Employment Law (Beecroft Report)
Debate between Mark Prisk and Pat McFaddenUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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Mr Prisk
I entirely agree with my hon. Friend, who is right to point out that we need to restore the sad decline in our competitiveness that we saw before the last election. We need to restore not just the Government finances, but the strength of the economy. Ensuring that flexible workplaces and modern work practices are in place is part of that.
Mr Pat McFadden (Wolverhampton South East) (Lab)
There is a flaw in the Minister’s logic. He cannot on the one hand claim credit for the creation of hundreds of thousands of jobs in the private sector, including the welcome announcement at Ellesmere Port last week, and then say there is a huge problem for employers wanting to hire people. Flexibility in labour markets is a good thing, but does he accept that what is really stopping companies hiring is the lack of confidence in economic prospects in this country and the eurozone? In that context, are not the proposals fiddling while Athens burns?
Mr Prisk
It was worth the right hon. Gentleman getting to that metaphor at the end. He is right that confidence is one of the critical issues in the corporate sector. The Government need to understand that, which is why we have ensured that we look at all such issues, whether workplaces or employment tribunals. Government Departments are working hard on those things—they are all important—but he is right that we need to ensure we get the appropriate balance. He says there is surely no problem if we have all those extra jobs, but we must compete in a tough world. I am proud that there are 600,000 extra private sector jobs, but we need more.
Oral Answers to Questions
Debate between Mark Prisk and Pat McFadden(13 years, 5 months ago)
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Mr Pat McFadden (Wolverhampton South East) (Lab)
We are about to enter a new financial year, so will the Minister take the opportunity to reconsider the Government’s denial of the loan to Sheffield Forgemasters that the Labour Government planned to boost our position in civil nuclear trade? More broadly, will he confirm that the Government are still committed to a new generation of nuclear power stations, given the awful unfolding tragedy in Japan and the comments made by the Deputy Prime Minister to journalists?
Mr Prisk
Our commitment is clear and the right hon. Gentleman knows exactly where the Government stand. We have debated the question of affordability and Sheffield Forgemasters before, but I would say to the right hon. Gentleman and to Labour Members that we have the regional growth fund and we have worked with a range of businesses, including the business to which he refers, and we are happy to ensure that they have the chance to bid for that money as that part of the fund develops.
Economic Regeneration (West Midlands)
Debate between Mark Prisk and Pat McFadden(13 years, 6 months ago)
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Mr McFadden
I thank the Minister for giving way. I wanted to intervene before he moved on from apprenticeships, but I did not want to cut short his answer to the hon. Member for Wolverhampton South West (Paul Uppal).
When I was in the Minister’s shoes and had some responsibility for these issues, we put more funds into what we called higher-level or technician-level apprenticeships, precisely in order to address the skills gaps that have been referred to. Will he acknowledge that a significant proportion of the funds that the Government are putting into apprenticeships is coming from the Train to Gain scheme? Therefore—this is a factual question; I do not want to enter into a debate about the whys and wherefores of Train to Gain—will he acknowledge that, given the cost of one apprenticeship, for which we trained three or four people under the Train to Gain scheme, if we fast-forward two years or so, the Government will actually be funding fewer learners at work than they are today?
Mr Prisk
The difficulty is that we are not comparing apples with apples. What is gained under Train to Gain is different from what is secured by apprenticeships. That is why we have sought to increase the number of apprenticeships over that period. I do not think that one can say that it is just about head count; it is also about quality, not least because engineering employers say to me that they need the right people with the right range of skills.
Mr McFadden
We could have a debate about the benefits, but my question concerns the number of people at work being helped by Government support. The Minister must know the answer. Will he acknowledge that in two years, there will be fewer learners at work funded by Government as a result of the decision to switch Government money from the Train to Gain budget, as he outlined?
Mr Prisk
The point that I am trying to make is that we are talking to businesses and asking them what they need. I am not the Minister with responsibility for skills, so before he tells me that I have said something incorrect, I will check with him and write back to hon. Members here. I am wary of making a statement that might prove incorrect. However, the right hon. Gentleman has made a sensible point. I will double-check before giving an incorrect answer.
