Oral Answers to Questions

Mark Prisk Excerpts

Thursday 17th February 2011 Commons Chamber

[Fiona Bruce (Congleton) (Con)]

7. What recent progress he has made in establishing local enterprise partnerships.

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

I am pleased to say that we are making good progress with regard to local enterprise partnerships. Indeed, I can announce today that we have cleared the London enterprise partnership. That brings us to a total of 31, covering 87% of England's population.

[Annette Brooke]

I thank the Minister for his answer. Naturally, I am rather disappointed that Dorset has not yet found a solution. May I have an update on progress towards the inclusion of Dorset within a local enterprise partnership? What timelines are the Government working to? If it is necessary for support to be given, will that be given?

[Mr Prisk]

As the hon. Lady knows and we have discussed, Dorset has the challenge that Poole and Bournemouth face eastwards economically but the rest of the county does not. So we have worked with local partners, and offered them an opportunity: once they have decided, they will come back to us and we will help to ensure that they progress with their enterprise partnership as quickly as possible.

[Fiona Bruce]

Can the Minister advise on the timings of the announcements of the agreement of new LEPs? How is he guaranteeing private sector leadership for LEPs?

[Mr Prisk]

My hon. Friend is absolutely right. With 87% covered in less than 22 weeks—unlike the progress that we often saw from Labour—there has been positive progress. On the private sector issue, LEPs are specifically business-led, and most encouragingly, in her local LEP, eight of the 14 participants—over 60%—are from the private sector. That is a very good example, which I know other enterprise partnerships intend to follow.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

In their response to the Select Committee report on LEPs, the Government have said that they will not impose performance management criteria on them. Will the Minister explain just how the performance of LEPs will be monitored and assessed?

[Mr Prisk]

The whole point about partnerships is that local priorities will lead, not central diktat. That is why we believe in ensuring that we enable partnerships to come forward and that they judge the issue on how they break down the local barriers to growth. We are committed to ensuring that the economy grows; these will be excellent vehicles to achieve that locally.

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

Well, we are clear what LEPs and businesses are asking for, even if Ministers are not. We believe that assets and funding intended for local growth in our regions should stay there. We have put forward a detailed strategy on skills and access to European and regional development agency money—the tools that LEPs need to do their job. But the Secretary of State is not passing any assets on, and is twisting the arms of RDAs over it. Today’s Local Government Chronicle reveals the west midlands RDA disposal plan—more than half its assets up for sale. The north-east regional development plan that I have seen says the RDA has been told that it must help address the fiscal deficit. How can the Secretary of State now deny that he is flogging off our local family silver to keep the Treasury happy? Has he not left LEPs in the lurch?

[Mr Prisk]

We got there eventually, Mr Speaker.

The RDAs have brought forward assets plans, which the Government are looking at. In the growth plan, we set out clearly how we will deal with them. The idea that we will be selling off the silver is a nonsense. I am sorry that Labour Members have nothing positive or intelligent to say about the matter.

[Jason McCartney (Colne Valley) (Con)]

3. What steps he is taking to encourage entrepreneurship.

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[Margaret Curran (Glasgow East) (Lab)]

5. What steps he is taking to encourage the manufacture of low-emission vehicles.

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

Our aim is to make the United Kingdom a leader in the research, development and manufacture of low and ultra-low carbon vehicles. To this end, we have a comprehensive plan supporting major investment by companies, funding for research and development, consumer incentives and investment in infrastructure.

[Margaret Curran]

I thank the Minister for that reply. Is he aware of the Glasgow company, Allied Vehicles, which is leading the way in the production of electric cars in Scotland? I am sure that he is aware of Nissan’s role in the field and its comments that the Labour Government’s grant for business investment had ensured the manufacture of the Leaf car in the UK, creating 100 jobs and producing 600 vehicles. Will he tell the House precisely how much investment the Government have set aside for the manufacture of electric cars throughout the United Kingdom?

