Space Policy

Debate between Jim Shannon and Iain Wright

Thursday 14th January 2016 Commons Chamber

[Mr Iain Wright (Hartlepool) (Lab)]

It is a pleasure to contribute to this debate. I congratulate the hon. Members for Central Ayrshire (Dr Whitford) and for Glasgow North (Patrick Grady) on securing it and I thank the Backbench Business Committee for agreeing to it. There have been far too many references to “Star Trek” at the expense of “Star Wars”, so let me try to even it up a bit. Space policy has not been debated as much as it should have been in this House given how important it is, but I am pleased that, as a result of the tenacious attitude of the hon. Members for Central Ayrshire and for Glasgow North, the force has awakened. [Laughter.] That’s the only thing you’re going to get.

As has been mentioned, Tim Peake’s mission on the international space station is a fantastic achievement. I think the whole House and the whole country wish him well as he embarks on his spacewalk tomorrow. His mission is important for a number of reasons. First, he is undertaking practical experiments and research that will have positive applications back on earth, a point to which I will return in a moment. Secondly, as has already been mentioned, Major Peake’s space mission is undoubtedly inspiring and motivating a whole new generation, rather like a previous generation was inspired by the Apollo programme. I remember the inspirational words of President Kennedy:

“We choose to go to the moon…and do the other things, not because they are easy, but because they are hard”.

That inspiration and ambition are incredibly important.

The young people looking at what Major Peake is doing—following his journey and progress on Twitter, Facebook and so on, and perhaps even interacting with him as he conducts experiments in space—will have their eyes opened to the enormous and often unlimited potential available to them in their lives and careers. They might not necessarily want to become astronauts—I still have a wish to be an astronaut; I think everyone in this debate does—but they will see the dizzying potential and scope of science, technology and engineering. I hope that the impact of Tim Peake’s mission into space will last for decades, as young people are inspired to go on to have an impact on science and research throughout the 21st century.

The third reason why Major Peake’s mission is so important is that it showcases a true British industrial success: the UK space industry, and that is what I want to focus on. Most people walking the streets today will not be aware, as the hon. Member for Central Ayrshire said, that Britain has a space sector. People will perhaps automatically think of NASA and, possibly, Russia. They might consider a space industry linked with putting people regularly into space or, as the hon. Member for Glasgow North said, with missions such as New Horizons and the exploration of Pluto and the Kuiper Belt. Major Peake’s journey gives us the opportunity to celebrate a great British economic success and highlight what I hope is a shared ambition—it certainly is in today’s debate—to see the sector grow.

I think the Minister would agree that the UK space sector is the very model of the type of modern, successful sector that Britain should be focused on: innovative and high value, and providing well-paid and highly rewarding —in every sense—careers. It taps into Britain’s strengths, based on the very best of science, engineering and world-class British research, but with a very clear nod to British excellence in professional services, such as legal, financial and regulatory work. It is a rapidly growing sector throughout the world—perhaps it is best to say above the world—and the British comparative advantage should be used to capture even more wealth and value for this country in the future.

We have been quite canny in this country in identifying precisely where in the space sector, and throughout its value chain, Britain excels. We have skills in upstream activities, such as satellite construction. I visited Airbus in Stevenage and saw the great work that goes on there. I saw satellites being built and walked on the surface of “Mars”, which was absolutely fantastic. Our real strength and potential, however, lie in the industry’s downstream activities, such as user equipment, applications, services and data. Our strengths in professional services such as legal, regulatory and financial services allow Britain to lead the world in raising capital to finance space technologies, as well as the expertise to provide licensing arrangements. It is these downstream activities that will increase demand in the future so that Britain is well placed for future growth.

The hon. Member for Central Ayrshire and others have already mentioned the figures, but it is important to reiterate just how successful the UK space sector has been in recent years. It generates almost £12 billion for the UK economy, which is almost double the value of the sector just a short time ago in 2007. The industry directly employs 37,000 people in this country. That figure rises to 115,000 when one considers the supply chain, and supported and indirect jobs. UK space has seen an annual growth rate of 8.6% since 2008-09.

Madam Deputy Speaker, I think you were in the Chair yesterday when we discussed, in an Opposition day debate secured by the Scottish National party, some of the structural weaknesses in our productivity and trade positions. Frankly, if all other sectors in the British economy were performing at the same rate as the UK space industry, this country would be doing well. Productivity is three times the national average, with a value added of £140,000 per employee in the sector. Exports are twice the national average, representing about a third of the sector’s turnover. That success bodes well for the future. The global space industry is set to grow even further to about £400 billion by 2030. The UK space sector’s ambitions are challenging but achievable; the national space policy’s objectives are for Britain to have a 10% market share in the global space industry, provide £40 billion of value to the British economy and employ an additional 100,000 workers by 2030.

