Achieving Economic Growth

Mark Pawsey Excerpts

Wednesday 18th May 2022 Commons Chamber

[Mr Clarke]

There are half a million more people on payrolls, and I was very clear about that. The headline unemployment rate is 3.7%, which we should celebrate. It is a genuine public policy success and contrasts starkly with the situation we inherited in 2010. I, certainly, am determined to continue supporting it by making sure our economic policy is the right one.

The Labour party has only one answer to every problem: spending more. It has made, by our calculations, £418 billion-worth of spending commitments, while setting out precisely how £8 billion would be funded. The scale of spending that Labour would undertake is vast, but what concerns me, and should concern us all, is the lack of seriousness with which Labour considers how to fund its commitments. That is the luxury of being in opposition, whereas in government there is no ducking away from the big challenges with which we are grappling.

Achieving economic growth is not as simple as putting one’s foot down on the accelerator. It is a far subtler and more balanced enterprise that includes multiple carefully weighed decisions that are designed to mutually reinforce each other over time.

[Mark Pawsey (Rugby) (Con)]

Does the Chief Secretary to the Treasury agree that the private sector is our economy’s engine of growth? Businesses are getting up, working hard and developing the growth, jobs and prosperity this country needs. We cannot rely on the state to do everything. Private businesses must be supported.

[Mr Clarke]

My hon. Friend is exactly right. He is always a fantastic advocate for the car industry in his part of the midlands. We need to make sure that the engine of growth is able to fire, and our plan for growth, published last year, sets out how we will increase investment in the three pillars of growth: infrastructure, skills and innovation.

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[Mark Pawsey (Rugby) (Con)]

It is a pleasure to follow the hon. Member for Norwich South (Clive Lewis), who addressed the topic of today’s debate, “Achieving economic growth”, by seeming to argue that economic growth is not only not important, but not desirable. I wonder therefore whether he will be having a word with his Front-Bench team, who seem to have spent most of the afternoon criticising the Government for not delivering sufficient economic growth, but that is a matter for him.

It is a pleasure to take part in today’s debate, to address the issue in question and to raise one or two points about the Queen’s Speech. Successful growth will be delivered through the effective role of the private sector. It is the private sector that is the wealth generator. I was delighted that the Chief Secretary accepted that reality in his opening remarks.

Both the economy generally and individual businesses face exceptional challenges, ones that have not been encountered for generations. Those challenges revolve around the recovery from the covid pandemic and, now, the need to address the issues arising from the conflict in Ukraine and its impact on energy prices.

I recently spent a really interesting lunch time with the Coventry and Warwickshire chamber of commerce. I expected those who attended to talk to me about supply chain problems and the challenges presented by inflation, but the biggest single issue they wanted to talk about was ensuring that they had a workforce with the right skills and the recruitment and retention of their staff. We have heard about jobs from many Members, not least my hon. Friend the Member for South West Bedfordshire (Andrew Selous), who spoke about the “jobs miracle”. The ONS tells us that unemployment is at its lowest since 1974 and job vacancies are at a record high of 1.295 million. In fact, we have more vacancies than people looking for work. The unemployment rate is now just 3.7%, which is the lowest rate for 50 years. The figures for my constituency tell exactly the same story, with unemployment falling and vacancies rising.

However, the current situation creates real challenges for businesses. As consumers, we recognise the effect of staff shortages: short-staffed businesses do not have the time to answer the phone or respond to inquiries, and there is a decline in service levels. Significantly for both businesses and the broader economy, opportunities are missed. In previous years, UK companies were able to look to eastern Europe to fill vacancies when they had staff and skills shortages, but that has become less of an option following our departure from the European Union. Businesses have raised with me the loss from the workforce of people in the 50 to 70 age demographic who either lost or left their jobs during the pandemic. The Government should focus on how we might get such experienced people back into the workforce.

There have been a lot of references in the debate to the ONS and its reports. Just a few months ago, in March 2022, the ONS published a report on its over-50s lifestyle study, which looked at the motivation of 50 to 70-year-olds who left employment during the pandemic. The ONS found that 77% of those aged 50 to 59 had left sooner than they had expected or intended to. It found that 19% had left because of stress or mental health, but that 58% would consider returning the workforce and 15% actively wanted to return. Were those people to return to the workforce, 36% of them would consider a flexible attitude to working to be most important, and 69% would want to work part time. It is important for the Government to consider ways to get such people back into the workforce, because they have valuable experience and can make a contribution. I saw an example of the people I am talking about in the volunteers I worked with on the delivery of the vaccine programme. Demand exists in the economy but it is not being fulfilled. We need to put the two things together.

