EU Referendum: UK Steel Industry
Debate between Iain Wright and Anna Soubry(8 years, 5 months ago)
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Anna Soubry
I do not know about the actual figures, but we have looked at that with considerable care, and we will continue to do so. A special unit has been set up, and—if I can put it this way—will be beefed up by the incoming Prime Minister. Those are exactly the sort of issues and complexities that we are going to have to deal with.
Let me make it very clear that, until we actually leave the EU, we are a member of the EU. I think some people think we have left. Well, we have not left. We are still subject to all its rules and regulations—for example, the state aid rules—and we have access to the single market. Those things are incredibly important throughout the process that will now unfold. While we remain a member of the EU, we are subject to the state aid rules, the trade defence measures and so on. What replaces those rules—we may remain subject to them in return for market access—is for the new Prime Minister and her team to negotiate. Whatever my role is—I may end up on the Back Benches—[Hon. Members: “No!”] The worst nightmare of the hon. Member for Hartlepool (Mr Wright), who has been my hon. Friend on many occasions, is that I return to the Back Benches and then end up on his Select Committee.
Anna Soubry
I think we are all becoming demob happy. We are looking forward to next week when we will have a short break, but we will all continue, as we always do, to work for our constituents in the so-called recess. I think that other people sometimes forget that.
BHS
Debate between Iain Wright and Anna Soubry
Anna Soubry
I could not agree more with my hon. Friend, and I thank him as ever for his valuable contribution. The reason I am choosing my words today with some care is not that I do not have my own views, based on what I have read, but it is important that we allow these investigations to take place before we rush to judgment. However, it is fair and right to say that, on the basis of what we have read in the newspapers, nobody could be in any way content with some of the allegations that have been made. They are very serious and my hon. Friend rightly makes the point that in effect that damages the reputation of all businesses, and that cannot be right either.
Mr Iain Wright (Hartlepool) (Lab)
It is clear from the woeful evidence given to our inquiry by Lord Grabiner, chairman of Arcadia, that effective corporate governance in BHS was almost entirely absent—something that prompted the director general of the Institute of Directors to state in a letter to my right hon. Friend the Member for Birkenhead (Frank Field) and me on Friday that it
“represents a blight on the reputation of British business,”
adding that
“if the Chairman of Arcadia is not properly looked at, it could set an appalling precedent for future sales of failing businesses.”
Has the Minister raised BHS with the Financial Reporting Council, which, six weeks after the business went into administration, has still not committed to investigating the matter? Will the Government consider altering the FRC’s remit to ensure that directors and their failings are brought under its jurisdiction?
Anna Soubry
I pay tribute to the great work that the hon. Gentleman and indeed his BIS Committee do. I know that he is already conducting—I think, successfully—an inquiry into the working practices of one business, and he has successfully acquired attendance at the Select Committee. He raises important points, and I will write to him on the specific questions he raises, because I will need to make further inquiries about them. I reiterate that we must await the outcome of full investigations, so that we know all the facts, but he can be absolutely sure that we take these matters extremely seriously and that we will not have the good name of British businesses besmirched by the wrongdoings of others.
Steel Industry
Debate between Iain Wright and Anna SoubryWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
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BHS
Debate between Iain Wright and Anna Soubry
Anna Soubry
As I said, the Pensions Regulator is looking at the many concerns that hon. Members on both sides of the House are raising, and the PPF is now involved. My hon. Friend makes important points. Unfortunately, some companies find themselves with very large pension fund deficits, which should concern us all.
Mr Iain Wright (Hartlepool) (Lab)
First, may I thank the Minister for spending this morning at the Tata Steel facility in Hartlepool? I was grateful for her time.
On BHS, a theme seems to be emerging across the House. Does the Minister agree that it cannot possibly be right that Sir Philip Green, as the previous owner, loaded the company with debt, did not invest in the business and paid his wife over £400 million in dividends via the tax haven of Monaco? How an owner runs a business is up to them, but when 11,000 jobs are under threat and the taxpayer might face substantial pension liabilities, something is gravely wrong. Will the Minister consider changing company legislation on directors’ duties to ensure that former owners cannot simply walk away from the fallout, having taken the fast buck, and that substantial, long-term value creation is prioritised over short-term value extraction?
