Industrial Strategy

Lord Haskel Excerpts

Wednesday 26th October 2016 Lords Chamber

Asked by

[Lord Haskel]

To ask Her Majesty’s Government whether they have prepared their industrial strategy; and, if so, what it is.

[Baroness Mobarik (Con)]

My Lords, we are in the process of developing an industrial strategy that will embrace the opportunities of our new global role and upgrade our economy so it works for everyone. We are working with the breadth of British industry, local leaders, innovators, employees and consumers to deliver a successful strategy and create the conditions for future success.

[Lord Haskel (Lab)]

The Prime Minister, too, has called for an economy that works for everybody and for business to be more responsible. Does the Minister agree that Section 172 of the Companies Act 2006, which requires directors and managers to have regard to the interests of employees, customers and suppliers, as well as shareholders, does just that? However, this section has never been enforced, so will the Government include enforcement of Section 172 in their industrial strategy and so carry out the policies of the Prime Minister?

[Baroness Mobarik]

I assure the noble Lord that the Prime Minister has made it clear that this new industrial strategy will work for everyone. We are looking at exactly those kinds of issues, such as increasing the scrutiny of our large public and private companies and enabling more informed corporate decision-making. We need to give employees and stakeholders a stronger voice in company boardrooms and we will consult fully with business investors, employee representatives and other stakeholders on the best way to do this. We will welcome your Lordships’ input.