[Mr Prisk]

We are putting in more than £300 million to make sure that hybrid and electric vehicles are progressing, both with Ford and with Nissan. That is important both as grant and as a form of finance guarantee. As the hon. Lady knows, Glasgow is a new beneficiary of our new investment in the plug-in places programme, which is important. I look forward to its progressing.

[Simon Wright (Norwich South) (LD)]

Lotus Cars, based just south of Norwich, has a worldwide reputation for innovation in low-emission vehicle technology. Lotus has submitted a bid to the regional growth fund, which if successful will enable the company significantly to increase its operations in the UK, providing hundreds of new jobs. Does the Minister share my enthusiasm for the ambition behind Lotus’s bid, which so clearly demonstrates how the regional growth fund is encouraging manufacturing companies to think boldly?

[Mr Prisk]

The hon. Gentleman is right. Lotus is one of several excellent premier brands in motor engineering in this country. I shall not comment on the specific bid, because there are several to hand at the moment, but the hon. Gentleman is right to say that we have real opportunities in the sector. The Government are an effective partner in making sure that the sector grows.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

The Minister made mention of the need to invest in the sector and he is right; we need investment in all the greener technologies. That is why the establishment of the green investment bank is so important. It is almost a year since the election, so may I urge the Government to get a move on with the establishment of the green investment bank? Can the Minister give us an update on when he expects it to be operating and investing in those important technologies?

[Mr Prisk]

Clearly, the bank needs to work on a commercial basis. We are making very good progress with the proposals on it and we shall set them out in May.

[Chris Kelly (Dudley South) (Con)]

9. What criteria he used to determine appointments to the independent advisory panel for the regional growth fund.

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[Karen Lumley (Redditch) (Con)]

10. What assessment his Department has made of the administrative burden on businesses of the process for issuing export licences.

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

Export licensing needs to be thorough, especially where there are sensitive locations or uses. However, it is important that the Government continue to focus on keeping the costs to business down and we intend to do that.

[Karen Lumley]

Small businesses in my constituency of Redditch wishing to export to China have been victims of excessive red tape and delays in securing an export licence. One company has been waiting for months in respect of an order from China that would generate revenue and employment for the west midlands. Will the Minister take steps to reduce administration burdens on small and medium-sized enterprises and meet me and the company affected?

[Mr Prisk]

I should be more than happy to meet my hon. Friend. As she knows, two thirds of all applications are dealt with within 20 working days, but as she will appreciate this is sensitive equipment to a sensitive location. We need to ensure that we license only legitimate exports in these circumstances. I am pleased to say, however, that in this instance the licence has been granted.

[Mr Rob Wilson (Reading East) (Con)]

13. What his policy is on widening access to higher education for students from disadvantaged backgrounds; and if he will make a statement.

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[Chris Evans (Islwyn) (Lab/Co-op)]

14. What assessment he has made of the likely effects on the construction sector of the outcome of the comprehensive spending review.

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

The comprehensive spending review set out our plans for £200 billion of investment over the next 10 years as part of the first national infrastructure plan. This was welcomed by many in the construction sector.

[Chris Evans]

Does the Minister agree with Steve Morgan of Redrow when he says that the new homes bonus scheme is unlikely to prompt councils to approve more homes?

[Mr Prisk]

A number of benefits are being put forward for home building and for construction as a whole. The key issue with the housing market is whether the demand is there. That is the challenge: we will do our bit, but the market will need to operate as well.

[Yasmin Qureshi (Bolton South East) (Lab)]

18. What assessment he has made of the potential effects on requirements for support from his Department by citizens advice bureaux of planned reductions in the provision of legal aid.

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[Simon Kirby]

Given its proximity to London and its highly skilled work force, does the Secretary of State agree that Brighton is a great place to do business? Will he consider relocating some of his staff and office use to this most excellent city?

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

My hon. Friend is right. Brighton has tremendous economic advantages. We will, of course, as a Government and as a Department, consider those for our own purposes.

