UK Anti-corruption Plan

Debate between Matt Hancock and Julian Smith

Thursday 18th December 2014 Commons Chamber

[Matthew Hancock]

There is progress in two areas: the first is fiscal and on tax, and the second is on transparency. The overseas territories are each in a slightly different position, so the answer is complicated, but I would be very happy to report in future on how that is progressing.

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

DFID and other Departments are doing world-class work in this area. Does the Minister have a view on how the UK anti-corruption plan stacks up against those of our international partners?

[Matthew Hancock]

I would say that this plan is one of the most advanced anti-corruption plans, but I also pay tribute to the work of DFID. Corruption undermines prosperity and development as much as, if not more than, almost any other failing, so focusing DFID resources on measures to tackle corruption is a very powerful way to help development. We must make sure that we use the DFID budget in a way that promotes long-term prosperity, and tackling corruption is a very powerful way of doing so.

Tata Steel

Debate between Matt Hancock and Julian Smith

Thursday 16th October 2014 Commons Chamber

[Matthew Hancock]

I pay tribute to the work that the hon. Gentleman has done alongside his parliamentary neighbours. On getting UK content into UK projects, we must ensure, within EU competition rules, that the market is competitive; we cannot restrict procurement to UK projects. Within that, however, we can do everything to support UK suppliers into projects. For instance, the fact that 95% of the steel for the UK’s rail network is expected to come from Tata is important. We work on supply chain management to strengthen supply chains. I am sure the hon. Gentleman will agree that we cannot close the borders for procurement, not least because we must ensure value for money for the taxpayer.

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

May I direct the Minister to an article in The Economist that mentions Gary Klesch, head of the Klesch company, which is thinking of taking over this Tata unit? It states that:

“Europe needs people like Mr Klesch…he brings discipline and fresh ideas.”

Will the Minister reject the doom-mongering of the Labour party, and support Gary Klesch in making the most of this business?

[Matthew Hancock]

I and the Government will do everything that we reasonably can to secure the future of steel production. Being open to international investment means that there are other opportunities; Tata itself is an international investor. None the less, while I acknowledge my hon. Friend’s argument, we must be vigilant and careful to ensure that should any changes be made, we are ready to support the local community.

Oral Answers to Questions

Debate between Matt Hancock and Julian Smith

Thursday 26th June 2014 Commons Chamber

[Matthew Hancock]

I recognise the problem that used to exist. The introduction of traineeships has tackled that. It is now possible for someone to go on a traineeship while still receiving their jobseeker’s allowance, because we have tackled the 16-hour rule for traineeships. If the hon. Lady writes to me about the individual case, I will make sure it is taken into account.

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

At the Mighty Middle conference held by GE Capital and the Reform think-tank this week, mid-sized companies from across Britain were exceptionally positive about the Government’s long-term economic plan. What more can we do to celebrate and assist those mid-sized companies?

Oral Answers to Questions

Debate between Matt Hancock and Julian Smith

Thursday 10th April 2014 Commons Chamber

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

Last year, we supported more than £4 billion of export finance, which is more than in any other year for a decade. This week, we announced additional funding to enable UKTI to support 3,000 more medium-sized businesses.

[Julian Smith]

Following the question from my hon. Friend the Member for Shipley (Philip Davies), will the Minister agree that the best way to exploit emerging markets is often through EU free trade agreements? In the light of that, will he support the all-party parliamentary group on European Union-United States trade and investment to ensure that small and micro businesses are front and centre in the proposed free trade agreement with America?

[Matthew Hancock]

I am a strong supporter of the transatlantic trade and investment partnership. The trade deal between the EU and Canada is a big step forward and provides a basis on which we can build TTIP. The involvement of small businesses in TTIP will provide them with extremely valuable support in creating jobs.

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

The start-up loan scheme is one of the most inspirational business policies that this Government are pursuing. Can the small business Minister confirm that we are right behind it, we are putting more money into it and we will do everything we can to grow the scheme as much as possible?

[Matthew Hancock]

Yes, I will. Only this week, we took through the statutory instrument to expand the start-up loans scheme and ensure that the funding is available. Fifteen thousand people have now had the benefit of using the scheme, but it is not just about the money; it is about the mentoring and the wider support that come with a start-up loan, and I commend everyone to have a look at the scheme and commend it to their constituents.

Oral Answers to Questions

Debate between Matt Hancock and Julian Smith

Thursday 23rd January 2014 Commons Chamber

[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.

Start-up Loans

Debate between Matt Hancock and Julian Smith

Wednesday 20th November 2013 Commons Chamber

[Matthew Hancock]

Yes. Those are extremely important points. The growth accelerator programme offers support for small and growing businesses and is itself expanding rapidly. The start-up loan programme is not only about access to finance for those starting businesses, but about mentoring. The number of businesses sponsored by each mentor is small, so that mentors have the opportunity to spend time and put effort into ensuring that such ideas get the best possible chance.

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

Many of the people who have so far benefited from the programme are truly inspirational. The Minister may be interested to know about a perfume called Pink Addiction—I have tried it—which was created by Nabila Ismail. She was so positive about the scheme that the only thing she asked for was specialist mentoring wherever possible, a point which has been mentioned.