In achieving economic growth, it is important for investors, customers, suppliers and the workforce to be able to understand the true state of a company. I note the Government’s interest in restoring trust in our audit and reporting systems through our corporate governance system. I am a member of the Business, Energy and Industrial Strategy Committee and we have looked at auditing, so I was disappointed to see that the audit reform Bill in the Queen’s Speech remains only in draft form. I want to see swift action to ensure that the full Bill comes to the House as promptly as possible. We know about the dominance of the big four, and we have had many reports and three independent reviews, as well as the work done by the Select Committee. I want the Government to make sure that a transparent and effective audit system is introduced. There are plenty of reports calling for change, and we have seen the events at Carillion, Patisserie Valerie, Thomas Cook, P&O Ferries and BHS. We need to rectify the situation, and I hope that the audit reform Bill is brought forward.

It is important to equalise growth across the country, and the levelling-up provisions are incredibly important in that regard. On the planning system, I want to ensure that an adequate supply of land is made available for businesses. That is an issue in my constituency. We are at the centre of England, making ours an ideal location for the logistics businesses that want to serve the country, but land is rapidly being taken up. I am concerned that, even now, many local councils have no up-to-date local plan, and instead rely on applications coming in and development control.

I note some of the provisions on local involvement, but the current neighbourhood plans are too bureaucratic and long-winded and take too long to implement. I note, too, the attempt to give people more involvement in planning issues and the principle of street referendums, but I am uneasy about those proposals as they may become a vehicle for disputes between neighbours. The Government may also have a real challenge in defining what constitutes a street.

Housing supply is a vital part of economic growth. Building homes is an economic activity, and of course new housing provides homes for workers, as my right hon. Friend the Member for Gainsborough (Sir Edward Leigh) reminded us a few moments ago. In my constituency, we have probably one of the best examples in the country of delivering new housing at volume through the development of Houlton, the sustainable urban extension to Rugby, which is being developed by Urban&Civic. That massive developer has great control over the activities of the house builders, and I believe that it is creating communities as well as building homes. It is vital that we provide the infrastructure first. In Rugby, we now have a link road to the main urban community, and both primary and secondary schools, but the challenge is to get the healthcare provision in place. There is a great deal of development in Rugby, and I am proud of what we have achieved.

I conclude by noting that there are many provisions in the Queen’s Speech that will support our businesses and enable growth and development to take place.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. I hope that we can manage without a formal time limit, but that means that I must ask colleagues to stick to about six minutes. Six minutes and 20 seconds is okay, but eight minutes is not.

Checks on Goods: Northern Ireland and Great Britain

Mark Pawsey Excerpts

Thursday 24th October 2019 Commons Chamber

[Stephen Barclay]

I visited the port of Rotterdam to discuss the arrangements that it is making. For goods coming from Rotterdam to, say, Northern Ireland and then on to Great Britain, any requirements are within the control of Great Britain and the UK; there are no requirements on that in the protocol. The hon. Gentleman knows that most of the time—this is what I was discussing with the port of Rotterdam—these issues are intelligence-led in any event. That is the case now and that will be the case in the future.

[Mark Pawsey (Rugby) (Con)]

On a very practical level, PTI Express Ltd is a haulage company based in my constituency, transporting goods to and from both Northern Ireland and the Republic, and it was very concerned about the threat to its business—about the prospect of no deal. Of course, that threat to its business has now been abated as a consequence of the vote in the House earlier in the week, but what arrangements should it put in place for future circumstances?

[Stephen Barclay]

I agree with my hon. Friend in part, in that I think the central concern of many businesses, as with those in his constituency, has been around no deal; but because of the decision that the House took on the programme motion, I would not say that has been abated. That is why my right hon. Friend the Chancellor of the Duchy of Lancaster has had to step up our no-deal preparation, Yellowhammer. The sooner we can reach a deal, the sooner we can address fully the concerns of my hon. Friend’s constituents, because he is quite right: many members of the business community are concerned about no deal. That is why they want this deal done and they want us to move forward.

