(7 years, 5 months ago)
Commons ChamberI congratulate the hon. Member for Coatbridge, Chryston and Bellshill (Hugh Gaffney) on that speech. It was passionate and intense, and he was quite right: it was his moment to enjoy, and so it should be. I also congratulate my hon. Friend the Member for Aberdeen South (Ross Thomson), who was articulate and informed—that city has an excellent representative. It is a great pleasure to have so many Scottish colleagues around me on the Conservative Benches.
We have only a short time, so let me canter through some of the points I wanted to raise. Rightly, one of today’s themes is education. After all, if we look back just seven years, to 2010, one in three children leaving primary schools was unable to read, write or count properly. What that tells me is that, in too many schools under Labour, the standards just were not good enough. Seven years on, the number of children in schools classed as good or excellent has risen by nearly 2 million. That is nearly 2 million young minds now able to flourish, where previously they were struggling under poor standards.
Education is important to the individual, but it is also crucial to the economy. As we leave the European Union, all of us need to rethink what we mean by education, skills and training. That brings me to how we can best strengthen the economy as a whole. There are good measures in this Queen’s Speech on agriculture, fisheries, and spacecraft and other emerging technologies, but we face a broader challenge, which is that productivity in this country is persistently weak. Unless we address that, all our hopes for public services and other matters will simply come to nought.
At the beginning of this debate last Wednesday, I listened to the Leader of the Opposition tell us that the most effective way of increasing pay was strong trade unions and effective collective bargaining. That showed me that his thinking is out of date and blinkered, because the best way to achieve sustained growth and higher incomes is to raise our productivity. If we add 1% of productivity to our economy each year, that will be another £240 billion over the next 10 years—£9,000 per household. That is the way to grow the economy, lift people’s wages and pay for public services.
In the minute or so that I have left, let me touch on one aspect of productivity, namely trade. In recent months we have seen the pound fall and a resurgence in manufacturing, which is welcome. However, as the excellent economist for The Sunday Times, David Smith, has pointed out, we now need to liberalise the trade in services. After all, services are 80% of our economy.
The Bills on trade and customs are good and I welcome the fact that we have a dedicated trade Department focused on that task, but the liberalisation of the global market in services, which is so important to our economy and to jobs, will need a sustained and cross-Government approach if it is to succeed. Clearly, the EU-Brexit process will affect that most immediately, but there is a wider opportunity and I believe that this country should take up the mantle as the champion for open, global markets in services and pursue that through whatever means possible. Get that right and the chance to grow our economy—and, yes, lift people’s living standards—will be all the greater.
(9 years, 11 months ago)
Commons ChamberI am aware of my hon. Friend’s interest in the issue. Harrogate college recently benefited from significant investment in vocational education. He asks how we promote the message about engineering, particularly to women, who are massively under-represented in the sector. I pay tribute to the STEM network of volunteers; there are about 28,000 of them, and 40% are women. We hope that through that process of campaigning, and visits to schools and education institutions, we will gradually turn this unsatisfactory situation round.
The UK automotive industry has had another good year, which is welcomed across the House, but it now needs to recruit even more engineers. What is the Automotive Council UK doing to promote the industry to the next generation of engineers?
The Automotive Council UK is one of the success stories of industrial strategy. There is a great deal of commitment from industry and, indeed, on both sides of the House. The talent retention scheme is working well: if engineers are lost in particular sectors of the economy, they are speedily re-employed elsewhere and the skills base—which, as my hon. Friend implies, is inadequate—is maintained.
(10 years, 9 months ago)
Commons ChamberMy right hon. Friend the Secretary of State has met the company and it was the subject of a debate in the House recently. We will continue to do what we can. However, motorsport is an important and large business sector. I attended the Autosport exhibition in Birmingham recently, as the hon. Gentleman probably did. More than 45,000 people work in the industry across the country and it has a total value of more than £8 billion. We must do everything that we can to ensure that the sector continues to grow.
Exporting in the modern economy requires sustained financial support, yet the law in this country restricts to individual transactions the financial support for exports. I urge the Government to change the law so that we can have the support that is needed for exporters, small, medium and large.
I will certainly look at the point that my hon. Friend raises. I pay tribute to his efforts at the Department over two and a half years to back companies of all sizes in their export drive.
(10 years, 10 months ago)
Commons ChamberThese are issues I discuss with Airbus from time to time. The hon. Gentleman will be aware of action under the World Trade Organisation on two cases, one involving subsidies to Boeing and the other involving alleged subsidies to Airbus. I hope that some of those issues can be resolved in discussions on the transatlantic trade partnership.
In Germany, the Mittelstand leads the way in exports. What steps are the Government taking to target our mid-sized businesses, particularly for emerging markets?
I recognise the enormous amount of work my hon. Friend did when he served in the Department before me. We have a target of assisting some 1,500 mid- size businesses by 2015. My noble Friend Lord Livingston yesterday announced a major enhancement of the programme that will see an expanded regional network of advisers in UK Trade & Investment, with some 28 advisers in place across all nine English regions, specifically targeted to drive up the number of mid-sized businesses that might be deciding to export for the first time or to increase their performance.