[Mrs Mary Glindon (North Tyneside) (Lab)]

Workers at Longbenton Foods in North Tyneside have been locked out of their frozen food factory this week and have been asked to take enforced holiday by the owners. More than two years ago the Labour Government stepped in to help the factory with grants when a fire closed it, and thus saved the jobs for the work force. As we try to ascertain what the current problems are, can the Minister assure me that, like his Labour predecessors, he will make a commitment to give any support he can to all those concerned in trying to ensure that those crucial jobs are maintained in my constituency?

[Mr Prisk]

These are always difficult times for people in the situation the hon. Lady describes. Would she do me the courtesy of providing me with the information? My Department will look at it. She knows that money is tight, for reasons that we are all aware of, but I want to make sure that I understand the facts, then I will give her an answer.

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[Paul Blomfield (Sheffield Central) (Lab)]

Two days ago, with colleagues, I met the business leaders who are board members of Sheffield city regional local enterprise partnership. They are enthusiastic about their task but bemused by the lack of clarity about the powers, responsibilities and resources they will have to undertake it. Will the Minister tell the House when that will be clarified?

[Mr Prisk]

We are setting out the proposals clearly. They are also in the local growth White Paper. We have written to the boards and we are having a summit of all the board leaders together. There are various things that Sheffield will want to do and Leeds will want to do, which are different in other areas. We want to make sure that we do not strangle that initiative.

[Andrew Selous (South West Bedfordshire) (Con)]

T4. The market for electric cars is estimated to be worth $2 trillion. Israel has resolved to make its road transport fossil fuel-free by 2020 and has the largest car dealership on earth in the north of Tel Aviv for electric cars. Can my hon. Friend reassure me that the UK will be at the front and centre of this new industrial revolution, and not lose out as we have done in other areas in the past?

[Mr Prisk]

My hon. Friend is absolutely right. That is why, unlike in other European countries, nine electric models will be available over the next year and why we are leading on electric manufacture. It is why we are investing in consumer incentives and infrastructure. It is a vital market. We are working on it.

[Toby Perkins (Chesterfield) (Lab)]

Auto Windscreens went into administration on Monday. If the administrators do not find a buyer quickly, 1,100 people will lose their jobs. The Minister has been too busy to intervene personally and now his Department has passed the matter over to the Department for Work and Pensions. Under Labour, the regional development agency would have taken on a role of cross-co-ordination. Has the failure of the cross-agency co-ordination approach not let down those 1,100 workers, and why has the Department washed its hands of the matter by turning it into a pensions and benefits issue?

[Mr Prisk]

I am sorry that the hon. Gentleman is being slightly churlish. He spoke to me only two days ago, when I made it clear that my Department would check the facts. We have done that. The Department for Work and Pensions is already in contact with the company. We are ensuring that we understand both the job issues and the company issues. We are very happy to work with all Members, so I am sorry that he has chosen to be somewhat churlish on this occasion.

[Margot James (Stourbridge) (Con)]

T5. The UK dairy industry is in crisis, with farmers receiving from supermarkets 3p per litre less than the cost of production. This is leading to pressures to intensify dairy farming that are most concerning on grounds of animal welfare and the environment. Will the Minister update the House on plans to introduce a grocery code adjudicator, as announced in the coalition agreement?

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[Mr Mike Weir (Angus) (SNP)]

In answer to an earlier question, the Minister talked about the development of electric vehicles. Is the Department looking at encouraging the development and take-up of a hybrid version with a petrol back-up, rather than a traditional hybrid, to deal with the problem of range in rural areas?

[Mr Prisk]

The hon. Gentleman is absolutely right. That is why, although electric vehicles are crucial, we are not focusing simply on one technology. Hybrid and plug-in hybrid vehicles are a crucial part of that, which is why we are ensuring that the office for low-emission vehicles is looking at all technologies, especially in the rural context.

