Oral Answers to Questions

Lord Harrington of Watford Excerpts

Tuesday 20th November 2018 Commons Chamber

[Preet Kaur Gill (Birmingham, Edgbaston) (Lab/Co-op)]

17. What steps his Department is taking to safeguard manufacturing jobs after the UK leaves the EU.

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

The declaration on the future relationship with the EU sets out a joint ambition for zero tariffs and restrictions in goods trade, and an ambitious customs arrangement. Our industrial strategy will ensure that the UK remains one of the most competitive locations in the world for manufacturing. We have committed £140 million to the “Made Smarter” industrial digitalisation programme, which will help our manufacturing sector adopt new technologies and skills.

[Sarah Jones]

The Minister mentions the declaration, but of course it is seven pages long and offers no reassurance to businesses in Croydon. Recently I visited a Croydon business that is currently looking to move to Amsterdam. What more can the Government provide to ensure that that business and many more stay in the UK?

[Richard Harrington]

The hon. Lady’s constituency must contain businesses different from those I heard at the CBI yesterday, where the Prime Minister was applauded for precisely this approach; different from businesses in my constituency; and different from all the business leaders who have supported the Government’s proposed deal with the European Union.

[Preet Kaur Gill]

Manufacturing accounts for 11% of jobs in the west midlands, one of the highest percentages for any region, and the region has one of the highest shares of goods imports and exports— 47% of its goods go to the EU. Does the Minister agree that Labour’s plan for Brexit, guaranteeing a new, comprehensive and permanent customs union and a strong single market relationship that allows British business continued access to European markets for both goods and services, is the deal that UK manufacturers need to thrive?

[Richard Harrington]

As far as I am aware, the Society of Motor Manufacturers and Traders and the EEF, the manufacturers’ organisation, and all other organisations representing those industries in the midlands, in the hon. Lady’s constituency and surrounding constituencies, are very much in support of the Government’s policy for frictionless trade in the future.

[Mark Pawsey (Rugby) (Con)]

The Secretary of State is aware of the threat to 190 skilled engineering jobs at GE Energy in Rugby. This has nothing to do with Brexit; rather, it is to do with a downturn in activity of the company’s traditional base. What advice can the Minister provide to the workforce and the local management team to secure this manufacturing activity in Rugby?

[Richard Harrington]

As ever, my hon. Friend is fully in support of so many businesses in his constituency. As he knows, my door is open to him and the company, to discuss any possibilities of helping them. I have seen many very good businesses in his constituency and I am excited about the prospects there for high-quality employment for his constituents.

[Philip Davies (Shipley) (Con)]

The question is really whether we leave the EU at all. Yesterday, on the “Today” programme, the Secretary of State was arguing in favour of a proposal by the EU to extend the implementation period to the end of 2022. Was the Secretary of State doing his usual EU freelancing, or is that now the official policy of the UK Government?

[Richard Harrington]

The Government want to finalise the future trading relationship with the EU as quickly as possible. My right hon. Friend the Secretary of State mentioned one alternative to achieve that.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

In addition to the threat that leaving the EU poses to skilled manufacturing jobs, the Minister will be aware of the devastating news that Michelin plans to close its factory in Dundee, threatening 850 such jobs. Will the Minister work closely with the Scottish Government to ensure a future for that plant?

[Richard Harrington]

I reassure the hon. Gentleman that I have spoken to the company and I have sought assurances about support available to staff. The Secretary of State and I have spoken with the Scottish Government’s Cabinet Secretary for Finance, Economy and Fair Work and with the Secretary of State for Scotland. The Department is playing an active role in the Dundee action group.

[Drew Hendry]

I thank the Minister for that answer, but his Government can do one thing right away to give immediate and future help. The UK Government are currently £50 million short on matching the Scottish Government on the Tay cities deal. Is this to be, like Aberdeen, Inverness and Stirling, part of a near £400 million shortage of match funding and a failure of the UK Government on city deals, or will he do the right thing and fight for match funding to support Dundee at this challenging time?

[Richard Harrington]

As the hon. Gentleman knows, each deal with each city is an individual one based on the circumstances of that city. I see him regularly, and it would be a pleasure to meet him to discuss his constituency and the proposed city deal.

[Matt Western (Warwick and Leamington) (Lab)]

18. [R] In terms of leaving the EU and our manufacturing sector, does the Minister not accept that staying in the customs union and in a form of single market is absolutely what is demanded in the long term—not “xx”—by our manufacturing sector?

