Oral Answers to Questions

Mark Prisk Excerpts

Thursday 14th July 2011 Commons Chamber

[Mr John Spellar (Warley) (Lab)]

5. What steps he has taken to support the engineering industry; and if he will make a statement.

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

The Government are actively supporting engineering and manufacturing by boosting innovation, increasing business investment, improving skills and encouraging exports.

[Mr Spellar]

I thank the Minister for the departmental mission statement, but the reality is that the Thameslink contract is being given to Siemens without even getting the company to build in the UK. The Minister cannot hide behind EU rules, because the French buy only from France and the Germans buy only from Germany—and the last time I looked they were in the EU. Will he stand up for British industry at last, meet the Transport Secretary before the contract is signed and ensure that we keep train building in the UK at its historic home in Derby?

[Mr Prisk]

We are concerned for those workers in Derby and that is why we have already taken prompt action. I welcome the support of local Members, but I say to the right hon. Gentleman that the contract’s tendering rules were set in 2008 and you were responsible as a party for the first two years of the contract. I also remind the right hon. Gentleman that 1.7 million jobs were lost in manufacturing under the previous Labour Government.

[Mr Speaker]

Order. I remind the Minister that I was not responsible for any such contract at all. I am entirely innocent in the matter.

[Gavin Williamson (South Staffordshire) (Con)]

In South Staffordshire in the past year we have had considerable success in attracting engineering manufacturing jobs, but I am constantly being told that we do not have enough engineering graduates coming out of colleges and universities after 13 years of Labour government. What are we doing to rectify that?

[Mr Prisk]

Absolutely right—what we, rather than yourself, Mr Speaker, are doing about it is making sure that we have apprenticeships in place and that we put vocational education, which was neglected by the Labour party, back on a proper footing. We are also making sure that people are able to transfer between engineering firms. There is good news to be told.

[Tony Baldry (Banbury) (Con)]

6. What progress he has made on local enterprise partnerships; and if he will make a statement.

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

Both the number and activity of local enterprise partnerships is continuing to rise. Dorset is the latest to be cleared, bringing the total to 36—or 97% of the country. Of those, 18 now have full board recognition and have begun their work.

[Tony Baldry]

I am sorry to ask my hon. Friend what I suspect will be perceived as an unhelpful question, but local enterprise partnerships are going to have to raise their game seriously if they are to have any traction or impact. I am sorry to have to report to him that, so far, they seem to have no traction or impact in my area of the country.

[Mr Prisk]

I am disappointed by my hon. Friend’s comments. I have visited 25 of the 36 LEPs and they are already setting up boards to make sure that they are ready to involve small businesses. Now they are going to be able to lead on enterprise zones, lead on the regional growth fund and make sure that we strip away some of the local regulatory problems on the ground, which I am afraid the Labour party did nothing about.

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

As LEPs are business-driven, they could have businesses working with local authorities and local education providers to provide a much better and more localised match of skills needs and skills provision. Will the Minister say how many LEPs are taking that responsibility on and whether any examples of best practice will be rolled out with other LEPs?

[Mr Prisk]

It is encouraging that almost all the LEPs that I have visited have demonstrated that they are involving FE colleges in their programmes. The hon. Gentleman is right that that is crucial. They are ideally suited to get FE colleges producing what local businesses need; that is one of the crucial projects that at least half a dozen of them have already begun.

[Andrew Percy (Brigg and Goole) (Con)]

The pan-Humber local enterprise partnership is now up and running and it has recently put in a bid for a local enterprise zone across the Humber, which will be based around the renewables sector. As a result, the area covered by that potential enterprise zone is quite large. Will the Minister give an assurance that its size—and the need for it to be of that size given that it will be structured around the renewable energy industry—will be taken into account?

[Mr Prisk]

Absolutely; the key issue is the added value. The case will be judged on such merit and we will not seek to preclude anything on, perhaps, spurious grounds.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

According to recent OECD research, the single most important factor in regional growth is innovation, but LEPs do not even have responsibility for that, let alone any money, and it is not even mentioned in the regional growth fund criteria. The £440 million that the regional development agencies invested annually in regional innovation is gone, the Technology Strategy Board’s new strategy makes no reference to it and in any case it still does not have a budget for next year. I know that the Secretary of State enjoys chaotic Maoism, but does regional growth not merit a more coherent approach?

