British Steel

Debate between Greg Clark and Jeremy Lefroy

Wednesday 24th July 2019 Commons Chamber

[Greg Clark]

The hon. Gentleman makes an excellent point. Improving the access to and availability of patient capital in this country is a focus through the industrial strategy and some of the work that the Treasury is doing, but there is more work to be done. He is right—a long-term owner of British Steel needs to have the patience required in an industry that is, and always has been, subject to the ups and downs of the economic cycle and sometimes conditions in international trade. It is often not the most stable of industries, and as I think he would agree, any owner needs to be resilient to that.

[Jeremy Lefroy (Stafford) (Con)]

British-manufactured steel is vital for exporting companies in my constituency, such as General Electric, and across the country and therefore makes a huge contribution to our balance of payments. What is being done to support the export of British steel both directly and through other manufactured goods? Will my right hon. Friend comment on what my hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke) said about the possibility of the UK Government being a co-investor, alongside others, to ensure that British Steel continues to serve this nation so well?

[Greg Clark]

On the first point, there are great opportunities for exports. The support group has been working with the Construction Products Association, for example, to improve the marketing of British Steel products in this country and to overseas markets. Support is available through UK Export Finance for British exporters in all sectors. When it comes to the requirements of any bidder, strict rules pertain to British Steel, which is one reason why it requires an understanding of the investment plans of prospective bidders. That is something I have been doing, and I hope it will continue in the new Government.

British Steel

Debate between Greg Clark and Jeremy Lefroy

Wednesday 22nd May 2019 Commons Chamber

[Greg Clark]

The sector deal was proposed in the industrial strategy. I am keen that there should be a sector deal in the steel industry, but the essence of a sector deal, as the hon. Gentleman knows from his work on the Business, Energy and Industrial Strategy Committee, is mutual investment by both sides. There is a good plan there, but one difficulty at the moment—British Steel is a good example of this—is that it has not been possible to see the investment coming in that is the hallmark of every sector deal. I very much want us to have that, and I hope that in talking to new partners we might have an opportunity for that sector deal to be completed, because in every sector deal we have the new investment that is required.

[Jeremy Lefroy (Stafford) (Con)]

I entirely support what my hon. Friends the Members for Middlesbrough South and East Cleveland (Mr Clarke) and for Brigg and Goole (Andrew Percy) have said about an innovative public-private approach to this. My right hon. Friend the Secretary of State talked in his statement about the accounting officer’s assessment, which said:

“It would be unlawful to provide a guarantee or loan”.

Will he confirm what the situation would be with regard to equity capital, in the context of a public-private partnership or other innovative solutions such as those that have been mentioned?

[Greg Clark]

I am grateful to my hon. Friend for that. As I said to colleagues, we should not allow any ideology to influence these decisions, but he is right to draw attention to the accounting officer’s opinion and advice on this, which includes an assessment that makes it clear that the option of whole or partial nationalisation of the company, temporary or permanent, does not change the assessment of legality. The reason for that is that it is a question not of the ownership but of the cash needs of the company. Whether a business is owned in the public sector or the private sector, the test of commerciality has to be met for the Government to put cash in; that applies whichever sector it is in. That is the legal test on which this hinges.

Honda in Swindon

Debate between Greg Clark and Jeremy Lefroy

Tuesday 19th February 2019 Commons Chamber

[Greg Clark]

There are indeed. The context of technological change is common to the motor industry around the world, but as I hope I have made clear, we have the opportunity to be a beneficiary of that change. We cannot be complacent about how competitive the sector is around the world, which means we must do everything we can to give confidence to investors, and that certainly involves agreeing a deal over the next few days that can unleash the optimism that comes from investment up and down the country—investment that I know in many instances is not taking place while people contemplate what our future trading relationship will be.