I hope there is a real consensus across the House, regardless of party affiliation, for that ambition, and for backing the Government and building on the back of previous support for UK space, regardless of which party is in government. Tribute must be paid to Paul Drayson, who launched, as it were, much of the Government’s interest in UK space. To be fair, David Willetts continued that policy in an excellent way throughout the coalition Government, providing all-important policy continuity and certainty that transcended Parliaments, and allowed confidence in the sector to grow and gave potential investors the reassurance that has provided much of the success for British space.

Given the characteristics of the UK space sector—a high-value, innovative, productive, export-focused industry that has identified our specific key strengths within the sector and built on that comparative advantage to secure more global market share in the future, assisted by a strong and long-standing partnership between industry, Government and research to provide policy certainty—it is surprising that the Government do not want to shout more about the virtues of an industrial strategy. An industrial strategy has been part of the success of the UK space industry. The Secretary of State seems to have abandoned such aspirations, with the possible exceptions of the aerospace and automotive industries. That seems wrong. I am pleased that the Minister on the Treasury Bench is the Parliamentary Under-Secretary of State for Life Sciences. I would single out life sciences as another great skill for Britain. It is a marvellous sector, so why is it not also classed as strategically important? That approach is very important.

In his autumn statement, the Chancellor announced a movement of research funding away from grants to loans, with the exception of the aerospace and automotive sectors. That runs the risk, as mentioned yesterday, of investment not being attracted to Britain. For such a successful and promising sector as space, that is worrying. Will the Minister consider expanding the definition of the aerospace sector to include space so that it can take advantage of the security of research funding and grants?

[Jim Shannon]

In seeking to advance the space industry, is it not important to involve universities and their expertise and knowledge? Is partnership with universities not also part of this?

[Mr Wright]

That is incredibly important. Britain’s unique blend of strong leadership and partnership between industry and Government, through things such as the UK Space Agency and the Space Leadership Council, and our world-class research expertise and strong university base, means we are well positioned to capture as much market value as possible.

Will the Minister accept—I believe he personally believes it—that industrial strategy works and commit to ensuring that the Government embrace such an approach so that sectors such as space and the life sciences can be exploited as much as possible for the benefit of Britain? I mentioned that the national space policy set out an ambition for 100,000 additional jobs in the space industry in the next 15 years—I think we would all sign up to that—but given the skills shortages in engineering and science-based industries throughout the economy, and the difficulty of encouraging girls and young women to consider science, technology, engineering and maths subjects in school, college and university and then as a career, what is he doing to address barriers to growth in the UK space sector? What further assistance, in terms of outreach activities, internships and apprenticeship opportunities, will be provided to motivate and inspire girls and young women to think about a career in space?

In criticising the space industry, it is often said that interest and investment in space is a luxurious folly and that, at a time of austerity and crisis in public services, we cannot afford a space industry: why are we sending a man into space, when patients are lying in hospital corridors? This is a false argument. To a vast extent, the UK space industry is driven by private sector investment—Government investment in the past 15 years has averaged 0.015% of total investment—and the value it creates grows the economy, employs people on good wages and increases tax revenues, thereby helping to fund public services. Research in space or in the space industry has positive applications on earth—for example, satellite technology and food crops or experiments into materials and how they react. Major Peake, while on the international space station, is carrying out experiments to measure pressure in the brain that could have important applications in serious trauma care. Investment in space results in tangible benefits for society on earth.

I am not just talking about the cost-benefit analysis. I was struck by the comments of the hon. Member for Bracknell (Dr Lee). Industry is important, and the bottom line is crucial, but as he said, exploration and imagination are fundamental to the human spirit, and it is difficult to think of anything comparable to space when it comes to letting our imaginations run riot. It is vital that we ensure an interest in space by showing what space can provide. The UK space industry is a huge success story, and has the potential to grow still further and inspire a whole generation, but that requires an ongoing partnership between industry, the Government and research. This debate shows that there is great consensus and that many people support the Government in ensuring that the UK space industry realises its potential.

Aerospace Industry

Debate between Jim Shannon and Iain Wright

Tuesday 2nd September 2014 Westminster Hall

[Mr Wright]

The hon. Gentleman is right, and that model works well for the aerospace industry. I certainly want to see that encouraged, because an oversupply of apprentices then cascaded down through the supply chain reassures the primes about quality. It can be a means by which the whole competitiveness of the sector can be maintained and something that we should certainly encourage.

