Oral Answers to Questions

Kemi Badenoch Excerpts

Thursday 18th May 2023 Commons Chamber

[Layla Moran (Oxford West and Abingdon) (LD)]

2. If she will make an assessment of the implications for her policies of trends in the level of use of non-disclosure agreements by businesses in cases relating to sexual assault, harassment and misconduct.

[The Secretary of State for Business and Trade (Kemi Badenoch)]

Non-disclosure agreements can be used legitimately by employers—for example, to protect commercially sensitive information. The Government understand concerns about the use of NDAs to silence victims of sexual misconduct. We have legislated to prevent higher education providers using NDAs in cases of sexual abuse, harassment or misconduct and other forms of bullying or harassment.

[Layla Moran]

Imagine, Mr Speaker, that you are a victim of bullying, misconduct or sexual harassment at work, and your employer pushes you to sign a gagging clause preventing you from publicly disclosing what happened to you; this sits over you in perpetuity, reminding you of the trauma you experienced. The campaign group Can’t Buy My Silence will soon be launching a business pledge to commit to ending this practice in businesses for good. Will the Secretary of State consider meeting me to discuss this forthcoming pledge, and does she back a ban on the use of NDAs in these specific cases?

[Kemi Badenoch]

I am aware that the hon. Member had a private Member’s Bill on this very issue. The Government are supportive of preventing harassment in the workplace, and we supported the Worker Protection (Amendment of Equality Act 2010) Bill. We believe that NDAs have a place, but she has raised specific circumstances where they are inappropriate, so I am happy to discuss with her what we can do to stop this problem from continuing.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

3. What assessment her Department has made of the potential impact of the Digital Markets, Competition and Consumers Bill on levels of competition between businesses in digital markets.

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[Holly Mumby-Croft (Scunthorpe) (Con)]

8. What steps her Department is taking to support the steel industry.

[The Secretary of State for Business and Trade (Kemi Badenoch)]

We are actively engaging with the steel industry to secure a positive and sustainable future. Alongside that, my Department announced the British Industry Supercharger in February—a decisive and necessary intervention that will help to reduce energy costs for energy intensive industries such as steel.

[Jessica Morden]

As the Minister knows, the key issues facing the steel industry are energy prices—we are still paying much more than our European competitors—and decarbonisation. There are 23 clean steel projects in Europe, but none here. In reply the Secretary of State will quote support that is historic, too little, or too late. Labour Members have a plan for steel, where is the Government’s?

[Kemi Badenoch]

I visited the Port Talbot steelworks, and no one there is talking about Labour’s plan; they are talking about what the Government have been doing, and they have been grateful for the support we have provided. It is misleading to call that “historic” when we have been showing continued support for the steel sector. The Government continue to provide that significant financial support, and the steel industry has been able to bid into Government funds worth more than £1 billion to support energy efficiency and decarbonisation.

[Holly Mumby-Croft]

I thank the Secretary of State for her visit to Scunthorpe steelworks. She knows well the challenges that the steel industry is facing. While the British Industry Supercharger was a welcome announcement that I hope will go a long way to putting us on a fairer footing, I am concerned that some of that support might not be fully in place until 2025. Given current concerns, can she do anything to speed that up?

[Kemi Badenoch]

I thank my hon. Friend for her question and for accompanying me on my visit to British Steel last week. We are moving quickly to deliver the supercharger policy. It will reduce energy costs to energy intensive industries, including steel, by around £20 per megawatt hour. She mentioned speed, and we will consult on the capacity market exemption shortly. We intend to bring forward secondary legislation on all three measures around renewable energy obligations and capacity market costs. I will do everything I can to ensure that businesses get the support they need as quickly as they can.

[Marco Longhi (Dudley North) (Con)]

5. What assessment her Department has made of the potential impact of the comprehensive and progressive agreement for trans-Pacific partnership on UK businesses.