University technology colleges are important because students will be able to start at age 14. One of the first UTCs will open at Bloxwich in the black country this September. It is an important element.
Oral Answers to Questions
Debate between Mark Prisk and Pat McFadden(13 years, 9 months ago)
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Mr Pat McFadden (Wolverhampton South East) (Lab)
As the Minister said, 24 bids were approved, but bids for many areas of the country, including for the black country, were not approved. Local enterprise partnerships will not have the same resources as the RDAs, which are currently spending about £1.5 billion a year in England. How are local enterprise partnerships supposed to help to rebalance the economy if they do not have the resources? Surely setting up these organisations and asking business to lead them is letting those business people down if the Government do not play their part and give them the resources they need to do the job.
Mr Prisk
We are in negotiations with the black country, and I hope that there will be a positive outcome, but the point of the partnerships is to remove the local barriers to growth and ensure that planning in local areas is addressed, that red tape is tackled and that local transport projects are dealt with jointly by business and civic leaders. That is what LEPs can do. It is not all about subsidies; it is about real action on the ground.
Sheffield Forgemasters
Debate between Mark Prisk and Pat McFadden
Mr Prisk
Of course I saw the letter, because it was emailed to me. As I have made clear, it was apparent from the letter that this was a business man who had knowledge of Sheffield and the industry and was making various representations. My view was that that should go to the officials. It went to the officials and the answer that came back was “We have noted your letter, Mr Cook.” That was it. There has been no further—[Interruption.] The reply is included in the replies that I have given to the local Members. It is clear—[Interruption.] No, I am sorry, but that is wrong.
The other question that has been raised by several hon. Members is the issue of the dilution of equity. I set out the situation clearly in my remarks earlier. The Government’s decision had nothing to do with the shareholder structure. In my view, Dr Honeyman and his team deserve credit for putting this together—
Mr Pat McFadden (Wolverhampton South East) (Lab)
If the Minister says tonight that this decision had nothing to do with the directors’ shareholdings, why did the Prime Minister and Deputy Prime Minister allege that that was the case as justification for this decision?
Oral Answers to Questions
Debate between Mark Prisk and Pat McFadden(14 years, 1 month ago)
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Mr Prisk
Indeed we are, and our plans include the changes to corporation tax that mean that manufacturing industry is better off by £250 million, the reduction of the burden of red tape and the removal of many regulators, and the £150 million that has been set aside to fund up to 50,000 more apprentices. The Government’s stronger long-term approach contrasts with the pick ‘n’ mix tactics and the tinkering and meddling that we had from the last Labour Government.
I remind the House that manufacturing investment declined in 10 of the last 11 years. That is the record of the Labour Government, and Labour Members should be ashamed of it.
Mr Pat McFadden (Wolverhampton South East) (Lab)
I want to return to the issue of capital allowances. The Minister and the Secretary of State have said that they want to rebalance the economy, but the Budget proceeded with plans to cut £3.1 billion from capital allowances and the investment allowance by 2013. The IFS has said that
“cutting capital allowances is not a good way to raise money because they are an efficient way to promote investment”.
In addition, the Engineering Employers Federation has said that the cuts
“make the investment needed to rebalance the economy more expensive”.
Labour’s Budget in March doubled the investment allowance for manufacturers, but this Government have cut that by 75%. We are all saying that we want to rebalance the economy, so how can the Minister justify these cuts of £3 billion a year in our support for manufacturers?
Mr Prisk
As I told the hon. Member for Glasgow North East (Mr Bain) earlier, the net balance is that manufacturing will be £250 million better off. That is the point. The right hon. Gentleman refers to the annual investment allowances but, even after these reforms take effect, the vast majority of businesses—over 90%—will still have all their investment costs covered by the Association of International Accountants. The key point is that the record of the Labour party is one in which manufacturing investment declined in 10 years of 11. We are changing that environment by taking the long-term approach. Is the hon. Gentleman proud of his record of investment down and jobs cut? Is he proud of that?