Oral Answers to Questions

Mark Prisk Excerpts

Thursday 15th March 2012 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab)]

18. What assessment he has made of the ability of other Departments to encourage business growth.

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

With your permission, Mr Speaker, and assuming that both Members are present, I will answer Questions 7 and 18 together.

All Departments are assessing how they can remove barriers to growth through the growth reviews. That has led to more than 300 actions being identified, and the Cabinet has met twice in the past month to ensure that delivery of these actions is on track.

[Mark Lazarowicz]

The Minister and the Secretary of State might recall that over a number of months I have called for the headquarters of the Green investment bank to be located in Edinburgh, so it is only right that I record my welcome for the decision to do just that. The Minister’s Department might be supporting the green economy, but other Departments do not always seem to see its value in supporting growth. Will he have a word with the Chancellor to emphasise the importance of supporting the green economy, particularly in the light of some of his recent statements on the matter?

[Mr Prisk]

I am pleased that the hon. Gentleman is pleased that the headquarters of the Green investment bank will be located in Edinburgh, which is important so that we can get a genuine centre and cluster of green finance expertise, although there was a “but” at the end of his question. I can say to him that the entire Government are committed to ensuring that we develop renewables. Whether in relation to finance or technology, we are committed to making real progress, and in the past 12 months we have done precisely that.

[Nick Smith]

The Public Accounts Committee has found that small and medium-sized defence contracts, such as those for new armoured vehicles, are being squeezed out by big-ticket items that are over budget, such as aircraft carriers. Will the Minister ensure that the Ministry of Defence backs prime contractors and supply chains, such as General Dynamics UK in south Wales, so that British business can deliver the best equipment and the jobs that we need?

[Mr Prisk]

Absolutely. Defence Ministers and I regularly discuss that. There is a clear White Paper and a strategy. The hon. Gentleman is right that we need to look at not only prime contractors, but the UK-based supply chain, on which we are making good progress, but we are alert to the danger that larger contracts can sometimes block out some of the smaller opportunities for indigenous UK businesses.

[Alun Cairns (Vale of Glamorgan) (Con)]

The Department currently administers 48 different business support schemes, many of which have further sub-schemes that run from them, all rightly aiming at supporting and assisting business, and other Departments also run such support schemes. Does the Minister accept that there could well be a need to rationalise some of those schemes in order to simplify the process and take out some of the inefficient bureaucracy behind them?

[Mr Prisk]

My hon. Friend is right. Two things need to be done: first, we have to cull the schemes that have not worked, a good number of which we inherited, I am sorry to say; and, secondly, we have to ensure that the schemes are easier for businesses to use. We have created a finance finder so that businesses, rather than having to look at which scheme to use—an equity investment, export or loan support scheme—can secure finance with a number of simple questions. We will be developing and launching that app so that every business, small or large, can apply and get the answers they need quickly.

[Gavin Williamson (South Staffordshire) (Con)]

The International Monetary Fund recently published a report stating that it expects the British economy to grow faster than those of France and Germany. Is not that down to the fact that this Government are cutting corporation tax, reducing regulation and encouraging businesses, such as Jaguar Land Rover in my constituency, to invest? We are making the difference, unlike the Labour party.

[Mr Prisk]

That was a tricky question. My hon. Friend is absolutely right and is a fantastic supporter of industry. I think that the Labour party, beyond the jokes, needs to remember that 1.7 million people lost their jobs in manufacturing over the 13 years it was in government.

[Mr Iain Wright (Hartlepool) (Lab)]

The Secretary of State, in his leaked letter last week, wrote that “a connecting thread” in the failure to provide a “compelling vision” or economic growth is

“the need for strategic and long term thinking about supply chains and the role played in them by public procurement decisions,”

but that there is

“no connected approach across Government.”

That is presumably the objective of the advanced manufacturing supply chain initiative, which was launched in December. Almost five months after the launch, however, will the Minister of State confirm that no firms have yet received help because not a jot of progress has been made? In the light of missed opportunities throughout Whitehall, whether in green technologies, feed-in tariffs, trains, Royal Navy tankers or nuclear technology, how on earth does Ministers’ dawdling help British businesses grow and win contracts? No firms helped—yes or no?

