Oral Answers to Questions
Debate between Guy Opperman and Lord Willetts(12 years, 8 months ago)
Commons ChamberRead Full debate Read Hansard Text
Guy Opperman (Hexham) (Con)
T7. Does the Minister agree that Newcastle upon Tyne, with its great industrial heritage, will be the ideal location for a university technical college, which will provide exactly the sort of technical education that can cure youth unemployment and help meet the needs of modern manufacturing and engineering employers?
Mr Willetts
The coalition is keen to see more of these university technical colleges. They are an excellent way of linking universities and schools, and I am sure that his eloquent bid will have been noted.
UK-India Trade
Debate between Guy Opperman and Lord Willetts(12 years, 10 months ago)
Westminster HallRead Full debate Read Hansard Text
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The Minister for Universities and Science (Mr David Willetts)
This has been an excellent debate. I congratulate my hon. Friend the Member for Wimbledon (Stephen Hammond) on calling for it and on opening it so effectively.
The Government absolutely recognise that trade between Britain and India is vital as we seek to rebuild and rebalance our economy at home. We are committed to ensuring both that the UK remains a top destination for foreign direct investment and that our businesses engage properly with high-growth emerging markets. As several hon. Members have said, there can be no better example of a high-growth emerging market than India. My hon. Friend put it particularly well when he said that we should not be complacent, because contracts are not won but worked for. We should all remember that motto.
The British Government are therefore committed to making our relationship with India broader and deeper, and that certainly includes the trade area. That commitment was clear in the Prime Minister’s decision that his first major overseas visit should be to India, with a delegation of Ministers, including me, and senior business figures. The Prime Minister has made it clear to us that that was not a one-off but part of a process of continuing engagement with India. Indeed, I have been back on two further missions since then involving trade, universities and research.
I welcome the intervention by my hon. Friend the Member for Romsey and Southampton North (Caroline Nokes). She mentioned the Solent India Business Network and the university of Southampton. I can report to the House that I took with me a gift for my Indian opposite number. I remembered that the university of Southampton, as my hon. Friend knows, holds the archive of the Mountbatten papers, including the papers from the negotiations with Gandhi on Indian independence. We politicians are sometimes accused of writing our ideas on the backs of envelopes. The archive includes documents from the period when Gandhi was negotiating with Mountbatten. He had made a vow of silence, so he was not speaking directly to Mountbatten, and I can report that he did indeed write his proposal for the future of India on the back of used envelopes. I took copies to give to my Indian opposite number.
We have historic ties, but this debate has rightly focused on our trade relationship. The British Government are clear that we aim to double trade with India by 2015. That is our objective. To achieve it, we must offer more help to small and medium-sized enterprises to export. We still have an insufficient number of SMEs in the export business. We must help our companies win major, high-value contracts. We need to attract much-needed inward investment, which builds trade links, and to build strategic relationships with key companies. The hon. Member for Solihull (Lorely Burt) made an effective case. We recognise fully that Jaguar Land Rover is a classic example of a key company.
We focus on India not just because we understand its high growth prospects in the abstract but because we have analysed particular sectors where we can see that growth happening. India plans to spend $1 trillion over the next five years on improving its infrastructure. That is a market. It is expected to be the world’s third largest car market by 2020; that is another crucial opportunity. Its health care market is expected to triple to $150 billion by 2017.
Several hon. Members have mentioned my particular responsibilities. The Indian Government have plans for 40 million extra university places and for 500 million more people to receive vocational training over the next 12 years. When I have had discussions with Kapil Sibal and other Indian Ministers, they have recognised fully that to achieve those extraordinary ambitions, they must work with others. Who better to help them than Britain, given our strengths in education and vocational training?
Mr Willetts
I am terribly sorry, but I have only five minutes left, and I have several other issues to touch on.
One issue raised by several Members involves the problems that a number of UK companies have experienced obtaining payment for goods and services provided during the Commonwealth games. Some UK companies, most notably SIS LIVE, are alleged to have been involved in instances of bribery, which they have strenuously denied. Several hon. Members have vouched for those companies in this debate. All those cases are being examined by the Indian Central Bureau of Investigation. Until that work is complete, we doubt that any resolution of the matter is possible. All the Commonwealth games cases have been handed over to a group of Indian Ministers, who will decide what needs to be done.
I assure hon. Members who have raised the matter that the British Government are energetically pursuing the concerns of British companies with the Indian Government. The high commissioner met the Indian Secretary for Home Affairs and followed up with a letter. Our Prime Minister has written to Prime Minister Singh about the outstanding payments, and Ministers and officials are working to resolve the outstanding issues. My right hon. Friend the Secretary of State for Culture, Olympics, Media and Sport has written to his Indian counterpart, the Minister for Sport, requesting that the investigation be expedited as quickly as possible. We remain very much engaged with the issue.
Manufacturing
Debate between Guy Opperman and Lord Willetts(12 years, 12 months ago)
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Guy Opperman
Of course, it could be a woman—I accept that entirely. I was using the term generically. Such a Minister could provide co-ordinated responses to the concerns of manufacturing businesses. Having such a Minister would send out a message that this really matters. I challenge anyone to say that that is not a good idea. It is something that successive Governments have consistently failed to do, and I do not blame previous Governments for that, but doing it would send out a positive message for the future.
The second issue I want to address is banking and the chronic deficit that every Member of the House must be facing in their constituency—a lack of bank financing for businesses. Every one of us, in every constituency surgery, will regularly have businesses coming to us and saying, “I cannot get the funding I need,” or “I cannot get the borrowing I used to have.” It is a chronic problem. Much good work is done by business angels and credit unions—those hon. Members who attended the debate on credit unions yesterday will know that very positive steps were discussed there—but when it comes to bank finance, the system of the main banks is clearly logjammed. What can we do about that?
