Oral Answers to Questions

Debate between Greg Clark and Clive Lewis

Tuesday 19th March 2019 Commons Chamber

[Greg Clark]

Quite the opposite is true. One of the reasons why it has proved impossible to finance privately some of these nuclear power stations is that the cost of renewables was falling and the availability was increasing so rapidly that they are being muscled out of the system. The forecast electricity margin for this year is now over 11%, the highest for five years. To put this into context for the hon. Gentleman, the contribution that the Wylfa nuclear power station—3 GW—would have made was procured in a single contract for difference auction for offshore wind. That shows the abundance that we have, rather than the shortage.

[Clive Lewis (Norwich South) (Lab)]

14. What steps he plans to take to support small and medium-sized renewable power generators after the scheduled closure of the feed-in tariffs scheme.

Oral Answers to Questions

Debate between Greg Clark and Clive Lewis

Tuesday 31st January 2017 Commons Chamber

[Greg Clark]

I am never too busy for Morecambe and Lunesdale, and I know what a passionate campaigner my hon. Friend has been for the business prospects in his area. If I may, I will talk to the Minister responsible for the northern powerhouse, who has responsibility for enterprise zones—I am sure he will be happy to have a meeting with my hon. Friend.

[Clive Lewis (Norwich South) (Lab)]

The Secretary of State’s plan to impose arbitrary cuts on the pensions of 16,000 nuclear energy workers, 7,000 of them in Copeland, threatens industrial relations in a key sector. I urge him to take the opportunity, at this week’s meeting with trade unions, to end his attack on workers who power our country and abandon the raid on their pensions before the industry is plunged into chaos.

Industrial Strategy Consultation

Debate between Greg Clark and Clive Lewis

Monday 23rd January 2017 Commons Chamber

[Clive Lewis (Norwich South) (Lab)]

I thank the Secretary of State for advance sight of his statement, on this occasion.

Today would be a momentous day if it was indeed the day that the Conservative party finally broke free from the free-market fundamentalism that has dogged it, and the country, for decades. Will the Secretary of State tell us whether the “new, active” role for the state means that the Government are abandoning the approach of the last Prime Minister and Chancellor—and of the Secretary of State’s own predecessor, who even banned the term “industrial strategy” from the previous Department? If so, I will make it clear at the outset that we welcome that, alongside the good intentions set out in today’s Green Paper. The question is whether the details will live up to them.

For example, action on skills will be widely welcomed, given the challenges presented by automation and the pace of technological challenge and change, but this Government have already cut adult education by over £1 billion. Can the Secretary of State explain how £170 million of one-off capital spending can even begin to close the skills gap?

Nor will the Government themselves be equipped to support an industrial strategy if the Secretary of State’s predecessor’s cuts are implemented. Can he confirm that the Department for Business, Innovation and Skills 2020 project has now been thrown in the bin, along with the rest of his predecessor’s legacy?

The Secretary of State rightly sets the goal of developing a competitive edge in the industries of the future, but how does he reconcile this with his Government’s plan to privatise the UK Green Investment Bank? If the Secretary of State is serious about tackling our productivity crisis, will he go beyond piecemeal offers and finally bring investment in R and D and infrastructure into line with the OECD average? Will the Secretary of State promise a fundamental rethink of business rates, which many businesses say would help them much more than any other single measure? Does the Secretary of State agree that a successful industrial strategy must include partnership and co-operation with the workforce? Yet the Green Paper does not mention trade unions once; surely now is the time to promise that the toxic Trade Union Act 2016 will be repealed.

Steel is a critical sector for our future economy, but it is mentioned only once in the Green Paper. Will the Secretary of State commit to implementing the recommendations on procurement and supply chains contained in the all-party group on steel and metal related industries report out today?

We cannot limit our focus to high-tech manufacturing. An industrial strategy that narrows its focus to a few chosen sectors will let down the majority of businesses in this country and the people they employ. So can the Secretary of State tell us what this industrial strategy will do for small and medium-sized enterprises, which are huge employers, and for financial services, which are our main exporters, as well as for foundation industries, or for the retail outlets that shape our high streets up and down the country?

Finally, there is a glaring inconsistency between the noble aims of this Green Paper and the threats made by the Prime Minister to turn Britain into an offshore tax haven if she fails in her Brexit negotiations. Until now, the industrial strategy has seemingly consisted of one deal, made in secret, with Nissan. If the Nissan deal did not last six months, how can businesses be confident of the other commitments in this Green Paper?