[Richard Harrington]

The hon. Gentleman must be aware that the EEF has warmly accepted the Government’s proposals for a future trading relationship that will provide the kind of frictionless trade essential for his constituents and everyone else who works in the motor vehicle industry and the manufacturing sector.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

“High tech manufacturing in every part of the country”—the Secretary of State’s words. General Electric is closing in Rugby and Michelin is closing in Dundee. From Swansea to Copeland to Lowestoft, his energy policies destroy more jobs than they create. By ending the enhanced capital allowance, the Budget took hundreds of millions of pounds from manufacturers, while doling out billions in corporate tax cuts. Manufacturing demand is now dropping at its fastest rate since 2015, yet the Cabinet is in meltdown over whether to walk out on the customs union in four months with no deal or in 24 months with the Prime Minister’s plan. Does the Minister agree that a permanent customs union is essential for British manufacturing and British jobs?

[Richard Harrington]

It will come as no surprise to you, Mr Speaker, that I disagree with a lot of what the hon. Lady has said. She says the Cabinet is in meltdown. It is not. [Interruption.] The Cabinet is not in meltdown. On her substantive question about energy, to the best of my knowledge, offshore energy is producing a lot of jobs, including in Tyneside. [Interruption.] It very much is. She must be aware, as far as the customs union part of her question is concerned, of the importance of the Government’s proposals, which provide the benefit of a very close relationship with all the countries in the EU. They also mean that this country will be able to enter into negotiations to sign free trade agreements with countries all over the world.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

5. What assessment he has made of the potential effect of the merger of Asda and Sainsbury’s on (a) workers, (b) supply chains and (c) consumers.

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[Damien Moore (Southport) (Con)]

7. What the timetable is for bringing forward a tourism sector deal under the industrial strategy.

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

Sector deals are part of our industrial strategy and vital in building strategic partnerships with the Government and mutual commitments to boost productivity in specific sectors. We have already concluded seven and we are working on more. Under the auspices of Steve Ridgway, whom I thank for his leadership, we have a lot of interest from the tourism sector in exploring a sector deal and we are doing so.

[Damien Moore]

Could my hon. Friend elaborate on whether there will be a similar deal for the hospitality industry in the new year?

[Richard Harrington]

Before I saw the light and went into politics, I spent 25 years in the tourism and hospitality industry, and there is nothing I would like more than to conclude a sector deal with it. I have met with officials and industry leaders, have the full support of my right hon. and learned Friend the Secretary of State for Digital, Culture, Media and Sport and look forward to concluding a deal in the new year.

[Stephanie Peacock (Barnsley East) (Lab)]

Tourists spend a lot of money in this country in tips, yet it is two years since the Government said they would act to stop rogue bosses swiping tips. I raised this at Business questions last week, and it was suggested that I come here, raise it with the Minister and ask when the Government will bring forward primary legislation to stop bosses swiping tips that should be going to hard-working staff.

[Richard Harrington]

I am delighted to confirm to the hon. Lady that we are definitely introducing legislation on this subject. We will do so as soon as we possibly can within the parliamentary timetable.

[Sir Patrick McLoughlin (Derbyshire Dales) (Con)]

In his first answer, the Minister said that seven sector deals had been concluded. How many are still under negotiation and why are they taking so long?

[Richard Harrington]

Actually, I correct my right hon. Friend. I said that six sector deals had been concluded and more are in the pipeline. They are very complex. They involve a lot of industry money and many industrial partners who have never been involved in deals with the Government before. I would be delighted to meet him at any time to discuss how I am pushing these on as quickly as I can.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Is the Minister aware that tourism, just like the manufacturing sector, particularly in Yorkshire, is finding it very difficult to get skilled people, especially as more Europeans go back to their home countries in fear of Brexit? What is he going to do about attracting and retaining skilled workers in tourism and manufacturing?

[Richard Harrington]

I am very aware of the hon. Gentleman’s point. Only last week, I met with Hilton Hotels and Resorts, a big employer in this sector, while the Grove, in my own constituency, has raised exactly the same point. The industry has a high turnover of labour and, as he says, has depended for some time on labour from abroad. I hope that more UK people will enter the hotel and hospitality industry, but the fact is that in many areas there is almost full employment.

[Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)]

8. What discussions his Department has had with representatives of the Post Office on its plans to close 74 Crown offices.

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[Alan Brown (Kilmarnock and Loudoun) (SNP)]

9. What steps he is taking to ensure that value for money is achieved from energy generated from proposed new nuclear power stations.

