Oral Answers to Questions

Matt Hancock Excerpts

Thursday 23rd January 2014 Commons Chamber

[Sheryll Murray (South East Cornwall) (Con)]

2. What steps he is taking to ensure that apprenticeships respond to employers’ needs.

[The Minister for Skills and Enterprise (Matthew Hancock)]

Our apprenticeship reforms are responding to the needs of employers by putting them in the driving seat. Trailblazers, led by employers and professional bodies, is leading the way in developing new standards in a wide range of sectors.

[Sheryll Murray]

Will my hon. Friend join me in congratulating the 300 in 100 campaign in Cornwall on its aim to get 300 new apprenticeships in 100 days? I participated in the campaign in St Mellion a few weeks ago along with many employers in my constituency.

[Matthew Hancock]

I would love to congratulate my hon. Friend, who has teamed up with other MPs across Cornwall, including my hon. Friends the Members for Camborne and Redruth (George Eustice), for Truro and Falmouth (Sarah Newton) and for St Ives (Andrew George) and many others. Many Members of this House have been part of the 100 in 100 campaigns to get 100 apprentices in 100 days, and Cornwall is taking it just that bit further.

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

The number of apprentices in the 16-to-18 age group is dropping at the moment, with serious implication for our long-term skills base. Will the Minister look again at the proposals of the Business, Innovation and Skills Committee to use public procurement contracts to ensure a certain level of recruitment for that age group in the way in which the previous Government did and local authorities are doing?

[Matthew Hancock]

Of course, Crossrail, which is the biggest public construction project in Europe, has in it exactly what the hon. Gentleman describes. He will have seen last week that we announced 2,000 new apprentices as part of High Speed 2. I entirely agree about the need to drive up the number of apprentices. We introduced a rule that every apprenticeship had to be a minimum of a year, and the number of apprenticeships for those aged between 16 to 19 lasting a year or more has gone up sharply. We must be careful to consider the reason for the numbers. Apprenticeships of under a year, in many cases without a job attached, are not really apprenticeships at all.

[Robert Halfon (Harlow) (Con)]

Does my hon. Friend agree that one of the best ways of increasing the skills of apprenticeships is the creation of pre-apprenticeship schools, otherwise known as university technical colleges? Will he look at expanding the Government’s programme of 24 UTCs, one of which will be in Harlow, so that there is one in every town across the country?

[Matthew Hancock]

I absolutely support my hon. Friend in his enthusiasm for UTCs, not only the one in Harlow, for which, I know, he is a great campaigner, but those across the country.

[Bill Esterson (Sefton Central) (Lab)]

But why have Ministers failed to match their rhetoric with action? Something like what my hon. Friend the Member for Denton and Reddish (Andrew Gwynne) suggests in his Apprenticeships and Skills (Public Procurement Contracts) Bill would create thousands of new quality apprenticeship opportunities by requiring all major suppliers on large public projects to offer apprenticeships.

[Matthew Hancock]

As I said, we do that on some of the largest procurements. If we are talking about action, the fact that a record number of people are in apprenticeships is action that we should support, and the fact that 1.5 million people across the country have started apprenticeships since 2010 is also action we should all be proud of.

[Stuart Andrew (Pudsey) (Con)]

3. What recent assessment he has made of the level of UK exports.

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[Mark Pawsey (Rugby) (Con)]

9. What steps he is taking to support small businesses.

[The Minister for Skills and Enterprise (Matthew Hancock)]

We are passionate supporters of small businesses. More than 12,000 start-up loans have been approved; over the past year, UK Trade & Investment has helped more than 30,000 businesses to export; and, in April this year, a new employer allowance will cut £2,000 from the national insurance bill of every company in the country.

[Mark Pawsey]

Located at the crossroads of the UK motorway network, Rugby is a great place to do business. Our excellent small businesses can benefit from the initiatives that the Minister has outlined. What would he say to small businesses that want to grow as the economy expands, but are unable to find larger premises because many of the older buildings have been demolished and speculative development of the type they need has not taken place?

[Matthew Hancock]

Ensuring that the commercial property market works effectively is an important part of reforming the banking system and getting it back on its feet after the crisis. That market is one of the main routes through which we can open up more development and ensure that there is more capacity, so that when small businesses want to expand, they have the physical space in which to do so.

[Mr Robin Walker (Worcester) (Con)]

Small businesses on Worcester’s high street are looking forward to the employment allowance and to the generous rebate on business rates that was announced in the autumn statement. Will the Minister join me in urging Worcester’s Labour-led city council not to put up parking charges by 10%, which would be a kick in the teeth for the high street?

