Oral Answers to Questions

Mark Prisk Excerpts

Thursday 13th January 2011 Commons Chamber

[Grahame M. Morris (Easington) (Lab)]

6. What assessment he has made of the prospects of establishing a single local enterprise partnership in the north-east; and if he will make a statement.

[The Minister of State, Department for Business, Innovation and Skills (Mr Mark Prisk)]

We have received two proposals for establishing local enterprise partnerships in the north-east—one to cover the Tees Valley, which was cleared to proceed last October, and a second that was received recently for one to cover the remaining local authority areas. I can tell the House today that the second proposal meets the Government’s expectations, and we are today writing to the partners to confirm that. This means that just 16 weeks after we sought applications, there is complete coverage in the north-east.

[Grahame M. Morris]

I welcome that announcement and thank the Minister for that information. The Business Secretary controversially abolished our regional development agency, One NorthEast, and the Government parties have cut funding for regional development by two thirds. I welcome the good news for my area, but there are concerns among Opposition Members that in the transition period between the RDAs going out and the LEPs coming in, there will be a problem or a vacuum, and we will not be able to encourage investment or secure the regeneration jobs that we require.

[Mr Prisk]

Let me assure the hon. Gentleman that we are working very closely both with the outgoing RDA teams, to whom I am grateful for their co-operation and collaboration, and with the incoming local enterprise partnerships. There might be stumbles along the way, because this is a complex path, but I am determined to ensure that we do our best to encourage growth and remove the barriers to growth, especially in the north-east.

[Sir Alan Beith (Berwick-upon-Tweed) (LD)]

I warmly welcome the Government’s announcement today that there will be an LEP for the whole north-east apart from Teesside, which already has one, but will the Minister discuss with the Minister responsible for tourism and heritage the transitional problems facing the tourism industry? Its promotional work, uniquely in the north-east, was directly operated by the RDA, One NorthEast, and the business-led alternative will need some transitional help.

[Mr Prisk]

Given my right hon. Friend’s expertise in the area, I would be happy to talk not only to the Minister but to my right hon. Friend himself, in order to ensure that we get the balance right. There is a good opportunity before us, and managing the transition needs a little care and patience, so I shall be happy to work with my right hon. Friend.

[Mr Gordon Marsden (Blackpool South) (Lab)]

My area, in Lancashire, still does not have a local enterprise partnership. Does not that process just confirm that the Secretary of State is still losing the plot on business and growth in England’s regions? On 11 November he told the Lunar Society in Birmingham that his LEPs process was “Maoist” and “chaotic”, and he repeated that confession to reporters from The Daily Telegraph on 20 December. Meanwhile, the Department for Communities and Local Government has just put in a takeover bid for his European money, which is meant to boost regional businesses and growth. Is not his business and enterprise Minister now left like the boy standing on the burning deck, whence all but he have fled?

[Mr Prisk]

That was a very stretched literary metaphor, if I may say so. [Interruption.] No, in spite of the question, the reality is that the Government are working very closely in that area, and as we have demonstrated in the north-east, we are making good progress. I work closely with my colleagues in the Department for Communities and Local Government, as I do with other Ministers, and I am sorry that Opposition Front Benchers have nothing positive to say on this subject.

[John Glen (Salisbury) (Con)]

7. What steps he plans to ensure that small and medium-sized enterprises are able to gain access to finance.

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[Ian Austin (Dudley North) (Lab)]

9. When he expects the independent advisory panel to meet to consider applications to the regional growth fund.

[The Minister of State, Department for Business, Innovation and Skills (Mr Mark Prisk)]

The advisory panel is currently expected to meet in late February to consider applications from the first bidding round to the fund—once, of course, the bids have been processed.

[Ian Austin]

When the panel meets, will the Minister ensure that the west midlands, hit hardest during the downturn and taking the longest to recover, gets the greatest help from the fund? Does he accept that the fantastic work that has been put in by business men in the black country to get our local enterprise partnership off the ground will be seriously hampered if they do not get the funds they need from the regional growth fund?