(11 years, 1 month ago)
Commons ChamberYes, we acknowledge the importance of women in business. Indeed, one of the initiatives that we are leading involves ensuring that women are properly represented on the boards of our leading companies, thereby creating role models for people starting their own companies. I agree that there is a gender gap and I agree that we need to do a lot more about it.
In the past three years, the UK car industry has gone from strength to strength, but there is always more to do. Will the Secretary of State tell the House what further work is planned, in conjunction with the Automotive Council, particularly with regard to new engine and powertrain technologies?
Let me first pay tribute to my hon. Friend, who had responsibility for this industry in the Department for three years. The automotive strategy, published earlier this summer, included a focus on the new automotive investment organisation to attract more suppliers into the UK, work to tackle the skills base by recruiting nearly 2,000 additional graduates into engineering, and further work to strengthen the supply chain throughout the industry.
(12 years, 6 months ago)
Commons Chamber1. What steps he has taken to reduce the burden of regulation on (a) small and medium-sized and (b) other businesses.
The Government take a comprehensive approach to cutting the burden of red tape. We have capped the cost of new regulation, identified hundreds of existing regulations to be scrapped, and introduced a moratorium on regulation for all micro-businesses.
Small businesses in Wimbledon tell me that the two incentives to growth are access to lending and deregulation. Will my hon. Friend be a little more explicit about what the red tape challenge might bring those businesses in my constituency?
Progress on the red tape challenge is very important. We have now reviewed some 1,500 regulations, and Ministers have agreed to scrap or substantially overhaul 59% of them—some 887 regulations. That will make a real difference to businesses in Wimbledon and, indeed, elsewhere.
Will the Minister take it from me, as chair of the all-party parliamentary group on management, that we must stop feeding this anti-regulation red tape movement and concentrate on good management of small businesses? Forty-three per cent. of managers in the country are rated as poor. Let us do something about management, rather than going on about red tape.
We cannot ignore the fact that 11,000 elements on the statute book impose a burden on many businesses. We need to tackle that, and I am sorry that the last Government failed to do so. Indeed, they produced six new regulations on every working day. But is the hon. Gentleman correct in saying that we need to think about the calibre of management of small businesses? Yes. Bad regulation and red tape need to go, but we need to think about the wider issue as well, I shall certainly take that from the hon. Gentleman, as he asked.
My hon. Friend has already outlined many of the measures that we as a coalition Government are taking to reduce the regulatory burden, but does he agree that a fire-at-will policy might be counter-productive and would not produce the increased productivity and growth that we need so much?
The element of the Beecroft report to which my hon. Friend refers is one of 23 separate measures. We want to ensure that we consider these matters on the basis of good evidence. That is why there is a call for evidence, and once we have had a look at it and weighed the pros against the cons, we will make a decision.
Before we continue these exchanges, let me say that ordinarily when the Secretary of State is absent, the fact of the absence is explained at the start of Question Time. I can hear Members inquiring about it. I know that the Secretary of State is absent because I have received a letter from him, but let me say for the record that it would be desirable to be told at the outset, and, in general terms, that it is of course highly undesirable for the Secretary of State to be absent on these occasions. It must not become a regular practice.
Does the Minister believe that a person who has made a donation of more than £500,000 to the Conservative party and made more than £100 million from equity deals is a fit and proper person to determine Government policy and workers’ rights?
Let me first respond to what you said, Mr Speaker. I apologise if I have not made it clear that the Secretary of State is promoting British business in Germany. I know that that is something that all parties have wanted to do. However, the Secretary of State will note, and we will note, your admonishment.
As for the question from the hon. Member for Wansbeck (Ian Lavery), I think that we need to be very careful when it comes to the kind of allegation that he is trying to make about that particular individual. It is important to have good employers—good people who actually understand the market. That is an important contribution, regardless of whatever the hon. Gentleman’s prejudices may be.
It is clear that this Government do not know what they are doing on growth: one day it is regulation, and the next day it is deregulation. This week, Baroness Wilcox pronounced in the other place that the groceries code adjudicator regulations were a “pro-growth measure” on the same day that the AWOL Secretary of State called the deregulatory Beecroft proposals “bonkers”. Does that not demonstrate that Downing street’s obsession with Beecroft is not intended to promote growth, but is simply another example of this Government’s incoherent and incompetent approach to the economy, putting old Tory ideology before any credible strategy to get people back to work?
I am sorry that we are getting platitudes like that, because this is an important issue. We want to ensure that there is a concerted approach on regulation—capping the costs of new ones, scrapping existing ones, and thereby helping small businesses. That is what we are doing. The Labour party failed to do that in 13 years in office. It is no good Labour Members wishing things; we are acting and they are not.
2. What recent assessment he has made of the effect on business confidence of the economy entering recession.
3. What steps he is taking further to develop the motor and components industry.
Over the past 18 months, the United Kingdom automotive sector has secured more than £4 billion-worth of investment, including the decision by General Motors to build the next generation of Astras in Ellesmere Port. Through the Automotive Council, we are working hard to rebuild the UK’s supply chain and to encourage exports further.
