Oral Answers to Questions

Lord Harrington of Watford Excerpts

Tuesday 8th January 2019 Commons Chamber

[Kevin Foster (Torbay) (Con)]

1. What steps his Department has taken to support businesses to create highly skilled jobs in Devon and Cornwall.

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

Happy new year to you, Mr Speaker, and to everyone else. The two local enterprise partnerships covering the area—Cornwall and Isles of Scilly LEP, and Heart of the South West LEP, which includes Devon—are receiving £317 million through the local growth fund to drive regional development. That includes a £3 million investment in the Electronics and Photonics Innovation Centre at the White Rock business park in Paignton, which helps to support skilled jobs in a key local growth sector.

[Kevin Foster]

As my hon. Friend mentions, Torbay’s £8 million EPIC centre will open later this year, helping to boost our vital photonics industry. What further support can his Department offer to help boost Torbay’s high-tech sector?

[Richard Harrington]

I congratulate my hon. Friend on everything he does for employment in this area and in his constituency. He knows that my Department is working with Heart of the South West LEP, which is leading the development of our local industrial strategy. Torbay is actively engaged in that work. I believe the strategy will identify the particular strengths of the region and future opportunities for increased productivity, including in sectors such as photonics.

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

The development of marine industries in Plymouth and across Devon and Cornwall is a really important part of our local economy. Will the Minister agree to meet a delegation from Plymouth to look at how the creation of the UK’s first national marine park could trigger more investment in our marine technologies and industries in the west country?

[Richard Harrington]

It would be a pleasure. The hon. Gentleman and I have met before to discuss such subjects, and I am happy to do so again.

[Derek Thomas (St Ives) (Con)]

In my constituency, 85% of employees are employed in small businesses, which tell me they struggle to find the skilled workers they need. What can my hon. Friend’s Department do with the Treasury and the Department for Education to ensure that small colleges in particular have the funding they need to provide those skills?

[Richard Harrington]

As my hon. Friend knows, my Department is part of the picture; he correctly says the DFE is responsible for skills, but that is an important part of our industrial strategy, both nationally and locally. We are really pushing to put the skills agenda at the top of LEP programmes and everything else to do with that, because we realise, as he says, that small business will power the economy of the future.

[Scott Mann (North Cornwall) (Con)]

The south-west is one of the fastest growing economic areas in the country, predominantly in tourism and tech. With the devaluation of the pound, many people have decided to have holidays in Cornwall, and we have tech-based businesses such as Microtest, a health-based solutions company in my constituency. People are making lifestyle choices about where in the country they want to live. What more can we do to facilitate moves away from the city to the coast?

[Richard Harrington]

As someone with previous experience of business in the south-west, in the tourism industry, I understand exactly what my hon. Friend says. The Government’s strategy is very much based on regional devolution—LEPs in particular—and areas such as his will see the benefits of that in the future.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

2. What steps he is taking to maintain cross-border supply chains after 29 March 2019.

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[Peter Aldous (Waveney) (Con)]

5. What recent steps he has taken to support businesses and their supply chains.

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

The Government support businesses throughout the UK by encouraging innovation, investing in infrastructure and skills and, more importantly, building long-term partnerships with businesses as part of our modern industrial strategy. We have demonstrated our support for the importance of our supply chain through the automotive, aerospace and nuclear sector deals.

[Peter Aldous]

I am grateful to the Minister for that reply. Fabrication yards in UK ports have supply chains that extend throughout the UK, but there is real concern for their future. Can the Minister confirm that the oil and gas and the offshore wind sector deals will make provision for realising the full potential of those yards and their supply chains?

[Richard Harrington]

I certainly can, and I welcome the deal proposals that have been put forward by both the offshore wind and the offshore oil and gas sectors.

[Debbie Abrahams (Oldham East and Saddle- worth) (Lab)]

24. It is almost a year since Carillion collapsed, leaving losses to small business supply chains of more than £2 billion. My constituent, Neil Skinner, was among those affected. Will the Minister and the Government support my ten-minute rule Bill, which is coming to the House next week and would introduce project bank accounts for all public sector contracts in order to prevent such losses to small businesses?

[Richard Harrington]

I am sure that the hon. Lady will be delighted to know that we are working closely with the sector. I have some experience of project bank accounts in the construction sector and I have seen them work. We will look very carefully at this.

[Nic Dakin (Scunthorpe) (Lab)]

Precisely what support is being given to the steel industry and its supply chain?

[Richard Harrington]

The hon. Gentleman and I frequently speak about the steel industry, and I meet regularly with the trade body, UK Steel, and all the different companies to monitor the future carefully. The industry is important to us, and I am still hopeful that we can work on a sector deal, so I am interested to hear proposals from the various companies.

[Mark Garnier (Wyre Forest) (Con)]

6. What steps he is taking to support the UK space industry.

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[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

11. What steps he is taking to support the manufacturing and automotive sector.

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

The automotive sector is one of the great success stories of our country, and our sector deal is a good example of how we will continue to support it going forward. We have committed around £1 billion over 10 years up to 2023 through the Advanced Propulsion Centre to research, develop and commercialise the next generation of low-carbon technologies, to keep us at the cutting edge of the automotive industry’s development.