Anna Soubry
We have to make it clear that allegations of impropriety by anybody holding a directorship are taken very seriously and that serious consequences can follow an investigation—nobody is above that—and I am confident that any allegations will be investigated. As we know, the Pensions Regulator is already looking into these matters.
Finally, I know it is a bit off subject but I want to respond to the hon. Gentleman’s first point. I am sorry we had to cut short our trip to Hartlepool, but it was an excellent visit, and, as ever, I found excellent management, an excellent workforce and excellent steel products made with British steel.
UK Steel Industry
Debate between Iain Wright and Anna Soubry(8 years, 10 months ago)
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Mr Wright
My hon. Friend has been a fantastic champion of the steel industry generally, and particularly in fighting for SSI and for it to be retained. She will know that EU state aid rules are often a smokescreen for lack of political will. An excellent programme on BBC 1 this week, “Inside Out North East and Cumbria”, looked at the plant closures here and compared them with how the Italian Government could keep steel plants open. There is a lack of political will, because that could have been done. SSI could have been at least mothballed.
Anna Soubry
Yes, I was. Does the hon. Gentleman agree that the Italian steel plant was not a blast furnace? The blast furnace had been mothballed.
Mr Wright
I will come to mothballing of blast furnaces, because that is another key finding by the BIS Committee. We found that job losses, plant closures and factors that have worsened since we published our report just before Christmas mean that the prospect of any future growth in the steel sector had been irrevocably damaged. We regretted that Ministers were unable to prioritise preserving existing capability and retaining skills in the steel sector in particular.
The Minister talks about a blast furnace. The blast furnace at Redcar was one of the most efficient in Europe. My hon. Friend the Member for Middlesbrough South and East Cleveland (Tom Blenkinsop) talks about it as having been second only to Dunkirk, and he knows more about steel than anyone else I know. However, it has now been lost forever to the British manufacturing base. Why was it not considered for mothballing rather than cold closure? The cost of cleaning up the site is destined to be in the region of half a billion pounds, and that is likely to fall to the taxpayer. It is an absolute disgrace, and our manufacturing base has been forever undermined as a result.
Mr Wright
Despite the fact that my hon. Friend says that his specialist subject would be blast furnaces, he is still a great colleague to go for a pint with. He makes a very important point, and I do worry about this. It is not just this Government but successive Governments who have placed short-term cost considerations over long-term value for our economy and society. That is incredibly important. For an industry that has been deemed to be strategic by the Minister, who has been a champion of this sector, the process seems to be one of chaotic yet managed decline. Can the Minister outline how much further she thinks the British steel industry will slide and what, for a strategic industrial sector such as steel, the right level of employment, capability and production is, both now and in the future?
We on the Select Committee acknowledged that the Government had recently woken up to the crisis and begun to take action, but today, exactly a month after the publication of our report and over three months after the closure of SSI and the steel summit on 16 October, no concrete steps have been taken. I am not suggesting that a silver bullet—or a steel bullet—could be fired to withstand the massive global forces affecting world steel demand and production, but swift action on the five asks from the steel industry could have provided a buffer for British-based steelmaking plants. I therefore have specific questions for the Minister with regard to some of the five asks. Can she outline how much extra cash has been provided to steel firms since the steel summit, in the light of the decision made on energy-intensive industries compensation? If steel is a strategic industry, why can a special exemption not be given for steel manufacturers in relation to business rates to retain some capacity?
