Oral Answers to Questions

Joan Walley Excerpts

Thursday 18th November 2010 Commons Chamber

[Mr Prisk]

All bids will be considered fairly and on merit. That means that when there is an opportunity to transform the economy so that it is less reliant on the public sector, irrespective of location, those applications will be considered with due care and consideration.

[Joan Walley (Stoke-on-Trent North) (Lab)]

Now that we have a local enterprise partnership in Stoke-on-Trent and Staffordshire, will the Minister assure me that we will be able to bid for regional growth funding for applications in respect of ceramics in Stoke-on-Trent and in respect of the new environmental technologies? Will he keep a close watch on ensuring that our deprived area gets that Government funding?

[Mr Prisk]

That is an excellent question, and I shall keep a close eye on the proposals—and, indeed, on the future of the economy in Stoke-on-Trent.

Oral Answers to Questions

Joan Walley Excerpts

Thursday 8th July 2010 Commons Chamber

[Mr Hayes]

It is essential that my hon. Friend and the House understand that that resource is on top of the existing investment programme, which is supporting a large number of current projects. That resource will enable real investment, bringing genuine benefits to learners and enabling colleges to plan for the future. I do not want to be unkind to Opposition Members, but it is important to recognise the disappointment that colleges felt under the previous Government. The Foster report said that that was due to inadequate management information, poor monitoring, a poor long-term financial strategy, meetings that led nowhere and monitoring that was focused on the wrong things. Now, I do not want to be unkind, but that is not good enough.

[Joan Walley (Stoke-on-Trent North) (Lab)]

Given that we are where we are in respect of capital funding for colleges, will the Minister look very carefully at the urgent need for increased capital expenditure in Stoke-on-Trent and at whether we can apply for the £5 million to get investment in the Burslem and Shelton campuses? Our college has no reserves, and I need the Minister to address that urgently.

[Mr Hayes]

I cannot make promises about individual colleges, but I hear what the hon. Lady says—she makes a powerful case—and I will be happy to meet her with my officials to discuss that matter further.

Schools Funding

Joan Walley Excerpts

Wednesday 7th July 2010 Commons Chamber

[Michael Gove]

My hon. Friend refers to the list. The list was furnished to me by those involved in the Building Schools for the Future project, but it was my responsibility to check it before it came to the House. I was anxious to do so in as rigorous a way as possible. The fact that the list contained inaccuracies when it came to the House is my responsibility alone. It was for that that I wished to apologise, and I underline that apology thanks to my hon. Friend’s question.

[Joan Walley (Stoke-on-Trent North) (Lab)]

Surely the Secretary of State owes the House an explanation as to why he brought wrong information to it. We do not seem to have had such an explanation. Just for the record, given that the list is now elsewhere and not available to hon. Members in the Chamber listening to the statement, could he reassure us about and explain the decision that has been made on the Staffordshire schools?

[Michael Gove]

I would like to make two points in response to the hon. Lady’s question. I sought as quickly as I could to bring to the House a statement explaining the future of Building Schools for the Future. That is why I made the statement on Monday. There had been a great deal of speculation about the future of the project, and to allow it to proceed would have meant that whichever schools were built, unnecessary additional administrative costs would have been incurred. That is why I sought the fullest possible information, and sought to bring it to the House in a statement at the earliest possible stage. I know that the hon. Lady is a Member of Parliament for Stoke-on-Trent. One announcement that I was able to make on Monday was that Stoke-on-Trent, as a local authority that has reached financial close, will see all the schools under Building Schools for the Future rebuilt or refurbished.

Industry (Government Support)

Joan Walley Excerpts

Wednesday 16th June 2010 Commons Chamber

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

I beg to move an amendment, to leave out from “power” to the end of the Question and add:

“welcomes the Government’s £150 million investment in a further 50,000 apprenticeships and their £50 million to support the college building programme that was in chaos under the last Government; further welcomes the extra 10,000 university places on offer for 2010-11; notes with concern the wasteful, ineffective policies pursued by the last Government regarding industrial support, and commends the Government’s plans for local enterprise partnerships that will deliver better value for money and support long-term growth objectives; recognises the need for a review of all projects approved since 1 January 2010 to evaluate their worth to the economy and taxpayer; welcomes Government support for entrepreneurs by reducing bureaucracy and increasing flexibility for both employees and employers; and believes the Government has made a strong early start in providing the conditions for long-term low-carbon economic growth and rebalancing the economy.”.