I am astonished that the Secretary of State has not turned up today. Not only is it bad form, but I actually wanted to praise him—although that might have been bad for inter-coalition relations. He has shown a bipartisan continuity of policy in support of the motor industry, which is so important for encouraging long-term investment. As that policy is increasingly successful, as the Minister has indicated, will he now focus strongly on the supply chain, where too many components are still imported? Will he get his officials to work with the industry to get the main-tier suppliers to develop capacity in the UK, so that there is a major benefit to the British economy, British jobs and British workers?
It is rare that a Minister gets the opportunity to receive the praise intended for a Secretary of State, so I will just stand here for a moment or two.
I entirely agree with the principle mentioned; this House has an opportunity to put manufacturing beyond party politics. I want to do that, as does the Secretary of State. We are putting in £125 million specifically to target the supply chain, and I want to make sure that that is available shortly. We are working well with Birmingham city council and others, and I look forward to being able to develop things further.
I grew up in a village just outside Coventry, a city that had half a dozen car manufacturers in the 1970s, at a time when the industry was being decimated by strikes, led by trade unionists such as Red Robbo, over demarcation disputes and excessive wage claims. Does the Minister agree that much of the recent success of the industry is due to a more sensible and flexible approach by the work force?
Absolutely. I again pay tribute to many of the work force in the motor industry. They have demonstrated the willingness to show that British workers are highly productive and that we can compete, and they are also flexible. That is the good news story. There are history lessons, and I hope that the Labour party has now learnt them.
May I put on record my thanks to the newly labelled socialist Secretary of State, and indeed to the Minister, for the work they did in securing the future of Ellesmere Port’s Vauxhall plant? Does the Minister agree that the teamwork that involved, which started with Lord Mandelson’s creation of the automotive alliance, and involved the Unite union, the management and so on, is the way to take this industry forward?
I absolutely agree with that, and I pay tribute to the hon. Gentleman, too, for his work on this issue. I do not want us to be too self-congratulatory, but it is important that we work together. I am proud to see British factories not only able to compete, but to win against stiff international competition.
The success at Ellesmere Port this week, with unions and management combining and “out-Germanning” the Germans, proved that that is the route to success, rather than the more one-sided Beecroft proposals.
4. What recent progress he has made on securing the future of the Post Office network.
The right hon. Gentleman raises an important industry and an important location. The local enterprise partnership is doing very well in that area and we are encouraging offshore energy through the work of UK Green Investments. If there were additional points in his comprehensive question, I know that the relevant Ministers will be happy to deal with them.
T7. The Government’s introduction of the national careers service is welcome. The Business Secretary has made it clear that there must be face-to-face careers advice for targeted groups of adults. Will the Department try to win the argument across Government, including in the Department for Education, that face-to-face careers guidance is vital for everybody, and that mentoring for all young people in an important complementary project?
As someone who benefited from a similar scheme in the 1990s, may I ask the Minister to update the House on the progress of the new enterprise allowance scheme? Will he ensure that it is yet another flagship programme, like the new apprenticeship schemes?
I am happy to assure my hon. Friend that the scheme is a great way of ensuring that we provide microfinance and experienced business advice. That is what the allowance is specifically designed to do. We have examined past models that have worked, and this one will help thousands of unemployed people become self-employed people.
I am sure the House will join me in celebrating the fact that SMS Electronics in Beeston in Broxtowe has been a lucky recipient of a Queen’s award for enterprise. Many small businesses tell me and others that they need less regulation and oppressive red tape if they are to grow. Will a Minister please confirm something that I was told today: that under the previous Government, there were six new regulations every working day?
There were six regulations every working day under the previous Government. I am proud to say that instead of having 1,500 Labour regulations every year, this Government have reversed the pattern. There were just 89 last year. That is real progress, and good for businesses in my hon. Friend’s constituency and across the country.
I am sure all hon. Members welcome the publication of the Enterprise and Regulatory Reform Bill, which sets out some great initiatives, including the green investment bank and the fight against red tape. Will the Minister work with local government to ensure that it applies regulations judiciously as opposed to ferociously?
Sixty redundancies have been announced today at the open-cast mine at Kirkconnel. It is in the constituency of the Under-Secretary of State for Scotland, but it will affect my constituency in east Ayrshire. What are the Government doing to support the coal industry?
(12 years, 10 months ago)
Commons Chamber5. What recent progress he has made on the red tape challenge.
To date, of the more than 1,200 regulations considered under the red tape challenge, we have agreed to scrap or substantially overhaul well over 50%. That is in addition to our plans to cap the cost of new regulations through the one-in, one-out system.
I am very grateful to the Minister for that answer. Will he clarify how much the one-in, one-out rule saved businesses in 2011?
Businesses across my constituency and elsewhere, and organisations such as the Federation of Small Businesses, are making it clear that red tape and bureaucracy are the biggest blocks to growth and employment. After six new pieces of red tape or regulation a day under the Labour Government, will the Minister outline how many regulations have already been cut and what his ambitions are for the rest of this Parliament?
We inherited a scenario in which there was the equivalent of six new regulations every working day. I am therefore pleased to say that in the last year we have identified 600 regulations under the red tape challenge which we will either scrap or substantially overhaul, and we intend to ensure that we increase that number in the years to come.