Mr Wright
If the Minister will allow me to continue, why can investment in plant and machinery not be exempt for an uplift in valuation? On the issue of procurement, the Minister issued new guidelines in the immediate aftermath of the steel summit. Three months on, can she outline the value of the contracts that have been awarded to British-based steel firms as a result of those changes? Has work actually been put into steel plants as a result? What has the Minister done to talk to sectoral groups, such as the Aerospace Growth Partnership and the Automotive Council, to maximise the proportion of British steel used in successful industrial sectors such as aerospace and automotives? I am very pleased to see a Sunderland MP, my hon. Friend the Member for Sunderland Central (Julie Elliott), with us today. We on the Select Committee were told during our inquiry that Nissan in Sunderland—a great example of cost-efficient car production anywhere in Europe, if not the world—uses 75% British-sourced steel in the production of its Juke model. If Nissan can do that, why cannot others? What is the Minister doing to cajole others within supply chains?
Mr Wright
No, talk to them in a strategic manner rather than force them.
When it comes to moving research and development into new technologies, renewables are a great way to secure a real, viable UK steel industry for the future, yet the Government seem hell-bent on ensuring that we cannot do anything. One example is carbon capture and storage. Real help could have been provided, certainly for steel on Teesside, yet that has not been provided. That is a shame. What can the Minister do to ensure real co-ordination for what is meant to be a strategic industry?
I want to finish on constituency matters. This week in Hartlepool, 62 job losses were confirmed at Tata’s steel plant. That is on top of the 80 jobs lost at the end of October, when Caparo Industries’ Hartlepool forging plant went into administration. Although Caparo, the national group, has been sold, the factory in my constituency remains closed. Unemployment in Hartlepool rose in December, and the jobless rate is two and a half times the national average. In Hartlepool, we simply cannot afford to lose these jobs and these skills from our strong manufacturing base.
I understand that the redundancies affecting Hartlepool are not on the same scale as those affecting Redcar and Port Talbot, but as I have just outlined to the House, the employment situation in Hartlepool is precarious. Given the real problem with the global price of oil going down to something like $28 a barrel and given that the Tata Steel plant in Hartlepool is a provider, in the supply chain, to the oil and gas industry, we are going to see even more problems, so what is the Minister doing to be alert to these warning signs in order to retain capacity? I have previously written to her, asking whether the same level of support could be provided to Hartlepool workers affected by Caparo’s closure as was the case with SSI. The Minister replied that that could not be granted, but I ask now, in the light of this week’s redundancies affecting Hartlepool, whether that decision by the Minister can be looked at again.
Anna Soubry
In a moment.
I want to put something on record. I do not know whether it is significant, but my great-grandfather worked as a cutler in Sheffield. He then became a teacher, and then music teacher. In fact, he was knighted, but those are matters that do not concern us.
Anna Soubry
Just like the shadow Minister, apparently, although not if he wants a future in his party, if he holds a pro-Trident view and is at odds with his leader on many other matters.
Anna Soubry
I can do better than that, and I intend to.
My grandmother came from south Wales. We do not know much about her history, but we believe that her family also worked in the steelworks. Many of us can draw on our family experience, which is perhaps why I have a passion for securing the future of the steel industry, as does my Prime Minister. When I was appointed in May, one of the things that he asked me to do, apart from effectively being the Cabinet representative for small businesses, was to help to support and assist the steel industry in difficult times.
Trade, Exports, Innovation and Productivity
Debate between Iain Wright and Anna Soubry(8 years, 11 months ago)
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Mr Wright
The hon. Gentleman is right. Given that we will fall spectacularly short of the target, how will the Government revise their policy on trade and exports to ensure that we do not miss it by 35%, but get as close to £1 trillion as possible? Is UKTI sufficiently proactive about working with British firms to identify and navigate foreign markets? It has been affected by turbulence, with cuts in funding and disruption at the top of its management. Do the Government think that it is fit for purpose?
Anna Soubry
To answer that directly, I think there is much reform that can be achieved. Does the hon. Gentleman agree that the hon. Member for East Lothian (George Kerevan) was wrong when he said that the former CEO of UKTI had resigned because of the budget cuts, and that Mr Jermey moved to the Foreign and Commonwealth Office to take up a new appointment as the international counter-extremism co-ordinator? Does the hon. Gentleman agree that the new head of UKTI was appointed before there was any change in the funding? Will he confirm that the amount that UKTI received from BIS in 2014-15 was £264.1 million and for 2015-16 is £338 million?