[Mr Prisk]

The hon. Lady is ignoring the fact that we have made sure that the science budget is retained and strengthened, and that we are putting £200 million into technology and innovation centres. When we look at individual schemes and the regional growth fund, we see that £2 million is being put into 3D printing, which is a vital technology for this country—we lead on it and we are investing in it.

[Mr Mark Field (Cities of London and Westminster) (Con)]

7. How much outward investment to Azerbaijan was supported by his Department in (a) 2009-10 and (b) 2010-11. [R]

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[David Mowat (Warrington South) (Con)]

8. Which locations he is considering for the headquarters of the green investment bank.

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

Ministers will consider all submitted business cases for a potential location for the green investment bank. To date, London, Edinburgh and Bristol have made representations. However, others might wish to do so, and once state aid approval is granted, Ministers will choose a location that best enables the bank to fulfil its mission.

[David Mowat]

I thank the Minister for that reply. When the Secretary of State announced the bank in May, it was stated that there was a shortlist of the three locations that have been mentioned, two of which are capital cities. Further to the reply today, can the Minister confirm that the selection process will be based on rigorous and transparent criteria and that other towns and cities will be judged on their merits?

[Mr Prisk]

Absolutely—those three are merely early applicants, not a shortlist. All proposals will be considered on a fair and open basis.

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

I am sure that the Minister will understand the strong case for the bank to be based in Edinburgh, but will he confirm that the bank will not end up just taking up the cuts made elsewhere in Government expenditure? I was concerned by the earlier suggestion that wave power could be funded by the green investment bank. I hope that the bank will provide new, additional funding for greener industries and not just pick up slack elsewhere.

[Mr Prisk]

Indeed; we have trebled the amount that the Labour party originally proposed to £3 billion. So, yes, additional funds are very much in place.

[Stephen Williams (Bristol West) (LD)]

Does my hon. Friend agree that, ideally, the home of the green investment bank will have a mix of commercial and ethical banking, a strong network of professional services firms, green non-governmental organisations, charities and sustainable businesses? That strongly suggests that the city of Bristol is the ideal home for the green investment bank.

[Mr Prisk]

We duly note that excellent representation.

[Lindsay Roy (Glenrothes) (Lab)]

Will the Minister identify the key criteria in the selection process for the green investment bank location?

[Mr Prisk]

I have just set out that, in fact, the process is under way for the rules and criteria. The location, which is obviously the issue at hand, is one that we will bear in mind when we see the business cases. The key issue is what will deliver the best result for the bank itself.

[Henry Smith (Crawley) (Con)]

9. How many people in (a) Crawley constituency, (b) the south-east and (c) England have started an apprenticeship in 2011.

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[Diana Johnson (Kingston upon Hull North) (Lab)]

15. What recent assessment he has made of the state of the construction industry.

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

For three years now, construction has faced very tough times after one of the sharpest recessions ever, but there are encouraging signs. Output in May rose by 0.4%, with increases in new work for most of the construction subsectors. We have published the national infrastructure plan, for the first time in this country, with £200 billion of investment over the next five years.

[Diana Johnson]

The purchasing managers index for construction shows that in June employment in the UK construction industry fell at its fastest rate since January’s VAT rise, and cuts in social housing investment, particularly in areas such as mine in Hull, are not helping. Would not a temporary VAT cut help to protect these skilled construction jobs at this difficult time?

[Mr Prisk]

I am fascinated to see this re-presented to the House. As I recall, when the opportunity came for Labour Members to vote on it, they ducked it—they abstained. It is a shame that they do not have the courage of their convictions.

[Chris White (Warwick and Leamington) (Con)]

16. What steps he is taking to promote manufacturing.

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[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

17. What assessment he has made of the potential role of further education colleges in the work of local enterprise partnerships.

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

I am pleased to report that further education colleges are already playing a role with local enterprise partnerships in the north-east and elsewhere. In Yorkshire, the Leeds city region held its first skills conference with the West Yorkshire consortium of colleges and it is now setting up its own skills network. That is one of several examples.

[Catherine McKinnell]

I am sure that the Minister will agree that for FE colleges to contribute to local economic growth, their work forces are key. Has he engaged with Newcastle college about its plans to make 180 staff redundant and to cut the pay of some existing staff by up to £10,000 a year? Given that that is driven in part by a combination of funding cuts and Government priorities, is this not a worrying trend for the future of FE?