Reducing the number of regulations is extremely important, but so are the interpretation of regulations, particularly those from Europe, and the risk of gold-plating regulations, such as the agency worker directive. What action is the Minister taking to ensure that in interpreting regulations, we use the lightest touch possible to comply with the law?
We have changed the guiding principles from those that we inherited. That means, first, that we are not going to tie British business down by implementing early, as we have in the past. We will implement on the last legal day, under transposition rules. Secondly, my hon. Friend is absolutely right about interpretation. We will ensure that we copy regulations out and do not embellish them, as was sadly all too often the case under the last, Labour Government.
Higher education applications in this country have collapsed, although not across the board—I think applications to Oxford, Cambridge and Durham have increased. However, in the universities that ordinary people go to, they have collapsed.
Nobody disputes that unnecessary regulation and red tape have to be dealt with, but Government Members are deluding themselves if they think that is the central issue, when unemployment is at record levels and the economy has ground to a halt. Every time I go to meet a successful manufacturing company that has orders waiting and wants to take on new staff, I am told that the central problem is the lack of finance. Instead of trying to pursue this issue, the Minister should be concentrating on getting money from the banks to manufacturers so we can get the economy moving and they can take on more staff.
As part of the red tape challenge, will the Minister look again at the regulations that deny employees the right to proper compensation or redundancy payments if their workplace has fewer than 20 people, as is the case for ex-employees of Woolworths? That is regulation that successive Governments have failed to address.
I am aware that what the hon. Gentleman refers to is a live case, so I must be careful in the sense that it is before the tribunals. However, I am sure that the representations he has made are clear. Again, we need to strike the right balance so that employers and employees have a fairer deal. Frankly, I do not think that was the case in the 13 years of the last, Labour Government.
Last year, 171 people were killed at work and 115,000 were seriously injured. Is the Minister really saying that now is the time to water down health and safety legislation?
The changes that Professor Löfstedt has identified are not about reducing safety at work; they are about cutting unnecessary red tape. That is clear; indeed, it is why one Opposition Member has been part of that panel and has supported its proposals, which this Government will implement.
2. For what reasons he does not plan to implement all the recommendations of the High Pay Commission.
7. What steps his Department is taking to support micro-businesses.
The Government have already acted to make it easier to start and grow micro-businesses. Action has included cutting corporation tax rates, extending relief from business rates, and introducing a moratorium from regulation for all micro-businesses.
The Minister is conducting a review of disruptive business models as part of the red tape challenge. Has he considered introducing a new limited liability scheme for sole traders, similar to the limited liability partnership? I believe that such a scheme operates in France, and it would be fantastic to see one like it operating here.
On Friday I attended the opening of a micro-business in my constituency, Little Rembrandt’s Café in Ferryhill. That business opened despite the Government and despite the banks, which refused to lend. The owner had to put her own financial security on the line by remortgaging her house. That situation obviously cannot be right, because it is stifling growth in the economy.
I understand the hon. Lady’s point. Two thirds of small businesses are able to secure the money that they want, but that is no consolation to those who are not. Perhaps I could write to the hon. Lady about the community development finance institutions, which we have been funding and which are well placed to help the kind of micro-business to which she has referred.
When will the call for evidence on making it easier for micro-businesses to part company with their employees begin, and what will be the terms of reference?
The Minister was right to describe the hon. Member for Newton Abbot (Anne Marie Morris) as a great champion of micro-businesses. Last week she called for the Government to introduce a VAT cut to 5% on construction, which is part of our five-point plan.
The truth is that the Government are failing Britain’s small businesses. They have failed to live up to expectations on regulation, they have failed to persuade the banks to lend to small businesses, and they have failed to get growth into our economy. Why does the Minister keep pretending that small businesses think his policies are working when it is so clear that they are not?
8. What steps he plans to take to address executive pay and reduce rewards for failure.
10. What recent progress he has made on determining the location of the green investment bank.
In December, the Department invited applications to bid for hosting the green investment bank. The closing date was Monday 30 January, and a total of 32 bids were received. My right hon. Friend the Secretary of State will make a decision shortly.
Newcastle has submitted an outstanding bid to host the green investment bank, and as a region we have the right mix of natural environment, green expertise, infrastructure and professional services, all supported to grow under the last Government in order to make it a success. However, bearing in mind that we are the region with the highest unemployment levels, to what extent will the Government’s commitment to supporting private sector growth, particularly in areas suffering the greatest loss of public sector employment, be a factor in the decision-making process?
11. What recent assessment he has made of prospects for economic growth and their effect on business confidence.
Will the Minister support me in establishing a pilot scheme on Wirral bringing female business role models into schools and thereby working towards the coalition’s intention of practical, real-life role models?
I would be delighted to support that. It is an excellent idea and builds on the work that we are doing to recruit 5,000 new business mentors—real business women, helping those who want to start their own enterprise.
What is the Secretary of State doing to stimulate growth in manufacturing industries, particularly the steel industry, which is so important to UK plc and my constituents?
Although I understand that the Minister does not want to be unfair to other cities, does he agree that Brighton would make a fantastic choice of location for the green investment bank?
British Aerospace has a 17% global share, and as such is No. 1 in Europe, but its future depends on not only exports but on investment in research and development. Given that many other Governments in Europe and around the world give more support to research and development than we do, what more can the Government do to help in that vital area?
