(6 years, 2 months ago)
Commons ChamberThe right hon. Gentleman makes the very important point that we have seen progress in renewables and that we are seeing progress in storage. Today, nuclear provides just over 20% of the electricity we consume and wind provides 5.5%. My view is that we should have diversity in our energy supply—the wind will not supply all our needs every day. His point about storage technology is correct and he knows from the industrial strategy that we are investing in its development, but it is not at the stage where it can offer the reliable baseload power that nuclear, which supplies 20% of the UK’s electricity, offers now. That is a very important part of the mix.
Horizon Nuclear Power employs 350 people in my constituency, and I visited Hitachi in Tokyo fairly recently, so I welcome the Secretary of State’s announcement today. Does he agree that the fault over the past 30 years has been the failure of successive Governments to replace the existing nuclear power stations? I urge him to press ahead with these projects for the very reasons that he has given, of security of supply and the reduction of emissions.
I agree with my hon. Friend. It is not a positive reflection on previous Governments that, knowing that this important contribution of more than 20% of our power supply was coming to the end of its life in the decade ahead, no plans were made to replace it. The fact that we now have a pipeline of nuclear power plants will provide confidence that that source of energy will be maintained and, as we have discussed, provide important economic opportunities for people to enjoy successful careers and prosperity in that industry.
(6 years, 6 months ago)
Commons ChamberThe hon. Lady understands the constraints that I have in any particular takeover. As a feature of our economy, it is very important that we have investment into our companies from those with the capital to do so. That is why we have a regime that limits the grounds for intervention, but there are certain grounds that I will have to consider during the time ahead.
The sector has huge growth potential. The Government support the industry through the aerospace growth partnership and have committed £3.95 billion for it, which already supports 200 companies, including Safran and GE Aviation in my hon. Friend’s constituency.
(6 years, 10 months ago)
Commons ChamberI am pleased that the hon. Gentleman supports our opposition to the proposed sanctions. If he has studied the form in these matters, he will know that the initial determination was not entirely unexpected by any of the parties, which was attested to by the Government of Canada. We have an outstanding case that there is no detriment to Bombardier, which we expect to prove along with the fact that the launch aid has been compliant. On our relationship with the European Union, he will observe that this dispute has taken place while we are a member of that Union. That justifies our commitment not just with the European Union but globally to seek a rigorous system of free trade in which there is a fair assessment of complaints rather than these punitive and unjustified tariffs.
I thank the Secretary of State for his statement and congratulate him on the work that he is carrying out in this matter. It is of course extremely important to Northern Ireland that we get this right and protect the jobs and the industry in the Province. May I also ask him if he will—I am sure that he will—seek to strike a balance here? Boeing is a very important customer to many companies in this country, including some in my own constituency, which is very heavily dependent on aerospace.
My hon. Friend makes an important point, which is why many of us in this House are so bitterly disappointed with the actions of Boeing. The company has been the beneficiary of important defence contracts. As many Members know, it is opening an important factory in Sheffield—its first in Europe. A long-term industrial relationship with this country, which it clearly seeks, entails obligations. Those obligations are to treat reasonably and fairly those important parts of our economy that are being attacked without justification.
(6 years, 11 months ago)
Commons ChamberAbsolutely; we are committed to our ongoing membership of the European Space Agency. As I said a second ago, we have just provided €1.4 billion of new funding for its programmes. Teledyne e2v in my hon. Friend’s constituency makes an important contribution to the success of the programmes that ESA is running.
5. What recent assessment he has made of the UK’s manufacturing capacity.
I am delighted that my hon. Friend has asked that question, as we often hear that Britain does not make things anymore. In fact, Britain is the ninth largest manufacturing nation. The sector contributes £168 billion to the national economy and employs more than 2.5 million people directly, and its output has grown by 3.2% in real terms since 2010.
I thank the Minister for that very upbeat response. I, too, get frustrated when I hear people say that we do not make things in this country anymore. My constituency is living testimony to the fact that we do. We have world-leading, cutting-edge companies, particularly in the aerospace and defence industries, but also in other areas of engineering. Should we not paint a rosier picture, not least to help people who are leaving school decide to follow careers in manufacturing? We often forget that many valuable, excellent careers are available in manufacturing, and if we put forward a more rosy picture, people might be attracted into the industry.
I agree entirely. My hon. Friend makes a good case for manufacturers such as GE Aviation and Moog Industrial in his constituency. Productivity, which is the way we drive up earning power across the country, has increased three times faster in manufacturing than in the rest of the economy in the past 10 years. There is much more to do, which is why we have committed to the biggest increase in public science and innovation funding for nearly 40 years; invested nearly £300 million in the high-value manufacturing Catapult; brought forward almost 3 million apprenticeship starts, many of which are in these valuable industries; and increased the permanent level of the annual investment allowance almost tenfold, starting on 1 January last year. We want to help businesses export and thrive across the world, and to support them every step of the way.