Currently, to set up a bank one needs £110 million-worth of assets—of cash, effectively—or the Financial Services Authority will not allow it. If the FSA relaxed that rule or changed the figure to £10 million, for example, then prominent local businessmen or businesses in a local community could set up a local bank.
Traditionally, the problem has always been that banks go bust, as they did in the 1920s and ’30s, because they over-borrow and over-lend in effect. If there were a restriction such that they could not exceed the money held on deposit with the Bank of England, the only loss that could be sustained would be the funds in that bank. The effect would be true localism. Someone could set up the bank of Hexham—or, in the Minister’s case, the bank of Bognor—and that bank would be specifically focused on providing small and medium-sized enterprise lending to local businesses.
The Minister for Universities and Science (Mr David Willetts)
In my case, it might be the bank of Havant, rather than the bank of Bognor.
Guy Opperman
There could be competition throughout the region. That would not be difficult. Would it not be great if we had some competition among local banks?
The Minister for Universities and Science (Mr David Willetts)
It gives me great pleasure to respond to the debate. I congratulate the hon. Members who tabled and secured the debate: my hon. Friend the Member for Hexham (Guy Opperman) who began with an excellent speech, my hon. Friend the Member for Warwick and Leamington (Chris White) and the hon. Members for Huddersfield (Mr Sheerman) and for Burnley (Gordon Birtwistle).
This is a very important debate, and I welcome the fact there has been very little partisanship. There have been a lot of shared themes, which I hope to touch on in my remarks. Perhaps the main difference is almost a temperamental one, between the people who take a more optimistic view and those who take a more pessimistic view. I am certainly with the optimists. We can be proud of the revival in our manufacturing sector that is already under way.
Instead of drawing attention to the overall statistics, perhaps I can reflect on the announcements that we have had this week, which tell us what is going on. Today, the Prime Minister has been able to welcome Toyota’s plans to build its new generation family-sized hatchback at its UK factory in Burnaston near Derby during his visit there. That investment of £100 million will secure many jobs. In addition, Airbus has today announced 200 extra engineering jobs at Feltham, and Nestlé has announced a £110 million investment at its Tutbury plant, which will involve 300 extra jobs. Those are today’s announcements. Yesterday, Coca-Cola announced a £50 million investment in a new bottling facility at Wakefield and other investments as well.
If one considers the build-up of announcements, there is clearly the sense that a revival is under way in our manufacturing industry. It has been very encouraging to hear from hon. Members on both sides of the House about the strong support that there is for manufacturing. There is a recognition that the future of our economy must include manufacturing, just as our proud history has manufacturing at its heart.
My hon. Friend the Member for Hexham made an excellent opening speech, and I shall briefly respond to two themes that he touched on, particularly as they were picked up by other hon. Members. He called for there to be a Minister for manufacturing. Let me make the role of the Minister of State, Department for Business, Innovation and Skills, my hon. Friend the Member for Hertford and Stortford (Mr Prisk), clear. Incidentally, he is not here to respond to the debate because Ministers are fanning out across the country today as a result of all the excellent news on manufacturing. The Prime Minister is in one part of the country, my hon. Friend the Member for Hertford and Stortford is elsewhere and, of course, the Secretary of State is somewhere else.
My hon. Friend the Member for Hertford and Stortford, who deals with business and enterprise, has the following responsibilities: aerospace, the defence sectors, the automotive sector, professional and business services and the delivery of the advanced manufacturing growth review. In addition, he is the architect of our next manufacturing summit in Bristol, and he has overall responsibility for manufacturing and materials. Although he does not have the word “manufacturing” in his ministerial title, he is for all practical purposes our Minister for manufacturing. Several Members have asked: who is the go-to Minister? He is the go-to Minister for manufacturing and he does an excellent job. Of course, the Secretary of State also has a clear personal commitment to manufacturing. My view, therefore, is that there is a key Minister in the Government with that responsibility and a Secretary of State with very strong personal commitment to the subject. We are all, as Ministers in BIS, working on this and trying to contribute in our different ways and with our different responsibilities, whether they be for universities, research, science, high tech, skills or apprenticeships.
A second question put by my hon. Friend the Member for Hexham concerned access to bank finance. That subject is raised regularly in the House, as I often notice in BIS questions. His particular point, which has been pursued by several Members on both sides of the House, is about whether we can do more to enable new banks, especially new small banks, to set up. One of the key recommendations in the report by the Independent Commission on Banking was that we should look at barriers to entry, which are too high. It should be easier for new entrants to come in and set up banks, and we are now pursuing that recommendation. There has already been a round table meeting with challenger banks—the banks that want to come in and do more. The Chancellor himself touched on the subject in a major speech on the subject on 3 October.
Given my responsibilities for research, high tech and science, I have been frustrated by the time it has taken to establish Silicon Valley bank, which originates, as its name implies, in silicon valley and is a specialist in venture debt that lends to start-up businesses at early stages. I was told that it took it a year just to assemble the paperwork that was necessary for the Financial Services Authority approvals process, and another year for the FSA to consider that paperwork. We in BIS, and the Government as a whole, with the Treasury in the lead, are absolutely persuaded by the argument that we need to think about whether we have ended up with a system that has barriers to entry that are too high. That is why we are looking to see how we can pursue the recommendations of the Independent Commission on Banking.
Guy Opperman
Would the Minister be interested in facilitating a meeting with the FSA and the Treasury? While I have no doubt that BIS may be fascinated by the idea of local banks and better business banking, the Treasury and the FSA seem a little more reluctant to oil the wheels, if that is the right term.