(13 years ago)
Commons Chamber4. What steps his Department is taking to help small and medium-sized businesses to access export markets.
UK Trade & Investment has set out a new export strategy of some £45 million, which will double the number of small companies helped each year. The strategy includes five financial products, bespoke services for middle-sized firms and a collaborative approach to accessing new export markets.
I welcome that assurance from the Minister, but an exporter in my constituency has for years been obtaining certificates of origin from our local chamber of commerce, using a formal declaration from his supplier. Recently he applied for a new certificate, but was told that one could not be issued without a declaration from the manufacturer of the goods. That is causing my constituent a big problem, because his supplier is loth to provide details about his manufacturer for fear that my constituent might obtain his goods direct. What can my hon. Friend do to make it easier for exporters to export—and when changes are made to the rules, can exporters at least be given adequate notice?
I am concerned about the instance that my hon. Friend mentions. The rules on certification of origin have not changed, but they are subject to local management and interpretation. It sounds as if that might be the problem. I am keen to help all exporters, so perhaps my hon. Friend will submit further details to me and I will look personally into the matter.
The Government have cut by 25% the funding for small and medium-sized enterprises to attend vital overseas trade shows to help them win new business. How will that help exports?
As I said at the beginning, the new export strategy enables us to double the number of companies that we reach and support. In addition, five new finance products have been put on to the market. We have commitments of £242 million for those products, so there is a positive layer of action, and we can make real progress in the years to come.
At a previous Question Time, the Business Secretary was right to say that, historically, SMEs have not been as involved in exporting as larger companies. With that in mind, earlier this year he launched the export enterprise finance guarantee scheme, a programme run out of his Department, and we were told that that would help lots of SMEs to access export finance. Will the Secretary of State tell us how many companies have been helped by the scheme since it was announced with a great fanfare 10 months ago?
Sadly, the hon. Gentleman will have to make do with the Minister of State rather than the Secretary of State. We have been able to deliver some £242 million across the five products, and we have also been able to ensure that with the pilot, the export enterprise finance guarantee scheme, in which there have been a number of changes, we have been able to deliver some £2 million. It is important to bear in mind the fact that the export enterprise finance guarantee scheme is a pilot; the other four are actually full products.
The answer to my question is that just four companies have benefited from that export scheme. That is another example of the failure of the Minister’s Department to improve access to finance for small businesses. Of course access to finance in general helps SMEs to grow and expand into different export markets, and we were told that Project Merlin would ease credit conditions for small businesses—but net lending to businesses by banks has contracted in nine of the past 12 months under this Government. Merlin failed, so they are now giving credit easing a try, but the effectiveness of credit easing is dependent on whether the banks choose to participate. What guarantees can the Minister give us that they will participate in the scheme and increase net lending to businesses as a result?
In the first three quarters, the numbers on net lending stand at £66 million. [Interruption.] What I am trying to say to the hon. Gentleman is that we are committed, through Merlin, to ensuring that lending this year is greater than last year. He needs to be careful in this area, because, as he knows, such schemes are subject to demand. [Interruption.] He asked about credit easing, and I will come to that point. I say to the hon. Gentleman that the £20 billion that the Chancellor has put forward is substantially important and will bring about an important increase. What the Opposition need to remember is that we are actually delivering an increase in lending this year over last year. They did not deliver that. We are, and that is the difference.
5. What steps his Department is taking to support the commercialisation of new discoveries in life sciences.
T9. Will the Minister update me on what efforts are being taken to attract inward investment into enterprise zones such as that in Warton in my constituency?
We have made good progress on enterprise zones. I know that locally there is a team working together with UK Trade & Investment on specific live commercial projects, and I am hopeful of real progress in the next few months.
I am very much looking forward to welcoming the Minister of State, Department for Business, Innovation and Skills, my hon. Friend the Member for Hertford and Stortford (Mr Prisk), who is responsible for business and enterprise, to the festival for manufacturing in my constituency to celebrate what we have achieved in the constituency, and to promote more investment and employment. But one area that we need to focus on is the supply chain, so what are the Government planning to do to help with that?
I am pleased to say that not only will I be able to attend the Stroud manufacturing festival, which is an excellent example of the initiatives taken by those on this side of the House, but the Government have put in place a £125 million supply chain initiative. It builds on the work we have done in the automotive sector, it is a great opportunity and I hope it will be one of those areas where the Labour party will set aside the posturing and work with us positively.
I have been raising the issue of small businesses’ failure to be paid by large contractors. The Minister of State, Department for Business, Innovation and Skills, the hon. Member for Hertford and Stortford (Mr Prisk) was good enough to write to me, but he said that more than 50% of the problem occurred because there continued to be a problem with effective customer management on the part of the supplier. In other words, the large companies were to be managed by the small company. Is it not time that we actually did what the Electrical Contractors Association has called for and make it compulsory for 30 days’ payment to be in every single contract for a small supplier?
In fact, the Labour party tried to do that at the very beginning—in 1998, I believe—and failed. What we are doing is using our procurement powers to make sure that government sets the standard. I think that that is the best way, but I am always happy to look at unreasonable behaviour by large corporations and I would be happy to look at any further details that the hon. Gentleman can provide.