[Martin Vickers (Cleethorpes) (Con)]

T7. Ministers will be aware of the great potential of the Humber region for expanding the renewable energy sector, as was confirmed by the Minister of State, Department of Energy and Climate Change, my hon. Friend the Member for Wealden (Charles Hendry) in a Westminster Hall debate yesterday. It is essential that small and medium-sized enterprises are given every support and opportunity to benefit fully from such major developments. What additional measures are Ministers considering for achieving that?

[Mr Prisk]

We are seeing growth in that area, not least because of the Government’s leadership in ensuring that investment is forthcoming. My hon. Friend is absolutely right about small businesses, and the key is supply chains. We are working with the industry to ensure that the major primes work with the smaller businesses so that everyone can participate, in the Humber and elsewhere.

[Julie Hilling (Bolton West) (Lab)]

Does the Minister agree that volunteering is a good way for young people to gain skills, build confidence and gain qualifications and contacts to assist them in finding work? Does he share my concern that funding for youth volunteering projects has been cut completely and that v projects will close in March?

[Caroline Dinenage (Gosport) (Con)]

T8. What efforts is the Minister’s Department making to support and to promote the marine industry in the UK?

[Mr Prisk]

We are working hard to ensure that the sector, which is a £10 billion industry by sales, is able to grow. That is why I am co-chairing the Marine Industries Leadership Council, and we held a reception in Parliament for all Members to understand its impact. We have a number of important studies on exports and on trade, making sure that investment is forthcoming, and we are determined to ensure an effective partnership between industry and Government so that there is growth.

[Chris Ruane (Vale of Clwyd) (Lab)]

What is the Minister’s definition of the big society, and what role is his Department playing in it?

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[Mr Ben Bradshaw (Exeter) (Lab)]

I thank the Secretary of State and his Ministers for what they have been trying to do in talking sense into Devon and Somerset over our local enterprise partnership, and suggest that perhaps west Dorset might like to come in with us as a solution to the problem mentioned by the hon. Member for Mid Dorset and North Poole (Annette Brooke). However, Exeter is still being completely excluded from this process. Will the Minister not sign off the draft LEP until Exeter is guaranteed either a business or a local authority seat on the partnership board?

[Mr Prisk]

We have made it very clear that all partners must be engaged in this process, and I am grateful to the right hon. Gentleman for participating in it. I am talking to the partners involved, and I have made it clear that they must ensure that this is a genuine, lasting partnership that will help our local economies to grow.

[Laura Sandys (South Thanet) (Con)]

I thank the Department and the Minister for all the work they are doing to secure jobs on the Pfizer site in Sandwich. What is his vision in securing those jobs and a future for the site in the science area?

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[Duncan Hames (Chippenham) (LD)]

Perhaps, like me, Ministers can recall how it felt to be among one of the last to be picked for a team in a game of schoolyard football. The experience is very similar for some areas wishing to join local enterprise partnerships. Can the Minister reassure residual LEPs in smaller areas that they will still have fair access to regionally administered skills funding?

[Mr Prisk]

Last but not least. I assure the hon. Gentleman that the 13% figure is often driven by the need for local partners to get their arrangements right. We are standing ready. We know that these partnerships can help local growth right across England, right across London, and in his constituency as well.

[Mrs Jenny Chapman (Darlington) (Lab)]

We found out this morning that Wonga, the payday lender, has raised £73 million to expand its operations across the country into even more communities. When are this Government going to get a grip on these legal loan sharks?

[Richard Fuller (Bedford) (Con)]

In towns such as Bedford, there is a tremendous opportunity for small business men and women to support start-ups and entrepreneurs in their local communities with time, advice and money. Will the Minister consider ways in which he can support such community-led efforts to promote jobs and enterprise in local communities?

[Mr Prisk]

My hon. Friend exactly describes the great role of local enterprise partnerships, which provide the opportunity to forge together not only entrepreneurs but angel investors and local civic leaders. We are determined to grow the economy; the Opposition have nothing to offer. I am sorry that they are not prepared to listen and learn. They had 13 years in which we watched many parts of England and Wales fall behind. We are determined to ensure that that is not the case.