(7 years, 7 months ago)
Commons ChamberI congratulate the hon. Member for Leeds North West (Greg Mulholland) on his energy in securing this debate. I thank him for the constant help he certainly gives me, as he perhaps gives other hon. Members, when I encounter certain issues or problems with tenants and leaseholders of pubcos in my constituency
I declare a non-registered interest in that my sister is the tenant of a pubco. Some of my remarks have been generated by my experience in that respect, but not exclusively so, because I have a large number of pubs in my constituency. One or two of them are now closed and are being changed into housing or car parking. The concern about pub closures and about the lack of profitability of many pubs is my motivation for taking part in this debate.
Let me say from the outset that I am not instinctively opposed to the pubco model as such. It has a number of advantages. It allows people with very little capital to go into the pub trade in the first place. In ordinary circumstances, the pubco takes responsibility for the building and exterior work, which can be very expensive, as we all know. When the system works well, the pubco can provide some professional back-up. The model provides access to a wide range of beers. It does not insist that wines and spirits are included in the tie, although I may come back to that point. It provides an opportunity for the landlord to run a restaurant on the premises, and it provides accommodation where the landlord can live. There are some good aspects of the pubco model, in theory at least, so I am not out to attack pubcos as such.
In practice, however, there have been a lot of problems. For example, rents have been very unfairly assessed in many cases. They are based not only on the profit that the pub makes from the tied beer, but on the anticipated profit that it might get, in certain circumstances, from food. The pubco benefits from the sale of its own beer, but when the business does better, the rent is quite often increased, even though the pubco has benefited from the extra beer sales, which seems quite unfair. Pubcos sometimes insist that landlords go on educational courses—it really stretches the imagination to believe that someone who has been in the trade for a long time actually needs to go on such courses—and the pubco benefits from the cost of the courses.
On many occasions, pubcos insist that landlords use the pubco’s own insurance policies, which are enormously more expensive than those that can be found elsewhere in the market. They will not allow another product to be used unless the wording of the alternative insurance policy is identical, which seems very unfair. This costs landlords an awful lot of money. I have even known cases in which the tenant or leaseholder has been told that he must take out an insurance policy that covers the building, even though they are not responsible for the building. Tenants are charged for cover for fixtures and fittings that is not necessary in many cases, and in which the assessed value of the fixtures and fittings is far greater than their actual value, so the landlord again loses out in such cases.
So there are all those problems and the rate of pub closures persuaded Parliament to change the law, but as the hon. Member for Leeds North West accurately and comprehensively showed, the legislation is not working as it should. For example, confusion surrounds who is entitled to the free-of-tie option. Some landlords feel that only leaseholders or protected tenants are eligible. That needs clarifying and I hope that the Minister can do that for us today.
Some tenants are not protected under the clause in the Landlord and Tenant Acts that provides that a tenancy or a lease has to be renewed unless the organisation that owns the building wants to take it back for its own use. Many tenants or leaseholders have that clause struck out in the agreement that they reach. That is all well and good until they get to the point when they need a new tenancy or a new lease and they ask the pubco for a free-of-tie option. Because they are not protected, the pubco can simply refuse to renew the tenancy. Is that fair? I suggest that it certainly is not. Again, I would appreciate some clarification of the exact position. It is an important matter. In answer to a recent written question, I was told that around 11,500 tenants are protected by the code, but there are many more pubs than that in the UK. It is not always easy to get a new tenancy if tenants ask for a free-of-tie arrangement.
The pubcos also often use outside agencies to negotiate the new tenancies, including chartered surveyors, who probably do not understand the local trade, if they understand the trade at all. I have also received complaints that pubcos’ business development managers do not properly discuss the available options with tenants. Tenants are told that even if the pubco is prepared to offer them a new tenancy, the rent might go up considerably. Of course, that is when the adjudicator is supposed to be brought in. Two points arise from that. First, that system makes for bad relations between the tenant and the pubco, and that is not a good situation to be in. Secondly, it poses the question of whether the adjudicator effectively and efficiently engages with pubs and landlords who take cases to them. My experience so far is that that is not happening.
Another tenant told me that the start of his new tenancy—I emphasise “new tenancy”; he has already had one—means effectively having to apply for his own pub as if he is a new tenant, filling in CVs and application forms, having to submit a new business plan and going on training courses, which I mentioned earlier, that he had to attend when he entered the trade. He has been running a pub or a similar establishment for nearly 20 years, so where is the sense and fairness in that?
All that causes a great deal of stress and problems. It is worth pointing out that tenants could fear—and end up—being not only out of work and out of business, but out of a home, because the pub is their home. It is unlikely that, in the course of being a pubco tenant, they have been able to build up sufficient capital to buy a new home or a new business. They are in a precarious position, and the House of Commons did not intend that when it passed the legislation.
The value of pubs to their communities, particularly in rural areas, is enormous. They are often meeting places, and places where people can dine together, clubs and societies can be formed and friendships can be made. Pubs also raise a lot of money for charities—that is often forgotten. Pubs are valuable community assets. I ask the Minister, as far she can today or following the debate, to try to answer some of the questions and consider whether anything else can be done, as the hon. Member for Leeds North West said, to give effect to the law and to what the House of Commons intended when it introduced the changes.