Industrial Strategy

Lord Monks Excerpts

Wednesday 26th October 2016 Lords Chamber

[Baroness Mobarik]

I say to my noble friend that something like this cannot be done overnight. The Prime Minister is absolutely determined to get this right. She wants to lay out a proper industrial strategy, engaging with stakeholders across the country and making sure that we deliver a strategy that makes a difference, and that takes time. We have already started the process and we will develop it over the coming weeks and months. We plan to publish a Green Paper alongside the Autumn Statement which will consult widely with business, local leaders, investors and so on. As I said before, I encourage noble Lords to engage with this Green Paper.

[Lord Monks (Lab)]

My Lords—

[Lord Fox (LD)]

My Lords—

--- Later in debate ---

[Baroness Mobarik]

As I said, we are consulting on it just now, and it will not happen overnight. However, I can say that we will focus on our strengths. That does not mean to say that we are just picking out winners. We are tailoring our approach to the needs of different sectors and looking at our proven strengths—a cornerstone of good strategy—and this country has no shortage of those, such as our world-beating aerospace and automotive industries. We recognise that we must continue to support our successful industries and build upon the significant progress that has been made through the existing sector strategies. However, we need to create an economy where new entrants can come in, new businesses can be created, and new companies can challenge incumbents.

[Lord Monks]

My Lords, in a recent statement, the Prime Minister specifically mentioned worker representation on company boards of directors, and she is receiving support from some surprising quarters—not just the TUC but Legal & General, Aberdeen Asset Management and others in the investment community. Perhaps I may press the Minister a little further to say exactly how and when this particular exercise will be carried out, with the Government giving effect to the Prime Minister’s wishes.

[Baroness Mobarik]

This will be part of the Green Paper. However, I do not want to pre-empt public debate on the discussion document that we will be publishing later this year inviting views on a range of options for strengthening corporate governance, including strengthening shareholder powers on executive pay and giving a stronger voice to employees and other stakeholders on company boards.