Oral Answers to Questions

Julian Sturdy Excerpts

Tuesday 17th July 2018 Commons Chamber

[Michelle Donelan (Chippenham) (Con)]

7. What steps his Department has taken to tackle the challenges set out in the industrial strategy.

[Julian Sturdy (York Outer) (Con)]

13. What steps his Department has taken to tackle the challenges set out in the industrial strategy.

[The Minister for Energy and Clean Growth (Claire Perry)]

Blimey, Mr Speaker, I am getting through them today.

As my right hon. Friend the Secretary of State laid out at the northern powerhouse business summit, the industrial strategy is encouraging innovation across the UK, developing those high-quality jobs and wages we all campaign for. Sector deals are about building long-term partnerships and businesses, and the grand challenges in areas such as clean growth will equip the UK to seize opportunities and be a world leader in the industries of the future.

[Claire Perry]

I thank my hon. Friend and neighbour for the work that she has successfully done in her constituency promoting the importance of STEM skills. We are working with the Department for Education to grow STEM skills in the UK through initiatives such as T-levels, by investing more than £400 million, and I am particularly keen that that work focuses on harnessing the huge potential of women, a group who are very under-represented in the sector. That is why initiatives such as POWERful Women are so important.

[Julian Sturdy]

The Government’s commitment to creating a globally competitive technical education system must be applauded, and I hope that they will draw on best practice from establishments and institutions in my constituency, such as York College and Askham Bryan College. Can the Minister update me on discussions she is having directly with businesses about the creation of new institutes of technology, and will she consider rolling them out as quickly as possible?

[Claire Perry]

My hon. Friend is right: these have to be a collaboration between the Government, business and local decision makers. We will announce in the autumn which institutions will make up the country-wide network, supported by £170 million of funding for the institutes of technology. As we set out in May, the first pupils will sit the first of the new T-levels in September 2020.

Oral Answers to Questions

Julian Sturdy Excerpts

Tuesday 12th June 2018 Commons Chamber

[Richard Harrington]

I agree with the hon. Gentleman; this potash project is very exciting and very good for the UK. It is exactly the kind of business that he would want in his area, and it will help businesses throughout the United Kingdom.

[Julian Sturdy (York Outer) (Con)]

11. What steps he is taking to invest in science, technology and innovation throughout the UK.

[The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)]

When it comes to science, research and innovation, this Government are putting their money where their mouth is. We are investing an additional £7 billion in research and development funding by 2022—the biggest ever increase in public funding. Our ambition is to increase the UK’s R&D spend to 2.4% of GDP by 2027, which will be an additional £80 billion over the next decade to help us to dominate the new industries of the future.

[Julian Sturdy]

The industrial strategy’s commitment to supporting new innovation and investment in science and technology for food production was much welcomed, especially in areas such as North Yorkshire. Will the Minister update the House on what the Government are doing to deliver on these ambitions so that we can fully realise the sector’s potential as a source of high-skill jobs and growing exports?

[Mr Gyimah]

My hon. Friend is right to mention agri-tech. As he is aware, we set out in the industrial sector that agri-tech is one of the six priority areas for the artificial intelligence and data economy grand challenge. On progress in what we are doing, we have announced a £90 million transforming food production challenge, which will continue to bring together the UK’s world-class agri-food sector with expertise in robotics, AI and data science.

Oral Answers to Questions

Julian Sturdy Excerpts

Tuesday 12th December 2017 Commons Chamber

[Margot James]

The hon. Lady rightly raises an important issue. Following the commissioning of the work on tipping, we have issued guidance and publicised the issue. What was happening was grossly unfair. I am glad to report that there has been a significant improvement since we commissioned the review.

[Julian Sturdy (York Outer) (Con)]

Unfair trading practices used by big retailers have been identified as a factor in limiting the growth of small and new businesses supplying to the groceries sector. Will the Minister therefore reassure me that the Department will be bringing forward proposals to widen the remit of the Groceries Code Adjudicator in its response to this year’s consultation?