[The Secretary of State for Business and Trade (Kemi Badenoch)]

We have secured a deal that offers brilliant new opportunities for British businesses by getting an agreement in principle to the comprehensive and progressive agreement for trans-Pacific partnership. Our exporters will have greater opportunities to sell their excellent products to some of the world’s biggest markets in the Americas and Asia-Pacific, with the bloc set to account for 15% of global GDP once the UK joins. It will be easier and less expensive to trade physical products between our countries, and more than 99% of current UK goods exports to CPTPP will be eligible for tariff-free trade.

[Marco Longhi]

I congratulate the Secretary of State on the CPTPP agreement, which, among other things, will be a wonderful vehicle to foster better relationships within the Indo-Pacific, as well as being a key region for UK trade. Another key area for trade for the United Kingdom is Latin America, and as the Prime Minister’s trade envoy to Brazil, and having lived and worked there for five years, I have seen first hand the wonderful opportunities available there. Will the Secretary of State update the House on what her Department is doing to build on that trading relationship with Brazil?

[Kemi Badenoch]

I thank my hon. Friend for his outstanding commitment to improving our trade relationship with Brazil in his work as trade envoy, and I wish him well on his upcoming trip to the country. Our bilateral trade with Brazil increased to £7.7 billion in the 12 months ending December 2022, and the signing of the UK-Brazil double taxation agreement in November represents a significant step in enhancing trade across all sectors. There is much we can do with Brazil—I intend to visit the country, hopefully later this year—especially around critical minerals. I look forward to working with the Brazilian Government in due course.

[Dan Carden (Liverpool, Walton) (Lab)]

As the UK crafts deeper and more comprehensive trade relations across Latin America, it is important to capture not just economic benefits but cultural benefits. In fact, student and language exchanges are a vital precursor to trade as they enable young people in both the UK and Latin America to have the mobility and skills to create those relationships and build businesses. Today, a major barrier preventing UK university students from studying in Latin America is the lack of mutual recognition agreements on qualifications. What assessment has the Secretary of State made of the merits of integrating mutual recognition of higher education qualifications into trade negotiations?

[Kemi Badenoch]

I thank the hon. Gentleman for his question, for the work that he does as the chair of the all-party parliamentary group on Mexico and for his interest in the region. We do look at mutual recognition for qualifications in trade deals, but most of the time they tend to be in separate agreements. Because of the nature of how free trade agreements are structured, we try to ensure that they are focused specifically on trade. We have an upcoming upgrade to our trade deal with Mexico, as we do with several other countries. If he has specific areas that he would like us to highlight, now is the time to tell us which qualifications in particular we should focus on.

[Mr Speaker]

I call the shadow Minister.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

While Labour Members recognise the diplomatic and security benefits of closer ties with the Indo-Pacific, Ministers’ negotiating skills are clearly not improved if Britain’s joining the CPTPP will lift economic growth here by only 0.08%. Will the Secretary of State tell the House why, in the accession talks, she was not able to resist giving some overseas corporate giants the right to access secret courts that could override the will of the British people, bypass Parliament and cost British taxpayers significant sums of money?

[Kemi Badenoch]

I believe that the hon. Gentleman is referring to investor dispute settlement mechanisms. We have used them in this country for many years, and that has protected British companies. He is wrong about the CPTPP not bringing much economic growth to the country—it will bring billions. We have repeatedly explained that the statistic he quoted is being misused. It does not take into account the growth of the bloc or the future GDP growth of those countries. We should be congratulating all our officials for the hard work they did in negotiating the agreements rather than criticising them.

[Andrew Selous (South West Bedfordshire) (Con)]

6. What steps her Department is taking to support the critical minerals industry.

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[Peter Aldous (Waveney) (Con)]

T1. If she will make a statement on her departmental responsibilities.

[The Secretary of State for Business and Trade (Kemi Badenoch)]

As Secretary of State for Business and Trade, my priority is to support UK companies to thrive at home and abroad, which is why this week I launched negotiations for an enhanced UK-Swiss free trade agreement alongside my counterpart, Federal Councillor Guy Parmelin. Trade between us is worth almost £53 billion and, as two service economies, a modernised agreement presents huge opportunities for the UK and Switzerland. I met representatives from SIX Swiss Exchange, the backbone of Swiss financial services, and several innovative start-ups at the fintech accelerator Tenity.