[Matthew Hancock]

I pay tribute to Pink Addiction. My hon. Friend has put a huge amount of effort into supporting start-ups and small businesses. I am sure that being mentored by him would be one of the best ways in which someone could grow their business.

Apprenticeships

Debate between Matt Hancock and Julian Smith

Thursday 14th March 2013 Commons Chamber

[Matthew Hancock]

That is an important point. The statutory duty on schools is critical in ensuring that that happens, but there is more to it than that. From this summer, for the first time, the destination of people leaving school to go not only to university but into an apprenticeship has been published. With the statutory duty and the Ofsted inspection on the back of them, those destination data will help to push things in the right direction.

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

The number of apprenticeships in Skipton and Ripon, and in Yorkshire more generally, has doubled. Will my hon. Friend confirm that under this Government, work will be the focus of apprenticeships, in contrast to the classroom-based programme apprenticeships that we saw under the previous Administration?

[Matthew Hancock]

Indeed; we have already shut down the programme apprenticeship route, as it offered an apprenticeship without a job. One of the central arguments in the Richard report, with which I entirely agree, is that apprenticeships are about getting the skills required to do a skilled job. Of course that is absolutely critical.

Gender Balance on Corporate Boards

Debate between Matt Hancock and Julian Smith

Monday 7th January 2013 Commons Chamber

[Matthew Hancock]

It is true that progress has been slower in executive appointments, but it is also true that where legislation has been passed to increase the number of women on boards—for example, in Norway—the increase has come almost entirely in non-executive roles, which shows that legislation is not a panacea. The Davies review recommended a business-led strategy to bring about the necessary change, and we have been working with business to implement the strategy.

I pay tribute to the 30% Club and Helena Morrissey. They are both pragmatic and passionate about reaching their target of 30% representation on boards. Their approach is one of persuasion and moral suasion to change the culture of business from business, and so far it has been highly effective. The figures clearly show that we are moving in the right direction.

Since Lord Davies’s work was started, we have had a near 50% increase in the number of female non-executives in the FTSE 350. Now, 17.3% of FTSE 100 board directors are female and, importantly, 38% of newly appointed FTSE 100 directors and 36% of newly appointed FTSE 250 directors since March last year have been women. Research by Cranfield School of Management shows that should the current pace of change be maintained, we are on a trajectory to reach 37% of women on FTSE 100 boards by 2020, just shy of the 40% proposed by the commission. We think that that business-led voluntary approach is the right one for the UK and that it is making progress. Central to it is a change in culture at the heart of business, and that is the only way in which progress will be sustainable and long term.

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

Has my hon. Friend come to any conclusion about why the Labour party failed so dismally to achieve better results on this issue in its 13 years in government?

[Matthew Hancock]

I have not specifically done any research into that, but it is certainly true that since 2010 there has been a big increase in the numbers. However, I do not think that this is a particularly partisan issue because there is cross-government and cross-party work on trying to make it happen. Crucially, we are following a voluntary business-led approach, because the research shows that diverse boards are better boards.

That brings me to the broader point that was made by the right hon. Member for Leicester East (Keith Vaz). The best boards have a diversity of human behaviour and experience and there is no bigger determinant of an individual’s behaviour than their sex. On average, companies with the most balanced boards out-perform companies with no female board members by an average of 56%, and companies with three or more women on their boards have achieved a return on equity about 45% higher than the average company. Research suggests that just one female director on a board cuts a company’s risk of insolvency by around 20%.

Enterprise and Regulatory Reform Bill

Debate between Matt Hancock and Julian Smith

Tuesday 16th October 2012 Commons Chamber

[Matthew Hancock]

My hon. Friend anticipates my speech, because this provision will reduce the burdens on business. It is difficult to know precisely by how much because businesses react not only to the letter of the law, but to the perception of the law. There are perceived health and safety requirements that go beyond technical breaches of the law, and we want to remove them. One can go to the new Government website and ask whether something is required by health and safety legislation. Many of the cases that are brought to the Government’s attention are not required by health and safety legislation. The problem is the perception of health and safety legislation. By including a reasonableness defence, we will help to remove the implied, expected and perceived burdens on business.

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

When my hon. Friend became a Minister, what assessment did he make of the previous Labour Government’s attempts to lift the burdens on business and the perception of those burdens over the 13 years that they were in office?

[Matthew Hancock]

I have found no evidence of that. If my hon. Friend can point any out to me, I would be extremely grateful.

Horse Racing (Funding)

Debate between Matt Hancock and Julian Smith

Tuesday 22nd November 2011 Westminster Hall

[Matthew Hancock (West Suffolk) (Con)]

It is a pleasure to speak under your chairmanship, Mr Williams, and to see my hon. Friend the Under-Secretary of State for Culture, Olympics, Media and Sport, or the Minister for horse racing, as he is known in Newmarket, in his place.