The county of Avon was abolished in April 1996. The Somerset village of Shipham was never part of Avon and has always been in Somerset, so it is a constant irritation to my constituents that post, including that from all Government agencies and any organisation using the Royal Mail’s database, is addressed to Shipham in Avon. When complaints are made to the Royal Mail’s headquarters, they elicit the reply, “We like to give users an historical perspective.” That is complete tosh. The Royal Mail does not update its database and will not correct inaccuracies in the address details. Will the Minister wade into this ancient, decades-old dispute on behalf of the long-suffering villagers and get this bizarre—
(13 years, 1 month ago)
Commons Chamber7. What steps his Department is taking in response to recent job losses announced by BAE Systems.
The Government’s first priority is to support the individuals whose jobs may be at risk. To that end, the Jobcentre Plus rapid response service is providing support, training and careers advice. The Government are also working with the Lancashire and the Humber local enterprise partnerships on two potential new enterprise zones to support local economies.
What role does my hon. Friend think that group training associations can play in redeploying and supporting those who have lost their jobs? In Lancashire we have Training 2000, the biggest GTA in the country, which is already working closely with Rolls-Royce and other businesses that are currently recruiting.
What is the reason for the reversal of the decision on the Lancashire enterprise zones in September? In August a bid had been turned down, and job losses had been agreed by the Ministry of Defence in July. That sequence of events suggests that the MOD was not talking to BIS, and that BIS made a reckless decision in August which was overturned by the Treasury. Can the Minister explain?
8. What steps his Department is taking to support the construction industry.
The Government are acting positively to strengthen the industry by reform the planning system, modernising public sector procurement, and producing the first national infrastructure plan, which will unlock up to £200 billion of both public and private investment.
Can we return to planet Earth? Since the election 65,000 jobs have gone in construction, no one is training apprentices, and public sector contracts have dried up. Do we not need a bit more action?
It is nice to have the hon. Gentleman back on planet Earth. It appears that he has been away from it for a long time. We have heard about the work that the Government are doing on apprenticeships, we have seen the investment in infrastructure, and there is a positive story to tell. Why cannot the Labour party understand that?
Very much on planet Earth, there are many sites that are not being developed but could be. Will the Minister talk to his colleagues in the Department for Communities and Local Government and the Treasury to ensure that financial incentives are offered to the owners of sterile land so that it can return to use and be developed, thus providing jobs in the construction industry?
Britain’s construction industry needs a lion at the wheel, but instead we have a tortoise that is sitting still while building sites and people in our construction industry are made redundant. However, there is an alternative. The shadow Chancellor’s five-point plan will produce projects that will enable us to get the industry moving. For instance, a VAT cut to 5% on home improvements and repairs and maintenance is a targeted approach that is supported by the Federation of Small Businesses. Will the Government take serious action to get the construction industry moving?
9. What steps he plans to take to protect stem cell research in the UK following the decision of the European Court of Justice to prohibit the patenting of inventions based on human stem cells; and if he will make a statement.
10. What steps he is taking to encourage entrepreneurship.
The Government are committed to making the United Kingdom the best place in Europe to start, finance and grow a business. Steps being taken include boosting tax relief, getting the banks to increase lending to small firms and scrapping regulations from this Department alone that would have cost small and medium-sized enterprises more than £315 million every year.
I thank the Minister for his answer. It is clear that the Government are taking an active lead on growing and supporting our entrepreneurs. Will he therefore join me in supporting the Federation of Small Businesses in its fantastic real-life entrepreneur campaign, as that support will demonstrate yet again just how committed the coalition Government are to the entrepreneurial spirit in UK plc?
Absolutely. That is an excellent campaign by the FSB, and it shows why we are focused on matters that concern those real-life entrepreneurs: cutting their costs; tackling red tape; and of course improving access to finance. There is a lot more to do, but they know that we are on their side.
Another excellent campaign from the FSB and also the Federation of Master Builders is the “Cut the VAT” campaign, which supports a cut in VAT on home improvements to 5%. Such a move would also be good for entrepreneurs. Will the Minister support that campaign?
I congratulate the Minister on all the help he is giving entrepreneurs. Could he find time in his busy schedule to visit the many entrepreneurs in Brighton and Hove?
11. What recent discussions he has had with the Chancellor of the Exchequer on support for seaside town economies.
19. What steps he plans to take to reduce costs for small businesses.
In these rosy days, in addition to extending small business rate relief and reversing Labour’s planned rise in payroll taxes, we also intend to reduce the burden of financial accounting rules. That will save businesses up to £600 million, a third of which will benefit small and medium-sized enterprises.
At a time when many small businesses are struggling to thrive in the economic climate, will my hon. Friend join the campaign of Harlow chamber of commerce and the Essex Federation of Small Businesses strongly to oppose the proposals of the Health and Safety Executive to charge £750-plus to inspect small businesses?
Many small businesses in the construction sector would benefit from a cut in VAT to 5%, as has been raised. We heard the Minister’s response; he thinks we are wrong in calling for that. If he thinks we are wrong, does he think the Federation of Master Builders, the Builders Merchants Federation, British Precast and the Modern Masonry Alliance are wrong as well?
