Industrial Strategy

Mark Pawsey Excerpts

Wednesday 18th April 2018 Commons Chamber

[Greg Clark]

It is not a question of admitting to it—I want to boast of it. When I talk about our strengths and talents, those are the strengths of the people of the United Kingdom as workers, researchers and leaders of local economies. The prosperity of our economy is founded on our workforce. The hon. Lady is absolutely right to emphasise the importance of investment in people. I have mentioned investment in research and development, but it is important for her to reflect that much of that is about investment in people, making sure that we have research funding and opportunities for researchers so that we have brilliant individuals as well as physical infrastructure.

When it comes to investment in skills and the workforce generally, the hon. Lady is absolutely right. I have mentioned the importance of skills training. One thing that we and Members from across the UK know is that there are shortages in many parts of the country, particularly in engineering and technology skills. That is before we have the full benefit of the opportunities set out in the industrial strategy, which highlights and commits us to a long-term programme of upgrading not just investment—although that is important—but the prestige attached to technical qualifications in this country, and to emphasising the importance of that. There is, for example, nearly half a billion pounds of investment in teaching maths, digital and technical education.

I am pleased that the hon. Lady mentioned the Matthew Taylor review, because it is exactly the right kind of strategic approach that we should take. We know that new technology is changing the world of work and that it poses challenges to established ways of working. Rather than simply ignoring that and not addressing those changes, in commissioning Matthew Taylor to review the emerging economy we equipped ourselves with some very important reforms that Taylor himself advised we should consult carefully on. That consultation came from a review commissioned by the Government, who absolutely have the intention to deliver on its recommendations. The consultation is the way to proceed with legislation and regulation.

[Mark Pawsey (Rugby) (Con)]

The Secretary of State refers to the prestige of an industrial qualification as a device to attract the most capable people into industry and manufacturing. Does he agree that it is also important for manufacturing to show in a more open way exactly what the manufacturing environment is like now? Far too many people see manufacturing in the style of dirty old factories such as those that existed a generation ago. The manufacturing landscape has changed, but I do not think that we have managed to get that message across to our young people to encourage the brightest and the best to make it a career destination.

[Greg Clark]

My hon. Friend is absolutely right. It is sometimes not known and cannot be seen what modern manufacturing is about. I had the great privilege and pleasure of visiting the Big Bang Fair at the National Exhibition Centre in Birmingham a few weeks ago, which does precisely what he advises. The excitement among the young people there, seeing the possibilities available, was palpable. It does a great job.

I know that you are rightly interested in other Members being able to contribute, Madam Deputy Speaker, so I will make some progress and give colleagues the chance to speak. Along with the measures in the Taylor review, it is very important, when new technologies require different skills from the existing workforce, that we back industry in providing the training that is needed. In that regard, the national retraining scheme being developed in conjunction with employers and trade unions, focusing initially on construction and digital skills, is a very important commitment. It is also vital that we upgrade our infrastructure, whether physical infrastructure or the broadband and mobile connections on which many new businesses depend, and again important commitments have been made in that regard.

When it comes to places, the leadership being given to many of our great cities by elected Mayors, not least those elected last year, must be combined with the ability, powers and resources necessary for them to make a difference to their areas. One of our commitments was a fund to enable local leaders better to connect not just city centres but the networks and clusters of smaller towns around our cities. An early example was the decision by Andy Street, Mayor of the West Midlands, to use the investment available through the industrial strategy to fund a metro extension to Brierley Hill and Wednesbury, which connects two important parts of the west midlands to Birmingham and the wider area.

On the business environment, we know that there is a problem of composition. We have some highly productive, highly performing businesses as well as what the Bank of England has identified as a long tail of less productive businesses, and transmitting the lessons from the best to the others is an important part of the work that we need to do.

I will conclude by saying a word about the importance of particular sectors. We have talked about the north-east and Teesside, the west midlands and other parts of the country. We know that the clusters of excellence in those areas can be very important not only in driving productivity but in attracting new investment and becoming the location of new businesses.

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[Mark Pawsey (Rugby) (Con)]

It was a pleasure to hear the Secretary of State, in his opening remarks, speak of the importance of a strategy to help businesses to create quality, well-paid, sustainable jobs. In any walk of life, we need a roadmap to tell us how to get somewhere. That can be achieved through a strategy that involves both playing to our strengths and attending to our weaknesses. The Secretary of State was very frank about the weaknesses that we face, one of which is the issue of productivity. I want to focus on the five foundations for improving productivity: ideas and innovation, people, infrastructure, the right business environment, and the right places.

Companies and organisations are developing those themes at Ansty Park, in the east of my constituency. The site has been visited by the Secretary of State himself, and the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Watford (Richard Harrington), will recall doing so as well. It came into its own with the development of the Manufacturing Technology Centre, one of the first Catapult centres. I am disappointed not to have heard any acknowledgement from Opposition Members of the role of those centres. The centre will develop ideas, and will enable us to turn discoveries—and we have been great at discoveries—into commercial products. It is changing the landscape of manufacturing. When I first visited it just after my election in 2010, it was a building site; now it has 65 industrial members working in new technologies.

We will also exploit innovation and ideas at the High Temperature Research Centre at Ansty Park, which is the result of a collaboration between Rolls-Royce and the University of Birmingham and a £60 million investment. It measures 62,000 square feet, and provides a unique casting, design, simulation and advanced manufacturing research facility focusing on aerospace.

A newcomer to the site is the London Electric Vehicle Company’s factory, where an investment of £250 million has been dedicated to the construction of the electric taxis that are now on the streets of London. It will provide the clean growth that the industrial strategy is intended to achieve, and it will be supported by the £400 million investment in charging infrastructure. The London EV Company’s new factory at Ansty has been a real success story.

Over the road from the London Electric Vehicle Company is Fanuc, manufacturer of the widest range of robots in the world, and if we want to increase our productivity through investment we will do so through this new industrial landscape. Robots have applications from micro-electronics assembly to the forging of precision aerofoils for jet engines.

We will also create our industrial growth and development through working on our people. The MTC has a state-of-the-art Lloyds bank training centre, opened in 2015 by the former Business Secretary, my right hon. Friend the Member for Bromsgrove (Sajid Javid), and was set up to address the skills gap in UK engineering. Between 2015 and 2020, 1,000 apprentices will be trained in the latest technology.

Importantly, the MTC also engages with the community to support young people into engineering and STEM subjects. A year or two ago, I was with 30 local schoolgirls from Bilton School in my constituency who received the chance to have a hands-on training challenge at the centre.

The site continues to develop. AVL is due to open a new test and engineering centre this spring. It will be operating state-of-the-art testbeds for advanced powertrains, including hybrid and battery electric vehicles. If that is not cutting-edge, advanced technology, I do not know what is.

The site will be added to again very shortly by Meggitt, which has recently been given planning consent by Rugby Borough Council. It is important to recognise the role local authorities can play in achieving objectives: a proactive local authority responsive to new development can achieve these things. Meggitt is developing a £130-million international aerospace and defence engineering centre to serve as a hub for the next generation of world-class innovation in aerospace thermal management technology. That will consolidate Meggitt’s presence in the business and provide a further 1,000 jobs in the area.

I am proud of what is happening in my constituency. It exemplifies what we mean by an industrial strategy, providing an environment for both new and well-established companies to help make the UK a more attractive place to start and grow a business, with a stimulus provided by our link to the first-class research and development opportunities at the Manufacturing Technology Centre.