[Bridget Phillipson]

The UK car industry is under huge pressure, yet far from providing the certainty that the sector needs, we will be debating our trading relationship with the European Union for years to come. Is it not the case that the deal that the Government are putting forward fails to protect tens of thousands of highly-skilled automotive jobs in my region? Not only that, but it is far worse than the deal we have now.

[Richard Harrington]

I am sure the hon. Lady knows that the deal has been backed by everybody in the automotive sector. I meet regularly with them and they have been outspoken about the perils of defeating the Prime Minister’s deal. I hope that the hon. Lady will think about that when she goes through the voting Lobby.

[Stephen Kerr (Stirling) (Con)]

What is the Minister’s response to the report published last month by the Business, Energy and Industrial Strategy Committee—the membership of which, by the way, includes the Scottish National party Front-Bench spokesperson, the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry)—which concluded:

“The consistent and overwhelming message expressed by”

business

“is that to make…decisions they need certainty and it is for that reason they support the Withdrawal Agreement”?

[Richard Harrington]

As ever, my hon. Friend has absolutely nailed this. The automotive sector, like the BEIS Committee, is totally in favour of the Prime Minister’s deal. I am sure that the SNP spokesman has listened carefully to what my hon. Friend said, and I am sure that he will be supporting the deal next week.

[Carol Monaghan (Glasgow North West) (SNP)]

18. The Scottish Government’s £18 million advanced manufacturing challenge fund is at serious risk of being undermined by Brexit, with the Bank of England’s analysis showing that the UK relies on the EU for more than 30% of manufacturing sales. When will the UK Government start listening to the majority of Scots and protect Scotland’s economy and jobs by keeping us in the single market and the customs union?

[Richard Harrington]

I must remind the hon. Lady of my answer to the previous question: the best thing for the Scottish economy is the Prime Minister’s deal. I hope the hon. Lady will consider that when she votes next week.

[Mr Speaker]

I am very saddened that the right hon. Member for Birkenhead (Frank Field) is departing our midst. I know he has many pressing commitments and a very full diary, but if he stayed, he might get called. It would be very sad to lose the right hon. Gentleman’s pearls of wisdom.

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

You are racing ahead, Mr Speaker; we had got so far behind.

My hon. Friend should know that we are strongly supporting the aerospace industry through our aerospace growth partnership, which includes supporting business with nearly £2 billion of public research and development funding from 2013 to 2026. The sector deal for aerospace includes £125 million of funding to support the electrification of flight, developing new aircraft technologies and transport concepts. I am sure that will be excellent for your future holidays, Mr Speaker.

[Fiona Bruce]

What plans do Ministers have to extend the Sharing in Growth scheme in the aerospace industry? It has helped Congleton business Senior Aerospace Bird Bellows to improve productivity and secure new orders. The company is very much looking forward to receiving the Minister on his planned visit to Congleton in March.

[Richard Harrington]

I am very much looking forward to seeing my hon. Friend on that visit. We are in dialogue with senior management at Sharing in Growth about the scope to extend the programme further, and that will continue ahead of the comprehensive spending review.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

The Space Studio School in Feltham, started by the Rivers Academy, continues to innovate, bringing about high-quality science education and industry-related work, and engaging with the National Space Centre, the European Space Agency, NASA and the aerospace industry around Heathrow. Does the Minister agree that even stronger relationships between schools and industry are vital to ensure that we stay competitive? Will he agree to visit the Space Studio in west London to see what is being done there and what more can be done to improve opportunities for young people?

[Richard Harrington]

Yes and yes.

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

The Minister will be aware of the problems as well as the possibilities for Bombardier in east Belfast, as my hon. Friend the Member for Belfast East (Gavin Robinson) has raised them consistently. Given the job loss announcements several weeks ago, will he undertake to do whatever he can on the possibilities for expansion next year?

[Richard Harrington]

The hon. Gentleman knows, I hope, that Bombardier is a company close to my heart. I speak regularly to him and his colleagues and to the company, and I will do anything I can to ensure that company’s prosperity.

[Tommy Sheppard (Edinburgh East) (SNP)]

13. What recent discussions he has had with the Chancellor of the Exchequer on fiscal support for businesses based in Scotland to prepare for the UK leaving the EU without a deal.

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[Maggie Throup (Erewash) (Con)]

Prior to Royal Assent for phase 2b of High Speed 2, will my hon. Friend consider establishing a cross-departmental taskforce with the Department for Transport, to provide businesses that are being forced to relocate with the necessary advice and support, including financial support?

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

My hon. Friend should know that I have listened carefully to her question. In the first instance, a meeting between myself, herself and a representative from the Department for Transport might be a way to get that moving.

[Frank Field (Birkenhead) (Ind)]

Last week I wrote a letter to the Secretary of State about the taskforce in Liverpool and Birkenhead that wishes to save Cammell Laird from any further redundancies. Will he meet us this week, as a matter of urgency?