doing to ensure that the small and medium-sized enterprises in those sectors, which are often the engine rooms, get their fair say and their fair share?

[Greg Clark]

I assure the hon. Gentleman that that is not the case. I have regular discussions with the Federation of Small Businesses, the British Chambers of Commerce and smaller businesses right across the country. The supply chain, and making our country more attractive to supply chain businesses, are absolutely foundational to our industrial success, and that involves a particular regard for small businesses.

Opel/Vauxhall: Sale to PSA Group

Debate between Greg Clark and Christian Matheson

Monday 6th March 2017 Commons Chamber

[Greg Clark]

I will indeed. As soon as we heard about these proposals, my colleagues and I engaged immediately with the management and the unions of this country and with our counterparts. My engagement in our activity will not let up in the weeks ahead. These assurances are welcome, as everyone has noted, but we need to make sure that they are implemented in practice.

[Christian Matheson (City of Chester) (Lab)]

I echo the thanks to the Secretary of State for his efforts to keep those of us with a constituency interest involved. I am most grateful to him. Does he accept that our car industry is at a competitive disadvantage compared with those in other European countries because of the way that business rates operate, and that when new plant is installed, it increases business rate costs? Will he speak to his colleagues in the Government to see if we can find a way around this disincentive to invest?

[Greg Clark]

I am grateful to the hon. Gentleman for his kind words, but I remind him and colleagues that this country is a competitive place in which to do business, including in the car manufacturing sector. Different countries will have different policies. I am determined to make sure that we are competitive and that we remain competitive so that we can expand our production in the future.

Vauxhall/Opel: Proposed Takeover

Debate between Greg Clark and Christian Matheson

Monday 20th February 2017 Commons Chamber

[Greg Clark]

It is important to reflect on the context: our reputation as an open economy that attracts overseas investment is one of the foundations of our success. We need to maintain that success and reputation. We have said that we will bring forward proposals, as we will regarding corporate governance. We will do that in due course and I will update the House at that time.

[Christian Matheson (City of Chester) (Lab)]

As a trade union official, I supported the management and workers at Ellesmere Port through new model bidding processes three times. Each time, they demonstrated themselves to be productive, efficient and flexible, and their plant to be profitable. Unfortunately, those attributes cut no ice with Peugeot, which has form in this area, as any Coventry Member will attest. May I suggest that the Secretary of State uses this opportunity to beef up his industrial strategy? I also suggest that any public procurement of motor vehicles, for example by police forces, local authorities and Government Departments, should involve only the purchase of cars from companies that build in the UK, and that those that choose not to build in the UK should not be considered?

[Greg Clark]

Of course, I discussed with PSA the context of its closure of the Coventry plant. It was pointed out to me that the company has new management and a different approach was described. These are early stages, but that was a better message to receive than the alternative. However, like the hon. Gentleman, I want to ensure that it is reflected in practice. On procurement, it is obviously important that we get good value for money, and we have changed the procurement rules to take into account some of these wider impacts.

Industrial Strategy Consultation

Debate between Greg Clark and Christian Matheson

Monday 23rd January 2017 Commons Chamber

[Greg Clark]

I was delighted to be back in Daresbury, which I have visited several times with my hon. Friend.

[Christian Matheson (City of Chester) (Lab)]

I was born there.

[Greg Clark]

Clearly lots of good things happen in Daresbury—[Interruption.] Some better than others, it is pointed out—that is a little mean.

My hon. Friend the Member for Weaver Vale (Graham Evans) mentions two things. The first is the devolution through the local growth fund, which is making a big difference across the country by putting more funds in the hands of people with the knowledge of what is needed locally to make a difference. The second, of course, is the big investment in research and development, of which impressive facilities such as that in Daresbury will make good use.

--- Later in debate ---

[Greg Clark]

I am grateful to my hon. Friend for his words and for his contribution, which, as he will see when he reads it, features prominently in the Green Paper. It is an excellent idea, and I hope he will promote its success in the years ahead.

[Christian Matheson (City of Chester) (Lab)]

rose—

[Christian Matheson]

I would hope not least, Mr Deputy Speaker.

The Science, Engineering and Manufacturing Technologies Alliance has calculated that there is an annual shortfall of 50,000 skilled engineers and that this will aggregate to about 800,000 by 2020. How does the Secretary of State plan to close that gap? While he is at the Dispatch Box, will he take the opportunity to scotch the recent press reports and confirm that all the steel in HS2 will be made at UK plants, including Shotton, where many of my constituents work?

[Greg Clark]

On the first point, it is clear that our investment in and focus on technical education goes precisely to meet the challenge that the hon. Gentleman identifies—around the gap between the needs of employers and the skills available in the workforce. On procurement for HS2, he will know that we have changed the guidelines to enable the contribution from British steel to be viewed on a fairer basis, but obviously that is part of a process that HS2 will need to go through to procure the product.

Local Government Finance

Debate between Greg Clark and Christian Matheson

Thursday 17th December 2015 Commons Chamber

[Greg Clark]

I and my team stand ready to meet colleagues to discuss local circumstances. I can tell my hon. Friend that as a result of this settlement Somerset will receive an increase in its spending power of 4% by 2019-20, which I know will be a big help.

[Christian Matheson (City of Chester) (Lab)]

Cheshire West and Chester Council’s budget is being cut by central Government by £47 million. I hope the Secretary of State is clear that when local services are scrapped or cut, responsibility for that will lie squarely at the feet of himself and the Chancellor.

May I ask the Secretary of State about the new homes bonus grant, particularly in the light of his longer-term and four-year budgetary proposals? I understand that when it was first introduced, payments were to be made to councils for six years, and councils have planned their income on that basis. We understand now that payments might be made for only four years, which will of course restrict the ability of councils to respond to that grant. Will the Secretary of State clarify the situation?

[Greg Clark]

If the hon. Gentleman believes councils should be in charge of their own destiny and count on their own resources, he will need to understand that we are moving into a world in which councils are financed locally, not centrally. He will want, I am sure, to discuss with his council how it is going to make spending decisions.

On the new homes bonus, the good news for councils across the country is that we are continuing that very successful policy. We are consulting on some possible changes, and one option is to reduce the period from six years to four for new developments. Councils will continue to receive the funding that they have expected for developments they have approved. If we do go with that option, the funds that are released will be invested in social care.