[Mr Prisk]

In that diatribe—[Interruption.] In that diatribe, which I think we all recognised—

[Mr Wright]

Yes or no?

[Mr Prisk]

The point—to answer the hon. Gentleman’s question, if he would like to have an answer—is very simple: we are making good progress on skills, innovation and the supply chain. But is it not right for a Secretary of State to look at progress over 10, 15 and 20 years? Is that not what Governments should do? The Opposition need to bear it in mind, because, if the Labour party in government had looked 10 or 20 years ahead, this country would not be in the mess that we are having to clear up.

[Damian Hinds (East Hampshire) (Con)]

8. What steps he is taking to ensure universal access to independent and professional careers advice and guidance.

--- Later in debate ---

[Mr William Bain (Glasgow North East) (Lab)]

20. What steps he plans to take to improve access to finance for small businesses.

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

The Government are providing a comprehensive package of finance support, whether it be debt or equity funding, financial support for exports, or indeed a Business Angel co-investment fund. Next week, the Chancellor will launch the national loan guarantee scheme.

[Mr Bain]

With just 136 net business start-ups in Glasgow North East in the last year, and with net bank lending having fallen in every quarter of 2011, when will firms in my constituency benefit from credit easing? It is more than five months since the Chancellor first announced it.

[Mr Prisk]

It will be launched next week.

[Paul Blomfield (Sheffield Central) (Lab)]

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

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[Fiona Bruce (Congleton) (Con)]

T4. There are almost 4,000 small businesses in my constituency, in towns such as Alsager, Congleton, Sandbach and Middlewich, and many of them are micro-businesses. What are the Government doing to support micro-businesses and to enable them, when they want to, to develop and grow?

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

Alongside helping with things such as bank lending and the new equity schemes, I would point most obviously to the business angel co-investment fund, which is crucial to plug that equity gap for micro-businesses—not the larger equity businesses but the ones looking for funding of between £200,000 and £2 million. It is a £50 million package, and I commend it to my hon. Friend.

[Valerie Vaz (Walsall South) (Lab)]

T3. Recent evidence has shown that those from a lower socio-economic background make up only 14% of those applying for medicine and dentistry, whereas the figure is 29% to 30% across other courses. Will the Minister say what steps he is taking to ensure that those from a lower socio-economic background are not priced out of the courses where, as Professor Sir Les Ebdon has said, they are needed most?

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[Andrew Gwynne (Denton and Reddish) (Lab)]

T6. I am still receiving numerous complaints from small businesses across Denton and Reddish facing problems accessing finance for their viable business propositions. Given that the economic forecasts are continually being revised downward and the quarter 4 gross domestic product figures are showing a contraction, will the Secretary of State now act and get the banks lending to viable small businesses in my constituency?

[Mr Prisk]

Although two thirds of businesses seeking a loan get it, I fully understand, having run a business myself, that for those who do not it is immensely frustrating. That is why we have extended the enterprise finance guarantee and saw a 13% improvement in bank lending under Merlin. But is there more to do? Yes. The Chancellor will deal with that next week.

[Guy Opperman (Hexham) (Con)]

T7. Does the Minister agree that Newcastle upon Tyne, with its great industrial heritage, will be the ideal location for a university technical college, which will provide exactly the sort of technical education that can cure youth unemployment and help meet the needs of modern manufacturing and engineering employers?

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[George Eustice (Camborne and Redruth) (Con)]

There is currently complete inequality between the bargaining position of small businesses and that of their banks. Many small businesses find themselves threatened with receivership unless they concede to higher interest rates or new charges. What can the Government do to rebalance the law in favour of enterprise?

[Mr Prisk]

We can do what good Conservatives do, which is to introduce competition. That is why we are ensuring that we get new entrants into the market, so that the four or five that take the view that they have an opportunity to dominate the market are unable to do so. Let us get the new entrants in. I am proud that, as a coalition Government, that is precisely what we are doing.