[Margot James]

We will be publishing our response to this year’s consultation on the future of the Groceries Code Adjudicator early next year. I have already committed to meeting my hon. Friend to discuss this with the Minister for Agriculture, Fisheries and Food, my hon. Friend Member for Camborne and Redruth (George Eustice), and I look forward to that meeting.

Leaving the EU: Consumer Protection

Julian Sturdy Excerpts

Tuesday 10th October 2017 Westminster Hall

[Vicky Ford]

I agree, and I thank the hon. Lady for her intervention. Interestingly, when the consumer organisation Which? surveyed British businesses, it found that those businesses, too, want to ensure that consumer interests are properly considered and maintained as part of the Brexit negotiation. That is precisely why British manufacturers say, “We want to continue to be part of the product-setting networks. We must have a seat at the table when they are agreed.” There are non-EU countries where manufacturers and standard-setting bodies are involved in the negotiations on the standards. It should be perfectly possible to maintain that in a deep and special relationship. It is in the interests of both parties.

It is also important to remember that consumer legislation continues to evolve. We need to ensure that legislation keeps up with the digital age. The digital world is increasingly borderless: our consumers are buying products not just from local retailers but, increasingly, from large global retailers, so it is important that we have international agreement on consumer issues. As I have said, the global forums for setting standards, particularly on digital consumer issues, often lack detail. Therefore, co-operation with Europe is necessary.

A key part of digital trade relates to the use of data. The ability of consumers to use comparison sites and to get consumer feedback means that they are increasingly empowered and informed. Our consumers need data.

[Julian Sturdy (York Outer) (Con)]

As has already been said, my hon. Friend is making a powerful speech. She talks about consumers making informed decisions. Does she see an opportunity with Brexit to take things further? One of my campaigns is for the opportunity to expand country of origin food labelling to allow consumers to make a more informed choice. We could expand the products that country of origin food labelling could be applied to.

[Vicky Ford]

Consumer choice is key, and I will discuss food standards, especially when I talk about trade relationships with other parts of the world. Being able to make a consumer decision increasingly relies on being able to access data, to go on to a database and to work out where to make a purchase in a digital world. The free flow of data also underpins digital streaming services, retail loyalty cards and use of cloud computing services. Without the free flow of data, businesses—but also consumers—would find themselves at a disadvantage.

Later this week, we will debate the future of data post-Brexit in the main Chamber. I contend that it is extraordinarily important for British and European consumers that we continue to have a free flow of data post-Brexit. Without that, British consumers will find that they cannot access information or comparison sites in anything like the detail they can at the moment, and many European companies will find significant barriers to their own business. There is no world trade agreement on digital data flows, so it is important that a decision is made on that area.

Another area I want to speak about in detail is the travel sector, because unless agreements are made in favour of consumers on travel, they will face significant impacts. For many consumers, the main impact of Brexit will be what happens on their holidays. The rest of Europe remains the most popular destination for British travellers. In 2015, British citizens made 32 million trips to the rest of the EU on holiday; EU citizens made 9 million trips to Britain. Two hundred million passengers fly through British airports every year.

As we all know, unless negotiated, the UK will lose access to the EU common aviation area, which risks affecting both flights from Europe into Britain and flights in the UK. There are also the many aviation agreements—more than 50—that the EU has with the rest of the world on airspace issues. It is imperative that access to airspace and landing rights is negotiated. Last week, we saw 100,000 people having problems with flights when Monarch collapsed. If there is no agreement or action on flights, tens of millions of consumers will be affected. That is why it is so good that the Government have started work on the areas that will be most affected if there is not a deal.

Aviation safety is also really important. The UK is currently covered by the European Aviation Safety Authority and, unless we continue to be a member of that, the Civil Aviation Authority will have to set up an equivalent, which would take time. That is precisely the sort of issue that needs a decent, long, thought-through transition period so that safety is not risked due to a cliff edge of uncertainty. Furthermore, today under EU law when flights are delayed or cancelled, passengers have a right to reimbursement or repatriation. It is important that we know soon whether those rights will continue. Airline tickets go on sale about 10 months before the first flights, so from next summer the airline companies will be trying to offer flights in a post-Brexit world and they need to know what rights go with their tickets.