[Matthew Hancock]

Ensuring that any agency of Government or any council can live within its means is a crucial part of good governance in these difficult times. The approach that the Government have taken is to do that through making savings, difficult as it is. That is clearly working and I recommend it to the Labour-led council in Worcester.

[Laura Sandys (South Thanet) (Con)]

10. What assessment he has made of innovation in the UK manufacturing sector.

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[Lyn Brown (West Ham) (Lab)]

13. What recent estimate he has made of the number of female entrepreneurs.

[The Minister for Skills and Enterprise (Matthew Hancock)]

There are now a record 4.9 million businesses in the UK, and we estimate that 880,000 of them are led by women, which is 18% of the total. That demonstrates the opportunity for this country, should we manage to get that proportion up.

[Lyn Brown]

Evidence shows that companies with more women in positions of power outperform their rivals. Does the Minister agree that we cannot afford not to make progress in securing more women in positions of power? If so, what will he do about it if companies do not hear him asking them nicely?

[Matthew Hancock]

I, too, have seen the research showing that companies with women at the top tend to perform better than those that have only men. That balance in the boardroom is vital, and I am a strong supporter of the agenda the hon. Lady promotes. More than 4,000 start-up loans have gone to women, and we are bringing in a new partner directed precisely at people who are returning to work after having children. For the bigger picture, ensuring that we have more women on boards is a campaign we are working on across the Government.

[Julian Smith (Skipton and Ripon) (Con)]

The start-up loans scheme has been the most monumental success, but many female entrepreneurs ask me for more focused sectoral mentoring as part of that scheme. May I encourage the Minister to promote that as he develops the scheme further?

[Matthew Hancock]

A scheme exactly like the one my hon. Friend calls for is coming his way very soon.

[Julie Hilling (Bolton West) (Lab)]

16. What recent estimate he has made of the number of apprentices being paid at a rate below the apprenticeship minimum wage.

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[The Minister for Skills and Enterprise (Matthew Hancock)]

Yes, I am a great supporter of Lowestoft college, which it was a pleasure to visit last year with my hon. Friend. It has a centre for the promotion of engineering and training in the offshore industry, which is so important to the town, and I will do everything I can to support it.

[Ian Lavery (Wansbeck) (Lab)]

T4. Blacklisting is a scourge of any civilised society. Will the Secretary of State guarantee to the House that the confidential documents currently being withheld by the Government relating to the Shrewsbury 24 dispute in 1973 do not include extensive details relating to individuals who have been blacklisted and the companies operating this very sharp practice?

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

T3. Suppliers to top-tier Government contractors still complain that payments made under the prompt payment code are not forthcoming. What more can the Government do to improve the situation and release billions of pounds back into the economy to support our long-term economic plan?

[Matthew Hancock]

The problems of people failing either to make prompt payments or to honour payment terms—two related, but slightly different points—need to be addressed. They are largely problems that negatively affect small companies, and we are currently consulting on how radical we need to be to get the balance right and address them.

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

T7. Will the Secretary of State confirm that business investment has flatlined over the last year and that this is one of the major causes of Britain’s worsening productivity problem? What are he and the Government going to do about it?

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[Stephen Lloyd (Eastbourne) (LD)]

I wholly support the Government’s move to increase the education leaving age to 18, but while the Department for Education budget is protected, the further education budget, which comes under the Department for Business, Innovation and Skills and which will now be educating far more people up to 18 than schools, is not. This will put a huge strain on FE budgets. Will the responsible BIS Minister talk to the Secretary of State for Education to ask for assistance?

[Matthew Hancock]

I frequently talk to the Secretary of State for Education. The change to funding for 18 year olds was not one made lightly; dealing with the deficit requires difficult decisions. We published the impact assessment on the consequences, which show that disadvantaged students are not affected disproportionately. If we did not have a budget deficit of £100 billion, life would undoubtedly be easier.

[Jack Dromey (Birmingham, Erdington) (Lab)]

Queen Victoria was on the throne when the Dunlop Motorsport factory first produced wooden wheels and then rubber tyres in Erdington. Now, 125 years of history and 300 highly skilled jobs are at risk. Jaguar Land Rover needs the land for its welcome expansion. Birmingham city council has identified an alternative site about three miles away. But the global board, based in Ohio, has yet to commit to Birmingham and Britain—with only nine months left before the lease runs out. In thanking the Secretary of State for the welcome steps he has already taken, may I ask whether he will convene a top-level meeting with Goodyear Dunlop, involving both him and me, so that we can get a decision made that a great piece of our manufacturing history remains part of a great manufacturing future in this country?