Mr Wright
It is important that the right hon. Lady clarifies the reasons for the personnel changes.
The hon. Member for The Cotswolds (Geoffrey Clifton-Brown), who is no longer in the Chamber, spoke about benchmarking UKTI against other comparable trade organisations around the world to see whether we are getting value for money for the taxpayer and whether sufficient money is being provided. The Select Committee’s inquiry can look at that.
This is not an academic exercise. In the past a trade deficit was so significant that it could bring down a Government. I am far too young to remember the 1970 election. I was not born then, but I have read about it in history. Some of those present may have been in the Chamber talking about it. That is an example of how important trade performance used to be. In the modern age, and in news reporting for the 21st century, it seems to have lost that impact. We should return to highlighting the importance of trade deficits for the general prosperity of this country. Poor performance in overseas markets acts as a drag on competitiveness, productivity and rising living standards for all. The Government should focus more attention on that and demonstrate how they will change track to achieve their targets. The whole House would be behind the Government if the Minister could demonstrate that tonight.
Oral Answers to Questions
Debate between Iain Wright and Anna Soubry(9 years ago)
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Anna Soubry
Yes indeed, and I pay tribute to my hon. Friend and all Members of Parliament affected by this issue for their great work. I will go to that area on Tuesday, and I hope to visit Carlisle as well as Cockermouth, Kendal and Keswick if possible. I am delighted that we were able to secure £5 million funding for all businesses affected by the flooding, which will make a huge improvement. We have done that very quickly, and the money will be available quickly and—most importantly—in time for Christmas, so that all those businesses and shops can be open for businesses.
Mr Iain Wright (Hartlepool) (Lab)
The Secretary of State mentioned simplifying and clarifying the business environment in this country, as well as paring back bureaucracy and identifying a further £10 billion reduction in red tape over this Parliament. Why did the autumn statement propose that small businesses should file tax returns four times a year, rather than annually? Will the Secretary of State outline how that helps small businesses to reduce their costs and burdens? To keep the “Star Wars” quotes going, “I’ve got a bad feeling about this.”
Redcar Coke Ovens
Debate between Iain Wright and Anna Soubry(9 years, 2 months ago)
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Anna Soubry
It is not a secret that we have a really serious crisis in the British steel industry. We identified that when we had our very good Back-Bench debate a few weeks ago. We are holding the steel summit precisely for the reasons my hon. Friend has given. We are very keen to talk to everybody, to explore all options and to do everything we can. As the Prime Minister said, steel is a vital industry. We are determined to continue to do everything we can to support it.
Mr Iain Wright (Hartlepool) (Lab)
The SSI closure is a tragedy for Redcar, but yesterday’s announcement has repercussions far beyond the boundaries of that town. The snuffing out of the blast furnace and coke works puts a pillow over and suffocates the entire UK steel industry and a large part of the manufacturing supply chain. It will no doubt contribute to that sector’s death. What is the Minister doing not just to retrain staff but to maintain and preserve this efficient industrial asset, maintaining and preserving that capability and knowledge to ensure that competitiveness throughout our manufacturing and supply chain sector is not lost forever?
Anna Soubry
I absolutely agree with the hon. Gentleman. I absolutely know and recognise the importance of the manufacturing sector. I have already used the words the Prime Minister used in recognition of the vital part that steel plays in our manufacturing, and indeed in the country’s, whole industrial base. We absolutely want to support it. That is one of the reasons why we are having the summit on Friday. It is absolutely understood and accepted that it would be wrong to lose steel—the manufacturing, rolling, pressing and everything else of steel in this country—but we are where we are. At the moment, we have gross overcapacity. That is the tragedy, as prices continue to fall.