Brexit Negotiations and No Deal Contingency Planning

Mark Pawsey Excerpts

Tuesday 4th September 2018 Commons Chamber

[Dominic Raab]

Let me gently say to the hon. Gentleman that we do not do political decision making in this country by reference to polls. We had a referendum, the country voted to leave the EU, and that is what we are going to do.

[Mark Pawsey (Rugby) (Con)]

The continued success of the UK automotive industry is important in my constituency and throughout the west midlands. In its report, the Business, Energy and Industrial Strategy Committee draw attention to the reliance of complex supply chains on the friction-free transfer of components between the UK and Europe. Can the Secretary of State reassure the House that that will be maintained? What is his assessment of the impact of a 10% tariff on cars, in the event of no deal, on a company such as Jaguar Land Rover?

[Dominic Raab]

My hon. Friend is right to raise the issue of “just in time” supplies for manufacturing purposes. That is precisely why we configured the White Paper proposals in the way that we did. It must be the case that in any scenario, on all sides, we try to avoid—and we do avoid—any erection of new trade barriers. Given the continental supply of cars to this country, it is clear that that would be harmful on both sides, but probably disproportionately on the other side.

Oral Answers to Questions

Mark Pawsey Excerpts

Thursday 1st February 2018 Commons Chamber

[Mr Davis]

It is almost sine qua non that all my Ministers support Government policy, which is more than I can say for Opposition Front Benchers.

[Mark Pawsey (Rugby) (Con)]

6. What steps he is taking to ensure the Government engage with the international business community during negotiations for the UK to leave the EU.

[The Parliamentary Under-Secretary of State for Exiting the European Union (Suella Fernandes)]

Ministers from across the Government have carried out extensive engagement on EU exit, in both the UK and the EU, with businesses and industry bodies from all sectors of the economy. Those include international businesses with a footprint in the UK and British businesses with interests in the EU. The Prime Minister chairs a quarterly business advisory council to hear directly from senior business leaders on the key issues across EU exit and the wider economy.

[Mark Pawsey]

Coming from Coventry, which is the home of the UK motor industry, I have been delighted by the industry’s resurgence in recent years. Last year, however, it did see a fall in output of 3%, which was attributed by the Society of Motor Manufacturers and Traders to the need for clarity on Brexit transition. Given the importance of car manufacturing and its supply chain to the west midlands economy, what reassurance has the Minister been able to give the industry about the future relationship with our European partners?

Legislating for UK Withdrawal from the EU

Mark Pawsey Excerpts

Thursday 30th March 2017 Commons Chamber

[Mr Davis]

As the Prime Minister made plain yesterday, she wants to see a comprehensive agreement. People have interpreted that as comprehensive trade agreement, but it does not just mean that; it means a comprehensive agreement across all the issues where we have a relationship with the European Union.

[Mark Pawsey (Rugby) (Con)]

Many users of e-cigarettes voted leave in the referendum in the mistaken belief that doing so would prevent the EU tobacco products directive from being applied here. Taking that regulation as an example, what opportunity will this House have to change provisions of EU law that do not operate appropriately?

[Mr Davis]

That is the point of bringing them back to the House for it to be able to deal with them. It will be right across the board. We are talking about 40 years of law, and it will take time to correct those that we do not agree with—of course, much of it we do agree with. That will take time, but the House will have its opportunity.

European Union (Notification of Withdrawal) Bill

Mark Pawsey Excerpts

2nd reading: House of Commons
Wednesday 1st February 2017 Commons Chamber

[Mark Pawsey (Rugby) (Con)]

One of the benefits of making a later contribution to a debate is the opportunity to reflect on earlier speeches. The standout one for me came late yesterday evening, when my hon. Friend the Member for Boston and Skegness (Matt Warman), who supported remain in the referendum but represents a constituency that voted to leave, set out very clearly why it is important to recognise the referendum result and why we should vote to deliver the wishes of our constituents and the country as a whole. That is also my position.