It is often said, correctly, that an industrial strategy is a long-term project and that, if it is to work, it must outlast particular Governments. With this in mind, I can pledge our support for its broad aims from this side of the Chamber, but I feel compelled to ask whether the Secretary of State can count on the same support from his own side. When we previously debated the industrial strategy here, one of his own hon. Friends said that they had two problems with it: one was “industrial”, the other was “strategy”. I hope that he faces down such attitudes, because now is not the time for half measures. The BBC reported this morning that the Government wished to be in the driving seat but not have two hands on the wheel. I know that Conservative Members do not much like safety legislation, but that is not an approach I would recommend, especially if the Government keep making U-turns. If the Secretary of State finds himself isolated in the coming months, my party will be happy to help. We, too, are ambitious for a proper industrial strategy, but it will succeed only if the means match the ends.

[Greg Clark]

It is true that an industrial strategy wants to help all parts of the United Kingdom, and I look forward to engagement with colleagues from all parts of the House who wish to represent the views of their constituents. I am relieved that the hon. Gentleman has given his grudging support for this statement, given that the last time he appeared at the Dispatch Box, he said:

“Is it simply a case of ‘public good, private bad’? That is what we think on the Opposition Benches”.—[Official Report, 11 January 2017; Vol. 619, c. 319.]

That would send a disastrous signal to investors in this country, and I am pleased to be on the other side of that argument.

The hon. Gentleman asked a number of questions. Our commitment to transforming technical education has been widely welcomed by the business community up and down the country today. Also, it is highly unusual for a Green Paper to commit any funds. This is about the consultation on the direction, and the fact that the Chancellor has announced £170 million for new institutes of technology is a great step forward. The hon. Gentleman asked about increasing the level of research and development. He might have missed what I said about the Chancellor having committed to the biggest increase in research and development since 1979. I recall that the period since then has included several years of a Labour Government, so by implication this is a bigger increase than any that took place during Labour’s 13 years in office. He also asked about business rates. We are legislating this very afternoon to introduce 100% retention of business rates by local councils so that the interests of local businesses and councils can be aligned.

The hon. Gentleman asked about the workforce. I was clear in my statement that the consultation would involve employees as well, and I am looking forward to a roundtable with the TUC and its member organisations. On steel, he will see in the Green Paper an approach to sector deals. I have already met the chief executives of the steel companies and I am about to meet representatives of the trade unions again. I look forward to that being one of the deals that is being put forward.

The hon. Gentleman asked about involving small businesses. The chairman of the Federation of Small Businesses has said today:

“FSB has appreciated being part of the discussions with the business secretary…to help shape the Industrial Strategy.”

He said that the proposals

“fit well with the UK small business community.”

As far as the hon. Gentleman’s position on the fiscal arithmetic goes, he should reflect on the fact that the first foundation of any credible industrial strategy is confidence in the public finances, which were left in such a disastrous state during the time that Labour was in government. The hon. Gentleman made a point about unanimity of purpose. We are having a consultation on the industrial strategy, but I understand from reports in recent days that he is having a consultation with himself about whether he can support his own party’s position on triggering article 50. We will be looking forward to the responses to our consultation from all parts of the House as we form a strategy for the years ahead.

Oral Answers to Questions

Debate between Greg Clark and Clive Lewis

Tuesday 8th November 2016 Commons Chamber

[Greg Clark]

My hon. Friend will recognise that, over recent years, there has been considerable progress and agreement between the sector and the Treasury to ensure that we have the best possible tax regime for the UK continental shelf. That will continue, and we will make sure that the regime remains competitive.

[Clive Lewis (Norwich South) (Lab)]

Our economy is desperately in need of more long-term strategic thinking, decision making and far less reliance on free markets and the laissez-faire approach that was mentioned earlier; I am grateful for the Secretary of State’s response to his colleague’s comments. Yet for many businesses the long term is currently a “maybe” rather than a certainty, as the uncertainty arising from Brexit places investment and survival in grave doubt. Will the Secretary of State give all companies the Nissan treatment and say how he will support all our businesses and industries through Brexit?

[Greg Clark]

I am disappointed with that question. Perhaps it was rewritten by Seumas Milne when the hon. Gentleman was not looking—that might account for it. He knows very well that I will be vigorous and active right across the economy in promoting Britain as a good and competitive place to do business. That is our responsibility in government, and no one will discharge it with more vigour than me.