UK Steel Industry
Debate between Iain Wright and Anna Soubry(9 years, 5 months ago)
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The Minister for Small Business, Industry and Enterprise (Anna Soubry)
It is a pleasure to serve under your chairmanship, Mr Chope. I congratulate the hon. Member for Middlesbrough South and East Cleveland (Tom Blenkinsop) on securing the debate. If there was a criticism to make, it would be that it is unfortunate that it is only a 30-minute debate. If anyone is interested in my views on this, I think it ought to be a 90-minute debate, and I would have it in the main Chamber.
It is important that we discuss the problems and difficulties that face our steel industry. I am particularly interested in looking at solutions. I want people to come forward with ideas about how we solve the many problems that we know our steel industry faces. There is no debate; we absolutely agree about the value of having a good, strong British steel industry for all the reasons the hon. Gentleman identifies.
It is right to say that we agree on the problems. We know that we have huge overproduction across the world and that that has been a real challenge for the British steel industry. We also know that there has been a marked reduction in demand. We can discuss and debate why that might be, but the harsh reality is that that reduction has taken place. I am confident, given the economic success that we have had, that demand will rise in this country. Unfortunately our economic success has not been reflected across the globe, but there will be an upturn, which is why it is important to keep steady. It will come good, even though we have overproduction, because demand will rise.
We also agree that we have a problem with the cost of energy. The steel industry is a very high consumer of electricity. We have overly high electricity prices for our industries, particularly the electricity-intensive industries, that are so heavily reliant. We call them EIIs in the Department for Business, Innovation and Skills, and the hon. Gentleman and others will be familiar with them. The cost of electricity is a serious problem for our steel industry. We must look at that, but when we do so we must understand that someone would have to pick up the bill if we were to make a move on costs to EIIs, and that may not be an attractive proposition. However, I completely understand the burden the current electricity pricing system places on EIIs—I get it.
The other matter, which was raised by the hon. Member for Aberavon (Stephen Kinnock), is business rates. I know that concerns the hon. Member for Hartlepool (Mr Wright) as well, because he was nodding with great vigour from a sedentary position, and rightly so. It is a problem. It is hugely ironic, as the hon. Member for Aberavon said, that in Port Talbot people invest huge amounts of money and bizarrely get clobbered for doing the right thing by the huge rise in business rates on the other side. Sheffield Forgemasters International in Sheffield is paying £1 million a year in business rates.
As we all know, the difficulty is that if we were to do something about business rates for our steel industry, people would ask: why not do so for all the other industries? They would all be queuing up. We are reviewing business rates. We want to listen to everyone, which is why I am happy to work with the new Chair of the Select Committee on Business, Innovation and Skills—I congratulate the hon. Member for Hartlepool on his election. We know we must do something about business rates. I want us to take a radical approach.
Mr Iain Wright
Those who were Members of the last Parliament will know that the new Minister is a breath of fresh air when it comes to passion for and commitment to the steel industry. In the last Parliament, the Government were working with industry to publish a UK metals strategy. Can she update the House on that work? Is the strategy ready for publication and consideration by the House?
Anna Soubry
I have some words on that. I have abandoned my speech, which will get me into terrible trouble with my officials, but I will read the next bit out rather than ad lib, because then I know it will be right.
I am pleased that the metals sector, including the steel industry, is developing a new national metals strategy. That has been facilitated through the Metals Forum, a grouping of 12 trade associations, including UK Steel, with which BIS has regular dialogue. The publication of the strategy will bring metals into line with other important foundation sectors, such as electronics and chemicals, which have led and developed their own strategies. We have been pleased to be able to fund some of the work, both for the strategy itself and for the initial scoping study, and we have seen some of the output that has emerged, which is of high quality. The public document is nearing completion and is likely to be published in early autumn. We expect it to provide a framework for our work with this sector in the future.
Hopefully that answers the hon. Gentleman’s question. It may not give the detail, but that document will be published in early autumn. I will just put on the record that I am, of course, more than happy to meet the groups that have been established to discuss how we can help our steel industry.