Last week, I met some children in my constituency when I visited their school. I was asked some pretty serious questions. They asked me why I voted remain, and I explained why I felt that remaining would have been better for our businesses and given us a sense of certainty. They asked why so many people voted to leave, and I explained that I believe that people were attracted by the proposition of taking control, particularly of immigration. They then came up with the tough one: what happens next? This debate is all about that—the process of triggering article 50 and the negotiations that will take place over the next two years.

We have before us a clear, simple Bill that represents the result of the June referendum. I supported the Government’s decision to give the people a say. It was in the Conservative party manifesto, and in 2015 my constituents gave me a significantly larger majority and Parliament voted six to one in favour of it. It therefore follows that support for the referendum requires respect for its outcome. As my right hon. Friend the Member for North East Bedfordshire (Alistair Burt) argued, I do not see how anyone can suggest otherwise. No decision had been made for more than 40 years and the body of which we were a member had changed, so it is entirely right that we voted for a referendum. As with the United States election, though, if we ask the public a question, we should not be too surprised if the electorate come back with an unexpected answer. It is now our job to implement their decision.

The decision to leave the EU presents us with opportunities, as was underlined to me in a discussion with a small business owner in my constituency. He was an ardent remainer who had joined me to hand out leaflets to commuters at the station. Nevertheless, he described the referendum as being like a business owner pitching to retain an account and the custom for his business. The decision had gone against his company—the customer decided not to renew and was not going to change his mind. A businessman in that position has to start to look for other deals elsewhere.

That is precisely the approach the Government are taking. They have formed the new Department for International Trade and are making deals with new partners and managing the process of the leaving. I have some misgivings about the route we are about to go down, but we must accept the wishes of the people and proceed with the Bill in support of what the people decided.

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[Mr Baron]

I very much agree with my hon. Friend. With a first-past-the-post system, it is very clear that one abides by the result.

[Mark Pawsey]

On the point about abiding by the result, will my hon. Friend, who has been a strong leaver, recognise the challenges that colleagues on the Opposition Benches face in walking through the Lobby with us today and appreciate the efforts that they have taken to honour the wishes of their constituents?

[Mr Baron]

Absolutely. I completely agree with my hon. Friend. This will not be an easy decision for Labour, but, at the end of the day, a contract was made and that should be respected.

May I, very gently, point a finger at Scottish National party Members? For all their talk about wishing to remain in the EU, the bottom line is that had they won their independence referendum, they would have left the EU. The EU made that very clear. What is more, there was no automatic right of re-entry, and they would have had to take on the euro in that process. For all the talk about being good Europeans, if it had been left to them, Scotland would have left the EU.

In the time that is allowed, let me point out a few more inconvenient truths. I have heard it said many times on the Opposition Benches that we will become a more intolerant country. Immigration has been raised by several speakers with regard to our leaving the EU. I suggest to them that, by leaving the EU, we will no longer discriminate against the rest of the world, which the present immigration policy does. The SNP in particular may not like it, but it is a fact that we cannot stop anybody coming in from Europe, but that we do stop the rest of the world coming into the UK, because no country in the western world has a non-existent immigration policy. For all the talk on the Opposition Benches, by leaving the EU, whatever criteria we choose to guide our immigration policy, it will be fair to the whole world, not just to a particular region. No region will be discriminated against, and that is the point. Whatever the criteria, there will be fairness. No one will be discriminated against based on where they come from.

There is a further inconvenient truth that has hardly been touched on in the debate. Hon. Members suggest that we will suddenly become an economic backwater by leaving the EU. From looking at growth rates across the western world, I can assure the House that the EU remains in the global economic slow lane, with shamefully high youth unemployment rates to match. There is a world out there growing much faster than the EU. We need to embrace that future.

I very much look forward to our winning the vote tonight. I ask the Prime Minister to do what she can to negotiate as good a deal as she can, but not to be afraid to fall back on World Trade Organisation rules if a bad deal is on the table. There is a very bright future ahead of us.

Oral Answers to Questions

Mark Pawsey Excerpts

Thursday 20th October 2016 Commons Chamber

[Mr Davis]

I met the First Minister and the Finance Minister on Tuesday to talk about Wales’s interests. That is how we will do it.

[Mark Pawsey (Rugby) (Con)]

Companies in the supply chain to the motor industry, such as Automotive Insulations in my constituency, have benefited from multinational investment in the sector in recent years. What recent discussions have taken place to reassure the sector that the UK is a great place in which to invest?