[Peter Aldous]

Fish and chip shops have been part of the fabric of British life for generations and should be the cornerstone of a revived domestic fishing industry. However, shops in the Lowestoft and Waveney area continue to face an ongoing triple whammy of high energy costs, high fish prices and the high cost of cooking oil. Will my right hon. Friend work proactively with the sector to agree a strategy that ensures the survival and subsequent flourishing of fish and chip shops?

[Kemi Badenoch]

My hon. Friend is a doughty champion for his local fish and chip shops. We recognise the importance of fish and chip shops to local communities and the challenges they face. We have introduced a range of support measures to address the specific issues he raises, including changes to business rates that, across the country, are worth a total of £13.6 billion in lower bills. We are also supporting non-domestic energy customers through the energy bill relief scheme, and we recently introduced the energy bills discount scheme, which runs until March 2024. We will keep working closely with the sector as part of the Hospitality Sector Council to improve the resilience of businesses, including the fish and chip shops in Lowestoft.

[Mr Speaker]

I call the shadow Secretary of State.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

It has now been 100 days since we first welcomed the right hon. Lady to her new post. In that time, we have seen steel production fall to record lows; the automotive sector has issued warning cry after warning cry that Government policy risks shipping jobs overseas; and the US has seen incredible sums invested under the Inflation Reduction Act and the EU has put forward its own significant response. Meanwhile, the UK remains trapped in the Conservatives’ low growth, high tax loop, with the lowest business investment in the G7. This morning, three of her predecessors, each from a different political party, have said that the Government need an explicit industrial strategy. Does the current Business Secretary agree with them?

[Kemi Badenoch]

I thank the shadow Minister for highlighting that we have had 100 days as the Department for Business and Trade, during which we have been able to launch the biggest free trade agreement that the UK has seen since we left the EU and since the trade and co-operation agreement. He also mentions a lot of systemic issues, which have been faced globally. He rightly talks about the US IRA and the EU green deal industrial plan, but it is good for me to mention that we are doing a lot in this space. For example, the issue that the automotive industries are talking about relates to rules of origin. This is something that the EU is also worried out, because the costs of the components have risen. This is not to do with Brexit; it is to do with supply chain issues following the pandemic and the war between Russia and Ukraine. I have had meetings with my EU trade counterpart; we are discussing these things and looking at how we can review them, especially as the TCA will be coming into review soon.

[Mr Philip Hollobone (Kettering) (Con)]

What would have been the answer to Question 19? How many businesses were supported by grant funding in North Northamptonshire during the pandemic?

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[James Wild (North West Norfolk) (Con)]

UK Export Finance plays a vital role in supporting export opportunities, but a company in my constituency is having difficulties landing support to secure a contract based in one of our Trans-Pacific Partnership area countries. Will my right hon. Friend meet me to discuss this and how we can support that business?

[Kemi Badenoch]

I thank my hon. Friend for raising that. I will see whether I can get a meeting with him, but, if not, I will make sure that one of my officials is able to look into this issue specifically for him.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

T6. I am sure that you, Mr Speaker, and everyone here will wish the Red Lion in Ealing well under its new management. It even does food for non-drinkers such as me. Can Ministers work with Ofgem to find a sustainable solution to energy bills, and with the Home Office to redefine chefs as a shortage occupation, to stop the Red Lion being one of the record number of pubs going to the wall?

[Kemi Badenoch]

I thank the hon. Lady for raising that issue. As I said earlier in reply to a question about energy support for small businesses, we do know that businesses are facing high energy costs. The Government are currently paying about half of everyone’s energy bills. I talked about the energy bill relief scheme and the energy bills discount scheme. We are doing everything we can to support businesses in the hospitality sector, but if there is something that is specific outside that, I ask her to please write to us and we will see whether there is any further support that can be offered.