Mr Chope, how long have I got? Am I to go to 11.30 am, or are other Members able to make speeches? I think the answer is no. I am thinking of the hon. Member for Llanelli (Nia Griffith), who is on the Opposition Front Bench. Does she get a speech?
Carcraft
Debate between Iain Wright and Anna Soubry(9 years, 6 months ago)
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The Minister for Small Business, Industry and Enterprise (Anna Soubry)
It is a pleasure, as ever, to serve under your chairmanship, Mr Williams. I congratulate the hon. Member for Heywood and Middleton (Liz McInnes) on securing the debate. It is absolutely right and important that we debate these matters. This is an awful situation, and our heart has to go out not just to the employees who have lost their jobs, but to their families. Many of these workers will have families, who will also suffer as a result of the redundancies. Few things are more unsettling and unpleasant than losing one’s job, especially when it is through no fault of one’s own.
There are a number of points of concern in this case and I will deal with all of them, but first, on a lighter note, I should say that I am looking forward to doing battle—and working too—with the hon. Member for Hartlepool (Mr Wright). I wish everybody in his family a happy birthday, although I should tell him that the traditional way for people to do that is to send a card or make a phone call—he knows what I mean. I am sure his family will be celebrating at various levels this evening.
Now to serious matters. Carcraft employed 474 people before the redundancies, including 152 in Rochdale, where the head office was located. Some 407 employees’ redundancy claims are continuing. Carcraft had 10 sites across England and Wales at the time of administration, and a further site in Merseyside which closed in March. I can assure everyone that the Government are focusing on supporting those affected so that they can find new jobs, and we are paying eligible employees redundancy pay.
It is alleged that Carcraft sold cars for cash or on credit that have not been delivered and that extended warranties were also mis-sold. Those are serious allegations. There are also concerns about the ongoing validity of a number of warranties. I certainly take those matters seriously. Given everything that has been said today, as well as the activities of local Members of Parliament, who are clearly taking a keen interest, I am confident that if there is any allegation of wrongdoing, the relevant authorities will be properly informed and the police will become involved if necessary. I should make it absolutely clear that if it appears there has been wrongdoing, there will be full inquiries, and if there has been wrongdoing, people will be brought to justice in some way or another.
A number of hon. Members have former Carcraft employees in their constituency. The hon. Member for Stretford and Urmston (Kate Green), who made an interesting and valid intervention, has 15—that is the lowest number, according to the figures I have been given. The hon. Member for Heywood and Middleton has 152 constituents who have lost their jobs. The right hon. Member for Enfield North (Joan Ryan) has 37 constituents who have been affected. I mention that because those Members contributed to the debate.
Let me deal now with the customers. Any administration affects the customers of the failing business. Many consumers had continuing loans or direct debits with Carcraft, and they will of course be worried about where that leaves them. Some consumers will have cars or services that they have partly paid for, and they will be wondering what rights they now have, given all that has occurred. The advice is clear: they should contact the administrator—we have heard that Grant Thornton has been appointed. They may also wish to review their position with Citizens Advice or other advisers. I understand that some loans taken out by customers with Carcraft’s finance arm, All in One Finance, are now owned by another finance company. The Government—that is, my officials—have spoken to the administrators, who have informed us that the majority of straightforward hire purchase agreements on Carcraft cars were provided by third party finance companies. Those customers are being advised to contact their provider directly about repayment.
Anna Soubry
It would be absolutely wrong of me to give any advice, because I do not know the answer to that question. I can make full inquiries and write to the hon. Gentleman, but I do not know the answer. Some loans were retained by the Carcraft group, and what happens to them will depend on the type of loan that the customer had. I understand that borrowers are being notified about that.
Additionally, as we have heard, Carcraft provided an MOT, servicing, warranty and roadside assistance package known as a “Drive Happy” plan. The administrators are not able to provide for continuation of that service and have informed my officials that they intend to contact all affected customers with such a plan, to make arrangements to reduce monthly payments so that they will no longer be paying for that service. If any consumers are worried about their payments or how services might be affected, they should speak to Citizens Advice or other advisors who can explain their options and give them the quality advice they obviously need.