[Mr Prisk]

I very much welcome the work that has been undertaken by businesses in the black country, and I pay tribute to them for that. Of course, the regional growth fund has to be based on merit, because it needs to be focused on making sure that the best cases come forward. Like the hon. Gentleman, I suspect that some excellent examples will come forward from his area, and from the west midlands as a whole. Cases must be judged on merit alone.

[Margot James (Stourbridge) (Con)]

The Black Country Reinvestment Society has a very successful record in arranging loans to micro-businesses and small and medium-sized enterprises across the black country. Does the Minister agree that a good way of getting regional growth fund money to small businesses is by enabling grants from the RGF to investment co-operatives such as the BCRS?

[Mr Prisk]

I strongly agree with my hon. Friend, who is also very expert in this area. We can do this not only through the regional growth fund but by ensuring that we work through, for example, the enterprise finance guarantee, so that small institutions such as community development finance institutions are able to participate, and the micro-loans to which she refers can be extended. I have changed the rules; they can now get involved.

[Mr Speaker]

I call George Eustice to ask Question 10. He is not here.

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[Ian Mearns (Gateshead) (Lab)]

17. When he expects the independent advisory panel to meet to consider applications to the regional growth fund.

[The Minister of State, Department for Business, Innovation and Skills (Mr Mark Prisk)]

I refer the House to the answer that I gave to an earlier, similar question.

[Ian Mearns]

I would like to press the Minister a little further on tourism. The tourism and hospitality industry employs 20,000 people in Gateshead and Newcastle alone, and we collaborate on an awful lot of work. The industry is therefore important for the entire regional economy. However, with the demise of the regional development agency and cessation of our successful “Passionate people, passionate places” advertising campaign, we have a vacuum. You have already agreed this morning to meet the right hon. Member for Berwick-upon-Tweed (Sir Alan Beith). Will you meet me and other interested Members from the Tyneside area to discuss the future of tourism in our region?

[Mr Speaker]

Order. I remind the hon. Gentleman that I have not agreed to meet anybody, but perhaps the Minister has. We will soon hear.

[Mr Prisk]

Perhaps, Mr Speaker, we could travel together to the delights of the north-east. I would be only too pleased to ensure that we make a joint effort, working with my colleague, the tourism Minister, on the matter. The north-east has some marvellous places to visit, although, given that I am a born Cornishman, it was a slight distance for me to travel when I was child. Nevertheless, we need to consider that area carefully and I am happy to accede to the hon. Gentleman’s request.

[Mr Marcus Jones (Nuneaton) (Con)]

I would like to bring to the Minister’s attention a proposal by the Motor Industry Research Association, which is based on the border of my constituency and that of my hon. Friend the Member for Bosworth (David Tredinnick), to build a new technology park. It aims to attract £250 million in investment and directly create 2,000 jobs in the next 10 years, with 200 in place by 2013. MIRA wants to bid for regional growth funding shortly to facilitate that project. Will the Minister agree to meet representatives of MIRA to discuss that exciting proposal for the east and west midlands?

[Mr Prisk]

Clearly, all applications need to go through the appropriate regional growth fund process, but I am always happy for my Department to receive the information on excellent private projects such as the one to which my hon. Friend referred.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

18. What steps his Department is taking to increase economic growth through the provision of assistance for small businesses.

[The Minister of State, Department for Business, Innovation and Skills (Mr Mark Prisk)]

On 5 January, the Prime Minister announced plans to overhaul the Business Link website, provide a national contact centre, establish a network of business mentors and launch the business coaching for growth programme. This is in addition to the enterprise finance guarantee, providing £200 million more in equity funds and extending and improving the manufacturing advisory service.

[Miss McIntosh]

I thank the Minister for that particularly helpful answer. I am concerned about local enterprise partnerships and the transition period, and about whether the businesses, particularly rural businesses in north Yorkshire that currently benefit will lose out in the interim.

[Mr Prisk]

There are two aspects to how we ensure that small businesses are helped. The first is the online offer and the modernising and improving of what is available in businesses’ own premises so that they can access the information they need. The second is the quality of business-to-business advice. We think that the people with real business experience—business-to-business mentors—are the best answer, which is why I am proud to stand at the Dispatch Box and say that already, six months ahead of launch, we have identified 40,000 experienced business people who have offered to provide precisely that kind of help.

