Oral Answers to Questions

Mark Pawsey Excerpts

Thursday 11th September 2014 Commons Chamber

[Vince Cable]

On the hon. Gentleman’s latter point, he is right that Scottish institutions benefit disproportionately from UK research because of the excellence of their work and that they would no longer be guaranteed access to UK funding streams in an independent Scotland, although I hope they would maintain their excellence. We will certainly try to ensure that SMEs are taken properly into account in the competition for European funding. His point is a good one.

[Mark Pawsey (Rugby) (Con)]

A recent report showed that reshoring is increasing across the economy. That happens when UK companies source more of their products from the UK. It is estimated that over the next 10 years that could create 200,000 jobs and boost output by up to £12 billion. Does the Secretary of State agree that that is an effective demonstration of the increasing competitiveness of the UK economy?

[Vince Cable]

It is. Indeed, reshoring is happening in somewhat surprising areas. I had a meeting only yesterday with representatives of the British textile industry, which almost disappeared years ago. A significant amount of reshoring is taking place because companies want to be close to the market and regard the business environment as attractive. The same is happening in the aerospace supply chain and elsewhere. We are doing what we can to support that through the regional growth fund and other Government schemes.

--- Later in debate ---

[Vince Cable]

Again, I agree with the hon. Gentleman’s basic proposition. As it happens, much of the alarm that was raised some months ago about large American companies taking over British companies or British-based companies on the back of those tax provisions have proved wholly unfounded. He is quite right that takeovers, although they are generally beneficial to the UK economy, should not be driven by artificial short-term tax considerations.

[Mark Pawsey (Rugby) (Con)]

T3. Businesses in Rugby tell me that the changes this Government have made to the employment tribunal system have encouraged them to expand and take on more staff, and the growth in employment demonstrates that. Does the Secretary of State share my concern that Labour’s proposals to scrap our reforms would mean a return to the bad old days when companies were discouraged from taking on that extra person through fear of getting tied up in a weak or vexatious tribunal claim?

[Vince Cable]

Indeed, and the world competitiveness report acknowledged that Britain ranked number four in the world in overall attractiveness in labour markets. My hon. Friend is right that the reforms we have introduced are certainly one factor in that we have had a growth of 2 million in private sector jobs since May 2010. One factor that has not been noted, and certainly has not been noted by Opposition Members, is the very large number of cases now being dealt with by ACAS that would otherwise have gone through an expensive and frustrating legal procedure.