Furthermore, non-air transport issues need to be considered. Today, British drivers are covered by the motor insurance green card, which means that we can drive from our homes across to the continent using our own motor insurance and that, if we have an accident with someone from elsewhere in the EU, the insurance will cover claims and compensation. If the green card arrangements are no longer in place, drivers may need additional insurance cover, which is especially important not just to individual consumers but to the freight transport sector.

I was glad to hear in the Chamber yesterday that another issue for travellers seems to have been resolved: the European health insurance card. There are about 27 million EHICs in the UK and last year those cards would have been used by more than 200,000 British travellers. Both sides—Europe and the UK—have said that they wish that to remain. It needs to be agreed in detail, but that does show that progress is being made on these key issues.

The final issue for travellers I want to mention is mobile roaming. This summer, my children certainly cheered when they got on the plane and found out that they would be able to use their phones without additional costs. Abolishing roaming charges has been especially popular with younger people. I know how extraordinarily tricky it was to negotiate that, having played a part in the negotiations myself. A deal on roaming and other digital issues needs to be a key part of our future trade agreement with the EU—and indeed of all future trade agreements.

Brexit gives us the opportunity to create new consumer-focused trade policy. That brings many benefits. Trade agreements bring consumer choice, variety, lower prices and the right to be able to buy products from many different countries of origin, including our own, as my hon. Friend the Member for York Outer (Julian Sturdy) correctly pointed out. However, we know that consumer confidence cannot be taken for granted. There have been many recent reactions and protests by consumers against trade agreements, particularly the proposed EU-US trade agreement, the Transatlantic Trade and Investment Partnership. As a member of the European Parliament, I remember receiving more than 10,000 emails over one weekend, nearly all of them different, about TTIP.

Consumers recognised the benefits of cheaper goods and services, but they also said firmly that this should not come at any cost. In particular, the public would be concerned about any drop in standards on food or animal welfare products. That is why the hon. Member for East Dunbartonshire (Jo Swinson) and my hon. Friend the Member for York Outer are both right to point out that it is in the interest of businesses to maintain standards, but also important that people know where their food especially is coming from.

The TTIP experience shows the problem of a disconnect between the public and the negotiators on trade issues and points to the need for transparency. It shows that the public and consumer organisations need to be involved in trade negotiations. It is important that those of us who want to continue to have a free market economy and free trade with the rest of the world prioritise the opportunities from the consumer’s perspective.

That is why it is important that we focus on issues such as mobile roaming and the real barriers that travellers face, so that they can see we are focused on the issues that consumers focus on. Brexit offers an opportunity for both the UK and EU to rethink and reset our approach to how we trade with each other and those across the world, but it will only retain the support of the public if consumers and consumer protection are put at the heart of the policy.

DRAFT National Minimum Wage (Amendment) REGULATIONS 2017

Julian Sturdy Excerpts

Tuesday 14th March 2017 General Committees

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

I beg to move,

That the Committee has considered the draft National Minimum Wage (Amendment) Regulations 2017.

It is a pleasure to serve under your chairmanship, Sir Alan.

The purpose of the regulations is to increase the hourly rate of national minimum wage for all workers, including those who are entitled to the national living wage. The regulations also include an increase in the accommodation offset rate.

Our economy is fundamentally strong and it continues to grow. GDP growth was 0.6% in the last quarter of 2016, above market expectations, and the economy is now 8.7% larger than its pre-crisis peak. It is right that our economic success is shared by everyone. Through the national minimum wage and the national living wage, the Government continue to ensure that the lowest paid in our society are more fairly rewarded for their contribution to the economy. The latest employment figures are a testament to the success of this policy: our employment rate is at a record high of 74.6% and our unemployment rate remains low at 4.8%.