T1. If he will make a statement on his departmental responsibilities.
T8. Does the Minister of State really think that sending a letter to Members whose constituents are affected by the potential redundancies at BAE Systems stating that those people could move to other parts of the country to get jobs shows any understanding of the regional economy and the need for skilled manufacturing jobs, particularly in the Humber area?
The letter sets out, first, help for those individuals on the ground at those sites. Secondly, it refers to making sure that by having the new talent retention service we do not lose those skills; and, thirdly, it refers to making sure that we put enterprise zones in place. I have to say that the response I have had from local people has been far more positive, sadly, than that of Labour Members.
Many of those who strongly support the Government’s policy to establish a grocery adjudicator to curb the bully-boy tactics of supermarkets will be concerned to ensure that it has the teeth to do the job. Will my hon. Friend the Minister take this opportunity to reassure those supporters of the Government’s policy that a supplier will not be required to take the risk of making a complaint in order to prompt an inquiry by the adjudicator?
(13 years, 6 months ago)
Commons Chamber10. What progress has been made on the second round of allocations from the regional growth fund; and if he will make a statement.
The second round of the regional growth fund is worth just under £1 billion and bids must be received before 1 July 2011. Applicants are able to attend a series of road shows, which offer specific advice and support to prospective bidders. These road shows have been well subscribed with some 1,100 people already having applied.
I thank the Minister for that answer. The black country did not receive a single penny from the first round of the regional growth fund, and smaller regional development agency grants have been withdrawn. Can he reassure me that the needs of local businesses in the black country will be taken into account in the second round?
I cannot pre-empt the panel’s decisions, because they must be based on merit, but I am sure that some excellent bids will come from the black country area. I encourage the hon. Lady and applicants from the area to speak to the RGF team to enable them to hone their applications and ensure that they have a strong chance in the second round.
Despite backing from the local enterprise company, a bid submitted by CP Holdings, the Sir Trevor Osborne property group, to the first round of the regional growth fund, supported by Derbyshire county council and High Peak borough council, was rejected—in my view incorrectly. What support and help are available now as the group bids in the second round to restore The Crescent, which is a grade I listed building in Buxton, and turn it into what would be Britain’s first and only genuine spa hotel, creating employment and wider economic benefits across the area?
My private office might be less than happy if I suggest I should visit, so I probably should not, but I can say that it sounds like an important bid. It also sounds as if improvements were needed for the second round, and I encourage the applicants—perhaps accompanied by my hon. Friend—to talk to the RGF team so that they can hone their bid and the spa can be successful in the future.
Has not the regional growth fund story so far been one of too far, too fast, with the RDAs scrapped and funding shredded by two thirds? Now it is too little, too late, as local enterprise companies have been denied RDA assets or proper bid resources, in whole areas of England small businesses have been excluded from a 10-times oversubscribed first round, and no extra money has been put in the budget—we would have given £200 million more from a bankers’ bonus tax. The rejection letter that nine out of 10 RGF applicants received from the Department told them that they could
“request limited feedback on your unsuccessful bid”.
What new limited feedback will the Minister’s officials have for those missing out this time?
I have already spelled out to the House the opportunity for prospective bidders to make applications to renew their bids, and they are doing that now. I am sorry that the hon. Gentleman thinks that that does not have any merit. It is fascinating to be criticised by the Opposition for going too fast. The first round was successful, and we levered in some £2.5 billion of private sector investment—a 5:1 ratio on public investment. If the Labour party is not happy with that, it needs to re-examine its priorities.
12. What steps he is taking to support British manufacturers.
The coalition Government passionately believe that modern manufacturing is vital if we are to grow and rebalance the economy. That is why, for example, we are investing more than £50 million in the manufacturing advisory service; substantially expanding the number of apprenticeships, as the Secretary of State pointed out; and actively backing manufacturing research and development through our £200 million programme of technology innovation centres.
Next week marks the topping-out ceremony for the first building at the Bristol and Bath science park, which is a £300 million high-value manufacturing centre in my constituency that will generate more than 5,000 new jobs. Will the Minister congratulate the science park on its current progress? What assurances can the Government give the park that we are absolutely committed to high-value manufacturing?
I am delighted to be able to do that. In fact, I was able to do so earlier this week, when the Department launched a new showcasing of composite technology. The national composites centre based at the science park in my hon. Friend’s constituency is an excellent example of UK technological excellence. We have invested £16 million in that centre, and it has our full support and encouragement.
There are clearly changing economic times right across the United Kingdom. What help is there for the British manufacturing industry to take advantage of new green opportunities? Harland and Wolff in Belfast has invested £17 billion in marine wind turbines. Can the Minister assure us that what has happened at Harland and Wolff can happen across the United Kingdom?
Absolutely. The point is that we are not only seeking to invest through technology innovation centres but ensuring that our investment in, as it were, the software—the staff, the apprenticeships and the skills—is brought together. That combination of work on the technological side and in skills is crucial. Harland and Wolff is a good example.
13. What steps he plans to take to support those affected by job losses at the Tata plant in Scunthorpe.
T5. We all welcome the fantastic news from Nissan and BMW, but we want to see automotive investment in the west midlands. Will the Minister assure the House that he and his officials are doing all that they can to attract automotive investment into the west midlands?