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

As the Secretary of State said in his statement to the House on 4 June, in our negotiations with nuclear developers, a key focus of discussions will be achieving value for money and lower electricity costs for consumers.

[Alan Brown]

The National Audit Office has already confirmed that Hinkley Point C was a bad deal. Half the existing nuclear power stations will have closed by 2024 and the rest by 2028, and no nuclear power stations can be built in time to replace them. Why are the UK Government tying up energy policy for the next 50 years in deals that are poor value for money?

[Richard Harrington]

As far as I know, the hon. Gentleman and his party are against nuclear power altogether, so his is an interesting question. The Government, on the other hand, are committed to a diverse energy mix in which nuclear power plays a crucial part. Nuclear power is critical to our transmission to a low-carbon society, providing continuous, reliable, low-carbon electricity. We are also leaders in cutting emissions by renewables, and nearly 30% of our electricity comes from renewable sources.

[Mr Jim Cunningham (Coventry South) (Lab)]

10. What steps he is taking to help reduce the incidence of seismic activity caused by hydraulic fracturing.

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[Steve Double (St Austell and Newquay) (Con)]

Lithium extraction has the potential to make a significant contribution to the aims of our industrial strategy, as well as being a huge boost to the Cornish economy. May I invite the Secretary of State to meet businesses that are seeking to exploit this new opportunity? If he would like to come to Cornwall to do that, he would be very welcome.

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

My hon. Friend should know that I would be delighted to meet him, and anybody he thinks is suitable, in order to achieve the exploitation of the luxurious resources deep in his constituency.

[James Frith (Bury North) (Lab)]

T7. After the capital shortfall warnings issued by Interserve this week, what assurances can the Secretary of State give the House that Interserve will not go the way of Carillion? Will he commit to press Interserve to make sure that subcontractors are paid up to date and are not at risk of carrying the can for another outsourcing collapse?

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

T8. Cammell Laird has won £619 million of RAF contracts, but almost 300 of its workforce, some of whom are my constituents, are at risk of redundancy. Will the Secretary of State speak to Defence Ministers to make sure that the Government will step in to fill any gap?

[Richard Harrington]

I assure the hon. Gentleman that I have met the chief executive of Cammell Laird, and I am in discussions with the Ministry of Defence and all other interested parties.

[Dominic Raab (Esher and Walton) (Con)]

I welcome my right hon. Friend the Secretary of State’s Green Paper “Modernising consumer markets”. When is a Government response expected? Does he agree that, from mobile phone bills to foreign currency exchange, we should use transparency and competition to end consumer rip-offs?

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[Kirstene Hair (Angus) (Con)]

We recently heard the disappointing news of the closure of the Michelin factory in Dundee, with the company citing cheaper imports as the reason. It will cause the loss of 845 jobs, many of which will be in my constituency. Will my hon. Friend assure me that the industrial strategy will look into ways to support traditional industries as well as new technologies?

[Richard Harrington]

I can assure my hon. Friend of that.

[Several hon. Members rose—]

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[Tom Pursglove (Corby) (Con)]

Will the Minister update the House on recent progress towards a steel sector deal?

[Richard Harrington]

I have regular discussions with the steel sector and hope in future to have news that will please my hon. Friend.

[Dan Jarvis (Barnsley Central) (Lab)]

It was good to see the Secretary of State in South Yorkshire, where we have a strong advanced manufacturing offer. Will he continue to work with us in future?

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[Bob Blackman (Harrow East) (Con)]

What action is the Minister taking to promote the development of small-scale modular nuclear reactors so that we can diversify the energy supply?

[Richard Harrington]

rose—

[Mr Speaker]

Small-scale modular?

[Richard Harrington]

Nuclear reactors, Mr Speaker.

[Mr Speaker]

Well done!

[Richard Harrington]

Not that small, though. I am sure that you could do with a personal one sometimes, Mr Speaker.

I assure my hon. Friend the Member for Harrow East (Bob Blackman) that the Government are treating the development of small modular reactors very seriously. A successful conference on the subject was held recently. I am happy to inform the House of future progress.

[Several hon. Members rose—]

[Mr Gregory Campbell (East Londonderry) (DUP)]

Does the Minister think that it would be a good idea to incorporate into the tourism sector deal a fantastic one-off event that occurs next year, after 68 years’ absence, when the Open championship returns to the Royal Portrush golf club?

[Richard Harrington]

What a tempting idea!

[Several hon. Members rose—]