[Jim Shannon]

In Northern Ireland, with Shorts aircraft fitters for example, Bombardier has been anxious and keen to secure recruitment from those in the 50-plus bracket, who perhaps went to another job, but still have the skills. They can come back to do training with Shorts Bombardier. That is an example of where in the United Kingdom that is happening for those over 50, who are not on the apprenticeship scale, but are looking for jobs and have the skills.

[Mr Wright]

The hon. Gentleman makes an important point.

Going back to what the hon. Member for Burnley (Gordon Birtwistle) asked in an earlier intervention, not only with specific regard to particular trades and fitting, but the whole education system, from primary through secondary education and on to further and higher education, the system should be geared up to say, “The aerospace industry: you could have a fantastic career if you choose it.” Going to work in a factory, in particular somewhere such as Airbus in Broughton, is certainly not a sign of failure. I would be absolutely delighted if one of my children won an Airbus apprenticeship. It is a fantastic success story, which we need to encourage. The culture of this country is that we do not make anything in Britain any more, but that is simply not true in practice. What steps are the Government taking on manufacturing in general and aerospace in particular to ensure that that is dealt with?

I mentioned the success of exports for the UK aerospace industry, with 90% of the high-value products made by the sector in Britain exported overseas. However, the industry has told me—the hon. Member for Mid Worcestershire mentioned this—that more support and co-ordination are needed for export sales campaigns. Primes and suppliers have said to me fairly consistently that they would like more advanced information and to be more closely involved when Ministers are travelling on trade missions, or when international delegations are visiting the UK. Will the Minister respond to what seems to be a constant voice?

Ambulance Resources and Response Times

Debate between Jim Shannon and Iain Wright

Wednesday 14th May 2014 Westminster Hall

[Mr Wright]

It could have been a factor in Mr Gouldburn’s case, because originally his family contacted the ambulance service via 999 but subsequently they went to 111. I do not think that there is sufficient join-up between the ambulance services and the contact centres about what is appropriate to 999 and what is appropriate to 111. I hope that the Minister will respond to that point.

[Jim Shannon (Strangford) (DUP)]

The hon. Gentleman is being very kind and gracious in giving way, although I had asked his permission to intervene beforehand.

Obviously I do not represent the immediate area covered by the ambulance service that the hon. Gentleman is referring to. In Northern Ireland, however, we have a system whereby the ambulance service can respond to someone who has had a heart attack, as was the case with his constituent. It is a rapid response unit, whereby a car goes out in advance of the ambulance and staff take the urgent remedial and medical action that is necessary in the critical first minutes after what has happened, and then the ambulance follows. Does he feel that the Minister could consider using that system in parts of England as well?

[Mr Wright]

We should have that system already, but it is simply not working in the north-east and in other parts.

Let me cite another case. A constituent of mine from the Headland part of Hartlepool, which is an urban area, contacted me to say:

“My dad has kidney failure and has only 12% of his kidneys working. Just over three weeks ago, my mam rang me concerned about dad. When I arrived at their house, I could see he was very, very ill. I rang immediately for an ambulance. A nurse rang me back for an assessment of dad. No ambulance. I rang again, another assessment, no ambulance. I rang again, another assessment, (the 4th one), this time stressing that I was angry because he was dying and the family would be driving dad to the hospital if they didn’t come, even though this was impossible. After two hours ten minutes, the ambulance finally arrived. In each phone call that I made, I stressed the fact that dad had kidney failure, which results in potassium build up, which results in a heart attack.”

Thankfully, my constituent’s father went to hospital and, almost against the odds, is slowly improving. As my constituent stated to me:

“He is still weak but my dad has always been a hard worker and a tough, strong man. He is at home but missing going to his allotment! There is no doubt the wonderful nurses and doctors saved dad’s life.”

I want the Minister to respond to and take action on a number of points raised by the examples that I and my hon. Friends have given. First and foremost is that stark admission from a manager within the NEAS that the service does not have the resources to meet demand, and that that is a national problem. As my right hon. Friend the Member for Oxford East (Mr Smith) said, demand is clearly rising. Since the 2010 general election, emergency calls to ambulance services in England have increased by about 12%, and calls in the north-east have gone up by about 13%. An ageing population will only increase demand further. In the next decade, this country will need more ambulance resources, not less.