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

The most successful defence-exporting countries procure and buy from their own home-grown industries. How will the approach that the Ministry of Defence is now taking—buying off the shelf in open competition, without any regard for British firms—help us to export more to the rest of the world?

[Mr Prisk]

We need to ensure that we get the very best value for money on behalf of the taxpayer, but do we need to ensure that procurement contracts reflect good indigenous British businesses? Yes, and that is exactly what is reflected in the White Paper. That is the approach we want to take.

[Gordon Henderson (Sittingbourne and Sheppey) (Con)]

Does the Minister agree that when a company goes into administration, wages owed to its staff should be the top priority? Will he take steps to ensure that redundant Thamesteel workers in my constituency take priority over all other creditors?

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[Mr David Nuttall (Bury North) (Con)]

Does the Minister agree that, regardless of the success of the one-in, one-out policy, the fact that European Union regulations are not included in it means that the overall burden of regulation on businesses is likely to increase?

[Mr Prisk]

We are alert to that danger, which is why we have ensured that we have the agreement of the Commission that, for the first time that I can recall, micro-businesses will be exempt from future European directives. I hope that my hon. Friend will welcome that change.

[Paul Flynn (Newport West) (Lab)]

An inquest is taking place this morning into the tragic death of 22-month-old Joshua Wakeham, who died after becoming entangled in a looped curtain cord. Sadly, such events are not rare; there were three in one month recently, and 360 in America in a 15-year period. Joshua’s mother has fairly asked why no one warned her of the danger. A campaign has been mounted by my hon. Friend the Member for Ochil and South Perthshire (Gordon Banks) and other Members to expose the danger of those cords. Will the Minister agree to meet Joshua’s family, so that we can discuss the dangers and the need for an advertising campaign so that everyone knows about the 250 million such cords in this country?

[Mr Speaker]

Order. It sounds as though that matter is strictly sub judice. The hon. Gentleman has been felicitous in the way he has worded his question, but I know that, in response, the Minister will want to focus on the broad issue, and possibly on a meeting, rather than on the details of a sub judice case.

[Mr Prisk]

With your guidance, Mr Speaker, I would say to the hon. Gentleman that the broader issue is clearly one that we should all be concerned about. In the light of your advice, I would certainly be happy to look at that broad issue on behalf of the Department.

[Andrew Bridgen (North West Leicestershire) (Con)]

I applauded the Secretary of State’s announcement, back in 2010, that the Government would cease the practice of gold-plating European Union regulations, but the vast majority of businesses in this country would like to see him take a more backward-looking stance and review the 13 years of gold-plating that took place under the previous Administration. Can the business community rely on the support of the Secretary of State in that regard?

[Mr Prisk]

My hon. Friend is clearly thinking along exactly the same lines as the Government. We are going to look at precisely that problem, by going back through the stock of regulations that were introduced by Labour during those 13 years.

[Mr Geoffrey Robinson (Coventry North West) (Lab)]

The Government will be aware that this is national science week, and that the Big Bang Fair is taking place at the national exhibition centre in Birmingham. I am sure that the Minister will be pleased to hear, as I was, the good news that Coventry schools have more finalists in those events than any other schools in the country. Will he find time to join me at the national exhibition centre, where we hope Coventry will win some of the prizes in the finals when those decisions are taken?

[Andrew Jones (Harrogate and Knaresborough) (Con)]

Small and medium-sized enterprises in Harrogate and Knaresborough have been telling me about the charges they face for late payments. This is a broader, national issue as well. Will the Minister please update the House on what he is doing to tackle the issue?

[Mr Prisk]

As we have learned, the Labour Government introduced legislation on this, but it is not working. We want to do more. We want to ensure that the Government lead by example, and we are working with business on that. We also need to reflect on the fact that half of all business transactions are entered into without any prepayment agreements. There is therefore a fundamental problem with how business is transacted. I want to look at that, rather than simply reaching for the legislative button at the first opportunity.