--- Later in debate ---

[Greg Clark]

I will indeed join my hon. Friend in congratulating the University of Leeds. In fact, I initiated this week’s tech summit in India during a visit to India two years ago, so I am delighted that it is taking place. I took a party of vice-chancellors with me on that occasion. He is absolutely right that Leeds plays a formidable part in the scientific excellence of the north.

[Clive Lewis (Norwich South) (Lab)]

I can assure you, Mr Speaker, that no walls or media devices have been harmed in the formulation of this question—nor have they ever been.

In the light of the enthusiasm for workers’ rights expressed in yesterday’s debate by the Secretary of State, will he join me in offering his support to delivery riders? These workers are seeking union recognition as part of their fight against bogus self-employment and to secure employment rights, such as sick pay and holiday pay. Will he commit his Government to helping in whatever way they can?

[Greg Clark]

The hon. Gentleman might have noticed that we have commissioned a review of these new employment practices, which Labour did not do when it was in government. There is perhaps a problem for him in that the review is being led by Matthew Taylor. I do not know whether the former head of the policy unit under Tony Blair counts as a person he trusts with the review; nevertheless, he is engaged with the review and will report to the Government and to the House.

Nissan: Sunderland

Debate between Greg Clark and Clive Lewis

Monday 31st October 2016 Commons Chamber

[Clive Lewis (Norwich South) (Lab)]

I thank the Secretary of State for his statement and for responding to our repeated requests for clarification on the events of the past few days. I join him in warmly welcoming Nissan’s decision to keep production in the UK. It is fantastic news for Nissan’s 7,000 employees and the 38,000-plus employees who rely on its supply chain. It is fantastic news for Sunderland, and it is fantastic news for the whole country. It is a testament to the skill, productivity and ability of the workforce and management that Nissan has such confidence in its Sunderland operation.

Without detracting from that, we still have some concerns. The right hon. Gentleman has denied giving Nissan special treatment, but he has refused to be transparent about what he has offered to it. As our most productive car factory, Nissan’s Sunderland plant epitomises the strengths of the UK’s automotive industry. He knows that we simply could not afford to lose it. That is why, despite the assurances that he has given now and in his tantalising television appearances over the weekend, the nagging question remains: are we really to believe that Nissan is risking millions of pounds of investment and the success of its newest models on the basis of the Government’s good intentions alone? If that is the case, why have they kept their good intentions to themselves?

The overwhelming impression until now has been that the Government have no strategy for Brexit. Are we expected to believe that the Government now have not only a strategy, but a strategy so convincing that they have persuaded Nissan to stay without the need for any special guarantees? If so, why will they not tell us what it is? We are told in the media—the media is where most of last week’s revelations transpired—that the Government gave a commitment to Nissan that Britain would be as attractive after Brexit as it is today.

It would seem that the Secretary of State has discovered the Brexit equivalent of the Philosopher’s stone: tariff-free market access with no concessions, readily agreed by all 27 EU countries, including Wallonia. Surely, that is a feat worth sharing. So can he tell us whether he is committing to full single market access or to a customs union or to something else entirely—or do the Government simply not know? We all want all car manufacturers to keep their production in the UK—[Interruption.] Yes, we do. So why are they not privy to the same assurances as Nissan, and what about the many other businesses up and down the country—businesses that, like Nissan, are currently deciding whether to continue investing in the UK? Surely, they, too, should be told.

I have acknowledged that the automotive sector is hugely important to our economy, but it is not our only strategically important industry. Where were the Government during the crisis in the steel industry? They were blocking the EU from taking action against Chinese steel dumping—that is where they were. What are the Government doing for the aerospace industry, or for pharmaceuticals, and what about the service sector, which accounts for more than three quarters of our economy?

It seems that the Government are giving private reassurances to particular companies, while leaving the majority of businesses, the public and their elected representatives in the dark about their intentions. Piecemeal, back-room deals will not provide the active industrial strategy that Labour has long advocated and to which the Government now claim to be signed up. We Labour Members want the economy firing on all cylinders, not spluttering along on one or two.

As we embark on Brexit, Britain needs a Government who are visionary, not reactive, and strategic, not shambolic. As a start, we need a Government who are transparent and accountable, instead of secretive. Why not start now? If the right hon. Gentleman did not offer Nissan a sweetener, what has he got to hide? Show us the letter. If the assurances he gave to Nissan apply to all the automotive sector, surely all that sector should be given them? Show us the letter. If, contrary to appearances, the Government do have a strategy for Brexit, why will they not tell us what it is? Show us the letter!