[Mr Prisk]

The hon. Lady paints a very negative picture. When I talk to local FE colleges, they say that they are delighted that we are freeing them from red tape and that they can respond to local businesses. Of course they would like additional funds, but we all know why there is no additional money any more.

[Mr Nigel Dodds (Belfast North) (DUP)]

18. What recent discussions he has had with the Northern Ireland Executive on reducing regulation and promoting growth.

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

Ministers and officials regularly consult their equivalents in Northern Ireland. Their discussions include promoting growth and the importance of reducing regulation, including its enforcement.

[Mr Dodds]

Will the Minister undertake to intensify efforts to discuss how regulation that affects Northern Ireland but is not in the remit and purview of the Northern Ireland Executive, including European regulation, may be reduced or diminished to promote growth in an area that is lagging behind other parts of the United Kingdom?

[Mr Prisk]

It is a priority to ensure that the red tape that the right hon. Gentleman talks about, which holds back business in Northern Ireland and elsewhere, is dealt with. That is one of the reasons we are ending gold-plating across the UK, including in Northern Ireland. I very much welcome positive ideas that come from the Northern Ireland Executive.

[Tony Lloyd (Manchester Central) (Lab)]

19. What the outcomes were of the second round of applications to the regional growth fund; and if he will make a statement.

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[Stephen Hammond (Wimbledon) (Con)]

T1. If he will make a statement on his departmental responsibilities.

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

The Department is responsible for reducing regulation, increasing trade, growing the economy and promoting excellence in higher education and skills.

[Stephen Hammond (Wimbledon) (Con)]

With regard to deregulation, the Minister will have seen the report from the CEOs conference held by The Times, which suggests that an unencumbered supply side is key to growth. One of the key recommendations was moving to faster deregulation—far from one in, one out, it hoped for five out and only one in. Can he make any statement on that?

[Mr Prisk]

I am always keen to accelerate matters, but it is worth putting it on the record that in the past 12 months this Department alone has been able to scrap regulations that would have cost business £430 million every year. It is a good start, but, yes, we want to move forward.

[Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)]

T5. In January, at a cost of £300,000, the Prime Minister stripped the Business Secretary of his responsibility for media competition and policy issues after he declared war on Rupert Murdoch. Given yesterday’s announcement by News Corp that it is dropping the bid for BSkyB, does he expect to have those powers transferred back to him at BIS?

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[Karl MᶜCartney (Lincoln) (Con)]

T3. Using his extensive business experience, as demonstrated by his confident and oft-repeated ability to foresee the economic downturn over many years, would the Secretary of State like to impart some of his wisdom and comment on how his Department, under his expert leadership, has helped small businesses to flourish, particularly management and IT consultants?

[Mr Prisk]

As you can see, Mr Speaker, we are able to work closely together as a team and assume all sorts of identities.

The key thing to bear in mind is that when we look at the number of small business start-ups this year and last, we see an increase of 51,000. According to leading independent surveys, there were 470,000. That is a good sign that we are making early progress, but there is much more to do.

[Chris Williamson (Derby North) (Lab)]

Is the Secretary of State aware that the British train building industry hangs in the balance following the decision to appoint Siemens as the preferred bidder for the Thameslink contract? Unless it is reversed, it will cost the Exchequer more than £100 million in lost tax revenue. Derby does not need a task force—we need a reversal of the decision. Will he give a commitment to make representations to the Transport Secretary and the Prime Minister to call in the decision, to protect thousands of jobs and stand up for British industry?

[Mr Prisk]

I understand the hon. Gentleman’s passion, but I think that the taskforce is important. If we start to unpick the contract now—in the third year of its running—we will face legal reviews and problems with how the project progresses. We need to deal with the procurement system as a whole. I am sorry to say that his Front-Bench team failed to do that in 13 years.

[Iain Stewart (Milton Keynes South) (Con)]

T4. University Centre Milton Keynes, in conjunction with local partners, is developing a knowledge gateway to stimulate enterprise and skills. May I urge my right hon. Friend to meet the dean of UCMK to explore how his Department might be able to support this initiative?