When the House met to debate the national minimum wage rises in September 2016, I informed hon. Members that from this April the national minimum wage and the national living wage will be uprated simultaneously. We have delivered on that commitment and the new rates will be effective from 1 April this year, to coincide with the start of the tax year. We hope that by aligning the cycles we can make it easier for employers to comply, while reducing their administrative burden.

The Government continue to be supported by the expert and independent advice of the Low Pay Commission, whose members I thank for their hard work and guidance. The LPC is asked to recommend the highest possible increase in the national minimum wage rates without damaging the employment prospects of low-paid workers, and to recommend the rate of the national living wage such that it reaches 60% of median earnings by 2020, subject to sustained economic growth. The LPC has carried out extensive research, consultation and analysis to inform its wage rate recommendations. We have considered and accepted all the recommendations as set out in the LPC’s autumn 2016 report.

I will take this opportunity to clearly set out the rates that will be effective from 1 April. The national living wage rate will increase by 30p to £7.50 per hour. It is projected that up to 2 million people will benefit from this increase, whereby a full-time worker in receipt of the national living wage will receive an annual increase of more than £500. All the national minimum wage rates will also be uprated above the rate of inflation. Those aged between 21 and 24 will be entitled to a minimum of £7.05 per hour, an annual increase of 3.2%. Those aged between 18 and 20 will be entitled to a minimum of £5.60 per hour, an annual increase of 3.1%. Those aged 16 and 17 will be entitled to a minimum of £4.05 per hour, an annual increase of 2.8%. Apprentices aged 19, or those aged 19 and over in the first year of their apprenticeship, will be entitled to £3.50 per hour, which is the largest annual increase of all the rates at 4.5%. Finally, the accommodation offset rate will be increased from £6 to £6.40 per day.

We recognise that as rates rise, the risk of non-compliance also rises. The Government will ensure that every worker in the UK who is entitled to the national minimum wage or national living wage receives it. We are actively taking steps to tackle non-compliance and sending a clear message to employers that minimum wage abuses will not go unpunished. That is why the Government continue to invest heavily in minimum wage enforcement, increasing the budget to £25.3 million for 2017-18, up from £13 million in 2015-16. In addition, the Government have invested £1.7 million in an awareness campaign to highlight the rights and responsibilities among workers and employers. The campaign was launched in January and will pick up pace as we approach 1 April.

[Julian Sturdy (York Outer) (Con)]

I welcome the proposals on the table, but will the Minister outline what representations she has had from small business, given that the increases come at the same time as auto-enrolment and other cost pressures?

[Margot James]

My hon. Friend makes a good point. I have had representations from small businesses, particularly in the retail sector, saying that they are finding it challenging to cope with the various cost increases, but they tell me that they agree that introducing the national living wage is the right thing to do. Despite the difficulties, I have not had any representations urging us to row back on the increases in the regulations.

This Government are committed to an economy that works for everyone. The ongoing success of the UK labour market proves that a rising minimum wage can go hand in hand with rising employment. I commend the regulations to the Committee.

Exiting the EU: Higher Education

Julian Sturdy Excerpts

Wednesday 23rd November 2016 Westminster Hall

[Dr Huq]

As always, my right hon. Friend makes an excellent point. He has anticipated my speech very well, because EU students and their migration totals are on my list of asks, which I am coming to.

The Prime Minister’s much quoted Downing Street speech advocated

“an economy that works for everyone”.

Universities are often the biggest employers in their cities. There are lots of figures on this; in 2014-15, 125,000 EU students generated some £4 billion for the UK economy, and there is off-campus spending as well. We must not ignore all that. We need to bust the myth that universities are merely insular communities up an ivory tower with their heads in a book and provide no wider public benefit. In addition, there is the £836 million of research funds—15% of the total. Universities provide good economic value.

Universities are also changing. My constituency is home to the University of West London, but also to a distance learning and blended learning institution, Arden University. People felt that there were already pressures on the sector, but Brexit is exacerbating everything.

As well as statistics, we should also consider a wider set of philosophies. In my alumni magazine, the vice-chancellor of Cambridge wrote that

“the University has a duty of leadership that it will not forsake…Our commitment to Europe…is…to a shared cultural and intellectual heritage”.

