Oral Answers to Questions

Jesse Norman Excerpts

Tuesday 13th December 2016 Commons Chamber

[Jake Berry (Rossendale and Darwen) (Con)]

1. What steps the Government are taking to protect industries based in (a) East Lancashire and (b) the UK from the potential effect of tariffs after the UK leaves the EU.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Jesse Norman)]

My Department is working closely with the Department for Exiting the EU to understand the impacts that leaving the EU will have on businesses, consumers and other economic actors across the UK, including in east Lancashire. As the Prime Minister has said, we will work hard to get the best deal for Britain.

[Jake Berry]

Although not quite as eye-catching as the motor industry, the construction products, furniture-making and chemical industries, represented by Crown Paints, J & J Ormerod and others in my constituency, employ more people. Will my hon. Friend ensure that these strategic industries to east Lancashire can trade on no less favourable terms than any other industry following Brexit?

[Jesse Norman]

As my hon. Friend will know, I am closely involved with the construction products sector, and the construction industry in general, through the Construction Leadership Council. It would be premature to comment on any deal to be struck, but he can take it from me that it has my closest attention, as does the future of the construction industry itself.

[Graham Jones (Hyndburn) (Lab)]

As a fellow MP for Rossendale, I echo the comments and concerns about leaving the EU and what the tariff framework would be if there was a hard Brexit. When I visited Simon Jersey, which did the formal wear for our Olympic team, I was told that the cliff-edge tariffs on textiles are between 9% and 12%. This is a real concern. What assurances can the Government give to companies that they will not be taxed out of business through leaving the EU?

[Jesse Norman]

As I have said, it is premature to give any kind of assurance. What is striking, though, is the amount of new investment that has been taking place in this country, irrespective, one might think, of any concerns about Brexit. That includes investments in BAE Systems, Nissan, Jaguar Land Rover, Honda, Associated British Ports and many other large industrial players.

[Mr Steve Baker (Wycombe) (Con)]

Will my hon. Friend explore how World Trade Organisation-compliant tariff drawback mechanisms and inward processing measures can ensure that the objectives of my hon. Friend the Member for Rossendale and Darwen (Jake Berry) are met?

[Jesse Norman]

That is a formidably technically sophisticated question, for which I thank my hon. Friend. I think that it probably lies to be answered between ourselves and the Department for International Trade. We will certainly consider it carefully.

[Mr Speaker]

There are some very clever people in Wycombe, you know.

[Kate Green (Stretford and Urmston) (Lab)]

Food production and food processing is an important part of the north-west economy that is not necessarily susceptible to export beyond the European Union because of different consumer tastes and preferences in the rest of the world. What negotiations are the Government considering or already undertaking to protect this important industry? Can the Minister confirm that specialist negotiators who understand the industry are in place to carry out those negotiations?

[Jesse Norman]

That question is really as much for the Department for Environment, Food and Rural Affairs as it is for us. Nevertheless, it is true that tastes are expanding around the world, and therefore one sees every opportunity for British food producers to expand their world markets in the days to come.

[Philip Davies (Shipley) (Con)]

Given that we have a massive trade deficit with the European Union, surely it would be economic suicide for the EU not to agree a free trade deal with us. However, Civitas has calculated that if it did go down that line, British business would have to pay about £5 billion a year in tariffs under WTO rules to access the EU market, and EU businesses would have to pay about £13 billion in tariffs to access the UK market. Given that, could we not agree to cover all tariffs for British businesses exporting to the EU, so that they do not have to pay anything, and still be quids in?

[Jesse Norman]

Alas, long experience has taught me to distrust some of these speculative estimates of cost and benefit, so I will not comment on that.

[Danny Kinahan (South Antrim) (UUP)]

We are all aware that the cross-border trade between Ireland and Northern Ireland is absolutely vital, and if tariffs are put in place, it could be a complete disaster. Can we please make sure that the Northern Ireland voice is heard and embedded in any negotiations?