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[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

What consideration has been given to creating a dedicated Minister for manufacturing within the Department to promote this vital economic area?

[Mr Prisk]

We have one—it is me.

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

T6. One of the major barriers to the growth of small and medium-sized enterprises in west Wales is banks refusing to offer facilities to—or, worse still, withdrawing facilities from—companies that are perfectly viable and with which they have had a relationship over many years. Will the Minister offer any advice to those companies and ensure us that he will work with the Treasury to iron out these issues?

[Gordon Banks (Ochil and South Perthshire) (Lab)]

In response to a question from my hon. Friend the Member for Kingston upon Hull North (Diana Johnson), the Minister’s answer was more fairy story than fact. What he did not tell the House was that by 2015 the number of private housing starts will be 14% lower than in 2007, that public housing starts will fall by 39% over the next three years and that road construction spending will be halved by 2014. These are the facts—what is he going to do about them?

[Mr Prisk]

We are investing £10 billion in the road programme, £14 billion in the rail programme and £200 billion in infrastructure. We have put in place the first national infrastructure plan, which the Labour party failed to do. We are working with industry and construction, and I am sorry that the Labour party has nothing positive to add.

[Peter Aldous (Waveney) (Con)]

T7. Will the Secretary of State confirm that he will consider the proposal for the technology and innovation centre for offshore renewables that brings together a network of key hubs across the country, such as OrbisEnergy in Lowestoft in my constituency, so as to ensure that the whole of the UK benefits from the proposed TIC?

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[Priti Patel (Witham) (Con)]

T8. The Secretary of State will be aware that more than 80% of jobs in my constituency are in the private sector. Will he therefore congratulate the world-famous jam-makers Wilkin & Sons, based in Tiptree, on its outstanding international business, on all it is doing to create good local jobs and on all that it does to promote its brand—a great international British brand—at home and abroad?

[Mr Prisk]

I am delighted to support the company in Tiptree; hon. Members can perhaps see that I tend to do that too often, given my breadth. It is an excellent business that is showing the way, through its exports and productivity. It is a business that we can be proud of.

[Jessica Morden (Newport East) (Lab)]

Five independent schools send more pupils to Oxbridge than 2,000 other schools combined. What is the Minister going to ask Oxford and Cambridge to do about that?

[Ian Swales (Redcar) (LD)]

The French company EDF is about to build a giant wind farm off Redcar. The main contractor will be German, and most of the materials will be imported. What more can the Government do to ensure that British business benefits more from such projects?

[Mr Prisk]

This comes back to ensuring that our procurement system is reformed and reviewed, and that is what we are going to do, to ensure that errors are not repeated.

[Sheila Gilmore (Edinburgh East) (Lab)]

What assessment has the Minister made of the impact of the Scottish Government’s decision to charge English students tuition fees of up to £9,000?

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[Mr Philip Hollobone (Kettering) (Con)]

Given that Northamptonshire has one of the fastest-growing populations in the country and that it sits at the crossroads of England, will the business Minister look favourably at the bid that is now on his desk to establish a local enterprise partnership there?

[Mr Prisk]

My hon. Friend knows very well that an excellent south-east midlands proposal is already under way. I am encouraging people to work together, but we will certainly always look at representations on a fair and open basis.

[Kevin Brennan (Cardiff West) (Lab)]

Will the Secretary of State actively seek to get responsibility for competition policy in media ownership back into his Department? The fact that he was honey-trapped in his surgery does not mean that it should not be a Minister in his Department who takes such decisions. We have now seen the error of sending these matters to the Department for Culture, Media and Sport.

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

The Minister is aware that private and public sector have been working together to try to deliver 1,200 new jobs and training opportunities to east Durham through the film studio and centre for creative excellence. Has he given any further consideration to some sector-specific measures to encourage this development?

[Mr Prisk]

My Department and, of course, the Department for Culture, Media and Sport will want to look at this together. I am aware of the proposal, as the hon. Gentleman knows, and I will look at it on that basis.

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

On Tuesday, LVMH, which produces perhaps some of the Minister’s favourite luxury brands of Louis Vuitton and Moët Hennessy, signed the “woman on the board pledge for Europe”. Will the Minister update us on what steps he will take to encourage British business to sign this pledge, and does he agree that increasing the representation of women on British boards is a matter of necessity, not luxury?