Hon. Members have raised concerns about directors’ conduct, and there are obvious concerns about the effect of Carcraft’s closure on jobs and the local economy. I will talk briefly about the actions that Government can take if director malpractice is suspected. Whenever a company enters administration, the conduct of its directors is looked into by the administrators. If evidence of unfit conduct is found, a director can be disqualified from acting as a director for between two and 15 years. My officials have been proactive in contacting the administrators to discuss the directors’ conduct in this case; we have already raised the matter with them.
As I set out in my response to the written question of 27 May from the hon. Member for Heywood and Middleton, the Insolvency Service made early contact with the administrators to discuss the circumstances surrounding the closure of Carcraft’s business, including the conduct of the directors. The Insolvency Service takes those matters seriously, as do all Governments. The Government are also talking to the Financial Conduct Authority, which regulates the financial services part of the Carcraft group. If there is cause for concern, it will be identified and investigated and any appropriate action taken, as I have explained. It is too early in the administration of Carcraft to form a view on the directors’ conduct, but I would mention that last year the Insolvency Service disqualified more than 1,200 directors in circumstances where their conduct fell short of the high standards that we expect of them. That of course means that they cannot do such work, which is a genuine punishment and says that their conduct does not entitle them to occupy what is an important role in any business.
As for redundancy payments, one of the hardest-hitting consequences of any insolvency is the risk of job losses and the impact on people’s lives. Although it is little consolation for the nearly 500 staff involved, they can claim certain outstanding payments, including up to eight weeks’ arrears of pay from the Government’s redundancy payments service, which has a maximum £475 a week. To make that happen as quickly as possible, the Government have already set up a dedicated team for former Carcraft employees, and to date 407 people have made use of the service—I am assuming that that is from around England and Wales. Their claims are being processed and moneys owed will be paid out as soon as possible. I want to make it clear that if any hon. Members have a single constituent who is not receiving the money they are owed, as a matter of some urgency they should not hesitate to write to me or to grab hold of me around the parliamentary estate. I take such matters extremely seriously. It is bad enough for someone to lose their job, but then not to have money that is owed to them is completely unacceptable.
Anna Soubry
I am grateful to the right hon. Lady, but that is the way I work. Some hon. Members will know that they can just come up and badger me; I do not have a problem with that, and if necessary I will go and badger whoever needs badgering. I imagine that it is very busy at Grant Thornton at the moment, which may be a reason it has not replied to the right hon. Lady’s request. If there are any problems, I do not have a problem with people coming to me.
We have set up our dedicated team, and that is the right approach. Claims are being processed, and 321 people have received or are about to receive their payment. The Government are in close contact with the administrator to make sure that there are no unnecessary delays in that payment. The redundancy payments service can be contacted either by phone on 0330 33100200 or by email to redundancyclaims@insolvency.gsi.gov.uk.
Where an employer proposes to dismiss as redundant 20 or more people at the same establishment within 90 days or less, the employer has to consult employee representatives about the dismissals and must also notify the Secretary of State of the proposed redundancies. A call for evidence is currently out for comment on what happens where employers are facing an insolvency situation and on how stakeholders think outcomes—forgive me, Mr Williams; I should have changed these words, as I do not like the word “stakeholders”. The question for comment is how anyone with an interest thinks that outcomes—results, in good plain English—might be improved in such circumstances. We want to hear from people. I would urge anyone with suggestions, including hon. Members, to contribute. Responses to that will be considered and next steps will be identified.
I want to talk about the important matter of the support that workers who have been made redundant are being offered by the Government in finding new jobs. We are helping them by ensuring that there is support to help them back into work. My colleagues at the Department for Work and Pensions have made contact with the administrators to advise them of the services available to Carcraft’s former employees. DWP will also support employees through its rapid response service. Depending on each individual’s circumstances, that can include help with CV writing and interview skills, help with identifying transferable skills and skills gaps linked to the local labour market, and training to update skills, learn new ones and gain industry-recognised certification that will improve employability. It all sounds marvellous, but if it is not out there happening in the real world, I would again urge hon. Members to badger me. We would then find out more and contact the responsible officials in the DWP. It sounds great, but it means nothing unless it is actually happening for the people who have lost their jobs.