[Jeremy Lefroy (Stafford) (Con)]

My thoughts are with the workers whose excellent work I saw for myself on a visit to the Swindon plant with the Industry and Parliament Trust last year, and with those at Bridgend and elsewhere—my first job after graduation was as a foreman at Ford in Bridgend. We must not have no deal. Honda’s relationship with the UK car industry goes back much further than the car plant at Swindon to the tie-up with British Leyland and the Rover Group when it was still nationalised. I urge my right hon. Friend to remember that history and to engage with Honda to see in what other innovative ways we can engage with it to the benefit of workers at Swindon and elsewhere, just as the then Government did with Michael Edwardes and British Leyland in the days of the new Rover models.

Oral Answers to Questions

Debate between Greg Clark and Jeremy Lefroy

Tuesday 8th January 2019 Commons Chamber

[Greg Clark]

Advice and support is available to businesses right across the UK, but it remains the case that the best certainty that business can have is to know that the agreement that has been reached with the European Union, which rules out no deal and involves a substantial transition period, will be approved next week in the House of Commons. I hope that the hon. Gentleman will support that.

[Jeremy Lefroy (Stafford) (Con)]

15. What steps his Department has taken to promote youth entrepreneurship.

Leaving the EU: Airbus Risk Assessment

Debate between Greg Clark and Jeremy Lefroy

Monday 25th June 2018 Commons Chamber

[Greg Clark]

I am glad that the hon. Lady refers to the 500 apprenticeships because, as she will acknowledge, the sector has prospered as never before during the last few years, during which we have had a fantastic programme of joint investment in skills and in the technology of the future. That has been this Government’s deliberate policy. Through the industrial strategy, we are taking that forward, and I am determined that we will be able to create markets around the world—including the European Union—for those products to be exported to.

[Jeremy Lefroy (Stafford) (Con)]

I thank my right hon. Friend for his comments and for his support for businesses on all sides that wish to make their views known, because it is important that our constituents’ jobs are protected. Will he adopt the same pragmatic attitude towards his input into the negotiations and encourage that from all sides, including Brussels?

[Greg Clark]

I am grateful to my hon. Friend. If one has the privilege, as I and many of us do, of visiting the shop floors and workforces around the country, one sees how important these jobs are. These are good jobs providing careers and opportunities, as well as decent incomes for workers and their families. It is important that we have that always in mind as we approach these negotiations. If we do, a sensible outcome will, I believe, prevail.

Energy Policy

Debate between Greg Clark and Jeremy Lefroy

Monday 25th June 2018 Commons Chamber

[Greg Clark]

My right hon. Friend the Secretary of State for Wales has been vigorously engaged in making sure that every aspect of the analysis of this project has been conducted, including the impact on the local economy. The hon. Lady is familiar with the figures and the economics of the project, and because she is aware of the proposal she knows of its distance from being value for money, which causes higher bills for her constituents, including intensive energy users such as the steelworks in south Wales, which is something that any responsible Government have to take into account. I think she knows that this has been done in a rigorous way.

[Jeremy Lefroy (Stafford) (Con)]

The question is not simply about cost, although that is important, but about energy security. Tidal lagoons are one of the best and most secure ways, under British control, of ensuring that we generate power for the future. Will the Secretary of State please have a look at this again?

GKN: Proposed Takeover by Melrose

Debate between Greg Clark and Jeremy Lefroy

Tuesday 27th March 2018 Commons Chamber

[Greg Clark]

R&D was one of the important matters that I specified in my letter about which it is in the public interest for commitments and assurances to be given. Commentary has been made on that, and the hon. Lady will want to study what has been said, in particular about Abingdon. The tests for public intervention are long standing, consistent and required by European law, and they relate to financial stability, media plurality and national security. For many years, they have limited the grounds for intervention, which is why it seems right and appropriate, where there are wider issues of concern, that I should use my ability to write to and press the company to be clear about its intentions.