[Jesse Norman]

I assure the hon. Gentleman that that question is being taken extremely seriously in my Department. Northern Ireland is an area for which I have a ministerial responsibility. I have met, on several occasions, Northern Ireland Economy Ministers and senior figures in industry there. We will continue to look at this question very closely.

[Adam Afriyie (Windsor) (Con)]

2. What steps his Department is taking to promote science and innovation.

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[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Jesse Norman)]

To turn from Marley’s ghost stalking the Labour Front Bench, the number of businesses in the UK continues to grow: at the start of 2016, there were a record 5.5 million private sector businesses, which is an increase of 97,000 since 2015 and 1 million more than in 2010.

[Bob Blackman]

This weekend, small businesses in my constituency held a Christmas market in Belmont Circle to celebrate the 10th anniversary of Eye 2 Eye opticians, which is doing a brilliant job locally. What more can my hon. Friend do to ensure that small and medium-sized businesses prosper and grow in this country?

[Jesse Norman]

My hon. Friend is right to recognise the central importance of small and medium-sized businesses to our economy. The Government have been supporting that vital sector of our economy through: the extension of small business rate relief; our support for the British Business Bank, which has dealt with more than 51,000 small businesses; the new productivity council, which was announced in the autumn statement; and the new patient capital review.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Given the number of businesses, will the Minister ensure that there is a level playing field so that the level of subsidy for tariffs applied to the motor industry is applied equally across all exporters? Will he publish the total amount of subsidy before 31 March?

[Jesse Norman]

There has been no special deal for Nissan or any other part of the motor industry. Whatever arrangements are made to support different sectors of the UK economy are fully transparent. The general picture is that we are proceeding vigorously and with some care towards a rather attractive destination.

[Lucy Frazer (South East Cambridgeshire) (Con)]

16. Superfast broadband is essential to many small businesses. Does the Minister agree that it is very disappointing that many villages in my constituency of South East Cambridgeshire do not have connectivity and face delay in getting it? Will he join me in encouraging and supporting further connectivity across the region?

[Jesse Norman]

My hon. and learned Friend is right. She will know that I have been a pretty tireless campaigner for superfast broadband, especially in relation to BT and Openreach. I agree with her about the importance of broadband. The autumn statement announced a £1 billion package for fibre and 5G connectivity, prioritising business connections across the UK. That follows the superfast broadband programme, which is due to deliver 91% coverage in South East Cambridgeshire by mid-2017 and a new universal service obligation.

[Bill Esterson (Sefton Central) (Lab)]

Fifty thousand businesses die unnecessarily every year because of late payment. Some £31 billion is owed and small firms alone spend £10 billion chasing outstanding invoices. While the duty to report and the small business commissioner have been much delayed, just 378 of the largest 55,000 businesses have signed up to the prompt payment code. When will the Conservative Government start doing something about the scourge of late payment? Put some teeth into it, so that small businesses can act.

[Jesse Norman]

The hon. Gentleman is right to point the finger squarely at the issue of late payment. It is a serious matter that we will continue to press forward on, but one must see it in the context of the thriving small business economy that I have outlined.

[Nusrat Ghani (Wealden) (Con)]

5. What assessment he has made of trends in the number of women on boards.

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[Emma Reynolds (Wolverhampton North East) (Lab)]

9. What discussions his Department has had with business representatives on the Government’s plans for the UK to leave the EU.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Jesse Norman)]

We have held a wide range of discussions with businesses, their representatives, investors, workers and local leaders in all four home nations. We expect that to continue in the coming months to secure UK interests in any exit negotiations.

[Emma Reynolds]

There is concern among business about a potential cliff edge in March 2019 if we leave the EU and fall back on World Trade Organisation rules and tariffs. Does the Minister agree with the Chancellor, who yesterday told the Treasury Committee that there is

“an emerging view among businesses…that having a longer period to manage the adjustment between where we are now as full members of the European Union and where we get to in the future as a result of the negotiations…would be generally helpful, would”

help smooth the transition and would help to reduce disruption for business?