[Greg Clark]

I welcome the hon. Gentleman to the Dispatch Box, but if that is the kind of spluttering old banger of an approach to these issues, I think he should upgrade to a new model. I would recommend a Qashqai; they are very good cars. I find it surprising that, in response to an announcement that has thrilled Sunderland and the north-east and provided a big boost to the economy, the Labour party’s demeanour is so miserable. Is it beyond the hon. Gentleman to put party politics aside and just celebrate and congratulate everyone involved on a success that is in all our interests?

I seriously ask the hon. Gentleman to weigh this issue up carefully. When I met Nissan, one thing it commented on was the continuity over 30 years of a very successful participation in the UK economy, with cross-party support and consensus over the Sunderland plant—reflected in what both Conservative and Labour Governments have done. It would be to take a wrong turn if the Labour party lurched away from the bipartisanship that has been so successful there.

As for the conversations that we had, one of the things that I have learnt over the years is the importance of getting to know, over time, the companies that are in this country and those that invest in it, and understanding what their investment decisions will be based on. We have taken the opportunity to do that, and the four reassurances that I was able to give Nissan and that have resulted in this investment reflected what Nissan had said to me.

I said that I would aim for the best possible ability to trade with other European Union countries. I said that I would pursue the negotiations in a positive and constructive spirit, mindful of the substantial common ground that exists between us. I said that whatever happened, we were determined to keep Britain’s world-beating motor industry competitive. Do Labour Members share those intentions? If they do, why on earth do they think that I would play games with the livelihoods of 35,000 working people in this country, the pride of the world in their industry, by not stating them clearly and transparently to Nissan? I welcome the decision that Nissan has made.

The hon. Gentleman asked me whether I would publish the correspondence. I have set out the information that I gave to Nissan. My responsibility, on behalf of the Government, is to encourage and attract investment in this country. When companies of all types and in all sectors share with me investment plans that would be of interest to their prospective competitors, it is important for them to be assured that those plans will not be disclosed to their competitors to their disadvantage. My objective is to obtain the investment, but I shall be happy to answer questions about every aspect of it, today and when I appear before the Select Committee—which I intend to do, at the Committee’s invitation.

The hon. Gentleman is a relatively new Member, and I hope that he will have a distinguished tenure here, but Members in all parts of the House—from Newcastle to Newquay, from Liverpool to Lowestoft—will know that whenever I work to attract success to our regions, towns, cities and counties, I do so on a cross-party basis. Party politics never feature in the way I work. I hope that, in future, we shall be able to work together on such common interests.

Oral Answers to Questions

Debate between Greg Clark and Clive Lewis

Monday 21st March 2016 Commons Chamber

[Greg Clark]

The hon. Gentleman is wrong. The decisions we have made to reduce spending would have been made by any party that came into power after the election. The difference is that our party has devolved powers so that local authorities can have greater concern for their own future. On the change we have made to the methodology, the Institute for Fiscal Studies has said that it is an improvement and that the system is fairer than that in previous years.

[Clive Lewis (Norwich South) (Lab)]

2. What recent assessment he has made of the fairness of local government funding.

[Andy McDonald (Middlesbrough) (Lab)]

17. What recent assessment he has made of the fairness of local government funding.

[The Secretary of State for Communities and Local Government (Greg Clark)]

The local government finance settlement reflects a detailed assessment of the needs and challenges of each area. We have announced a fair funding review and will work with local authorities to determine the appropriate funding needs of different types of areas as we move to 100% business rates retention by 2020.

[Clive Lewis]

Last month, the Government announced that 85% of the £300 million transitional fund for local government is going not to Labour or Liberal Democrat councils, but to Conservative councils. Does the Secretary of State agree with the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith) that that does not matter, because those areas “don’t vote for us”?

[Greg Clark]

I am surprise to hear the hon. Gentleman ask that question, given that his county of Norfolk has benefited from £1.6 million through the transitional grant, which I would have thought that he would welcome. On what party colleagues have to say, he should take advice from Bury Council, which has said:

“The methodology is a welcome improvement on that employed for allocating revenue support grant reductions…and goes some way to redressing…years in which poorer metropolitan authorities have received an unequal share of…funding.”

The hon. Gentleman should talk to his party members as well as his constituents.