[Jeremy Lefroy (Stafford) (Con)]

What manufacturing industry in the UK needs is long-term, patient investment, as exemplified by companies such as JCB, Rolls-Royce and Toyota—all in the west and east midlands. What we see in this case, however, is a company willing to come in for a few years, make short-term gains and pass back all that money to shareholders, with very little investment, which is not in the long-term interests of the UK economy. I accept that the Secretary of State is limited in what he can do now, but will he take another look at this whole issue and at where we can promote long-term, stable investment in manufacturing? That is precisely not the approach exemplified in this case.

[Greg Clark]

Such long-term commitments and partnerships are important, which is why they were among the concerns I raised with the bidding company, although it is obviously a matter for shareholders to decide. It is fair to observe that GKN has also proposed to make some changes to the ownership of its activities on the automotive side. My hon. Friend is absolutely right about our commitment to the very successful focus of our industrial society on the automotive and aerospace sectors, and I expect the owners of GKN—whether the existing management or an alternative—to maintain that very deep involvement in a very successful set of arrangements.

Oral Answers to Questions

Debate between Greg Clark and Jeremy Lefroy

Tuesday 14th March 2017 Commons Chamber

[Greg Clark]

Making ourselves attractive as a country to the workforce and making sure that we are the best place to operate a business and to work is an important theme of the strategy. I look forward to the hon. Lady’s contribution to the consultation, and if that issue does not have the emphasis that she thinks it needs, we will have the opportunity to address that.

[Jeremy Lefroy (Stafford) (Con)]

T6. I thank the Secretary of State for his support for the midlands engine. In Stafford, we build them. Last week I had the honour of opening the technical training centre at Perkins’ large engine plant in Stafford. Does he agree that that shows just how important it is for businesses to be proactive in putting together the facilities needed for apprentices and taking on more of them, as Perkins is?

Vauxhall/Opel: Proposed Takeover

Debate between Greg Clark and Jeremy Lefroy

Monday 20th February 2017 Commons Chamber

[Greg Clark]

Like the hon. Lady, I am proud of the performance of the two plants, as well as that of the other plants in our automotive sector. The PSA executives communicated to me that performance is their guide to strategy. The two plants have very effective performance, so I want and expect them to be major parts of the future of an expanded group, if the transaction proceeds.

[Jeremy Lefroy (Stafford) (Con)]

I welcome my right hon. Friend’s action on this incredibly important issue of retaining the plants at Ellesmere Port and Luton. Most investment in motor manufacturing in this country comes from overseas, with the exception of Aston Martin and Triumph. What is my right hon. Friend doing to encourage British-based investment in motor manufacturing so that we do not always rely on overseas investment?

[Greg Clark]

I am very proud that we attract the world’s best automotive companies and that they see Britain as a place to prosper and succeed, so I am always encouraging that level of investment. Of course, it is not only about the major manufacturers; the supply chain is increasingly important in all advanced manufacturing, including the automotive industry. We have an increasingly good record of attracting small and medium-sized businesses either to locate here from overseas, or to grow from the bottom up. My hon. Friend will know that our industrial strategy makes a great focal point of the opportunity to grow our supply chains.

Hinkley Point C

Debate between Greg Clark and Jeremy Lefroy

Thursday 15th September 2016 Commons Chamber

[Greg Clark]

I understand my hon. Friend’s point. I hope that he will concede that I have come to the House at the earliest opportunity. Such decisions have consequences for financial markets, and it is the norm to disclose such decisions at the opening of the markets. He can rest assured—I am sure that he will accept this—that my sense of responsibility to the House is clear in my mind, but the conduct of business must be orderly when it comes to the implications for financial markets.

[Jeremy Lefroy (Stafford) (Con)]

I welcome the announcement about the golden share and support what my right hon. Friend the Member for Wokingham (John Redwood) said about future British investment, perhaps through a UK investment bank or UK pension funds, being important. Will the Secretary of State confirm where the currency risk will arise, in particular, for future subsidy payments out of the contracts for difference?

[Greg Clark]

The contract is expressed in pounds. The construction risk is entirely with the investors.