[Jesse Norman]

It is a tempting invitation to offer a running commentary on our exit arrangements, but since we are not going to do that as a Government, I will not do so now.

[Tom Pursglove (Corby) (Con)]

Last week’s news from Port Talbot was hugely welcomed in steel towns such as Corby. It came about because of constructive work not only in the House, but involving Ministers, the unions, the workforce and the industry. As we move towards reaching final agreement, what role does my hon. Friend see the industry playing in the industrial strategy, and what discussions has he had on that in the EU context?

[Jesse Norman]

That is more a matter for my colleague, my hon. Friend the Member for Uxbridge.

[The Minister for Climate Change and Industry (Mr Nick Hurd)]

Not Uxbridge—my constituency is Ruislip, Northwood and Pinner.

[Jesse Norman]

I stand corrected. We will leave the Foreign Secretary out of this.

The Minister for Climate Change and Industry, the Secretary of State for Business, Energy and Industrial Strategy and other ministerial colleagues have had a series of meetings with steel companies across the production and supply chains, and have been able to give them the support and structure needed in that context.

[Justin Tomlinson (North Swindon) (Con)]

10. What steps he is taking to help consumers reduce their energy bills.

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[Jeremy Lefroy (Stafford) (Con)]

12. What assessment he has made of the security of the UK’s energy supply between 2017 and 2020.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Jesse Norman)]

National Grid’s electricity capacity report for this year was published in July and includes a forward look on electricity security. Through competitive capacity auctions, we have already secured capacity from 2018-19 to 2020-21, and in January we will hold a further auction to secure capacity for 2017-18. Our most recent gas security analysis was published in October and shows that our diverse and flexible gas supply can meet demand even under severe weather conditions.

[Jeremy Lefroy]

The importance of substantial gas storage to electricity generation and avoiding damaging price hikes was highlighted by the partial closure of the Rough storage facility. What are the Government doing to tackle the question of increasing gas storage for the future?

[Jesse Norman]

That is a proper and important question. Our gas supply arrangements are quite diverse, and we have more than 30% spare gas capacity even on a cold winter’s day. The system has been tested, and has responded well in the past to shocks, including higher than expected demand for heating or power and restrictions to supply infrastructure, but it is certainly something we keep under constant review.

[Steven Paterson (Stirling) (SNP)]

19. The success of carbon capture and storage is important to our energy security, which is why it was so disappointing that the Chancellor slashed £1 billion from the ring-fenced capital budget in the autumn statement. What are the Government doing to promote CCS?

[Jesse Norman]

All I can do is refer the hon. Gentleman to the earlier remarks of my hon. Friend the Member for Ruislip, Northwood and Pinner (Mr Hurd) on this topic.

[James Heappey (Wells) (Con)]

Will the Minister join me in congratulating Avalon community energy on completion of its solar PV installation at Brookside school in Street? Does he agree that such schemes create a greener and cheaper energy system and afford us greater security of supply?

[Jesse Norman]

I certainly do, and I am very glad that my hon. Friend has brought that to the attention of the House.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

After the latest capacity auction, the overall scores for the procurement of new combined cycle gas generation plant stand at one small buildable plant over three auctions, at a total cost so far of £3 billion and £12 a year on customer bills. Does the Secretary of State have any other good ideas up his sleeve to secure the procurement and building of new capacity up to 2020?

[Jesse Norman]

As the hon. Gentleman will know, the gas capacity market auction was an enormous success. It secured a widespread diversity of supply at low cost and in higher amounts than ever before, and it included some innovative new technologies. The Department should be celebrated for managing this.

[Chris Elmore (Ogmore) (Lab/Co-op)]

13. When the joint Steel Council next plans to meet.