In the ’90s, as a twentysomething, I did a stint at Strasbourg II, one of Strasbourg’s many universities. I want others to have the same opportunities. After I finished my degrees, I worked as a university staffer; the Russell Group, where I was employed early in my career, has had to lay on hotlines to provide not only emotional counselling but legal help for its institutions to get indefinite leave to remain for academics who are completely traumatised by what has happened.

I know from friends in the research community that British researchers are already being snubbed for Horizon 2020 funding or are being told, “You can’t be the lead partner institution any more because you will be gone soon”, and we have not even left the EU yet.

[Julian Sturdy (York Outer) (Con)]

The hon. Lady makes some valid arguments. I was on the other side of the Brexit campaign from her, but I know how important universities are. European research funding makes up 11% of the research budget for York University in my constituency. She has hit a key note. We really need to know whether Britain will be part of a wider collaboration with the EU and involved in the future beyond Horizon 2020, whatever it may be. We do not know what that future will be, but we need to make certain that UK universities play a leading role in it.

[Dr Huq]

I completely agree with the hon. Gentleman. There are many unknown unknowns in this debate. A former employer of mine, Professor Martin McQuillan from Kingston University, where I was last employed, has written an article about the post-1992 sector. York is a Russell Group university, as is Cambridge, and Manchester, where I used to work, but at the other end of the spectrum we have the new universities that John Major equalised—the ex-polys, which felt precariously perched anyway. In his article, he outlines some of the pressures—we discussed some of them on Report on the Higher Education and Research Bill on Monday—including rocketing class sizes without commensurate resource, reforms to the research excellent framework, and the new teaching excellence framework.

My old boss says that to some extent EU funding used to level the playing field, but if that is gone, it will tip things even more unequally towards the older universities. He highlights the shocking Higher Education Funding Council for England prediction that between 2015 and 2019, the funding gap between the best and worst-performing institutions will widen, with the spread running from plus 21.5%—some will be in surplus by that much—to the worst performing at minus 28.6%. That is quite a disparity, and it is set to grow; hardly an economy that works for all.

I would rather we had remained in the EU to shape the criteria. One of the arguments was that we might be like Norway, having to do all the same stuff but not making the decisions at the top table. But we are where we are. I shall now go through the list of asks, or—I do not know—demands; or should I be collegiate and friendly and call them the suggestions that we might like to build into a future strategy?

Oral Answers to Questions

Julian Sturdy Excerpts

Tuesday 13th September 2016 Commons Chamber

[David Morris (Morecambe and Lunesdale) (Con)]

6. What steps his Department is taking to promote innovation in all regions of the UK.

[Julian Sturdy (York Outer) (Con)]

7. What steps his Department is taking to promote innovation in all regions of the UK.

[The Minister for Universities, Science, Research and Innovation (Joseph Johnson)]

The Government support innovation through Innovate UK, soon to be part of UK Research and Innovation, and have invested more than £1.8 billion in innovation since 2007. Innovate UK is connecting businesses to local growth through its regional managers, and local enterprise partnerships are supporting innovation through £200 million of local growth funding.

--- Later in debate ---

[Joseph Johnson]

We certainly recognise the value of space to our economy and we are working closely with industry to understand their concerns. We are also working closely with colleagues across the Government to ensure that we understand the impact of the referendum and all the opportunities associated with it, and we will continue to do that as we shape our future relationship with the European Union.

[Julian Sturdy]

The success of our agricultural industry is dependent on the latest innovations in agricultural science and technology, which are driven forward by world-leading research centres such as Fera on the outskirts of York. What assurances can the Minister give us that agri-food research will continue to play an important role in the Government’s overall strategy for supporting innovation and, ultimately, delivering food security?

[Joseph Johnson]

This Government are investing £160 million in agri-tech, including in centres for agricultural innovation, to ensure that our world-leading science is improving productivity on farms. In addition, a UK-wide food innovation network, which is to be launched shortly, will give businesses greater access to technology and science.