Football Clubs (Insolvency)

Debate between Jim Shannon and Iain Wright

Tuesday 18th March 2014 Westminster Hall

[Mr Iain Wright (Hartlepool) (Lab)]

It is a pleasure to serve under your chairmanship again, Mr Streeter. I thank my hon. Friend the Member for Coventry South (Mr Cunningham), and the hon. Members for Portsmouth North (Penny Mordaunt) and for North Swindon (Justin Tomlinson). There was also a good late substitution when the hon. Member for Nuneaton (Mr Jones) came on to the pitch. Most of all I thank the hon. Member for Folkestone and Hythe (Damian Collins) for securing the debate. The manner in which he advanced his excellent, eloquent argument was first class, and he set the tone for the rest of the debate. He closed his remarks by explaining that the issue is one that arguably affects all our communities. It certainly affects millions of football fans.

I was particularly pleased that my hon. Friend the Member for Wirral South (Alison McGovern) was here, because she is a fan of Liverpool football club, and Bill Shankly, one of this country’s greatest ever managers, famously said:

“Some people believe football is a matter of life and death, I am very disappointed with that attitude. I can assure you it is much, much more important than that.”

In many ways that is true, as we have heard today. Football makes a remarkable contribution to society. In my own patch, about a fifth of Hartlepool’s population travelled to Cardiff’s Millennium stadium to see Hartlepool United against Sheffield Wednesday in the league one play-off final in 2005, where we were cruelly robbed by an appalling refereeing decision. [Interruption.] It was a fabulous stadium.

Football provides a place with a sense of identity and belonging, and a recurring theme of the debate has been that clubs are much more than merely businesses. They are vital social institutions that bring and bind communities such as the people of Hartlepool together. There is a strong case for saying that in matters of business, governance, ownership, transparency about those matters and insolvency, the wider effects on society and communities should be considered.

It always strikes me as odd that, given football’s central importance to our society and communities, its finances are often precarious. Every year, Deloitte, a firm for which I used to work—I draw the House’s attention to my entry in the Register of Members’ Financial Interests—produces a review of football finance. The latest review showed that in the 2011-12 season, the total revenues of the 92 clubs in the top four divisions of English football exceeded £3 billion for the first time. However, the Premier League accounted for almost four fifths of that total. Lower down the leagues, it is a different story. In the 2011-12 season, the average revenue of a league one club was £5 million, with an average net loss of £2.4 million; and in league two revenue was £3.3 million, with an average net loss of £0.3 million.

My local club, Hartlepool United, has had its fair share of flirtations with insolvency, although not in recent years, thankfully. We are infamous for a record number of re-elections to the Football League, and in the 1980s there was a time when we owed £52,000 to the Inland Revenue and a six-figure sum to other creditors. We were days away, in 1983, from being wound up, and the bailiffs took the goal posts, goal nets and grass cutter to pay the debt—not that we noticed much, because that year we finished third bottom, with a goal difference of minus 30. The only people below us, funnily enough, were Hereford United. It is funny how things go. We were actually wound up in the High Court in 1992-93 but the town’s club was saved by a great man—Harold Hornsey—and that helped to put Hartlepool United on a much better, sound financial footing.

[Jim Shannon]

Even though a club may be small, it makes a contribution to its town or city, and to society, and gives people pride even when it is not playing as well as it might or as well as people would like. Those are important factors for communities, and we should not take away from that. Perhaps a club will never become a Manchester United, Liverpool or Rangers, but it can always be an Ards football club, or a Hartlepool United. Those things are important to society.

[Mr Wright]

I must disagree with the hon. Gentleman. In my lifetime, Hartlepool United will become a Manchester United or a Liverpool, and I will live to see us lift the champions league trophy, so the hon. Gentleman is wrong in that respect. He is right, however, about the vital contribution that clubs make to local businesses. Hartlepool borough council recently undertook an assessment of Hartlepool United’s economic impact on local businesses and, astonishingly, the club provides something like £5 million to Hartlepool’s economy.

The figures I have quoted show how inherently uncertain is the business model on which much of football is based. The hon. Member for Folkestone and Hythe said that 46% of clubs have been through a formal insolvency procedure since 1992. No other sector of the economy has had that level of insolvency, which highlights—this was one of the hon. Gentleman’s most articulate points—the possibility of reckless spending. Entry into the premier league—the most exciting and followed league on Earth—could mean as much as £50 million to a club. It is the glittering prize to which all supporters and owners aspire, but it leads to reckless gambles in the transfer market, which could undermine the financial viability and long-term security of a club. Some argue that the football creditors rule prevents clubs from spending money on players whom it cannot afford, but we have heard today that that is far from the case. The football creditors rule means that there is no inherent brake on transfer spending or on—as the hon. Gentleman said—the shared risk of a club not being paid for the transfer of a player, because football creditors are paid in full at the expense of other unsecured creditors.