I applied for this debate because the future funding of horse racing remains in a parlous condition. Although the Government have shown willingness to deal with the matter—no one doubts the Minister’s personal commitment—more action is needed.

Horse racing has, for centuries, been part of our national heritage. It has been interwoven in our national life from the time King Charles II took Nell Gwynne to Newmarket for a month in the spring and a month in the autumn and races were used to keep up the quality of bloodstock during times of peace. The current exhibition of early actresses at the National Portrait Gallery shows the beauty and other attractions of Nell Gwynne, so I understand the desire of King Charles II to spend two months on the plains of Suffolk to enjoy all the riches on offer.

The sport was about not just bloodstock but high entertainment, and so it is today. Racing is the second most watched sport after football in this country. It contributes more than £3 billion to our economy, and employs more than 100,000 people, 5,000 of them in and around racing in Newmarket. None the less, racing’s finances are in jeopardy. In 2010, the number of foals born in the UK fell by a sixth. The number of horses in training has been falling consistently over the past three years. The root of the issue is a breakdown in funding. The most important part of the funding for the industry is the levy—the money that betting pays to racing in return for the races on which people bet—and as we know, it has fallen dramatically.

The changes in the way that people bet and the move to more and more online gambling are at the heart of the matter. Racing has moved into a modern world and outstripped the outdated and outmoded outfit that has determined its funding—the levy system. Prize money has almost halved since 2009, dropping from around £65 million to £34 million this year. Prizes are in freefall compared with our nearest competitors. At Newmarket, a win in a middle-ranking race will net around £6,500; at Longchamp the equivalent is more than £21,000. Across the country, prize money has fallen by about a third over a couple of years.

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

Does my hon. Friend agree that for smaller race courses, such as Ripon in my constituency, the issue of prize money and its value is a major prohibitor to attracting good races, and for smaller race courses that is one of their biggest challenges?

[Matthew Hancock]

If the problem is serious for Newmarket, it is even more serious for many smaller race courses, especially if the prize money hardly pays for the diesel to get the horse to the race. If a horse comes third or fourth, the owner’s costs are not even covered, and if an owner’s costs are not covered even when their horse wins, one of the great incentives for owning a horse is removed. Of course people own race horses for all sorts of reasons, not least the glamour of the winning enclosure and the thrill of their horse being the first to cross the line. None the less, it is important for an owner at least to have the dream that they may make money from their horse. People who own race horses are normally realistic about the fact that they may not get back their outlay, but they should at least have the hope that they can. The fall in prize money is central to a fall in the attractiveness of owning and breeding race horses.

The fall in prize money reflects the fall in the value of the levy itself—from £111 million in 2003 to £60 million in 2010. Will the Minister assure us that we can make the changes that are necessary to put the funding on a sustainable footing; that in the sale of the Tote there are commitments to racing that will be fulfilled; and that the money that used to come directly from the Tote and will now come through the deal agreed during its sale will still happen? The Tote, although smaller in cash terms, is another important part of the funding of racing.

Some progress has been made. It looks as though last year’s yield on the levy will come in at around £65 million, well below the target of £71.4 million, which in itself was too low. This year’s target is marginally higher, and it has been underpinned by a guarantee from three of the big bookmakers. The Levy Board will spend an extra £5 million in 2012, £4 million of which will go in prize money. Welcome as such a move is, it is merely damage limitation. A long-term solution to the levy needs to be put in place, not least because of the adversarial nature of the levy. Instead of the racing industry and bookmakers working together to provide a product that is great for the punter and good for racing, they have an adversarial relationship, which needs to be addressed.

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[Matthew Hancock]

Absolutely. On that point and more broadly, I declare a very wide interest: I am heavily supported in Newmarket, including by people from the breeding fraternity, or sorority—there are an awful lot of extremely impressive men and women involved in breeding—but this is also about racing welfare, which is supported by the levy. There is a much broader point, and I am grateful to have the opportunity to put that on the record. This is about not only the flow from prize money into the activities of horsemen, but the direct payments from the levy system to breeding, welfare, veterinary research and other important associated aspects of the sport, and indeed ensuring that the regulation of racing is adequately funded to guarantee high-quality and well-regulated racing. I do not want to dwell on that point, but I am sure that those of us with an interest in debates on the matter have noticed it over the past couple of months.

[Julian Smith]

If the Minister got his skates on, how quickly could the change happen? We have talked about Finance Bills, but what would his optimal timetable be for this tax change to happen?

[Matthew Hancock]

The proposed change is relatively simple. It would require primary legislation, but take only a couple of clauses in a Bill. The legislation would be fairly simple because it would change the designation of where a bet was and everything else would flow from that. That is the foundation of unlocking all the other changes for which there is cross-party support.

I urge the Minister to act. It is rare for the Government to have in front of them a proposal that is popular, important, timely, simple, money-raising and necessary. Since the proposal has all those attributes—and indeed, as we have discovered today, cross-party support—I ask him to act with the greatest possible speed. He cares deeply about horse racing, the people of Newmarket care about horse racing, and the country cares about the future of horse racing, so let us make this change and put the finances of horse racing on the sustainable footing that they deserve.