I am delighted to be able to give my hon. Friend that assurance. He is an assiduous campaigner for the automotive industry in the sector. I am meeting him and other Members in a week or so to discuss the issue. It is important to remember that we have seen improvements in the investment for Jaguar Land Rover, that discussions are going further forward and that investment in 1,500 skilled engineering jobs has taken place. What matters in that context is remembering that under the last Labour Government, 1.7 million people came out of the manufacturing work force—a change that we need to bear in mind when we hear criticism from Opposition Members.
T6. Given the public outrage at the “quick buck” strategy at Southern Cross, the Financial Times says that the future of 31,000 elderly people is in jeopardy. Will the Secretary of State investigate the conduct of the directors and consider whether regulation should be extended to ensure the financial stability of companies that care for our parents and our relatives?
T7. Is the Minister aware that many thousands of jobs in Scotland depend on defence contracts? What steps is he taking to ensure that the present constitutional uncertainty in Scotland does not undermine the ability of Scottish firms to bid for Ministry of Defence work?
Every day by which the creation of a groceries code adjudicator is delayed is a further day on which farmers, growers and food producers in this country and in the developing world go to the wall. What reassurance can Ministers give me and, indeed, the House that they will make every effort to ensure that a proposal which has cross-party support is implemented as quickly as possible?
T8. May I return the Minister to the issue of regional development agency asset sales, about which there is considerable concern in my constituency and throughout the north-west? Can he answer the question put to him earlier by my hon. Friend the Member for Birmingham, Erdington (Jack Dromey)? If assets can be gifted to Boris Johnson and London, why can they not be gifted to the rest of the country?
Let me clarify the position. The London Development Agency had already been merged into the Greater London Authority, so the process position was very different from that involving the RDAs. We have ensured that we are able to represent that. I understand the concern, but we are working with local enterprise partnerships, local authorities and local businesses to ensure that they are involved in the regenerations. I have discussed the issue with a number of the hon. Gentleman’s hon. Friends who have constituency interests in it, and I continue to listen to and work closely with them.
May I ask the Secretary of State to look into the Edexcel science modules taken by young pupils? Some of those modules are seriously flawed, which may put people off studying science and technology for life.
Growth, which was mentioned earlier, does not seem to be happening in the north-east of England. Workers at the H A Interiors factory in my constituency have not been paid for nine weeks— although I understand that they were paid their April wages yesterday; I will have to check that. Can the Minister help the company in any way? At least under Labour the workers got their pay.
I have already corresponded with the hon. Gentleman on the matter. He is right: we should be concerned first and foremost with the welfare of the workers and their families. I strongly emphasise the need to ensure that ACAS continues to be involved in the process. I hope that my letter to the hon. Gentleman and the news that some of the first payments have apparently been made will prove encouraging, but let us keep the dialogue going.
I draw Members’ attention to my registered interest in small businesses.
The enterprise investment scheme, which was introduced by the last Government and has been greatly enhanced by the present Government, has increased investment in our early-stage businesses, largely because it provided tax relief for equity investors. Will Ministers consider discussing with Treasury officials whether similar tax incentives can be provided for debt investment in venture capital and early-stage businesses?
We have heard from the Secretary of State’s own mouth that Project Merlin has fallen at the first hurdle. We also now know that one of the promoters of the business growth fund, Santander, has withdrawn from the fund. What impact will that have on Project Merlin, on the business growth fund, and on growth and investment in the United Kingdom?
One in 10 people in the north-west of England works in manufacturing, whereas just 3% in London work in manufacturing. The sharp fall in the purchasing managers index last month showed that all may not be well with UK manufacturing. Will the Secretary of State or the Minister therefore confirm that UK Trade & Investment will publish annually the regional impact of its work, so that we can be sure that Government policy works for all economies in Britain?
We will go further than that: we are making sure that UKTI is focused like a laser on small businesses in the manufacturing sector. That is why we are changing the budget and the structure, and making sure that in the regions outside the south-east there is a strong network—a strong set of roots—so that we can support manufacturing more effectively than the Labour party did in 12 years in office.
I recently met business leaders from the Coventry and Warwickshire chamber of commerce. They are extremely heartened by the current review of regulation and red tape, but they are keen to know when there will be tangible changes. Will the Minister therefore tell the businesses in my constituency when they can expect to see tangible progress from this welcome review?
I will be delighted to do so. Not only have we got the moratorium exempting small businesses from future regulation, but we have cut by 70% down to 46 the 157 proposals, many of them legacies from the past Government, and only 11 of them will cost business anything at all. We are ending the gold-plating of e-regulations, and we are changing the approach so that we sunset regulation in the future. Each of those steps will make a difference, and I will make sure that we report back to the House each and every year.
Back in February, the House debated the problems caused by high-cost credit and agreed to consider a cap on the cost of credit. Following that, 15 MPs from across the House wrote to the Minister responsible asking for a meeting to discuss how we might take that decision forward. Five months later, during the recess, he responded, stating that he was too busy to meet us. As the number of people borrowing from these companies rises in all our constituencies every month, will the Secretary of State show some respect for the House and respond to this legitimate issue by agreeing to meet us?