[Keith Vaz (Leicester East) (Lab)]

One of the problems that small businesses have is the acquisition of premises. If the Minister would care to walk down the Melton road in Leicester with me, he would see a very vibrant area, but a lot of empty shops. What can be done to assist local businesses in acquiring premises?

[Mr Prisk]

I would be delighted to walk down the Melton road with the right hon. Gentleman, although my travel diary is beginning to get a little pressed. The crucial opportunity here comes from the local enterprise partnerships and removing barriers to growth. The business and civic communities in those cities and areas are best placed to identify where the pressure is and to talk to the landlords and municipal authorities involved. That is why we want to ensure that LEPs make a real difference in removing the barriers to growth.

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[Rehman Chishti]

Business leaders in my constituency are concerned about the effects of rising costs, such as fuel prices. What support is being given to businesses to help them with such pressures in these difficult times?

[The Minister of State, Department for Business, Innovation and Skills (Mr Mark Prisk)]

In response to the business question, the crucial issue is ensuring that we deal with issues within our purview—in other words, cutting corporate taxes and dealing with business rates, which we plan to do. On the fuel question, which I understand as a former businessman, we are monitoring the situation closely and will bring back our proposals on the fair fuel stabiliser in due course.

[Mr Tom Watson (West Bromwich East) (Lab)]

T4. The House will have noticed in recent weeks the Secretary of State’s remarkable transformation from Chairman Mao to Mr “Has Been”. Will he tell me how he is enjoying the long march of government?

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[Mary Macleod (Brentford and Isleworth) (Con)]

The businesses of London play a key role in building a strong economy for the future. Will my right hon. Friend meet me and a west London business to talk about challenges and priorities and how to create new jobs and growth for the future in west London?

[Mr Prisk]

My travel diary is beginning to grow a little, but west London is a little closer and I would be happy to meet my hon. Friend and the businesses in her area.

[Stewart Hosie (Dundee East) (SNP)]

In my Dundee East sorting office, the deployment of the Royal Mail’s “Way Forward” system has been described variously as shambolic and chaotic. Hundreds of people have complained directly through my office. Even this morning, one constituent was waiting on parcels sent on 6 December, which is quite unacceptable. Is the Minister aware of this problem? What has he done and what discussions has he had with Royal Mail? Will he assure the House that the “Way Forward” system will not be implemented in any other large sorting offices until each and every one of these problems is resolved?

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[Jake Berry (Rossendale and Darwen) (Con)]

Will the Minister update the House on what steps his Department is taking to encourage investment in industrial small and medium-sized enterprises in east Lancashire, which are so vital to job growth in my Rossendale and Darwen constituency?

[Mr Prisk]

I am pleased to say that we are not only going to extend the manufacturing and advisory service for all businesses, including the excellent ones in my hon. Friend’s constituency, but improve it so that we can help the productivity and competitiveness of small businesses in Lancashire and, indeed, across the country.

[John Cryer (Leyton and Wanstead) (Lab)]

The Business Secretary continually tells us that the economy is steaming along very nicely and that everything is wonderful. If that is the case, why are wage settlements running at a rate far below price inflation?

[Fiona Bruce (Congleton) (Con)]

We have heard today about some excellent initiatives involving skills training, apprenticeships and mentoring for business. What concerns me is that many owners and managers of small and medium-sized enterprises spend their days with their heads down, concentrating on their businesses. What we need to do is communicate the opportunities to them. What can the Minister do to reassure me that the 4,000 SME owners in my constituency will hear about those initiatives?

[Mr Prisk]

Not only have we put the information online, but we are working through the excellent trade bodies representing small businesses to feed it out to them. I urge Members, when talking to members of the small business community, to tell them what is being done to help their businesses to grow and prosper. That is the job that we need to do, and I hope that Members will support us in the task.

[Chris Leslie (Nottingham East) (Lab/Co-op)]

It is clearly embarrassing for the Business Secretary that he has failed to deliver robust action on banker bonuses and to deliver the net lending targets. If he cannot persuade the Chancellor to fulfil those coalition agreement promises, will he resign?