Although the loss of jobs at Carcraft comes as a severe blow to employees and their families, overall the employment rate in Rochdale has been on the rise since 2011. Rochdale and the Greater Manchester area have also benefited from heavy investment in recent years. I do not really want to get into a party political squabble about all this, but I wanted to give some facts and figures. Two regional growth fund awards have been made to Heywood and Middleton, and that is just some of the £111 million of regional growth fund money that has been allocated to projects in the Greater Manchester area. The Growing Places fund supports key infrastructure projects designed to unlock wider economic growth and create jobs. Greater Manchester benefited from this fund, receiving £37 million.
Greater Manchester’s growth deal, announced on 7 July last year, sets out a £533 million investment programme that will support further economic growth in the area. That investment will go to the life sciences investment fund, creating apprenticeships and maximising skills investment, as well as providing major investment in local infrastructure. The growth deal also brings forward £140 million of additional investment from local partners and the private sector and will create at least 5,000 jobs by 2021. If it does not, I imagine that many hon. Members here will be holding the Government to account, and rightly so.
As well as this investment in the Greater Manchester area, the Government are committed to creating jobs and reducing unemployment across the region. The Government’s long-term economic plan—
Anna Soubry
I know, I just read it out. Do forgive me.
Our brilliant economic plan—in all seriousness—seeks to rebalance growth across the regions. We have the determination to build what is called the northern powerhouse, although I am not sure it should not be called the north of England powerhouse. Creating this powerhouse enables the northern region to reach its potential as a driving force in the UK economy and rightly gives the north a powerful voice. Even I, a representative from a constituency in the east midlands, can say that, and I promise hon. Members that I am not saying it through gritted teeth. This is an exciting new development in the way that we do growth, and I believe that it is welcomed by everybody. We are putting the emphasis on that in the north and, indeed, in all cities.
I saw a presentation on productivity, which we know we have problems with. The evidence is clear that one way to get real growth and improve productivity is to make real investment in our cities and turn them into magnets that attract investment. I was shocked to hear that some rents in great cities such as Glasgow are higher than in parts of Manhattan. We have to sort this all out. Cities are wonderful places and they can be the magnets that attract all the investment, including public money, to bring the growth and the jobs that we all want.
Mr Wright
I was trying to make this point in my speech. City regions are important. Cities are important as drivers for economic prosperity. Rochdale is a good example, relative to Greater Manchester. How do we ensure that the city region approach, with Greater Manchester and particularly the city of Manchester driving forward economic growth, spreads to areas like Rochdale?
Anna Soubry
I will be corrected by Rochdale Members if I am wrong, but in my view they are part of the Greater Manchester conurbation. Rochdale Borough Council is part of the coming together of all the councils. These things only work when everybody comes together. If a few councils do not want it, it is not going to happen. When all local representatives—the chambers of commerce, and borough and district councils as well as city councils—are working together, buying into it, it will work. I cannot imagine that Rochdale Borough Council would not let its people benefit from the northern powerhouse. It has to be done like that because it cannot be imposed by Government. It has to be agreed and driven by local government. That is what has happened in the north and around Manchester.
There are some PPI claims against Carcraft and those are likely to be an unsecured claim in administration and can be pursued through the administrator, which is Grant Thornton. I wanted to address that point in particular, although a number of points were raised. I will, of course, write to any hon. Member on any point that I have not answered.
Although the closure of Carcraft will have caused anxiety and worry for all involved, I hope that I have reassured the hon. Member for Heywood and Middleton that assistance has been, and will continue to be, provided both for former employees and for consumers and that the Government’s wider economic policy will help ensure job creation and opportunities in the region.