[Richard Foord (Tiverton and Honiton) (LD)]

T7. According to the website for the Department for Business and Trade, the Department is supposed to“shape our rules to ensure businesses thrive”. Edenvale Turf is a successful small and medium-sized enterprise in my part of Devon and it employs more than 20 people. Older Edenvale workers have grandfather rights as supervisors, but they have been told that they will no longer be eligible to act as turf-cutting supervisors without taking a National Vocational Qualification. Will the Minister meet me to discuss how the Government might prevent scores of older, experienced people from leaving the workforce by getting out of the way and ensuring that businesses thrive?

[Stephen Kinnock (Aberavon) (Lab)]

I am honoured to chair the all-party group on steel, and, as such, I have invited the Secretary of State to meet us, as all four of her predecessors have agreed to do. I am very disappointed that she has declined to do so. I urge her to reconsider that position.

The US is investing $282 billion in green manufacturing. The Spanish and German Governments are each investing £1 billion in the decarbonisation of their steel industries. Labour would match that opportunity with a £3 billion clean steel fund, but the Government’s response to date has been woefully inadequate. When will the Secretary of State bring forward a steel transition strategy that matches up with what our competitors are doing and that matches the ambition of our professional and dedicated steelworkers?

[Kemi Badenoch]

I have not declined to meet the all-party group on steel; I just said that it was subject to diary requirements. Where I have been is in the hon. Gentleman’s constituency, visiting the steelworks. I did notify him before we went there, but he showed absolutely no interest in accompanying me to visit the steelworks in his constituency. We are spending quite a lot of money on supporting the steel industry. We look at what has happened at Teesside and how we have regenerated the former steelworks. Those on his side of the House, however, have spent most of their time smearing the Mayor of Teesside and making it very difficult for the businesses there to continue to make the investment they need in order to help turn the sector around.

[Judith Cummins (Bradford South) (Lab)]

Marshalls Bakery, a small business in my constituency, has just closed its doors after 43 years of trading. The owners told me that they were unable to withstand the combined pressures of covid, rising wheat and container charges and high energy costs. They feel let down and are angry at the lack of Government support for businesses such as theirs. Can the Minister tell me what further steps he is taking to ensure that other small businesses can survive in this challenging climate to provide the certainty from Government that they so desperately need?

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[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

Large global car makers have warned that the UK’s transition to electric vehicles will be impeded if the UK Government and the EU do not delay the stricter rules of origin, which could add tariffs on car exports. Will Ministers negotiate on the issue to safeguard the UK’s automotive industry?

[Kemi Badenoch]

The answer is yes; we are actively working on the issue, and we are not the only country impacted by it. Just yesterday, officials from Germany were talking about how they needed to look into it. It is due to the rising cost of components, which we will look at as part of our trade and co-operation agreement, but it is something that both sides are interested in resolving, so I assure the hon. Lady that we are actively working on it.

[Alison Thewliss (Glasgow Central) (SNP)]

Businesses and organisations in my constituency, and no doubt beyond, have ended up marooned on exceptionally high energy tariffs because they were forced to sign contracts at the height of the crisis. What conversations have Ministers had with Ofgem and with the energy companies to see what can be done to support those businesses, as those tariffs will be a drag on their future growth and development, and in some cases threaten their very survival?

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[Kemi Badenoch]

indicated dissent.

[Mr Speaker]

First of all, that is a point of correction rather than a point of order, but if somebody has made a mistake in the information given to the House, it must be corrected. I will leave that to whoever is right or wrong, and I am not going to make a judgment.

[Kemi Badenoch]

Further to that point of order, Mr Speaker. I will write to the hon. Gentleman. I do not believe that what he has said is the case, but I will check the records and make sure that he gets a response to the correction he has made.

[Mr Speaker]

Thank you, Secretary of State. Please check, but please also correct the matter in writing for the record of the House—if that was the case, may I add?