I have introduced many Opposition day debates and it is a pleasure to be able to respond to one. I know that hon. Members attend such debates for different reasons. Some come to make party points, and that is quite right—it is an Opposition day. Some come for constituency reasons, and I will have something to say later about some of the very specific projects that have been mentioned. I want to put those in context, so hon. Members need not feel that they have to intervene at any moment—

[Joan Walley (Stoke-on-Trent North) (Lab)]

Will the Secretary of State give way?

[Vince Cable]

Let me finish my introduction; I will come to specific projects later.

In relation to taxation, the right hon. Member for Wolverhampton South East (Mr McFadden) knows that I am not in a position to pre-empt the Budget, but if he reads the Chancellor’s speech to the CBI a few weeks ago, he will see that it fully acknowledges that not only do we wish to see lower rates of business tax overall, but we understand the importance of capital allowances in manufacturing.

In my days in opposition, I tried to engage constructively and find common ground, and we have approached today’s motion in that spirit. It includes some excellent statements, to which we are happy to subscribe. I shall start by working through some of those areas that appear to be common ground. The motion states that the

“Government has a crucial role to play in fostering economic growth and in creating a better-balanced economy”.

That is absolutely right, and we totally sign up to it—it is exactly what the Government are about—but it pre-empts the obvious question: why is the economy so unbalanced to start with, and who was running the Government who led it to be so unbalanced? By unbalanced, most of us mean that one sector, and one part of the financial services industry—the City and big banks—became too dominant, while the rest of the economy, including trade in goods and services, and in particular manufacturing, was allowed to decline relatively. That is the imbalance we are talking about.

It is worth putting that in context, however. My hon. Friend the Member for Burnley (Gordon Birtwistle) made this point from a local context a few moments ago. The share of manufacturing in the British economy shrank from just over 20% in 1997 to just under 12% in 2009. Of course, that is a historical trend, but I remember in the 1980s when people were concerned about deindustrialisation. It is worth noting that the rate of decline in manufacturing over the past decade was three times as fast as it was in the 1980s. Manufacturing employment during the period of the Labour Government, when this imbalance grew, fell by 1.7 million—that is the population of Leeds, Sheffield and Glasgow combined. That demonstrates the decline in manufacturing. Furthermore, the number of manufacturing companies fell by 12% over that period. That was the imbalance created when the right hon. Member for Wolverhampton South East and his colleagues were in government.

[Vince Cable]

That was a very constructive intervention, and I would be delighted to meet the right hon. Gentleman’s constituents. I met steelworkers before the election—indeed, I went to Redcar, which is now represented by a Liberal Democrat, and met the Corus workers there—and I would be very happy to meet any steelworkers whom the right hon. Gentleman wishes to bring.

[Joan Walley]

I congratulate the right hon. Gentleman on his new post. My intervention, along with that of my hon. Friend the Member for Stoke-on-Trent South (Robert Flello), is made in the spirit of trying to find a constructive way forward. In his speech, will the Secretary of State take account of the existence of heartland areas that have been over-reliant on manufacturing? One such area is Stoke-on-Trent, where we have large inequalities and where we need to do all that we can for manufacturing. Someone in his Department needs to be answerable purely for the ceramics area. We are desperate to meet with him to ensure that we can go forward with the regional development funding, irrespective of who administers it, in partnership with the Government in order to get what Stoke-on-Trent needs.

[Vince Cable]

I would be very happy to meet the hon. Lady and her colleagues. Her colleague the hon. Member for Stoke-on-Trent South (Robert Flello) spoke up a few moments ago on behalf of the black country—

[Joan Walley]

Stoke-on-Trent.

[Vince Cable]

Indeed. It is part of a conglomeration, but he spoke up for Stoke-on-Trent in particular. I met the chamber of commerce from that area; it came up with some excellent ideas, and I would be happy to meet it and the hon. Lady again. Clearly, this part of the country is deprived and needs special attention, and I am happy to give it.

I return to the question of how the imbalances arose. Of course, there is a trend, but it was aggravated by bad policy. I shall remind Labour Members, not all of whom were here during the period, of some of the big developments that occurred and which produced this excessive decline in manufacturing and the excessive dependence on the banking sector. Five or six years ago, I and other colleagues were warning from the Opposition Benches about the bubble that was developing in the property market, the reckless bank lending that was fuelling it and the instability that it was going to create. We were dismissed at the time as scaremongers, but of course the bubble did burst, with the disastrous consequences that we are now paying for.

Going further back in time—probably to before the right hon. Member for Wolverhampton South East was a Member of the House—a very important report was commissioned by the former Prime Minister, the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown). The Cruickshank report set out graphically how the British banking industry simultaneously was pursuing short-term profits while being dependent on a Government guarantee, and was also severely damaging British small-scale business because of the lending practices being adopted. At the time, we urged the Government to act on that report, but nothing was ever done.